ECONOMIC DEVELOPMENT POWER ALLOCATION BOARD
December 18, 2012
Clarence D. Rappleyea Building, White Plains, New York – 9:30 a.m.
New York Power Authority Offices:
123 Main Street, 16th Floor, White Plains, NY
30 South Pearl Street – 10th Floor, Albany, NY
Empire State Development Corporation, 95 Perry St., Suite 500, Buffalo, NY
1. Approval of the December 18, 2012 Proposed Meeting Agenda
2. Approval of the Minutes of the Meeting of September 24, 2012
3. Recharge New York Power Program
4. Other Business
5. Next Meeting
A regular meeting of the Economic Development Power Allocation Board was held via videoconference 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 – 10th Floor, Albany, NY
3) Empire State Development Corporation, 95 Perry Street, Suite 500, Buffalo, NY
The following Members of the Board were present:
Samuel Hoyt, Chairman (via audio)
Eugene L. Nicandri, Member
Bernard McGarry, Member
Robert B. Catell, Member
Also in attendance were:
John R. Koelmel Chairman, NYPA
Gil Quiniones President and Chief Executive Officer, NYPA
Judith McCarthy Executive Vice President and General Counsel, NYPA
James F. Pasquale Senior Vice President – Economic Development & Energy Efficiency, NYPA
Michael Saltzman Director, Communications & Media Relations, NYPA
Michael Huvane Vice President Marketing, Marketing & Economic Development, NYPA
Dennis Eccleston Vice President Information Technology/Chief Information Officer – Information
Timothy Muldoon Manager – Business Power Allocations and Compliance, NYPA
Gary Schmid Manager, Network Services, NYPA
Emily Alkiewicz BPAC Analyst II – business Power Allocations and Compliance, NYPA
Lorna Johnson Assistant Secretary, NYPA
Sheila Baughman Senior Secretary, NYPA
Sheri L. Mooney Senior Vice President, Senior Programs Manager – First Niagara Financial Group
Trustee Eugene Nicandri said that with the consent of Chairman Hoyt he would be conducting the meeting since Chairman Hoyt is participating via telephone conference. He welcomed EDPAB members Robert Catell and Bernard McGarry, also Authority Chairman, John Koelmel and President, Gil Quiniones and senior staff to the meeting. He said the meeting has been duly noticed as required by the Open Meetings Law and called the meeting to order pursuant to the EDPAB Bylaws, Article III, Section 2.
1. Adoption of the Proposed Meeting Agenda
The agenda for the December 18, 2012 meeting was unanimously adopted.
2. Adoption of the Minutes
The Minutes of the Regular Meeting of September 24, 2012 were unanimously adopted.
3. Recharge New York Power Program
The Economic Development Power Allocation Board (“EDPAB” or “Board”) is requested to:
On April 14, 2011, Governor Andrew M. Cuomo signed into law the RNY Power Program as part of Chapter 60 (Part CC) of the Laws of 2011 (“Chapter 60”). The program makes available 910 MW of “RNY Power,” 50% of which will be provided by the Authority’s hydropower resources and 50% of which will be procured by the Authority from other sources. RNY Power contracts can be for a term of up to seven years in exchange for job and capital investment commitments.
The RNY Power is available to businesses and not-for-profit corporations for job retention and business expansion and attraction purposes. Specifically, Chapter 60 provides that at least 350 MW of RNY Power shall be dedicated to facilities in the service territories served by the New York State Electric and Gas, National Grid and Rochester Gas and Electric utility companies; at least 200 MW of RNY Power shall be dedicated to the purpose of attracting new businesses and encouraging expansion of existing businesses statewide; and up to 100 MW shall be dedicated for eligible not-for-profit corporations and eligible small businesses statewide.
Under the statute, “eligible applicant” is defined to mean an eligible business, eligible small business, or eligible not-for-profit corporation, however, an eligible applicant shall not include retail businesses as defined by EDPAB, including, without limitation, sports venues, gaming or entertainment-related establishments or places of overnight accommodations. At its meeting on April 24, 2012, EDPAB defined a retail business as a business that is primarily used in making retail sales of goods or services to customers who personally visit such facilities to obtain goods or services, consistent with the rules previously promulgated by EDPAB for implementation of the Authority’s Economic Development Power program.
RNY Power allocation awards are comprised of 50% hydropower (“RNY Hydropower”) and 50% of other power procured by the Authority through a competitive procurement process, authority sources (other than the Niagara and Saint Lawrence projects), or through an alternate method (collectively, “RNY Market Power”).
Prior to entering into a contract with an eligible applicant for the sale of RNY Power, and prior to the provision of electric service relating to a RNY Power allocation, the Authority must offer each eligible applicant that has received an award of RNY Power the option to decline to purchase the RNY Market Power component of such award. If the applicant declines to purchase the RNY Market Power component from the Authority, the Authority has no responsibility for supplying RNY Market Power component of the award.
The Authority worked cooperatively with the Department of Public Service to recommend to the NYS Public Service Commission (“PSC”) reduced rates for the delivery of RNY Power by utility corporations. Pursuant to Chapter 60 and PSC order, State utilities are now required to deliver RNY Power pursuant to discounted delivery rates. The discount derives from exempting RNY Power from the Renewable Portfolio Surcharge, the Systems Benefits Charge and the Energy Efficiency Portfolio Standard Surcharge. The delivery discount will apply to an eligible applicant’s total RNY Power allocation even if the applicant decides to purchase the RNY Market Power component of its allocation from a non-Authority source.
The basic application for the RNY Power Program was approved by EDPAB at its meeting on September 26, 2011. Applications for RNY Power are subject to a competitive evaluation process and are evaluated based on the criteria set forth in the statutes providing for the RNY Power Program (the “RNY Statutes”).
In an effort to effectively market the RNY Power Program, advertisements were placed in major newspapers and business publications statewide, Web site postings were issued, mass emails were distributed, and regional meetings were hosted by the Authority throughout the State. In addition, the RNY Power Program was promoted with assistance from State and local entities, including the Regional Economic Development Councils (“REDCs”), Empire State Development (“ESD”) and local and regional economic development organizations within the State such as the Manufacturers Association of Central New York. Further, a RNY Call Center was established to assist prospective applicants and to disseminate information regarding the RNY Power Program. The RNY Call Center remains in operation. Finally, a targeted postal mailing to business customers utilizing a list of ten thousand businesses in the State was made to foster interest in the Program. In addition, the Authority is currently working with ESD to study ways to attract business to New York and to promote the RNY Power Program and the Authority’s other low-cost power programs.
As part of Governor Andrew M. Cuomo’s New York “Open for Business” initiative, applications for all statewide economic development programs, including the RNY Power Program, have been incorporated into a single on-line Consolidated Funding Application (“CFA”) marking a fundamental shift in how State economic development resources are marketed and allocated. Beginning in September 2011, the CFA was available to applicants. The CFA continues to serve as an efficient and effective tool to streamline and expedite the State’s efforts to generate sustainable economic growth and employment opportunities. All applications that are considered for an RNY Power allocation are submitted through the CFA process.
To support the Governor’s plans to
improve New York’s business climate and stimulate economic growth, ten REDCs
were created. Through a
performance-based, community-driven approach, each REDC has designed a
strategic economic development model for its area and use the CFA as the
primary support mechanism to work with businesses to advance projects that
demonstrate potential for job creation and economic growth.
The Authority’s Power for Jobs (“PFJ”) and Energy Cost Savings Benefit (“ECSB”) programs expired on June 30, 2012. Businesses that participated in these programs are required to apply for RNY Power in order to be considered for a RNY Power allocation. Because the RNY Power Program is a new economic development program unrelated to the earlier PFJ and ECSB programs, all RNY Power applications, even those of former PFJ and ECSB participants, are considered on their merits under the criteria established by the RNY Power Program.
PFJ and ECSB customers of record as of June 30, 2012 who submit applications but do not receive RNY Power are considered for a transitional electricity discount (“TED”) provided for in Chapter 60. Under this enactment law, the Authority is authorized, as deemed feasible and advisable by the Trustees, to provide TEDs as recommended by EDPAB. The amount of the TED authorized by Chapter 60 for the period of July 1, 2012 through June 30, 2014 is an amount equivalent to 66% of the unit (per kilowatt-hour) value of the savings received by the applicant under the PFJ or ECSB program during the 12 months ending on December 31, 2010. The amount of the TED authorized for the period July 1, 2014 through June 30, 2016 is equivalent to 33% of the unit (per kilowatt-hour) value of the savings received by the applicant under the PFJ or ECSB program during the 12 months ending on December 31, 2010. Of the applications received as of January 27, 2012, 410 PFJ and ECSB customers have applied for an RNY Power allocation.
Over 1,000 RNY Power Program applications have been submitted via the CFA process, requesting more than 2,100 MW of RNY Power – more than twice the total amount available under the RNY Power Program. The applications were evaluated applying the following criteria as set forth in the RNY Statutes:
“(i) the significance of the cost of electricity to the applicant's overall cost of doing business, and the impact that a recharge New York power allocation will have on the applicant's operating costs;
extent to which a recharge
extent to which a recharge
(iv) the type and cost of buildings, equipment and facilities to be constructed, enlarged or installed if the applicant were to receive an allocation;
(v) the applicant's payroll, salaries, benefits and number of jobs at the facility for which a recharge New York power allocation is requested;
(vi) the number of jobs that will be created or retained within the state in relation to the requested recharge New York power allocation, and the extent to which the applicant will agree to commit to creating or retaining such jobs as a condition to receiving a recharge New York power allocation;
(vii) whether the applicant, due to the cost of electricity, is at risk of closing or curtailing facilities or operations in the state, relocating facilities or operations out of the state, or losing a significant number of jobs in the state, in the absence of a recharge New York power allocation;
significance of the applicant's facility that would receive the recharge
(ix) the extent to which the applicant has invested in energy efficiency measures, will agree to participate in or perform energy audits of its facilities, will agree to participate in energy efficiency programs of the authority, or will commit to implement or otherwise make tangible investments in energy efficiency measures as a condition to receiving a recharge New York power allocation;
(x) whether the applicant receives a hydroelectric power allocation or benefits supported by the sale of hydroelectric power under another program administered in whole or in part by the authority;
extent to which a recharge
(xii) in addition to the foregoing criteria, in the case of a not-for-profit corporation, whether the applicant provides critical services or substantial benefits to the local community in which the facility for which the allocation is requested is located.”
Based on the evaluation of these criteria, the applications were scored and ranked. Evaluations also considered scores provided by the relevant REDC under the third and eighth criteria.
In arriving at recommendations for RNY Power for EDPAB’s consideration, staff, among other things, attempted to maximize the economic benefits of low-cost NYPA hydropower, the critical state asset at the core of the RNY Power Program, while attempting to assure that each recipient receives a meaningful RNY Power allocation.
Business applicants with relatively high scores were recommended for allocations of retention RNY Power of 50% of the requested amount or average historic demand, whichever was lower. These allocations were capped at 10 MW for any recommended allocation. Not-for-profit corporation applicants that scored relatively high were recommended for allocations of 33% of the requested amount or average historic demand, whichever was lower. These allocations were capped at 5 MW. Applicants currently receiving hydropower allocations under other Authority power programs were recommended for allocations of RNY Power of 25% of the requested amount, subject to the caps as stated above.
Based on this evaluation process, EDPAB, at its April and June 2012 meetings, recommended 678 RNY Power allocations totaling 686.8 MW of power which were approved by the Trustees. The allocations were made to 423 businesses (591 MW), 179 small businesses (21 MW), and 76 not-for-profit corporations (74.8 MW). In addition, at the September EDBAP and Trustee meetings, 29.3 MW of expansion-based RNY Power was awarded to 38 companies. Five of these companies planning to expand their business were new to the RNY Power Program, while 33 had previously received a retention-based award for their existing operations. These expansion allocations were made from the 200 MW block of RNY Power dedicated by statute for for-profit businesses that propose to expand existing businesses or create new business in the State.
In the course of the application/contract proposal process a number of award recipients have formally declined all or part of their award for various reasons. As such, the amount of declined RNY Power, listed in Exhibit “H,” is available to allocate to the eligible applicants currently under review or to future RNY Power Program applicants. Accounting for the declined RNY Power results in the following current program power status prior to the allocations currently proposed as part of this item: (1) allocations totaling 667.5 MW have been made out of 710 MW available for business “retention” purposes, leaving 42.5 MW available to allocate; (2) allocations totaling 29.3 MW were made out of 200 MW available for business “expansion” purposes, leaving 170.7 MW available to allocate for such purposes; (3) 72.6 MW and 19.9 MW have been allocated to not-for-profit corporations and small businesses, respectively, leaving 7.5 MW available to allocate to such entities.
The Board is asked to address applications submitted for RNY Power retention allocations via the CFA process in 2012 between January 28 and July 16, 2012 (“Round 2”). Nearly all applications submitted prior to January 28, 2012, have been addressed with the exception of applicants located within municipal electric utility (“MEU”) and rural electric cooperative (“REC”) service areas. The Board is also being asked to address these applicants today.
Consistent with the evaluation process used for the April and June retention recommendations as described above, EDPAB is asked to recommend 33 RNY Power retention allocations to applicants within the Round 2 and MEU and REC groups. The 33 businesses or not-for-profit corporations listed in Exhibit “A” have stated on their applications a willingness to create or retain approximately 6,539 jobs in New York State. Additionally, these applicants will be committing to capital investments totaling $443 million over five years in exchange for the proposed RNY Power allocations. Of these recommendations, 16 businesses are recommended for 22.86 MW, 15 small businesses are recommended for 1.26 MW, and two not-for-profit corporations are recommended for 0.06 MW.
Four of the RNY Power retention allocations the Board is asked to recommend are to applicants located within a MEU or REC service area. NYPA does not have delivery arrangements in place for applicants within MEU or REC service areas, and at this stage it is unclear what obstacles the Authority may encounter in attempting to arrange for delivery of RNY Power allocations to applicants in these areas on terms that are satisfactory to the Authority. Therefore, staff is requesting that RNY Power allocations EDPAB recommends to these applicants be contingent upon the Authority obtaining agreements with the affected MEUs and RECs as well as other necessary third-parties that address delivery, data collection, billing and other relevant matters, to the Authority’s satisfaction.
The RNY Power allocations identified in Exhibit “A” are each recommended for a term of seven years. Consistent with legislation, each allocation recommended by EDPAB would qualify an applicant to enter into a contract with the Authority pursuant to the terms and conditions of the recommendation by EDPAB and on such other terms as the Authority determines to be appropriate. The Authority’s standard RNY Power contract template will have provisions addressing such things as effective periodic audits of the recipient of an allocation for the purpose of determining contract and program compliance, and for the partial or complete withdrawal of an allocation if the recipient fails to maintain mutually agreed-upon commitments, relating to, among other things, employment levels, power utilization, capital investment and/or energy efficiency measures. In addition, there shall be a requirement that a recipient of an allocation make its facilities available at reasonable times and intervals for energy audits and related assessments that the Authority desires to perform. At their March 27, 2012 meeting, the Trustees approved the form and substance of a retail contract template that incorporates these and other standard requirements.
The Board is asked to address applications from Round 2 of the CFA process for the 200 MW block of RNY Power dedicated by statute for for-profit businesses that propose to expand existing businesses or create new business in the State.
Of the applications received through July 16, 2012, staff determined that 18 applications were sufficiently complete for review and that each such application requested RNY Power for a proposed expansion of the applicant’s business. These applications sought a RNY Power allocation for either (i) expansion only, in the case of a new business or facility, or (ii) expansion and retention, in the case of an existing business.
As with the evaluation process used for the retention recommendations described above, applications for the expansion-based RNY Power were scored based on the statutory criteria, albeit with a focus on information regarding each applicant’s specific project to expand or create their new facility or business (e.g., the expansion project’s cost, associated job creation, and new electric load due to the expansion).
Consistent with the goals of the expansion-based RNY Power set-aside for “attracting new business to the state, creating new businesses within the state, or encouraging the expansion of existing businesses within the state,” EDPAB is being asked to recommend RNY Power allocations to those applicants that have committed to (i) invest capital thereby creating new electrical load, and (ii) create new jobs. This focus on capital investment and job creation aligns with the RNY Statutes’ intention to maximize the economic development prospects for the State.
Accordingly, EDPAB is requested to recommend to the Trustees that they approve 17 allocations listed on Exhibit “B” for an expansion-based allocation up to the amounts indicated. These allocations are made from available power within the 200 MW block of RNY Power set aside for business expansion and attraction. These businesses have stated a willingness to create a total of 645 new jobs in New York State and to commit to capital investments totaling $238 million in exchange for the recommended RNY Power allocations. The expansion projects would additionally support the businesses’ existing employment of over 990 people. The total amount of recommended RNY Power is 9.77 MW, with 9 businesses recommended for 8.25 MW and 8 small businesses recommended for 1.52 MW.
Ten of these businesses are also recommended for retention allocations, having submitted an application that met the requirements for evaluating both retention and expansion awards by committing to distinct jobs and capital investment for each type of RNY Power. Applicants recommended for both retention and expansion allocations are indicated in the corresponding Exhibits “A” and “B.” One of businesses being recommended was awarded an allocation for retention at a prior Board meeting. Additionally, staff requests that EDPAB not recommend an expansion-related allocation to one applicant whose expansion project would not create any new jobs, as discussed below.
Staff is asking the Board to recommend the RNY Power allocations identified on Exhibit “B” for a period of up to seven years. Consistent with the RNY Statutes, each allocation recommended by EDPAB would qualify an applicant to enter into a contract with the Authority for the amount of the allocation pursuant to the terms and conditions of the recommendation by EDPAB, and on such other terms as the Authority determines to be appropriate.
The respective amounts of the expansion-related allocations listed in Exhibit “B” are largely intended to provide approximately 70% of the individual expansion projects’ estimated new electric load. Because these projects have estimated new electric load amounts, and to ensure that an applicant’s overestimation of the amount needed would not cause that applicant to receive a higher proportion of RNY Power to new load, the allocations in Exhibit “B” are recommended based on an “up to” amount basis. Each of these applicants would be required to, among other commitments, add the new electric load as stated in its application, and would be allowed to use up to the amount of their RNY Power allocation in the same proportion of the RNY Power allocation to requested load as stated in Exhibit “B.”
The contracts for these allocations would also contain the standard provisions previously summarized in the last paragraph of Section 1 above.
The three applications listed on Exhibit “C,” which were previously recommended for a RNY Power allocation at EDPAB’s April, June or September 2012 meetings, require a modification based on evaluation data discrepancies discovered after the September meeting. The discrepancies involve the applicant’s commitment relating to jobs or capital investment as noted in Exhibit “C.” Because each application was evaluated and scored based on the applicable criteria, these applications had to be re-evaluated using corrected information. In all three cases, applicants still scored high enough to warrant a recommendation for an allocation. Accordingly, staff is requesting that the Board recommend modified allocations for these applications as detailed in Exhibit “C.”
In the process of reviewing the current round of applications for RNY Power, there were three applications by businesses that fit within the definition of a retail business as established by EDPAB. Additionally, three applications by not-for-profit corporations have been found to not meet the definition of eligibility for not-for-profit corporations established in the RNY Statutes, specifically defined as a corporation defined in subdivision five of paragraph (a) of section one hundred two of New York’s Not-for-Profit Corporation Law. Staff recommends that the Board determine these applicants, listed on Exhibit “D,” to be ineligible for an RNY Power allocation for this reason.
Upon review of the 38 applications listed on Exhibit “E,” staff is requesting that EDPAB not recommend or consider the applications for an allocation of RNY Power. The applications that are not recommended for an RNY Power allocation do not score high enough in the evaluation, have requested a minimal amount of RNY Power which fell below the threshold established internally by the Authority for allocations, or in the case of an expansion-related request for RNY Power, do not include a commitment to increase employment.
Other applications are not being considered for an allocation of RNY Power for various reasons, including that (i) the application was withdrawn, (ii) the application was not sufficiently complete to permit evaluation and/or applicants were unresponsive to requests from staff for more information which staff believed it needed to adequately evaluate the applications, (iii) the applicant does not have a demand meter to effectuate delivery of RNY Power, and (iv) the applicant was a public entity such as a municipality or public benefit corporation. In the case of expansion-related requests for RNY Power, certain applicants have proposed projects that are too premature to enable those applicants to make commitments necessary for an allocation of RNY Power, and certain not-for-profit applicants have requested RNY Power for an expansion project for which they are ineligible to receive RNY Power according to the RNY Statutes. Accordingly, EDPAB is requested to determine that these applications are not recommended or considered for an allocation of RNY Power.
As noted above, former PFJ and ECSB benefit recipients who applied for RNY Power but were not awarded an allocation may be considered for a TED under Chapter 60. At its June and September 2012 meetings, EDPAB recommended and the Trustees approved TEDs for 100 applicants.
Staff has identified three additional applicants, listed in Exhibit “F,” to be considered for a TED. Accordingly, EDPAB is requested to recommend to the Trustees that these three applicants be provided with a TED. In accordance with Chapter 60, the Trustees are asked to determine and advise EDPAB whether sufficient funds are available for the funding of such TEDs through June 30, 2016.
EDPAB is requested to approve and recommend in accordance with the RNY Statutes that the Trustees approve transfers of RNY Power allocations for the businesses listed on Exhibit “G.” Two RNY Power recipients have requested transfers of their RNY Power allocations to new or different business entities to accommodate a business acquisition and corporate restructuring/name change. A third RNY Power recipient has requested a transfer of RNY Power allocation to a new facility in accordance with the timeline laid out in its CFA. In all three cases, the commitments to jobs and capital investment made in consideration of the RNY Power allocation awards remain the same as originally approved. The Board has previously recommended transfers of RNY Power and other Authority power products like Economic Development Power in similar circumstances.
For the reasons stated above, it is requested that Economic Development Power Allocation Board: (1) recommend that the Trustees approve the allocations of Recharge New York (“RNY”) Power for retention purposes to the businesses listed in Exhibit “A” as indicated therein, with allocations to applicants located in the municipal electric utility (“MEU”) and rural electric cooperative (“REC”) service areas contingent upon the Authority obtaining agreements with the affected MEUs and RECs as well as other necessary third-parties, that address delivery, data collection, billing and other relevant matters, to the Authority’s satisfaction; (2) recommend that the Trustees approve allocations of RNY Power for expansion purposes to the businesses listed in Exhibit “B” as indicated therein; (3) recommend that the Trustees approve modifications of existing RNY Power allocations to the businesses identified in Exhibit “C” as indicated therein; (4) determine that the businesses identified in Exhibit “D” are not eligible to receive a RNY Power allocation for the reasons indicated therein and discussed above; (5) determine that the businesses listed in Exhibit “E” are not recommended or not considered for a RNY Power allocation; (6) recommend to the Trustees that the businesses listed in Exhibit “F” receive a transitional electricity discount; and (6) approve and recommend that the Trustees authorize the transfer of the RNY Power allocations identified in Exhibit “G.”
Mr. James Pasquale presented an overview of staff’s recommendation to the Board. He said that staff would be recommending that the Board award new allocations of retention and expansion power under the Recharge New York Program for businesses and organizations that submitted applications in “Round 2” of the Governor's Consolidated Funding Application (“CFA”) process. He said the applications were reviewed and evaluated against each other competitively and not against the applications that were submitted in “Round 1” of the CFA; the applications were also reviewed in conjunction with Empire State Development (“ESD”) and the Regional Economic Development Councils (REDCs”). Further, all of the applicants were contacted to verify the information submitted in their applications. Mr. Pasquale continued that the protocols established for “Round 2” is the same as “Round 1” of the process, i.e., allocations for retention power were capped at 10 MW and limited to 50% of usage; expansion power were capped at 10 MW and limited to 70 % of usage; and not-for-profit organizations were capped at 5 MW and limited to 33% of usage. Mr. Pasquale then asked Mr. Michael Huvane to present staff's recommendation to the Board.
Mr. Huvane presented highlights of staff’s recommendations to the Board. In response to a question from Trustee Nicandri, Mr. Pasquale said all of the applications were scored against the criteria as set out in the RNY Legislation. In response to a question from Mr. Catell, Mr. Huvane said that in the case of applications considered “unresponsive,” for the most part, those applicants were interested in other state programs such as NYSERDA but made an incorrect selection in filling out the CFA and they did not respond to staff's attempts to clarify their applications. In response to a question from Chairman Hoyt, Mr. Huvane said Chocolate Moose Campground was considered “ineligible” because it is considered a retail business; therefore, it did not meet the criteria for an award.
By motion made and seconded the Board approved staff’s recommendations under the Recharge New York Power Program.
The following resolution was unanimously adopted by members of the Board present.
RESOLVED, That the Economic Development Power Allocation Board hereby recommends that the New York Power Authority’s Trustees (1) approve the allocations of Recharge New York (“RNY) Power for retention purposes to the businesses listed in Exhibit “A” as indicated therein, with allocations to applicants located in the municipal electric utility (“MEU”) and rural electric cooperative (“REC”) service areas contingent upon the Authority obtaining agreements with the affected MEUs and RECs as well as other necessary third-parties, that address delivery, data collection, billing and other relevant matters, to the Authority’s satisfaction; (2) approve allocations of RNY Power for expansion purposes to the businesses listed in Exhibit “B”; (3) approve modifications of existing RNY Power allocations to the businesses identified in Exhibit “C”; (4) determine that the businesses identified in Exhibit “D” are not eligible to receive a RNY Power allocation for the reasons indicated therein and discussed above; (5) determine that the businesses listed in Exhibit “E” are not recommended or not considered for a RNY Power allocation; (6) that the businesses listed in Exhibit “F” receive a transitional electricity discount; and (7) approve and authorize the transfer of the RNY Power allocations identified in Exhibit “G.”
Requests for Transfers of Recharge New York Power Allocations
Agro-Farma, Inc. (“Agro-Farma”) with facilities located in Norwich, Chenango County was recommended for and awarded a 6,000 kW RNY Power allocation the Economic Development Power Allocation Board (“EDPAB”) and New York Power Authority (“Trustees”), at meetings of these boards held on April 24, 2012. Due to a corporate restructuring, Agro-Farma, Inc. is now named Chobani, Inc. The company has requested that the allocation be transferred to a new corporate entity named “Chobani, Inc.” and has indicated that the new entity will commit to honor all of the terms and conditions of the company’s existing RNY Power contract including commitments related to jobs and capital investment.
MeadWestVaco (“Mead”), located in Sidney, Delaware County, was recommended for and awarded a 1,150 kilowatt (“kW”) Recharge New York (“RNY”) Power allocation by EDPAB and the Trustees at meetings of these boards held on June 25, 2012 and June 26, 2012 respectively. Prior to the board meeting, but after they applied for RNY power Mead was purchased by ACCO Brands; and subsequently requested transfer of their allocation to their new company Mead Products LLC. The Authority has not yet executed a contract with Mead Products LLC. The Authority has been advised that the transferee will commit to honor all of the terms and conditions that pertain to the RNY Power allocation including commitments related to jobs and capital investment.
Silarx Pharmaceuticals Inc. (“Silarx”) with facilities located in Spring Valley, Rockland County and Carmel, Putnam County was recommended for and awarded a 180 kW RNY Power allocation by EDPAB and the Trustees at meetings of these boards held on June 25, 2012 and June 26, 2012 respectively. The company is moving the bulk of its operations from the Spring Valley location to the Carmel location in accordance with its Consolidated Funding Application under which the allocation was awarded. The company requests that the Trustees transfer the allocation, including its employment and capital investment commitments, to the Carmel location. Silarx will commit to honor all of the terms and conditions of the company’s existing RNY Power contract including commitments related to jobs and capital investment.
4. Other Business
No other business to report.
5. Next Meeting
The next meeting of the Board will be held via videoconference on Tuesday, January 23, 2013 at 10:00 a.m.