Non Pipe Alternatives
Maintaining Reliable and Affordable Energy Choices for Customers
Non-Pipe Alternatives (“NPA”) utilize third party solutions to defer or avoid certain traditional natural gas capital projects (i.e., “pipes”) that are needed to address natural gas system reliability needs. We are committed to considering NPA solutions as substitutes for traditional gas capital projects where and when they are appropriate and cost-effective. As with electric Non-Wires Alternative (NWA) projects, these potential NPA projects support New York regulatory and environmental policies including the Climate Leadership and Community Protection Act (CLCPA), those noted in the New York Public Service Commission’s Reforming the Energy Vision (REV) regulatory framework, as well as other New York regulatory proceedings and New York State goals.
Strategy
We seek to implement a portfolio of NPA solutions which are cost effective for customers, provide reliable alternatives to traditional natural gas capital projects, and reflect full cost recovery and earnings opportunities for our Companies, while we comply with regulatory directives, state environmental policy, and learn from working cooperatively with other utilities and stakeholders. NPA solutions are innovative and include but are not limited to gas energy efficiency improvements, gas demand response programs, beneficial electrification (which may include a variety of heat pump technologies as well as other solutions), or the introduction of additional natural gas equivalent supply (in various forms of energy).
Project Selection and Process
As available technologies, regulatory requirements and state environmental policies mature, we will review identified natural gas system reliability needs and the traditional natural gas capital projects for opportunities to defer or avoid spending on those projects through NPA solutions. NPA resources needed for large scale projects (i.e., those projects which are projected to cost more than $2M) will be procured through a competitive solicitation process and evaluated using an accepted benefit cost analysis framework which utilizes a Societal Cost Test. Small scale projects, (i.e. those that are $2M or less) may be procured using a streamlined procurement and benefit cost analysis process in order to shorten the project timeline.
Project Opportunities
MF60 Southeast System NPA RFP
RG&E’s existing natural gas distribution system serving the Pittsford, Perinton, Rush, Mendon, Victor and Farmington, New York areas is reaching system capacity which presents a reliability concern. Under peak conditions, the system end-point pressure operates below maximum allowable operating pressure (“MAOP”). The low pressure is a result of an increase in the gas load over time which has led to the need for a system upgrade to increase system pressure. To address the reliability concerns and system pressure to the Mendon, Victor, and Farmington communities, this multiphase system improvement and reliability project will require a total reduction in demand (or addition in supply) of 140 thousand cubic feet per hour (“MCFH”) or 1452 therms/hour over two phases: phase 1 requires 120 MCFH or 1244 therms/ hour; and phase 3 requires 20 MCFH or 207 therms/hour.
As of November 17, 2023, RG&E has issued the MF60 Southeast System Non-Pipe Alternative (“NPA”) Project Request for Proposal (“RFP”) for resources to avoid the need for construction of the planned multiphase MF60 Southeast System Improvements project by reducing existing natural gas usage and/or introducing additional natural gas equivalent supply into the areas served by the MF60 Southeast System. RG&E is encouraging the development and proposal of potential NPA solutions through a wide market audience, seeking the best and most innovative responses to this RFP to accomplish these objectives. RG&E will evaluate the results of this RFP to select cost-effective solution(s) that would meet the identified need, either individually or collectively.
The proposed NPA solution(s) must address RG&E’s responsibility to provide safe and reliable service at reasonable costs and in an environmentally sound manner.
To indicate your desire to participate in this RFP opportunity, please respond via email to NPA@avangrid.com at your earliest convenience. Upon RG&E’s receipt of a respondent’s interest, RG&E will provide the respondent with details regarding the RFP pre-bid teleconference, which is scheduled for December 8, 2023.
RFP responses will be due on February 23, 2024, by 5 p.m. EST.
RFP Documents
- RG&E MF60 Southeast NPA Attachment A - Definitions
- RG&E MF60 Southeast NPA Attachment B - Customer Counts by Street
- RG&E MF60 Southeast NPA Attachment C - Confidentiality Agreement
- RG&E MF60 Southeast NPA Attachment D - Bidder Response Template
- RG&E MF60 Southeast NPA Attachment E - Third Party Lite Assessment
- RG&E MF60 Southeast NPA RFP
- RG&E MF60 Southeast NPA Attachment F - Data Security and Cyber Insurance
- RG&E MF60 Southeast NPA Leter of Intent
Current Projects
There are no current projects at this time.
Associated Documents
- Petition for Approval of Non-Pipe Alternatives
- One Commissioner Order Approving Petition for Non-Pipe Alternative Projects, with Modifications
Additional Questions?
Contact us at NPA@avangrid.com.