ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

MINUTES

 

May 17, 2010

Video Conference – 10:00 a.m.

 

 

                                New York Power Authority Offices:

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

                                                501 7^th Avenue, 9^th 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, 3^rd Floor, Oswego, NY

 

                                               

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

 

2.                   Power for Jobs Extended Benefits Recommendations for

                Electricity Savings Reimbursements                                               

 

A.               COMPANIES IN JOB COMPLIANCE

 

Central Hudson Gas & Electric – Service Territory

 

Northeast Solite Corp. Mount Marion - Ulster County

 

Con Edison - Service Territory

 

American Cancer Society New York - New York County   Bank of New York New York - New York County   Jacmel Jewelry, Inc. Long Island City - Queens County

Kingsbrook Jewish Medical Center Brooklyn - Kings County   Pepsi Cola Bottling Company College Point - Queens County

 

Long Island Power Authority - Service Territory

 

American Technical Ceramics Huntington Station-Suffolk County   John Hassall, Inc. Westbury - Nassau County   Madelaine Chocolates Rockaway Beach - Queens County

Maloya Laser Inc. Commack - Suffolk County   Silver Lake Cookie Co. Islip - Suffolk County

 

National Grid - Service Territory

 

Albany Molecular Research, Inc. Albany - Albany County   AMRI Rensselaer, Inc. Rensselaer - Rensselaer County   Applied Energy Solutions Caledonia - Livingston County   Bank of New York Oriskany - Oneida County   Bestway Enterprises Cortland - Cortland County   Cascades Tissue Group Waterford - Saratoga County   Cooper Hand Tools Cortland - Cortland County   Corning, Inc. Canton - St. Lawrence County   Dal Tile Corporation Olean - Cattaraugus County   Eastman Machine Company Buffalo - Erie County   Edward John Noble Hospital Gouverneur - St. Lawrence County   Finch Pruyn & Company Inc. Glen Falls - Warren County   Ford Motor Company Buffalo - Erie County   Gehring  Tricot Corp. Dolgeville - Herkimer County

Helmont Mills St. Johnsville - Montgomery County   McLane Eastern Baldwinsville - Onondaga County   Met Weld International, LLC Altamont - Albany County   Paul Bunyan Products, Inc. Preble - Cortland County   PCI Paper Conversions, Inc. Syracuse - Onondaga County   Power Pallet Schenectady - Schenectady County   Precious Plate, Inc. Niagara Falls - Niagara County   Queensboro Farm Products, Inc. Canastota - Madison County   Schenectady International, Inc. Schenectady - Schenectady County   Snyder Industries, Inc. N. Tonawanda - Niagara County   Syracuse Plastics, Inc. Liverpool - Onondaga County   Syracuse University Syracuse - Onondaga County   Watson Bowman Acme Corp. Amherst - Erie County

 

New York State Electric & Gas

 

Audio Sears Stamford - Delaware County   Corning, Inc. (Costar Plant) Oneonta - Otsego 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   Merritt Machinery, LCC Lockport - Niagara County

 

 

 

 

Rochester Gas & Electric

 

Flower City Printing, Inc. Rochester – Monroe County

 

 

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

             Awards and Economic Development Power Contract Extensions

 

4.                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, 123 Main Street, White Plains, NY

2)       New York Power Authority, 501 7^th Avenue, 9^th 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, 3^rd 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

Vincent Esposito                  Assistant General Counsel, Legislative & Regulatory Affairs, 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 March 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 46 Power for Jobs (“PFJ”) customers 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 program benefits until June 30, 2009.  Chapter 217 of the Laws of 2009 included provisions extending 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 46 PFJ customers, all of which are meeting their job commitments, listed in Exhibit “A.”  Collectively, these organizations have agreed to retain more than 25,000 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 Authority’s Trustees approve the payment of electricity savings reimbursements to the 46 businesses listed in Exhibit “A.”

Mr. James Pasquale presented the highlights of staff’s recommendations to the Board.  In response to a question from Chairman Kenneth Schoetz, Mr. Pasquale confirmed that an additional estimated $38 million in rebate payments for the Power for Jobs (“PFJ”) program was expected to come before the Board in future months as the PFJ customers submit their bills.  He pointed out that these payments would only be for service provided through midnight on May 15, the expiration date of the program.  He said that Authority staff had been on call all weekend in case the Governor, Senate and Assembly came to some agreement on an extension or retooling of the PFJ program.  The Governor and the Senate have sponsored similar bills for a new economic development power program, while the Assembly has not taken an official position on such a program. 

Authority staff held discussions with all of the State investor-owned utilities (“IOUs”) about keeping the electricity charges paid by the customers after the PFJ expiration at the same level as they paid under PFJ in anticipation of legislation being passed over the weekend.  He said that when legislation is enacted, the Board will have to meet to approve a new program.  Mr. Pasquale read the following statement that Authority President and Chief Executive Officer Richard Kessel issued on Friday:

NYPA is extremely disappointed that the enabling statute for the Power for Jobs and Energy Cost Savings Benefit programs will expire at midnight this Saturday.  At that point, the Power Authority will no longer have the legal authority to continue to provide the benefits of the programs.  Having visited some of the participating businesses, and having had the opportunity to speak directly with many of the people employed by them, I am personally cognizant of the disruption that this lapse will create for our 520 business customers.  Therefore, NYPA is committed to working with these businesses during this difficult time, and remains hopeful that we will be able to make them whole if the appropriate legislation is enacted. 

 

                In response to a question from Judge Eugene Nicandri, Mr. Pasquale said that after midnight on Saturday, the Authority’s PFJ customers would have to pay their local utilities at the going rate for business customers, unless they switched to an energy services company for their electricity needs.  He said that Authority staff would be meeting with representatives of the IOUs today so that the PFJ customer power loads could be scheduled through the New York Independent System Operator.

                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

 

American Cancer Society New York - New York County   Bank of New York New York - New York County   Jacmel Jewelry, Inc. Long Island City - Queens County

Kingsbrook Jewish Medical Center Brooklyn - Kings County   Pepsi Cola Bottling Company College Point - Queens County

 

Long Island Power Authority - Service Territory

 

American Technical Ceramics Huntington Station-Suffolk County   John Hassall, Inc. Westbury - Nassau County   Madelaine Chocolates Rockaway Beach - Queens County

Maloya Laser Inc. Commack - Suffolk County   Silver Lake Cookie Co. Islip - Suffolk County

 

National Grid - Service Territory

 

Albany Molecular Research, Inc. Albany - Albany County   AMRI Rensselaer, Inc. Rensselaer - Rensselaer County   Applied Energy Solutions Caledonia - Livingston County   Bank of New York Oriskany - Oneida County   Bestway Enterprises Cortland - Cortland County   Cascades Tissue Group Waterford - Saratoga County   Cooper Hand Tools Cortland - Cortland County   Corning, Inc. Canton - St. Lawrence County   Dal Tile Corporation Olean - Cattaraugus County Eastman Machine Company Buffalo - Erie County   Edward John Noble Hospital Gouverneur - St. Lawrence County   Finch Pruyn & Company Inc. Glen Falls - Warren County   Ford Motor Company Buffalo - Erie County   Gehring  Tricot Corp. Dolgeville - Herkimer County

Helmont Mills St. Johnsville - Montgomery County   McLane Eastern Baldwinsville - Onondaga County   Met Weld International, LLC Altamont - Albany County   Paul Bunyan Products, Inc. Preble - Cortland County   PCI Paper Conversions, Inc. Syracuse - Onondaga County   Power Pallet Schenectady - Schenectady County   Precious Plate, Inc. Niagara Falls - Niagara County   Queensboro Farm Products, Inc. Canastota - Madison County   Schenectady International, Inc. Schenectady - Schenectady County Snyder Industries, Inc. N. Tonawanda - Niagara County   Syracuse Plastics, Inc. Liverpool - Onondaga County   Syracuse University Syracuse - Onondaga County   Watson Bowman Acme Corp. Amherst - Erie County

 

New York State Electric & Gas

 

Audio Sears Stamford - Delaware County   Corning, Inc. (Costar Plant) Oneonta - Otsego 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   Merritt Machinery, LCC Lockport - Niagara County

 

Rochester Gas & Electric

 

Flower City Printing, Inc. 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 46 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 44,735 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 that the Power Authority extend Power for Jobs contracts and rebates, Energy Cost Savings Benefits awards and contract extensions.