Danville Utilities proposes new rate increases to address rising service costs

The Danville Utility Commission convened on December 10, 2024, to discuss critical updates regarding utility rates and the financial implications for residents. The meeting focused on the adjustments to water, wastewater, gas, and electric rates, reflecting the ongoing challenges faced by the utility in managing costs while aiming to minimize the impact on customers.

The commission outlined proposed rate increases: 5% for water, 7% for wastewater, 6% for gas, and 3% for electric services. Despite the percentage increases, the actual dollar impact varies, with electric service seeing the largest increase in total cost—an additional $4 per month for the average customer. Water and wastewater services will see increases of $1.50 and $2, respectively, while gas will rise by approximately $3.

In total, the average customer utilizing all four services can expect an increase of about $10.59 per month. The commission emphasized that these adjustments are necessary due to rising operational costs that affect the utility's ability to maintain service levels.

Comparative analysis of utility rates revealed that Danville's rates are generally competitive. The average residential electric bill in Danville stands at approximately $141.50, which is lower than some neighboring providers like Bristol and Dominion but higher than others such as APCO. For gas services, Danville ranks as the second lowest among the compared utilities, with only Orangeburg, South Carolina, offering lower rates. Similarly, Danville's water rates are also competitive, being the second lowest in a regional comparison.

The commission's discussions highlighted the need for ongoing adjustments to ensure that utility services remain sustainable and affordable for the community. The meeting concluded with a commitment to continue monitoring costs and exploring ways to enhance service delivery while keeping rates manageable for residents.