Table of Contents

A New Energy Shock: What the Saudi Pipeline Attack Means for New York

Just as global energy markets were struggling to absorb months of Strait of Hormuz disruptions, a new shock arrived. On September 11, drone strikes knocked Saudi Arabia's critical East-West oil pipeline offline, removing up to 5 million barrels of oil per day from global markets. Oil prices surged back above $100 per barrel in response, with Brent crude approaching $110. Combined with the ongoing Hormuz crisis, the two disruptions together now affect roughly 39% of global oil and gas trade.

For upstate New York, the concern is direct: when global energy prices rise, the cost of natural gas flowing through regional pipelines rises with them. Gas and electricity prices in New York move closely together because natural gas fuels roughly half the state's power generation, and higher gas costs translate almost directly into higher electric bills. With heating season just weeks away and pipeline capacity already stretched during winter demand peaks, the timing of this new disruption adds real risk to the months ahead.

For MEGA participants, this is an important moment to review your energy agreements to ensure price protection. With two major global supply disruptions now active simultaneously and winter approaching, energy costs are likely to face significant upward pressure. Securing supply agreements as soon as possible is the most effective step available to protect against what could be a very expensive heating season.



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

New York State Moves to Track Utility Affordability

On September 17, the Public Service Commission opened a proceeding to create a new Energy Affordability Index, a consistent measure of how affordable electric and gas service is across New York. The index supports the State's goal of keeping household utility costs below 6% of income (3% for electric, 3% for gas). Under the FY27 State Budget, a utility that exceeds the target may be subject to an independent Affordability Monitor that reviews its cost drivers, and the index will also be tied to executive compensation incentives. Utilities must calculate the index for upcoming rate cases and submit their first annual affordability filings by February 1, 2027. The Commission's first annual affordability report is due by July 1, 2027.

MEGA Partners with the New York State Animal Protection Federation

MEGA has partnered with the New York State Animal Protection Federation (NYSAPF) to make our resources available to animal shelters and humane societies throughout New York.

Through this partnership, eligible organizations will have access to MEGA's aggregated purchasing program and energy market expertise, helping them better manage electricity and natural gas supply costs while maintaining focus on their important mission of caring for animals and serving their communities. We look forward to working with NYSAPF members and expanding MEGA's support of New York's nonprofit and public-serving organizations.

Earlier this year, MEGA participated in a NYSAPF-hosted webinar introducing the MEGA program, explaining how our procurement process works, and outlining how shelters and humane societies can benefit from participation. Click below to view the full recording.

Contact us at info@megaenergy.org or visit https://megaenergy.org/join-mega/ to learn how MEGA can help your organization.

The Cost of Procrastination: Electricity Procurement Buying Strategies for Local Government Entities in New York

By MEGA

With a number of MEGA members approaching contract expirations in the months ahead, now is an important time to start evaluating your renewal options.

Energy markets shift quickly, and pricing that's competitive today may not be available next month, as weather, fuel costs, infrastructure constraints, and global events all play a role in shaping rates.

Renewing early gives your organization budget certainty and helps protect against volatility down the road. Waiting until the last minute narrows your options and increases the risk of locking in at an unfavorable rate.

MEGA's aggregation model and publicly bid procurement process are designed to help members secure competitive pricing while staying fully compliant with New York State procurement requirements.

Want to understand just how much delay can cost? Read our article, "The Cost of Procrastination: Electricity Procurement Buying Strategies for Local Government Entities in New York," for a closer look at how market timing affects your bottom line.

Contact MEGA at info@megaenergy.org to discuss your renewal options and current market conditions.

This month, MEGA will be holding our third Board of Directors meeting of the year on September 27th at the Marriott Syracuse Downtown, where the Board will gather to discuss MEGA's organizational priorities and ongoing initiatives. We thank our board members for their continued guidance and commitment to MEGA's mission.

Following the Board Meeting, MEGA will attend the New York State Association of Counties (NYSAC) Fall Seminar in Syracuse from September 28-29. If you'll be attending, be sure to stop by and visit us at Booth #2! We look forward to connecting with county leaders from across the state, discussing the energy-related challenges and opportunities facing New York's communities, and sharing how MEGA can help public entities better manage their energy costs and procurement.

Jefferson County

This month’s Member Spotlight features Jefferson County, home to some of New York’s most recognizable waterfront destinations. From the Thousand Islands and Boldt Castle to the historic communities of Watertown and Sackets Harbor, the county offers a unique blend of recreation, history, and maritime heritage. Learn more about the places, landmarks, and traditions that make Jefferson County a distinctive part of northern New York.

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.

Our Partners:

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

Want to learn more about MEGA? Visit our website or check us out on our socials!