The MEGA Minute

Energy Minute by the Municipal Electric and Gas Alliance

October 2023 Edition

MEGA and NYSAC Partner on Energy Market Webinar - Mark Lavigne Executive Director

MEGA and NYSAC Partner on Energy Market Webinar

The Municipal Electric and Gas Alliance held a webinar for counties and local leaders to discuss the challenges and opportunities facing counties, local governments, and schools in today’s changing electric and gas marketplace.

The goal of the webinar was to provide data and information designed to help local leaders make sound decisions about your energy procurement, including conducting a due diligence process as they consider their choices. MEGA’s team of experts addressed the global, national, and state energy market and all the factors that go into pricing. They discussed how weather trends, along with supply and demand, are impacting the pricing that we are seeing in our electric bills and pricing. They also talked about how state and federal public policies are impacting the energy pricing we are seeing for our governments and at home, and why and how bills are going up, even as energy pricing has somewhat stabilized in the past few months.

Click here to watch a recording of the webinar.

What’s New with the CLCPA: State Denies Request for New Off-Shore Wind Subsidies

A decision by New York last week to protect ratepayers from increased electricity rates will make it more difficult for the state to meet the 2o30 renewable goals set forth in the Climate Leadership and Community Protection Act.

A series of large renewable offshore wind projects are now in question as developers’ request for more state subsidies was denied by the Public Service Commission in an October 12th hearing. New Yorkers, who already pay some of the highest rates in the country for electricity, would have been on the hook for covering the costs for these increased subsidies in their electric bills going forward. The developers had asked for higher subsidies to cover the projected increased costs based on inflation, supply chain issues, and conflicts across the globe.

In response to PSC’s denial, Governor Kathy Hochul released a ten-point plan designed to confirm the state’s commitment to expanding its clean energy industry to meet its “ambitious goal of obtaining 70 percent of the State’s electricity from renewable sources by 2030.” Included in the ten-point plan is a pledge to soon announce new Offshore Wind and Onshore Renewables Awards, expedite NYSERDA’s assessment of the impact of its renewable portfolio, launch an accelerated renewable procurement process, leverage federal support, build out its transmission infrastructure, and others. Here are more details on the state’s 10-point plan.

MEGA will continue to follow the state’s progress of the State’s CLCPA and report new policies and activities to MEGA members and local governments.

Due Diligence Means Not Getting Scammed by Differing Pricing Quotes

For 25 years, MEGA has been completely transparent with our pricing options and strategy, and we are proud of that fact.

Unfortunately, other players in the market may be providing contracts that don’t include all cost components or include language where certain cost components can be adjusted throughout the term of the agreement. For over two decades MEGA has led the industry with our transparency and product structures and we advise Municipalities to utilize our free due diligence services when reviewing alternatives. MEGA is available to conduct a due diligence analysis to take a closer look at potential hidden costs in other pricing quotes. We want to make sure that MEGA participants are properly informed when making their energy decisions.

As a program created by counties for local governments in New York State, MEGA’s pledge is two-fold: one, we will provide you with transparent pricing so there are no surprises after you lock in your contract; and two, we will provide the lowest pricing we can, which should be the most competitive and stable throughout the term of your contract. And, if you have any questions, we have a team of experts that will help you determine the best options for you, your government, and your taxpayers.

MEGA attends SAMPO Conference

Municipal purchasing directors and agents from across the state convened for training, workshops, and networking events last week at the fall conference of the New York State Association of Municipal Purchasing Officials (SAMPO). The MEGA team was on hand to support the association, thank MEGA members, meet new friends, and learn about a variety of procurement issues and challenges facing local governments and school districts.

Visit our website for more information.