2-Montgomery County Energy Procurement Memo.pdf
PDF 131 KB Posted
- Attached to
- Hydroelectric Generation Development Partner
- Solicitation number
- 25-63
- Issued by
- Montgomery County, Northern Cambria Borough, Pennsylvania
About this file
This is a procurement memorandum from Montgomery County, Pennsylvania, detailing the county's energy purchasing strategy through membership in the Sustainable Energy Partnership of Southeast PA (SEP), a regional consortium comprising Bucks, Chester, Delaware, and Montgomery counties established under a Memorandum of Understanding adopted in October 2023. The Energy Board, organized by the Delaware Valley Planning Commission (DVRPC), oversees the partnership's procurement activities with support from a technical consultant. Montgomery County currently consumes approximately 23.7 GWH annually at a cost of roughly $1.7 million per year. The SEP partnership employs a managed portfolio approach utilizing a Dedicated PJM Sub Account procured through retail supplier via public solicitation, with approximately 80% of projected annual load secured through fixed-rate conventional power blocks in the wholesale energy market and the remaining balance purchased at PECO zone day-ahead hourly rates. The partnership's goals include meeting renewable energy targets through access to large-scale renewables exceeding 10 MWs, lowering energy costs and budget risk, growing membership, institutionalizing ongoing energy procurement, and avoiding overextension of county resources.
SEP's energy consultant, Enel X, provides system peak predictor services to assist members in reducing summer peak demands and associated capacity and transmission costs. The latest 2026 calendar year portfolio cost forecast is $0.077/kWh excluding Gross Receipts Tax (GRT). The partnership currently pursues renewable energy purchase opportunities through Power Purchase Agreements (PPAs) with renewable projects located in PJM territory, with energy delivered directly into SEP's subaccount to replace future conventional energy block purchases. Additionally, SEP purchases national Green-e wind Renewable Energy Credits (RECs) to meet emission reduction goals. All electric supply costs are billed through a $/kWh-based budget billing rate adjusted periodically to reconcile actual versus billed kilowatt-hour costs, and SEP maintains an excess working capital balance with the supplier to absorb energy price volatility. One Montgomery Plaza and the Courthouse consumed 6,800 MWh annually during 2020-2022; the new Justice Center replacement is projected to be more efficient with reduced demand. Specific questions regarding Montgomery County's energy purchasing can be directed through the Bonfire portal.
View the file
Other files
On GovTribe
Work with this file
- Download the original file
- Contacts named in this file
- Similar government files
- Ask GovTribe AI about this file
Text version
November 17, 2025
Montgomery County Energy Procurement Memo Montgomery County is a member of The Sustainable Energy Partnership of Southeast PA (SEP).
SEP has been working together since September 2020 to explore pathways to purchase renewable energy to power county operations in Bucks, Chester, Delaware and Montgomery counties. In October 2023, the four counties adopted a Memorandum of Understanding (MOU) to form an Energy Board that will oversee the Partnership to achieve the following shared goals:
-Meet renewable energy targets through access to large-scale renewables with regional benefits (> 10 MWs) -Lower energy costs and lower budget risk;
-Grow Partnership membership;
-Institutionalize and plan for ongoing energy procurement//Establish framework for ongoing energy procurement;
-Avoid overextending county resources.
The Delaware Valley Planning Commission (DVRPC) organizes the Energy Board, and the Board employs a technical consultant to help guide energy purchasing decisions.
The Sustainable Energy Partnership of Southeast Pennsylvania (SEP) employs a managed portfolio approach utilizing a Dedicated PJM Sub Account procured through retail supplier via public solicitation. All SEP member accounts are enrolled in the Sub Account. All PJM charges for the enrolled accounts are passed thru at cost. Fixed rate blocks of conventional power are procured in the wholesale energy market via bid process for approximately 80% of the projected SEP annual load with the balance purchased at the PECO zone day ahead hourly rates. SEP’s energy consultant (Enel X) provides a system peak predictor service to assist members in lowering summer peak demands thereby lowering capacity and transmission costs. SEP continues to pursue and evaluate renewable energy purchase opportunities to meet their renewable energy goals. Energy contracted through PPAs with renewable projects located in the PJM territory can be delivered directly into SEP’s subaccount thereby replacing future conventional energy block purchases. Currently SEP purchases national Green-e wind RECs to meet their emission reduction goals. All electric supply costs are billed via a $/kWh-based budget billing rate which is adjusted periodically to true-up actual vs. billed kWh costs. SEP maintains an excess working capital balance with the supplier as a cushion to absorb energy price volatility and help keep the current year budget billing rates intact.
The County consumed an estimated 23.7 GWH annually, at a cost of roughly 1.7 million a year. The latest SEP 2026 calendar year portfolio cost forecast is $.077/kWh excluding GRT. The average annual electrical power demand for One Montgomery Plaza and the Court House, which is a few blocks from the Norristown Dam, was 6,800 MWhrs in 2020-2022, and the new Justice Center, which will replace the existing Courthouse, is projected to be more efficient with reduced demand.
Specific questions about Montgomery County’s energy purchasing can be sent through the Bonfire portal.
MONTGOMERY COUNTY
BOARD OF COMMISSIONERS
NEIL K. MAKHIJA, CHAIR
JAMILA H. WINDER, VICE CHAIR
THOMAS DIBELLO, COMMISSIONER
MONTGOMERY COUNTY
PLANNING COMMISSION
MONTGOMERY COUNTY COURTHOUSE • PO BOX 311
NORRISTOWN, PA 19404-0311
610-278-3722
FAX: 610-278-3941• TDD: 610-631-1211
WWW.MONTCOPA.ORG
Scott France, AICP
EXECUTIVE DIRECTOR
http://www.montcopa.org/
File details come from the government source that posted it. Updated .