Town Council Considers Renewable Resources in Anticipation of Upcoming Meeting

On Monday, September 11, at 7 p.m. in the Town Hall at 102 E. Main Street, the Front Royal Town Council met for a work session in which they heard a presentation concerning the town’s power portfolio.

Front Royal Town Council meets for the Monday evening work session—photos by Brenden McHugh.

Mike Migliore, Vice President of Power Supply Planning at American Municipal Power (AMP), of which the Town is a regional municipal member, guided the council through a PowerPoint presentation, explaining their options and desired outcomes for 2024 through 2026, specifically defining what vendors are currently providing the town with power, what vendors could potentially provide the town with power, and how much the town is currently paying and can expect to pay in the future for those power supplies. This work session comes in advance of a Town Council meeting at Front Royal’s Government Center on September 25, in which the council will make several key decisions impacting the town’s energy options.

Beginning his presentation, Migliore compared the power portfolio to retirement planning, in which diversification is all important. Immediately diving into the details of the PowerPoint, he explained that Front Royal uses 182 million kilowatt hours per year. Seventeen percent of the energy the town currently uses is renewable resources, and Migliore believes that trend will continue into next year. “Is that pretty standard?” Mayor Lori Cockrell asked about the percentage for renewables, and Migliore replied yes, “most of the AMP members are in that category.” AMP has 134 members, mainly in Virginia, Ohio, and Pennsylvania.

Vice President of Power Supply Planning at American Municipal Power, Mike Migliore, makes the presentation to Front Royal Town Council

In the case that AMP has not purchased blocks of energy for Front Royal in advance, the net market or open market is the pie slice of the portfolio that is vulnerable to whatever blocks of energy happen to be available at the moment, which Migliore says is likely to be more expensive, especially with rising demands for energy in the town, winter demanding more heat and summer cooler air. Entering 2025 and 2026, that category becomes wider, thus illustrating the need for AMP to facilitate cost-effective purchases. As blocks of energy drop off soon, that need for cost-effective purchases becomes more urgent.

This two to three-year plan is unusual for the council, who are more accustomed to dealing with ten-year plans. In part because of the war in Ukraine and the market disruption that caused in 2022, the council is being proactive in terms of purchasing blocks ahead of 2025, when those purchases will go into effect.

In addition to solar and wind, hydro plants on the Ohio River, as well as in the Smokey Mountains, are an option. Although they are affected by drought, they have long-term durability, and Migliore anticipates that the debt can be paid by 2049. “These are our most expensive power supplies,” said Migliore. He also said, “Your grandkids will be happy that they have debt-free green power.” Despite the challenges that America faced post-coronavirus and the onset of conflict in Ukraine, particularly surviving last winter with unstable gas prices, fossil fuels like coal and natural gas currently represent roughly fifty percent of Front Royal’s portfolio. At eight cents per kilowatt hour, AMP projects a cost of 15 million dollars in annual power rates for the town of Front Royal.

After Migliore finished his presentation, the council addressed its consent agenda items and then moved to a closed meeting to discuss personnel issues and EDA litigation.

Click here to watch the Front Royal Town Council Work Session.