It is not peat moss, it is long fibered sphagnum moss. This is a huge difference!
Orchids grown in sphagnum moss need to be repotted every year. The moss starts to break down and starts to hold too much water in the interior and roots suffer. The moss turns acidic and starts to burn roots which is not desirable either.
From the image, I see a bit of white 'snow mold' which is an additional sign that the moss is holding too much water. If you see "little round spheres", those might be slow release fertilizer pellets.
My best suggestion is to repot your Phalaenopsis into fresh sphagnum moss. But unless you have oodles of repotting experience, let me give you a little guidance Sean.
Pre-moisten the moss. Put a little in the bottom of the pot. Then work in small clumps of moss in and around the roots holding the plant in place within the pot using the thumb and forefinger of your other hand. MAKE SURE that you don't pack the moss in too tight. You don't want it too loose either but packing it in too tight is horrifically worse. Water won't flow properly, roots will suffocate and the plant will suffer.
It takes practice. No one becomes an expert overnight! But Phalaenopsis love fresh media and they respond quickly with new roots!
