While the City of Radford’s Electric Department will not be raising electricity rates in the upcoming fiscal year, residential customers can still expect to see a slight increase in their bills due to a number of factors beyond the City’s control.

The following is a breakdown of all the components of a monthly electric bill for a residential customer in Radford:

Monthly customer charge  $7.02
Energy Charge 
  First 900 kWH $.07527 per kWH
  All kWH over 900 $.06078 per kWH
Fuel Adjustment Charge Fluctuates
Wholesale Power Cost Adjustment Charge Fluctuates

The first three charges listed above (monthly customer charge and costs for the first 900kWH and all kWH over 900 of energy) are set by City Council. These rates will not go up when Radford’s new fiscal year starts July 1, 2008.

Radford has no control over the two additional charges for fuel adjustments and the wholesale power cost. These rates are determined by Appalachian Power’s costs, which they pass along when they sell electricity to the City. In the past they have always fluctuated a bit from month to month, but as the cost of mining, transporting, and generating energy from coal continues to rise, the cost of electric service in Radford – and everywhere else – will inevitably go up as well.

The Electric Department is projecting that due to these rising costs, the average electric bill for a residential customer in Radford will increase by 5% beginning in July.

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