Energy Planning and Procurement

The OGS Energy Planning and Procurement Group is responsible for the design, oversight, policy development and administration of the centralized procurement of electricity for all large OGS Facilities and large facilities of other state agencies. 

The OGS energy team monitors the latest developments in the regulated and unregulated electric and natural gas markets to provide expert analysis and advise for developing and implementing energy procurement policies and strategies. OGS' goal is to reduce the state's energy expenses while keeping an eye open for possible future economic development opportunities. Read more about our services below. 

As an advisory service to other state agencies, the OGS Energy Planning and Procurement Group performs market evaluations for electric energy costs and advises and directs decisions on energy supplier choices to maximize cost savings. 

OGS aggregates the purchase of electricity for its statewide building portfolio from the New York State Independent System Operator (NYISO). This innovative approach to electricity procurement has yielded significant energy cost savings for the state. In August 2009, OGS' legislative authority to purchase electricity was expanded to allow for OGS to purchase on behalf of other state agencies. OGS offers this service to state facilities in the following service territories:

• National Grid
• New York State Electric and Gas/Rochester Electric and Gas
• Orange & Rockland
• Central Hudson

The program focuses on large Mandatory Hourly Priced (MHP) accounts. This buying arrangement allows customers to pay wholesale prices for electricity supply and avoid certain administrative fees levied by the utility companies. 

OGS administers a contract with the New York Power Authority (NYPA) that allows state agencies in the Con Edison service territory to buy NYPA power directly from OGS. In addition, this contract provides resources for energy efficiency upgrade projects in facilities around the state. 

OGS performs analytical evaluations for state agencies in areas of renewable energy, electric, and natural gas commodity costs and pipeline capacity. 

OGS monitors natural gas market prices to determine cost avoidance opportunities and recommends price triggering strategies to OGS and customer agency management.