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Committee authorizes borough manager to sign energy supply agreements to lock in expected savings
Summary
The committee voted to give the borough manager authority to execute electric and gas supply contracts that save money versus the utility default tariff; staff said the borough expects roughly $112,000 in annual savings and will buy renewable energy via certificates where feasible.
The Administration, Communication and Technology Committee on April 8 authorized the borough manager to execute third‑party electric and natural gas supply contracts, with the condition that any agreement must offer a price below the utility default tariff.
Sustainability director Will Williams told the committee that signing a supply contract can provide price certainty and that the borough is “projecting savings of $112,000 per year,” most of which would accrue to the wastewater budget because of energy use at the borough’s two treatment plants. Williams said the borough typically buys renewable energy by procuring renewable energy certificates and that doing so adds only a small premium to the price.
Williams framed the request as authority to act when market conditions are favorable rather than approval of a specific deal. He explained that energy markets move daily and that waiting several weeks for Council approval after soliciting pricing would likely force the borough to pay a premium. The action the committee approved is a guardrail: staff may sign a contract only if it is priced below the utility (referred to in the meeting as the PICO) default tariff.
Committee members asked about contract length, cancellation terms and the elements of energy pricing beyond supply, such as PJM‑area capacity and transmission charges. Williams said supply contracts typically cover the generation price and that delivery and capacity charges are separate and can still change; he said a one‑year minimum term is common but the borough seeks flexibility and no cancellation penalties where possible.
The motion to authorize the borough manager to execute electric and gas purchasing agreements passed on the committee floor (vote recorded as two in favor). The committee directed staff to continue monitoring the market and to report any executed agreements to Council under the approved guardrails.
