Committee reports favorably on multi-year energy procurement and 20 MW Abe's Run solar purchase

The Committee on Transportation and Public Utilities on the record reported favorably two measures that would let the city lock in multi-year energy purchases and buy renewable electricity from a new solar project.

Madeline Hsu, the city energy manager in the Office of Sustainability's Division of Energy and Climate Solutions, testified the first measure (Bill 250001) "authorizes the purchase of electricity, natural gas, and vehicle fuel for the city and its facilities to be delivered through fiscal year 2028." She said the city's approach aims "to provide budget certainty, to have transparent pricing, and to do so by increasingly using clean and renewable energy."

The second measure (Bill 250487) would authorize the procurement commissioner to contract with the Philadelphia Energy Authority (PEA) to buy electricity and related renewable attributes from the Abe's Run solar facility. Katie Bartolotta, vice president of policy and strategic partnerships at PEA, described the Abe's Run power purchase agreement as a 20‑megawatt project that "will constitute 5% of the city's electricity supply" and provides a fixed‑rate price hedge for 20 years.

Why it matters: City staff said buying supply in multi‑year blocks and adding renewable power helps smooth volatile wholesale markets and reduce the city's exposure to price spikes. Hsu told the committee the city's three utility funds (general, aviation and water) averaged about $58 million in electricity costs over the prior three fiscal years and that the general fund's electricity cost in fiscal 2024 was about $28 million. She said the city competitively selects licensed service providers who act as agents in the regional wholesale electricity market (PJM).

Details and debate: Hsu summarized the city's procurement history going back to 2010 and cited Executive Order No. 6‑10, which established the city energy manager and an electricity supply advisory committee. She described the energy procurement program as coordinated with Finance, Water and Philadelphia International Airport staff and guided by the Municipal Energy Master Plan. Committee members asked for clarification on the grid and on whether purchases covered municipal accounts only; Hsu said the authorization applies to municipally owned facilities and accounts, not to residential accounts.

On Abe's Run, Bartolotta said the project was selected through a competitive RFP run by PEA and that the winning proposal met the city's compliance requirements and pricing targets while offering labor and workforce diversity provisions in its economic opportunity plan. She said the owner‑operator will be Oriden Power, a subsidiary of Mitsubishi Power Americas, and that combined with the existing Adam Solar project the city would procure about 30% of its electricity from contracted renewable sources if Abe's Run is approved.

Formal action: Council members moved and seconded committee reports with favorable recommendations and suspension of council rules to permit first reading at the next council session. For Bill 250001 the motion was moved by Council member Escuela and seconded by Council member Jones; for Bill 250487 the motion was moved by a council member identified in the record and seconded by Council member Young. Both motions passed on voice votes in committee.

What was not decided: The committee reported both measures favorably; neither final citywide budget authority nor contract awards were adopted at the hearing. Specific contract pricing, the full economic opportunity plan text, and final legal agreements with Abe's Run owner‑operator were not included in testimony and remain to be approved and published.

Next steps: Both bills were reported out of committee with favorable recommendations and are expected for first reading at the next council session if the full council proceeds with the committee's recommendation.