ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

November 27, 2007

Video Conference – 10:00 a.m.

 

                                                New York Power Authority Offices:
                                                                123 Main Street, 16^th Floor, White Plains, NY
                                                                30 South Pearl Street, 10^th Floor, Albany, NY
                                                                Niagara Power Project, 5777 Lewiston Road, Lewiston, NY
                                                DMJM Harris, 605 Third Avenue, New York, NY

 

 

1.             Approval of the Minutes of the Meeting of October 30, 2007

 

2.             Power for Jobs Extended Benefits Recommendations

                for Electricity Savings Reimbursements                          

 

A.         COMPANIES IN JOB COMPLIANCE

 

AT&T White Plains – Westchester County   Charmer Industries, Inc Astoria – Queens County   Display Producers, Inc Bronx – Bronx County   Greater Jamaica Development Corp. Jamaica – Queens County   Marymount College       Tarrytown - Westchester County   Memorial Sloan-Kettering Cancer Center New York – New York County

Mount Sinai Medical Center New York – New York County   Norampac New York City, Inc. Maspeth - Queens County   Pepsi Cola Bottling Company College Point - Queens County   Streamline Plastics Co., Inc. Bronx – Bronx County   The Museum of Modern Art New York – New York County

 

Long Island Power Authority - Service Territory

 

Ametek Hughes-Treitler

Garden City – Suffolk County

 

Long Beach Medical Center

Long Beach – Nassau County

 

 

National Grid - Service Territory

               

Applied Energy Solutions Caledonia – Livingston County   Bristol-Myers Squibb Company East Syracuse – Onondaga County   Carville National Leather Corp. Johnstown – Fulton County   Cascades Tissue Group Waterford – Saratoga County   Clarkson University Potsdam – St. Lawrence County   Corning, Inc Canton - St. Lawrence County   CWM Chemical Services, LLC Model City – Niagara County   Edward John Noble Hospital Gouverneur - St. Lawrence County   Fiber Glass Industries Inc Amsterdam - Montgomery County

Fitzpatrick & Weller, Inc. Ellicottville - Cattaraugus County   Ford Motor Company Buffalo – Erie County   Mohawk Paper Mills Cohoes – Albany County   Precision Systems Mfg., Inc. Liverpool - Onondaga County   Quad Graphics, Inc. Saratoga Springs – Saratoga County   Revere Copper Products Rome – Oneida County   Robison & Smith, Inc. Gloversville – Fulton County   Snyder Industries, Inc. North Tonawanda – Niagara County   Syracuse Label Co. Inc. Liverpool – Onondaga County

 

 New York State Electric and Gas – Service Territory

 

A.T. Reynolds & Sons, Inc. Kiamesha Lake – Sullivan County   Audio Sears Stamford – Delaware County   Borg Warner Automotive Morse TEC Ithaca – Tompkins County   Consumers Beverages, Inc. Buffalo – Erie County   Corning, Inc. (Erwin Plant) Corning – Steuben County

Corning, Inc. (Costar Plant) Oneonta – Otsego County   Corning, Inc. (Northside) Corning – Steuben County   Corning, Inc. (Southside) Corning – Steuben County   Corning, Inc. (Sullivan Park) Corning – Steuben County   Endicott Interconnect Technologies Endicott – Broome County

 

Rochester Gas & Electric – Service Territory

 

Flower City Printing, Inc.

Rochester – Monroe County

 

 

        3.     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)       DMJM Harris, 605 Third Avenue, New York, NY

4)       Fort Myers Interactive Video Center, 1408 Bayview Court, Fort Myers, FL

 

 

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, (Fort Myers, FL)

Kevin S. Corbett, Member (New York, NY))

 

 

Also in attendance were:

 

Roger B. Kelley                                    President and Chief Executive Office

Gil C. Quiniones                                   Executive Vice President – Energy Marketing and Corporate Affairs

 

James H. Yates                                     Senior Vice President, Marketing and Economic Development, NYPA

Thomas Warmath                                Vice President and Chief Risk Officer

 

Anne B. Cahill                                      Corporate Secretary, NYPA

Joseph C. Carline                                 Assistant General Counsel, NYPA

John B. Hamor                                      Executive Director – State Governmental Relations, Albany

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

Angela Graves                                      Deputy Corporate Secretary, NYPA

Mary Jean Frank                                  Associate Corporate Secretary, NYPA

Lorna M. Johnson                               Assistant Corporate Secretary, NYPA

Lou Paonessa                                       Community Relations Manager, NYPA

Mike Lefebvre                                      Energy Policy, ESDC

 

1.                    Adoption of Minutes

The minutes of the meeting of October 30, 2007, were unanimously adopted.

 

 

2.             Power for Jobs Program - Extended Benefits

 

SUMMARY

 

The Members of the Economic Development Power Allocation Board (“EDPAB”) are requested to approve extended benefits for 42 Power for Jobs (“PFJ”) customers as listed in Exhibit “A.” 

 

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 and increase the size of the program to 450 MW.

 

                In May 2000, legislation was enacted that authorized another 300 MW of power to be allocated under the PFJ program.  Legislation further amended the program in July 2002.

 

                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 contracts expired through 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 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.  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.

 

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. 

 

DISCUSSION

 

EDPAB is requested to recommend that the Authority’s Trustees approve electricity savings reimbursement rebates to the 42 PFJ customers, all of which are meeting their current job commitment, that are listed in Exhibit “A.”  Collectively, these organizations have agreed to retain more than 42,000 jobs in New York State in exchange for rebates.  The rebate program will be in effect until June 30, 2008, the program’s sunset.

 

 

 

RECOMMENDATION

 

It is requested that the Economic Development Power Allocation Board recommend that the Authority’s Trustees approve the payment of electricity savings reimbursements to the 42 businesses listed in Exhibit “A.”

 

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

 

AT&T White Plains – Westchester County   Charmer Industries, Inc Astoria – Queens County   Display Producers, Inc Bronx – Bronx County   Greater Jamaica Development Corp. Jamaica – Queens County   Marymount College       Tarrytown - Westchester County   Memorial Sloan-Kettering Cancer Center New York – New York County   Mount Sinai Medical Center New York – New York County

Norampac New York City, Inc. Maspeth - Queens County   Pepsi Cola Bottling Company College Point - Queens County   Streamline Plastics Co., Inc. Bronx – Bronx County   The Museum of Modern Art New York – New York County

 

Long Island Power Authority - Service Territory

 

Ametek Hughes-Treitler

Garden City – Suffolk County

 

Long Beach Medical Center

Long Beach – Nassau County

 

 

 

National Grid – Service Territory

 

Applied Energy Solutions Caledonia – Livingston County   Bristol-Myers Squibb Company East Syracuse – Onondaga County   Carville National Leather Corp. Johnstown – Fulton County   Cascades Tissue Group Waterford – Saratoga County   Clarkson University Potsdam – St. Lawrence County   Corning, Inc Canton - St. Lawrence County   CWM Chemical Services, LLC Model City – Niagara County   Edward John Noble Hospital Gouverneur - St. Lawrence County   Fiber Glass Industries Inc Amsterdam - Montgomery County

Fitzpatrick & Weller, Inc. Ellicottville - Cattaraugus County   Ford Motor Company Buffalo – Erie County   Mohawk Paper Mills Cohoes – Albany County   Precision Systems Mfg., Inc. Liverpool - Onondaga County   Quad Graphics, Inc. Saratoga Springs – Saratoga County   Revere Copper Products Rome – Oneida County   Robison & Smith, Inc. Gloversville – Fulton County   Snyder Industries, Inc. North Tonawanda – Niagara County   Syracuse Label Co. Inc. Liverpool – Onondaga County

 

                New York State Electric and Gas – Service Territory

 

A.T. Reynolds & Sons, Inc. Kiamesha Lake – Sullivan County   Audio Sears Stamford – Delaware County   Borg Warner Automotive Morse TEC Ithaca – Tompkins County   Consumers Beverages, Inc. Buffalo – Erie County   Corning, Inc. (Erwin Plant) Corning – Steuben County

Corning, Inc. (Costar Plant) Oneonta – Otsego County   Corning, Inc. (Northside) Corning – Steuben County   Corning, Inc. (Southside) Corning – Steuben County   Corning, Inc. (Sullivan Park) Corning – Steuben County   Endicott Interconnect Technologies Endicott – Broome County

 

Rochester Gas & Electric – Service Territory

 

Flower City Printing, Inc.

Rochester – Monroe 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 42 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 58.289 kW until June 30, 2008.