NEWS
Power Authority Approves Contract Extensions for Statewide Lower Cost Power Programs
Contact:
Christine Pritchard
518-322-9143
Michael Saltzman
914-390-8181
August 31, 2010
FOR IMMEDIATE RELEASE
BALDWINSVILLE—New York Power Authority (NYPA) President and Chief Executive Officer Richard M. Kessel today announced that the NYPA Trustees have approved the extension of contracts for all 533 allocations to companies and not-for-profit enterprises throughout New York State benefiting from the Power for Jobs (PFJ) and Energy Cost Savings Benefit (ECSB) programs. Joined by Leo Basciano, Managing Director of Specialized Packaging Group, Inc., of Baldwinsville, Kessel noted that the programs help to protect more than 300,000 jobs statewide, including over 31,000 jobs at 150 companies in Central New York alone.
The extensions follow the signing of legislation in early August by Gov. David A. Paterson for continuation of the two statewide power programs through May 15, 2011 and expedited renewal of benefits. The legislation provides for the benefits to be retroactively effective to June 3, to include the period in which the programs lapsed due to legislative impasse.
“A reformed Power for Jobs program remains vital to rebuilding our economy and creating thousands of new jobs by expanding businesses within and attracting new business opportunities to the State,” Governor Paterson said. “The comprehensive permanent and self-sustaining program that I sought to create—the Energize New York Power Program—would have given businesses the certainty they need for making major capital investments and adding jobs to the state. I will keep fighting for meaningful reform, even though it became necessary to extend the existing temporary programs in order to spare the hundreds of businesses and institutions that would have been hurt by the absence of lower cost power benefits. I applaud the Senate for passing Energize New York with overwhelming bi-partisan support and again call on the Assembly to bring this important legislation to a vote.”
“The benefits of Power For Jobs and Energy Cost Savings Benefit are critical to supporting tens of thousands of jobs across New York State,” Michael J. Townsend, NYPA chairman, said. “With the economy still struggling, it is important to act to protect and extend these benefits until a legislative resolution can be reached for program improvements.”
“Given the circumstances, it was important to the employers receiving benefits under the lower-cost power programs, and their work forces, to extend the current initiatives, as the Legislature agreed to and the Power Authority board has followed through on,” Kessel said. “I want to thank Governor Paterson for the forceful and practical approach that he took throughout this process and for his continued commitment to meaningful reform of the state’s lower-cost power programs.”
“I would like to thank Governor Paterson and Richie Kessel at the New York Power Authority for the Power for Jobs and Energy Cost Savings Benefit Programs,” said Leo Basciano, Managing Director of Specialized Packaging Group Inc. “It is important for Central New York companies to be competitive in a difficult market. The programs help us to remain competitive. In 2007, we had 148 employees. In 2010, we have 237 employees. Programs like Power for Jobs and Energy Cost Savings Benefit are critical to our company’s growth and employment. Thank you again.”
“On behalf of the statewide manufacturing community, I would like to extend my appreciation for the hard work and dedication from Governor Paterson and NYPA this past legislative session on Energize New York,” said Randy Wolken, President of the Manufacturers Association of Central New York (MACNY). “This comprehensive, long term power program bill is an essential statewide economic development tool that will allow New York State’s business community the ability to strengthen and grow. We understand the necessity to pass the short- term bill in the interim, but ultimately agree with the Administration and leadership of the Senate that it is absolutely critical we pass Energize New York as soon as possible.”
The Power Authority arranges for the energy supplies and funding for the PFJ and ECSB programs from the state’s electricity markets. In exchange for receiving benefits under the programs, the program participants commit to retain jobs.
On Aug. 17, the New York State Economic Development Power Allocation Board (EDPAB) recommended extensions of the contracts under the two programs in line with the latest legislation. EDPAB, which was created in 1987, is charged under state law with making recommendations to the NYPA Trustees for allocations and benefits under the programs.
The legislation provided for the expedited resumption of benefits and deferred review of job commitment compliance in order to minimize disruption to program participants from the interval in which the programs were no longer in effect. Power Authority staff will report to EDPAB and the NYPA Trustees in the next few months on job compliance levels, once the PFJ and ECSB programs are fully restored. Staff recommendations will be made on the retention of benefits, in the event of noncompliant participants.
The PFJ program was created in 1997 under state law as a bridge to a more competitive electricity marketplace. It was initially scheduled to continue for only three years, but has been repeatedly extended and amended by the state legislature.
The ECSB program, created in 2005, benefits businesses and institutions participating in three pre-existing NYPA programs: Economic Development Power, High Load Factor Manufacturer, and Municipal Distribution Agency Industrial Power programs.
The PFJ and ECSB programs have resulted in tens of millions of dollar a year in savings for participating employers in every region of the state.
Specialized Packaging Group’s Baldwinsville facility opened on Jan. 2, 1992, as Lawson Mardon Packaging as a Greenfield site. In 1998, it became the Specialized Packaging Group (now a division of PaperWorks Industries, Inc.). SPG enjoys a reputation for being market leaders in quality, service and innovation in North American markets. SPG facilities across North America include both design and production centers, allowing SPG to work with multinational customers to make high-quality packaging to meet their market needs.
About NYPA:
■ The New York Power Authority uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. ■ NYPA is a leader in promoting energy efficiency, new energy technologies and electric transportation initiatives. ■ It is the nation's largest state public power organization, with 17 generating facilities in various parts of New York State and more than 1,400 circuit-miles of transmission lines. ■ Approximately 80 percent of the electricity it produces is clean renewable hydropower. Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the ■For more information, www.nypa.gov.