ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

April 29, 2008

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 March 18, 2008

 

 

2.             Power for Jobs Extended Benefits Recommendations

                for Electricity Savings Reimbursements                          

 

A.         COMPANIES IN JOB COMPLIANCE

 

Con Edison - Service Territory

 

Bowne & Co. New York – New York County   Home for Contemporary Theater & Art New York – New York County   Jacmel Jewelry, Inc. Long Island City - Queens County   Kingsbrook Jewish Medical Center Brooklyn – Kings County   Long Island Jewish Medical Center Manhasset – Nassau County

Mount Sinai Medical Center New York – New York County   New York University New York – New York County   NYU Medical Center New York – New York County   Pepsi Cola Bottling Company College Point – Queens County

Long Island Power Authority - Service Territory

 

Commercial Envelopes Manufacturing Corp. Deer Park – Suffolk County

Ultimate Precision Metal Farmingdale – Suffolk County

 

National Grid - Service Territory

 

Albany Molecular Research, Inc. Albany – Albany County   Applied Energy Solutions Caledonia – Livingston County   Borg Warner Morse Tech Corp. Cortland – Cortland County   Carville National Leather Corp. Johnstown – Fulton County   Corning, Inc. (Canton) Canton - St. Lawrence County   Dielectric Laboratories, Inc. Cazenovia – Madison County   Dodge-Graphic Press Inc. Utica – Oneida County   Fitzpatrick & Weller, Inc. Ellicottville – Cattaraugus County   Kilian Manufacturing Corporation Syracuse – Onondaga County

Mohawk Paper Mills Cohoes – Albany County   Natrium Products, Inc. Cortland – Cortland County   Organichem, Inc. Rensselaer – Rensselaer County   PCI Paper Conversions, Inc. Syracuse – Onondaga County   Queensboro Farm Products, Inc. Canastota – Madison County   Revere Copper Products Rome – Oneida County   Sorrento Lactalis, Inc. Buffalo – Erie County   Syracuse Label Co., Inc. Liverpool – Onondaga County   Welch Allyn Data Collection Inc. Skaneateles Falls – Onondaga County

New York State Electric and Gas – Service Territory

 

A. T. Reynolds & Sons, Inc. Kiamesha Lake – Sullivan County   Agri-Mark, Inc. Chateaugay – Franklin County   Borg Warner Automotive Morse TEC Ithaca – Tompkins County   Corning, Inc. (Costar Plant) Oneonta – Otsego County

Corning, Inc. (Northside) Corning – Steuben County   Corning, Inc. (Southside) Corning – Steuben County   Endicott Interconnect Technologies Endicott – Broome County   Soucy USA Champlain – Clinton County

 

Rochester Gas and Electric - Service Territory

 

Flower City Printing, Inc.

Rochester – Monroe County

 

 

B.         COMPANIES NOT IN JOB COMPLIANCE

 

National Grid - Service Territory - Service Territory

 

Cascades Tissue Group                                                          Precision Systems Mfg., Inc.

Waterford – Saratoga County                                               Liverpool – Onondaga County

 

 

OTHER BUSINESS

 

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)       Niagara Power Project, 5777 Lewiston Road, Lewiston, NY

 

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, (Lewiston, NY)

 

 

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

Thomas Warmath                                Vice President and Chief Risk Officer

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

Connie Cullen                       Deputy 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 March 18, 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 40 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. 

 

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. In 2008, a new law (Chapter 59 of the laws of 2008) included provisions extending the program benefits until June 30, 2009.

 

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 40 PFJ customers, 38 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 to retain more than 56,000 jobs in New York State in exchange for rebates. The rebate program will be in effect until June 30, 2009, 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 40 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:

A.                  COMPANIES IN JOB COMPLIANCE

 

Con Edison - Service Territory

Bowne & Co. New York – New York County   Home for Contemporary Theater & Art New York – New York County   Jacmel Jewelry, Inc. Long Island City - Queens County   Kingsbrook Jewish Medical Center Brooklyn – Kings County   Long Island Jewish Medical Center Manhasset – Nassau County

Mount Sinai Medical Center New York – New York County   New York University New York – New York County   NYU Medical Center New York – New York County   Pepsi Cola Bottling Company College Point – Queens County

Long Island Power Authority - Service Territory

Commercial Envelopes Manufacturing Corp. Deer Park – Suffolk County

Ultimate Precision Metal Farmingdale – Suffolk County

 

National Grid - Service Territory

Albany Molecular Research, Inc. Albany – Albany County   Applied Energy Solutions Caledonia – Livingston County   Borg Warner Morse Tech Corp. Cortland – Cortland County   Carville National Leather Corp. Johnstown – Fulton County   Corning, Inc. (Canton) Canton - St. Lawrence County   Dielectric Laboratories, Inc. Cazenovia – Madison County Dodge-Graphic Press Inc. Utica – Oneida County   Fitzpatrick & Weller, Inc. Ellicottville – Cattaraugus County   Kilian Manufacturing Corporation Syracuse – Onondaga County

Mohawk Paper Mills Cohoes – Albany County   Natrium Products, Inc. Cortland – Cortland County   Organichem, Inc. Rensselaer – Rensselaer County   PCI Paper Conversions, Inc. Syracuse – Onondaga County   Queensboro Farm Products, Inc. Canastota – Madison County   Revere Copper Products Rome – Oneida County Sorrento Lactalis, Inc. Buffalo – Erie County   Syracuse Label Co., Inc. Liverpool – Onondaga County   Welch Allyn Data Collection Inc. Skaneateles Falls – Onondaga County

New York State Electric and Gas – Service Territory

A. T. Reynolds & Sons, Inc. Kiamesha Lake – Sullivan County   Agri-Mark, Inc. Chateaugay – Franklin County   Borg Warner Automotive Morse TEC Ithaca – Tompkins County   Corning, Inc. (Costar Plant) Oneonta – Otsego County

Corning, Inc. (Northside) Corning – Steuben County   Corning, Inc. (Southside) Corning – Steuben County   Endicott Interconnect Technologies Endicott – Broome County   Soucy USA Champlain – Clinton County

 

                Rochester Gas and Electric - Service Territory

Flower City Printing, Inc.

Rochester – Monroe County

 

 

B.                  COMPANIES NOT IN JOB COMPLIANCE

 

National Grid - Service Territory - Service Territory

Cascades Tissue Group                                 Precision Systems Mfg., Inc.

Waterford – Saratoga County                                      Liverpool – Onondaga 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 59 of the Laws of 2008; 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 45,850 kW until June 30, 2009.