ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

MINUTES

January 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
Fort Myers Interactive Video, 1408 Bayview Ct., Fort Myers, FL

1. Approval of the Minutes of the Meeting of December 20, 2007

2. Power for Jobs Extended Benefits Recommendations

for Electricity Savings Reimbursements

A. COMPANIES IN JOB COMPLIANCE

Con Edison - Service Territory

Bank of New York New York – New York County New York Presbyterian Hospital New York – New York County NYU Medical Center New York – New York County

Pepsi Cola Bottling Company College Point – Queens County Streamline Plastics Co., Inc. Bronx – Bronx County

Long Island Power Authority - Service Territory

American Technical Ceramics North Shore Health System

Huntington Station – Suffolk County Manhasset – Nassau County

National Grid - Service Territory

Albany International Corp. Homer – Cortland County Albany Molecular Research, Inc. Albany – Albany County Borg Warner Morse Tech Corp. Cortland – Cortland County Cooper Hand Tools Cortland – Cortland County Dielectric Laboratories, Inc. Cazenovia – Madison County Diemolding Corporation Canastota – Madison County

General Electric Plastics Selkirk – Albany County Intertek Testing Services Cortland – Cortland County Mohawk Paper Mills Cohoes – Albany County Natrium Products, Inc. Cortland – Cortland County OAB Holdings, Inc. Buffalo – Erie County Welch Allyn Data Collection Inc. Skaneateles Falls – Onondaga County

New York State Electric and Gas – Service Territory

Agri-Mark, Inc.

Chateaugay – Franklin County

B. COMPANIES NOT IN JOB COMPLIANCE

Con Edison - Service Territory

East Harlem Arts & Education Local Development Corp.
New York – New York County

National Grid - Service Territory

Cascades Tissue Group Organichem, Inc.

Waterford – Saratoga County Rensselaer – Rensselaer County

Interface Solutions, Inc.

Fulton – Oswego County

3. Transfer of Industrial Power

Exolon Company Tonawanda – Erie County General Semiconductor, Inc Westbury – Nassau County

ILC Data Device Corporation Bohemia – Suffolk County ORC Plastics Oneida – Madison County

4. Economic Development Plan for Use of Industrial Incentive Awards

OTHER BUSINESS

5. 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:

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

Bernard P. McGarry, Member (Albany, NY)

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

Kevin S. Corbett, Member (Excused)

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

Angela Graves Deputy Corporate Secretary, 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

1. Adoption of Minutes

The minutes of the meeting of December 20, 2007, 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 24 Power for Jobs (“PFJ”) customers as listed in Exhibits “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.

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 24 PFJ customers, 20 of which are meeting their current job commitment and are listed in Exhibit “A.” However, four customers reported actual job numbers below their contractual commitment; we are recommending that these customers have their allocations reduced proportionately to their job shortfalls where appropriate. These customers are listed in Exhibit “B.” Collectively, these organizations have agreed to retain more than 39,000 jobs in New York State in exchange for 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 24 businesses 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:

COMPANIES IN JOB COMPLIANCE

Con Edison - Service Territory

Bank of New York New York – New York County New York Presbyterian Hospital New York – New York County NYU Medical Center New York – New York County

Pepsi Cola Bottling Company College Point – Queens County Streamline Plastics Co., Inc. Bronx – Bronx County

Long Island Power Authority - Service Territory

American Technical Ceramics North Shore Health System

Huntington Station – Suffolk County Manhasset – Nassau County

National Grid - Service Territory

Albany International Corp. Homer – Cortland County Albany Molecular Research, Inc. Albany – Albany County Borg Warner Morse Tech Corp. Cortland – Cortland County Cooper Hand Tools Cortland – Cortland County Dielectric Laboratories, Inc. Cazenovia – Madison County Diemolding Corporation Canastota – Madison County

General Electric Plastics Selkirk – Albany County Intertek Testing Services Cortland – Cortland County Mohawk Paper Mills Cohoes – Albany County Natrium Products, Inc. Cortland – Cortland County OAB Holdings, Inc. Buffalo – Erie County Welch Allyn Data Collection Inc. Skaneateles Falls – Onondaga County

New York State Electric and Gas – Service Territory

Agri-Mark, Inc.

Chateaugay – Franklin County

COMPANIES NOT IN JOB COMPLIANCE

Con Edison - Service Territory

East Harlem Arts & Education Local Development Corp.
New York – New York County