ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

MINUTES

June 27, 2006

Video Conference – 9:00 a.m.

New York Power Authority Offices:

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

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

Niagara Power Project, 5777 Lewiston Road, Lewiston, NY

1. Approval of the Minutes of the Meeting of May 23, 2006

2. Power for Jobs Extended Benefits Recommendations

for Electricity Savings Reimbursements

A. Companies in Job Compliance

Con Edison – Service Territory
Charmer Industries 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 Lincoln Center for the Performing Arts New York – New York County Long Island Jewish Medical Center Manhasset – Nassau County Memorial Sloan-Kettering Cancer Center New York – New York County	Mount Sinai Medical Center New York – New York County New York Presbyterian Hospital New York – New York County North General Hospital New York – New York County Pepsi Cola Bottling Company College Point – Queens County S.R. Guggenheim Museum New York – New York County The Harlem School for the Arts New York – New York County The Joyce Theater Foundation New York – New York County
National Grid – Service Territory
Borg Warner-Cortland Cortland – Cortland County Bristol-Myers Squibb East Syracuse – Onondaga County Clarkson University Potsdam – St. Lawrence County Diemolding Corporation Canastota – Madison County Edward John Noble Hospital Gouverneur – St. Lawrence County Fiber Glass Industries Amsterdam – Herkimer County Lewis County General Hospital Lowville – Lewis County		Natrium Products, Inc. Cortland – Cortland County OAB Holdings, Inc. Buffalo – Erie County Organichem, Inc. Rensselaer – Rensselaer County Queensboro Farm Products Canastota – Madison County Robison & Smith, Inc. Gloversville – Fulton County Sorrento Lactalis Buffalo – Erie County Syracuse University Syracuse – Onondaga County
New York State Electric and Gas – Service Territory
Agri-Mark, Inc. Chateaugay – Franklin County Borg Warner – Ithaca Ithaca – Tompkins County Candlelight Cabinetry, Inc. Lockport – Niagara County		Consumers Beverages, Inc. Buffalo – Erie County Seneca Foods Corporation – Geneva Geneva – Ontario County

B. Companies Not in Job Compliance

Con Edison – Service Territory
AT&T White Plains – Westchester County	Norampac - NYC Maspeth - Queens County
National Grid – Service Territory
CWM Chemical Services, LLC Model City – Niagara County Dielectric Laboratories, Inc. Cazenovia – Madison County Fitzpatrick & Weller, Inc. Ellicottville – Cattaraugus County Kilian Manufacturing Corporation Syracuse – Onondaga Lydall Manning Green Island – Albany County McLane Eastern Baldwinsville – Onondaga County	Quad Graphics, Inc. Saratoga Springs – Saratoga County Standard Manufacturing Troy – Rensselaer County Syracuse China Syracuse – Onondaga County Syroco, Inc. – A Subsidiary of Vassallo Industries Baldwinsville – Onondaga County Turbine Components Technologies Whitesboro – Oneida County
New York State Electric & 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
International Business Machines – Rochester Rochester – Monroe County

3. Power for Jobs Extended Benefits Reconsideration

Electricity Savings Reimbursements:

Dielectric Laboratories, Inc.

Higbee, Inc.

IE Electronics Corp.

Benefits to Remain at Reduced Amount:

Kraft Foods

4. Transfers of Industrial Power

Harding Manufacturing Corporation

Seybert Nicholas Printing Group, LP

Spancrete Northeast, Inc.

OTHER BUSINESS

5. 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 (Absent)

Also in attendance were:

Thomas J. Kelly Executive Vice President and General Counsel, NYPA

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

Anne B. Cahill Corporate Secretary, NYPA

Joseph C. Carline Assistant General Counsel, NYPA

Angela D. Graves Deputy Corporate Secretary, NYPA

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

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

Michael A. Saltzman Director – Media Relations, NYPA

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

Mary Jean Frank Associate Corporate Secretary, NYPA

Jeffrey Carey Special Assistant to the President and Chief Executive Officer, NYPA

Michael J. Santarcangelo Director – Energy Policy, Empire State Development Corporation

1. Adoption of Minutes

The minutes of the meeting of May 23, 2006, were unanimously adopted.

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

The members of the Board reconsidered the 51 applications for extended benefits recommendations for electricity savings reimbursements listed below for Power for Jobs. Mr. Pasquale explained that some 60,141 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
Charmer Industries 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 Lincoln Center for the Performing Arts New York – New York County Long Island Jewish Medical Center Manhasset – Nassau County Memorial Sloan-Kettering Cancer Center New York – New York County	Mount Sinai Medical Center New York – New York County New York Presbyterian Hospital New York – New York County North General Hospital New York – New York County Pepsi Cola Bottling Company College Point – Queens County S.R. Guggenheim Museum New York – New York County The Harlem School for the Arts New York – New York County The Joyce Theater Foundation New York – New York County
National Grid – Service Territory
Borg Warner-Cortland Cortland – Cortland County Bristol-Myers Squibb East Syracuse – Onondaga County Clarkson University Potsdam – St. Lawrence County Diemolding Corporation Canastota – Madison County Edward John Noble Hospital Gouverneur – St. Lawrence County Fiber Glass Industries Amsterdam – Herkimer County Lewis County General Hospital Lowville – Lewis County		Natrium Products, Inc. Cortland – Cortland County OAB Holdings, Inc. Buffalo – Erie County Organichem, Inc. Rensselaer – Rensselaer County Queensboro Farm Products Canastota – Madison County Robison & Smith, Inc. Gloversville – Fulton County Sorrento Lactalis Buffalo – Erie County Syracuse University Syracuse – Onondaga County
New York State Electric and Gas – Service Territory
Agri-Mark, Inc. Chateaugay – Franklin County Borg Warner – Ithaca Ithaca – Tompkins County Candlelight Cabinetry, Inc. Lockport – Niagara County		Consumers Beverages, Inc. Buffalo – Erie County Seneca Foods Corporation – Geneva Geneva – Ontario County

COMPANIES NOT IN JOB COMPLIANCE

Con Edison – Service Territory
AT&T White Plains – Westchester County	Norampac Maspeth – Queens County
National Grid – Service Territory
CWM Chemical Services, LLC Model City – Niagara County Dielectric Laboratories, Inc. Cazenovia – Madison County Fitzpatrick & Weller, Inc. Ellicottville – Cattaraugus County Kilian Manufacturing Corporation Syracuse – Onondaga Lydall Manning Green Island – Albany County McLane Eastern Baldwinsville – Onondaga County	Quad Graphics, Inc. Saratoga Springs – Saratoga County Standard Manufacturing Troy – Rensselaer County Syracuse China Syracuse – Onondaga County Syroco, Inc. – A Subsidiary of Vassallo Industries Baldwinsville – Onondaga County Turbine Components Technologies Whitesboro – Oneida County
New York State Electric & Gas – Service Territory
A. T. Reynolds & Sons, Inc. Kiamesha Lake – Sullivan County Audio Sears Stamford – Delaware County	Endicott Interconnect Technology Endicott - Broome County Vail Ballou Press, Inc. Binghamton – Broome County
Rochester Gas & Electric – Service Territory
International Business Machines - Rochester Rochester - Monroe 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 51 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 66,639 kW until December 31, 2006.

3. Power for Jobs Extended Benefits Reconsideration

The members of the Board considered the application for full or partial reconsideration for electricity savings reimbursements for 3applicants and benefits to remain at reduced amount for 1 applicant listed below for Power for Jobs. Mr. Pasquale explained that some 498 jobs would be impacted. See Exhibits “3-A” and “3-B.”

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

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

Electricity Savings Reimbursements:

Dielectric Laboratories, Inc.

Higbee, Inc.

IE Electronics Corp.

Benefits to Remain at Reduced Amount:

Kraft Foods

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 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 application for full or partial reconsideration for electricity Savings reimbursements and for benefits to remain at reduced amount discussed herein totaling 1,960 kW until December 31, 2006.

Mr. Pasquale presented the highlights of staff’s recommendations to the Board. Staff has sent 200 letters regarding the reconsideration process to companies whose PFJ allocations were reduced. Of that number, 108 companies have sent in applications for reconsideration. Of those 108, 77% have received full or partial reinstatement of their allocations.

4. Transfers of Industrial Power

MEMORANDUM TO MEMBERS OF THE BOARD

SUMMARY

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

BACKGROUND

The Power Allocation Board is requested to approve the transfer of power allocations for three existing customers that have changed their names for various business reasons. The Power Allocation Board has approved transfers of this nature at past meetings.

DISCUSSION

The proposed transferees are as follows:

Harding Manufacturing Corporation, (“Harding”) is a custom plastic injection molding company located in Rome. At their meeting of January 30, 2001, the Trustees approved Harding for a 300 kW Power for Jobs (“PFJ”) allocation in return for 97 jobs. Harding has changed its name to HMC International, LLC (“HMC”) due to a change in ownership via an asset-only acquisition. Although Harding was below job commitment, the company’s PFJ extended benefits went through the reconsideration process and at the January 31, 2006 Trustee meeting it was approved to have its allocation fully restored. Business will continue at the same site and the main operation of the company will remain the same. HMC plans to produce many new products and also add equipment upgrades that will enhance and improve service and dependability, leading to additional growth in sales and employment. HMC plans to invest a minimum of $100,000 in new production and computer equipment upgrades. HMC will honor all contract terms and conditions, including job commitments.

Seybert Nicholas Printing Group, LP (“Seybert”), located in Manhattan, is in the printing trade services. At their meeting of January 26, 2000, the Trustees approved Seybert for a 400 kW PFJ allocation in return for 194 jobs. Seybert merged with Tanagraphics, Inc. and now does business under the new name, TanaSeybert, LLC (“TanaSeybert”). The merger will make the company a premier provider of commercial and digital printing, advertising prepress services and bindery and mailing services. The merger consolidated the assets and liabilities of both entities. After the merger, the company spent more than $5 million on renovations and relocation and now does business at 525 West 52^nd Street, New York. The company also invested $3 million in new equipment. There will be no change in operation. TanaSeybert will honor all contract terms and conditions, including job commitments.

Spancrete Northeast, Inc., (“Spancrete”), located in South Bethlehem, specializes in precast products and installation. At their meeting of September 28, 1998, the Trustees approved a 350 kW PFJ allocation for Spancrete in return for 94 jobs. Spancrete merged with Oldcastle Precast Inc. (“Oldcastle”), but operations will not be changed. The company will continue doing business at the same site and plans no changes to the employment level. Oldcastle agrees to 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.

Mr. Pasquale presented the highlights of staff’s recommendations to the Board. In response to a question from Mr. Duncan, Mr. Pasquale said that all of these companies would be receiving their full PFJ allocations.

The recommendation was unanimously adopted by members of the Board present.

5. Next Meeting

The next meeting of the Board is to be determined.

6-06MINS