July 31, 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

                                MJM Harris, 605 Third Avenue, New York, NY



1.             Approval of the Minutes of the Meeting of June 25, 2007


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




Con Edison - Service Territory


Beth Israel Medical Center

New YorkNew York County


Bowne & Co.

New YorkNew York County


Charmer Industries, Inc.

AstoriaQueens County


Columbia University - Trustees

New YorkNew York County


Manhattan School of Music

New YorkNew York County


Mount Sinai Medical Center

New YorkNew York County


New York University

New YorkNew York County


Norampac New York City, Inc.

Maspeth - Queens County


NYU Medical Center

New YorkNew York County


Pepsi Cola Bottling Company

College Point – Queens County






Long Island Power Authority - Service Territory


American Technical Ceramics

Huntington Station – Suffolk County



Uniondale – Nassau County


Good Samaritan Hospital

West Islip – Suffolk County


J.P. Morgan/Chase

Uniondale – Nassau County


Kozy Shack, Inc.

Hicksville – Nassau County


North Shore Health System

Manhasset – Nassau County


Ultimate Precision Metal

Farmingdale – Suffolk County








National Grid – Service Territory


Albany Molecular Research, Inc.

AlbanyAlbany County


Applied Energy Solutions (CEN Electronics)

Caledonia – Livingston County


Cascades Tissue Group

WaterfordSaratoga County


Cooper Hand Tools

CortlandCortland County


Cooper Industries (Cooper Crouse-Hinds)

SyracuseOnondaga County


Dielectric Laboratories, Inc.

Cazenovia – Madison County


Higbee, Inc.

SyracuseOnondaga County


Interface Solutions, Inc.

FultonOswego County


Lydall Manning

Green IslandAlbany County


McLane Eastern

Baldwinsville – Onondaga County


Mohawk Paper Mills

CohoesAlbany County


Nathan Littauer Hospital & Nursing Home

GloversvilleFulton County


Natrium Products, Inc.

CortlandCortland County


Precision Systems Mfg., Inc.

Liverpool – Onondaga County


Robison & Smith, Inc.

GloversvilleFulton County


Specialized Packaging Radisson, Inc.

Baldwinsville - Onondaga County


Standard Manufacturing Co., Inc.

TroyRensselaer County


Syracuse Plastics, Inc.

Liverpool – Onondaga County


Vicks Lithograph & Printing

Yorkville – Oneida County


Welch Allyn Data Collection, Inc.

Skaneateles Falls – Onondaga County







New York State Electric and Gas – Service Territory


A.T. Reynolds & Sons, Inc.

Kiamesha LakeSullivan County


Agri-Mark, Inc.

ChateauguayFranklin County


Audio Sears

StamfordDelaware County


Candlelight Cabinetry, Inc.

LockportNiagara County


Consumers Beverages, Inc

BuffaloErie County






Rochester Gas & Electric – Service Territory


Flower City Printing

RochesterMonroe County










Con Edison – Service Territory


Marymount  College

Tarrytown – Westchester County






National Grid – Service Territory



Fitzpatrick & Weller, Inc.

Ellicottville – Cattaraugus County


Kilian Manufacturing Corp.

SyracuseOnondaga County





New York State Electric & Gas – Service Territory


Air-Flo Manufacturing

Prattsburgh – Steuben County


Egli Machine, Inc.

SidneyOtsego County

Kraft Foods

Walton – Delaware County










3.             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)       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:


James A. Besha                                    Trustee

Robert E. Moses                                  Trustee

Roger B. Kelley                                    President and Chief Executive Officer, NYPA

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

James H. Yates                                     Acting 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

Michael A. Saltzman                            Director – Media Relations, NYPA

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

Mary Jean Frank                                  Associate Secretary, NYPA

Lorna M. Johnson                               Assistant Secretary, NYPA

Keith Corneau                                      Empire State Development Corporation

3.                    Adoption of Minutes

The minutes of the meeting of June 25, 2007, were unanimously adopted.

2.             Power for Jobs Extended Benefits, Energy Cost Savings Benefit

                Awards and Economic Development Power Contracts Extensions




The Members of the Economic Development Power Allocation Board (“EDPAB”) are requested to approve extended benefits for 50 Power for Jobs (“PFJ”) customers as listed in Exhibit “A and “B”.” 




                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. 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.


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.





EDPAB is requested to recommend that the Authority Trustees approve electricity savings reimbursement rebates to the 50 PFJ customers, 43 of which are meeting their current job commitment and are listed in Exhibit “A”.  However, seven 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 70,000 jobs in New York State in exchange for the rebates.  The rebate program will be in effect until June 30, 2008, the program’s sunset. 




It is requested that the Economic Development Power Allocation Board recommend that the Authority Trustees approve electricity savings reimbursements rebates to the 50 business listed in Exhibits “A” and B”.


3.                    Other Business


Chairman McCullough asked Mr. Pasquale to update the other EDPAB members on the status of the extended Power for Jobs (“PFJ”) and Energy Cost Savings Benefit (“ECSB”) programs.  Mr. Pasquale said that at last month’s meeting, the Authority’s Trustees had been asked to approve extension of benefits through the newly legislated June 30, 2008 deadline for all PFJ and ECSB customers.  He said he was happy to announce that there had been a 100% seamless transition in service for all 323 PFJ customers that had asked to have their contracts extended through June 30, 2008, as well as for all ECSB customers.  Chairman McCullough thanked Mr. Pasquale and the rest of the Authority staff involved for a job well done, saying that he knew that it had been quite an accomplishment to achieve this under such intense time pressure, due to the fact that the legislation extending the programs had not been enacted until right before the original program deadline of June 30, 2007.  Mr. Duncan added his congratulations and thanks for the wonderful job staff did.  Mr. Pasquale said that staff has until September 30, 2007 to review all of the extension applications for compliance with program requirements.  Chairman McCullough requested that Mr. Pasquale report back to EDPAB at its September meeting about the outcome of this review. 

4.             Next Meeting


                The next meeting of the Board is to be determined.