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. As with electric Non-Wires Alternative (NWA) projects, these potential NPA projects support New York regulatory and environmental policies including the Climate Leadership and Community Protection Act (CLCPA), those noted in the New York Public Service Commission’s Reforming the Energy Vision (REV) regulatory framework, as well as other New York regulatory proceedings and New York State goals.
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.
Canandaigua NPA RFP
NYSEG’s existing natural gas distribution system serving the Canandaigua, New York area is reaching system capacity which presents a reliability concern. Under peak conditions, the system end-point pressure and the feeder main inlet pressure operate below maximum allowable operating pressure (“MAOP”). This constraint is the result of an increase in the gas load over time which has led to the need for a system upgrade to improve system pressure. To address the reliability concern, a reduction in demand (or addition in supply) of 55 thousand cubic feet per hour (“MCFH”) or 570 therms/hour is needed to improve system pressure.
NYSEG issued the Canandaigua Non-Pipe Alternative (“NPA”) Project Request for Proposal (“RFP”) on July 29, 2022 for resources to avoid the need for construction of the planned Canandaigua Feeder Main Reinforcement Project by reducing existing natural gas usage and/or introducing additional natural gas equivalent supply into the Canandaigua area. NYSEG is encouraging the development and proposal of potential NPA solutions 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 e-mail to NPA@avangrid.com at your earliest convenience. 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 August 12, 2022.
RFP responses will be due on October 21, 2022, by 5:00PM EST.
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 December 2019, NYSEG issued the Lansing Non-Pipe Alternatives (NPA) Request for Proposals (RFP) which requested responses from qualified developers with the capability to deliver innovative solutions to defer or avoid the need for the construction of the planned Lansing/Freeville Reinforcement Gas Pipeline Project, through the reduction of existing natural gas usage and/or the introduction of 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 and NYSEG is currently in contract negotiations with the seven developers selected to implement projects as part of the Lansing NPA portfolio.
Contact us at NPA@avangrid.com.