1.                   Adoption of Minutes

The minutes of the meeting of November 21, 2005, were unanimously adopted. 
 

2.                   Reconsideration Process Discussion

Mr. Pasquale said that staff had received 69 letters requesting reconsideration of the Authority’s PFJ allocation reductions, representing 57% of the companies that had been notified of the reduction and the reconsideration process.  Staff had sent out an additional 14 letters to companies whose allocations were being reduced following the November 29^th Trustees’ Meeting, but had received no responses yet to those letters.  He also said that staff had still not received the transcript of the October Assembly hearing and, until it had, none of the applications for reconsideration would be brought before the Board for their review. 

Chairman McCullough said that he hoped by the Board’s January meeting staff would be able to report to the Board about any proposed new criteria for reconsideration based on the recommendations made at the Assembly hearing. 

In response to a question from Mr. McGarry Mr. Pasquale said that the affected companies’ allocations had already been reduced.  Mr. McGarry said that, since any restoration of the original allocation would not be retroactive, there was some urgency to moving the applications for reconsideration forward.  Mr. Corbett requested that Mr. Santarcangelo be kept in the loop as this issue progressed.

3.                   Power for Jobs Extended Benefits Recommendations for Contract Extensions

The members of the Board considered the three applications for extended benefits recommendations for contract extensions for companies in job compliance and five applications for companies not in job compliance listed below for Power for Jobs.  Mr. Pasquale explained that some 844 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

COMPANIES NOT IN JOB COMPLIANCE

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 8 applications for extended benefits recommendations for contract extensions discussed herein totaling
2,890 kW until December 31, 2006.
 

4.                   Power for Jobs Extended Benefits Recommendations for Electricity Savings Reimbursements

The members of the Board considered the 18 applications for extended benefits recommendations for electricity savings reimbursements listed below for Power for Jobs.  Mr. Pasquale explained that some 26,181 jobs would be impacted.  See Exhibit “4-A.”

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

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

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 18 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 20,984 kW until December 31, 2006.

5.                   Recommendation to Extend Existing Economic Development Power Program Contract

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 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 Economic Development Power 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 five 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 detailed in Exhibit “5-A” 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 the 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 application, the Members of the Board present voted unanimously to extend the contract.

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

Griffis Local Development Corp., Rome – Oneida County

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 2,000 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.                   Transfers of Industrial Power

SUMMARY

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

BACKGROUND

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

DISCUSSION

The proposed transferees are as follows:

Viking Industries, LLC, a division of PAR Industries, Inc. (“PAR”) was a custom injection molding and tooling shop producing automotive parts in Amherst, NY.  In March 2002, PAR acquired through bankruptcy proceedings the business assets of Renaissance Plastics, Inc. which had previously bought the assets of Ultra Tool and Plastics, Inc. (“Ultra Tool”) located at the same facility.  Ultra Tool was approved for a 150 kW Power for Jobs allocation for 463 jobs on April 27, 1999.  At the September 23, 2003 board meeting, the Trustees approved the transfer of the power allocation contracts to PAR (Viking Industries, LLC).

Delphi Automotive Systems (“Delphi”) was a major customer of PAR’s Amherst production facility that supplied component parts critical to Delphi’s supply operations.  Delphi extended a secured loan to PAR after PAR experienced severe financial and operational problems threatening their viability.  Eventually, despite the loan and other accommodations, PAR determined it was no longer able to uphold their supply obligations, and ceased as a going concern in 2004.  Delphi exercised its rights with respect to the collateral provided in connection with the secured loan, and thereby obtained ownership of certain equipment and inventory and began its own operations at the facility in December 2004.

As a critical cost component of maintaining operations at the Amherst facility, Delphi requests a transfer of the power allocation formerly contracted to PAR.  They are producing the same automotive component parts previously produced at the facility.  They have a current employment level of 180 jobs.  Therefore, the company requests a reduction of the PFJ allocation job commitment from 463 to 180 jobs. 

The Museum of American Folk Art is a museum located in New York City, which features 18th- and 19th- century paintings, quilts, sculptures, and the work of contemporary self-taught artists.  At the May 25, 1999 Trustee meeting, the Museum of American Folk Art was approved for a 50 kW Power for Jobs (“PFJ”) allocation in return for 33 jobs.  The museum changed its name to American Folk Art Museum.  This was strictly a name change and therefore there will be no change in operation.  The company is in job compliance and was approved for a PFJ extended benefits contract extension at the September 20, 2005 Trustee meeting.  American Folk Art Museum will honor all contract terms and conditions, including job commitments.

Osmose, Inc. is a company located in Buffalo, New York, and deals in agricultural chemicals.  At the February 24, 1999 Trustee meeting, Osmose, Inc. was approved for a 300 kW Power for Jobs (“PFJ”) allocation in return for 147 jobs.  Osmose Realty Corp. was a previously established corporate entity wholly owned within Osmose, Inc.  It was incorporated in the Sate of New York.  The change was made to place the management of all real property holdings under Osmose Realty Corp.  There was neither a financial transaction nor asset acquisition; rather it was a management change to properly align control of their real property assets.  All aspects of the company’s operations will remain the same.  The company is in job compliance and was approved for a PFJ extended benefits contract extension at the September 20, 2005 Trustee meeting.  Osmose Realty Corp will honor all contract terms and conditions, including job commitments.

Floral Glass and Mirror Inc. (“Floral Glass”) is located in Hauppauge, New York and manufactures insulated and architectural glass products.  At the November 24, 1998 Trustee meeting, Floral Glass was approved for a 300 kW Power for Jobs (“PFJ”) allocation in return for 176 jobs.  Floral Glass was purchased by Oldcastle Glass in an asset only acquisition.  They will continue to do business at the old site and have no plans of relocating.  Capital investments have already transpired and are planned to continue into 2006.  However, there will be no change in operation.  Although below job commitment, the company’s PFJ extended benefits will be reduced accordingly at the time of trustee approval.  Oldcastle Glass will honor all contract terms and conditions, including job commitments.

Bonded Insulation Company, Inc. is a manufacturer of cellulose insulation and fire retardant.  The company is located in Hagaman, New York.  At the October 27, 1998 Trustee meeting Bonded Insulation was approved for a 300 kW Power for Jobs (“PFJ”) allocation in return for 31 jobs.  The name of the Bonded Insulation Company, Inc. has recently been changed to GreenFiber Albany, Inc. to reflect a change in ownership of the Bonded common stock.  All aspects of the manufacturing operation remain the same.  The company is in job compliance and was approved for a PFJ extended benefits contract extension at the September 20, 2005 Trustee Meeting.  GreenFiber Albany, Inc. will honor all contract terms and conditions, including job commitments.

Wilson Greatbatch LTD manufactures batteries for implantable medical devices as well as for commercial and industrial applications.  The company is located in Clarence, New York.  At the January 25, 2000 Trustee meeting, Wilson Greatbatch LTD was approved for a 1200 kW Power for Jobs (“PFJ”) allocation in return for 559 jobs. The name of Wilson Greatbatch LTD has recently been changed to Greatbatch, Inc. for business marketing purposes.  The company is in job compliance and was approved for a PFJ extended benefits contract extension at the October 19, 2005 Trustee meeting.  Greatbatch will honor all contract terms and conditions, including job commitments.

RECOMMENDATION

It is recommended that the Power Allocation Board approve the name and or/location changes detailed above.

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

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.

7.                   Other Business

Chairman McCullough said that staff would try to get the précis of the Assembly hearing and the reconsideration applications out to the Board before the January meeting and that a discussion of both would be the first item on the agenda.

Mr. Corbett thanked everyone for all of the work they had done this year, saying it hadn’t been an easy one.

8.                   Next Meeting

                The next meeting of the Board is to be determined.

12-05MINS