ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

May 21, 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

 

 

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 - Service Territory

 

Bank of New York

New York – New York County

 

Edison Price Lighting, Inc

New York – New York County

 

Elaine Kaufman Cultural Center

New York – New York County

 

Greater Jamaica Development  Corp

Jamaica – Queens County

 

Long Island Jewish Medical Center

Manhasset – Nassau County

 

Memorial Sloan-Kettering Cancer Center

New York – New York County

 

Mount Sinai Medical Center

New York – New York County

 

New York Presbyterian Hospital

New York – New York County

 

Norampac New York City, Inc.

Maspeth – Queens County

 

Verizon

New York – New York County

 

American Ballet Theater

New York – New York County

 

Bakers Pride Oven Company

New Rochelle – Westchester County

 

Whitney Museum of American Art

New York – New York County

 

 

 

Long Island Power Authority - Service Territory

 

Ametek Hughes-Treitler

Garden City – Suffolk County

John Hassall, Inc.

Westbury – Nassau County

 

 

 

 

 


National Grid – Service Territory

 

Borg Warner Morse Tech Corp.

Cortland – Cortland County

 

Clarkson University

Potsdam – St. Lawrence County

 

CWM Chemical Services, LLC

Model City – Niagara County

 

Lewis County General Hospital

Lowville – Lewis County

 

OAB Holdings, Inc.

Buffalo – Erie County

 

Queensboro Farm Products, Inc. Canastota – Madison County

 

Robison & Smith, Inc.

Gloversville – Fulton County

 

Syracuse Label Co., Inc

Liverpool – Onondaga County

Syracuse Plastics, Inc.

Liverpool – Onondaga County

 

Syroco, Inc. – A Subsidiary of Vassallo Industries

Baldwinsville – Onondaga County

 

Turbine Engine Components Technologies

Whitesboro – Oneida County

 

Vicks Lithograph & Printing

Yorkville – Oneida County

 

Albany Molecular Research, Inc.

Albany – Albany County

 

Delphi Automotive Systems (Par)

Amherst – Erie County

 

Syracuse University

Syracuse – Onondaga County

 

 

 

 

 

New York State Electric and Gas – Service Territory

 

A.T. Reynolds & Sons, Inc.

Kiamesha Lake – Sullivan County

 

Borg Warner Automotive Morse TEC

Ithaca – Tompkins County

 

Corning, Inc (Northside)

Corning – Steuben County

 

Vail Ballou Press, Inc.

Binghamton – Broome County

 

 

 

 

Rochester Gas & Electric – Service Territory

 

Flower City Printing, Inc.

Rochester - Monroe County

 

 

 

 

B.            COMPANIES NOT IN JOB COMPLIANCE

 

National Grid – Service Territory

 

Kilian Manufacturing Corporation

Syracuse – Onondaga County

 

Syracuse China Company

Syracuse – Onondaga County

Bison Products Company, Inc.

Buffalo – Erie County

 

New York State Electric & Gas – Service Territory

 

Audio Sears

Stamford – Delaware County

IEC Electric Corp.

Newark – Wayne County

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)       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 – 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 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.  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 New York State in exchange for rebates.  The rebate program will be in effect until June 30, 2007, the program’s sunset.

 

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 - Service Territory

Bank of New York

New York – New York County

 

Edison Price Lighting, Inc

New York – New York County

 

Elaine Kaufman Cultural Center

New York – New York County

 

Greater Jamaica Development  Corp

Jamaica – Queens County

 

Long Island Jewish Medical Center

Manhasset – Nassau County

 

Memorial Sloan-Kettering Cancer Center

New York – New York County

 

Mount Sinai Medical Center

New York – New York County

 

 

New York Presbyterian Hospital

New York – New York County

 

Norampac New York City, Inc.

Maspeth – Queens County

 

Verizon

New York – New York County

 

American Ballet Theater

New York – New York County

 

Bakers Pride Oven Company

New Rochelle – Westchester County

 

Whitney Museum of American Art

New York – New York County

 

 

                               

Long Island Power Authority– Service Territory

Ametek Hughes-Treitler

Garden City – Suffolk County

John Hassall, Inc.

Westbury – Nassau County

 

National Grid – Service Territory

Borg Warner Morse Tech Corp.

Cortland – Cortland County

 

Clarkson University

Potsdam – St. Lawrence County

 

CWM Chemical Services, LLC

Model City – Niagara County

 

Lewis County General Hospital

Lowville – Lewis County

 

OAB Holdings, Inc.

Buffalo – Erie County

 

Queensboro Farm Products, Inc. Canastota – Madison County

 

Robison & Smith, Inc.

Gloversville – Fulton County

 

Syracuse Label Co., Inc

Liverpool – Onondaga County

Syracuse Plastics, Inc.

Liverpool – Onondaga County

 

Syroco, Inc. – A Subsidiary of Vassallo Industries

Baldwinsville – Onondaga County

 

Turbine Engine Components Technologies

Whitesboro – Oneida County

 

Vicks Lithograph & Printing

Yorkville – Oneida County

 

Albany Molecular Research, Inc.

Albany – Albany County

 

Delphi Automotive Systems (Par)

Amherst – Erie County

 

Syracuse University

Syracuse – Onondaga County

 

 

 

New York State Electric & Gas – Service Territory

A.T. Reynolds & Sons, Inc.

Kiamesha Lake – Sullivan County

 

Borg Warner Automotive Morse TEC

Ithaca – Tompkins County

 

Corning, Inc (Northside)

Corning – Steuben County

 

Vail Ballou Press, Inc.

Binghamton – Broome County

 

 

Rochester Gas & Electric – Service Territory

Flower City Printing, Inc.

Rochester - Monroe County

 

 

 

 


COMPANIES NOT IN JOB COMPLIANCE

               

 

National Grid – Service Territory

Kilian Manufacturing Corporation

Syracuse – Onondaga County

 

Syracuse China Company

Syracuse – Onondaga County

Bison Products Company, Inc.

Buffalo – Erie County

 

New York State Electric & Gas – Service Territory

Audio Sears

Stamford – Delaware County

IEC Electric Corp.

Newark – Wayne 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 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 Governor’s 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.