The 2023 NYSEG auction was held on June 28 and the contract was awarded to Direct Energy. Thank you to all participating bidders.
The links to the bidding documentation as well as clarifications issued during the process will be posted on this page.
RFP Clarification or Corrections
ESA Template – RFP redline – Accepted corrections/clarifications are be reflected here.
Contract Execution
The commitment by all parties is still at award, and bidders should plan on same-day hedging. Execution just refers to the physical act of getting the municipalities’ to sign the ESA. This is not a huge task with NYSEG, but still we are allowing a few days. There is no deviation from previous bids in this regard.
Trailing average cap on Standard product pricing
As bidders may be aware, CCAs are now subject to the same rules that had already been in place for individual ESCO contracts, of which the rule that a Standard supply product offering should be no more than 5% over the trailing utility average. That means in effect that there is a second “price-not-to-exceed”, set by the State, applying to a Standard offering only.
In NYSEG, based on the pricing we are seeing now, we assume that bidders will not run into that cap –
| [thru 3/31/23] | 12 mo avg | +5% | Round up |
| Residential | 12.3838 | 13.00299 | 13.003 |
| Standard | 12.7033 | 13.33847 | 13.339 |
Newly Eligible refresh at new contract launch
NYSEG will not have another refresh under the current contract. The bidders should expect the first refresh to occur at launch.
ESA Section 7.2
We were asked what the intent was in 7.2
“The Parties acknowledge that on May 19, 2023, DPS issued a Proposal for Modification to Outreach and Education Requirements in PSC Case 14-M-0224 (the “DPS Outreach and Education Proposal”). In the event that the DPS Outreach and Education Proposal is finalized or other changes are made to the CCA Orders after the Effective Date that materially increase Program Manager’s expenses in administering the Program during the Term, such changes shall be deemed a Regulatory Event a defined herein, such that Program Manager may recover such increased costs in the form of an increased Program Manager Fee that may be allocated to and collected from Participating Customers on a per kWh basis through applicable monthly invoice(s).
The reason for this addition to the ESA is because at this time there are proposals from the DPS which are yet to go through SAPA and may yet change, but include significant additional outreach requirements that would result in increased costs to SW as administrator which we would need to recover. These could include advertising, mailings and/or additional in-person meetings. For us to call on this, the change should be identifiable as a discrete change from previous requirements.
CCA Framework Modification Order Section 18.12
We were asked about whether motivation for the highlighted addition to the original Advertising clause was coming from the January CCA order.
18.12 ADVERTISING LIMITATIONS
Competitive Supplier and Municipality agree not to use, whether directly or through any of its Associated Entities, the name of the other Party, or make any reference to the other Party in any advertising or other information to be distributed publicly for marketing or educational purposes, unless the other Party expressly agrees to such usage; provided, however, that this prohibition shall not prevent Competitive Supplier or Municipality from identifying the other Party as required under the CCA Orders. Any proposed use of the name of a Party must be submitted in writing for agreement and prior written approval which may be withdrawn through a notice in writing at any time. The Municipality acknowledges that the Competitive Supplier’s corporate affiliates own the exclusive right to the trademarked logo and trade name used by Competitive Supplier. No right, license or interest in this trademark and/or
Answer: Clearly there are times when we have to say who the supplier is, even under the original orders – in the opt-out letter, when we do information sessions about the contract etc. The clause as written did not acknowledge that (or worse, wants us to check in every time we head out the door to present). The new orders have been helpful in clarifying a number of things, but, having clarified, they also imply that we need to take additional care to adhere to the guidelines, and that would include those instances where we are obliged to be sharing the name of the supplier. We understand the original intent of this clause to be to prohibit us from using the supplier name/brand widely for things outside of these normal contract operations, piggy-backing on it for non-related, claiming partnership, associating the supplier with things that they have not agreed to or have some contractual relation to etc.
6/27/2023 – ESA redline updated with a number of technical corrections, addition of 100% renewable product as an opt-in option.
Downloads
Click here for the Westchester Power 2023 NYSEG Territory RFP
Click here for the 2023 NYSEG Territory ESA Template
Click here for the Initial CCA Framework Order
Click here for the CCA Framework Modification Order
Click here for the CCA Program Rules
Click here for the Bedford MOU
Click here for the Lewisboro MOU
Click here for the North Salem MOU
Click here for the Pound Ridge MOU
Click here for the Somers MOU
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