Block Bidding for Commercial, Industrial and Municipal Customers
Under the Block Bidding Program, RG&E purchases “blocks” of electricity savings representing reduced electric usage ­ from eligible commercial, industrial and municipal customers or from third parties (aggregators) working with those customers.

RG&E announced the first Block Bidding Request for Proposal (RFP) on February 24, 2010 , and a second RFP on December 9, 2010. When completed, the energy savings measures from these RFPs will deliver approximately 14,500 megawatt hours (mwhs) of energy savings for RG&E.

The Block Bidding Program is a sealed-bid, pay-as-bid auction. The purpose of the program is to create additional ways for customers to achieve energy savings and allow third-party suppliers, working on behalf of host customers, to participate in offering energy saving solutions.

Proposals are required to:

• Exceed a minimum bid size of 100 mwhs of electric savings.
• Only contain energy savings measures that provide permanent and sustainable
  energy savings.
• Include only energy savings that are achieved after announcement of bid award and no later than October 31, 2012.

Energy savings measures receiving funding from other System Benefit Charge funded programs are not eligible for Block Bidding.

Nonresidential customers may seek to work with an aggregator or to serve as an aggregator themselves, if they wish to increase their electricity savings bid to meet or exceed the minimum bid requirement of 100 mwhs.

Successful bidders must:

• Submit all required bid paperwork, which will be identified in the Request for Proposal.
• Achieve electricity savings at the qualifying customer site(s).
• Have their project pass a total resource cost (TRC) test that ensures the project is
  cost-effective.
• Identify the specific project location(s).
• Identify specific measures to be installed. Pre-installation inspections may be required prior to implementing saving measures.

The purchase level of energy is subject to the final results and performance of the previous RFPs and subsequent program goals. RG&E reserves the right to accept or reject bids based on available program resources at the time of bid selection.

To learn more about this Block Bidding program:

• The current Request for Proposal was issued to prospective bidders on August 17, 2011, and is closed at this time to new participants.  The due date for proposals to be submitted in response to this RFP is September 30, 2011.  Parties in receipt of the RFP who have questions about the RFP or the procurement process should contact Karen Jones at 585.771.6004.
• View Frequently Asked Questions about the Block Bidding Program. For general information on the Block Bidding program, call Gary Freeland at 585.794.9182.
• View the New York Standard Approach for Estimation Energy Savings From Energy Efficiency Programs - Residential, Multi-Family, and Commercial/Industrial Measures, October 15, 2010 ("New York Tech Manual").

This program is being offered in accordance with a January 4, 2010, New York State Public Service Commission Order approving Block Bidding programs for RG&E and is funded by the Systems Benefit Charge on nonresidential electricity customers’ bills.