City proposes rate increase

Published 11:53 am Saturday, June 2, 2012


FRANKLIN—The City Council will hold a public hearing at 7 p.m. Monday, June 11, at City Hall to hear from citizens about a proposed 1-percent electric rate increase.

If approved, a resident who pays $108 a month can expect to pay $109 a month starting in July.

The increase is being considered to replenish the city’s electric fund. The city saw the fund drop by $1 million after Dominion Virginia Power increased its rates to the city by 14 percent, and the city did not pass the increase onto city customers.

The city buys wholesale power from Dominion though the Virginia Municipal Electric Association.

City Manager Randy Martin said Friday that an increase is not a certainty.

“Realistically, it’s needed,” Martin said.

The proposed budget and the rate increase would replenish required reserve levels within four years.

“It’s not a quick fix, but will fix it,” he said.

At the same time, the proposed 2012-2013 budget calls for a decrease of $1.17 per month in garbage bills to help offset the electric rate increase.