Bedford residents concerned about high power bills

BEDFORD, Va. (WDBJ) — Residents across Bedford are reporting high electric bills, ranging from $600 to $900 or more over the past two months, as extended cold temperatures and a recent rate increase strain household budgets.

The Town of Bedford increased electric rates by around 15% for most customers in October after the cost of power from the regional grid skyrocketed in 2025, costing the town an additional $3 million.

Bedford Electric Utilities Director John Wagner stated that the primary reason for the rate increase was a significant increase in grid prices from PJM, the regional grid operator.

“The price we pay for what’s known as PJM capacity increased 580% last year. It went from about $40,000 a month to $300,000 a month. So that was about a $3 million increase that we saw,” Wagner said.

Wagner said the town had been absorbing energy cost increases for three to four years, but the town council determined that was unsustainable and hired an independent consultant to review rates.

The rate increase was about 15% for average residential customers but 17% to 20% for high-use customers. Wagner said Bedford has no natural gas service, meaning most residents rely on electric heat pumps.

Wagner said the extended frigid temperatures have been a major factor in the sharp increase in bills.

“Heat pumps kind of lose their efficiency below 25 degrees. You end up using your backup heat, which uses a lot more energy. And that contributes to it. In fact, that’s a major driver when you think about it. And we hadn’t gone above 25 degrees for almost three weeks,” Wagner said.

Wagner said average usage jumped from around 700 kilowatt hours per month in October to over 1,200 kilowatt hours in January.

“Honestly, here in Bedford, since I’ve been here, which is about 12 years, we’ve never had an extended cold spell like this,” Wagner said.

Even Wagner experienced high bills due to his heat pump malfunctioning during the cold weather, forcing him to run backup heat for three weeks and lower his thermostat to 63 degrees.

Zach Carmen, who lives in Bedford with four daughters, said his most recent bill was over $650. His December bill showed energy usage of only $135.99, but included an electric power recovery charge of $464.99.

“My water bill is like $180 a month, which I already think is ridiculous. But now my electric bill is like four times or three times more than that. And that’s just… how do they make it so that we can keep living or make our bills on time? It’s ridiculous,” Carmen said.

Carmen said his house is heated with oil, not electricity, making the high electric bills particularly frustrating.

“My house was built in 1925. The insulation’s not that great. It’s an older house. But my heat is not electric. So why is my electric bill skyrocketing? It’s ridiculous,” Carmen said.

Doug Aune, a Bedford County resident who is a Bedford Utility customer, compared his December bills year-over-year and found his rate increased from 12 cents per kilowatt hour to 16 cents per kilowatt hour.

“December to December, last year was roughly $430. This year was $608. So that’s what, a $170 increase. And the interesting part about it is that I used fewer hours this December than I did the previous one. So, less energy usage, but I paid more,” Aune said.

Aune said he now has to budget $200 to $300 more per month just for electric costs.

“I can withstand the brunt of that cost increase. I’m fortunate enough to be able to do that between my job and my wife’s job. I know there are a lot of Bedford residents who don’t have that ability. Some of them are paycheck to paycheck, and that increase, however slight it may be, might be the difference between eating a hot dog or eating a steak,” Aune said.

The Bedford Electric Department isn’t the only one being impacted by increased grid costs.

Erin Reynolds, a Bedford County resident and Appalachian Power customer, said her December bill nearly doubled from the previous month.

“Our bill went from $561 in November to $954 in December. And I’m not arguing that we did use more electric that month. But for it to double, I just… My concern is that for the average person, that’s not doable,” Reynolds said.

Reynolds, who works as a realtor and has five people living in her home, said the timing was fortunate because her household had recently combined two incomes.

“Thankfully, we combined households right about that time. So we have two incomes in our household. If we had not, there’s no way we could have paid that bill. And so that’s why I worry about people that can’t,” Reynolds said.

Reynolds said the high utility bills could impact the local housing market.

“It affects when people are looking at a house, their ability to purchase a house if they know that the utility bills are that high,” Reynolds said.

She said she previously lived in Botetourt County, where AEP rates took a similar jump about two years ago.

“It seems like they go way up, people complain, they sort of level out again. So I’m glad people’s voices are being heard, because I really do think it makes a difference,” Reynolds said.

Kristin Dolce lives in the Town of Bedford. She said her family’s most recent bill was over $800.

“They’re putting their tax-paying home-owning residents in situations where, you know, you have to choose between, uh, packing a kid’s school lunch and having enough money for food or other bills,” Dolce said. “$800. Like I literally drew tears yesterday when I opened that bill.”

Dolce said Bedford is one of the only electric utilities that does not participate in programs that help low-income residents, unlike other cities that offer a 10% income maximum during winter.

“We’ve had to think about maybe staying at family during the winter in this house and breaking this all up because what else are we going to do if it gets shut off?” Dolce said.

Carmen criticized the town’s process for approving the rate increase, saying few people knew what was being proposed.

“If there’s an issue that’s being voted on, there shouldn’t be a vote with less than 20 people in the courtroom,” he said. “Half of us didn’t even know there was an issue or being voted on.”

Reynolds said the utility bill increases are part of a broader pattern of rising costs affecting residents.

“I am concerned about it because the cost of everything has gone up. You know, property rates have gone up. Grocery bills have gone up. And I feel like utility bills are going up too, it just, it might be the thing that makes it impossible for people to continue to live at the level that they’re living,” Reynolds said.

Wagner said Bedford Electric works to minimize costs but doesn’t control grid prices, which are determined by the regional grid operator. He said 70% to 80% of Bedford’s costs are grid-related.

Wagner explained that the grid operator is seeing declining capacity as generating units are retired, while new loads from data centers and population growth increase demand.

“There’s declining capacity in the market and increasing loads on the load side from consumers and from data centers and large customers. So as you look down the road, and as PJM looks down the road, they’re doing everything they can do to ensure that the system is reliable,” Wagner said.

He said new power plants cost at least half a billion dollars, making it difficult for investors to build new capacity amid regulatory uncertainty.

Wagner noted that Bedford generates 20% to 30% of its own energy from renewable sources, including solar farms, hydroelectric plants, and wind farms, and is a non-profit utility as part of the town’s government.

“It’s a very high priority for us to try and do the best we can in keeping costs as low as we can for our customers,” Wagner said.

Wagner said he expects customers will see their bills drop by 30% to 50% as the weather warms and usage returns to normal levels.

Wagner recommended several steps customers can take to reduce bills, including keeping heating systems in good condition, lowering thermostats, and checking water heaters.

“For every degree that you lower it, you’re going to decrease your consumption by maybe 2, 3, 4, 5 percent,” Wagner said.

Other recommendations include switching to LED lights and sealing doors and windows to reduce cold air infiltration.

Two financial assistance programs are available through the Virginia Department of Social Services. The Fuel Assistance program requires households to have a heating expense and gross monthly income that does not exceed 150% of the federal poverty level, but applications are only open in the fall.

The Percentage of Income Payment Program is open year-round but is only available for Appalachian Power and Dominion customers. It lowers bills based on household income and can eliminate outstanding balances if consistent payments are made.

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