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A cost-of-service study reported that Front Royal’s electric utility was operating about $1.1 million short, with finance staff estimating the current gap at approximately $1 million. Council received an overview of the utility’s financial history, two years of revenue and expense data, and a financial forecast; no rate change was approved in the provided minutes.
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The presentation indicated that the Town’s electric utility is not covering its costs. The study is intended to help evaluate electric rates and the utility’s financial outlook, but the minutes do not document a final rate decision or a specific change to customer bills.
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