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.
Since the first RFP was issued in February of 2010, NYSEG together with RG&E, have approved approximately $10 million for nonresidential energy efficiency proposals that will save 42 million kwh of electricity. The winning bids represent over 200 projects from more than 70 different customers across the RG&E and NYSEG service areas. (NYSEG projects account for $5 million and 16 million kwh energy savings.)
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 mwhs of electric savings.
- Not exceed a maximum bid size of 4,289 mwhs 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 Block Bidding.
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 mwhs.
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 purchase level of energy is subject to the final results and performance of the previous RFPs and subsequent program goals. NYSEG reserves the right to accept or reject bids based on available program resources at the time of bid selection.
To learn more about this Block Bidding Program:
- The current RFP is closed at this time to new participants; 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 RFP or the procurement process, should contact Rebecca Bethel at 585.771.8142.
- 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 on nonresidential electricity customers’ bills.