Heather Bell
RADFORD – The August utility bills of Radford electric customers will have an increase due to the rising cost of wholesale power.
The City of Radford produces three-to-five percent of its electric power needs through the city-owned Little River Dam and purchases the remaining 95-97 percent from American Electric Power. The city has had a long-term wholesale purchase agreement with AEP for nearly 20 years. That contract ends in May 2026. The city put out a request for proposals in 2023 for a new wholesale contract in anticipation of the current contract ending.
“This bill reflects a small increase in the Wholesale Power Cost Adjustment (WPCA) factor,” the city announced. “The new rate of $0.06167, will recover expected wholesale power cost increases from Appalachian Power Company. These costs are passed onto all customers.” “The average residential customer using 1,000 kWhs will see a $ 5.59 per month increase to their monthly bill,” the announcement continues. “The new average monthly bill will be approximately $ 173.02. This increase is not set by the city. It is the result of higher wholesale power rates from Appalachian Power Company, and the city acts only as a pass-through for these costs.”
Radford Mayor David Horton commented on the increase in a post on social media.
“No one wanted to increase our power cost to RED customers,” he said. “We have no choice but to pass this along. Please let the State Corporation Commission know if you disagree with the wholesale provider increasing costs to customers.”
“Our council and staff are looking at every possible way to help stabilize the Radford Electric Department and the cost to customers,” he continued. “Energy demand is increasing from 6-8% in many places compared with a historical average of 1-2%. That is a problem that must be addressed at the federal level as more power is always an issue.”
