Non-Pipe Alternatives

Non-Pipe Alternatives

Maintaining Reliable and Affordable Energy Choices for Customers

Non-Pipe Alternatives (“NPA”) utilize third party solutions to defer or avoid certain traditional natural gas capital projects (i.e., “pipes”) that are needed to address natural gas system reliability needs. We are committed to considering NPA solutions as substitutes for traditional gas capital projects where and when they are appropriate and cost-effective.

 

Strategy

We seek to implement a portfolio of NPA solutions which are cost effective for customers, provide reliable alternatives to traditional natural gas capital projects, and reflect full cost recovery and earnings opportunities for our Companies, while we comply with regulatory directives, state environmental policy, and learn from working cooperatively with other utilities and stakeholders. NPA solutions are innovative and include but are not limited to gas energy efficiency improvements, gas demand response programs, beneficial electrification (which may include a variety of heat pump technologies as well as other solutions), or the introduction of additional natural gas equivalent supply (in various forms of energy).

 

Project Selection and Process

As available technologies, regulatory requirements and state environmental policies mature, we will review identified natural gas system reliability needs and the traditional natural gas capital projects for opportunities to defer or avoid spending on those projects through NPA solutions. NPA resources needed for large scale projects (i.e., those projects which are projected to cost more than $2M) will be procured through a competitive solicitation process and evaluated using an accepted benefit cost analysis framework which utilizes a Societal Cost Test. Small scale projects, (i.e. those that are $2M or less) may be procured using a streamlined procurement and benefit cost analysis process in order to shorten the project timeline.

 

Project Opportunities

Goshen System NPA RFP

The Goshen System is part of NYSEG’s natural gas distribution network, generally located in the Village of Goshen in Orange County. It is supplied through two (2) Points of Delivery (PODs), operating at different pressures. The system has been identified as a vulnerable location, with limited supply conditions that are most evident during peak winter demand periods.

The Goshen POD, an essential delivery point within the system, has experienced recurring capacity limitations. At Design Day conditions, the Goshen system operates at approximately 68% of its contractual gas supply obligations. To preserve system reliability and meet delivery obligations, NYSEG must either reduce demand or introduce up to 100 thousand cubic feet per hour (MCFH) of additional supply into the system.

As of October 30, 2025, NYSEG has issued the Goshen System Non-Pipe Alternative (“NPA”) Project Request for Proposal (“RFP”) for resources to avoid the need for the construction of the planned Goshen System Semi-Permanent LNG Tap by reducing existing natural gas usage in the area served by the Goshen POD. NYSEG is encouraging the development and proposal of potential NPA solutions that reduce natural gas demand and/or provide system relief, through a wide market audience, seeking the best and most innovative responses to this RFP to accomplish these objectives. NYSEG will evaluate the results of this RFP to select cost-effective solution(s) that would meet the identified need, either individually or collectively.

The proposed NPA solution(s) must address NYSEG’s responsibility to provide safe and reliable service at reasonable costs and in an environmentally sound manner.

To indicate your desire to participate in this RFP opportunity, please respond via email to NPA@avangrid.com at your earliest convenience, referencing Goshen RFP. Upon NYSEG’s receipt of a respondent’s interest, NYSEG will provide the respondent with details regarding the RFP pre-bid teleconference, which is scheduled for November 12, 2025.

RFP responses will be due on January 28, 2026, by 5:00 p.m. EST.

 

RFP Documents

 

Current Projects

Lansing Non-Pipe Alternatives Portfolio of Projects

Over the past several years, NYSEG’s Ithaca Division has experienced significant growth on its natural gas distribution system which has led to lower than acceptable delivery pressures during peak conditions in the Lansing, New York area. In response,  NYSEG issued the Lansing Non-Pipe Alternatives (NPA) Request for Proposals (RFP) in December 2019, seeking innovative solutions from qualified developers to defer or avoid the need for the construction of the planned Lansing/Freeville Reinforcement Gas Pipeline Project The RFP encouraged solutions focused on reducing existing natural gas usage and/or the introducing  additional natural gas equivalent supply (in various forms of energy) into the Lansing area. Proposed NPA solution(s) were required to address NYSEG’s responsibility to provide safe and reliable service at reasonable costs and in an environmentally sound manner. RFP responses were due in March 2020. 

Following an in-depth analysis of the sixteen proposals received, NYSEG filed the ‘Petition for Approval of Non-Pipe Alternatives’ with the New York Public Service Commission (NYPSC) in August 2020 proposing a portfolio of seven NPA projects in the Lansing area. 

In June 2021, the NYPSC issued a One-Commissioner ‘Order Approving Petition for Non-Pipe Alternative Projects, With Modifications.’ This order was confirmed in July 2021.  

To date, two projects have been completed, and three additional projects are ongoing. 

 

Completed Phases: 

A non-residential building has implemented a ground-source heat pump system, a water-source heat pump, and an electric heater within the mechanical room, as well as other efficiency and air sealing measures. This project has successfully eliminated natural gas consumption from the facility, resulting in a total reduction of 1.06 MFC/H. Additionally, these efficiency measures are projected to decrease overall electricity consumption. 

A public authority building has completed upgrades to their facility. They replaced the outdated and inefficient boilers, water heater, and rooftop units with high-efficiency boilers and new heat registers in the classrooms. This initiative resulted in a total BTU reduction of 2,632,000. Following the completion of a measurement and verification test, the observed hourly demand reduction was 2.93 MCF/H. 

 

On going: 

 

Residential Heat Pumps: 

Residential incentives include an energy audit, home performance improvements, heat pump water heaters, air source and ground source heat pumps. Visit Home - Earth Sensitive Solutions, LLC to learn more about this program! 

 

Community Ground Source Heat Pump:  

The installation of a community loop ground source heat pump project along with complimentary energy efficiency solutions for a specific neighborhood. 

Community outreach phase begininng in 2026. 

 

Education & Outreach Program: 

This project will provide an educational program within the local schools and a community-based outreach program, both to further the goals of the Lansing NPA Portfolio program including increasing awareness and attracting participants to the other projects within the NPA portfolio. Visit Cornell Cooperative Extension | Lansing Non-Pipes Alternatives to learn more about this program!  

 

 

Associated Documents

Additional Questions?

Contact us at NPA@avangrid.com.