ECONOMIC DEVELOPMENT POWER
ALLOCATION BOARD
MINUTES
April
24, 2007
Video
Conference – 10:00 a.m.
1. Approval
of the Minutes of the Meeting of March 27, 2007
2. Power for Jobs Extended Benefits
Recommendations
for Electricity Savings
Reimbursements
A. COMPANIES
IN JOB COMPLIANCE
Con
Edison -
|
Acme Smoked Fish Corp. Brooklyn - Ballet Hispanico Belmont Metals, Inc. Brooklyn - Charmer Industries, Inc. Continental Food Products, Inc. Flushing - Home for Contemporary Theater & Art |
Jacmel Jewelry, Inc. Liz Claiborne, Inc. Tarrytown - The Brooklyn - |
Long Island Power Authority -
|
Commercial Envelope Manufacturing Corp. Kozy Shack, Inc. Hicksville - |
Standard Microsystems Corp. Hauppauge - Ultimate Precision Metal Farmingdale - |
|
|
National Grid –
|
Bank of Oriskany - Cascades Tissue Group Corning, Inc. ( Diemolding Corporation Canastota - General Electric Plastics Selkirk - |
Interface Solutions, Inc. OAB Holdings, Inc. Organichem, Inc. Rensselaer - PCI Paper Conversions, Inc. |
|
|
|
Agri-Mark, Inc. Chateaugay - Air-Flo Manufacturing Prattsburgh - Candlelight Cabinetry, Inc. Emerson Power Transmission, Corp. Kraft Foods |
Lancaster Knives, Inc. Lancaster Steel Services Co. Inc. Milward Alloys PCB Piezotronic, Inc. Depew – Seneca Foods Corporation |
|
|
|
J.C. Plastics, Inc. |
|
B. COMPANIES
NOT IN JOB COMPLIANCE
Con
Edison -
|
American Cancer Society AT&T |
International Business Machines |
|
|
National Grid –
|
Applied Energy Solutions Caledonia - Cooper Hand Tools Cooper Industries Fitzpatrick & Weller, Inc. Ellicottville - |
Lydall Manning McLane Eastern Baldwinsville - Quad Graphics, Inc. Syroco, Inc. Baldwinsville - |
|
Custom Electronics, Inc. Oneonta – |
|
OTHER BUSINESS
3. Remarks of Chairman McCullough
4. 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)
4)
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 – 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
Anne B. Cahill Corporate
Secretary, NYPA
Joseph C. Carline Assistant
General Counsel, NYPA
James F. Pasquale Director
– Business Power Allocations, Compliance and Municipal and Cooperative
Marketing, NYPA
Michael A. Saltzman Director
– Media Relations, NYPA
Anthony C. Savino Manager
– Business Power Allocations and Compliance, NYPA
Niko P. Ladopoulos Legislative Liaison, NYPA
Mary Jean Frank Associate Corporate Secretary, NYPA
1. Adoption of Minutes
The minutes of the meeting of March 27, 2007, were unanimously adopted.
2.
Power for
Jobs Extended Benefits Recommendations
for Electricity Savings
Reimbursements
SUMMARY
The Members of the Economic Development Power Allocation Board
(“EDPAB”) are requested to approve extended benefits for 51 Power for Jobs
(“PFJ”) customers as listed in Exhibits “A” and “B.”
BACKGROUND
In July 1997, the New York State Legislature approved a program to
provide low-cost power to businesses and not-for-profit corporations that agree
to retain or create jobs in
The PFJ program originally made 400 megawatts (“MW”) of power
available. The program was to be phased
in over three years, with approximately 133 MW made available each year. In July 1998, as a result of the initial
success of the program, the Legislature amended the PFJ statute to accelerate
the distribution of the power, making a total of 267 MW available in Year One. The 1998 amendments also increased the size
of the program to 450 MW, with 50 MW to become available in Year Three.
In May 2000, legislation was enacted that authorized another 300 MW of
power to be allocated under the PFJ program.
The additional MW were described in the statute as “phase four” of the
program. Customers that received
allocations in Year One were authorized to apply for reallocations; more than
95% reapplied. The balance of the power
was awarded to new applicants.
In July 2002, legislation was signed into law that authorized another
183 MW of power to be allocated under the program. The additional MW were described in the
statute as “phase five” of the program.
Customers that received allocations in Year Two or Year Three were given
priority to reapply for the program. Any
remaining power was made available to new applicants.
Chapter 59 of the Laws of 2004 extended the benefits for PFJ customers whose
contracts expired before the end of the program in 2005. Such customers had to choose to receive an
“electricity savings reimbursement” rebate and/or a power contract
extension. The Authority was also
authorized to voluntarily fund the rebates, if deemed feasible and advisable by
the Trustees.
PFJ customers whose contracts
expired on or prior to November 30, 2004 were eligible for a rebate to the
extent funded by the Authority from the date their contract expired through
December 31, 2005. As an alternative,
such customers could choose to receive a rebate to the extent funded by the
Authority from the date their contract expired as a bridge to a new contract
extension, with the contract extension commencing December 1, 2004. The new contract would be in effect from a
period no earlier than
PFJ customers whose contracts expired after November 30, 2004 were eligible for rebate or contract extension, assuming funding by the Authority, from the date their contracts expired through December 31, 2005.
Approved contract extensions entitled customers to receive the power
from the Authority pursuant to a sale-for-resale agreement with the customer’s
local utility. Separate allocation
contracts between customers and the Authority contained job commitments enforceable
by the Authority.
In 2005, provisions of the approved State budget extended the period
PFJ customers could receive benefits until December 31, 2006. In 2006, a new law (Chapter 645 of the Laws
of 2006) included provisions extending program benefits until June 30, 2007.
Section 189 of the New York State
Economic Development Law, which was amended by Chapter 59 of the Laws of 2004,
provided the statutory authorization for the extended benefits that could be
provided to PFJ customers. The statute
stated that an applicant could receive extended benefits “only if it is in compliance with and agrees to continue to meet the job
retention and creation commitments set forth in its prior power for jobs
contract.”
Chapter 313 of the Laws of 2005 amended the above language to allow EDPAB to consider continuation of benefits on such terms as it deems reasonable. The statutory language now reads as follows:
An applicant shall be eligible for such reimbursements and/or
extensions only if
it is in compliance
with and agrees
to continue to meet the job retention and creation commitments set forth
in its prior power for jobs contract, or such other commitments as
the board deems reasonable. (emphasis supplied)
At its meeting of October 18, 2005, EDPAB approved criteria under which
applicants whose extended benefits EDPAB had reduced for non-compliance with
their job commitments could apply to have their PFJ benefits reinstated in
whole or in part. EDPAB authorized staff
to create a short-form application, notify customers of the process, send customers
the application and evaluate reconsideration requests based on the approved
criteria. To date, staff has mailed 200
applications, received 109 and completed review of 108.
DISCUSSION
EDPAB is requested to recommend that the Authority Trustees approve
electricity savings reimbursements rebates to 51 Power for Jobs customers, 38
of which are meeting their current job commitments and are listed in Exhibit
“A.” However, 13 customers reported
actual job numbers below their contractual commitment. We are recommending that these customers have
their allocation reduced proportionately to their job shortfall where
appropriate. These customers are listed
on Exhibit “B.” Collectively, these
organizations have agreed to retain more than 26,000 jobs in
RECOMMENDATION
It is requested that the Economic Development Power Allocation Board
recommend that the Authority Trustees approve electricity savings
reimbursement rebates to the 51 businesses listed in Exhibits “A” and “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 - |
|
|
Acme Smoked Fish Corp. Brooklyn - Ballet Hispanico Belmont Metals, Inc. Brooklyn - Charmer Industries, Inc. Continental Food Products, Inc. Flushing - Home for Contemporary Theater & Art |
Jacmel Jewelry, Inc. Liz Claiborne, Inc. Tarrytown - The Brooklyn - |
|
|
|
|
Commercial Envelope Manufacturing Corp. Kozy Shack, Inc. Hicksville - |
Standard Microsystems Corp. Hauppauge - Ultimate Precision Metal Farmingdale - |
|
National Grid – |
|
|
Bank of Oriskany - Cascades Tissue Group Corning, Inc. ( Diemolding Corporation Canastota - General Electric Plastics Selkirk - |
Interface Solutions, Inc. OAB Holdings, Inc. Organichem, Inc. Rensselaer - PCI Paper Conversions, Inc. |
|
|
|
|
Agri-Mark, Inc. Chateaugay - Air-Flo Manufacturing Prattsburgh - Candlelight Cabinetry, Inc. Emerson Power Transmission, Corp. Kraft Foods |
Lancaster Knives, Inc. Lancaster Steel Services Co. Inc. Milward Alloys PCB Piezotronic, Inc. Depew – Seneca Foods Corporation |
|
|
|
|
J.C. Plastics, Inc. |
|
COMPANIES
NOT IN JOB COMPLIANCE
|
Con Edison – |
|
|
American Cancer Society AT&T |
International Business Machines |
|
National Grid – |
|
|
Applied Energy Solutions Caledonia - Cooper Hand Tools Cooper Industries Fitzpatrick & Weller, Inc. Ellicottville - |
Lydall Manning McLane Eastern Baldwinsville - Quad Graphics, Inc. Syroco, Inc. Baldwinsville - |
|
|
|
|
Custom Electronics, Inc. Oneonta – |
|
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 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 51 applications
for extended benefits recommendations for electricity savings reimbursements discussed
herein totaling 51,290 kW until June 30, 2007.
3. Remarks of
Chairman McCullough
Chairman McCullough said that he
has not received any official communication regarding the extension of the
Power for Jobs program beyond its current end date of June 30, 2007, but that
he would let the other EDPAB members know as soon as he has any