Haverford committee hears energy update: contracts, RECs and PJM capacity risk

Kate Stanley of Provident Energy updated the Haverford Township School District Finance & Facilities Committee on the district’s current energy contracts, renewable-energy-credit (REC) options and a PJM capacity auction that is likely to raise capacity charges for 2025–26.

The update matters because capacity charges set at the regional level and choices about RECs can change the district’s total energy bill and budget planning for 2025–26. Committee members discussed REC purchase timing, the possible effect of planned solar arrays and the value of a facilities energy audit.

Stanley said the district’s natural-gas contracts were renewed in June 2024 and run through parts of 2028; low-volume gas accounts remain with UGI Energy Services and high-volume (transportation) accounts are with NRG. Electric supply agreements were executed in early November 2024 with WGL and are contracted through June 2027. Stanley said the district recently purchased RECs for a short November–June term and that no RECs are currently secured to cover the WGL agreement that begins July 2025.

On REC pricing, Stanley reported recent quotes from WGL at about $3.24–$3.33 per REC depending on term: roughly $3.25 per REC for a 12-month tranche and about $3.33 per REC if purchased up front to cover a 24-month contract. She said the district used roughly a little over 6,000 RECs for the prior short term and that the estimated load for a single 12‑month year would be just under 9,000 RECs. Stanley explained that one REC equals the renewable attribute for one megawatt-hour of generation and that most RECs in these offers come from Green-e certified wind resources, typically located in Texas.

The committee asked how RECs interact with onsite solar. Stanley said WGL’s offer is structured in blocks determined by historical or projected load rather than a month-by-month match; if the district brings online solar at Linwood, Chatham or Coopertown, that could reduce the load WGL would use to size a block, so the committee might prefer shorter REC terms (or to buy RECs incrementally) to avoid paying for renewable attributes the district no longer needs.

Stanley also presented a high-level benchmarking metric, energy-use intensity (EUI), comparing the district’s portfolio to K–12 peers in eastern Pennsylvania. She cautioned that 2024 data are undercounted because of PECO meter-reading and account issues (notably a high-school gas account), so 2024 EUI figures should be treated as incomplete. The committee discussed whether differences in air-conditioning, building use (summer programs at Linwood) or controls and zoning might explain anomalous consumption patterns; members recommended a targeted facility energy audit or assessment to identify low-cost efficiency gains and control-system fixes.

On regional market risk, Stanley reviewed the recent PJM capacity auction for the 2025–26 planning year, which cleared at about $270 (reported in the presentation). She said that auction outcome is likely to increase capacity-related charges that appear as a component of the district’s supply bill and estimated those capacity and transmission components could add roughly 15–20% to total supply costs for the 2025–26 planning year. Stanley noted short-term market interventions (a floor and ceiling negotiated by Pennsylvania’s governor) will cap the next two auctions roughly between $1.75 and $3.25 in the same units shown in her slides, but she cautioned forecasts vary and that demand growth (for example, from data centers and AI computing) and retirements of older generation continue to pressure capacity prices.

Stanley recommended the district consider shorter REC purchase terms or staggered purchases to avoid overpaying if onsite solar comes online. She also recommended that the district sign up for peak-day notifications (provided by Provident) so facilities staff can curtail nonessential loads on forecasted peak demand days; lowering usage on those peak days reduces each account’s peak-load contribution tag and can reduce future capacity charges. Stanley offered to connect the district with affiliate firms (ICS and CMTA) that can perform facility assessments and noted Provident can assist with data and RFP coordination.

Committee members asked for follow-up on the solar project timelines so REC commitments can be sized appropriately, and they discussed adding the REC cost to the 2025–26 budget if the board chooses to proceed. Stanley said REC purchases can be done at any point and in partial tranches; a 30-day termination/notice window applies if changing arrangements with the supplier.

The committee did not take a formal vote during the meeting; next steps discussed were (1) collecting clearer timelines for planned solar arrays at Coopertown, Chatham and Linwood, (2) considering an RFP for a facilities energy audit or assessment, and (3) monitoring PJM auction results and REC market quotes before deciding whether to buy 12‑month or 24‑month REC tranches.

Ending: Stanley said Provident will continue to monitor markets and will send peak-day advisories; committee members asked staff to return recommendations and, if needed, draft RFP language for a facility assessment and to provide updated REC cost/coverage options ahead of the board’s budget decision.