MINUTES OF THE REGULAR MEETING OF THE

POWER AUTHORITY OF THE STATE OF NEW YORK

 

June 27, 2006

 

 

Table of Contents

 

                Subject                                                                                                           

 

1.              Minutes of the Regular Meeting held on May 23, 2006                                          

2.              Financial Reports for the Five Months Ending May 31, 2006 , Exhibit ‘2-A’

3.              Report from the President and Chief Executive Officer                 

4.              Allocation of 1,500 kW of Hydro Power Resolution, Exhibits ‘4-A;’ ‘4-A1;’ ‘4-B;’ ‘4B-1’ – ‘4-B2’

 

5.              Power for Jobs Program – Extended Benefits Resolution   ‘5-A;’ ‘5-B1’ –   ‘5-B2’

 

6.              Transfers of Industrial Power Resolution
           

7.              Delaware County Electric Cooperative Increase in Retail Rates – Notice of Adoption  Resolution, Exhibits  ‘7-A’ 7B, ‘7-C’

 

8.              Resolution – Charles Lipsky

9.              Informational Item: Disposal of B-G Step-Up Transformer Resolution

 

10.           Funding for Energy Efficiency Measures and Fuel  Cells at the Port Authority of New York and New Jersey Freedom Tower Building           Resolution

 

11.           Motion to Conduct an Executive Session                                                                                                                                                                                                                                                               

12.           Motion to Resume Meeting in Open Session    

13.           Niagara Power Project – Authorization of Erie County/ City of Buffalo Relicensing Settlement Agreement and Filing of Supplement to Offer of Settlement Resolution

 

14.           Approval of Hedge Transaction Authority for 2007 Long-Term Energy Supply Agreements with New York City Governmental Customers

            Resolution

15.           Procurement (Services) Contracts – Business Units  and Facilities – Awards Resolution. Exhibits ‘15-A’             

           

16.           Procurement (Services) Contracts – Business Units and Facilities – Extensions and Approval of  Additional Funding  Resolution, Exhibit            ‘16-A’

 

17.           Next Meeting                               

Closing                                                  

 

Minutes of the Regular Meeting of the Power Authority of the State of New York held at the Clarence D. Rappleyea Building at 11:10 a.m.

 

Present:                  Frank S. McCullough, Jr., Chairman

                                Michael J. Townsend, Vice Chairman

                                Elise M. Cusack, Trustee   

                                Robert E. Moses, Trustee

                                Thomas W. Scozzafava, Trustee

                                Leonard N. Spano, Trustee

 

                                Joseph J. Seymour, Trustee – Excused

------------------------------------------------------------------------------------------------------------------------

Timothy S. Carey                                 President and Chief Executive Officer

Joseph Del Sindaco                             Executive Vice President and Chief Financial Officer

Thomas J. Kelly                                    Executive Vice President and General Counsel

Angelo S. Esposito                              Senior Vice President – Energy Services and Technology

Louise M. Morman                              Senior Vice President – Marketing, Economic Development and Supply Planning

Brian Vattimo                                        Senior Vice President – Public and Governmental Affairs

Edward A. Welz                                   Senior Vice President and Chief Engineer – Power Generation

Anne B. Cahill                                      Corporate Secretary

Joseph J. Carline                                  Assistant General Counsel – Transmission

Thomas P. Antenucci                          Vice President – Project Management

Richard J. Ardolino                              Vice President – Engineering

Arnold M. Bellis                                   Vice President – Controller

Robert J. Deasy                                    Vice President – Energy Resource Management

John M. Hoff                                        Vice President – Procurement and Real Estate

Donald A. Russak                                Vice President – Finance

William V. Slade                                   Vice President – Environmental Management

Tom H. Warmath                                  Vice President and Chief Risk Officer

James H. Yates                                     Vice President – Major Account – Marketing and Economic Development

Michael E. Brady                                  Treasurer

Dennis T. Eccleston                            Chief Information Officer

William Helmer                                     Special Licensing Counsel

Angela D. Graves                                 Deputy Corporate Secretary

Frederick Chase                                    Executive Director – Hydro Relicensing

James F. Pasquale                                Director – Business Power Allocation and Regulation

Keith Silliman                                        Director – Niagara Relicensing

Daniel Wiese                                        Inspector General and Director – Corporate Security

Richard Hackman                                 Program Manager – Energy Services and Technology

Arnold J. Schuff                                   Manager – Operations Planning - Transmission

William Helmer                                     Special Licensing Counsel

Denise D’Ambrosio                             Principal Attorney I

Jacqueline Carmody                            Attorney I

Oksana U. Karaczewsky                     Senior Procurement Compliance Coordinator

Michael A. Saltzman                            Senior Information Specialist

Mary Jean Frank                                  Associate Corporate Secretary

Lorna M. Johnson                               Assistant Corporate Secretary

John Murphy                                        Special Advisor to President and Chief Executive Officer

Jeffrey Carey                                         Special Assistant to President and Chief Executive Officer

Charles I. Lipsky                                  Former Vice President and Chief Engineer

 

 

Chairman McCullough presided over the meeting.  Secretary Cahill kept the Minutes.

 

                Chairman McCullough welcomed Honorable Leonard Spano as a newly confirmed member of the Board of Trustees and said that he looks forward to working with him.

 

1.             Approval of the Minutes

 

The Minutes of the Regular Meeting of May 23, 2006 were unanimously adopted.

 

2.             Financial Reports for the Five Months Ended May 31, 2006

 

Mr. Bellis presented an overview of the reports to the Trustees. 

3.             Report from the President and Chief Executive Officer

               

                President Carey said that the Power for Jobs bill passed by the State Legislature at the end of the legislative session was very similar to the one that the Governor had previously vetoed.  He said that the Legislature had also passed legislation authorizing an early retirement incentive for State workers and that Authority staff would be analyzing the incentive’s potential impact on the Authority if it were to be approved by the Trustees.  According to President Carey, an updated energy efficiency bill was not enacted by the Legislature before the close of the session, but that it was possible that such a bill would be taken up in a special session at the end of the year.  Mr. Vattimo said that staff would be preparing a report on the results of the 2006 legislative session and Chairman McCullough requested that the report be shared with the Trustees.  President Carey said that the Senate had confirmed Chairman McCullough’s reappointment through May 6, 2010, Trustee Townsend’s reappointment through May 6, 2011 and, of course, the appointment of Trustee Spano through May 6, 2007.    
 
4.             Allocation of 1,500 kW of Hydro Power

The President and Chief Executive Officer submitted the following report:

 

SUMMARY

 

                “The Trustees are requested to approve three allocations of available Replacement Power (‘RP’) or Expansion Power (‘EP’), totaling 1,500 kW to three industrial companies.

 

BACKGROUND

 

“Under the RP Settlement Agreement, National Grid (‘Grid’) (formerly Niagara Mohawk Power Corporation), with the approval of the Authority, identifies and selects certain qualified industrial companies to receive delivery of RP.  Qualified companies are current or future industrial customers of Grid that have or propose to have manufacturing facilities for the receipt of RP within 30 miles of the Authority’s Niagara Switchyard.  RP is up to 445,000 kW of firm hydro power generated by the Authority at its Niagara Power Project that has been made available to Grid, pursuant to the Niagara Redevelopment Act (through December 2005) and Chapter 313 of the 2005 Laws of the State of New York.

 

“Under Section 1005 (13) of the Power Authority Act, as amended by Chapter 313, the Authority may contract to allocate or reallocate directly, or by sale for resale, 250 MW of firm hydroelectric power as EP and up to 445 MW of RP to businesses in the State located within 30 miles of the Niagara Power Project, provided that the amount of power allocated to businesses in Chautauqua County on January 1, 1987 shall continue to be allocated in such county.

 

DISCUSSION

 

“On October 22, 2003, the Authority, Grid, Empire State Development Corporation and the Buffalo Niagara Enterprise signed a Memorandum of Understanding (‘MOU’) that outlines the process to coordinate marketing and allocating Authority hydro power.  The entities noted above have formed the Western New York Advisory Group (‘Advisory Group’) with the intent of better using the value of this resource to improve the economy of Western New York and the State of New York.  Nothing in the MOU changes the legal requirements applicable to the allocation of hydro power. 

 

                “Based on the Advisory Group’s discussions, staff recommends that the available power be allocated among three companies as set forth in Exhibits ‘4-A’ and ‘4-B.’  The Exhibits show, among other things, the amount of power requested by each company, the recommended allocation and additional employment and capital investment information.  These projects will help maintain and diversify the industrial base of Western New York and provide new employment opportunities.  They are projected to result in the creation of 213 jobs.

 

RECOMMENDATION

 

“The Director – Business Power Allocations and Regulation recommends that the Trustees approve the allocation of 1,500 kW of hydro power to the companies listed in Exhibits ‘4-A’ and ‘4-B.’

 

“The Executive Vice President and General Counsel, the Senior Vice President – Marketing, Economic Development and Supply Planning, the Vice President – Major Accounts Marketing and Economic Development and I concur in the recommendation.”

 

                The following resolution, as submitted by the President and Chief Executive Officer, was unanimously adopted.

 

                                                RESOLVED, That the allocation of 250 kW of Replacement Power and 1,250 kW of Expansion Power, as detailed in Exhibits “4-A” and “4-B,” be, and hereby is, approved on the terms set forth in the foregoing report of the President and Chief Executive Officer; and be it further

 

                                                RESOLVED, That the Chairman, the President and Chief Executive Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things and take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof by the Executive Vice President and General Counsel.

 

Exhibit “4-A1”

 

 

 

APPLICATION SUMMARY

Replacement Power

 

Company: Hydro-Air Components, Inc.

 

Location:                                                  Buffalo

                                                                            

County:                                                     Erie

 

IOU:                                                           National Grid

 

Business Activity:                                  Manufacturer of heating and cooling products

 

Project Description:                               Hydro-Air will construct a new 152,700-sq.-ft. facility on a 31-acre parcel in Buffalo. The building will consist of 140,000 sq. ft. of manufacturing space and 12,700 sq. ft. of office space.  The new facility will be built on 31 acres that was a former brownfield site.  In addition, the company will install a new powered coated-paint line, presses and other equipment.