Rockland to save $2.5 million on electricity costs in next two years
County Executive C. Scott Vanderhoef announced today that Rockland, in partnership with the New York State Association of Counties
(NYSAC), has joined the
Municipal Electric and Gas Alliance (MEGA) to save over $2.5 million on electricity costs in the next two years.
MEGA is a county-based organization designed to help local governments control their energy costs. MEGA serves municipalities of all types as well as School Districts, BOCES, Water Districts, Sewer Districts and Fire Districts. MEGA is an aggregator that combines the power load of customers and goes to the open market to seek prices that are lower than individual customers could achieve by purchasing electricity on their own. While MEGA was formed in 1998 in upstate New York, it only recently began servicing the Hudson Valley and Orange and Rockland service area.
The County of Rockland, the Rockland County Sewer District #1, Rockland Community College and the Rockland County Solid Waste Management are part of the consortium that joined together for the savings, Vanderhoef said. “Every dollar we can save helps, especially in this economy, when utility costs are skyrocketing,” Vanderhoef said. “We’re pleased to become part of this savings consortium with NYSAC, and we’re proud of the efforts of our Purchasing Division to help save taxpayer dollars.”
County Purchasing Director Paul Brennan noted that three variables, including delivery cost, demand cost and electricity cost, affect the total cost of electricity. The County’s new contract with NYSEG Solutions/Energetix covers the actual cost of electricity, while Orange and Rockland will still bill delivery and demand costs. Actual costs will still be tracked on a monthly basis by the County’s Purchasing Division.
The County could save up to $966,678, the Sewer District up to $1,050,212, Rockland Community College up to $435,552 and the Solid Waste Management Authority up to $120,126 over the contract’s two-year term, Brennan said. “The new contract price is $.0276 less per kilowatt hour than the average price over the past twelve months. With a combined demand of over 47 million kilowatt hours annually, the savings can add up quickly,” Brennan said.
The MEGA program through NYSAC has provided increased savings to its members over the past year. One of the reasons for the additional savings is the growth of the alliance. In the past 18 months, 15 additional counties (now totaling 28 counties) have joined the 8 cities, 15 towns and villages and many school districts enrolled in MEGA.
"County Executive Vanderhoef's efforts to improve efficiencies and reduce the cost of county government demonstrate his innovative leadership," said Stephen J. Acquario, executive director of the New York State Association of Counties. "Taking advantage of the collective purchasing power to buy electricity and gas-one of the largest operational costs for governments, businesses and families-will help lower utility costs for Rockland County and save taxpayer dollars."
Brennan said the County’s Purchasing Division will schedule an informational meeting on MEGA for municipalities located in Rockland County.
MEGA is a county-based organization designed to help local governments control their energy costs. MEGA serves municipalities of all types as well as School Districts, BOCES, Water Districts, Sewer Districts and Fire Districts. MEGA is an aggregator that combines the power load of customers and goes to the open market to seek prices that are lower than individual customers could achieve by purchasing electricity on their own. While MEGA was formed in 1998 in upstate New York, it only recently began servicing the Hudson Valley and Orange and Rockland service area.
The County of Rockland, the Rockland County Sewer District #1, Rockland Community College and the Rockland County Solid Waste Management are part of the consortium that joined together for the savings, Vanderhoef said. “Every dollar we can save helps, especially in this economy, when utility costs are skyrocketing,” Vanderhoef said. “We’re pleased to become part of this savings consortium with NYSAC, and we’re proud of the efforts of our Purchasing Division to help save taxpayer dollars.”
County Purchasing Director Paul Brennan noted that three variables, including delivery cost, demand cost and electricity cost, affect the total cost of electricity. The County’s new contract with NYSEG Solutions/Energetix covers the actual cost of electricity, while Orange and Rockland will still bill delivery and demand costs. Actual costs will still be tracked on a monthly basis by the County’s Purchasing Division.
The County could save up to $966,678, the Sewer District up to $1,050,212, Rockland Community College up to $435,552 and the Solid Waste Management Authority up to $120,126 over the contract’s two-year term, Brennan said. “The new contract price is $.0276 less per kilowatt hour than the average price over the past twelve months. With a combined demand of over 47 million kilowatt hours annually, the savings can add up quickly,” Brennan said.
The MEGA program through NYSAC has provided increased savings to its members over the past year. One of the reasons for the additional savings is the growth of the alliance. In the past 18 months, 15 additional counties (now totaling 28 counties) have joined the 8 cities, 15 towns and villages and many school districts enrolled in MEGA.
"County Executive Vanderhoef's efforts to improve efficiencies and reduce the cost of county government demonstrate his innovative leadership," said Stephen J. Acquario, executive director of the New York State Association of Counties. "Taking advantage of the collective purchasing power to buy electricity and gas-one of the largest operational costs for governments, businesses and families-will help lower utility costs for Rockland County and save taxpayer dollars."
Brennan said the County’s Purchasing Division will schedule an informational meeting on MEGA for municipalities located in Rockland County.
