The MEGA Minute

A Newsletter for Participants and Partners of

the Municipal Electric and Gas Alliance, Inc.

September 2023 Edition

In this edition:

Upcoming Webinar: Winter Is Coming!
Energy Market Update
MEGA Pricing Solutions
Procurement Due Diligence
Getting Independent Procurement Help

Winter Is Coming! Join us for a Webinar on How Will It Impact Costs Mark Lavigne, Interim Executive Director

Now that the hottest summer on record is past us and fall is here, we know that winter is coming, and it’s going to impact our energy use and costs.

Join us at 10 a.m. on Thursday, September 28th for a MEGA webinar on Energy Pricing and Procurement to discuss the challenges and opportunities facing counties, local governments, and schools in today’s changing electric and gas marketplace. As public entities prepare for this coming winter, this webinar will provide critical budget planning information. In this web-based workshop, presenters will discuss the difference between a fixed price contract and riding the volatile market. We will also have a procurement expert discuss comparing pricing in the complex energy buying. Register here.

Market Update - Hottest Year on Record Aleks Urosevic - EnergyNext, Inc.

It’s weird to think about the upcoming winter, when we are also talking about an energy market that continues to be impacted by the record heat around the world. It appears now that 2023 will end up being the Earth’s warmest on record.

The three months from June through August were the globe’s hottest in 174 years of record keeping, 0.43 degrees Fahrenheit (0.24 Celsius) above the previous record and 2.07 degrees (1.15 Celsius) above the 20th-century average for Northern Hemisphere summer, according to NOAA’s National Centers for Environmental Information.

The significant heat drove increased demand this summer, and coupled with relatively flat production and increased exports of liquified natural gas in the United States, it has had a direct impact on the energy costs we are paying at home and in our governments.

As we move into Fall, forecasts for the upcoming El Niño winter will be important to monitor. A typical El Niño winter can decrease demand and support bearish energy prices, but they can also cause significant price increases due to wetter and cooler conditions in the south.

Getting MEGA Pricing is Easy and It Can Help

The Municipal Electric and Gas Alliance (MEGA) is a 25-year-old aggregator of electricity, natural gas, and renewable power. Our primary objective is to achieve the most competitive prices for electricity and natural gas for our member local governments and schools to minimize cost and maximize a stable supply of energy. We were first created in 1998 and two years later became a Local Development Corporation that serves local governments and affiliated entities by group purchasing electricity, natural gas and other energy products and services. We presently serve over 300 energy supply accounts for more than 250 municipalities and school districts.

We are proud of our history and service of helping the local government and school leaders who serve millions of New Yorkers across the state. And we are happy to welcome new municipalities and school districts into the MEGA family.

Getting MEGA Pricing is as Easy as 1, 2, 3.

Step 1: Fill out the Pricing Proposal Request form

Step 2: Find the last two months of your electric or natural gas bills.

Step 3: Scan them and send to [email protected]

Doing Your Due Diligence

The energy market is volatile. We know that the cost of electricity transition in the State of New York is going up. That is something we cannot control. And we cannot control the ups and downs in the costs of electricity and natural gas supply, but we can apply market expertise in our forecasts (see Webinar details above).

When and if the State Comptroller reviews a locality’s energy procurement process, they will look at whether or not the municipality did its due diligence prior to entering into a contract. What does that mean?

Due diligence is part of the energy procurement process and is something we can control. MEGA does the first round of due diligence during our competitive procurement process. The resulting contract can be piggy-backed by other municipalities and school districts across the state.

Then, when the locality starts exploring energy pricing for procurement, it’s important to compare bids that are similar in length and fees. Make sure that all supply components and fees are included in the pricing that you are comparing. And ask about, and compare, any broker or consultant fee that will be applied to the monthly bills. In addition, look at the potential benchmark rates. These components all help with demonstrating and practicing sound due diligence.

Independent Review of Energy Pricing

If you need help with that due diligence, the New York State Association of Counties (NYSAC) has engaged an independent procurement expert that can be called on to help counties, local governments or schools to review and compare electric or gas pricing proposals. Karen Storm is a former Albany County Purchasing Director, former president of the New York State Association of Purchasing Officials (SAMPO) and is a sought-after trainer on local government procurement processes.

MEGA customers or any other municipality exploring MEGA pricing against other electricity or gas pricing can get help comparing contracts.

For a no cost, objective consultation of your energy pricing contracts, please contact former Albany County Procurement Director Karen Storm at [email protected].

MEGA Partner Constellation Offers Energy to Educate Grant Program

Through the Energy to Educate grant program, Constellation Energy’s Energy to Educate Grant program supports projects designed to help enhance students between the sixth grade through college with opportunities to address the energy challenges of today and tomorrow. The program is focused on helping students think about energy from a science and technology perspective, and inspire them to consider solutions that can help change the world.

Applications for funding will close on October 1st, 2023.

Since the program's inception in 2010, nearly $5,500,000 in grant dollars have supported 269,000 students' learning nationwide.

MEGA encourages member school districts to apply for funding. The 2023 Application is open, please click here to apply. Applications will close on October 1st. Looking for more details on how to apply? Click here to find grant requirements, innovation themes and more! Click here to view 2022 Awardees, including the Rochester Institute of Technology and a high school in New York City.

Visit our website for more information.