ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

December 19, 2006

Video Conference – 10:00 a.m.

 

                New York Power Authority Offices:

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

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

Niagara Power Project, 5777 Lewiston Road, Lewiston, NY

 

 

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 - Service Territory

Bank of New York

New York - New York County

 

Charmer Industries, Inc.

Astoria - Queens County

 

Columbia University – Trustees

New York - New York County

 

Edison Price Lighting, Inc.

New York - New York County

 

Greater Jamaica Development Corp.

Jamaica - Queens County

 

Home for Contemporary Theater & Art

New York - New York County

 

Lincoln Center for the Performing Arts

New York - New York County

 

Long Island Jewish Medical Center

Manhasset - Nassau County

 

Manhattan School of Music

New York - New York County

 

Memorial Sloan-Kettering Cancer Center

New York - New York County

 

New York Presbyterian Hospital

New York - New York County

 

NYU Medical Center

New York - New York County

 

S. R. Guggenheim Museum

New York - New York County

 

The Brooklyn Historical Society

Brooklyn - Kings County

 

Blythedale Children's Hospital

Valhalla - Westchester County

 

 

Long Island Power Authority - Service Territory

 

Ametek Hughes-Treitler

Garden City - Nassau County

 

John Hassall, Inc.

Westbury - Nassau County

North Shore Health System

Manhasset - Nassau County

 

Ultimate Precision Metal

Farmingdale - Suffolk County

 

National Grid - Service Territory

 

Bank of New York

Oriskany - Oneida County

 

Clarkson University

Potsdam - St. Lawrence County

 

Corning, Inc. (Canton)

Canton - St. Lawrence County

 

Edward John Noble Hospital

Gouverneur - St. Lawrence County

 

Fiber Glass Industries Inc.

Amsterdam - Montgomery County

 

Ford Motor Company

Buffalo - Erie County

 

Lewis County General Hospital

Lowville - Lewis County

 

PCI Paper Conversions, Inc.

Syracuse - Onondaga County

 

Sorrento Lactalis, Inc.

Buffalo - Erie County

 

Syracuse University

Syracuse - Onondaga County

 

New York State Electric and Gas – Service Territory

 

Agri-Mark, Inc.

Chateaugay - Franklin County

 

Upstate Farms Cooperative

LeRoy - Erie County

 

 

Rochester Gas & Electric – Service Territory

 

Flower City Printing, Inc.

Rochester - Monroe County

 

UCB Manufacturing Inc.

Rochester - Monroe County

 

 

 

B.  COMPANIES NOT IN JOB COMPLIANCE

 

Con Edison - Service Territory

 

Streamline Plastics Co., Inc.

Bronx - Bronx County

 

 

 

National Grid - Service Territory

 

Cooper Hand Tools

Cortland - Cortland County

 

Cooper Industries

Syracuse - Onondaga County

 

Dodge-Graphic Press Inc.

Utica - Herkimer County

 

Fitzpatrick & Weller, Inc.

Ellicottville - Cattaraugus County

 

Kilian Manufacturing Corporation

Syracuse - Onondaga County

 

Quad Graphics, Inc.

Saratoga Springs - Saratoga County

 

Specialized Packaging Radisson, Inc.

Baldwinsville - Onondaga County

 

Standard Manufacturing Co., Inc.

Troy - Rensselaer County

 

Syracuse Plastics, Inc.

Liverpool - Onondaga County

 

Turbine Engine Components Technologies

Whitesboro - Oneida County

 

New York State Electric and Gas – Service Territory

 

A. T. Reynolds & Sons, Inc.

Kiamesha Lake - Sullivan County

 

Audio Sears

Stamford - Delaware County

 

Endicott Interconnect Technologies

Endicott - Broome County

 

Vail Ballou Press, Inc.

Binghamton - Broome County

 

 

Rochester Gas & Electric – Service Territory

 

Seneca Foods Corporation

Marion - Wayne County

 

 

 

3.             2007 Power for Jobs Extended Benefits
Recommendations for Contract Extensions

 

Long Island Power Authority - Service Territory

 

Deutsch Relays, Inc.

Hauppauge - Suffolk County

 

 

 

 

4.             2007 Power for Jobs Extended Benefits Recommendations
for Electricity Savings Reimbursements                              

 

National Grid - Service Territory

 

Pepsi Bottling Group, LLC

Latham, Ulster County

 

 

 

 

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)       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

 

 

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

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

Bernard P. McGarry, Member (Albany, NY)

James A. Duncan, Member, (Lewiston, NY)

 

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

 

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 Buffalo News

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 - Service Territory

 

Bank of New York

New York - New York County

 

Charmer Industries, Inc.

Astoria - Queens County

 

Columbia University – Trustees

New York - New York County

 

Edison Price Lighting, Inc.

New York - New York County

 

Greater Jamaica Development Corp.

Jamaica - Queens County

 

Home for Contemporary Theater & Art

New York - New York County

 

Lincoln Center for the Performing Arts

New York - New York County

 

Long Island Jewish Medical Center

Manhasset - Nassau County

 

Manhattan School of Music

New York - New York County

 

Memorial Sloan-Kettering Cancer Center

New York - New York County

 

New York Presbyterian Hospital

New York - New York County

 

NYU Medical Center

New York - New York County

 

S. R. Guggenheim Museum

New York - New York County

 

The Brooklyn Historical Society

Brooklyn - Kings County

 

Blythedale Children's Hospital

Valhalla - Westchester County

 

 

Long Island Power Authority - Service Territory

Ametek Hughes-Treitler

Garden City - Nassau County

 

John Hassall, Inc.

Westbury - Nassau County

North Shore Health System

Manhasset - Nassau County

 

Ultimate Precision Metal

Farmingdale - Suffolk County

                               

National Grid – Service Territory

 

Bank of New York

Oriskany - Oneida County

 

Clarkson University

Potsdam - St. Lawrence County

 

Corning, Inc. (Canton)

Canton - St. Lawrence County

 

Edward John Noble Hospital

Gouverneur - St. Lawrence County

 

Fiber Glass Industries Inc.

Amsterdam - Montgomery County

 

Ford Motor Company

Buffalo - Erie County

 

Lewis County General Hospital

Lowville - Lewis County

 

PCI Paper Conversions, Inc.

Syracuse - Onondaga County

 

Sorrento Lactalis, Inc.

Buffalo - Erie County

 

Syracuse University

Syracuse - Onondaga County

 

New York State Electric and Gas – Service Territory

Agri-Mark, Inc.

Chateaugay - Franklin County

 

Upstate Farms Cooperative

LeRoy - Erie County

 

 

Rochester Gas & Electric – Service Territory

Flower City Printing, Inc.

Rochester - Monroe County

 

UCB Manufacturing Inc.

Rochester - Monroe County

 

 

 

COMPANIES NOT IN JOB COMPLIANCE

 

Con Edison - Service Territory

Streamline Plastics Co., Inc.

Bronx - Bronx County

 

 

 

National Grid - Service Territory

Cooper Hand Tools

Cortland - Cortland County

 

Cooper Industries

Syracuse - Onondaga County

 

Dodge-Graphic Press Inc.

Utica - Herkimer County

 

Fitzpatrick & Weller, Inc.

Ellicottville - Cattaraugus County

 

Kilian Manufacturing Corporation

Syracuse - Onondaga County

 

Quad Graphics, Inc.

Saratoga Springs - Saratoga County

 

Specialized Packaging Radisson, Inc.

Baldwinsville - Onondaga County

 

Standard Manufacturing Co., Inc.

Troy - Rensselaer County

 

Syracuse Plastics, Inc.

Liverpool - Onondaga County

 

Turbine Engine Components Technologies

Whitesboro - Oneida County

 

               

New York State Electric and Gas – Service Territory

A. T. Reynolds & Sons, Inc.

Kiamesha Lake - Sullivan County

 

Audio Sears

Stamford - Delaware County

 

Endicott Interconnect Technologies

Endicott - Broome County

 

Vail Ballou Press, Inc.

Binghamton - Broome County

 

 

Rochester Gas and Electric – Service Territory

Seneca Foods Corporation

Marion - 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 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 - Service Territory

Deutsch Relays, Inc.

Hauppauge - Suffolk County

 

 

                               

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 - Service Territory

 

Pepsi Bottling Group, LLC

Latham, Ulster County

 

 

 

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 New York ("Authority") for the use of industrial incentive awards pursuant to Section 188 of the Economic Development Law ("EDL").

 

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 New York State. Cumulative net revenues of $114,175,000 produced through 2004, were utilized in conformance with Plans approved by the Board to support rates Fitzpatrick Power Program customers.

 

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 informed as soon as possible.  Mr. McGarry thanked Chairman McCullough and Authority staff for the generous amount of time extended to him during the past year.  Chairman McCullough thanked the other EDPAB members, as well as staff, for their time and efforts in 2006.  Mr. Duncan said that he echoed the sentiments of Chairman McCullough and Mr. McGarry.