ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

December 20, 2007

Video Conference – 10:00 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 November 27, 2007

 

 

2.             Power for Jobs Extended Benefits Recommendations

                for Electricity Savings Reimbursements                          

 

A.         COMPANIES IN JOB COMPLIANCE

 

Con Edison - Service Territory

             

                  Elaine Kaufman Cultural Center                                     Long Island Jewish Medical Center

                  New York – New York County                                       Manhasset – Nassau County

 

                  Kingsbrook Jewish Medical Center                              S. R. Guggenheim Museum

                  Brooklyn – Kings County                                              New York – New York County

 

                  Lincoln Center for the Performing Arts

                  New York – New York County

 

 

Long Island Power Authority - Service Territory

 

Good Samaritan Hospital                                                Standard Microsystems Corp.

West Islip – Suffolk County                                          Hauppauge – Suffolk County

 

Kozy Shack, Inc.

Hicksville - Nassau County

National Grid - Service Territory

               

Bank of New York Oriskany – Oneida County   Bison Foods – Div of Upstate Farms Buffalo – Erie County   Kilian Manufacturing Corp. Syracuse – Onondaga County   Nathan Littauer Hospital & Nursing Home Gloversville – Fulton County   PCI Paper Conversions, Inc. Syracuse – Onondaga County

Quad Graphics, Inc. Saratoga Springs – Saratoga County   Queensboro Farm Products, Inc. Canastota – Madison County   Snyder Industries, Inc. North Tonawanda – Niagara County Sorrento Lactalis, Inc. Buffalo – Erie County Welch Allyn Data Collections, Inc. Skaneateles Falls – Onondaga County

 

 

New York State Electric and Gas – Service Territory

 

Audio Sears Stamford – Delaware County   Corning, Inc. (Big Flats) Big Flats – Chemung County   Corning, Inc. (Costar Plant) Oneonta – Otsego County   Corning, Inc. (Southside) Corning – Steuben County   Corning, Inc. (Sullivan Park) Corning – Steuben County

Custom Electronics, Inc. Oneonta - Otsego County   Soucy USA Champlain – Clinton County   Upstate Niagara Cooperative, Inc. Buffalo – Erie County   Vail Ballou Press, Inc. Binghamton – Broome County

 

 

Orange & Rockland - Service Territory

 

International Business Machines

Sterling Forest  – Orange County

 

 

Rochester Gas & Electric – Service Territory

 

International Business Machines

Rochester - Monroe County

 

Newport Rochester

Rochester - Monroe County

 

 

3.     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 (Excused)

 

 

Also in attendance were:

 

Roger B. Kelley                    President and Chief Executive Office, NYPA

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

Gil C. Quiniones                   Executive Vice President – Energy Marketing and Corporate Affairs, NYPA

James H. Yates                     Senior Vice President, Marketing and Economic Development, NYPA

Anne B. Cahill                      Corporate Secretary, NYPA

Joseph C. Carline                 Assistant General Counsel, NYPA

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

James F. Pasquale                Director – Business Power Allocations, Compliance and Municipal and Cooperative                                                            Marketing, NYPA

 

Angela Graves                      Deputy Corporate Secretary, NYPA

Lou Paonessa                       Community Relations Manager, NYPA

Jack Murphy                         Temporary Public Relations Counsel, NYPA

 

1.                    Adoption of Minutes

The minutes of the meeting of November 27, 2007, were unanimously adopted.

 

 

2.             Power for Jobs Program - Extended Benefits

 

                Chairman Frank McCullough noted that the EDPAB meeting scheduled for Tuesday, December 18^th had been canceled due to technical difficulties.  However, at the Power Authority Trustees’ Meeting on December 18^th, the Trustees approved the recommendations about to be made by Mr. James Pasquale, subject to EDPAB’s positive action at this meeting on the recommendations.

SUMMARY

 

The Members of the Economic Development Power Allocation Board (“EDPAB”) are requested to approve extended benefits for 30 Power for Jobs (“PFJ”) customers as listed in Exhibit “A.”

 

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 and increase the size of the program to 450 MW.

 

                In May 2000, legislation was enacted that authorized another 300 MW of power to be allocated under the PFJ program.  Legislation further amended the program in July 2002.

 

                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. 

 

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.  Chapter 645 of the Laws of 2006 included provisions extending program benefits until June 30, 2007.  In 2007, a new law (Chapter 89 of the Laws of 2007) included provisions extending program benefits until June 30, 2008.

 

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. 

 

 

DISCUSSION

 

                EDPAB is requested to recommend that the Authority Trustees approve electricity savings reimbursement rebates to the 30 PFJ customers, all of which are meeting their current job commitment and are listed in Exhibit
“A”.  Collectively, these organizations have agreed too retain more than 27,000 jobs in New York State in exchange for rebates. The rebate program will be in effect until June 30, 2008, the programs’ sunset.

 

RECOMMENDATION

 

It is requested that the Economic Development Power Allocation Board recommend that the Authority Trustees approve the payment of electricity savings reimbursements to the 30 business listed in Exhibit “A”.

 

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       

                  Elaine Kaufman Cultural Center                                    Long Island Jewish Medical Center

                  New York – New York County                                         Manhasset – Nassau County

 

                  Kingsbrook Jewish Medical Center                               S. R. Guggenheim Museum

                  Brooklyn – Kings County                                                New York – New York County

 

                  Lincoln Center for the Performing Arts

                  New York – New York County

 

 

Long Island Power Authority - Service Territory

Good Samaritan Hospital                                                   Standard Microsystems Corp.

West Islip – Suffolk County                                             Hauppauge – Suffolk County

 

Kozy Shack, Inc.

Hicksville - Nassau County

 

 

National Grid - Service Territory   

Bank of New York Oriskany – Oneida County   Bison Foods – Div of Upstate Farms Buffalo – Erie County   Kilan Manufacturing Corp. Syracuse – Onondaga County   Nathan Littauer Hospital & Nursing Home Gloversville – Fulton County   PCI Paper Conversions, Inc. Syracuse – Onondaga County

Quad Graphics, Inc. Saratoga Springs – Saratoga County   Queensboro Farm Products, Inc. Canastota – Madison County   Snyder Industries, Inc. North Tonawanda – Niagara County Sorrento Lactalis, Inc. Buffalo – Erie County Welch Allyn Data Collections, Inc. Skaneateles Falls – Onondaga County

 

New York State Electric and Gas – Service Territory

Audio Sears Stamford – Delaware County   Corning, Inc. (Big Flats) Big Flats – Chemung County   Corning, Inc. (Costar Plant) Oneonta – Otsego County   Corning, Inc. (Southside) Corning – Steuben County   Corning, Inc. (Sullivan Park) Corning – Steuben County

Custom Electronics, Inc. Oneonta - Otsego County   Soucy USA Champlain – Clinton County   Upstate Niagara Cooperative, Inc. Buffalo – Erie County   Vail Ballou Press, Inc. Binghamton – Broome County

 

Orange & Rockland - Service Territory

International Business Machines

Sterling Forest – Orange County

 

 

Rochester Gas & Electric – Service Territory

International Business Machines – Rochester         Newport Rochester

Rochester - Monroe County                                          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 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 30 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 31,215 kW until June 30, 2008.