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Radford council OKs emergency measure to allow utility director to buy congestion hedges, caps exposure at $630,000

Radford City Council · March 24, 2026

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Summary

Council adopted an emergency resolution delegating authority to the utility director (with city manager approval) to purchase congestion hedges and bid on financial transmission rights to manage transmission congestion risk, setting a not-to-exceed exposure of $630,000 for June 1, 2026–Dec. 31, 2028.

Radford City Council on March 23 adopted an emergency resolution delegating authority to the utility director, subject to city manager approval, to manage transmission-congestion risk through financial transmission rights (FTRs) and related hedging agreements.

Mayor Horton read the resolution, which frames the step as necessary to mitigate pricing exposure associated with delivering fixed energy supply to wholesale points and to preserve rate stability and budget predictability. The measure covers a 31‑month authorization period (06/01/2026 through 12/31/2028) and establishes a not‑to‑exceed congestion cost equal to 75% of the city's previous supplier estimate — a stated value of $630,000 over the authorization period.

The council heard from staff that electricity markets have grown more complex than a traditional wholesale contract and that delegating execution authority to the utility director (named as Tim Logwood in council remarks) will allow the city to act more nimbly as pricing and congestion signals arise.

Council moved, seconded and approved the measure by roll call; the resolution was adopted as an emergency measure and takes effect immediately. Mayor Horton said the action is intended to help protect the city's budget from exposure to transmission congestion charges and that advisory support from GDS Associates will be used to identify and evaluate hedging opportunities.

The adoption does not itself commit funds beyond the approved not-to-exceed parameter; staff said they will report back to council and provide verbal or written approvals when transactions occur during the authorization period.