ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

December 15, 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

                                                St. Lawrence Power Project, 830 Barnhart Island, Massena, NY

 

1.             Approval of the Minutes of the Meeting of November 17, 2008.

 

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   AT&T White Plains - Westchester County   Bank of New York New York - New York County

Memorial Sloan-Kettering Cancer Center New York - New York County   New York Presbyterian Hospital New York - New York County   Pepsi Cola Bottling Company College Point - Queens County

 

Long Island Power Authority - Service Territory

 

Ametek Hughes-Treitler Garden City – Nassau County   B.H. Aircraft Company, Inc. Ronkonkoma - Suffolk County   John Hassall, Inc. Westbury - Nassau County

Kozy Shack, Inc. Hicksville - Nassau County   Standard Microsystems Corp. Hauppauge - Suffolk County   Ultimate Precision Metal Farmingdale - Suffolk County

 

National Grid - Service Territory

 

Bank of New York Oriskany - Oneida County   Birds Eye Foods, Inc. Fulton - Oswego County   BorgWarner - Morse TEC Corp. Cortland - Cortland County     Cooper Hand Tools Cortland - Cortland County   Cooper Industries, Inc. Syracuse - Onondaga County   Fiber Glass Industries Inc. Amsterdam - Montgomery County   Norlite Corp. Cohoes - Albany County

OAB Holdings, Inc. Buffalo - Erie County   Schilling Forge, Inc. Syracuse - Onondaga County   Snyder Industries, Inc. North Tonawanda - Niagara County     Syracuse Plastics, Inc. Liverpool - Onondaga County   TMP Technologies, Inc. Buffalo – Erie County   Turbine Engine Components Technologies Whitesboro - Oneida County   Welch-Allyn Data Collection Inc. Skaneateles Falls - Onondaga County

 

New York State Electric & Gas – Service Territory

 

Audio Sears Stamford - Delaware County   Burt Rigid Box, Inc. Oneonta - Otsego County   Endicott Interconnect Technologies Endicott - Broome County   Frito-Lay, Inc. Binghamton - Broome County   National Pipe and Plastics Vestal - Broome County   PCB Piezotronics, Inc. Depew - Wayne County

Schweizer Aircraft Corp. Horseheads - Chemung County   Sealing Devices, Inc. Lancaster - Erie County   Soucy USA Champlain - Clinton County   Therm Inc. Ithaca - Tompkins County   TMP Technologies, Inc. Wyoming - Wyoming County

 

Rochester Gas & Electric – Service Territory

 

Seneca Foods Corporation Marion – Wayne 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

4)       St. Lawrence/FDR Power Plant, 830 Barnhart Island, Massena, NY

 

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

Kenneth Schoetz, Chairman (Niagara, NY)

James A. Duncan, Member (Niagara, NY)

Bernard P. McGarry, Member (Albany, NY)

Eugene L. Nicandri, Member, (Massena, NY)

 

 

Also in attendance were:

Anne B. Cahill                      Corporate Secretary, NYPA                               

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

James F. Pasquale                Director – Marketing Analysis and Administration

Angela Graves                      Deputy Corporate Secretary, NYPA

Michael Saltzman Director – Media Relations, NYPA

Anthony C. Savino              Manager – Business Power Allocations and Compliance, NYPA

Mary Jean Frank                  Associate Corporate Secretary, NYPA

Lorna Johnson                     Assistant Corporate Secretary, NYPA

                                               

 

 

 

 

 

 

 

 

 

1.             Adoption of Minutes

The minutes of the meeting of November 17, 2008 were unanimously adopted.

 

2.             Power for Jobs Extended Benefits

 

SUMMARY

 

The Members of the Economic Development Power Allocation Board (“EDPAB”) are requested to approve extended benefits for 38 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 received three-year contracts for PFJ electricity.

 

The PFJ program originally made 400 megawatts (“MW”) of power available and was to be phased in over three years.  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 additional power to be allocated under the 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.  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.  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 38 PFJ customers, all of which are meeting their job commitment and are listed in Exhibit “A”. Collectively, these organizations have agreed to retain more than 40,000 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 38 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:

 

A.            COMPANIES IN JOB COMPLIANCE 

 

Con Edison - Service Territory

 

92nd Street YM-YWHA New York - New York County   AT&T White Plains - Westchester County   Bank of New York New York - New York County

Memorial Sloan-Kettering Cancer Center New York - New York County   New York Presbyterian Hospital New York - New York County   Pepsi Cola Bottling Company College Point - Queens County

 

Long Island Power Authority - Service Territory

 

Ametek Hughes-Treitler Garden City – Nassau County   B.H. Aircraft Company, Inc. Ronkonkoma - Suffolk County   John Hassall, Inc. Westbury - Nassau County

Kozy Shack, Inc. Hicksville - Nassau County   Standard Microsystems Corp. Hauppauge - Suffolk County   Ultimate Precision Metal Farmingdale - Suffolk County

 

National Grid - Service Territory

 

Bank of New York Oriskany - Oneida County   Birds Eye Foods, Inc. Fulton - Oswego County   BorgWarner - Morse TEC Corp. Cortland - Cortland County     Cooper Hand Tools Cortland - Cortland County   Cooper Industries, Inc. Syracuse - Onondaga County   Fiber Glass Industries Inc. Amsterdam - Montgomery County   Norlite Corp. Cohoes - Albany County

OAB Holdings, Inc. Buffalo - Erie County   Schilling Forge, Inc. Syracuse - Onondaga County   Snyder Industries, Inc. North Tonawanda - Niagara County     Syracuse Plastics, Inc. Liverpool - Onondaga County   TMP Technologies, Inc. Buffalo – Erie County   Turbine Engine Components Technologies Whitesboro - Oneida County   Welch-Allyn Data Collection Inc. Skaneateles Falls - Onondaga County

 

New York State Electric & Gas – Service Territory

 

Audio Sears Stamford - Delaware County   Burt Rigid Box, Inc. Oneonta - Otsego County   Endicott Interconnect Technologies Endicott - Broome County   Frito-Lay, Inc. Binghamton - Broome County   National Pipe and Plastics Vestal - Broome County   PCB Piezotronics, Inc. Depew - Wayne County

Schweizer Aircraft Corp. Horseheads - Chemung County   Sealing Devices, Inc. Lancaster - Erie County   Soucy USA Champlain - Clinton County   Therm Inc. Ithaca - Tompkins County   TMP Technologies, Inc. Wyoming - Wyoming County

 

Rochester Gas & Electric – Service Territory

 

Seneca Foods Corporation Marion – 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 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 38 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 49,423 kW until June 30, 2009.