ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

September 24, 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

 

 

1.             Approval of the Minutes of the Meeting of July 31, 2007

 

2.             Power for Jobs Extended Benefits Recommendations
for Electricity Savings Reimbursements                     

 

A.            COMPANIES IN JOB COMPLIANCE

 

Con Edison - Service Territory

 

92ND Street YM&YWHA New York – New York County   Acme Architectural Products, Inc. Brooklyn  - Kings County   Acme Smoked Fish Corp. Brooklyn - Kings County   American Cancer Society New York – New York County   Bank of New York New York – New York County   Belmont Metals, Inc. Brooklyn - Kings County   Diller Quaile School of Music Brooklyn - Kings County   East Harlem Arts & Education Local Development Corp. New York – New York County   Fort Meat Wholesale Brooklyn - Kings County   Greater Jamaica Development Corp. Jamaica – Queens County

Home for Contemporary Arts New York – New York County   Jacmel Jewelry, Inc. Long Island City – Queens County   Lincoln Center for the Performing Arts New York – New York County   Manhattan School of Music New York – New York County Memorial Sloan-Kettering Cancer Center New York – New York County New York Presbyterian Hospital New York – New York County   NYU Medical Center New York – New York County   S. R. Guggenheim Museum New York – New York County   The Joyce Theater Foundation, Inc. New York – New York County   The Museum of Modern Art New York – New York County

 

Long Island Power Authority - Service Territory

 

Commercial Envelope Manufacturing Corp. Deer Park – Suffolk County   John T. Mather Memorial Hospital Port Jefferson – Suffolk County   Ultimate Precision Metal Farmingdale – Suffolk

 

National Grid – Service Territory

 

Albany Molecular Research, Inc. Albany – Albany County   Bank of New York Oriskany – Oneida County                 Bristol-Myers Squibb Company East Syracuse – Onondaga County                 C.R. Band, Inc. Queensbury – Warren County   Carville National Leather Corp. Johnston – Fulton County   Cascade Tissue Group Waterford – Saratoga County   Corning, Inc. (Canton) Canton – St. Lawrence County   CWM Chemical Services, LLC Model City, Niagara County   Dielectric Laboratories, Inc. Cazenovia, Madison County   Edward John Noble Hospital Gouverneur – St. Lawrence County   Ford Motor Company Buffalo – Erie County                 Higbee, Inc. Syracuse - Onondaga County   Intertek Testing Services Cortland    Cortland County

Lewis County General Hospital Lowville – Lewis County   McLane Eastern Baldwinsille - Onondaga County   OAB Holdings, Inc. Buffalo – Erie County   Oldcastle Precast, Inc. South Bethlehem – Albany County   Organichem, Inc. Rensselear – Rensselaer County   Quad Graphics, Inc. Saratoga Springs – Saratoga County   Queensboro Farm Products, Inc – Canastota Canastota – Madison County   Revere Copper Products Rome – Oneida County   Syracuse China Company Syracuse – Onondaga County   Syracuse Label Co., Inc Liverpool - Onondaga County   Syracuse Plastics, Inc Syracuse – Onondaga County   Vicks Lithograph & Printing Yorkville – Oneida County

 

New York State Electric and Gas – Service Territory

 

Agri-Mark, Inc Chateauguay – Franklin County   Bison Foods – Div of Upstate Farms West Seneca – Erie County   Consumers Beverages, Inc. Buffalo – Erie County   Corning, Inc. (Big Flats) Big Flats – Chemung County   Corning, Inc. (Costar Plant) Oneonta – Otsego County

Egli Machine, Inc. Sidney - Otsego County   Merrit Plywood Machinery, Inc. Lockport – Niagara County   Soucy USA Champlain – Clinton County   Upstate Farms Cooperative Buffalo – Erie County   Vail Ballou Press, Inc. Binghamton – Broome County

 

Orange & Rockland – Service Territory

International Business Machines - Sterling Forest Poughkeepsie – Orange County

 

Rochester Gas & Electric – Service Territory

 

International Business Machines – Rochester Rochester – Monroe County   Jada Precision Plastics, Co. Rochester – Monroe County   Seneca Foods Corporation Leicester – Livingston County

 

 

B.            COMPANIES NOT IN JOB COMPLIANCE

 

Con Edison – Service Territory

 

American Ballet Theater New York – New York County

 

National Grid – Service Territory

 

Sorrento Lactalis, Inc. Buffalo – Erie County

 

 

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)       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 – (Absent)

 

 

Also in attendance were:

 

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

Anne B. Cahill                                      Corporate Secretary, NYPA

Joseph C. Carline                                 Assistant General Counsel, 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

Angela Graves                                      Deputy Corporate Secretary, NYPA

Mary Jean Frank                                  Associate Corporate Secretary, NYPA

Lorna M. Johnson                               Assistant Corporate Secretary, NYPA

1.                    Adoption of Minutes

The minutes of the meeting of July 31, 2007, were unanimously adopted.

 

 

2.             MEMORANDUM TO THE MEMBERS OF THE BOARD

 

SUBJECT:            Power for Jobs Program - Extended Benefits

 

SUMMARY

 

The Members of the Economic Development Power Allocation Board (“EDPAB”) are requested to approve extended benefits for 64 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 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 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.  Chapter 645 of the Laws of 2006 included provisions extending program benefits until June 30, 2007.

 

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 Trustees approve electricity savings reimbursement rebates to the 64 PFJ customers, 62 of which are meeting their current job commitment and are listed in Exhibit “A”. However, two 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 in Exhibit “B”. Collectively, these organizations have agreed too retain more than 57,000 jobs in New York State in exchange for rebates. The rebate program will be in effect until June 30, 2008, the programs’ 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 64 business listed in Exhibits “A” and “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

92ND Street YM&YWHA New York – New York County   Acme Architectural Products, Inc. Brooklyn  - Kings County   Acme Smoked Fish Corp. Brooklyn - Kings County   American Cancer Society New York – New York County   Bank of New York New York – New York County   Belmont Metals, Inc. Brooklyn - Kings County   Diller Quaile School of Music Brooklyn - Kings County   East Harlem Arts & Education Local Development Corp. New York – New York County   Fort Meat Wholesale Brooklyn - Kings County   Greater Jamaica Development Corp. Jamaica – Queens County

Home for Contemporary Arts New York – New York County   Jacmel Jewelry, Inc. Long Island City – Queens County   Lincoln Center for the Performing Arts New York – New York County   Manhattan School of Music New York – New York County Memorial Sloan-Kettering Cancer Center New York – New York County New York Presbyterian Hospital New York – New York County   NYU Medical Center New York – New York County   S. R. Guggenheim Museum New York – New York County   The Joyce Theater Foundation, Inc. New York – New York County   The Museum of Modern Art New York – New York County

 

 

Long Island Power Authority - Service Territory

Commercial Envelope Manufacturing Corp. Deer Park – Suffolk County   John T. Mather Memorial Hospital Port Jefferson – Suffolk County   Ultimate Precision Metal Farmingdale – Suffolk

 

National Grid – Service Territory

Albany Molecular Research, Inc. Albany – Albany County   Bank of New York Oriskany – Oneida County                 Bristol-Myers Squibb Company East Syracuse – Onondaga County                 C.R. Band, Inc. Queensbury – Warren County   Carville National Leather Corp. Johnston – Fulton County   Cascade Tissue Group Waterford – Saratoga County   Corning, Inc. (Canton) Canton – St. Lawrence County   CWM Chemical Services, LLC Model City, Niagara County   Dielectric Laboratories, Inc. Cazenovia, Madison County   Edward John Noble Hospital Gouverneur – St. Lawrence County   Ford Motor Company Buffalo – Erie County                 Higbee, Inc. Syracuse - Onondaga County   Intertek Testing Services Cortland    Cortland County

Lewis County General Hospital Lowville – Lewis County   McLane Eastern Baldwinsille - Onondaga County   OAB Holdings, Inc. Buffalo – Erie County   Oldcastle Precast, Inc. South Bethlehem – Albany County   Organichem, Inc. Rensselear – Rensselaer County   Quad Graphics, Inc. Saratoga Springs – Saratoga County   Queensboro Farm Products, Inc – Canastota Canastota – Madison County   Revere Copper Products Rome – Oneida County   Syracuse China Company Syracuse – Onondaga County   Syracuse Label Co., Inc Liverpool - Onondaga County   Syracuse Plastics, Inc Syracuse – Onondaga County   Vicks Lithograph & Printing Yorkville – Oneida County

 

New York State Electric and Gas – Service Territory

Agri-Mark, Inc Chateauguay – Franklin County   Bison Foods – Div of Upstate Farms West Seneca – Erie County   Consumers Beverages, Inc. Buffalo – Erie County   Corning, Inc. (Big Flats) Big Flats – Chemung County   Corning, Inc. (Costar Plant) Oneonta – Otsego County

Egli Machine, Inc. Sidney - Otsego County   Merrit Plywood Machinery, Inc. Lockport – Niagara County   Soucy USA Champlain – Clinton County   Upstate Farms Cooperative Buffalo – Erie County   Vail Ballou Press, Inc. Binghamton – Broome County

 

                Orange & Rockland – Service Territory

International Business Machines - Sterling Forest Poughkeepsie – Orange County

 

Rochester Gas & Electric – Service Territory

International Business Machines – Rochester Rochester – Monroe County   Jada Precision Plastics, Co. Rochester – Monroe County   Seneca Foods Corporation Leicester – Livingston County

 

 

COMPANIES NOT IN JOB COMPLIANCE

 

Con Edison – Service Territory

American Ballet Theater New York – New York County

 

National Grid – Service Territory

Sorrento Lactalis, Inc. Buffalo – Erie 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 64 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 68,210 kW until June 30, 2007.

 

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 their June meeting, the Authority’s Trustees had been asked to approve extension of benefits through the newly legislated June 30, 2008 deadline for all 523 PFJ and 105 ECSB customers subject to staff review by the end of September.  Mr. Pasquale said that the 62 PFJ and 19 ECSB customers not meeting their job commitments had been sent a letter listing the reconsideration criteria previously developed by Authority staff and asked to respond with a letter detailing how they meet any of the criteria.  To date, 39 responses have been received to the 81 letters sent to these customers.  Staff is reviewing the responses and will present its recommendations to EDPAB at the October meeting.  Chairman McCullough said that staff felt this approach to dealing with the customers that are not meeting their job commitments would expedite the review and disposition of their reconsideration requests.  Mr. Duncan and Mr. McGarry agreed that this was a good approach to take. 

 

4.             Next Meeting

 

                The next meeting of the Board is to be determined.