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Albany County approves 8-month extension of electricity supply contract, explores demand-response revenue
Summary
The county legislature unanimously authorized an eight-month extension of its electricity supply contract with NRG (formerly Direct Energy) to allow newly acquired properties to be included in future bids and to evaluate enrollment of eligible facilities in a demand-response program that could generate revenue.
Albany County legislators unanimously approved an eight-month extension to the countyelectricity supply contract with NRG (formerly Direct Energy) to give staff time to include recently purchased county properties in upcoming bids and to evaluate participation in a demand-response program.
Direct Energy Business Executive Director Gaudio told legislators the extension would run from Aug. 1, 2026, through March 31, 2027, and would give the county time to assess newly acquired properties at the St. Rose campus and the Aquatic Center for inclusion in future procurement. "We're requesting an 8-month extension to our latest supply contract with NRG, formerly known as Direct Energy," Gaudio said, adding that the extension would let staff avoid month-to-month pricing during volatile winter months.
Gaudio also described a demand-response program NRG offers that would pay the county when facilities can temporarily shed electric load during grid peak events. He said facilities with backup generators or the right infrastructure could be enrolled and that the extension would allow staff to evaluate which sites to include. "If there's a high demand day on the grid, they would reach out to the county to see if we have any availability to shed load at any of our facilities," Gaudio said, describing the program as a guaranteed revenue stream when a facility can switch to backup power.
Legislators pressed for specifics about which county sites would qualify and whether the program would disrupt operations at critical facilities. Gaudio acknowledged those details must be evaluated on a facility-by-facility basis and said facilities could be enrolled later as projects (for example HVAC replacements or metering upgrades) make sites eligible. Members also discussed battery storage as an alternative or complement to on-site generation; Gaudio noted some treatment-plant discussions have focused on two-hour storage windows and that battery costs are falling.
The legislature made and seconded a motion to approve the extension; the item carried unanimously. Staff will evaluate candidate facilities, report back on feasibility and risks, and return with enrollment recommendations or project proposals if specific capital investments are required.
