ECONOMIC DEVELOPMENT POWER
ALLOCATION BOARD
MINUTES
July
31, 2007
Video
Conference – 10:00 a.m.
MJM
Harris,
1. Approval
of the Minutes of the Meeting of June 25, 2007
2. Power for Jobs Extended Benefits
Recommendations
for Electricity Savings
Reimbursements
A. COMPANIES
IN JOB COMPLIANCE
Con
Edison -
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Bowne & Co. Charmer Industries, Inc. |
Norampac New York City, Inc. Maspeth - Pepsi Cola Bottling Company College Point – |
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Long Island Power Authority -
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American Technical Ceramics Huntington Station – Fortunoff Uniondale – West Islip – J.P. Morgan/Chase Uniondale – |
Kozy Shack, Inc. Hicksville – Manhasset – Ultimate Precision Metal Farmingdale – |
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National Grid –
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Applied Energy Solutions (CEN Electronics) Caledonia – Cascades Tissue Group Cooper Hand Tools Cooper Industries (Cooper Crouse-Hinds) Dielectric Laboratories, Inc. Cazenovia – Higbee, Inc. Interface Solutions, Inc. Lydall Manning McLane Eastern Baldwinsville – |
Mohawk Paper Mills Natrium Products, Inc. Precision Systems Mfg., Inc. Liverpool – Robison & Smith, Inc. Specialized Packaging Radisson, Inc. Baldwinsville - Standard Manufacturing Co., Inc. Syracuse Plastics, Inc. Liverpool – Vicks Lithograph & Printing Yorkville – Welch Allyn Data Collection, Inc. Skaneateles Falls – |
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A.T. Reynolds & Sons, Inc. Agri-Mark, Inc. Audio Sears |
Candlelight Cabinetry, Inc. Consumers Beverages, Inc |
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B. COMPANIES
NOT IN JOB COMPLIANCE
Con Edison –
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National Grid –
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Fitzpatrick & Weller, Inc. Ellicottville – |
Kilian Manufacturing Corp. |
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Air-Flo Manufacturing Prattsburgh – Egli Machine, Inc. |
Kraft Foods Walton – |
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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)
2)
3)
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 – (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
SUMMARY
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”.”
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. 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.
DISCUSSION
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
RECOMMENDATION
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.