ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

MINUTES

 

June 16, 2010

Video Conference – 10:00 a.m.

 

                                New York Power Authority Offices:

                                                123 Main Street, 16th Floor, White Plains, NY

                                                501 7th Avenue, 9th Floor, New York, NY

                                                830 Barnhart Island, Massena, NY

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

                City of Oswego Community Development, 20 West Oneida Street, 3rd Floor, Oswego, NY

                                               

1.       Approval of the Minutes of the May 17, 2010 Regular Meeting.

 

2.                   Power for Jobs Extended Benefits Recommendations for

                Electricity Savings Reimbursements                                               

 

A.               COMPANIES IN JOB COMPLIANCE

 

Con Edison - Service Territory

 

Belmont Metals, Inc.

Brooklyn - Kings County

 

Display Producers, Inc.

Bronx - Bronx County

 

Greater Jamaica Development Corp. Jamaica - Queens County

 

IBM – Westchester

Armonk - Westchester County

Norampac New York City, Inc.

Maspeth - Queens County

 

NYU Medical Center

New York - New York County

 

S. R. Guggenheim Museum

New York - New York County

 

Long Island Power Authority - Service Territory

 

Enzo Clinical Labs, Inc.

Farmingdale - Suffolk County

 

Good Samaritan Hospital

West Islip - Suffolk County

 

Kozy Shack, Inc.

Hicksville - Nassau County

Standard Microsystems Corp.

Hauppauge - Suffolk County

 

Ultimate Precision Metal

Farmingdale - Suffolk County

 

National Grid - Service Territory

 

Associated Brands, Inc.

Medina - Orleans County

 

BorgWarner Morse TEC

Cortland - Cortland County

 

Burrows Paper Corp.

Little Falls - Herkimer County

Carville National Leather Corp. Johnstown - Fulton County

 

Clarkson University

Potsdam - St. Lawrence County


Cortland Line Co., Inc.

Cortland - Cortland County

 

Crucible Industries LLC

Syracuse - Onondaga County

 

Dielectric Laboratories, Inc.

Cazenovia - Madison County

 

Eastman Machine Company

Buffalo - Erie County

 

Fitzpatrick & Weller, Inc.

Ellicottville - Cattaraugus County

 

G L & V Sandy Hill Inc.

Hudson Falls - Washington County

 

Higbee Inc.

Syracuse - Onondaga County

 

HMI Metal Powders

Clayville - Oneida County

 

Intertek Testing Services

Cortland - Cortland County

 

Keystone Corporation

Buffalo - Erie County

Kilian Manufacturing Corporation Syracuse - Onondaga County

 

Lewis County General Hospital

Lowville - Lewis County

 

Luvata Buffalo, Inc.

Buffalo - Erie County

Lydall Manning

Green Island - Albany County

 

Meloon Foundries, Inc.

Syracuse - Onondaga County

 

Mohawk Paper Mills

Cohoes - Albany County

 

Nathan Littauer Hospital & Nursing Home

Gloversville - Fulton County

 

Norlite Corp.

Cohoes - Albany County

 

Oldcastle Precast Inc.

South  Bethlehem - Albany County

 

Rome Specialty Company, Inc.

Rome - Oneida County

 

Sorrento Lactalis, Inc.

Buffalo - Erie County

 

Syracuse Casting Sales Corp.

Cicero - Onondaga County

 

Syracuse Plastics, Inc.

Liverpool - Onondaga County

 

Syracuse University

Syracuse - Onondaga County

 

Turbine Engine Components Technologies

Whitesboro - Oneida County

 

New York State Electric & Gas

 

Ultralife Batteries, Inc.

Newark - Wayne County

 

Rochester Gas & Electric

 

XLI Corporation

Rochester - Monroe County

 

 

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

             Awards and Economic Development Power Contract Extensions

 

4.                Transfers of Industrial Power

 

5.                Other Business

 

6.                 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, 501 7th Avenue, 9th Floor, New York, NY

3)       New York Power Authority, 830 Barnhart Island, Massena, NY

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

5)       City of Oswego Community Development, 20 West Oneida Street, 3rd Floor, Oswego, NY

 

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

Kenneth Schoetz, Chairman (Buffalo, NY)

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

Robert B. Catell, Member, (New York, NY)

Mary Vanouse, Member, (Oswego, NY)

 

 

Also in attendance were:

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

Karen Delince                      Corporate Secretary, NYPA

Angela Graves                      Deputy Secretary, NYPA

MaryJean Frank                  Associate Secretary, NYPA

Lorna Johnson                     Assistant Secretary, NYPA

Michael Huvane                  Vice President - Marketing, NYPA

Michael Saltzman               Director – Media Relations, NYPA

Timothy Muldoon               Manager – Business Power Allocations & Compliance, NYPA

Dennis Eccleston                 Chief Information Officer, Information Technology, NYPA


 

1.             Adoption of Minutes

The Minutes of the Regular Meeting of May 17, 2010.


 

2.             Power for Jobs Program – Extended Benefits

 

SUMMARY

 

The Members of the Economic Development Power Allocation Board (EDPAB”) are to recommend that the Power Authority’s Trustees (“Trustees”) approve extended benefits for 44 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 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.  Recently, an “extender” law was executed modifying the expiration of the program to June 2, 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 payments (rebates) to the 44 PFJ customers, all of which are meeting their job commitment and are listed in Exhibit “A”.  Collectively, these organizations have agreed to retain more than 30,000 jobs in New York State in exchange for rebates. These recommended payments are for rebate periods prior to the expiration of the program. All PFJ rebate customers are eligible for payments through the program’s expiration June 2, 2010.

 

 

 

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 44 business listed in Exhibit “A”.

 

Mr. James Pasquale presented staff’s recommendations to the Board.  In response to a question from Judge Eugene Nicandri, Mr. Pasquale said that the Board would be asked to approve rebate payments through the June 2, 2010 sunset date for the PFJ program after the customers have submitted their bills.

                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:

 

Con Edison - Service Territory

 

Belmont Metals, Inc.

Brooklyn - Kings County

 

Display Producers, Inc.

Bronx - Bronx County

 

Greater Jamaica Development Corp. Jamaica - Queens County

 

IBM – Westchester

Armonk - Westchester County

Norampac New York City, Inc.

Maspeth - Queens County

 

NYU Medical Center

New York - New York County

 

S. R. Guggenheim Museum

New York - New York County

 

Long Island Power Authority - Service Territory

 

Enzo Clinical Labs, Inc.

Farmingdale - Suffolk County

 

Good Samaritan Hospital

West Islip - Suffolk County

 

Kozy Shack, Inc.

Hicksville - Nassau County

Standard Microsystems Corp.

Hauppauge - Suffolk County

 

Ultimate Precision Metal

Farmingdale - Suffolk County

 

National Grid - Service Territory

 

Associated Brands, Inc.

Medina - Orleans County

 

BorgWarner Morse TEC

Cortland - Cortland County

 

Burrows Paper Corp.

Little Falls - Herkimer County

Carville National Leather Corp. Johnstown - Fulton County

 

Clarkson University

Potsdam - St. Lawrence County

Cortland Line Co., Inc.

Cortland - Cortland County

 

Crucible Industries LLC

Syracuse - Onondaga County

 

Dielectric Laboratories, Inc.

Cazenovia - Madison County

 

Eastman Machine Company

Buffalo - Erie County

 

Fitzpatrick & Weller, Inc.

Ellicottville - Cattaraugus County

 

G L & V Sandy Hill Inc.

Hudson Falls - Washington County

 

Higbee Inc.

Syracuse - Onondaga County

 

HMI Metal Powders

Clayville - Oneida County

 

Intertek Testing Services

Cortland - Cortland County

 

Keystone Corporation

Buffalo - Erie County

Kilian Manufacturing Corporation Syracuse - Onondaga County

 

Lewis County General Hospital

Lowville - Lewis County

 

Luvata Buffalo, Inc.

Buffalo - Erie County

Lydall Manning

Green Island - Albany County

 

Meloon Foundries, Inc.

Syracuse - Onondaga County

Mohawk Paper Mills

Cohoes - Albany County

 

Nathan Littauer Hospital & Nursing Home

Gloversville - Fulton County

 

Norlite Corp.

Cohoes - Albany County

 

Oldcastle Precast Inc.

South  Bethlehem - Albany County

 

Rome Specialty Company, Inc.

Rome - Oneida County

 

Sorrento Lactalis, Inc.

Buffalo - Erie County

 

Syracuse Casting Sales Corp.

Cicero - Onondaga County

 

Syracuse Plastics, Inc.

Liverpool - Onondaga County

 

Syracuse University

Syracuse - Onondaga County

 

Turbine Engine Components Technologies

Whitesboro - Oneida County

 

New York State Electric & Gas

 

Ultralife Batteries, Inc.

Newark - Wayne County

 

Rochester Gas & Electric

 

XLI Corporation

Rochester - Monroe 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 217 of the Laws of 2009; and be it further

 

                RESOLVED, That the Board recommends to the Power Authority of the State of New York the 44 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 44,270 kW for the period through May 15, 2010.

 

 


 


 

3.             Power for Jobs Extended Benefits, Energy Cost

Savings Benefit Awards and Economic Development

Power Program Contract Extensions                            

 

SUMMARY

 

                This is a placeholder item. 

 

Subject to the approval of legislation by the Governor and State Legislature, the Board will be asked to recommend to the Power Authority the extension of Power for Jobs contracts and rebates, Energy Cost Savings Benefits awards and the contract extensions.

 

               

Mr. Pasquale explained that this placeholder item had been included in the agenda in anticipation of new economic development power legislation being enacted by the date of the meeting.  He said that there is not much new to report on the legislation under consideration, with there being no reconciliation yet of the Energize New York bill supported by the Governor and the Senate with the Assembly bill that is based more on Authority dollars than Authority power.  In response to a question from Chairman Kenneth Schoetz, Mr. Pasquale said that he believed the sticking point for the Assembly is the power currently allocated to the rural and domestic customers of the three upstate investor-owned utilities (National Grid, New York State Electric and Gas Corporation and Rochester Gas and Electric Corporation).  Mr. Robert Catell said that it was possible that a resolution of the ongoing budget stalemate could include a compromise economic development power bill.  Responding to a question from Judge Nicandri, Mr. Pasquale said that he has heard many in the Assembly want to see the benefit from the rural and domestic power allocation remain upstate.  In response to a question from Ms. Mary Vanouse, Mr. Pasquale said that the Energize New York bill included two provisions to address this concern:  (1) a minimum of 300 MW of power would remain upstate and (2) the effects on the residential consumers would be mitigated by permanent discounts on their monthly electric bills.  Chairman Schoetz said that Mr. Pasquale had been doing a good job of keeping the Board members apprised of the status of this issue and asked him to keep doing so. 

 

 

 

 


 

4.             Transfers of Industrial Power

               

SUMMARY

 

The Members of the Economic Development Power Allocation Board (“EDPAB”) are requested to recommend approval of the transfers as detailed below. 

 

BACKGROUND

               

                EDPAB is requested to approve the transfer of power allocations for three existing companies that have changed ownership or corporate names for various business reasons. EDPAB has approved transfers of this nature at past meetings.

 

DISCUSSION

 

The proposed transferees are as follows:

 

Crucible Specialty Metals, in Syracuse, NY has been operating as a steel manufacturer for specialty steel products for over 130 years.  Crucible Industries LLC, a new company formed to operate the old division, acquired all the operating assets of Crucible Specialty Metals Division on October 23, 2009.  Crucible requested a transfer of their 4,000 kW Power for Jobs (“PFJ”) Extended Benefits allocation in order to receive the Electricity Savings Reimbursements (“rebate”) that they are eligible for until the program’s expiration date.  The company continues to honor the contract terms and commitments.

 

Schenectady International, in Schenectady, NY is one of the top manufacturers of chemical intermediates and has been in operation since 1906With no transfer of ownership involved, their name was changed to SI Group, Inc. in 2006.  SI Group has requested the transfer of their 1,500 kW PFJ Extended Benefits allocation in order to receive the rebate that they are eligible for until the program’s expiration date.  The company continues to honor all the contract terms and commitments.

 

Ventre Packaging, in Syracuse, New York has specialized in sauces such as barbecue, seafood and spaghetti imported internationally and domestically since 1938.  Giovanni Food Company, Inc. has acquired Ventre Packaging and will be continuing Giovanni Food operations at 6050 Court Street Road, Syracuse, NY 13206, Ventre Packaging’s location.  The company will honor all of the terms and commitments of its 74 kW Power for Jobs (“PFJ”) contract with the Authority.

 

RECOMMENDATION

 

It is recommended that EDPAB approve the name and or location changes detailed above.

 

 


 

5.             Next Meeting

 

                The next meeting of the Board is to be determined.

                Chairman Schoetz said that the next EDPAB meeting is tentatively scheduled for September 28, 2010, the day before the Authority’s next Trustees’ Meeting, although if an economic development power bill is enacted, it may be necessary to schedule another meeting before then.  He said that he still intends to schedule an in-person meeting of the Board in the not-too-distant future.  Mr. Catell said that he looked forward to meeting all of the other Board members face to face.