ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

January 30, 2006

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, Lewiston, NY

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

 

 

1.                    Approval of the Minutes of the Meeting of December 13, 2005

 

2.                   Report from the Chairman

 

3.                   Power for Jobs Extended Benefits Recommendations for Contract Extension

 

                A.            Company Not in Job Compliance

 

Con Edison – Service Territory

Display Producers, Inc.

Bronx – Bronx 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

 

Henry Street Settlement

New York – New York County

 

Kingsbrook Jewish Medical Center

Brooklyn – Kings County

 

Lincoln Center for the Performing Arts

New York – New York County

 

Liz Claiborne, Inc.

New York – New York County

 

Long Island Jewish Medical Center

Manhasset – Nassau County

 

New Museum of Contemporary Art

New York – New York County

 

 

 

New York Presbyterian Hospital

New York – New York County

 

New York University

New York – New York County

 

North General Hospital

New York – New York County

 

NYU Medical Center

New York – New York County

 

Pepsi Cola Bottling Company

College Point – Queens County

 

S. R. Guggenheim Museum

New York – New York County

 

South Street Seaport Museum

New York – New York County

Long Island Power Authority – Service Territory

AMETEK Hughes-Treitler Military Corp.

Garden City – Nassau County

 

Enzo Clinical Labs, Inc.

Farmingdale – Suffolk County

 

Good Samaritan Hospital

West Islip – Suffolk County

 

John Hassall, Inc.

Westbury – Nassau County

 

National Grid – Service Territory

Diemolding Corporation

Canastota – Madison County

 

Edward John Noble Hospital

Gouverneur – St. Lawrence County

 

Interface Solutions, Inc.

Fulton – Oneida County

 

LB Furniture Industries, LLC

Hudson – Columbia County

 

Lewis County General Hospital

Lowville – Lewis County

 

Mohawk Paper Mills

Cohoes – Albany County

 

Nathan Littauer Hospital & Nursing Home

Gloversville – Fulton County

 

Natrium Products, Inc.

Cortland – Cortland County

 

Queensboro Farm Products, Inc. – Canastota

Canastota – Madison County

 

Revere Copper Products

Rome – Oneida County

 

Robinson & Smith, Inc.

Gloversville – Fulton County

 

Snyder Industries, Inc.

N. Tonawanda – Niagara County

 

Spancrete Northeast, Inc. (Oldcastle)

South Bethlehem – Albany County

 

St. Joseph’s Hospital Health Center

Syracuse – Onondaga County

 

Syracuse University

Syracuse – Onondaga County

 

Welch Allyn Data Collection Inc.

Skaneateles Falls – Onondaga County

     

 

5.                   Power for Jobs Reconsideration

 

6.                   Recommendation to Extend Two Existing

                Economic Development Power Program Customers

 

Long Island Power Authority – Service Territory

Stellex Monitor Aerospace Corp.

Amityville – Suffolk County

 

 

New York State Electric and Gas – Service Territory

Racemark International, Inc.

Malta – Saratoga County

 

 

 

 

 

 

7.                   Energy Cost Savings Benefits Recommendations

 

A.                  Companies in Job Compliance

 

Long Island Power Authority – Service Territory

Stellex Monitor Aerospace Corp.

Amityville – Suffolk County

 

 

National Grid – Service Territory

Middleport Cold Storage

Middleport – Herkimer County

 

 

   

 

 

 

 

 

 

 

 

 

 

B.            Company Not in Job Compliance

 

New York State Electric and Gas – Service Territory

Racemark International, Inc.

Malta – Saratoga 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)

Bernard P. McGarry, Member (Albany, NY)

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

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

 

 

Also in attendance were:

Eugene W. Zeltmann                           President and Chief Executive Officer, NYPA

Timothy S. Carey                                 Chief Operating Officer, NYPA

David E. Blabey                                    Executive Vice President, Secretary and General Counsel, NYPA

Carmine J. Clemente                             Deputy Secretary and Deputy General Counsel, NYPA

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

Gary Paslow                                          Vice President – Governmental Affairs & Policy Development

Angela D. Graves                                 Deputy Secretary, NYPA

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

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

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

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

Niko Ladopoulos                                 Legislative Liaison – Public & Governmental Affairs, NYPA

Bonnie Fahey                                       Executive Administrative Assistant, NYPA

Mary Jean Frank                                  Associate Secretary, NYPA

Lorna M. Johnson                               Assistant Secretary, NYPA

Michael A. Saltzman                            Senior Information Specialist, NYPA

Lynnette J. Taylor                                Senior Legal Secretary, NYPA

Michael J. Santarcangelo                    Director – Energy Policy, ESDC


 

1.                   Adoption of Minutes

The minutes of the meeting of December 13, 2005, were unanimously adopted.

 
 

2.                   Report from the Chairman

Chairman McCullough said that staff had finally received the transcript from the October Assembly hearing.  Staff reviewed the transcript and feels that the reconsideration criteria EDPAB adopted are very consistent with the recommendations made at the hearing, so there is no need to amend the criteria at this time.

 

 

 3.                   Power for Jobs Extended Benefits  Recommendation for Contract Extension
 

The members of the Board considered one application for extended benefits recommendations for contract extension for a company not in job compliance listed below for Power for Jobs.  Mr. Pasquale explained that some 311 jobs would be impacted.  See Exhibit “3-A.”

In response to a question from Mr. Corbett, Mr. Pasquale said that the power allocation reduction for Display Producers, Inc. was in direct proportion to the number of jobs it fell below its commitment.

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

WHEREAS, the following entity has applied for extended benefits recommendations for a contract extension under the Power for Jobs program:

COMPANY NOT IN JOB COMPLIANCE

 

Con Edison – Service Territory:

Display Producers, Inc.

Bronx – Bronx County

 

 

 

 

 

NOW THEREFORE BE IT RESOLVED, That the Board hereby finds and determines that such application meets 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 one application for extended benefits recommendations for a contract extension discussed herein totaling
300 kW until December 31, 2006.

 

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

The members of the Board reconsidered the 34 applications for full or partial reinstatement of extended benefits recommendations for contract extensions listed below for Power for Jobs.  Mr. Pasquale explained that some 58,071 jobs would be impacted.  See Exhibit “4-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:

Con Edison – Service Territory

92nd Street YM-YWHA

New York – New York County

 

Henry Street Settlement

New York – New York County

 

Kingsbrook Jewish Medical Center

Brooklyn – Kings County

 

Lincoln Center for the Performing Arts

New York – New York County

 

Liz Claiborne, Inc.

New York – New York County

 

Long Island Jewish Medical Center

Manhasset – Nassau County

 

New Museum of Contemporary Art

New York – New York County

New York Presbyterian Hospital

New York – New York County

 

New York University

New York – New York County

 

North General Hospital

New York – New York County

 

NYU Medical Center

New York – New York County

 

Pepsi Cola Bottling Company

College Point – Queens County

 

S. R. Guggenheim Museum

New York – New York County

 

South Street Seaport Museum

New York – New York County

 

Long Island Power Authority – Service Territory

AMETEK Hughes-Treitler Military Corp.

Garden City – Nassau County

 

Enzo Clinical Labs, Inc.

Farmingdale – Suffolk County

 

Good Samaritan Hospital

West Islip – Suffolk County

 

John Hassall, Inc.

Westbury – Nassau County

 

National Grid – Service Territory

Diemolding Corporation

Canastota – Madison County

 

Edward John Noble Hospital

Gouverneur – St. Lawrence County

 

Interface Solutions, Inc.

Fulton – Oneida County

 

LB Furniture Industries, LLC

Hudson – Columbia County

 

Lewis County General Hospital

Lowville – Lewis County

 

Mohawk Paper Mills

Cohoes – Albany County

 

Nathan Littauer Hospital & Nursing Home

Gloversville – Fulton County

 

Natrium Products, Inc.

Cortland – Cortland County

 

Queensboro Farm Products, Inc. – Canastota

Canastota – Madison County

 

Revere Copper Products

Rome – Oneida County

 

Robinson & Smith, Inc.

Gloversville – Fulton County

 

Snyder Industries, Inc.

N. Tonawanda – Niagara County

 

Spancrete Northeast, Inc. (Oldcastle)

South Bethlehem – Albany County

 

St. Joseph’s Hospital Health Center

Syracuse – Onondaga County

 

Syracuse University

Syracuse – Onondaga County

 

Welch Allyn Data Collection Inc.

Skaneateles Falls – Onondaga 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 34 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 37,474 kW until December 31, 2006.


 

5.                   Power for Jobs Reconsideration

The members of the Board considered the 53 applications for full or partial reconsideration for contract extensions, 16 applications for full or partial reconsideration for electricity savings reimbursements, and 23 applications for full or partial reconsideration for the benefits to remain at the reduced amount listed below for Power for Jobs.  Mr. Pasquale explained that some 18,687 jobs would be impacted.  See Exhibits “5-C1,” “5-C2” and “5-C3.”

Mr. Pasquale said that staff had reviewed approximately 100 requests for reconsideration of the allocation reduction, with each request being reviewed by at least three people.  (If there was no consensus on a given request, Mr. Pasquale would also review it.)  The requests were then assigned to one of three categories:  (1) clearly met the reconsideration criteria, (2) clearly didn’t meet the reconsideration criteria, or (3) not as clear whether reconsideration criteria were met.  Those requests in category (3), most of which claimed that the companies had been affected by regional or global competition, are being recommended to receive one-half of the amount of their allocation that was taken back due to their not meeting their job commitments.  In response to a question from Mr. Corbett, Mr. Pasquale said that staff from Empire State Development Corporation (“ESDC”) did not review any of the requests for reconsideration, but that ESDC staff had reviewed the reconsideration criteria.  In response to a question from Mr. Duncan, Mr. Corbett said that ESDC staff likes to be aware of EDPAB’s actions with regard to companies that ESDC is also working with for consistency’s sake.

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

WHEREAS, the following entities have applied for reconsideration for full or partial reinstatement under the Power for Jobs program:

CONTRACT EXTENSIONS

 

Albany International Corp.

Albany

 

Amsterdam Printing & Litho

Amsterdam

 

Beechnut Nutrition Corp.

Canajoharie

 

Blasch Precision Ceramics

Albany

 

Byrne Dairy, Inc.

Syracuse

 

Climax Manufacturing Co.

Carthage

 

 

Codino’s Italian Foods, Inc.

Scotia

 

Crucible Specialty Metals

Syracuse

 

Eastern Castings Corp.

Cambridge

 

Elmira College

Elmira

 

Hadco (Sanmina)

Oswego

 

Hadco Corp.

Oswego

 

Harding Manufacturing Corporation

Rome

 

Henry Modell Inc. / Modell’s NY Inc.

Bronx

 

Kaz Incorporated

Hudson

 

Keymark Corporation

Fonda

 

Little Falls Hospital

Little Falls

 

Novapak Corporation

Philmont

 

Orion Bus Industries

Oriskany

 

Producto Machine Company – Ring & Pierce

Jamestown

 

Quebecor World Buffalo, Inc.

Depew

 

Richards Machine Tool Co., Inc.

Lancaster

 

Roberson Memorial, Inc.

Binghamton

 

Rome Specialty Company, Inc.

Rome

 

Samaratin Medical Center

Watertown

Schoolhouse Companies

Gloversville

 

Staroba Plastic & Metal Products

Holland

 

The Jewish Museum

New York

 

Universal Instruments Corporation

Binghamton

 

American Pipe & Plastics, Inc.

Binghamton

 

Auburn Vacuum Forming Co., Inc.

Auburn

 

BSU, Inc.

Ithaca

 

Buflovak, LLC

Buffalo

 

 

Canterbury Printing Company of Rome, Inc.

Rome

 

Carville National Leather Corp.

Johnstown

 

Chapin Watermatics, Inc.

Watertown

 

Cherry Creek Woodcraft, Inc.

South Dayton

 

CWR Manufacturing, Co.

Syracuse

 

Deck Bros., Inc.

Buffalo

 

Exolon-ESK Company

Tonawanda

 

Hardinge Inc.

Elmira

 

ILC Data Device Corporation

Bohemia

 

International Fiber Corporation

North Tonawanda

 

ITT Standard

Cheektowaga

 

Kintz Plastics, Inc.

Howes Cave

 

Knowlton Specialty Paper

Watertown

 

Lancaster Knives, Inc.

Lancaster

 

Niagara Fiberboard, Inc.

Lockport

 

Par Foam Products, Inc.

Buffalo

 

Sabin Metal Corporation

Scottsville

 

Schilling Forge, Inc.

Syracuse

 

Tompkins Metal Finishing, Inc.

Batavia

W.W. Custom Clad, Inc.

Canajoharie

 

 

 

ELECTRICITY SAVINGS REIMBURSEMENTS

 

Audiosears

Stamford

 

Dodge-Graphic Pres Inc.

Utica

 

Fitzpatrick & Weller, Inc.

Ellicotville

 

 

Kilian

Syracuse

 

Manitoba

Lancaster

 

Norampac

Maspeth

 

Quad Graphics

Saratoga Springs

 

Seneca Foods Corporation

Marion

 

Syroco

Baldwinsville

 

Utica Corp. (TECT)

Whitesboro

 

Vail Ballou Press (Maple-Vail Book Manuf)

Binghamton

 

 

Cooper Industries (Crouse-Hinds)

Syracuse

 

Jada

Rochester

 

Lydall Manning

Green Island

 

Specialized Packaging Group

Baldwinsville

 

Syracuse China

Syracuse

 

 

BENEFITS TO REMAIN AT REDUCED AMOUNT

 

A.T. Reynolds (Leisure Time)

Kiamesha Lake

 

Accumed Technologies, Inc.

Buffalo

 

B.H. Aircraft Company, Inc.

Ronkonkoma

 

Canajo Manufacturing Company

Canajoharie

 

Dupli Envelopes & Graphics, Corp.

Syracuse

 

F.P. Pla Tool & Manufacuring Co.

Buffalo

 

Graphic Controls LP, A Tyco Int. LT

Buffalo

 

Hebeler Corporation

Tonawanda

Indian Country Inc.

Deposit

 

J.C. Plastics, Inc.

Rochester

 

Marlette National Corporation

Buffalo

 

Metalico, Inc.

Buffalo

Metweld

Altamont

 

Midstate Spring, Inc.

Syracuse

 

Niagara Gear Corp.

Kenmore

 

NIBCO, Inc.

South Glens Falls

 

Pearl Leather Finishers, Inc.

Johnstown

 

Remarketing Services (Fiserv)

Amherst

 

Rich Plain Food Service, Inc.

Clark Mills

 

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

Niagara Falls

Spray Nine Corporation

Johnstown

 

Stella D’Oro Biscuit Co., Inc.

Bronx

 

Syracuse Label Co., Inc.

Liverpool

       

 

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 53 applications for full or partial reconsideration for contract extensions; 16 applications for full or partial reconsideration for electricity savings reimbursements and 23 applications for full or partial reconsideration for the benefits to remain at the reduced amount discussed herein totaling 53,988 kW until December 31, 2006.
 

6.                   Recommendation to Extend Two Existing Economic Development Power Program Customers

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 two existing economic development power program customers, as listed in Exhibit “6-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 customers detailed in Exhibit “5-A” have allocation contracts, previously recommended by the Power Allocation Board and approved by the Power Authority Trustees, that expire prior to December 31, 2006.  We are requesting the Power Allocation Board to recommend that the Trustees extend these agreements until December 31, 2006 so that the customers may receive the benefits associated with the recently passed law.  The extension will help maintain costs and enable the customers 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 extensions to the term of service to December 31, 2006 for the two existing economic development power program customers, as listed in Exhibit “6-A.”

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

WHEREAS, two customers have applied for extensions to their existing Economic Development Power contracts;

Racemark International, Inc., Malta – Saratoga County

Stellex Monitor Aerospace Co., Amityville – Suffolk County

NOW THEREFORE BE IT RESOLVED, That the Board hereby finds and determines that such applications meet 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 2,250 kW to extend the existing contract of the business listed on Exhibit “6-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.

 

7.                   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 three companies as listed in Exhibit “7-A.”

 

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 three organizations listed in Exhibit “7-A” have agreed to retain more than 500 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 all the companies participating in the program 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 three businesses listed in Exhibit “7-A.”

Mr. Pasquale said that all of the companies that were eligible to apply for economic development power contract extensions and Energy Cost Savings Benefits (“ECSBs”) have now done so and that EDPAB will have no more ECSB applications to consider unless legislation is passed extending them.

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 three applications for energy cost savings benefits discussed herein totaling 2,550 kW until December 31, 2006.

 


 

8.                   Other Business

 

                Chairman McCullough said that staff has been trying to get information out to the EDPAB members sooner so that the members have more time to review it before the EDPAB meetings.  He also urged the other EDPAB members to feel free to call him if they had any issues they would like to discuss.


 

9.                   Next Meeting

 

                The next meeting of the Board is to be determined.

 

 

 

 

 1-06MINS