ECONOMIC DEVELOPMENT POWER
ALLOCATION BOARD
MINUTES
March
27, 2007
Video
Conference – 10:00 a.m.
1. Approval
of the Minutes of the Meeting of February 26, 2007
2. Power for Jobs Extended Benefits
Recommendations
for Electricity Savings
Reimbursements
A. COMPANIES
IN JOB COMPLIANCE
Central Hudson -
|
Northeast Solite Corp. |
|
Con
Edison -
|
American Ballet Theater |
New Museum of Contemporary Art Pepsi Cola Bottling Company College Point - The |
Long Island Power Authority -
|
EDO Corp. Enzo Clinical Labs, Inc. Farmingdale - |
Madelaine Chocolates |
National Grid –
|
Intertek Testing Services Mount Saint Mary's Hospital |
Natrium Products, Inc. Vicks Lithograph & Printing Yorkville - Welch Allyn Data Collection Inc. Skaneateles Falls - |
|
Candlelight Cabinetry, Inc. Diversified Manufacturing, Inc. Hammond & Irving, Inc. |
Kennedy Valve TMP Technologies, Inc. |
|
Flower City Printing, Inc. |
Hammer Packaging Corp. |
B. COMPANIES
NOT IN JOB COMPLIANCE
Con
Edison -
|
Norampac New York City, Inc. Maspeth - |
|
Long Island Power Authority –
|
Augros, Inc. |
Photocircuits Corporation |
National Grid –
|
Specialized Packaging Radisson, Inc. Baldwinsville - |
|
|
International Business Machines |
|
|
Gorbel Corp. Fishers - |
|
OTHER BUSINESS
3. 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 – Excused
Also in attendance were:
Leonard N. Spano Member
of Board of Trustees, NYPA
Timothy S. Carey President
and Chief Executive Officer, NYPA
Thomas J. Kelly Executive Vice President and General Counsel, NYPA
Gary Paslow Vice
President – Governmental Affairs and Policy Development, NYPA
Anne B. Cahill Corporate
Secretary, NYPA
Angela D. Graves Deputy
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
Joanne Willmott Manager – Community Relations,
NYPA
Niko P. Ladopoulos Legislative Liaison, NYPA
Mary Jean Frank Associate Corporate Secretary, NYPA
Lorna M. Johnson Assistant Corporate Secretary, NYPA
Lynnette J. Taylor Senior Legal Secretary, NYPA
Jeffrey Carey Special Assistant to President and Chief Executive Officer, NYPA
Jennifer McCormick Vice President – Political Planning,
Empire State Development Corporation
Michael J. Santarcangelo Director – Energy Policy,
Empire State Development Corporation
1. Adoption of Minutes
The minutes of the meeting of February 26, 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 37 Power for Jobs (“PFJ”)
customers as listed in Exhibits “2-A” and “2-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. 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 the 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, the 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. The 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 37 Power for Jobs customers. Thirty customers are meeting their current
job commitments and are listed in Exhibit “2-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.
These customers are listed on Exhibit “2-B.” Collectively, these
organizations have agreed to retain more than 32,000 jobs in
RECOMMENDATION
It is requested that the Economic Power
Allocation Board recommend that the Authority Trustees approve electricity
savings reimbursement rebates to the 37 businesses listed in 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
|
Central Hudson - |
|
|
Northeast Solite Corp. |
|
|
Con Edison - |
|
|
American Ballet Theater |
New Museum of Contemporary Art Pepsi Cola Bottling Company College Point - The |
|
|
|
|
EDO Corp. Enzo Clinical Labs, Inc. Farmingdale - |
Madelaine Chocolates |
|
National Grid – |
|
|
Intertek Testing Services Mount Saint Mary's Hospital |
Natrium Products, Inc. Vicks Lithograph & Printing Yorkville - Welch Allyn Data Collection Inc. Skaneateles Falls - |
|
|
|
|
Candlelight Cabinetry, Inc. Diversified Manufacturing, Inc. Hammond & Irving, Inc. |
Kennedy Valve TMP Technologies, Inc. |
|
|
|
|
Flower City Printing, Inc. |
Hammer Packaging Corp. |
COMPANIES
NOT IN JOB COMPLIANCE
|
Con Edison – |
|
|
Norampac New York City, Inc. Maspeth - |
|
|
Long Island Power Authority – |
|
|
Augros, Inc. |
Photocircuits Corporation |
|
National Grid – |
|
|
Specialized Packaging Radisson, Inc. Baldwinsville - |
|
|
|
|
|
International Business Machines |
|
|
|
|
|
Gorbel Corp. Fishers - |
|
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 37 applications for extended benefits
recommendations for electricity savings reimbursements discussed herein
totaling 41,708 kW until June 30, 2007.
3. Next Meeting
The next meeting of the Board is to be determined.