ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

MINUTES

 

March 22, 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

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

                                Office of Business & Community Relations, 103 Rich Hall, SUNY Oswego, Oswego, NY

                                King Video Conference Center, 14 Suntree Place, Melbourne, FL

 

                                               

1.       Approval of the Minutes of the February 22, 2010 Regular Meeting.

 

2.                   Power for Jobs Extended Benefits Recommendations for

                Electricity Savings Reimbursements                                               

 

A.               COMPANIES IN JOB COMPLIANCE

 

Con Edison - Service Territory

 

American Ballet Theater

New York - New York County

 

AT&T

White Plains - Westchester County

 

Columbia University – Trustees

New York - New York County

 

Continental Food Products, Inc.

Flushing - Queens County

 

Edison Price Lighting, Inc.

New York - New York County

Lincoln Center for the Performing Arts

New York - New York County

 

Long Island Jewish Medical Center

Manhasset - Nassau County

 

New York Presbyterian Hospital

New York - New York County

 

S. R. Guggenheim Museum

New York - New York County

 

The Museum of Modern Art

New York - New York County

 

Long Island Power Authority - Service Territory

 

Ametek Hughes-Treitler

Garden City - Nassau County

 

B.H. Aircraft Company, Inc.

Ronkonkoma - Suffolk County

Kozy Shack, Inc.

Hicksville - Nassau County

 

Standard Microsystems Corp.

Hauppauge - Suffolk County

 

National Grid - Service Territory

 

Bristol-Myers Squibb Company

East Syracuse - Onondaga County

 

C. R. Bard, Inc.

Queensbury - Warren County

Clarkson University

Potsdam - St. Lawrence County

 

Cooper Industries

Syracuse - Onondaga County

 

Kilian Manufacturing Corporation

Syracuse - Onondaga County

 

Lewis County General Hospital

Lowville - Lewis County

Mayer Bros. Apple Products, Inc.

West Seneca - Erie County

 

Robison & Smith, Inc.

Gloversville - Fulton County

Schilling Forge, Inc.

Syracuse - Onondaga County

 

St. Joseph's Hospital Health Center

Syracuse - Onondaga County

 

TMP Technologies, Inc.

Buffalo - Erie County

 

Vicks Lithograph & Printing

Yorkville - Oneida County

 

New York State Electric & Gas

 

Boreal Water Collections, Inc.

Kiamesha Lake - Sullivan County

 

Corning (Erwin Plant)

Corning - Steuben County

Kraft Foods (Walton Plant)

Walton - Delaware County

 

Rochester Gas & Electric

 

Newport Rochester

Rochester - Monroe County

XLI Corporation

Rochester - Monroe 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, 123 Main Street, White Plains, NY

2)       New York Power Authority, 501 7th Avenue, 9th Floor, New York, NY

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

4)       Office of Business & Community Relations, 103 Rich Hall,  SUNY Oswego, Oswego, NY

5)       King Video Conference Center, 14 Suntree Place, Melbourne, FL

 

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

Kenneth Schoetz, Chairman (Buffalo, NY)

Eugene L. Nicandri, Member, (Melbourne, FL)

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

Lorna Johnson                     Assistant Secretary, NYPA

Michael Huvane                  Director – Business Muni & Coop Marketing & Economic Development, 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 February 22, 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 31 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.

 

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 31 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 31,000 jobs in New York State in exchange for rebates. The rebate program will be in effect until May 15, 2010, 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 31 business listed in Exhibits “A”.

Mr. Michael Huvane presented the highlights of staff’s recommendation to the Board.  In response to a question from Judge Eugene Nicandri, Mr. Huvane said that the  MW allocated for Power for Jobs program is divided among two types of  customers; those that have  elected to receive power or rebates; staff is requesting approval for those customers that chose rebates.

Responding to another question from Judge Nicandri, Mr. James Pasquale said that 295 MW are allocated to those customers currently in the program, down from a high of 483.   As customers exit the program, legislation does not allow the MW to be used for new allocations.

                Power for Jobs Legislation

                Chairman Kenneth Schoetz asked Mr. Pasquale to brief the Board members on the Power for Jobs legislation.  Mr. Pasquale said that he was working with the Governor’s staff in this regard.  The Governor has also issued a press release about the program, a copy of which Mr. Pasquale will forward to all EDPAB members.  Mr. Pasquale said that the program the Governor is proposing would be called “Energize New York.”  Under the program, 910 MW (half hydro and half power purchased on the open market) would be allocated through long-term contracts.  Mr. Pasquale pointed out that the recent one-year extensions of the Power for Jobs and Energy Cost Savings Benefits programs did not provide electric price certainty for businesses.  Longer-term contracts would encourage capital investment.  The amount of power that would be allocated under “Energize New York” is approximately 30% more than the power currently allocated under the Power for Jobs and Energy Cost Savings Benefits programs.  Businesses in the current programs will be eligible to apply for the new program. 

Mr. Pasquale said that the bill includes 200 MW of power to be set aside for economic development to attract new businesses to the State and support other businesses that want to expand in the State.

In response to a question from Mr. Robert Catell, Mr. Pasquale said that the current one-year contracts can’t be described as long-term; however, the contract term will be increased to up to seven years in the new program.

In response to questions from Ms. Mary Vanouse and Judge Nicandri, Mr. Pasquale said that Senator Aubertine’s and Assemblyman Cahill’s bills are similar to the Governor’s proposal in that they both provide for longer-term contracts and use of the R&D block of hydros.  He said that using the 450 MW of hydropower currently sold to the three upstate investor-owned utilities (“IOUs”) for either of their programs would help lower and stabilize costs. 

In response to another question from Judge Nicandri, Mr. Pasquale said that if a  business relocates to a municipality that is a Power Authority customer , that business would not be eligible to receive an Energize New York allocation, as the municipal system is already enjoying the benefit of low rates from NYPA hydropower. The municipal systems, however, have their own economic development program, which the business may apply to.  Responding to another question from Judge Nicandri, Mr. Pasquale said that 54 MW is set aside for that program, of which approximately 20 MW has been used.  In response to further questions from Judge Nicandri, Mr. Pasquale said that the guidelines outlining the criteria for allocation mirrored that of other New York economic development power programs.  Mr. Huvane explained that the Authority serves the municipal systems, not the businesses directly in order to keep the overall system rate down while encouraging economic development.

In response to a question from Chairman Schoetz, Mr. Pasquale said that the Authority provided the April 15th date to the Governor’s office.  He pointed out that the Governor’s program would not be effective until July 1, 2011 and that at the expiration of the current PFJ and ECSB contracts, all customer benefits would be extended to June 30, 2011.  For the new program Mr. Pasquale said that staff has to develop new applications and then review and summarize all completed applications before presenting them to EDPAB for approval.

In response to a question from Judge Nicandri, Mr. Pasquale said that staff would begin to bring applications for the new program to EDPAB early next year.

                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

 

American Ballet Theater

New York - New York County

 

AT&T

White Plains - Westchester County

 

Columbia University – Trustees

New York - New York County

 

Continental Food Products, Inc.

Flushing - Queens County

 

Edison Price Lighting, Inc.

New York - New York County

Lincoln Center for the Performing Arts

New York - New York County

 

Long Island Jewish Medical Center

Manhasset - Nassau County

 

New York Presbyterian Hospital

New York - New York County

 

S. R. Guggenheim Museum

New York - New York County

 

The Museum of Modern Art

New York - New York County

 

Long Island Power Authority - Service Territory

 

Ametek Hughes-Treitler

Garden City - Nassau County

 

B.H. Aircraft Company, Inc.

Ronkonkoma - Suffolk County

Kozy Shack, Inc.

Hicksville - Nassau County

 

Standard Microsystems Corp.

Hauppauge - Suffolk County

 

National Grid - Service Territory

 

Bristol-Myers Squibb Company

East Syracuse - Onondaga County

 

C. R. Bard, Inc.

Queensbury - Warren County

 

Clarkson University

Potsdam - St. Lawrence County

 

Cooper Industries

Syracuse - Onondaga County

 

Kilian Manufacturing Corporation

Syracuse - Onondaga County

 

Lewis County General Hospital

Lowville - Lewis County

Mayer Bros. Apple Products, Inc.

West Seneca - Erie County

 

Robison & Smith, Inc.

Gloversville - Fulton County

 

Schilling Forge, Inc.

Syracuse - Onondaga County

 

St. Joseph's Hospital Health Center

Syracuse - Onondaga County

 

TMP Technologies, Inc.

Buffalo - Erie County

 

Vicks Lithograph & Printing

Yorkville - Oneida County

 

New York State Electric & Gas

 

Boreal Water Collections, Inc.

Kiamesha Lake - Sullivan County

 

Corning (Erwin Plant)

Corning - Steuben County

Kraft Foods (Walton Plant)

Walton - Delaware County

 

 

 

Rochester Gas & Electric

 

Newport Rochester

Rochester - Monroe County

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 31 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 32,359  kW for the period through May 15, 2010.

 

 


 


 

3.             Other Business

 

Chairman Schoeltz said that he would like to coordinate the June meeting with that of the Power Authority’s Trustees’ Meeting at the Niagara Power Project.  At that meeting, the members would be briefed on substantive EDPAB issues. 

 

 

 

 


 

4.             Next Meeting

 

                The next meeting of the Board is to be determined.