ECONOMIC DEVELOPMENT POWER
ALLOCATION BOARD
MINUTES
December
19, 2006
Video
Conference – 10:00 a.m.
1. Approval
of the Minutes of the Meeting of November 27, 2006
2. Power for Jobs Extended Benefits
Recommendations
for Electricity Savings
Reimbursements
A. COMPANIES
IN JOB COMPLIANCE
Con Edison -
|
Bank of Charmer Industries, Inc. Edison Price Lighting, Inc. Greater Jamaica Development Corp. Home for Contemporary Theater & Art Long Island Jewish Manhasset - |
The Brooklyn - Blythedale Children's Hospital Valhalla - |
Long
Island Power Authority -
|
Ametek Hughes-Treitler Garden City - John Hassall, Inc. Westbury - |
Manhasset - Ultimate Precision Metal Farmingdale - |
National Grid -
|
Bank of Oriskany - Corning, Inc. ( Gouverneur - St. Lawrence County Fiber Glass Industries Inc. |
Ford Motor Company Lowville - PCI Paper Conversions, Inc. Sorrento Lactalis, Inc. |
|
Agri-Mark, Inc. Chateaugay - |
Upstate Farms Cooperative LeRoy - |
|
Flower City Printing, Inc. |
UCB Manufacturing Inc. |
B. COMPANIES
NOT IN JOB COMPLIANCE
Con
Edison -
|
Streamline Plastics Co., Inc. Bronx - |
|
National
Grid -
|
Cooper Hand Tools Cooper Industries Dodge-Graphic Press Inc. Fitzpatrick & Weller, Inc. Ellicottville - Kilian Manufacturing Corporation |
Quad Graphics, Inc. Specialized Packaging Radisson, Inc. Baldwinsville - Standard Manufacturing Co., Inc. Syracuse Plastics, Inc. Liverpool - Turbine Engine Components Technologies Whitesboro - |
|
A. T. Reynolds & Sons, Inc. Audio Sears |
Endicott Interconnect Technologies Endicott - Vail Ballou Press, Inc. |
|
Seneca Foods Corporation |
|
3. 2007 Power for Jobs Extended Benefits
Recommendations for Contract Extensions
Long Island Power Authority -
|
Deutsch Relays, Inc. Hauppauge - |
|
4. 2007 Power for Jobs Extended
Benefits Recommendations
for Electricity Savings
Reimbursements
National Grid -
|
Pepsi Bottling Group, LLC |
|
5. Economic Development Plan for Use of Industrial
Incentive Awards
OTHER BUSINESS
6. Next Meeting
A regular meeting of the Economic Development
Power Allocation Board was held via video conference at the following
participating locations:
1)
2)
3)
The following Members of the
Board were present at the following locations:
Frank
S. McCullough, Jr., Chairman (
Bernard P. McGarry, Member (
James
A. Duncan, Member, (
Kevin S. Corbett, Member (
Also in attendance were:
Timothy S. Carey President
and Chief Executive Officer, NYPA
Thomas J. Kelly Executive Vice President and General Counsel, NYPA
Louise M. Morman Senior
Vice President – Marketing and Economic Development, NYPA
Thomas H. Warmath Vice President and Chief Risk Officer, NYPA
James H. Yates Vice President – Major Account Marketing and Economic Development, NYPA
Anne B. Cahill Corporate
Secretary, NYPA
Angela D. Graves Deputy
Secretary, NYPA
Joseph C. Carline Assistant
General Counsel, NYPA
James F. Pasquale Director
– Business Power Allocations and Regulation, NYPA
Anthony C. Savino Manager
– Business Power Allocations and Compliance, NYPA
Mary Jean Frank Associate Corporate Secretary, NYPA
Joseph P. Scotto Senior Communications Engineer,
NYPA
Jeffrey Carey Special Assistant to President and Chief Executive Officer, NYPA
Jack Murphy Temporary PR Counsel, NYPA
Dave Robinson Reporter –
Michael J. Santarcangelo Director – Energy Policy,
Empire State Development Corporation
1. Adoption of Minutes
The minutes of the meeting of November 27, 2006, were unanimously adopted.
2.
Power for
Jobs Extended Benefits Recommendations
for Electricity Savings Reimbursements
The members of the Board reconsidered the 49 applications for extended benefits recommendations for electricity savings reimbursements listed below for Power for Jobs. Mr. Pasquale explained that some 69,329 jobs would be impacted. See Exhibits “2-A” and “2-B.”
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:
COMPANIES IN JOB
COMPLIANCE
|
Con Edison - |
|
|
Bank of Charmer Industries, Inc. Edison Price Lighting, Inc. Greater Jamaica Development Corp. Home for Contemporary Theater & Art Long Island Jewish Manhasset - |
The Brooklyn - Blythedale Children's Hospital Valhalla - |
|
Long Island Power Authority
- |
|
|
Ametek Hughes-Treitler Garden City - John Hassall, Inc. Westbury - |
Manhasset - Ultimate Precision Metal Farmingdale - |
|
National Grid – |
|
|
|
Bank of Oriskany - Corning, Inc. ( Gouverneur - St. Lawrence County Fiber Glass Industries Inc. |
Ford Motor Company Lowville - PCI Paper Conversions, Inc. Sorrento Lactalis, Inc. |
|
|
|
|
|
Agri-Mark, Inc. Chateaugay - |
Upstate Farms Cooperative LeRoy - |
|
|
|
|
Flower City Printing, Inc. |
UCB Manufacturing Inc. |
COMPANIES
NOT IN JOB COMPLIANCE
|
Con Edison - |
|
|
Streamline Plastics Co., Inc. Bronx - |
|
|
National Grid - |
|
|
Cooper Hand Tools Cooper Industries Dodge-Graphic Press Inc. Fitzpatrick & Weller, Inc. Ellicottville - Kilian Manufacturing Corporation |
Quad Graphics, Inc. Specialized Packaging Radisson, Inc. Baldwinsville - Standard Manufacturing Co., Inc. Syracuse Plastics, Inc. Liverpool - Turbine Engine Components Technologies Whitesboro - |
|
|
|
|
A. T. Reynolds & Sons, Inc. Audio Sears |
Endicott Interconnect Technologies Endicott - Vail Ballou Press, Inc. |
|
|
|
|
Seneca Foods Corporation |
|
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 49 applications
for extended benefits recommendations for electricity savings reimbursements discussed
herein totaling 69,329 kW until December 31, 2006.
3.
2007 Power
for Jobs Extended Benefits
Recommendations for Contract Extensions
The members of the Board reconsidered the application for extended benefits recommendations for contract extensions listed below for 2007 Power for Jobs. Mr. Pasquale explained that some 112 jobs would be impacted. See Exhibit “3-A.”
The following resolution was unanimously adopted
by members of the Board present.
WHEREAS, the following entity has applied
for extended benefits recommendations for contract extensions under the 2007 Power
for Jobs program:
|
Long Island Power Authority
- |
|
|
Deutsch Relays, Inc. Hauppauge - |
|
NOW THEREFORE BE IT RESOLVED, That the
Board hereby finds and determines that such application 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 645 of the
Laws of 2006; and be it further
RESOLVED, That the
Board recommends to the Power Authority of the State of New York the application
for extended benefits recommendations for contract extensions discussed herein
totaling 300 kW until June 30, 2007.
4.
2007 Power
for Jobs Extended Benefits Recommendations
for Electricity Savings
Reimbursements
The members of the Board reconsidered the application for extended benefits recommendations for electricity savings reimbursements listed below for Power for Jobs. Mr. Pasquale explained that some 356 jobs would be impacted. See Exhibit “4-A.”
The following resolution was unanimously adopted
by members of the Board present.
WHEREAS, the following entity has applied
for extended benefits recommendations for electricity savings reimbursements
under the Power for Jobs program:
|
National Grid - |
|
|
|
Pepsi Bottling Group, LLC |
|
|
NOW THEREFORE BE IT RESOLVED, That the
Board hereby finds and determines that such application 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 645 of the
Laws of 2006; and be it further
RESOLVED, That the Board recommends to the
Power Authority of the State of New York the application for extended benefits
recommendations for electricity savings reimbursements discussed herein
totaling 1,200 kW until June 30, 2007.
5. Economic
Development Plan for the
Use of Industrial Incentive Awards
Summary
The
members of the Economic Development Power Allocation Board (“Board”) are
requested to approve an Economic Development Plan ("Plan") for 2006
submitted by the Power Authority of the State of
Background
Section 1005 of the Power Authority Act as amended directs the Authority to identify annually net revenues produced by the sale of Expansion Power, which is 250 MW of firm hydroelectric power generated at the Niagara Power Project allocated to businesses within 30 miles of the Niagara switchyard and in Chautauqua County. The Authority is further directed to identify an amount of such net revenues that shall be used solely for industrial incentive awards. These awards are to be made in conformance with a Plan covering all such net revenues. Plans are to be submitted annually by the Authority to the Board and approved by the Power Allocation Board pursuant to the EDL.
Net revenues are defined by Section 1005 of the Power Authority Act as any excess of revenues properly allocated to the sales of Expansion Power over costs and expenses properly allocated to such sales.
In connection with approval of an application for power submitted on behalf of Chase Manhattan Bank, the Board approved a resolution on December 1, 1988 which concluded that the available industrial incentive awards be used for the purpose of assisting the Authority’s efforts to limit future Fitzpatrick production rate increases for all industrial, business, and Economic Development Power customers of the plant. Further, the Board recommended that future Boards act affirmatively on any economic development plan submitted to it subsequently by the Authority to the extent it provides for such use of industrial incentive awards.
At their meeting of November 27, 2001, the Trustees of the Authority approved a five year plan that provides for the use of net revenues from the sale of Expansion Power which support the rates of the business customers served under power programs associated with the Authority’s former James A. Fitzpatrick Nuclear Power Plant (the "Fitzpatrick Power Programs"). These programs include the High Load Factor, Economic Development, and Municipal Distribution Agency power programs. The Board previously approved Plans submitted annually by the Authority for 1996 through 2000 that provided for such use of the net revenues. Through calendar year 2004, the Authority has reported net revenues cumulating to $114,175,000.
DISCUSSION
Chapter 313 of the Laws of 2005 was signed into law by Governor George E. Pataki on July 26, 2005. The new law allowed certain Authority power program customers that would be exposed to bill increases as a result of higher market prices before December 31, 2006 to apply for Energy Cost Savings Benefits (“ECSBs).” Under this law, businesses eligible to receive ECSBs are limited to Authority customers currently supplied power under the Economic Development Power, Municipal Distribution Agency and High Load Factor programs. The ECSB was made available for the period November 1, 2005 through December 31, 2006. In 2006, a new law (Chapter 645 of the Laws of 2006) included provisions extending these benefits until June 30, 2007.
The
Authority’s Economic Development Power programs were recently reviewed by the
Temporary State Commission on the Future of New York State Power Programs for
Economic Development and numerous changes in the form and administration of
these programs was recommended. Any such changes would require
legislation. Moreover, the Power for
Jobs and the ESCB programs will end on June 30, 2007. The ECSB awards go to the
same customers that benefit from current Industrial Incentive Award rate
relief. Thus, pending clarification on
the future of these programs, it is appropriate to propose extensions of the
Industrial Incentive Awards for one year instead of the usual five year
extension.
In order to continue to serve Industrial Power
Program customers on a competitive basis consistent with the aim of the
legislation creating the Programs, the rates for these customers must be kept
low enough to be of sufficient economic incentive for industries to locate or
expand in
In calendar year 2005, net revenues of $6,896,000 were produced from the sale of Expansion Power. It is recommended that the Board approve the use of the 2005 Expansion Power net revenues towards the cost of serving the former FitzPatrick customers from the marketplace.
RECOMMENDATION
It is recommended the Power Allocation Board approve the Economic Development Plan submitted by the Authority which provides for the use of net revenues produced in 2005 from the sale of Expansion Power to support rates to Industrial Power Program customers for one year as described herein.
Following consideration of such applications, the Members of the Board present voted unanimously to approve the Economic Development Plan.
WHEREAS, section 1005 of the Public
Authorities Law authorizes the Power Authority of the State of New York to
identify an amount of the net revenues produced by the sale of Expansion Power
which shall be used for industrial incentive awards; and
WHEREAS, such industrial incentive awards
must be made in conformance with an Economic Development Plan submitted by the
Authority and approved by the Board pursuant to Section 188 of the Economic
Development Law; and
WHEREAS, the Board, on December 1, 1988,
endorsed the use, to the extent necessary, of available industrial incentive
awards for the purpose of assisting Authority efforts to limit future rate
increases for Fitzpatrick Power Program customers; and
WHEREAS, the Board, on December 1, 1988,
recommended that any Economic Development Plan submitted by the Authority in
the future be approved to the extent it provides for such use of industrial
incentive awards; and
WHEREAS, the Authority has approved an
Economic Development Plan for 2001 that provides for the use of net revenues
from the sale of Expansion Power to support rates for Industrial Power Program
customers and further, has authorized the submission of such Plan to the Board
for its approval;
NOW THEREFORE BE IT RESOLVED, That the
EDPAB hereby determines that the Economic Development Plan for 2005, which is
submitted by the Authority, and its implementation is consistent with the
criteria and requirements provided for in Sections 184 and 185 of the New York
Economic Development Law and in Part 370 of Title 21 of the Official
Compilation of Codes, Rules and Regulations of the State of New York; and be it
further
RESOLVED, That the EDPAB hereby approves such Plan providing for the use of net revenues from the sale of Expansion Power to support industrial and EDP rates of the Power Authority, in accordance with the foregoing report.
6. Next
Meeting
Chairman
McCullough said that the date for the January 2007 EDPAB meeting would be
selected shortly and that the EDPAB members would be