ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

April 24, 2007

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

Fort Myers Interactive Video, 1408 Bayview Ct., Fort Myers, FL

 

 

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 - Service Territory

 

Acme Smoked Fish Corp.

Brooklyn - Kings County

 

Ballet Hispanico

New York - New York County

 

Belmont Metals, Inc.

Brooklyn - Kings County

 

Charmer Industries, Inc.

Astoria - Queens County

 

Continental Food Products, Inc.

Flushing - Queens County

 

Diller-Quaile School of Music

New York - New York County

 

Home for Contemporary Theater & Art

New York - New York County

Jacmel Jewelry, Inc.

Long Island City - Queens County

 

Liz Claiborne, Inc.

New York - New York County

 

Manhattan School of Music

New York - New York County

 

Marymount College

Tarrytown - Westchester County

 

NYU Medical Center

New York - New York County

 

The Brooklyn Historical Society

Brooklyn - Kings County

 

 

 

 

Long Island Power Authority - Service Territory

 

Commercial Envelope Manufacturing Corp.

Deer Park - Suffolk County

 

Kozy Shack, Inc.

Hicksville - Nassau County

Standard Microsystems Corp.

Hauppauge - Suffolk County

 

Ultimate Precision Metal

Farmingdale - Suffolk County

 

 

 

 


National Grid – Service Territory

 

Bank of New York

Oriskany - Oneida County

 

Cascades Tissue Group

Waterford - Saratoga County

 

Corning, Inc. (Canton)

Canton - St. Lawrence County

 

Diemolding Corporation

Canastota - Madison County

 

General Electric Plastics

Selkirk - Albany County

 

Interface Solutions, Inc.

Fulton - Oswego County

 

OAB Holdings, Inc.

Buffalo - Erie County

 

Organichem, Inc.

Rensselaer - Rensselaer County

 

PCI Paper Conversions, Inc.

Syracuse - Onondaga County

 

 

 

 

 

New York State Electric and Gas – Service Territory

 

Agri-Mark, Inc.

Chateaugay - Franklin County

 

Air-Flo Manufacturing

Prattsburgh - Steuben County

 

Candlelight Cabinetry, Inc.

Lockport - Niagara County

 

Elmira College

ElmiraChemung County

 

Emerson Power Transmission, Corp.

Ithaca - Tompkins County

 

Kraft Foods

CampbellSteuben County

 

Lancaster Knives, Inc.

LancasterErie County

 

Lancaster Steel Services Co. Inc.

LancasterErie County

 

Milward Alloys

Lockport - Niagara County

 

PCB Piezotronic, Inc.

Depew – Wayne County

 

Seneca Foods Corporation

Geneva - Ontario County

 

 

 

 

 

Rochester Gas & Electric – Service Territory

 

J.C. Plastics, Inc.

Rochester - Monroe County

 

 

 

 

B.            COMPANIES NOT IN JOB COMPLIANCE

 

Con Edison - Service Territory

 

American Cancer Society

New York - New York County

 

AT&T

White Plains - Westchester County

 

International Business Machines

White Plains - Westchester County

 

 

 

 

 

National Grid – Service Territory

 

Applied Energy Solutions

Caledonia - Livingston County

 

Cooper Hand Tools

Cortland - Cortland County

 

Cooper Industries

Syracuse - Onondaga County

 

Fitzpatrick & Weller, Inc.

Ellicottville - Cattaraugus County

 

Lydall Manning

Green Island - Albany County

 

McLane Eastern

Baldwinsville - Onondaga County

 

Quad Graphics, Inc.

Saratoga Springs - Saratoga County

 

Syroco, Inc.

Baldwinsville - Onondaga County

 

 

New York State Electric & Gas – Service Territory

 

Custom Electronics, Inc.

Oneonta – Otsego County

 

Norwich Aero Products, Inc.

NorwichChenango County

 

 

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)       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)       Fort Myers Interactive Video, 1408 Bayview Ct., Fort Myers, FL

 

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, (Fort Myers, FL)

 

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 New York State.  In return for commitments to create or retain jobs, successful applicants receive three-year contracts for PFJ electricity.

 

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 December 1, 2004 through the end of the PFJ program on December 31, 2005.

 

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 New York State in exchange for rebates.  The rebate program will be in effect until June 30, 2007, the program’s sunset.

 

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 - Service Territory

Acme Smoked Fish Corp.

Brooklyn - Kings County

 

Ballet Hispanico

New York - New York County

 

Belmont Metals, Inc.

Brooklyn - Kings County

 

Charmer Industries, Inc.

Astoria - Queens County

 

Continental Food Products, Inc.

Flushing - Queens County

 

Diller-Quaile School of Music

New York - New York County

 

Home for Contemporary Theater & Art

New York - New York County

Jacmel Jewelry, Inc.

Long Island City - Queens County

 

Liz Claiborne, Inc.

New York - New York County

 

Manhattan School of Music

New York - New York County

 

Marymount College

Tarrytown - Westchester County

 

NYU Medical Center

New York - New York County

 

The Brooklyn Historical Society

Brooklyn - Kings County

 

 

                               

Long Island Power Authority– Service Territory

Commercial Envelope Manufacturing Corp.

Deer Park - Suffolk County

 

Kozy Shack, Inc.

Hicksville - Nassau County

Standard Microsystems Corp.

Hauppauge - Suffolk County

 

Ultimate Precision Metal

Farmingdale - Suffolk County

 

 

National Grid – Service Territory

Bank of New York

Oriskany - Oneida County

 

Cascades Tissue Group

Waterford - Saratoga County

 

Corning, Inc. (Canton)

Canton - St. Lawrence County

 

Diemolding Corporation

Canastota - Madison County

 

General Electric Plastics

Selkirk - Albany County

 

Interface Solutions, Inc.

Fulton - Oswego County

 

OAB Holdings, Inc.

Buffalo - Erie County

 

Organichem, Inc.

Rensselaer - Rensselaer County

 

PCI Paper Conversions, Inc.

Syracuse - Onondaga County

 

 

 

New York State Electric & Gas – Service Territory

Agri-Mark, Inc.

Chateaugay - Franklin County

 

Air-Flo Manufacturing

Prattsburgh - Steuben County

 

Candlelight Cabinetry, Inc.

Lockport - Niagara County

 

Elmira College

ElmiraChemung County

 

Emerson Power Transmission, Corp.

Ithaca - Tompkins County

 

Kraft Foods

CampbellSteuben County

 

Lancaster Knives, Inc.

LancasterErie County

 

Lancaster Steel Services Co. Inc.

LancasterErie County

 

Milward Alloys

Lockport - Niagara County

 

PCB Piezotronic, Inc.

Depew – Wayne County

 

Seneca Foods Corporation

Geneva - Ontario County

 

 

 

Rochester Gas & Electric – Service Territory

J.C. Plastics, Inc.

Rochester - Monroe County

 

 

 

 

COMPANIES NOT IN JOB COMPLIANCE

               

Con Edison – Service Territory

American Cancer Society

New York - New York County

 

AT&T

White Plains - Westchester County

 

International Business Machines

White Plains - Westchester County

 

 

 

National Grid – Service Territory

Applied Energy Solutions

Caledonia - Livingston County

 

Cooper Hand Tools

Cortland - Cortland County

 

Cooper Industries

Syracuse - Onondaga County

 

Fitzpatrick & Weller, Inc.

Ellicottville - Cattaraugus County

 

Lydall Manning

Green Island - Albany County

 

McLane Eastern

Baldwinsville - Onondaga County

 

Quad Graphics, Inc.

Saratoga Springs - Saratoga County

 

Syroco, Inc.

Baldwinsville - Onondaga County

 

New York State Electric & Gas – Service Territory

Custom Electronics, Inc.

Oneonta – Otsego County

 

Norwich Aero Products, Inc.

NorwichChenango 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 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 information.


4.             Next Meeting

 

                The next meeting of the Board is to be determined.