Council evaluates ISG Energy contract renewal amid potential CCA program impact

The Finance & Administration Committee of Narberth Borough convened on April 17, 2025, to discuss several key agenda items, with a primary focus on the renewal of the ISG Energy contract. The meeting began with a motion to renew the contract, which is set to expire at the end of the year. Committee members expressed the need for further discussion regarding the implications of a Community Choice Aggregation (CCA) program currently under review by the Pennsylvania Public Utility Commission (PUC).

During the meeting, it was highlighted that the CCA program could significantly impact the existing contract with ISG Energy. The committee was advised that renewing the contract now would allow the borough to lock in favorable rates before the anticipated peak summer rates. However, concerns were raised about the potential need to terminate the ISG contract if the CCA program is approved, which would render the ISG contract unnecessary.

Graham Lou from ISG Energy provided insights into the contract's terms, explaining that if the borough were to terminate the contract after locking in rates, ISG would liquidate the assets associated with the contract. This process could result in financial implications depending on market conditions at the time of liquidation. If the market price were to rise after the borough locked in a low rate, there would be no penalties. Conversely, if prices fell, the borough could incur costs to cover the difference.

The committee discussed the possibility of entering a shorter contract with ISG, allowing for flexibility in case the CCA program is approved. This would enable the borough to defer the implementation of the CCA until the ISG contract concludes.

Ultimately, the committee acknowledged the recommendation to act promptly to secure the current favorable rates but also recognized the option to delay a decision until the next meeting in May. The discussions underscored the complexities of energy contracting in light of evolving energy programs and market conditions, leaving the final decision open for further consideration.