Block Bidding for Commercial, Industrial and Municipal Customers
Under the Block Bidding Program, NYSEG purchases “blocks” of electricity savings representing reduced electric usage from eligible commercial, industrial and municipal customers or from third parties (aggregators) working with those customers.
NYSEG, together with RG&E, have approved through December 2013 approximately $7 million for nonresidential energy efficiency proposals that will save more than 26 million kilowatt-hours (kWh) of electricity. The winning bids include nearly 160 projects from more than 70 customers across the RG&E and NYSEG service areas.
The Block Bidding Program is a sealed-bid, pay-as-bid auction. The purpose of the program is to create additional ways for customers to achieve energy savings and allow third-party suppliers, working on behalf of host customers, to participate in offering energy-saving solutions.
Proposals are required to:
- Exceed a minimum bid size of 100 megawatt-hours (MWh) of electric savings.
- Not exceed a maximum bid size of 4,289 MWh of electric energy savings.
- Only contain energy savings measures that provide permanent and sustainable
- Include only energy savings that are achieved after announcement of bid award and no later than 12 months after contract effective date.
Energy savings measures receiving funding from other System Benefit Charge (SBC) funded programs are not eligible for the Block Bidding Program.
Nonresidential customers may seek to work with an aggregator or serve as an aggregator themselves if they wish to increase their electricity savings bid to meet or exceed the minimum bid requirement of 100 MWh.
Successful bidders must:
- Submit all required bid paperwork, which will be identified in the Request for Proposal.
- Achieve electricity savings at the qualifying customer site(s).
- Have their project pass a total resource cost (TRC) test that ensures the project is
- Identify the specific project location(s).
- Identify specific measures to be installed. Pre-installation inspections may be required prior to implementing saving measures.
The selection of bids will be subject to the amount of program funds available at the time selections are made. Consideration will also be made of whether the bids support the Company’s ability to reach its PSC mandated goals. Furthermore, the Company reserves the right to accept or reject any and all bids at the sole discretion of the Company.
To learn more about this Block Bidding Program:
- The current NYSEG RFP is closed at this time; however, future RFPs are expected. If you would like to receive an email notification when the announcement for the next RFP is released, please contact us to be added to the Company’s Trade Ally list. Those parties who have questions about the procurement process, should contact Rebecca Bethel at 585.724.8142.
- View Frequently Asked Questions about the Block Bidding Program. For general information on the Block Bidding Program, call Gary Freeland at 585.794.9182.
- View the EEPS Technical Manual documents located near the bottom of the page of the New York State Public Service Commission Energy Efficiency Portfolio Standard website.
The Block Bidding Program is being offered in accordance with a January 4, 2010, New York State Public Service Commission order approving Block Bidding and an October 25, 2011, New York State Public Service Commission order reauthorizing EEPS programs. The Block Bidding Program is funded by the Systems Benefit Charge (SBC) on nonresidential electricity customers’ bills.