In today’s volatile energy market, waiting too long to make a buying decision can be costly—sometimes dramatically so. The “cost of procrastination” is real, and when it comes to electricity supply, timing, strategy, and market awareness can make the difference between budget success and financial strain.
Electricity prices are influenced by a complex web of factors: natural gas markets, weather patterns, grid demand, policy changes, and global energy dynamics. When municipalities delay locking in their electricity supply, they leave themselves vulnerable to sudden price spikes. What might have been a favorable rate one month can climb significantly the next, erasing opportunities for savings and predictability.
A proactive buying strategy can help mitigate this risk. For example, a county, city, town, village, school district, can use a layered purchasing strategy—buying portions of their load over time—to smooth out market volatility. Others may implement trigger-based strategies, where contracts are executed automatically once prices hit a defined target. These approaches shift decision-making from reactionary to strategic, helping organizations stay ahead of the market rather than chase it.
The best strategies also align with broader goals: budget certainty, sustainability targets, and risk tolerance. Engaging with a trusted competitive electricity supplier early—before renewal deadlines or market deadlines approach—ensures that decisions are data-driven rather than deadline-driven.
In short, the cost of procrastination is not just higher prices—it’s lost opportunity. Most local government entities now recognize that electricity is not just an expense to manage, but a strategic asset to plan for. Acting early, with insight and intention, is the best way to keep costs—and surprises—under control, in today’s volatile energy market.
MEGA is the only municipal energy entity in New York State that runs a competitive public bid process to identify the electricity and natural gas suppliers who will best serve its member local governments and schools. As a result of that process, public entities can piggy-back off of MEGA’s contract with the winners of that bidding process: Constellation Energy for electricity and NRG for natural gas. These commodities are still be delivered by the regional utility.
MEGA serves over 235 municipalities, including 27 counties throughout upstate New York. Working with counties, towns, villages, cities, and school districts across virtually all utility territories gives MEGA the market power to bring down energy supply costs and customer overhead.
