ECONOMIC DEVELOPMENT POWER
ALLOCATION BOARD
MINUTES
May
21, 2007
Video
Conference 10:00 a.m.
1. Approval
of the Minutes of the Meeting of April 24, 2007
2. Power for Jobs Extended Benefits
Recommendations
for Electricity Savings
Reimbursements
A. COMPANIES
IN JOB COMPLIANCE
Con
Edison -
|
Bank of Edison Price Lighting, Inc Elaine Kaufman Cultural Center Greater Jamaica Development Corp Long Island Jewish Manhasset |
Norampac New York City, Inc. Maspeth Verizon American Ballet Theater Bakers Pride Oven Company |
Long Island Power Authority -
|
Ametek Hughes-Treitler Garden City |
John Hassall, Inc. Westbury |
|
|
|
|
National Grid
|
Borg Warner Morse Tech Corp. CWM Chemical Services, LLC Lowville OAB Holdings, Inc. Queensboro Farm Products, Inc. Canastota Robison & Smith, Inc. Syracuse Label Co., Inc Liverpool |
Syracuse Plastics, Inc. Liverpool Syroco, Inc. A Subsidiary of Vassallo Industries Baldwinsville Turbine Engine Components Technologies Whitesboro Vicks Lithograph & Printing Yorkville |
|
|
|
A.T. Reynolds & Sons, Inc. Borg Warner Automotive Morse TEC |
Corning, Inc (Northside) Vail Ballou Press, Inc. |
|
|
|
Flower City Printing, Inc. |
|
B. COMPANIES
NOT IN JOB COMPLIANCE
National Grid
|
Kilian Manufacturing Corporation Syracuse China Company |
Bison Products Company, Inc. |
|
Audio Sears |
IEC Electric Corp. |
OTHER BUSINESS
3.
Remarks from
the Chairman
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 Excused
Also in attendance were:
Timothy S. Carey President
and Chief Executive Officer, NYPA
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
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
Lorna M. Johnson Assistant Secretary, NYPA
1. Adoption of Minutes
The minutes of the meeting of April 24, 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 40 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 customers
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 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 reimbursements rebates to 40 PFJ customers. Thirty-five customers are meeting their
current job commitments and are listed in Exhibit 2-A. However, five customers reported actual job
numbers below their contractual commitment. Staff is recommending that these customers
have their allocation reduced proportionately to their job shortfall where
appropriate. These customers are listed
on Exhibit 2-B. Collectively, these
organizations have agreed to retain more than 60,000 jobs in
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 Power for Jobs customers 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
|
Con Edison - |
|
|
Bank of Edison Price Lighting, Inc Elaine Kaufman Cultural Center Greater Jamaica Development Corp Long Island Jewish Manhasset |
Norampac New York City, Inc. Maspeth Verizon American Ballet Theater Bakers Pride Oven Company |
|
|
|
|
Ametek Hughes-Treitler Garden City |
John Hassall, Inc. Westbury |
|
National Grid |
|
|
Borg Warner Morse Tech Corp. CWM Chemical Services, LLC Lowville OAB Holdings, Inc. Queensboro Farm Products, Inc. Canastota Robison & Smith, Inc. Syracuse Label Co., Inc Liverpool |
Syracuse Plastics, Inc. Liverpool Syroco, Inc. A Subsidiary of Vassallo Industries Baldwinsville Turbine Engine Components Technologies Whitesboro Vicks Lithograph & Printing Yorkville |
|
|
|
|
A.T. Reynolds & Sons, Inc. Borg Warner Automotive Morse TEC |
Corning, Inc (Northside) Vail Ballou Press, Inc. |
|
|
|
|
Flower City Printing, Inc. |
|
COMPANIES
NOT IN JOB COMPLIANCE
|
National Grid |
|
|
Kilian Manufacturing Corporation Syracuse China Company |
Bison Products Company, Inc. |
|
|
|
|
Audio Sears |
IEC Electric Corp. |
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 40 applications
for extended benefits recommendations for electricity savings reimbursements discussed
herein totaling 53,054 kW until June 30, 2007.
3. Remarks from the Chairman
Chairman
McCullough said that the Power Authority had sent letters to the Governor and
the legislative leaders reminding them that the Power for Jobs (PFJ) program
expires on June 30, 2007 and of the need for legislative action to extend or
revise the program. He said that a bill
had been introduced in the Senate to extend the PFJ program through June 30,
2008 and asked Mr. McGarry to share any other information that he had.
Mr.
McGarry said the Senate PFJ bill was going to be reported out of committee this
week and that the Assembly is expected to introduce an identical bill. The Governors Office has indicated that it
wants to propose a new power program, but they have not yet communicated the
specifics of such a program.
Mr.
Pasquale said that once the legislation is approved, staff will send out
applications/contracts to the existing PFJ customers. Following EDPAB approval of the applications,
staff must then provide 30-days notice to the customers investor-owned
utilities. Due to the fact that no
legislation has yet been enacted, there will be at least a one-month lag period
(the month of July) when customers will have to switch back to their local
investor-owned utility for their power needs.
In
response to a question from President Carey, Mr. Pasquale said that in 2004
there had been a 3- to 11-month lag for PFJ customers.
Mr.
McGarry said that legislative staff is trying to figure out a way to expedite
the process legislatively.
Mr.
Pasquale said that the applications/contracts are ready to be mailed as soon as
legislation is signed.
Chairman
McCullough asked everyone to keep each other informed as to the status of this
situation.
4. Next Meeting
The next meeting of the Board is to be determined.