ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

MINUTES

February 26, 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

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

DMJM Harris, 605 Third Avenue, New York, NY

1. Approval of the Minutes of the Meeting of January 30, 2007

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

A. COMPANIES IN JOB COMPLIANCE

Con Edison - Service Territory

Beth Israel Medical Center New York - New York County Charmer Industries, Inc. Astoria – Queens County

Lincoln Center of the Performing Arts New York – New York County New York Presbyterian Hospital New York - New York County

Long Island Power Authority - Service Territory

Bruce’s Bakery Great Neck – Nassau County Good Samaritan Hospital West Islip – Suffolk County IWCO Direct (Fala Direct) Melville – Suffolk County

Madelaine Chocolates Rockaway Beach – Queens County Silver Lake Cookie Co. Islip – Suffolk County

National Grid - Service Territory

Bristol-Myers Squibb Company East Syracuse - Onondaga County Edward John Noble Hospital Gouverneur – St. Lawrence County Fiber Glass Industries Inc. Amsterdam – Montgomery County Lewis County General Hospital Lowville – Lewis County Mohawk Paper Mills Cohoes – Albany County Nathan Littauer Hospital & Nursing Home Gloversville – Fulton County Organichem, Inc. Rensselaer – Rensselaer County

Queensboro Farm Products, Inc. – Canastota Canastota – Madison County Revere Copper Products Rome – Oneida County Robison & Smith, Inc. Gloversville – Futon County Sorrento Lactalis, Inc. Buffalo – Erie County St. Joseph’s Hospital Health Center Syracuse – Onondaga County Welch Allyn Data Collections Inc. Skaneateles Falls – Onondaga County

New York State Electric and Gas – Service Territory

Agri-Mark, Inc.

Chateaugay – Franklin County

B. COMPANIES NOT IN JOB COMPLIANCE

National Grid - Service Territory

Dielectric Laboratories, Inc. Cazenovia - Madison County Fitzpatrick & Weller, Inc. Ellicoltville – Cattaraugus County Kilian Manufacturing Corporation Syracuse – Onondaga County Oldcastle Precast Inc. (Spancrete Northeast) South Bethlehem – Albany County

Quad Graphic, Inc. Saratoga Springs – Saratoga County Standard Manufacturing Co., Inc. Troy – Rensselaer County Syracuse China Company Syracuse – Onondaga County

New York State Electric and Gas – Service Territory

A.T. Reynolds & Sons, Inc.

Kiamesha Lake – Sullivan County

3. Transfers of Industrial Power

CoolBrands Dairy, Inc North Lawrence – St. Lawrence County International Business Machines Corporation White Plains – Westchester County

Photociruits Corp. Glen Cove – Nassau County Universal Linen Service Co. Inc Rome – Oneida County

OTHER BUSINESS

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

4) DMJM Harris, 605 Third Avenue, New York, 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, (Fort Myers, FL)

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

Also in attendance were:

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

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

Anne B. Cahill Corporate Secretary, NYPA

Dennis T. Eccleston Chief Information Officer, NYPA

Angela D. Graves Deputy Corporate Secretary, NYPA

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

Michael A. Saltzman Director – Media Relations, NYPA

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

Joanne Willmott Manager – Community Relations, NYPA

Niko P. Ladopoulos Legislative Liaison, NYPA

Mary Jean Frank Associate Secretary, NYPA

Jack Murphy Temporary PR Counsel, NYPA

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

1. Adoption of Minutes

The minutes of the meeting of January 30, 2007, were unanimously adopted.

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

The members of the Board reconsidered the 31 applications for extended benefits recommendations for electricity savings reimbursements listed below for Power for Jobs. Mr. Pasquale explained that some 32,850 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
Beth Israel Medical Center New York - New York County Charmer Industries, Inc. Astoria – Queens County	Lincoln Center of the Performing Arts New York – New York County New York Presbyterian Hospital New York - New York County

Long Island Power Authority - Service Territory
Bruce’s Bakery Great Neck – Nassau County Good Samaritan Hospital West Islip – Suffolk County IWCO Direct (Fala Direct) Melville – Suffolk County	Madelaine Chocolates Rockaway Beach – Queens County Silver Lake Cookie Co. Islip – Suffolk County

National Grid – Service Territory
Bristol-Myers Squibb Company East Syracuse - Onondaga County Edward John Noble Hospital Gouverneur – St. Lawrence County Fiber Glass Industries Inc. Amsterdam – Montgomery County Lewis County General Hospital Lowville – Lewis County Mohawk Paper Mills Cohoes – Albany County Nathan Littauer Hospital & Nursing Home Gloversville – Fulton County Organichem, Inc. Rensselaer – Rensselaer County	Queensboro Farm Products, Inc. – Canastota Canastota – Madison County Revere Copper Products Rome – Oneida County Robison & Smith, Inc. Gloversville – Futon County Sorrento Lactalis, Inc. Buffalo – Erie County St. Joseph’s Hospital Health Center Syracuse – Onondaga County Welch Allyn Data Collections Inc. Skaneateles Falls – Onondaga County

New York State Electric and Gas – Service Territory

Agri-Mark, Inc.

Chateaugay – Franklin County

COMPANIES NOT IN JOB COMPLIANCE

National Grid – Service Territory
Dielectric Laboratories, Inc. Cazenovia - Madison County Fitzpatrick & Weller, Inc. Ellicoltville – Cattaraugus County Kilian Manufacturing Corporation Syracuse – Onondaga County Oldcastle Precast Inc. (Spancrete Northeast) South Bethlehem – Albany County	Quad Graphic, Inc. Saratoga Springs – Saratoga County Standard Manufacturing Co., Inc. Troy – Rensselaer County Syracuse China Company Syracuse – Onondaga County

New York State Electric and Gas – Service Territory

A.T. Reynolds & Sons, Inc.

Kiamesha Lake – Sullivan 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 31 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 40,143 kW until June 30, 2007.

3. Transfers of Industrial Power 

SUMMARY

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

BACKGROUND

The Power Allocation Board is requested to approve the transfer of power allocations for four existing companies that have changed names and/or locations for various business reasons. The Power Allocation Board has approved transfers of this nature at past meetings.

DISCUSSION

The proposed transferees are as follows:

CoolBrands Dairy, Inc. (“CoolBrands”), located in North Lawrence and in business since the early 1900s under various owners, produces cultured dairy products, cottage cheese and flavored yogurts. The Power Allocation Board approved a 1,000 kW Power for Jobs allocation with 140 jobs in September 1998 to Kraft Foods. In June 2005, the Power Allocation Board approved a transfer of the allocation to CoolBrands, based on the purchase of assets and liabilities associated with the North Lawrence site in March 2005. CoolBrands agreed to honor all contract terms and conditions of the allocation agreement and continue manufacturing similar products. Recently, CoolBrands completed the sale of its assets and liabilities to North Lawrence Dairy, Inc., a subsidiary of Breyers Yogurt Company. The company will remain named North Lawrence Dairy, Inc. The company agrees to comply with all obligations to the Authority associated with its allocation and will continue to manufacture the same or similar products in the same facility.

International Business Machines Corporation (“IBM”), located in White Plains, which provides advanced information services, products and technologies, uses the 1133 Westchester Avenue location as a sales and distribution support center for North America. IBM was awarded a 4.4 MW PFJ allocation for 1,884 jobs by the Trustees at their meeting on January 27, 1998. The company applied for an electricity savings reimbursement for this allocation, which the Trustees approved at their meeting on July 26, 2005, and have continued to approve since then. IBM wishes to reallocate the 4.4 MW, as it has transferred almost all of the jobs from the current location to three other locations: North Castle (2.4 MW), Corporate Headquarters (1.9 MW) and the IBM Learning Facility (100 kW). IBM agrees to comply with its obligations to the Authority associated with this electricity savings reimbursement.

Photocircuits Corp. (“Photocircuits”), located in Glen Cove and in business since 1986, is the largest manufacturer on Long Island and one of the largest independent printed circuit board manufacturers with primary production still in the U. S. The Trustees approved a 4,000 kW PFJ allocation in return for 2,028 jobs at their meeting on March 31, 1998, and further extended the contract in 2001. Photocircuits had all of its assets acquired through bankruptcy by the American Pacific Financial Corporation (“AMPAC”) on March 28, 2006. The new company will continue to use the Photocircuits name and remain at the same location. The company chose the electricity savings reimbursement option for receiving PFJ extended benefits. Photocircuits was below its job commitment in the application for PFJ extended benefits and had its allocation eligible for rebate reduced, as per the 2005 PFJ legislation, to 2,800 kW, but the company petitioned for full reinstatement to 4,000 kW with 983 jobs, which was approved by the Trustees at their meeting on March 28, 2006. The company will honor all commitments to the Authority associated with its PFJ allocation.

Universal Linen Service Co., Inc. (“Universal”), located in Rome and in business since 1972, provides commercial laundry services to the healthcare, hotel and restaurant industries. The Trustees approved a 175 kW PFJ allocation for 71 jobs at their meeting on March 30, 1999. Universal was ineligible for an extension or reimbursement after its contract expired in March 2004 due to it being more than 10% below its employment commitment, as provided for in the 2005 legislation. However, Universal became eligible for a reduced allocation for 2006 and was approved for 150 kW for 63 jobs by the Trustees at their meeting on September 20, 2005. Universal was approved for 2007 extended benefits by the Trustees at their meeting on November 28, 2006, for 150 kW for 30 jobs. R & S Textile Services, Inc. purchased all of Universal’s land, buildings and equipment on July 1, 2006. The company agrees to honor all terms of the agreement with the Authority and will be named R & S Textile Services, Inc.

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 the three facilities to which IBM wanted to transfer its Power for Jobs allocation were all located in Armonk, Westchester County.

Following consideration of such recommendations, the Members of the Board present voted unanimously to adopt the following resolution:

RESOLVED, That the members of the Economic Development Power Allocation Board hereby approve the transfer of power allocations for four existing companies that have changed names and/or locations for various business reasons as described in the above memorandum to the Board.

4. Next Meeting

The next meeting of the Board is to be determined.