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Municipal Electric and Gas Alliance
March 2024 Edition
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2024 is a Year of Action for MEGA | |
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In 2023, MEGA celebrated its 25th anniversary while simultaneously investing significant time and effort in setting new strategic goals for the organization and hiring a new Executive Director, Mark LaVigne. The work conducted last year has positioned MEGA to make 2024 a year of action, with all hands on deck to reach our ambitious goals and provide results for members.
To that end, and just within just the first three months of 2024, MEGA has:
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Finalized a new NY procurement-certified bid for electricity and gas that will serve our members, old and new, with stable, cost-competitive supply into 2029,
- Added 15 new members to the Alliance,
- Convened our governing boards, collectively engaging leaders from 27 counties in setting the direction for the Alliance,
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Elected an experienced slate of municipal leaders to the Board of Directors' Executive Committee to lead the organization,
- Designed an updated logo that better reflects MEGA's mission,
- Talked with hundreds of government and school leaders at recent municipal events about how they can leverage MEGA's Power of Partnership for their local energy supply, and
- Coordinated several informational sessions on state and federal energy incentives that can directly benefit municipal entities.
This is just the beginning. In the coming months, we will be offering new informational programming, launching a fresh website, and expanding our staff. Follow our progressas we build on our track record of offering savings, scale, and expert energy insight to make your energy supply efforts successful.
Be part of the action! Please share your ideas on how we can better serve municipal members through this brief survey (closing on March 31st).
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Next Tuesday, March 26th at 2 p.m., we will host a webinar that details who we are and what we do at the Municipal Electricity and Gas Alliance (MEGA). We will discuss where this non-profit local development corporation fits into the energy market in New York State. Tune in to learn more about how deregulation changed the energy market in the state and what that means to MEGA participants and other eligible local entities across the state. Finally, our presenters will provide an update on current market conditions and expectations for the future! Register Now! | |
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Warm Winter Behind Us. Hot Summer Forecasted.
What is Your Energy Purchasing Strategy?
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Both the U.S. and New York just experienced their warmest meteorological winter (December 2023 – February 2024) on record, with temperatures 5.4 degrees above average. The warmth decreased natural gas demand for the second consecutive winter season, helping to replenish the critically low storage levels of 2022 and energy price increases from 2022, which supported the climb in energy prices. As of mid-March 2024, natural gas in storage sits 37.1% above the 5-year average and 16.9% above prior-year levels.
With the glut of natural gas supply and favorable weather dampening demand, energy, both gas and electricity, rates have dropped to near-record lows. Looking ahead, summer 2024 forecasts are calling for another hot summer which could spike demand. However, the surplus in supply has minimized any bullish pricing movement to this point. MEGA and our energy experts will be closely monitoring production levels and demand projections throughout the upcoming shoulder months to help members navigate the impact on energy pricing.
What we do know is that today's competitive electricity markets are experiencing market volatility that hasn’t been seen for over a decade. To be successful, decision-makers need to be market savvy in their purchasing. An electricity purchasing strategy allows local leaders to secure cost savings, manage risk, and address sustainability goals. Designing an electricity purchasing strategy that is optimized for your unique operations is easier than you might think, and it can be imperative to achieving your organization’s goals.
For more details, please reach out to us at [email protected].
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From Governor to Legislature: Status of 2024 State Budget Energy Proposals | |
With less than two weeks until the start of the State’s new fiscal year, the Senate and Assembly released their one-house budget proposals, outlining their energy priorities for the state budget with negotiations to follow. Here is how the legislative priorities line up with the Governor's original proposals:
Staying Alive
Both houses accepted Governor Hochul’s proposal to accelerate the siting of large-scale transmission lines and added provisions to protect farmland and increase municipal and public input. The Senate would also give the Office of Renewable Energy Siting (ORES) the authority to site stand-alone commercial-scale battery storage projects.
Off the Table
The Senate rejected the Governor’s proposal to align public service law with the climate law mandates and replaced it with the New York Home Energy Affordable Transition (NY HEAT) Act, which includes more expansive provisions like capping home energy bills at 6% of a household’s income. The Assembly rejected the Governor’s proposal, maintaining its stance that policy without a clear fiscal connection should be enacted outside of the state budget.
New to the Table
Both houses included new energy-related legislation and appropriations in their respective budget proposals. The Assembly included language to provide a sales tax exemption for the purchase and installation of residential and commercial energy storage systems used to provide heating, cooling, hot water, and electricity. The Senate advanced provisions of the Climate Change Superfund Act, which would require fossil fuel companies that contributed to climate change to pay into a cost recovery program that would support adaptation projects.
Race to the Finish
State lawmakers are now rushing to finish the budget before the April 1st
deadline, feeling the pressure to return to their districts for the Easter and Passover holidays and to campaign for reelection. However, important sticking points like housing, school aid, and Medicaid may keep lawmakers from passing an on-time budget again this year.
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MEGA On the Road
April:
17-19: Government Finance Officers Conference (Albany)
May:
1 - 3: NYSAC, County Finance School (Turning Stone, Verona)
1 - 2: Tug Hill Commission, Local Government Conference (Turning Stone, Verona)
8 -10: State Association of Municipal Purchasing Officials, Annual Conference (Lake George)
If you are at any of these conferences, come say hello. For more information, to book a consultation, invite us to a meeting, or to get pricing, email [email protected] or call Mark LaVigne at 518-429-0189 or Aleks Urosevic at 847-274-2283.
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The 2024-202 MEGA Board of Directors met in April at the NYSAC Legislative Meeting. From Lower left: Terri Ross (Allegany County), Mark Taylor (Chair, Schuyler), Mark LaVigne (Executive Director), Crystal Abers (Secretary, Cattaraugus County), Robert Wood (Treasurer, Otsego County), James Genovese (Oneida County), Mark Sachetti (Jefferson County), Rochelle Stein (Vice Chair, Genesee County), Vince Napoli (Ellenville School District, Ulster County). | | | | |
