Phoenixville council authorizes multiyear Constellation electricity contract after FERC rate change

Phoenixville Borough Council on Tuesday authorized borough staff to negotiate and execute a multiyear electricity-generation agreement with Constellation, after the Federal Energy Regulatory Commission (FERC) approved a rate change the borough said could add roughly $18,000 to its electric costs for the remainder of 2025.

The authorization, approved 8-0, lets the solicitor, finance director and borough manager finalize a 3- to 5-year agreement that would take effect Dec. 31, 2025, and extend through 2030 if the borough secures that term. Councilmember White moved the motion and Councilmember Berkley seconded; the motion passed unanimously.

Council documents and staff comment framed the action as a response to a recent FERC decision that, according to borough staff, “overrides any contracts that we have as far as the borough is concerned and adds about or could add about $18,000 to the rest of the year for our electric,” and as an opportunity to lock in a competitive energy price now. Borough staff gave the energy portion of the proposed price as 0.07695 dollars per kilowatt-hour (about 7.695 cents), and noted the borough’s current contracted energy price is about 4.3 cents per kilowatt-hour.

Borough staff explained the electric bill has three components—transmission, distribution and energy—and the proposed number applies to the energy portion only. The staff presentation said Constellation offers mid- to high-7-cent-per-kilowatt-hour pricing to municipal customers, while some customers remaining on PECO’s default service are seeing rates between 9 and 11 cents per kilowatt-hour.

Council members also discussed the borough’s municipal solar installations. Borough staff said the borough currently generates roughly 20–30% of its electricity from on-site solar arrays and expects the recreation center and a future installation at the fire station to increase that share. “Currently, just so everybody knows, currently, we don't make enough electricity ... We're somewhere in the 20, 30 percentile,” borough staff said. Staff added that, if a municipal site produces excess generation, state rules allow the borough to apply excess production to other borough accounts within approximately a two-mile radius.

Council distinguished the formal action—authorization to negotiate and execute a renewal—from ongoing analysis: staff will evaluate contract lengths and price scenarios before final execution. The motion authorized council leadership and staff to take any actions necessary to enter into the renewal; no specific final term or executed contract was included in the motion record.

Council approved the authorization 8-0 and directed staff to proceed with final negotiations and execution procedures.

The council discussion preceded a June start to formal contract negotiations; the borough’s current generation contract expires at the end of 2025.