AC Valley recommends extending gas contract with UGI; opts for one-year electric renewal

The Allegheny-Clarion Valley School Board workshop on Oct. 14, 2024, received a recommendation to extend the district’s natural-gas contract with UGI Energy Services and to renew electric service on a one-year basis while market rates are re-established.

David asked Erin Morrison, the district’s business manager, to present the bids. Morrison said UGI submitted a gas price the district recorded as 3.97 and recommended extending the gas contract through September 2026. “The current rate came in at 3.97 with UGI Energy Services,” she said, and noted the district’s previously reported gas figure was 6.98, a near-halving of the earlier rate as reported in the meeting.

On electricity, Morrison said the district would limit the contract to one year because the supplier (Penelec) will set 2025–26 rates after a market auction in December. “His recommendation was to only go with a year because… they have to go out to the market, and they’d hold an auction for rates,” Morrison said, explaining the district’s preference to avoid a multi-year lock before the market reset.

Why it matters: The district flagged the gas quote as substantially lower than the previously reported figure, which could reduce energy expenditures if confirmed in contract documents. Board members thanked Morrison for negotiating and preparing the recommendation; no formal vote was taken at the workshop, and the item was scheduled for the board’s next business meeting.

What’s next: The administration will place the contracts on the voting meeting agenda. The electric contract recommendation was for a one-year renewal to allow the district to reassess after supplier pricing is set in December. The transcript records rates as stated by staff; units (e.g., $ per therm or $/kWh) were not specified in the meeting materials shared in the workshop.