ECONOMIC DEVELOPMENT POWER
ALLOCATION BOARD
MINUTES
February
25, 2008
Video
Conference – 11:00 a.m.
New
York Power Authority Offices:
123 Main Street, 16th
Floor, White Plains, NY
30 South Pearl Street, 10th
Floor, Albany, NY
Fort Myers Interactive Video, 1408 Bayview Ct., Fort Myers, FL
1. Approval of the Minutes of the Meeting of January 29, 2008
2. Power for Jobs Extended Benefits Recommendations
for Electricity Savings
Reimbursements
A.
COMPANIES
IN JOB COMPLIANCE
Con Edison -
|
Display Producers, Inc. Bronx – International Business Machines |
Norampac New York City, Inc. Maspeth – The Verizon |
Long
Island Power Authority -
Kozy Shack, Inc.
Hicksville
–
Madelaine Chocolates
National
Grid -
|
Bison Foods – Div of Upstate Farms
C.R. Bard, Inc. Queensbury – Cooper Industries Lowville – Lydall Manning |
McLane Eastern Baldwinsville – Standard Manufacturing Co., Inc. Syracuse Plastics, Inc. Liverpool – Turbine Engine Components Technologies Whitesboro – Vicks Lithograph & Printing Yorkville – |
|
Custom Electronics, Inc. Oneonta
– IEC
Electronics Corp. |
Merritt Plywood
Machinery, Inc. Milward Alloys |
Jada Precision Plastics Co.
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)
2)
3)
The following Members of the Board were present at the following locations:
Daniel C. Gundersen, Chairman (
Frank S. McCullough, Jr., Chairman (
Bernard P. McGarry, Member (
James A. Duncan, Member, (
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
Gil C. Quiniones Executive Vice President –
Energy Marketing and Corporate Affairs, NYPA
James H. Yates Senior Vice President, Marketing
and Economic Development, NYPA
Thomas Warmath Vice
President and Chief Risk Officer, 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
Jack Murphy Temporary Public Relations
Counsel, NYPA
Keith Corneau Energy Policy, ESDC
Introduction
Chairman
Daniel Gundersen welcomed everyone to the meeting and thanked them for their
good wishes on his appointment as Chairman of EDPAB. He said that there clearly would be a lot
going on with EDPAB in the next year or so.
1. Adoption of Minutes
The minutes of the meeting of January 29, 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.”
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
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 Power 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.
DISCUSSION
EDPAB is requested to recommend that
the Power Authority’s Trustees approve electricity savings reimbursement
rebates to the 23 PFJ customers that are meeting their current job commitments
and are listed in Exhibit “A.”
Collectively, these organizations have agreed to retain more than 21,400
jobs in
RECOMMENDATION
It is requested that the Economic Development Power Allocation Board recommend that the Power Authority’s Trustees approve the payment of electricity savings reimbursements to the 23 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 -
|
Display Producers, Inc. Bronx – International Business Machines
|
Norampac New York City, Inc. Maspeth – The Verizon |
|
|
Long Island Power Authority -
Kozy Shack, Inc. Madelaine
Chocolates
Hicksville –
National Grid -
|
Bison Foods –
Div of Upstate Farms C.R. Bard, Inc. Queensbury – Cooper
Industries Lowville – Lydall Manning |
McLane Eastern Baldwinsville – Standard Manufacturing Co.,
Inc. Syracuse Plastics, Inc. Liverpool – Turbine Engine Components
Technologies Whitesboro – Vicks Lithograph & Printing Yorkville – |
|
|
|
Custom Electronics, Inc. Oneonta – IEC Electronics Corp. |
Merritt Plywood Machinery, Inc. Milward Alloys |
|
Jada Precision
Plastics Co. |
|
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 27,305 kW until June 30, 2008.
3. Other
Business
EDPAB
member James Duncan extended his welcome to Chairman Gundersen and said that he
looked forward to working with him. He
said that if Chairman Gundersen’s tenure is half as successful as Frank
McCullough’s, it will be noteworthy indeed.
Chairman Gundersen said that he was pleased that Mr. McCullough will be
staying on EDPAB, since continuity is important.
4. Next Meeting
The next meeting of the Board is to be determined.
Next
Mtg.Feb