ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

July 22, 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 June 18, 2008

 

 

2.             Power for Jobs Extended Benefits Recommendations

 

A.      ELECTRICITY SAVINGS REIMBURSEMENTS:

 

Central Hudson Electric & Gas – Service Territory

               

Northeast Solite Corp. Mount Marion – Ulster County

 

Con Edison - Service Territory

 

A. Stein Meat Products, Inc. Brooklyn - Kings County   Acme Architectural Products, Inc. Brooklyn - Kings County   American Cancer Society New York - New York County   Greater Jamaica Development Corp. Jamaica - Queens County   Intrepid Museum Foundation New York - New York County   Lincoln Center for the Performing Arts  New York - New York County

Long Island Jewish Medical Center Manhasset - Nassau County   Memorial Sloan-Kettering Cancer Center New York - New York County   Mount Sinai Medical Center New York - New York County   Norampac New York City, Inc. Maspeth - Queens County   Pepsi Cola Bottling Company College Point - Queens County

 

National Grid – Service Territory

 

Applied Energy Solutions Caledonia - Livingston County   Borg Warner Morse TEC Corp. Cortland - Cortland County   Consumers Beverages, Inc. Buffalo - Erie County Corning, Inc. Canton - St. Lawrence County   Dal Tile Corporation Olean - Cattaraugus County   Dielectric Laboratories, Inc. Cazenovia - Madison County   Fitzpatrick & Weller, Inc. Ellicottville - Cattaraugus County   Interface Solutions, Inc. Fulton - Oswego County   Kilian Manufacturing Corporation  Syracuse - Onondaga County

Natrium Products, Inc. Cortland - Cortland County   Oldcastle Precast Inc. South  Bethlehem - Albany County   Organichem, Inc. Rensselaer - Rensselaer County Quad Graphics, Inc. Saratoga Springs - Saratoga County   Queensboro Farm Products, Inc. Canastota - Madison County   Sorrento Lactalis, Inc. Buffalo - Erie County   St. Joseph's Hospital Health Center Syracuse - Onondaga County Syracuse Label Co., Inc. Liverpool - Onondaga County   Welch Allyn Data Collection Inc.  Skaneateles Falls - Onondaga County

 

New York State Electric & Gas – Service Territory

 

A.T. Reynolds & Sons, Inc. Kiamesha Lake - Sullivan County   Agri-Mark, Inc. Chateaugay - Franklin County   Air-Flo Manufacturing Prattsburgh - Steuben 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   IEC Electronics Corp. Newark - Wayne County   Merritt Plywood Machinery, Inc. Lockport - Niagara County   Norwich Aero Products, Inc. Norwich - Chenango County   Vail Ballou Press, Inc. Binghamton - Broome County

 

Rochester Gas & Electric – Service Territory

 

Gorbel Corporation Fishers - Ontario County

Newport Rochester Inc. Rochester - Monroe County

 

 

B.      POWER FOR JOBS – CONTRACT EXTENSIONS

 

Children’s Museum of Manhattan New York – New York County

Chloe Foods Brooklyn – Kings 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)       Fort Myers Interactive Video, 1408 Bayview Ct., Fort Myers, FL

 

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

Kenneth Schoetz, Chairman (Albany, NY)

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

Bernard P. McGarry, Member (Albany, NY)

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

 

 

Also in attendance were:

 

Roger B. Kelley                    President and Chief Executive Office, NYPA

Gil Quiniones                        Acting COO & EVP – Energy Marketing and Corporate Affairs, NYPA

Thomas J. Kelly                    Executive Vice President, General Counsel and Chief of Staff, NYPA

Anne B. Cahill                      Corporate Secretary, NYPA

Joseph C. Carline                 Assistant General Counsel, NYPA

James Yates                          Senior Vice President, Marketing and Economic Development, NYPA

Angela Graves                      Deputy Corporate Secretary, NYPA

James F. Pasquale                Director – Business Power Allocations, Compliance and Municipal and Cooperative Marketing, NYPA

Michael Saltzman                 Director – Media Relations, NYPA

Mary Jean Frank                  Associate Corporate Secretary, NYPA

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

 

 

 

 

 

 

Introduction

 

                Chairman Schoetz introduced himself and said that he had been named as Chairman of the Board by Governor Paterson on July 14^th.               

 

1.             Adoption of Minutes

The minutes of the meeting of June 18, 2008 were unanimously adopted.

 

2.             Power for Jobs Extended Recommendations

 

SUMMARY

 

The Members of the Economic Development Power Allocation Board (“EDPAB”) are requested to approve electricity savings reimbursements for the 43 Power for Jobs (“PFJ”) customers listed in Exhibit “A” and contract extensions for the two PFJ customers listed in Exhibit “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. 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 43 companies listed in Exhibit “A”, all of whom are meeting their current job commitments. In addition, the Board is requested to recommend that the Authority Trustees approve contract extensions for the two companies listed on Exhibit “B”. Collectively, these organizations have agreed to retain more than 46,000 jobs in New York State in exchange for rebates. The extended benefits 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 43 business listed on Exhibit “A” and contract extensions to the two customers listed on Exhibit “B.”

 

                Mr. James Pasquale presented the highlights of staff’s recommendations to the Board.  He stated that because one of the two customers whose contracts are being recommended for extension had fallen below its job commitments, that customer will be sent the reconsideration criteria previously approved by the Board and asked to respond within 30 days as to whether any extenuating circumstances justified its power allocation remaining the same.  Staff will then review the company’s response and report back to the Board on any further recommended action.

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.            ELECTRICITY SAVINGS REIMBURSEMENTS:

 

Central Hudson Electric & Gas – Service Territory

               

Northeast Solite Corp. Mount Marion – Ulster County

 

Con Edison - Service Territory

 

A. Stein Meat Products, Inc. Brooklyn - Kings County   Acme Architectural Products, Inc. Brooklyn - Kings County   American Cancer Society New York - New York County   Greater Jamaica Development Corp. Jamaica - Queens County   Intrepid Museum Foundation New York - New York County   Lincoln Center for the Performing Arts   New York - New York County

Long Island Jewish Medical Center Manhasset - Nassau County   Memorial Sloan-Kettering Cancer Center New York - New York County   Mount Sinai Medical Center New York - New York County   Norampac New York City, Inc. Maspeth - Queens County   Pepsi Cola Bottling Company College Point - Queens County

 

National Grid – Service Territory

 

Applied Energy Solutions Caledonia - Livingston County     Borg Warner Morse TEC Corp. Cortland - Cortland County   Consumers Beverages, Inc. Buffalo - Erie County   Corning, Inc. Canton - St. Lawrence County   Dal Tile Corporation Olean - Cattaraugus County   Dielectric Laboratories, Inc. Cazenovia - Madison County   Fitzpatrick & Weller, Inc. Ellicottville - Cattaraugus County   Interface Solutions, Inc. Fulton - Oswego County   Kilian Manufacturing Corporation  Syracuse - Onondaga County

Natrium Products, Inc. Cortland - Cortland County     Oldcastle Precast Inc. South  Bethlehem - Albany County   Organichem, Inc. Rensselaer - Rensselaer County   Quad Graphics, Inc. Saratoga Springs - Saratoga County   Queensboro Farm Products, Inc. Canastota - Madison County   Sorrento Lactalis, Inc. Buffalo - Erie County   St. Joseph's Hospital Health Center Syracuse - Onondaga County Syracuse Label Co., Inc. Liverpool - Onondaga County   Welch Allyn Data Collection Inc.  Skaneateles Falls - Onondaga County

 

New York State Electric & Gas – Service Territory

 

A.T. Reynolds & Sons, Inc. Kiamesha Lake - Sullivan County   Agri-Mark, Inc. Chateaugay - Franklin County   Air-Flo Manufacturing Prattsburgh - Steuben 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   IEC Electronics Corp. Newark - Wayne County   Merritt Plywood Machinery, Inc. Lockport - Niagara County   Norwich Aero Products, Inc. Norwich - Chenango County   Vail Ballou Press, Inc. Binghamton - Broome County

 

Rochester Gas & Electric – Service Territory

 

Gorbel Corporation Fishers - Ontario County

Newport Rochester Inc. Rochester - Monroe County

 

               

                B.            POWER FOR JOBS – CONTRACT EXTENSIONS

 

Children’s Museum of Manhattan New York – New York County

Chloe Foods Brooklyn – Kings 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 43 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 47,700 kW until June 30, 2009.

 

3.             Other Business

 

Mr. McCullough said that he wanted to make a statement to the members of the Board.  He said that he had tendered his letter of retirement as a member of the Power Authority’s Board of Trustees effective August 2, 2008 and that since his Board term expires in September, this would be his last meeting.  Mr. McCullough said that it had been a pleasure to work with Mr. Duncan and Mr. McGarry over the years and thanked them for their service on the Board.  Mr. Duncan said that he was going to miss Mr. McCullough and thanked him for his efforts as Chairman of the Board.  Mr. McGarry echoed those sentiments and also thanked Mr. McCullough for his service.  Chairman Schoetz thanked Mr. McCullough for his tenure on the Board and wished him good luck in his future endeavors.