Three Months Into the Iran War & What Summer Means for New York Energy

Three months after U.S.-Israeli military strikes triggered the closure of the Strait of Hormuz, the global energy crisis shows no signs of resolution. More than 14 million barrels of oil per day remain shut in, the largest supply disruption since the 1970s, and oil prices remain elevated near $95 per barrel. The Trump administration’s “Project Freedom” initiative to reopen shipping lanes has had limited impact so far, and formal peace talks have yet to begin.

For New York, the near-term concern is the approaching summer and what comes after it. While spring has brought some temporary relief to natural gas prices, forward prices for the coming winter remain significantly elevated. The Northeast’s heavy reliance on imported Liquefied Natural Gas (LNG) during cold weather months means that global supply disruptions translate directly into higher heating costs for New York consumers. With global LNG prices more than 50% above year-ago levels, the region faces real risk heading into fall and winter.

New York’s electricity market is equally exposed. Because natural gas fuels roughly half of the state’s power generation, gas price increases feed directly into electricity costs. As forecasts for the upcoming summer call for a potential Super El Niño, cooling demand is expected to push usage and bills higher.

For MEGA participants, this remains an environment that rewards proactive planning. With summer cooling demand on the way and winter forward prices already reflecting global risk, contracts coming up for renewal deserve close attention. Locking in pricing before the full weight of summer demand arrives may offer the best available protection against continued uncertainty.

For more details or to discuss your individual energy strategy, please reach out to us at info@megaenergy.org.

New State Budget Revises CLCPA Targets and Timelines

After a prolonged delay, New York State has enacted its latest budget, including several notable changes to energy and climate policy. Updates to the Climate Leadership and Community Protection Act (CLCPA) adjust emissions accounting methods, revise planning timelines, and introduce new regulatory considerations, including a greater emphasis on affordability and economic impacts.



The budget also includes additional funding for clean energy programs, new tools to address energy affordability, and expanded incentives for municipal initiatives such as electric vehicle adoption.

NYS Announces $100M for clean energy upgrades in schools

By Payton Cavanaugh, News10

New York State recently announced $100 million in funding to support clean energy upgrades in schools, aimed at improving energy efficiency and reducing emissions. The initiative will help districts invest in building improvements such as electrification, energy‑efficient systems, and infrastructure upgrades. The program reflects a broader effort to modernize public facilities while managing long‑term energy costs.

Data Reveals Striking Divide in Power Usage Among States

By Julie Zhu, Times Union

New federal data provides a closer look at electricity usage across the U.S., showing that New York ranks among the lowest states in per‑person electricity consumption, despite its large population. The findings highlight how factors such as housing density, a service‑based economy, and higher electricity prices contribute to lower usage levels. At the same time, continued investment in grid modernization and growing energy demand could place upward pressure on costs in the years ahead.

May was another busy month for MEGA! First, we attended the New York State Association of Municipal Purchasing Officers Regional Conference in Lake George, allowing us to connect with purchasing officials from municipalities across the state. That same week, we attended the New York State City/County Management Association Conference in Bolton Landing, allowing us to have close conversations with various village and city managers.

MEGA then attended the PERMA Annual Member Conference in Verona and the New York State Association of Counties Finance School in Glens Falls.

All four events provided valuable opportunities to engage with municipal and county officials, discuss the challenges of managing rising and unpredictable energy costs, and share how MEGA supports public entities in navigating today's evolving energy landscape. We appreciate the chance to continue building relationships with public sector officials while staying connected to the priorities shaping local governments across the state.

Follow us on LinkedIn to keep updated on where we have been and where we are going.

Ulster County

This month’s Member Spotlight features Ulster County, a county in the Hudson Valley known for its mountain landscapes, riverfront communities, and year‑round outdoor recreation. From the trails of the Catskills and Shawangunk Mountains to historic locations like Kingston and New Paltz, Ulster County offers a wide range of experiences shaped by both its natural setting and its communities. Discover what makes Ulster County a distinctive part of the Hudson Valley.

As a nonprofit local development corporation, our mission has always been to serve public entities in New York State. For 27 years, MEGA has helped more than 250 members achieve meaningful savings on the supply portion of their energy costs while improving budget stability. Predictable energy costs can support more effective financial planning and help ensure that limited resources remain focused on core municipal priorities.

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MEGA is featured on NYSAC's County Conversations podcast! Click to listen.

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