ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

July 22, 2009

Videoconference – 9:00 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

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

                                Empire State Development Corp., 95 Perry Street, Suite 500, Buffalo, NY

                                               

1.             Approval of the Minutes of the Meeting of June 26, 2009.

 

2.                    Power for Jobs Extended Benefits, Energy Cost Savings Benefits

                Awards and Economic Development Power Contracts Extensions

 

A.               COMPANIES IN JOB COMPLIANCE

 

Central Hudson Gas & Electric - 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   AT&T White Plains - Westchester County   Bank of New York New York - New York County   Cecilware Corp. Long Island City - Queens County   Continental Food Products, Inc. Flushing - Queens County   Diller-Quaile School of Music New York - New York County

IBM Corp. White Plains - Westchester 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   Streamline Plastics Co., Inc. Bronx - Bronx County   The Museum of Modern Art New York - New York County

 

Long Island Power Authority - Service Territory

 

Good Samaritan Hospital West Islip - Suffolk County   J. P. Morgan/Chase Lake Success - Nassau County

J. P. Morgan/Chase Uniondale - Nassau County   Ultimate Precision Metal    Farmingdale - Suffolk County

National Grid - Service Territory

 

Birds Eye Foods, Inc. Fulton - Oswego County   Carville National Leather Corp. Johnstown - Fulton County   Cascades Tissue Group Waterford - Saratoga County   Clarkson University Potsdam - St. Lawrence County

Finch Pruyn & Company Inc. Glens Falls - Warren County   General Mills Buffalo - Erie   Spray Nine Corporation Johnstown - Fulton County   Syracuse Plastics, Inc.    Liverpool - Onondaga County

 

New York State Electric & Gas – Service Territory

 

A. T. Reynolds & Sons, Inc. Kiamesha Lake - Sullivan County   Air-Flo Manufacturing Prattsburgh - Steuben County   Audio Sears Stamford - Delaware County   Corning, Inc. (Erwin Plant) Corning - Steuben County   Corning, Inc. (Big Flats) Big Flats - Chemung County   Corning, Inc. (Northside) Corning - Steuben County   Corning, Inc. (SCC & IDM) Corning - Steuben County   Corning, Inc. (Southside) Corning - Steuben County

Corning, Inc. (Sullivan Park) Corning - Steuben County   Derrick Corp. Cheektowaga - Erie County   Endicott Interconnect Technologies Endicott - Broome County   IEC Electronics Corp. Newark - Wayne County   Milward Alloys Lockport - Niagara County   Soucy USA Champlain - Clinton County   Ultralife Batteries, Inc. Newark - Wayne County   Vail Ballou Press, Inc. Binghamton - Broome County

 

Rochester Gas & Electric – Service Territory

 

IBM Corporation Rochester - Monroe County

XLI Corporation Rochester - Monroe County

 

B.               COMPANIES NOT IN JOB COMPLIANCE

 

National Grid – Service Territory

 

Standard Manufacturing Co., Inc. Troy - Rensselaer County

Thermold Corp.   Canastota - Madison County

 

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, 123 Main Street, White Plains, NY

2)       New York Power Authority, 30 South Pearl Street, Albany NY

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

4)       Empire State Development Corp., 95 Perry Street, Suite 500, Buffalo, NY

 

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

Kenneth Schoetz, Chairman (Buffalo, NY)

Bernard P. McGarry, Member (Albany, NY)

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

 

Also in attendance were:

Karen Delince                       Corporate Secretary, NYPA

James F. Pasquale                Acting Senior Vice President - Marketing & Economic Development, NYPA

Paul Finnegan                       Senior Vice President - Public & Government Affairs, NYPA     

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

Mary Jean Frank                  Associate Corporate Secretary, NYPA

                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

1.             Adoption of Minutes

The minutes of the meeting of June 26, 2009 were unanimously adopted.

 

2.             Power for Jobs Program – Extended Benefits

 

SUMMARY

 

The Members of the Economic Development Power Allocation Board (“EDPAB”) are requested to recommend that the Power Authority’s Trustees (“Trustees”) approve extended benefits for 46 Power for Jobs (“PFJ”) customers as listed in Exhibit “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 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.  Chapter 217 of the Laws of 2009 included provisions extending the program benefits until May 15, 2010.

 

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 46 PFJ customers, 44 of which are meeting their current job commitment and are listed in Exhibit “A.” However, two customers reported actual job numbers below their contractual commitment staff is 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 56,000 jobs in New York State in exchange for rebates.  The rebate program will be in effect until May 15, 2010, 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 46 businesses listed in Exhibits “A” and “B.”

 

Mr. James Pasquale presented the highlights of staff’s recommendations to the Board.  In response to a question from Judge Eugene Nicandri, Mr. Pasquale said that these reimbursements were for rebate periods prior to June 30, 2009 and were therefore authorized under legislation prior to that which was enacted this past week.

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:

 

Central Hudson Gas & Electric - 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   AT&T White Plains - Westchester County   Bank of New York New York - New York County   Cecilware Corp. Long Island City - Queens County   Continental Food Products, Inc. Flushing - Queens County   Diller-Quaile School of Music New York - New York County

IBM Corp. White Plains - Westchester 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   Streamline Plastics Co., Inc. Bronx - Bronx County   The Museum of Modern Art New York - New York County

 

Long Island Power Authority - Service Territory

 

Good Samaritan Hospital West Islip - Suffolk County   J. P. Morgan/Chase Lake Success - Nassau County

J. P. Morgan/Chase Uniondale - Nassau County   Ultimate Precision Metal    Farmingdale - Suffolk County

 

 

National Grid - Service Territory

 

Birds Eye Foods, Inc. Fulton - Oswego County   Carville National Leather Corp. Johnstown - Fulton County   Cascades Tissue Group Waterford - Saratoga County   Clarkson University Potsdam - St. Lawrence County

Finch Pruyn & Company Inc. Glens Falls - Warren County   General Mills Buffalo - Erie   Spray Nine Corporation Johnstown - Fulton County   Syracuse Plastics, Inc.    Liverpool - Onondaga County

 

New York State Electric & Gas – Service Territory

 

A. T. Reynolds & Sons, Inc. Kiamesha Lake - Sullivan County   Air-Flo Manufacturing Prattsburgh - Steuben County   Audio Sears Stamford - Delaware County   Corning, Inc. (Erwin Plant) Corning - Steuben County   Corning, Inc. (Big Flats) Big Flats - Chemung County   Corning, Inc. (Northside) Corning - Steuben County   Corning, Inc. (SCC & IDM) Corning - Steuben County   Corning, Inc. (Southside) Corning - Steuben County

Corning, Inc. (Sullivan Park) Corning - Steuben County   Derrick Corp. Cheektowaga - Erie County   Endicott Interconnect Technologies Endicott - Broome County   IEC Electronics Corp. Newark - Wayne County   Milward Alloys Lockport - Niagara County   Soucy USA Champlain - Clinton County   Ultralife Batteries, Inc. Newark - Wayne County   Vail Ballou Press, Inc. Binghamton - Broome County

 

Rochester Gas & Electric – Service Territory

 

IBM Corporation Rochester - Monroe County

XLI Corporation Rochester - Monroe County

 

National Grid – Service Territory

 

Standard Manufacturing Co., Inc. Troy - Rensselaer County

Thermold Corp.   Canastota - Madison 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 46 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 55,385 kW for the period through June 30, 2009.