ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

October 18, 2005

Video Conference – 10:00 a.m.

 

                New York Power Authority Offices:

30 South Pearl Street, 10th Floor, Albany, NY

123 Main Street, 16th Floor, White Plains, NY

Niagara Power Project, 5777 Lewiston Road, Administration Building, Lewiston, NY

Empire State Development Corporation, 633 Third Avenue, New York, NY

 

 

1.             Approval of the Minutes of the Meeting of September 19, 2005

 

2.             Discussion of Power for Jobs Reconsideration Process Criteria:

 

3.             Power for Jobs Extended Benefits

                Recommendations for Contract Extensions

 

                A.            Companies in Job Compliance

 

Con Edison – Service Territory

Children's Museum of Manhattan

New York - New York County

 

Henry Street Settlement

New York – New York County

 

Kinray, Inc.

Whitestone - Queens County

 

Milazzo Wholesale Meats

Brooklyn - Kings County

 

Sound Shore Medical Center of Westchester

New Rochelle - Westchester County

 

The Mount Vernon Hospital

Mount Vernon - Westchester County

 

The Writers Room

New York - New York County

 

Town Hall Foundation

New York - New York

Long Island Power Authority – Service Territory

Maloya Laser Inc.

Commack - Suffolk County

 

 

Niagara Mohawk – Service Territory

3M

Tonawanda - Erie County

 

Albany Institute of History & Art

Albany - Albany County

 

Anheuser-Busch

Baldwinsville - Onondaga County

 

Bernzomatic (Irwin Industrial Tool)

Medina - Orleans County

 

Bestway Enterprises

Cortland - Cortland County

Burrows Paper Corp.

Little Falls - Herkimer County

 

Confer Plastics Inc.

North Tonawanda - Erie County

 

General Mills

Buffalo - Erie County

 

H.H. Dobbins Inc.

Lyndonville - Orleans County

 

Isadore A. Rapasadi & Sons, Inc.

Canastota - Madison County

 

Marquardt Switches, Inc.

Cazenovia - Madison County

 

New Venture Gear, Inc. (Div. of Magna Powertrain)

East Syracuse - Onondaga County

 

Pelco Electronic Corp ( STK)

Cazenovia - Madison County

Precious Plate, Inc.

Niagara Falls - Niagara County

 

Saint-Gobain

Hoosick Falls - Rensselaer County

 

UltrePet, LLC

Albany - Albany County

 

New York State Electric & Gas

Kraft Foods – Campbell

Campbell - Steuben County

 

Miner Institute

Chazy - Clinton County

 

Morton International

Silver Springs - Wyoming County

 

Norampac Industries (AIM)

Lancaster - Erie County

 

Wilson Greatbatch LTD.

Clarence - Erie County

 

Rochester Gas & Electric – Service Territory

Frontier Corporation

Rochester - Monroe County

 

Strong Health-Highland Hospital

Rochester - Monroe County

 

     

 

 

                B.            Companies Not in Job Compliance

 

Con Edison – Service Territory

Blue Ridge Farms Inc.

Brooklyn - Kings County

 

 

Long Island Power Authority – Service Territory

B.H. Aircraft Company, Inc.

Ronkonkoma - Suffolk County

 

 

Niagara Mohawk – Service Territory

Accumed Technologies, Inc.

Buffalo - Erie County

 

Airsep Corporation

Buffalo - Erie County

 

Atofina Chemicals, Inc. (Arkema Inc.)

Piffard - Livingston County

 

BOC Edwards Calumatic (Pharmaceutical Systems)

Tonawanda - Erie County

 

Climax Manufacturing Co.

Carthage - Jefferson County

 

Graphic Controls LP, A Tyco Int. LT

Buffalo - Erie County

 

 

Little Falls Hospital

Little Falls - Herkimer County

 

Metweld

Altamont - Albany County

 

Oneida Container Co., Inc.

Vernon - Oneida County

 

Rome Specialty Company, Inc.

Rome - Oneida County

 

Sentry Metal Blast, Inc. (dba Sentry Metal Services) Niagara Falls - Niagara County

 

TMP Technologies, Inc.

Buffalo - Erie County

 

New York State Electric & Gas – Service Territory

American Pipe & Plastics, Inc.

Binghamton - Broome County

 

Diversified Controls & Systems, Inc.

East Aurora - Erie County

 

International Paper - Geneva Container

Geneva - Ontario County

 

 

     

 

 

4.             Power for Jobs Extended Benefits Recommendations

                for Electricity Savings Reimbursements                                      

 

Con Edison – Service Territory

92nd Street YM-YWHA

New York - New York County

 

Charmer Industries, Inc.

Astoria - Queens County

 

Edison Price Lighting, Inc.

New York - New York County

 

Long Island Jewish Medical Center

Manhasset - Nassau County

 

New York Presbyterian Hospital

New York - New York County

 

New York University

New York - New York County

 

S. R. Guggenheim Museum

New York - New York County

 

Niagara Mohawk – Service Territory

Amsterdam Printing & Litho

Amsterdam - Montgomery County

 

Brodock Press, Inc.

Utica - Oneida County

 

Diemolding Corporation

Canastota - Madison County

 

Edward John Noble Hospital

Gouverneur - St. Lawrence County

 

Ford Motor Company

Buffalo - Erie County

 

LB Furniture Industries, LLC

Hudson - Columbia County

 

Little Falls Hospital

Little Falls - Herkimer County

 

Mohawk Paper Mills

Cohoes - Albany County

 

Nathan Littauer Hospital & Nursing Home

Gloversville - Fulton County

 

Natrium Products, Inc.

Cortland - Cortland County

 

Niagara Falls Medical Center        

Niagara Falls - Niagara County

 

Oneida Healthcare Center

Oneida - Madison County

 

Queensboro Farm Products, Inc. – Canastota

Canastota - Madison County

 

Revere Copper Products

Rome - Oneida County

 

Robison & Smith, Inc.

Gloversville - Fulton County

 

Snyder Industries, Inc.

N. Tonawanda - Niagara County

 

Spancrete Northeast Inc.

South  Bethlehem - Albany County

 

Syracuse China Company

Syracuse - Onondaga County

 

Syracuse University

Syracuse - Onondaga County

 

Welch Allyn Data Collection Inc.

Skaneateles Falls - Onondaga County

 

New York State Electric & Gas – Service Territory

Agri-Mark, Inc.

Chateaugay - St. Lawrence County

 

Corning, Inc.- (Big Flats)

Corning - Steuben County

 

Corning, Inc. (SCC & TDM)

Corning - Steuben County

 

Corning, Inc.- (Southside)

Corning - Steuben County

 

Dynabrade, Inc.

Clarence - Erie County

 

Emerson Power Transmission, Corp.

Ithaca - Tompkins County

 

Ever Fab, Inc.

East Aurora - Erie County

 

Merritt Plywood Machinery, Inc.

Lockport - Niagara County

 

Soucy USA

Champlain - Clinton County

 

Ultralife Batteries, Inc.

Newark - Wayne County

 

     

 

 

5.             Recommendation to Extend Existing

                Economic Development Power Contract

 

Long Island Power Authority – Service Territory

Barnes and Noble, Inc.

Westbury – Nassau County

 

 

 

 

6.             Energy Cost Savings Benefits Recommendations

 

                A.            Companies in Job Compliance

 

Long Island Power Authority – Service Territory

Barnes and Noble, Inc.

Westbury – Nassau County

 

 

B.                   Companies Not in Job Compliance

 

Con Edison - Service Territory

Engelhard Corporation

Peekskill – Westchester County

 

Engelhard Corporation

Peekskill – Westchester County

 

Niagara Mohawk - Service Territory

Native Textiles

Glens Falls - Warren County

 

 

 

 

7.             Transfers of Industrial Power

 

Niagara Mohawk – Service Territory

Diemolding Corporation

Canastota – Madison County

 

Gray-Syracuse, Inc.

Chittenango – Madison County

New Venture Gear, Inc.

East Syracuse – Onondaga County

 

STS Duotek, Inc.

Rush – Monroe County

Rochester Gas & Electric – Service Territory

Medeva Pharmaceuticals Manufacturing

Rochester – Monroe County

 

Spectronic Instruments

Rochester – Monroe County

 

 

8.             Other Business

 

9.             Next Meeting


 

            A regular meeting of the Economic Development Power Allocation Board was held via video conference at the following participating locations:

 

1)       New York Power Authority, 30 South Pearl Street, Albany NY

2)       New York Power Authority, 123 Main Street, White Plains, NY

3)       Niagara Power Project, 5777 Lewiston Road, Lewiston, NY

4)       Empire State Development Corp. 633 Third Avenue, NY

 

The following Members of the Board were present at the following locations:

Frank S. McCullough, Jr., Chairman (White Plains, NY)

James A. Duncan, Member (Lewiston, NY)

Bernard P. McGarry, Member (Albany, NY)

Kevin S. Corbett, Member (New York, NY)

 

 

Also in attendance were:

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

Thomas Warmath                                Vice President and Chief Risk Officer, NYPA

Joseph J. Carline                                  Assistant General Counsel – Power & Transmission, NYPA

John B. Hamor                                      Executive Director – State Governmental Relations, NYPA

Niko Ladopoulos                                 Legislative Liaison – Public & Governmental Affairs, NYPA

James F. Pasquale                                Director – Business Power Allocations, Regulation and Billing, NYPA

Anthony C. Savino                              Manager – Business Power Allocations & Compliance, NYPA

Bonnie Fahey                                       Executive Administrative Assistant, NYPA

Mary Jean Frank                                  Associate Secretary, NYPA

Lynnette J. Taylor                                Senior Legal Secretary, NYPA

Michael J. Santarcangelo                    Director - Energy Policy, ESDC

Michael Marlette                                  Marlette National Companies

 


 

 

1.                   Adoption of Minutes

The minutes of the meeting of September 19, 2005, were unanimously adopted.

 

 

 

 


 

2.                   Discussion of Power for Jobs Reconsideration Process Criteria

Mr. Pasquale presented an overview of staff’s recommendations to the EDPAB members.  At its meeting of September 19, 2005, EDPAB recommended that Power for Jobs (“PFJ”) recipients whose jobs are below contractually committed levels have their Extended PFJ Benefits (either in the form of an extended power contract or rebates) reduced proportionately.  EDPAB will evaluate an Application for Reconsideration from any PFJ recipient whose benefits were so reduced based on the criteria listed below.  The Application for Reconsideration will be in the form of a letter addressed to: 

                                Frank S. McCullough, Jr.

                                Chairman

                                New York State Economic Development Power Allocation Board

                                c/o New York Power Authority

                                123 Main Street

                                White Plains, NY 10601

                                Attn: James F. Pasquale

 

If adopted, under the PFJ Allocation Reconsideration process, staff will:

described below.

n       Be instructed to complete the reinstatement application.

n       Have 30 days from the date of notification to submit their request.

n       Urged to sign the contract for the reduced allocation in order to get their allocation started and notified that a revised contract will be sent to them if their original allocation is fully reinstated. 

n       Notified that any reinstated allocations will be prospective, not retroactive.  Such reinstated allocations will take effect following EDPAB approval, execution of the revised contracts, and notification of the appropriate investor-owned utilities (“IOUs”). 

Going forward:

Rebates

                Staff will send non-compliant recipients that elected to receive rebates reconsideration worksheets before the initial rebate request is presented to EDPAB, in an effort to avoid the necessity for making numerous adjustments to the rebate calculations.  

 

Reconsideration Criteria

 

  1. Additional employees have been hired or have accepted an offer of employment in writing since the Recipient filed its application such that employment is now in compliance with its contractual job commitment (i.e., at least 90% of the commitment).  Recipient must provide payroll evidence (or other evidence of accepted offers of employment) documenting the new employment totals.
  2. The employment level at the recipient’s facility on the basis of which the pro-rata reduction in benefits was calculated by EDPAB was affected by a temporary circumstance affecting the recipient’s facilities, such as construction, fire, or flood.
  3. The employment level at the recipient’s facility on the basis of which the pro-rata reduction in benefits was calculated by EDPAB was affected by regional and global competition, significant changes in business models and/or workforce transformation, productivity improvements (whether or not due to capital investment), or a specific business revitalization plan. 
  4. The recipient is the largest real property taxpayer in the local taxing jurisdiction and/or serves as the largest single employer in its local municipality.

 

  1. The recipient demonstrates that absent a full or partial restoration of Extended Benefits:

a)       For a business recipient, it is at risk of relocating facilities or operations out of New York State or closing or curtailing facilities or operations in the State, resulting in the loss of jobs, or

b)       For a not-for profit corporation recipient, it provides critical services or substantial benefits to the local community and is at significant risk of closing or curtailing its facilities or operations.   

Mr. Corbett pointed out that the fifth criterion would be particularly tough for not-for-profits to demonstrate, and that he would appreciate it if staff would consult with Empire State Development Corporation staff about their experience with these organizations. 

Chairman McCullough said that the Power Authority’s Chief Operating Officer, Timothy Carey, had recently participated in a public hearing in Syracuse conducted by the Assembly Energy Committee.  Mr. Carey had reported to him that some ideas about reconsideration criteria had been discussed at the hearing.  Chairman McCullough asked staff to obtain a copy of the transcript of the hearing and develop a précis of the points raised that both staff and EDPAB could consider as they fine-tune the reconsideration policy/criteria. 

In response to a question from Mr. Corbett, Mr. Pasquale said that the reduced allocation would be in effect for a period of 30 to 60 days before any reinstatement of the full allocation could be implemented.  A discussion ensued about the fact that the reinstatement cannot be implemented retroactively, both because the 2005 legislation did not make provision for that and because the Authority’s agreements with the IOUs do not allow for such retroactivity.  Both Mr. Corbett and Chairman McCullough urged that staff inform PFJ recipients of the reasons why the reinstatements cannot be retroactive, at the same time they are urging them to sign the contracts for the reduce allocations and explaining the reconsideration process. 

In response to a question from Mr. Corbett, Ms. Morman said that at this point it is not known how much capacity will be in the additional allocation.  Chairman McCullough said that staff may be better able to answer that question next month. 

Chairman McCullough asked staff to submit its précis of the relevant testimony from the Syracuse hearing to the EDPAB members before the November EDPAB meeting.

 

 


 

3.                   Power for Jobs Extended Benefits

        Recommendations for Contract Extensions

The members of the Board considered the 32 applications for extended benefits recommendations for contract extensions for companies in job compliance and 17 applications for companies not in job compliance listed below for Power for Jobs.  Mr. Pasquale explained that some 39,437 jobs would be impacted.  See Exhibits “3-A1” and “3-A2.”

The following resolution was unanimously adopted by members of the Board present.

WHEREAS, the following entities have applied for extended benefits recommendations for contract extensions under the Power for Jobs program:

COMPANIES IN JOB COMPLIANCE

 

Con Edison – Service Territory:

 

Children's Museum of Manhattan

New York - New York County

 

Henry Street Settlement

New York – New York County

 

Kinray, Inc.

Whitestone - Queens County

 

Milazzo Wholesale Meats

Brooklyn - Kings County

 

Sound Shore Medical Center of Westchester

New Rochelle - Westchester County

 

The Mount Vernon Hospital

Mount Vernon - Westchester County

 

The Writers Room

New York - New York County

 

Town Hall Foundation

New York - New York

 

Long Island Power Authority – Service Territory

 

Maloya Laser Inc.

Commack - Suffolk County

 

 

 

 

Niagara Mohawk – Service Territory

 

3M

Tonawanda - Erie County

 

Albany Institute of History & Art

Albany - Albany County

 

Anheuser-Busch

Baldwinsville - Onondaga County

 

Bernzomatic (Irwin Industrial Tool)

Medina - Orleans County

 

Bestway Enterprises

Cortland - Cortland County

 

Burrows Paper Corp.

Little Falls - Herkimer County

 

Confer Plastics Inc.

North Tonawanda - Erie County

 

General Mills

Buffalo - Erie County

H.H. Dobbins Inc.

Lyndonville - Orleans County

 

Isadore A. Rapasadi & Sons, Inc.

Canastota - Madison County

 

Marquardt Switches, Inc.

Cazenovia - Madison County

 

New Venture Gear, Inc. (Div. of Magna Powertrain)

East Syracuse - Onondaga County

 

Pelco Electronic Corp ( STK)

Cazenovia - Madison County

 

Precious Plate, Inc.

Niagara Falls - Niagara County

 

Saint-Gobain

Hoosick Falls - Rensselaer County

 

UltrePet, LLC

Albany - Albany County

New York State Electric & Gas

 

 

Kraft Foods – Campbell

Campbell - Steuben County

 

Miner Institute

Chazy - Clinton County

 

Morton International

Silver Springs - Wyoming County

 

 

Norampac Industries (AIM)

Lancaster - Erie County

 

Wilson Greatbatch LTD.

Clarence - Erie County

 

 

 

Rochester Gas & Electric – Service Territory

 

 

Frontier Corporation

Rochester - Monroe County

 

Strong Health-Highland Hospital

Rochester - Monroe Cnty

 

 

 

       

 

 

 

COMPANIES NOT IN JOB COMPLIANCE

 

Con Edison – Service Territory

Blue Ridge Farms Inc.

Brooklyn - Kings County

 

 

 

Long Island Power Authority – Service Territory

B.H. Aircraft Company, Inc.

Ronkonkoma - Suffolk County

 

 

Niagara Mohawk – Service Territory

Accumed Technologies, Inc.

Buffalo - Erie County

 

Airsep Corporation

Buffalo - Erie County

 

Atofina Chemicals, Inc. (Arkema Inc.)

Piffard - Livingston County

 

BOC Edwards Calumatic (Pharmaceutical Systems)

Tonawanda - Erie County

 

Climax Manufacturing Co.

Carthage - Jefferson County

 

Graphic Controls LP, A Tyco Int. LT

Buffalo - Erie County

 

Little Falls Hospital

Little Falls - Herkimer County

 

Metweld

Altamont - Albany County

 

Oneida Container Co., Inc.

Vernon - Oneida County

 

Rome Specialty Company, Inc.

Rome - Oneida County

 

Sentry Metal Blast, Inc. (dba Sentry Metal Services)

Niagara Falls - Niagara County

 

TMP Technologies, Inc.

Buffalo - Erie County

 

New York State Electric & Gas

American Pipe & Plastics, Inc.

Binghamton - Broome County

 

Diversified Controls & Systems, Inc.

East Aurora - Erie County

International Paper - Geneva Container

Geneva - Ontario County

 

     

NOW THEREFORE BE IT RESOLVED, That the Board hereby finds and determines that such applications meet the requirements of the Power for Jobs legislation contained in Chapter 316 of the Laws of 1997; Chapter 386 of the Laws of 1998; Chapter 63 of the Laws of 2000; Chapter 226 of the Laws of 2002; Chapter 59 of the Laws of 2004; and Chapter 313 of the Laws of 2005, would advance the public policy set forth in Section 189(i) of the Economic Development Law to provide effective incentives to promote economic development, maintain and develop jobs, and encourage new capital investment throughout New York State; and be it further

RESOLVED, That the Board recommends to the Power Authority of the State of New York the 49 applications for extended benefits recommendations for contract extensions discussed herein totaling
82,040 kW until December 31, 2006.


 

4.                   Power for Jobs Extended Benefits

        Recommendations for Electricity Savings Reimbursements

The members of the Board considered the 37 applications for extended benefits recommendations for electricity savings reimbursements listed below for Power for Jobs.  Mr. Pasquale explained that some 41,646 jobs would be impacted.  See Exhibit “4-A.”

The following resolution was unanimously adopted by members of the Board present, with the exception of Edison Price, which was deferred to a later date.

WHEREAS, the following entities have applied for extended benefits recommendations for electricity savings reimbursements under the Power for Jobs program:

 

Con Edison – Service Territory

92nd Street YM-YWHA

New York - New York County

 

Charmer Industries, Inc.

Astoria - Queens County

 

Edison Price Lighting, Inc.

New York - New York County

 

Long Island Jewish Medical Center

Manhasset - Nassau County

 

New York Presbyterian Hospital

New York - New York County

 

New York University

New York - New York County

 

S. R. Guggenheim Museum

New York - New York County

 

Niagara Mohawk – Service Territory

Amsterdam Printing & Litho

Amsterdam - Montgomery County

 

Brodock Press, Inc.

Utica - Oneida County

 

Diemolding Corporation

Canastota - Madison County

 

Edward John Noble Hospital

Gouverneur - St. Lawrence County

 

Ford Motor Company

Buffalo - Erie County

 

LB Furniture Industries, LLC

Hudson - Columbia County

 

Little Falls Hospital

Little Falls - Herkimer County

 

Mohawk Paper Mills

Cohoes - Albany County

 

Nathan Littauer Hospital & Nursing Home

Gloversville - Fulton County

 

 

Natrium Products, Inc.

Cortland - Cortland County

 

Niagara Falls Medical Center     

Niagara Falls - Niagara County

 

Oneida Healthcare Center

Oneida - Madison County

 

Queensboro Farm Products, Inc. – Canastota

Canastota - Madison County

 

Revere Copper Products

Rome - Oneida County

 

Robison & Smith, Inc.

Gloversville - Fulton County

 

Snyder Industries, Inc.

N. Tonawanda - Niagara County

 

Spancrete Northeast Inc.

South  Bethlehem - Albany County

 

Syracuse China Company

Syracuse - Onondaga County

 

Syracuse University

Syracuse - Onondaga County

 

 

Welch Allyn Data Collection Inc.

Skaneateles Falls - Onondaga County

New York State Electric & Gas

Agri-Mark, Inc.

Chateaugay - St. Lawrence County

 

Corning, Inc.- (Big Flats)

Corning - Steuben County

 

Corning, Inc. (SCC & TDM)

Corning - Steuben County

 

Corning, Inc.- (Southside)

Corning - Steuben County

 

Dynabrade, Inc.

Clarence - Erie County

 

Emerson Power Transmission, Corp.

Ithaca - Tompkins County

 

Ever Fab, Inc.

East Aurora - Erie County

 

Merritt Plywood Machinery, Inc.

Lockport - Niagara County

 

Soucy USA

Champlain - Clinton County

 

Ultralife Batteries, Inc.

Newark - Wayne County

 

     

NOW THEREFORE BE IT RESOLVED, That the Board hereby finds and determines that such applications meet the requirements of the extended benefits provisions of the Power for Jobs legislation contained in Article 6 of the Economic Development Law as amended by Chapter 313 of the Laws of 2005; and be it further

RESOLVED, That the Board recommends to the Power Authority of the State of New York the 37 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 35,914 kW until December 31, 2006.

 


 

5.                   Recommendations to Extend Existing

Economic Development Power Contracts

Summary

The members of the Economic Development Power Allocation Board (Power Allocation Board) are requested to recommend approval of an extension to the term of service to December 31, 2006 for one existing Economic Development Power Program (“EDP Program”) customer, as listed in Exhibit “5-A.”

BACKGROUND

The New York Power Authority sells electricity to businesses under several state-authorized economic development programs.  These power sales are made through the EDP Program, High Load Factor Manufacturer program, Municipal Distribution Agency Industrial Power program and other power sales programs.  The capacity and energy for these sales are provided by market purchases and supported by other Authority sources as needed.  In some instances, these customers are served directly by the Authority and in other cases, the customers receive Authority power through resale arrangements with municipal distribution agencies or investor-owned utilities.  Contracts range in length from 5 to more than 20 years.

DISCUSSION

Chapter 313 of the Laws of 2005 was signed into law by Governor George E. Pataki on July 26, 2005.  The new law allows certain Authority power program customers who would be exposed to price increases before December 31, 2006 to apply for an Energy Cost Savings Benefit.  Under the new law, businesses eligible to receive Energy Cost Savings Benefits are limited to Authority customers currently supplied power under the Economic Development Power, Municipal Distribution Agency and High Load Factor programs.  The Energy Cost Savings Benefit will be available for the period November 1, 2005 through December 31, 2006.

The customer mentioned above has an allocation contract, previously recommended by the Power Allocation Board and approved by the Power Authority Trustees, which expires prior to December 31, 2006.  We are requesting the Power Allocation Board to recommend that Trustees extend this agreement until December 31, 2006 so that the customer may receive the benefits associated with the recently passed law.  The extension will help maintain costs and enable this customer to compete more effectively.  In addition, it will further secure employment levels in New York State.

RECOMMENDATION

It is requested that the Power Allocation Board recommend extension to the term of service to December 31, 2006 for the one (1) existing economic development power program customer, as listed in Exhibit “5-A.”

Following consideration of such applications, the Members of the Board present voted unanimously to extend the contracts.

WHEREAS, one customer has applied for an extension to its existing Economic Development Power contract;

NOW THEREFORE BE IT RESOLVED That the Board hereby finds and determines that such application meets the requirements of Section 184 of the Economic Development Law; and be it further

RESOLVED, That the Board hereby recommends to the Power Authority of the State of New York the total allocation of 1,100 kW to extend the existing contract of the business listed on Exhibit “5-A” to December 31, 2006, and that the terms set forth on such Exhibit be incorporated into the Power Authority’s contract for Economic Development Power.


 

6.                   Economic Development Programs - Energy

                Cost Savings Benefits Recommendations     

SUMMARY

The Members of the Economic Development Power Allocation Board (Power Allocation Board) are requested to recommend approval of Energy Cost Savings Benefits for four companies as listed in Exhibits “6-A1” and “6-A2.”   

BACKGROUND

Chapter 313 of the Laws of 2005 was signed into law by Governor George E. Pataki on July 26, 2005.  The new law allows certain New York Power Authority power program customers who would be exposed to bill increases as a result of higher market prices before December 31, 2006 to apply for an Energy Cost Savings Benefit.  Under the new law, businesses eligible to receive Energy Cost Savings Benefits are limited to Authority customers currently being supplied power under the Economic Development Power, Municipal Distribution Agency and High Load Factor programs. 

The Energy Cost Savings Benefit will be available for the period November 1, 2005 through December 31, 2006.  Each application will be evaluated under criteria adopted by the Power Allocation Board in consultation with the Power Authority.  The new law states that such criteria shall include:

·         overall economic impact of the company in terms of jobs created or retained, payroll, capital investment and the use of in-state suppliers;

·         the likelihood that absent approval a company would close, contract or relocate outside of New York State;

·         the company’s compliance with prior contractual commitments to retain and/or create jobs and

·         the extent to which a benefit would affect the overall productivity or competitiveness of the company and its existing in-State employment.

 

The Power Allocation Board can recommend a partial or complete withdrawal of the Energy Cost Savings Benefit if the company fails to maintain mutually agreed-upon commitments including jobs, capital investment and power utilization.

The legislation also authorizes the sale of Authority power into the wholesale market with net earnings from such sales (and other funds deemed feasible and advisable by the Trustees) to be used for the Energy Cost Savings Benefits.  Power available to fund Energy Cost Savings Benefits includes:

·         up to 70 MW of unallocated replacement power;

·         up to 38.6 MW of preservation power relinquished or withdrawn after the effective date of the new legislation and

·         up to 20 MW of power from the St. Lawrence/FDR project for the period ending December 31, 2006.

 

DISCUSSION

The four organizations listed in Exhibits “6-A1” and “6-A2” have agreed to retain more than 940 jobs in New York State in exchange for these benefits.  The companies will be eligible to receive these benefits until December 31, 2006. 

FISCAL INFORMATION

Funding of Energy Cost Savings Benefits for the companies listed in Exhibits “6-A1” and “6-A2” is not expected to exceed $7,500,000. 


 

RECOMMENDATION

The Power Allocation Board is requested to recommend that the Authority’s Trustees approve Energy Cost Savings Benefits to the four businesses listed in Exhibits “6-A1” and “6-A2.” 

Following consideration of such applications, the Members of the Board present voted unanimously to adopt the following resolution:

NOW THEREFORE BE IT RESOLVED, That the Board hereby finds and determines that such applications meet the requirements of the energy cost savings benefits under the Power for Jobs legislation contained in Article 6 of the Economic Development Law as amended by Chapter 313 of the Laws of 2005; and be it further

RESOLVED, That the Board recommends to the Power Authority of the State of New York the four applications for energy cost savings benefits discussed herein totaling 4,175 kW until December 31, 2006.


 

7.             Transfers of Industrial Power

SUMMARY

The members of the Economic Development Power Allocation Board (“EDPAB”) are requested to recommend approval of the changes to the companies as detailed below.

BACKGROUND

EDPAB is requested to approve the transfer of power allocations for six existing customers that have changed names and/or locations for various business reasons. EDPAB has approved transfers of this nature at past meetings.

DISCUSSION

The proposed transferees are as follows:

Diemolding Corporation manufactures components for the automobile industry using thermoset materials with compression, transfer and injection process technologies.  The company was approved for an Economic Development Power (“EDP”) allocation of 800 kW for 186 jobs at its Canastota plant by the Trustees at their May 23, 1995 meeting.  Diemolding wishes to transfer the allocation from the Canastota plant to its other facility in Wampsville in order to take advantage of more efficient processing equipment at that facility.  The two plants are two miles apart and are served by the same utility.  The company is in job compliance and will continue to employ the same labor force and manufacture the same products.  Diemolding will honor the employment commitments and all other terms and conditions of its contract.

Gray-Syracuse, Inc. is a manufacturer of precision components for the aerospace, gas turbine, micro-turbine, and other industrial market segments.  The company has a facility in Chittenango.  At their October 27, 1998 meeting, the Trustees approved Gray-Syracuse for a 1,250 kW Power for Jobs (“PFJ”) allocation in return for 395 jobs.  The company changed its name to ESCO Turbine Technologies – Syracuse.  There was no financial transaction nor asset acquisition; rather the company changed the legal entity name in order to be more in line with corporate branding strategy.  All aspects of the facility’s operations remain the same.  ESCO Turbine Technologies is in job compliance and was approved for a PFJ extended benefits contract extension at the September 20, 2005 Trustees meeting.  The company will honor all contract terms and conditions, including job commitments.

Medeva Pharmacueticals Manufacturing, a pharmaceutical manufacturer in Rochester, was approved for a 2,000 kW PFJ allocation in return for 475 jobs at the April 28, 1998 Trustees meeting.  The company’s parent, Celltech Group PLC, was acquired in 2004 by UCB SA, a Belgian company.  The company subsequently changed the name of the manufacturing operations in Rochester to UCB Manufacturing Inc.   UCB Manufacturing Inc. continues to manufacture pharmaceutical products at the same facility.  At their September 20, 2005 meeting, the Trustees approved the company for a PFJ extended benefits contract extension with a reduced allocation of 1,600 kW and a reduced job commitment of 380.  The company will honor all extended benefits contract terms and conditions, including job commitments.

New Venture Gear, Inc. is a large manufacturer of parts for the automotive industry with a facility in East Syracuse.  The company was approved for a 5,000 kW allocation of PFJ power in return for 3,200 jobs at the December 16, 1997 Trustees meeting.  The New Venture Gear plant merged with Magna International and formed New Process Gear Inc., a division of Magna Powertrain.  The merger took effect September 29, 2004 with the new company 80% owned by Magna International and 20% by DaimlerChrysler.  New Process Gear Inc. continues to produce the same types of products at the East Syracuse facility and is in job compliance.  The company agrees to honor all contract terms and conditions, including job commitments.

Spectronic Instruments produces diffraction gratings and manufactured scientific instruments and optical components in Rochester as a wholly owned subsidiary of Thermo Electron.  The company was approved for an 800 kW PFJ allocation in return for 178 jobs at the March 31, 1998 Trustees meeting.  Thermo Electron subsequently moved the scientific instruments operation to Wisconsin, including the jobs associated with that part of the business. In July 2004, the company sold the remaining Rochester operations to Newport Corporation of Irvine, CA, in an asset-and-liability transfer.  Newport subsequently changed the name to Newport Rochester Inc.  The new company currently maintains 42 jobs in Rochester and continues to provide the same products and services.  Because it is below its job commitment, the company’s PFJ extended benefits will be reduced accordingly at the time of Trustees approval.

STS Duotek, Inc. is a contract assembler, sterilizer, packager and testing laboratory for the medical device and pharmaceutical industries.  The company has a facility in Rush that was approved for a 175 kW PFJ allocation in return for 55 jobs at the April 27, 1999 Trustees meeting.  The company was acquired by Ethox Corporation of Buffalo in an asset-and-liability purchase in February 2005.  Ethox will maintain the current employment level and continue to provide the same products and services; operations at the facility remain the same.  The company will honor all contract terms and conditions, including job commitments.

RECOMMENDATION

The Power Allocation Board is requested to approve the name and or/location changes detailed above.

RESOLVED, That the members of the Economic Development Power Allocation Board hereby approve job commitments revisions to six companies, a name change, and allocation modifications to two companies as described in the above memorandum to the Board.


 

8.             Other Business

 

                Mr. Duncan thanked Chairman McCullough, Mr. Corbett, Mr. McGarry and especially staff for working so hard to develop fair reconsideration criteria and a process for evaluating them.  He said that he thinks the effort and result send the correct message and complimented Chairman McCullough on his leadership in accomplishing this in such a short period of time.  Mr. Corbett seconded this sentiment and said that he also appreciated the effort by staff and Chairman McCullough’s leadership on this important initiative. 

 

 

 


 

9.             Next Meeting

 

                The next meeting of the Board is to be determined.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10-05MINS