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Radford Council approves master power agreements to move off 20-year APCO contract
Summary
The council approved a resolution authorizing master power purchase and sale agreements for 06/01/2026–12/31/2028, allowing Radford to pursue market-based products, multiple suppliers and optional renewable integration; staff will seek live pricing and return with confirmations and further analysis.
Radford City Council approved a resolution authorizing Master Edison Electric Institute (EEI) power purchase and sale agreements for the term June 1, 2026, through Dec. 31, 2028, a move intended to transition the city away from its long-standing wholesale arrangement with Appalachian Power Company when that contract ends on May 31, 2026.
The council’s action accepts a procurement framework recommended by Radford’s electric department and the Blue Ridge Power Agency. Tim Logwood of the Radford City electric department told the council the resolution authorizes the city manager to execute master agreements and allows the director of electric to sign confirmation agreements with the least-cost supplier subject to stated pricing criteria. "This particular resolution tonight ... is a resolution to approve Master Power Purchase and Sale Agreements for the term 06/01/2026 through 12/31/2028 for the City Of Radford," Logwood said during the presentation.
Why it matters: the contracts create flexibility to mix products and suppliers, pursue renewable energy and limit Radford’s exposure to a single long-term supplier. The council was presented two primary product approaches: a market (load-following) product and a fixed load-shape product. The resolution sets not-to-exceed average energy-price thresholds in the proposed procurement: $60.49 per megawatt-hour for the load-following product and $55.66 per megawatt-hour for the fixed load-shape product. The resolution also allows the city to adjust confirmed purchases downward in 2028 if the city participates in a solar power purchase agreement (PPA).
Logwood and staff described trade-offs: a fixed-shape product offers price stability and administrative simplicity, while a load-following market product can better align supply with the city’s changing needs but may carry premiums and greater exposure to market volatility. Logwood identified suppliers that participated in the Blue Ridge Power Agency RFP process, including AEP Energy Partners, CMS Energy, NextEra Energy, Shell Energy North America and Title Energy.
The resolution does not automatically commit Radford to long-term generation; it authorizes execution of master EEI agreements and subsequent, targeted confirmation agreements after live pricing. Logwood said Radford University’s load is excluded from this procurement and will be handled separately. The city will bring live pricing back for council review; the resolution includes fall-back procurement rules tied to the observed pricing spread.
What’s next: staff and consultants expect to go out for live pricing within weeks of the presentation. The council recorded affirmative responses on roll call and directed staff to continue work, with further discussion on associated battery-energy storage deferred to the December meeting. Any final confirmation agreements will be brought to council or executed under the authorization and criteria set in the adopted resolution.
