Competitive Solutions

The Municipal Electricity and Gas Alliance (MEGA) uses the collective buying power of member counties, local governments, and school districts to secure competitively-priced electricity, natural gas, and renewable power in the state of New York. MEGA’s primary objective is to help local governmental entities minimize the cost of energy through competitive procurements and direct access to energy market expertise.

Competitive Solutions

The Municipal Electricity and Gas Alliance (MEGA) uses the collective buying power of member counties, local governments, and school districts to secure competitively-priced electricity, natural gas, and renewable power in the state of New York. MEGA’s primary objective is to help local governmental entities minimize the cost of energy through competitive procurements and direct access to energy market expertise.

Competitive Solutions

The Municipal Electricity and Gas Alliance (MEGA) uses the collective buying power of member counties, local governments, and school districts to secure competitively-priced electricity, natural gas, and renewable power in the state of New York. MEGA’s primary objective is to help local governmental entities minimize the cost of energy through competitive procurements and direct access to energy market expertise.

Competitive Solutions

The Municipal Electricity and Gas Alliance (MEGA) uses the collective buying power of member counties, local governments, and school districts to secure competitively-priced electricity, natural gas, and renewable power in the state of New York. MEGA’s primary objective is to help local governmental entities minimize the cost of energy through competitive procurements and direct access to energy market expertise.

Energy Procurement

MEGA does NOT buy or sell electricity or natural gas. We are an aggregator. We combine the power load of customers in each utility service area and go to the open market to seek bids—in full compliance with New York State’s public bidding regulations. The successful bidder, Constellation Energy for electricity and NRG for natural gas, is then authorized to offer you a contract for electricity, natural gas or renewable power. The power commodity—electricity or natural gas—is still delivered by one of the major utilities which is responsible for delivery of service and maintenance of lines.

Our bids cover over 500 million kWh/yr of electricity and 10 million therms of natural gas. The result is more competition among suppliers resulting in lower costs for MEGA participants.

kWh/yr of electricity covered by bids

therms of natural gas covered by bids

No Hidden Costs

There is never any cost associated with participation in MEGA procurement bids. There are no fees to join and no annual membership dues. Participants pay only for the energy they use, purchased through MEGA’s designated-provider ESCO for electricity and/or natural gas. MEGA receives a small fee, $0.0015 per KWh of electricity and $0.012 per therm of natural gas, from the energy suppliers, specified in our bids and detailed in the pricing package we provide to you. As a nonprofit, we use the fees for administrative costs and consultant services designed to benefit our members, and believe they are among the lowest in the marketplace.

Electricity

MEGA currently has active programs in National Grid, NYSEG, Central Hudson, and RG&E. If you do not see your utility territory listed, please reach out to us.

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Natural Gas

MEGA currently has active natural gas programs in the National Grid, NYSEG, Central Hudson, RG&E & National Fuel Gas territories. If you do not see your utility territory listed, please reach out to us.

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Renewables

MEGA can help its members navigate the options and opportunities of renewable energy projects such as small hydroelectric projects, community solar or behind the meter solar programs. Long-term fixed-price contracts can help stabilize energy budgets, support the development of renewable energy, and preserve savings in a volatile energy market.
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What is MEGA?

The Municipal Electric and Gas Alliance is a not-for-profit Local Development Corporation governed by a Board of Directors elected yearly from corporate membership. As of January 2022, MEGA serves as procurement manager for more than 250 municipal entities’ electricity, natural gas and renewable power supplies.

How is MEGA able to bid energy supply pricing and assure customers of the lowest price in the future?

The price of energy is set every day in the marketplace. For electricity, the New York Independent System Operator runs a 24/7 auction to determine pricing in 11 load zones in the state. For natural gas, the most transparent pricing is set on the New York Mercantile Exchange (NYMEX). For both commodities, utilities and suppliers alike must add in additional costs, such as capacity, transmission, ancillary expenses, and supplier operating expenses before the consumer’s price is set. MEGA’s competitive bid process aggregates its participants’ energy usage to procure the most competitive bids in the marketplace with the lowest supplier operating expenses.  This process assures MEGA participants that they are getting the best overall price available in the market. 

What is the benefit of MEGA’s group buying approach?
MEGA’s business model allows any potential participant to request an offer at no cost or obligation. MEGA participants pay only for the energy they use. There is no subscription cost or risk tied to the performance of other customers. MEGA’s buying power has increased over the years. Today, MEGA represents a significant share of all supplier-served customer demand in New York State (nearly 2% of all electric usage served by suppliers as of 2015 is in the utilities where MEGA is active). For this reason, suppliers compete more aggressively to win the bids, leading to reduced energy costs for MEGA’s participants. Suppliers’ customer service and sales costs are reduced through MEGA’s efforts and size, and the savings are passed through to consumers.
How is MEGA able to offer its programs over all of New York?

All bids benefiting MEGA public agency customers are secured through public, competitive bid process following state law. New York State General Municipal Law Section 103(3) authorizes political subdivisions (including municipal corporations and school districts), to purchase materials or services through any county in the State, subject to rules established pursuant to County Law Section 408-a(2). In accord with these laws, counties issuing bids on behalf of MEGA have made their bids for electric and natural gas supply programs, renewable energy and other services, open to all municipal entities in the State. In addition, Section 119-o of General Municipal Law allows municipalities and school districts to join together to perform any of their respective functions or duties, which includes purchasing gas and electricity. The effectiveness of this cooperative purchasing approach, pursuant to existing State Law, is indicated by the fact that MEGA presently serves more than 250 municipal entities, including 27 county governments. For the renewable energy programs, Article 9 of the Energy Law was referenced for the competitive procurement process, with the “piggybacking” provisions of GML allowing all municipalities and school districts to take part.

Does MEGA work with more than one supplier?
MEGA has awarded its programs to the electricity and natural gas suppliers based on which companies submitted the low qualified bid for a given commodity in a given utility territory. MEGA and its suppliers work closely to make the programs successful and responsive to customer requirements, but MEGA has no obligation to a supplier beyond the term of its Program Agreement.
How does a customer get an offer through the MEGA program?
Account information can be submitted

  • by visiting the Get Started page
  • through regular mail to MEGA, P.O. Box 181, Delmar, NY 12054
  • using the form on the MEGA flyer
  • through its consultants, EnergyNext, Inc.

There is no cost or obligation. An energy supply proposal will be provided by the appropriate MEGA supplier. Questions may be directed to MEGA staff at 607.376.7200.

Technical Assistance

MEGA provides technical assistance to member municipalities. This can include insight on energy markets or assistance with researching energy issues. For example, we are able to assist our members to assess the initial feasibility of a concept or a project under consideration.

We also strive to surface opportunities for our members related to market dynamics, policy goals, and/or funding availability. These services are provided in conjunction with our our energy consultants, EnergyNext, Inc.

Resources

Several state agencies and authorities will play an important role in shaping the future of New York State’s energy landscape. From overseeing regulatory frameworks to developing programs for consumers and local governments, these entities will play integral roles in advancing renewable energy adoption, mitigating environmental impacts, and ensuring energy accessibility for all New Yorkers. MEGA understands the distinct roles and responsibilities of key state-level energy organizationsand and how their collaborative efforts are driving New York towards a cleaner, more sustainable energy future. Let us help you navigate the New York energy landscape.

NYS Energy Research & Development Authority

A key player in advancing energy innovation and sustainability, and initiatives to address climate change.

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Department of Environmental Conservation

The DEC serves as the primary regulatory agency tasked with protecting and enhancing the state’s natural resources.

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The New York Power Authority

The NYPA is one of the largest state-owned electric utilities in the nation, operating and maintaining various power generation facilities across the state.

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Public Service Commission

The New York Public Service Commission is the state’s regulatory body responsible for overseeing utility companies operating within the state.

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NYS Independent System Operator

NYISO is a private nonprofit organization responsible for operating the electricity grid and wholesale electricity markets within the state of New York.

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Get Started Today!

Any New York municipality, school district, business, or not-for-profit organization can become part of the MEGA program. MEGA serves a wide range of entities, from the largest counties to very small local libraries and similar organizations. If you have a building or pay your utility bills, you can participate in MEGA.

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