CHAMBERSBURG, Pa. — The borough council reviewed annual reports and utility budgets this week, with no rate increases recommended for electric or gas utilities, while increases for water and sewer services were proposed for 2027.
As power supply costs are falling and the electric utility’s generation is performing well, the planned 5% increase scheduled for this fall will be postponed until 2027. The stores and warehouse department and the gas utility are financially strong, with no rate increases recommended for next year.
A 3-cent increase in water rates was proposed for 2027, from 30 cents to 33 cents per unit, to help cover higher operating costs and expenses related to the new public works campus and the transition to advanced metering infrastructure, a project that will allow remote readings of utility meters.
For wastewater, a 7.7% rate increase was recommended for 2027, raising the rate from approximately 39 cents to 42 cents per unit. The increase would help cover debt service tied to the public works campus, along with higher operating and maintenance costs.
Despite the increases, Chambersburg water and sewer services will continue to offer some of the lowest costs in the area.
Highlights on electricity
Director of Electric Jeff Heverley presented the annual report. He compared Chambersburg with another Pennsylvania electric supplier, noting that average monthly rates have risen 27.9% for West Penn Power customers since 2024, compared with 2.1% for Borough of Chambersburg customers.
Heverley also addressed uncertainties around AI data centers, which have had a huge impact on the market. AI data centers require significant power, placing heavy demand on electric systems and driving up energy costs.
For Chambersburg, these centers will affect wholesale electricity prices across the grid while making the borough’s generation resources more valuable. This makes future electric rates less certain because pricing is harder to predict.
Warehouse, gas presentation
Director of Natural Gas Utility John Leary presented the report. He said that if the advanced metering infrastructure project moves forward in the next few years, borough customers will likely face a future gas rate increase.
The warehouse updated its storage systems and adopted new in-house software to automate inventory tracking. Council had approved $250,000 for the project, but the custom system kept the final cost under $100,000.
Regarding gas, Leary expects increased sales volume due to customer growth and increased sales to power plants. However, the closure of Knouse Foods by the end of the year will affect sales, as the company accounts for about 8% of gas sales.
Part of the reason the borough has seen an increase in its customer base is due to a gas loan program, which offers people an interest-free loan of up to $10,000 to convert to natural gas.
Chambersburg residents currently pay the lowest gas rates in Pennsylvania, with Leary pointing out that borough customers are saving $1,000 to $2,000 annually compared with customers of private utilities.
The department is replacing aging piping throughout the borough, a project expected to be completed by 2030. Work is currently underway on North and South 2nd streets and Garfield Street. The department expects to finish that area this winter, with repaving planned for spring or summer next year.
Beginning in 2027, crews will work near City Hall on West and East Queen streets, as well as Ramsey Avenue, Lortz Avenue, Stanley Court and College Avenue.
Water, wastewater highlights
Director of Water and Wastewater Lance Anderson presented the final report of the evening. He reminded the public that Franklin County has been under a drought warning since February 2026, with groundwater levels considered to be at an emergency level.
In May, the Chambersburg Borough Council and the Bear Valley Water Authority decided to end fluoridation, the controlled addition of fluoride to the water supply to help prevent tooth decay. Customers and medical professionals will be notified 30 days before the end date, expected in late October or early November.
Bear Valley Water Authority, the borough’s largest water customer, is investing in its own system, which is expected to reduce its water purchases and lower the Chambersburg water department’s revenue over the next few years.
Anderson encouraged borough water customers to sign up for Hyper-Reach, the mass notification system the water department uses for major water emergencies, including boil-water advisories.
Customers can register through a link on the borough website using a phone number or email address and their home address. Fewer than 10% of borough customers are currently enrolled.
Residents were informed that periodic closures of Hollywell Avenue near Mill Road will begin in October as construction starts on the Meadows pump station project.
Anderson also discussed recent odor complaints from the wastewater treatment facility. The first complaints came while the department was performing tank maintenance, but changes to sludge processing have since contributed to stronger odors.
The department is working to improve the sludge process and reduce odors, though nearby residents may continue to notice the smells for the next six months.
