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 - Service Territory

Display Producers, Inc.

Bronx – Bronx County

 

International Business Machines

White PlainsWestchester County

 

Memorial Sloan-Kettering Cancer Center

New YorkNew York County

Norampac New York City, Inc.

Maspeth – Queens County

 

The Museum of Modern Art

New YorkNew York County

 

Verizon

New YorkNew York County

 

 

Long Island Power Authority - Service Territory

Kozy Shack, Inc.

Hicksville – Nassau County

 

Madelaine Chocolates

Rockaway BeachQueens County

 

 

National Grid - Service Territory

Bison Foods – Div of Upstate Farms

                BuffaloErie County

               

                C.R. Bard, Inc.

                Queensbury – Warren County

 

                Cooper Industries

                SyracuseOnondaga County

 

                Lewis County General Hospital

                Lowville – Lewis County

 

                Lydall Manning   

                Green Island - Albany County

 

McLane Eastern

                Baldwinsville – Onondaga County

 

                Standard Manufacturing Co., Inc.

                TroyRensselaer County

 

                Syracuse Plastics, Inc.

                Liverpool – Onondaga County

 

                Turbine Engine Components Technologies

                Whitesboro – Oneida County

 

                Vicks Lithograph & Printing

  Yorkville – Oneida County

New York State Electric and Gas – Service Territory

Custom Electronics, Inc.

                Oneonta – Otsego County

 

                IEC Electronics Corp.

                Newark - Wayne County

Merritt Plywood Machinery, Inc.

LockportNiagara County

 

Milward Alloys

LockportNiagara County

 

 

Rochester Gas and Electric - Service Territory

  Jada Precision Plastics Co.

  RochesterMonroe 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)       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., Chairman (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

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 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 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 New York State in exchange for the rebates. The rebate program will be in effect until June 30, 2008, the program’s sunset.

 


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 - Service Territory

Display Producers, Inc.

Bronx – Bronx County

 

International Business Machines

White PlainsWestchester County

 

Memorial Sloan-Kettering Cancer Center

New YorkNew York County

Norampac New York City, Inc.

Maspeth – Queens County

 

The Museum of Modern Art

New YorkNew York County

 

Verizon

New YorkNew York County

 

 

 

 

Long Island Power Authority - Service Territory

Kozy Shack, Inc.                                                            Madelaine Chocolates

Hicksville – Nassau County                                        Rockaway BeachQueens County

 

National Grid - Service Territory

Bison Foods – Div of Upstate Farms

BuffaloErie County

           

C.R. Bard, Inc.

Queensbury – Warren County

 

Cooper Industries

SyracuseOnondaga County

 

Lewis County General Hospital

Lowville – Lewis County

 

Lydall Manning               

Green Island - Albany County

 

McLane Eastern

Baldwinsville – Onondaga County

 

Standard Manufacturing Co., Inc.

TroyRensselaer County

 

Syracuse Plastics, Inc.

Liverpool – Onondaga County

 

Turbine Engine Components Technologies

Whitesboro – Oneida County

 

Vicks Lithograph & Printing

Yorkville – Oneida County

 

 

 

 

New York State Electric and Gas – Service Territory

Custom Electronics, Inc.

                Oneonta – Otsego County

 

                IEC Electronics Corp.

                Newark - Wayne County

Merritt Plywood Machinery, Inc.

LockportNiagara County

 

Milward Alloys

LockportNiagara County

 

Rochester Gas and Electric  Service Territory

Jada Precision Plastics Co.

RochesterMonroe 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 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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