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Radford Electric moves to join PJM market; council weighs solar-customer billing changes and grandfathering
Summary
Council authorized Radford Electric Department to set up an account with PJM Interconnection to participate in the wholesale market beginning June 2026 and designated city staff as authorized representatives; council also directed staff to study and recommend a fair, evidence‑based monthly fee and potential grandfathering policy for existing residential solar customers after an audit identified inconsistencies.
Radford City Council authorized staff to set up a market‑participation account with PJM Interconnection and submit required forms so the Radford Electric Department can procure wholesale power in PJM after the city's current wholesale contract expires in June 2026. Council designated City Manager Todd Meredith and utility staff as initial officers/authorized representatives and authorized Meredith to sign the application forms.
Council members said the account-setup forms are procedural steps to enable later market participation and stressed they could adjust designated representatives as needed. Staff noted further steps — market participation applications and operational onboarding — will follow, and the city will not transact in the market until the market-participation process is complete.
Separately, council addressed a separate but related utility issue: a recent audit flagged inconsistencies in how the electric department billed a subset of residential solar customers. Council members and electric staff discussed options to protect customers who invested under prior policies while ensuring future billing reflects grid‑cost responsibilities. Staff recommended a structured study estimating a 10-year grid-cost requirement and returning with a proposed monthly fee that could be applied to new customers while grandfathering existing users under a phased arrangement.
Council asked the electric department to produce a recommendation (cost estimates, rationale and a proposed monthly charge) rather than select an arbitrary fee; council said any grandfathering policy should be defensible and reflected in a formal ordinance or administrative rule. The city manager and utility director will bring a model and recommendation to council for action.
