ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

March 18, 2008

Video Conference – 11:00 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
Fort Myers Interactive Video, 1408 Bayview Ct., Fort Myers, FL

 

 

1.             Approval of the Minutes of the Meeting of February 25, 2008

 

 

2.             Power for Jobs Extended Benefits Recommendations

                for Electricity Savings Reimbursements                          

 

A.         COMPANIES IN JOB COMPLIANCE

 

Con Edison - Service Territory

 

AT&T White Plains – Westchester County   Beth Israel Medical Center New York – New York County

Greater Jamaica Development Corp. Jamaica – Queens County   Lincoln Center for the Performing Arts New York – New York County

 

Long Island Power Authority - Service Territory

 

Ametek Hughes-Treitler Garden City – Nassau County   Good Samaritan Hospital West Islip – Suffolk County

John Hassall, Inc. Westbury – Nassau County

 

 

 

National Grid - Service Territory

Clarkson University Potsdam – St. Lawrence County   Cooper Hand Tools Cortland – Cortland County   CWM Chemical Services, LLC Model City – Niagara County   Edward John Noble Hospital                 Gouverneur – St. Lawrence County

Fiber Glass Industries, Inc. Amsterdam – Montgomery County   Intertek Testing Services Cortland – Cortland County   Robison & Smith, Inc Gloversville – Fulton County

New York State Electric and Gas – Service Territory

Audio Sears Stamford – Delaware County   Corning, Inc. (Big Flats) Big Flats – Chemung County   Corning, Inc. (Northside)                 Corning – Steuben County

Corning, Inc. (Sullivan Park) Corning – Steuben County   Seneca Foods Corporation Geneva – Ontario County   Vail Ballou Press, Inc Binghamton – Broome County

 

 

Orange and Rockland - Service Territory

 

                International Business Machines

                Sterling Forest - Orange County      

               

Rochester Gas and Electric - Service Territory

 

                International Business Machines

                Rochester - Monroe County             

 

 

B.         COMPANIES NOT IN JOB COMPLIANCE

 

National Grid - Service Territory - Service Territory

 

                RSA Solutions, Inc.

                Amherst – Erie County

 

C.         Power for Jobs Extended Benefits Reconsideration

 

        Electricity Savings Reimbursements

        New York University – New York County

        Organichem – Rensselaer County

                       Thirteen WNET – New York 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)       Fort Myers Interactive Video, 1408 Bayview Ct., Fort Myers, FL

 

The following Members of the Board were present at the following locations:

Daniel C. Gundersen, Chairman (Albany, NY

Frank S. McCullough, Jr., Member (White Plains, NY)

Bernard P. McGarry, Member (Albany, NY)

James A. Duncan, Member, (Fort Myers, FL)

 

 

Also in attendance were:

 

Roger B. Kelley                    President and Chief Executive Office, NYPA

Thomas J. Kelly                    Executive Vice President, General Counsel and Chief of Staff, 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

Mary Jean Frank                  Associate Corporate Secretary, NYPA

Lorna M. Johnson               Assistant Corporate Secretary, NYPA

Kristen Mucitelli-Heath      Special Advisor to Commissioner, ESDC

Keith Corneau                      Energy Policy, ESDC

1.                    Adoption of Minutes

The minutes of the meeting of February 25, 2008, 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 23 Power for Jobs (“PFJ”) customers as listed in Exhibit “A.” and “B”.  In addition, the EDPAB is requested to approve modifications to the benefits for three customers that have applied to have their PFJ benefits reinstated after having been reduced by EDPAB for non-compliance with their job commitments as detailed in Exhibit “C.” 

 

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. 

 

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.  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.  The three customers listed on Exhibit “C” have applied for reconsideration.

 

DISCUSSION

 

EDPAB is requested to recommend that the Authority Trustees approve electricity savings reimbursement rebates to the 23 PFJ customers, 22 of which are meeting their current job commitment and are listed in Exhibit “A”. However, one customer reported actual job numbers below their contractual commitment we are recommending that this customer have its allocation reduced proportionately to their job shortfall where appropriate. This customer is listed in Exhibit “B”. Collectively, these organizations have agreed to retain more than 20,000 jobs in New York State in exchange for rebates. The rebate program will be in effect until June 30, 2008, the programs’ sunset.

 

EDPAB is also requested to recommend that the Authority Trustees approve modifications to the benefits for three customers listed in Exhibit “C” that have applied to have their PFJ benefits reinstated after they were reduced by EDPAB for non-compliance with their job commitments.

 

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 23 business listed in Exhibits “A” and “B”.

 

It is requested that the Economic Development Power Allocation Board recommend that the Authority Trustees approve modifications to the benefits for three customers listed in Exhibit “C”.

 

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:

A.      COMPANIES IN JOB COMPLIANCE

 

Con Edison - Service Territory

AT&T White Plains – Westchester County   Beth Israel Medical Center New York – New York County

Greater Jamaica Development Corp Jamaica – Queens County   Lincoln Center for the Performing Arts New York – New York County

Long Island Power Authority - Service Territory

Ametek Hughes-Treitler Garden City – Nassau County   Good Samaritan Hospital West Islip – Suffolk County

John Hassall, Inc Westbury – Nassau County

 

 

National Grid - Service Territory

 

Clarkson University Potsdam – St. Lawrence County   Cooper Hand Tools Cortland – Cortland County   CWM Chemical Services, LLC Model City – Niagara County   Edwards John Noble Hospital Gouverneur – St. Lawrence County

Fiber Glass industries, Inc Amsterdam – Montgomery County   Intertek Testing Services Cortland – Cortland County   Robison & Smith, Inc Gloversville – Fulton County

New York State Electric and Gas – Service Territory

Audio Sears Stamford – Delaware County   Corning, Inc. (Big Flats) Big Flats – Chemung County   Corning, Inc. (Northside) Corning – Steuben County

Corning, Inc. (Sullivan Park) Corning – Steuben County   Seneca Foods Corporation Geneva – Ontario County   Vail Ballou Press, Inc Binghamton – Broome County

 

Orange and Rockland - Service Territory

International Business Machines

Sterling Forest - Orange County

           

Rochester Gas and Electric - Service Territory

International Business Machines

Rochester - Monroe County         

 

 

B.      COMPANIES NOT IN JOB COMPLIANCE

 

National Grid - Service Territory - Service Territory

RSA Solutions, Inc

Amherst – Erie County

 

 

C.         POWER FOR JOBS EXTENDED BENEFITS RECONSIDERATION

 

Electricity Savings Reimbursements

        New York University – New York County

        Organichem – Rensselaer County

        Thirteen WNET – New York 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 23 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 25,314 kW until June 30, 2008, and approve modifications to the benefits for three customers.

 

 

 

 

 

 

3.             Next Meeting

 

                The next meeting of the Board is to be determined.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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