NYSEG’s NEW BLOCK BIDDING PROGRAM GIVES NONRESIDENTIAL CUSTOMERS
THE OPPORTUNITY TO BE PAID FOR MEETING ENERGY-SAVING GOALS
Rochester, NY, February 24, 2010 – NYSEG said today it will purchase “blocks” of reduced electricity consumption from eligible commercial, industrial and municipal customers or third parties working with those customers to aggregate reduced electricity consumption.
NYSEG plans to purchase up to 8,270 megawatt-hours (mwh) in reduced electricity use. All block bidding proposals must be for at least 100 mwh of reduced electricity use but not more than 8,270 mwh of reduced electricity use starting in 2010 and ending October 31, 2012.
Nonresidential customers may seek to work with an aggregator (or to serve as an aggregator themselves) if they wish to increase their electricity savings bid to meet or exceed the minimum target.
To submit a proposal, customers or aggregators can respond to the company’s request for proposals (RFP). For access to the RFP, interested bidders should visit nyseg.com and click on “Energy Efficiency Incentives” and then on “Block Bidding” to access an online request form.
“We encourage all customers to save energy and increase efficiency,” said Mark Lynch, president of NYSEG and RG&E. “Our block bidding program enables a nonresidential customer to submit a proposal for energy-saving measures and, if the proposal is selected, the customer will receive an incentive for achieving the associated reduced electricity use.”
While NYSEG is looking for innovative ideas, some examples of potential block bidding proposals are:
• A company may have a large project in mind that includes a number of different energy-saving measures such as lighting and heating/ventilating/air conditioning upgrades, and the project doesn't fit neatly into an existing lighting or rebate program. The company could submit a block bidding proposal to help justify the capital outlay needed for the project.
• An energy services company (ESCO) could put together a financing opportunity for projects and submit a block bidding proposal to lower interest rates or provide loan guarantees.
• In order to meet the 100-mwh minimum for reduced electricity use, a third party may submit a block bidding proposal for aggregated projects from a number of customers (lighting retrofits, chiller upgrades, electric heat upgrades, etc.).
Electricity savings must be achieved at the qualifying customers’ sites and each project must pass a total resource cost (TRC) test that ensures that it is cost-effective. Proposals must identify the specific location of each project as well as the specific measures to be installed. Pre-installation inspections may be required prior to implementing savings measures.
To learn more about this program, visit nyseg.com and click on “Energy Efficiency Incentives” or call our Energy Efficiency Hotline at 1.800.995.9525.
This program is being offered in accordance with a January 4, 2010 New York State Public Service Commission Order approving block bidding programs for NYSEG and is funded by the System Benefits Charge on nonresidential electricity customers’ bills.