MINUTES OF THE REGULAR MEETING
OF THE
POWER AUTHORITY OF THE STATE OF NEW YORK

 

Table of Contents

 

                Subject                                                                                                                                 

    1.        Approval of the October 25, 2011 Proposed Meeting Agenda                                                             

    2.        Consent Agenda:                                                                                                                      

                    a.    Minutes of the Regular Meeting held on September 27, 2011                                

                    b.   Authorization to Conduct Competitive Solicitation for Environmental Attributes on Behalf of the Authority
                          and for Resale to NYC Governmental Customers, Exhibit - “2b-A”; “2b-B”
                          Resolution

                Discussion Agenda:                                                                                                                  

    3.          Reports from:

                   a.    Acting President and Chief Executive Officer, Exhibit - “3a-A”
                          Resolution         

                    b.   Acting Chief Operating Officer, Exhibit - “3b-A”
                          Resolution                 

                    c.   Acting Chief Financial Officer, Exhibit - “3c-A”
                          Resolution

  

   4.          Preservation Power Contracts with Newton Falls Fine Paper Company, LLC and Upstate Niagara Cooperative, Inc. – 
                Transmittal to the Governor, Exhibit - “4-A”; “4-B”; “4-C”; “4-C-1”; “4-C-2”

                Resolution

   5.          Recharge New York Production Rate Methodology and Indicative Rates, Exhibit - “5-A”; “5-B”
                Resolution
 

   6.          New York Power Authority Other Post-Employment Benefits Trust Fund:  Funding Plan, Amendments to the Investment Policy Statement and Selection of
                New Investment Managers, Exhibit - “6-A”; “6-B”
                Resolution
 

   7.         Proposed Schedule of Trustees’ Meetings in 2012
               Resolution
 

   8.         Employee Recognition – B-G Storm Event                                                                        

   9.        Motion to Conduct an Executive Session                                                                           

10.         Motion to Resume Meeting in Open Session

11.         Next Meeting

                                                                                                                          

            Closing                                                                                                                                                            

               

                                                                                                                                                                            


                Minutes of the Regular Meeting of the Power Authority of the State of New York held via video conference at the following participating locations at approximately 11:00 a.m.

                1)    New York Power Authority, 123 Main Street, White Plains, NY

                2)    New York Power Authority, 501 Seventh Avenue,  New York, NY

                The Members of the Board present were:

                                Michael J. Townsend, Chairman
                                Jonathan F. Foster, Vice Chairman
                                D. Patrick Curley, Trustee
                                John S. Dyson, Trustee
                                R. Wayne LeChase, Trustee
                                Eugene L. Nicandri, Trustee
                                Mark O’Luck, Trustee

----------------------------------------------------------------------------------------------------------------------------------------------------
Gil C. Quiniones                                   Acting President and Chief Executive Officer
Judith C. McCarthy                              Acting General Counsel
Edward Welz                                       Acting Chief Operating Officer / Executive Vice President and Chief Engineer – Power Supply
Donald Russak                                     Acting Chief Financial Officer
Thomas Antenucci                                Senior Vice President – Power Supply Support Services
Steve DeCarlo                                      Senior Vice President – Transmission
Thomas DeJesu                                     Senior Vice President – Public, Governmental and Regulatory Affairs
Paul Finnegan                                        Senior Vice President – Public, Governmental and Regulatory Affairs
James Pasquale                                     Senior Vice President – Marketing and Economic Development
Joan Tursi                                             Senior Vice President – Corporate Support Services
Paul Belnick                                          Vice President – Energy Services – Energy Services and Technology
Thomas Davis                                       Vice President – Financial Planning and Budgets
Dennis Eccleston                                   Vice President – Information Technology/Chief Information Officer
Michael Huvane                                    Vice President – Marketing – Business and Municipal Marketing
John Kahabka                                       Vice President – Environmental, Health and Safety
Joseph Leary                                         Vice President – Community and Government Relations
Lesly Pardo                                           Vice President – Internal Audit
Scott Scholten                                        Vice President and Chief Risk Officer – Energy Risk Assessment and Control
Karen Delince                                        Corporate Secretary
Brian McElroy                                        Treasurer
Jill Anderson                                           Director – Business Integration
John Brennan                                          Director – Strategy and Governance
Robert Knowlton                                    Director – Civil/Structural Engineering
Mike Lupo                                             Director – Marketing Analysis and Administration
Michael Saltzman                                    Director – Media Relations
Lynn Hait                                                Regional Manager Central NY – Site Administration, B-G
Gary Schmid                                           Manager – Network Services Infrastructure
Kevin O’Keeffe                                      Manager – Video Production Services – Media Relations
Trish Hennessy                                       Photographer – Video and Photographic Services
Michael Schneider                                  Contractor – Media Relations
Lorna M. Johnson                                  Assistant Corporate Secretary
Sheila Baughman                                    Senior Secretary – Corporate Secretary’s Office
Dominick Daniello                                  Desktop Support Analyst IV
Egle Travis                                             Pricing and Power Contract Analyst II – Marketing Analysis and Administration
Brian Saez                                             Superintendent, Operations/MRM – Control Room Operations, B-G
Chris Brown                                          Supervisor – Mechanical Maintenance, B-G
Steven Alberti                                        Operations Shift Supervisor – Control Room Operations, B-G
Ty Hinkley                                             Operations Shift Supervisor – Control Room Operations, B-G
David Weiman                                       Senior Civil Engineer I – Control Room Operations, B-G
Mikey Wade                                         Intern
 

         Chairman Townsend presided over the meeting.  Corporate Secretary Delince kept the Minutes.

    Introduction
                Chairman Michael Townsend welcomed the Trustees and staff to the meeting.

    1.         Approval of the October 25, 2011 Meeting Agenda

                On motion made and seconded the Agenda for the Meeting was approved.
 

    2.            Consent Agenda

               On motion made and seconded, the Consent Agenda was approved.

               a.            Approval of the Minutes

               The Minutes of the Regular Meeting held on September 27, 2011 were unanimously adopted.

                b.        Authorization to Conduct Competitive Solicitation for Environmental Attributes on Behalf of the Authority
                           and for Resale to NYC Governmental Customers

                The Acting President and Chief Executive Officer submitted the following report:

    SUMMARY

                “The Trustees are requested to approve the issuance of a Competitive Solicitation for the purchase of environmental attributes to serve the renewable energy requirements
     of the Authority and of certain of the Authority’s New York City Governmental Customers.  Environmental attributes are the megawatt-hours (‘MWhs’) associated with renewable
    energy generation.  Renewable energy is energy that is capable of being continuously replenished by natural or other means, such as solar, wind, geothermal, biomass, landfill gas and
    tidal generation technologies.  Environmental attributes include any emissions or pollutants avoided by the generation of renewable energy, such as carbon dioxide (CO2), methane (CH4),
    or any other greenhouse gases (GHGs).

                “Under the Competitive Solicitation, the Authority would purchase the environmental attributes in the Authority’s name from the supplier. The intent is for the Authority to retain
     some of these environmental attributes for its own use and to resell the remainder to Roosevelt Island Operating Corporation and Battery Park City Authority, as discussed below.

    BACKGROUND

                “Under the 2005 Long-Term Agreements governing the supply of electricity, the Authority serves the energy and energy-related needs of its New York City Governmental
   Customers (‘Customers’).  Some of these Customers are subject to the requirements of Executive Order 111 (‘Green and Clean State Buildings and Vehicles’) which directs state
   agencies to be more energy-efficient and environmentally aware.  Other Customers are interested in purchasing renewable energy to support their own environmental policies and
   sustainability objectives.  The Authority purchases renewable energy to fulfill its Executive Order 111 requirements and maintain the LEED (Leadership in Energy and Environmental Design)
   status of its Rappleyea headquarters building in White Plains.

                “The possibility that Customers would purchase renewable energy and/or renewable attributes from the Authority was contemplated in the Long-Term Agreements which provides
   that the cost of such products will be borne directly by the Customer through an appropriate bill surcharge.  The Authority has been purchasing environmental attributes for these Customers
   on an ‘as requested’ basis.  Such purchases have been made through a series of short-term transactions, in combination with a long-term purchase of renewable attributes from Vento I,
   LLC (assignee of Horizon Wind Energy LLC) and Iberdrola Renewables, Inc. (formerly PPM Energy, Inc).

    DISCUSSION

                “The Authority has been asked to procure supplies of environmental attributes by two Customers, Roosevelt Island Operating Corporation and the Battery Park City Authority
  (collectively, ‘RFP Customers’), in various amounts, commencing in 2011 and potentially continuing to as far as 2020.  The Authority is also in need of additional supplies of environmental
   attributes for   its own account. The total volume of environmental attributes to be purchased over this 2011 to 2020 timeframe corresponds to 21,643 MWhs of renewable energy generation.
  Due to the potential length of term, Trustee approval is required before a solicitation may be issued to fulfill these needs as required by the procedure adopted July 26, 2011 entitled 
  ‘Power Resource Planning and Acquisition Department Procedure: Competitive Solicitations for Power Supply Products.

                “A draft of the proposed Competitive Solicitation for these supplies is attached hereto, (Exhibit ‘2b-A’).  Also attached is a brochure that staff has distributed to Customers detailing
    the Authority’s offer to procure Attributes on their behalf and detailing the process for them to follow, (Exhibit ‘2b-B’).


    FISCAL INFORMATION

                “The full cost of any purchases resulting from this solicitation will be paid for by the RFP Customers.  While the price or prices of the environmental attributes to be purchased is
    unknown, staff estimates that, based on current market data and outlook, the total outlay over the term of these purchases could range from $200,000 to $325,000.  If the recommended
    term of the contract exceeds 48 months, the Trustees will be asked to approve the purchase after the bids resulting from the solicitation are received and evaluated, and a recommendation
    for award is made.

    RECOMMENDATION

                “The Director, Supply Acquisition and Renewable Energy recommends that the Trustees authorize staff to issue a Competitive Solicitation for the purchase of environmental
    attributes on behalf of the New York Power Authority, the Roosevelt Island Operating Corporation and the Battery Park City Authority, to be delivered in varying amounts over the period
    2011 to 2020.

                “For the reasons stated, I recommend the approval of the above-requested action by adoption of a resolution in the form of the attached draft resolution.”

                The following resolution, as submitted by the Acting President and Chief Executive Officer, was unanimously adopted.

                                                WHEREAS, pursuant to the request of two of its New York City Governmental Customers (collectively, “RFP Customers”), and
                                as contemplated in the 2005 Long-Term Agreements, the Authority may purchase environmental attributes to serve the renewable energy
                                requirements of such RFP Customers; and

                                                WHEREAS, as required by Authority policy, any proposed solicitation to purchase environmental attributes over a length of time
                                 exceeding four years requires prior Trustee approval; and

                                                WHEREAS, as the procurement proposed by the RFP Customers and required by the Authority for its own use would ask for
                                 environmental attributes for a period longer than four years, Trustee approval is needed before staff may issue the Competitive Solicitation.

                                                  NOW, THEREFORE, BE IT RESOLVED, That the Senior Vice President, Energy Resource Management, or his designee, is hereby
                                 authorized on behalf of the Authority to issue a Competitive Solicitation for the purchase of environmental attributes to meet the needs of the
                                Authority and two of its New York City Governmental Customers as described in the foregoing report of the Acting President and
                                Chief Executive Officer; and be it further

                                                  RESOLVED, That the Chairman, the Vice Chairman, the Acting President and Chief Executive Officer, the Acting Executive Vice President
                                and Chief Financial Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all
                                things and take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution,
                                subject to the approval of the form thereof by the Acting General Counsel.


    Discussion Agenda

    3.            a.             Report of the Acting President and Chief Executive Officer

                   Acting President and Chief Executive Officer, Mr. Gil Quiniones, discussed the Authority’s performance measures in relation to its Business Plan and
    highlighted the key initiatives undertaken in October  – Recharge New York; proposed hydropower rate adjustment; and participation in the Annual Meeting of
    Multiple Intervenors in Buffalo, New York.

                    Corporate Performance Measures

                Acting President and Chief Executive Officer Quiniones said that staff had developed a matrix which outlined specific, measurable goals to assess the
    Authority’s performance.  He reported that in terms of operations the Authority is doing well in its generation and transmission reliability; the O&M budget is
    meeting its targeted goals; by the end of the year, improvements are expected in compliance; and environmental incidents exceeded its target.

                    Key Issues

                    Recharge New York

                    Acting President and Chief Executive Officer Quiniones said that, to date, staff has received 14 applications for power under the new Recharge New York
   Program and the State has received 480 Consolidated Financial Applications through the Regional Council of the Governor’s office.

                    Annual Meeting of Multiple Intervenors at the Advanced Energy Research and Technology Center

   Acting President and Chief Executive Officer Quiniones said that Mr. James Pasquale and he attended the 2011 Annual Meeting of Multiple Intervenors held at the
  Advance Energy Research and Technology Center in Buffalo, New York.  He said that this was an opportunity for the Authority to communicate its initiatives, especially
 in the area of research and development, to other stakeholders.  He addressed the meeting on the Authority’s key energy initiatives in research and development.

                In response to a question from Trustee Mark O’Luck, Acting President and Chief Executive Officer Quiniones said that the Authority set a high standard for
 environmental incidents at a maximum of 27 per year and exceeded this target.  The incidents reported were caused by oil or refrigerant spills.  The Environmental division
 is planning additional safety and environmental training at the sites with the goal of avoiding incidents of unintended releases into the environment.  Mr. John Kahabka
added that the incidents were minor in nature; however, the Department of Environmental Conservation’s regulations obligates the Authority to report all incidents.
 

                In response to a question from Trustee LeChase, Acting President and Chief Executive Officer Quiniones said that staff conducted public informational meetings
 in different areas of the state on its Recharge New York program.  The Authority received positive responses to the program from customers, especially since the period for
 its renewal is seven years as compared to the previous program which was annually.  The challenge to staff is to process the numerous applications the Authority expects to
 receive in an expeditious manner.

 

                  b.             Report of the Acting Chief Operating Officer

                Acting Chief Operating Officer, Mr. Edward Welz, provided highlights of the report to the Trustees.

               Construction Activities

        Performance Measures

                      Transmission Reliability

                      The Authority is performing well and, consistent with the American Public Power Association’s scorecard, the Authority had a high
                      score for safety in its class.

                      Forced Outages

                   Astoria 500 MW Plant – Unit 7B was taken out of service because of failure of the excitation system; unit 7B was returned to service on October 20th.

                  Technical Compliance

                 The North American Electric Reliability Corporation (“NERC”) performed two compliance audits on the Authority both of which had no
        findings of potential violations.  Because of this, the Authority may not be subject to as many audits in the future.

                Regional Greenhouse Gas Initiative

               The Authority was awarded 500,000 tons of CO2 allowances at a market price of $1.89/ton.
 

                c.            Report of the Acting Chief Financial Officer

                Acting Chief Financial Officer, Mr. Donald Russak, provided highlights of the report to the Trustees. 
 

               Mr. Russak said that the Authority continues to perform well financially.  For the period ended September 30, 2011, Net Income was $171 million, which
               is $55 million above budget.

                Mr. Russak also reported the following activities:

            In response to a question from Trustee O’Luck, Mr. Russak said that the Authority is expected to be about $4 to $5 million above the 2011 “flat” budget.

             Responding to a question from Trustee Nicandri, Mr. Russak said that staff plans to conduct individual briefings with the Trustees and that the final budget
    approval is scheduled for   the meeting in December.

 

    4.    Preservation Power Contracts with Newton Falls Fine Paper Company, LLC and Upstate Niagara Cooperative, Inc. – Transmittal to the Governor 

           The Acting President and Chief Executive Officer submitted the following report:

    SUMMARY

                “The Trustees are requested to approve the proposed agreements (‘Agreements’) for the sale of Preservation Power to Newton Falls Fine Paper Company, LLC (‘NFFP’) and
    Upstate Niagara Cooperative, Inc. (‘Upstate Niagara’) and to authorize their transmittal to the Governor.  The proposed Agreements with NFFP and Upstate Niagara are attached as
    Exhibits ‘4-A’ and ‘4-B,’ respectively.

    BACKGROUND

                “At their May 24, 2011 meeting, pursuant to criteria set forth in §1005 (13) of the Public Authorities Law (‘PAL’), the Trustees approved 5,000 kilowatt (‘kW’) and 3,000 kW
    Preservation Power allocations for NFFP and Upstate Niagara, respectively.  The allocation to NFFP was approved for a term of three years and the allocation to Upstate Niagara was
    approved for a term of five years.  The Trustees also authorized a public hearing, pursuant to §1009 of the PAL, on the proposed Agreements to effectuate the sale of power and energy
    for the allocation to the companies. 

                 “In return for the 5,000 kW allocation, NFFP, a paper manufacturing company, committed to invest $6.7 million to purchase and install new and used equipment and to
    refurbish existing equipment in order to begin producing paper products in the short-term.  The investment would allow the company to re-open the mill and rehire workers that were
    laid off at the end of 2010.  The company also committed to invest $15.0 million to build a biomass cogeneration plant, to be in operation within three years, for a total project investment
   of $21.7 million.  NFFP committed to create 91 jobs within two years, in addition to the existing 18 jobs, as a result of this project.

                “In return for the 3,000 kW allocation, Upstate Niagara committed to invest a total of $11.0 million to purchase and re-open a dairy processing facility in North Lawrence.  The
  company will install two new high-speed productions lines and hire workers to produce dairy products, i.e., yogurt.  Roughly, $5.0 million of the total investment would be spent on the
  existing facility purchase and re-start, with the remaining $6.0 million for the new production equipment and installation.  The company has committed to create 80 jobs within three years as
  a result of this project.

                “Regarding the proposed Agreements, firm electric service will be equivalent to that provided to all other Authority firm hydropower customers and subject to pro-rata curtailment
  when there is insufficient generation at the Niagara and St. Lawrence/FDR facilities to meet the energy requirement of the firm hydropower customers.  The allocations will be subject to
  enforceable employment commitments.  The Agreements include an annual job reporting requirement with a job compliance threshold of 90%.  Should the ratio of actual jobs reported to
  jobs committed fall below the compliance threshold, the Authority has the right to reduce the hydropower allocation on a pro-rata percentage basis.  The rates for Preservation Power are
  contained in the ‘Schedule of Rates for Sale of Firm Power to Preservation Power Customers -Service Tariff No. 10,’ also included in Exhibits ‘4-A’ and ‘4-B.’

                “Regarding the status of the individual expansion projects, Upstate Niagara’s project has commenced with the purchase of the dairy processing facility.  The project is progressing
  and the company anticipates being ready to begin using the hydropower allocation as early as the first quarter of 2012.  NFFP continues to assess its options to move forward with the
  Newton Falls project.  The company is reviewing its business strategy and has yet to re-open the mill or purchase the cogeneration system.  If the Agreements are approved by the Trustees
 and the Governor, the individual customer’s agreement will be executed only after a project review is completed by the Authority.

    DISCUSSION

                “A public hearing on the Agreements was held on July 28, 2011 at the Frank S. McCullough, Jr. Hawkins Point Visitors’ Center at the St. Lawrence/FDR Power Project in
 Massena.  Four oral statements were given at the public hearing and a written statement with attachments was submitted by one of the speakers.  Three of the speakers provided statements
 unrelated to the Agreements.  One speaker supported the agreement for the Upstate Niagara power allocation and requested the Trustees do anything that could help create jobs at the North
 Lawrence facility.  The official transcript of the public hearing and the written submittal are attached as Exhibit ‘4-C.’

    RECOMMENDATION

                “The Manager – Business Power Allocations and Compliance recommends that the Trustees approve the proposed Agreements for the sale of Preservation Power to Newton Falls
 Fine Paper Company, LLC and Upstate Niagara Cooperative, Inc. and authorize the transmittal of the Agreements to the Governor for approval.

                “For the reasons stated, I recommend the approval of the above-requested action by adoption of a resolution in the form of the attached draft resolution.”

                Mr. Michael Huvane provided highlights of staff’s recommendation to the Trustees.  In response to a question from Trustee Nicandri, Mr. Huvane said that the
 Contract with Newton Falls Fine Paper Company was for three years; the company requested the shorter-term contract.  In response to further question from Trustee Nicandri,
 Mr. Huvane said that the contract for Upstate Niagara Cooperative was for five years, the standard term of the contracts.  Chairman Townsend added that the contracts to both
 Newton Falls Fine Paper Company and Upstate Niagara Cooperative will result in the reopening of facilities that were shut down.  He thinks it’s very important to note that
 the Authority was able to reenergize these local economies.

            The following resolution, as submitted by the Acting President and Chief Executive Officer, was unanimously adopted.

                                    RESOLVED, That the Preservation Power agreements for the sale of hydroelectric power and energy generated by the Authority for sale
                     to Newton Falls Fine Paper Company, LLC and Upstate Niagara Cooperative, Inc., respectively, are in the public interest and should be submitted to
                    the Governor for approval and that the agreements, along with the record of the public hearing thereon, be forwarded  to the  Speaker of the Assembly,
                    the Minority Leader of the Assembly, the Chairman of the Assembly Ways and Means Committee, the Temporary President of the Senate, the Minority
                    Leader of the Senate and the Chairman of the Senate Finance Committee; and be it further

                                    RESOLVED, That the Chairman and the Corporate Secretary be authorized and directed to execute such agreements in the name of and on
                    behalf of the Authority after it has been approved by the Governor; and be it further

                                    RESOLVED, That the Senior Vice President – Marketing and Economic Development, or his designee, be, and hereby is, authorized, subject to
                    the approval of the form thereof by the Acting General Counsel, to negotiate and execute any and all documents necessary or desirable to implement the
                    agreements with the companies
as set forth in the foregoing report of the Acting President and Chief Executive Officer; and be it further

                                    RESOLVED, That the Chairman, the Vice Chairman, the Acting President and Chief Executive Officer, the Acting Chief Operating Officer
                   and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things, take any and all
                   actions and execute and deliver any and all agreements, certificates and other documents to effectuate the foregoing resolution, subject to the approval of
                   the form thereof by the Acting General Counsel.

 

    5.             Recharge New York Production Rate Methodology and Indicative Rates 
           
                   
The Acting President and Chief Executive Officer submitted the following report:

    SUMMARY

                “The Trustees are requested to approve the proposed production rate methodology to be used to develop indicative rates for the Authority’s new Recharge New York Power
    Program (‘RNY Power Program’ or ‘RNY’) starting July 2012.

                “The Trustees are further requested to authorize staff to update the proposed rates to account for changed economic conditions immediately prior to the July 2012 start of
    RNY Power Program.

    BACKGROUND

                “The RNY Power Program is a new significant economic development program created by Chapter 60 (Part CC) of the Laws of 2011 (‘Chapter 60’).  In accordance with
   Chapter 60, the Authority will administer the RNY Power Program, which is designed to be a long-term, cost-effective energy solution for businesses throughout the state.  Many such
   businesses previously depended upon yearly legislative extensions of the Authority’s Economic Development Power and Power for Jobs program benefits, two programs that will be
   phased out pursuant to Chapter 60. 

                “The RNY Power Program will make a total of 910 MW of electricity available to New York businesses and not-for-profit entities, which will consist of 455 MW of Authority
    hydro-electricity and 455 MW of market electricity.  Because one-half of the RNY Power Program consists of hydropower, the Authority will be able to offer low-cost electricity to
    RNY Power Program participants.  In addition to the entitlement to receive the hydropower portion of the RNY allocation, each RNY participant shall have an option to choose to
    receive the market power portion of its RNY allocation from either the Authority or another electricity supplier.  If the RNY Power Program participant chooses to receive
    Authority-supplied market power, the Authority will employ appropriate strategies for procuring market energy and capacity necessary to supply the market power portion of the full
    RNY allocation.  The Authority’s sales under the RNY Power Program shall be accomplished through a direct power sale contract between the Authority and the RNY Power Program
    participant.  If the RNY Power Program participant does not choose to receive the market power portion of its RNY allocation from the Authority, it may choose an alternate supplier
    and the Authority would only be responsible for supplying the hydropower portion of the participant’s RNY allocation.  Each RNY allocation will be entitled to a delivery rate discount
    from the applicable transmitting utility regardless of whether the market power portion of the allocation is supplied by the Authority or an alternate supplier.

                “Approval of the production rate methodology is necessary for the Authority to market the RNY program to potential consumers throughout the state and to determine the level
   of energy cost savings, if any, that would be experienced by potential recipients of RNY allocations.  If approved, the proposed rate methodology would be inserted into a new Authority
   service tariff applicable to RNY Power Program allocations.  At the December 15, 2011 Trustee meeting, Authority staff intends to present both the form of contract for RNY Power
   Program sales and the accompanying service tariff for Board approval.

    DISCUSSION

                “In expectation of the commencement of RNY Power Program sales in July 2012, Authority staff has prepared a rate methodology and two sets of RNY indicative rates to be
   applicable to RNY Power Program participants. Staff proposes monthly base production rates for demand and energy differentiated by the geographic zones established by the New York
   Independent System Operator (‘NYISO’).  Exhibit ‘5-A’ contains the base rate components that are used in staff’s methodology to compute the rates.  Exhibit ‘5-B’ contains the indicative
   ‘RNY Hydro Only’ and ‘RNY Blended’ rates by zone.

            A.    Rate Methodology:

                    “RNY Hydro Only refers to the rate for a RNY participant who has chosen to purchase only the hydropower portion of its RNY allocation from the Authority.  RNY
    Blended refers to the rate for a RNY participant who has elected to purchase from the Authority its total RNY allocation, which is comprised of 50 percent Authority hydropower
    and 50 percent market power procured by the Authority. 

                    “The base rate components included in the RNY Hydro Only rate are the production rate under the Authority’s Preservation Power program plus charges for applicable
    NYISO Charges as set forth in Exhibit ‘5-A’ (which includes, but is not limited to, charges for ancillary services, marginal losses and congestion, NYPA Transmission Adjustment
    Charge (‘NTAC’) and other reliability-related charges or any other charge or assessment imposed by the NYISO upon load-serving entities), costs for the locational capacity as
    required by the NYISO for zones J and K, and  the costs for distribution losses to the extent the local utility has made adjustments to the deliveries to account for this function.  The
    NYISO charges included in the RNY Hydro Only rate will reflect the NYISO costs the Authority incurs as the load-serving entity for sale of RNY hydropower.

                  “The base rate components included in the RNY Blended rate are the same RNY Hydro Only components listed above, plus the Market Energy, Capacity Obligation and
    an adder to manage risk for bad debt.  Of course, the NYISO Charges and the Capacity Obligation components would be increased to reflect the additional load represented by the
    Authority’s role as the load-serving entity for both the market and hydropower portion of the RNY allocation.  See Exhibit ‘5-A.’

                   “In addition to the base production charges, RNY Power Program participants will be responsible for reimbursing the Authority for any taxes and any costs for substitute
    energy incurred by the Authority on behalf of a Program participant in the event hydropower needs to be reduced due to projected shortfalls or actual curtailments, and for any other
    future charges or costs imposed by third-parties and incurred by the Authority that are currently not known.

            B.     Indicative Base Rates

                    “Exhibit ‘5-B’ contains monthly indicative base rates for the period July 2012 through June 2013 for demand and energy paid by RNY customer to the Authority, as
    developed by Authority staff following the above-described methodology.  Pricing assumptions used for the market rate components are those based on the most current prices
    projected in the Authority’s Operating Forecast for July 2012 through June 2013.  If the actual costs shall vary from those estimated in the base rate components, they will be
    reconciled through a monthly billing mechanism designed to recover actual costs incurred. 

        C.       Revision of Indicative Base Rates

                  “Because the proposed indicative base rates were developed using the market and capacity price estimates as contained in the current Operating Forecast, the Trustees
    are requested to permit staff to update the base rates to incorporate the most current economic data available immediately prior to the start of the RNY Power Program in July 2012.

                “Consistent with the Authority’s other economic development power programs involving the sale of hydropower, staff intends for the RNY Power Program to be subject to
    ongoing annual rate adjustments for the hydro and market rate components.  Revised RNY Hydro Only and Blended rates would take effect starting in the July billing period each year.

        FISCAL INFORMATION

                    “The proposed rate methodology results in increased hydro revenues for the Authority and establishes full cost recovery and revenue neutrality to the Authority for providing
       Recharge New York market power.

       RECOMMENDATION

                “The Director – Market Analysis and Administration recommends that the Trustees approve the proposed rate methodology and indicative rates for providing Recharge New
        York Power to the Recharge New York Power Program participants, for inclusion in the Authority’s service tariff for RNY Power Program sales at the appropriate time.

                “It is also recommended that the Senior Vice President – Marketing and Economic Development, or his designee, be authorized to update the proposed indicative Recharge
         New York  rates before the commencement of sales under the Recharge New York Power Program in July 2012 and each July thereafter.

                “For the reasons stated above, I recommend the approval of the above requested action by adoption of a resolution in the form of the attached draft resolution.”

                Mr. Mike Lupo provided highlights of staff’s recommendation to the Trustees.  In response to a question from Trustee Nicandri, Mr. Lupo said that the cost
         recovery methodology, which has been evaluated by the Chief Financial officer and senior staff, will result in full recovery of all Authority costs, including all
         NYISO costs.  In  response to further question from Trustee Nicandri, Mr. Lupo said that the proposed rate adjustment is subject annual adjustments.

                    The following resolution, as submitted by the Acting President and Chief Executive Officer, was unanimously adopted.

                                        RESOLVED, That the Authority has developed a rate methodology for the Recharge New York Power Program; and be it further

                                        RESOLVED, That the Authority has developed indicative Recharge New York Power Program rates; and be it further

                                        RESOLVED, That the Senior Vice President – Marketing and Economic Development, or his designee, be, and hereby is, authorized to
                 update the indicative rates before the commencement of sales under the Recharge New York Power Program in July 2012 and each July thereafter;
                and be it further

                                        RESOLVED, That the Senior Vice President – Marketing and Economic Development, or his designee, be, and hereby is, authorized to
                 include such methodology and indicative rates in the service tariffs currently under development by the Authority for Recharge New York Power Program
                 sales; and be it further

                                        RESOLVED, That the Chairman, the Vice Chairman, the Acting President and Chief Executive Officer, the Acting Chief Operating Officer and
                 all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to do any and all things, take any and all actions and
                 execute and deliver any and all certificates, agreements and other documents to effectuate the foregoing resolution, subject to the approval of the form thereof
                 by the Acting General Counsel.

 

    6.        New York Power New York Power Authority Other Post-Employment Benefits Trust Fund: Funding Plan, Amendments to the Investment Policy
               Statement and Selection of New Investment Managers

           The Acting President and Chief Executive Officer submitted the following report:

    SUMMARY

                “The Trustees are requested to approve an on-going funding plan for the New York Power Authority Other Post-Employment Benefits Trust; approve the award of two
    multiyear procurement contracts relating to professional investment management services for such Trust and approve amendments to the Trust’s Investment Policy Statement.

    BACKGROUND

                “Certain Governmental Accounting Standards Board (‘GASB’) standards issued in 2004 require governmental employers to account for other post-employment benefit
    (‘OPEB’) liabilities on an ‘accrual’ basis (i.e., as the benefits are earned during the working career of the employee) rather than on a ‘pay-as-you-go’ basis, where costs are recorded
    as the benefits are paid during the employee’s retirement years.  OPEBs may include medical, prescription drug, dental, vision, life and other long-term care benefits for retirees and
    eligible beneficiaries.  Similar GASB standards for pensions have existed since 1994.  The Authority began reporting its OPEB obligations in this manner in 2002.

                “The GASB rules do not mandate the funding of OPEB obligations, only a recognition of the accrued OPEB liability on the employer’s financial statements.  If left unfunded,
    however, the amount of the unfunded liability could significantly impact the employer’s overall financial condition and its credit rating with an attendant impact on the cost of debt financing. 

                “After an assessment by staff, it was determined that the establishment of a separately managed trust fund would be beneficial and at their July 31, 2007 meeting, the Trustees
    (1) approved the creation of the New York Power Authority Other Post-Employment Benefits Trust (the ‘Trust’); (2) adopted the Trust Investment Policy Statement; (3) appointed
    a Trustee Custodian and (4) approved an initial $225 million funding plan.

                “The exclusive purpose of the Trust is to accumulate, hold and invest funds for the payment of Benefits to Plan Beneficiaries and the payment of related administrative costs of
     the Plan and of the Trust, as provided in the Trust Agreement.  The principal of the Trust, together with any earnings thereon, are held separate and apart from funds of the Authority.
     The participants as of the date of the last actuarial valuation (January 1, 2010) included 1,564 active employees, 1,192 retirees and 827 spouses for a total population of 3,583.

                “The Trust Investment Policy Statement outlines and discusses the Trust’s investment objectives and includes a strategy for diversification among several asset types and classes
    so as to be aligned with the Authority’s overall return objectives and risk tolerances.  The following table summarizes these various categories, their percentage targets and the market
    value as of August 31, 2011 for each principal class of investment:



 

Asset Type

Target
Allocation
Percentage

Target Allocation Range

Current Allocation
Percentage

Market Value Aug 31, 2011
($ millions)

Equities

61%

 

58%

$139.2

   Domestic Equity

42%

37% - 47%

40%

$  94.8

   International Equity

19%

14% - 24%

18%

$  44.4

 

 

 

 

 

Other Equity

6%

 

7%

$ 16.4

   Real Estate

6%

1% - 11%

7%

$ 16.4

 

 

 

 

 

Fixed Income

33%

 

35%

$ 83.8

   Domestic Fixed Income

30%

25% - 35%

31%

$ 75.0

   Cash Equivalent

3%

0% - 10%

 4%

$  8.8

 

 

 

 

 

Total

 

 

 

$ 239.4

                 “The establishment of the Trust, in addition to securing the Authority’s ability to meet its OPEB obligations, reduces the net cost of the obligations by providing investment earnings
    to offset the anticipated growth in benefit expenditures.  Moreover, the establishment of the separate Investment Policy for the Trust allows investment in longer-term and generally higher
    yielding investments than the Authority’s general funds.  Based on an assessment by the Authority’s actuary, the earnings rate on the Trust was estimated to produce more than $70 million
    in present value savings over a 30-year period.

                 “The initial funding level of $225 million represented only a partial funding of the then $325 million obligation.  At the time of the initial approval, staff indicated to the Trustees that
    it would take some time to monitor the performance of the Trust and that staff will return to the Board at a later date with any recommended changes and/or further recommendations for funding.

    DISCUSSION

                “Since the creation and funding of the Trust in late 2007/early 2008, the market’s performance has been volatile.  From December 2007 through to March 2009, the Dow Jones
    Industrial Average and the S&P 500, as illustrated in the following chart, each dropped by more than 40%.  From March 2009 through August 2011, the markets rebounded to only about
    83% - 88% of their December 2007 levels.  The diversification strategy of the OPEB Trust, in large part, mitigated this volatility.  While declining by as much as 20% in value through
    March 2009 – about half the drop of the major market indices – the OPEB Trust’s market value has recovered to 106% of its late 2007 level at August 31, 2011.


                “While monitoring the performance of the portfolio, the Authority did not deposit any additional funds into the OPEB Trust, nor have funds been withdrawn from the Trust as the
    Authority continued to meet its benefit obligations with cash from operations.  The overall liability, reflecting a number of updated actuarial assumptions, was determined to be $400 million
    as of January 1, 2010, the date of the latest study.  The principal contributors to the increase in the liability were the use of an updated mortality table and the fact that the Authority had not
    made any additional deposits to the Fund.  With the Trust Fund balance standing at $239 million, the obligation is about 60% funded. 

                “Staff, with the support of its financial advisor, PFM Advisors, conducted an evaluation of the funding strategies, the Trust’s performance and the performance of the individual
    fund managers.  Overall, staff is satisfied that the principal objective for the establishment of the Trust Fund is being met, namely, that the Authority is prudently planning for its future
    obligations to its employees while minimizing its costs.  Based on this evaluation, the following recommendations are presented:

                (1)    Resume Funding of the Trust

                “The annual OPEB Expense is determined through a biennial actuarial study.  The annual OPEB Expense includes the annual accrual for current employees (often referred to
    as the ‘Normal Cost’), the amortization of the initial unfunded liability (which represents the amortization of the annual accrual amounts for all years prior to the adoption of the
    GASB rules) and any necessary adjustments to account for the cost impact of plan and/or assumption changes, etc.  The Authority is amortizing the initial prior service obligation over
    a twenty-year period.  The impacts of changes in assumptions and plan changes on costs are generally amortized over future periods.  To the extent the annual OPEB Expense is not
    funded, the lost earnings opportunity will cause the unfunded liability to continually increase.

                “It is recommended that the Authority resume funding the Trust through annual deposits in an amount equal to the annual OPEB Expense net of the actual benefits paid for retirees.
    For 2011, the annual OPEB Expense was determined to be $33.5 million.  The expected level of benefits paid for retirees under the Plan in 2011 is estimated to be $18.9 million. 
    Therefore, for 2011, the difference between the annual OPEB Expense and the amount paid for retirees, i.e., the net obligation of $14.6 million, would be deposited into the Trust.  In
    addition, it is recommended that the net obligation amounts for the two prior years in which staff was monitoring the Fund’s performance – totaling $25 million for the two years – also
    be deposited into the fund in order to bring this funding plan current.

                (2)    Replacement of Investment Manager

                “The Authority, in coordination with PFM Advisors, continuously monitors and evaluates individual fund managers and their performance.  Beginning in late 2010, Global Currents
    Investment Management (‘Global’), which manages the Value portion of the International Equity portfolio, experienced significant organizational changes including the departure of their
    global equity portfolio manager and two analysts providing financials and consumers sector research.  Staff has determined that these changes are significant and could negatively affect
    the ability of Global to effectively manage the portfolio going forward.  The Investment Committee at PFM Advisors placed Global on probation status earlier this year and is now advising
    clients to move assets under management with Global.

                “On June 13, 2011, staff solicited proposals for professional investment management services for the referenced investment class by notice to a number of firms providing such
    services and advertisement in the New York State Contract Reporter.  On or before July 12, 2011 the Authority received a total of twenty-one proposals.

                “Staff, with the support of PFM Advisors, evaluated each proposal according to various criteria, including, but not limited to, performance, performance consistency and
    volatility, correlation to market, risk metrics, schedule of fees and supporting organizational capabilities.  After conducting extensive review and analysis, the five firms with the highest
    relative rankings were invited to give oral presentations.  Based on the above criteria and oral presentations, the following two firms were deemed to have the highest overall rankings
    to manage a portion of the international assets in the OPEB Trust Fund: Lazard Asset Management LLC (‘Lazard’) and Thomas White International Ltd. (‘Thomas White’).  

                “Lazard’s unique relative valuation approach, focus on financial productivity, long team history and superior past down market capture compliment the investment style of
    Barings Asset Management (‘Barings’) which manages the Growth portion of the OPEB Trust’s International Equity portfolio.

                “Thomas White employs a quantitative process with a qualitative overlay.  The firm has demonstrated a consistent track record for the past two decades, superior risk
    adjusted returns over the trailing periods and a strong investment team. 

                “Based on back-testing results from the combination of Barings, Lazard and Thomas White, an improvement in overall historical portfolio risk and return is expected to be
    achieved.  As such, staff is recommending that Lazard and Thomas White be awarded five-year contracts subject, however, to early termination at any time by the Authority on 60
    days’ notice. 

                “Section 2879 of the Public Authorities Law and the Authority’s Guidelines for Procurement Contracts require the Trustees’ approval for procurement contracts involving
    services to be rendered for a period in excess of one year.  The terms of the contracts considered herein are for more than one year and, therefore, Trustee approval is required. 

                (3)    Amendments to the Investment Policy Statement

                “Staff is also recommending several amendments to the Investment Policy Statement (‘IPS’) for the New York Power Authority Other Post-Employment Benefit Trust Fund.
    The IPS has not been amended since approved by the Board on July 31, 2007.  The amendments serve to further clarify diversification and credit quality restrictions within the various
    permissible asset classes.  A marked version of the IPS showing the recommended changes is attached as Exhibit ‘6-A’ with any additions shown as underlined and any deletions shown
    as strikethroughs.  A final version of the amended IPS is attached as Exhibit ‘6-B.’

     FISCAL INFORMATION

                “The implementation of the recommended funding plan is expected to reduce the future amortization of the unfunded obligation by about $2 million annually and preclude future
    growth in the         unfunded liability due to lost earnings opportunities.  The fees for the two recommended Investment Managers, which will be paid from OPEB Trust assets, are
    expected to average approximately 88 basis points per annum (a basis point equals one one-hundredth of one percent or 0.01%).  The fees should equal about $240,000 for the first
    year, growing in conjunction with the Fund’s growth.  Over the course of the recommended five-year term of the investment manager contracts, fees are estimated to total about $1.4 million
    assuming a normal growth rate in the Fund’s Assets.

    RECOMMENDATION

                “The Acting Executive Vice President and Chief Financial Officer recommends the Trustees (1) authorize the on-going funding plan for the New York Power Authority Other
    Post-Employment Benefit Trust Fund, as discussed above; (2) approve the award of multiyear services contracts to the two investment managers so named and described above for
    the New York Power Authority Other Post-Employment Benefit Trust Fund and (3) adopt the revised Investment Policy Statement reflecting the recommended changes noted above
    and shown on Exhibit ‘6-B.’

    “For the reasons stated, I recommend the approval of the above-requested action by adoption of a resolution in the form of the attached draft resolution.”

                 Mr. Donald Russak presented highlights of staff’s recommendation to the Trustees.  In response to a question from Trustee O’Luck, Mr. Russak said staff is
    requesting approval for $43.9 million for the plan.  In response to a question from Vice Chairman Foster, Mr. Russak said there is no statutory requirement for this
    action; however, staff thinks the plan, as presented to the Board for its approval, is a prudent approach to funding the Authority’s future obligations.  Responding
    to further question from Trustee O’Luck, Mr. Russak said that, to the extent that the fund under or over performs, it can be adjusted as necessary.
  

                 In response to a question from Trustee Nicandri, Mr. Russak said that the selection of the two firms, Lazard Asset Management LLC and Thomas White
    International Ltd., was done through an evaluation team using various criteria, and, after extensive review and analysis, the evaluation team selected the highest
    rated firms it considered appropriate to manage the fund.   In response to a question from Trustee LeChase, Mr. Russak said that each of the firms will be managing
    a portion of the $44 million.

                The following resolution, as submitted by the Acting President and Chief Executive Officer, was unanimously adopted.

                                                RESOLVED, That the Trustees approve the adoption of the recommended funding plan for the Power Authority of the State of New York
                                 Other Post- Employment Benefits Trust, as recommended in the foregoing report of the Acting President and Chief Executive Officer; and be it further

                                                RESOLVED, That pursuant to the Guidelines for Procurement Contracts adopted by the Authority, the award and funding of the multiyear
                                 investment management services contracts for the New York Power Authority Other Post- Employment Benefits Trust are hereby approved and their
                                execution by the Acting Executive Vice President and Chief Financial Officer or his designee is approved, subject to approval of the form thereof by
                                the Acting General Counsel, on behalf of the Authority, as recommended in the foregoing report of the Acting President and Chief Executive Officer;
                                and be it further

                                                RESOLVED, That the Trustees approve the adoption of the amended Investment Policy Statement For Power Authority of the State of New
                                York Other Post- Employment Benefits Trust, reflecting the amendments as recommended in the foregoing report of the Acting President and
                                Chief Executive Officer; and be it further

                                                RESOLVED, That the Chairman,  the Vice Chairman, the Acting President and Chief Executive Officer, the Acting Executive Vice
                                President and Chief Financial Officer and all other officers of the Authority are, and each of them hereby is, authorized on behalf of the Authority to
                                do any and all things and take any and all actions and execute and deliver any and all agreements, certificates and other documents to effectuate the
                                foregoing resolution, subject to the approval of the form thereof by the Acting General Counsel.
 

        7.            Proposed Schedule of Trustees’ Meetings in 2012

                        The Corporate Secretary submitted the following report:

                        “The following schedule of meetings for the year 2012 is recommended:

               Date                                                               Location                                                Time                                                             

            January 31, 2012                                            WPO                                                       11:00 a.m.
            February 28, 2012                                          WPO                                                       11:00 a.m.
            March 27, 2012 – Annual                               WPO                                                       11:00 a.m.
            April 24, 2012                                                ALB                                                         11:00 a.m.           
            May 22, 2012                                                 WPO                                                       11:00 a.m.
            June 26, 2012                                                  STL                                                        11:00 a.m.
            July 31, 2012                                                   NIA                                                        11:00 a.m.
            AUGUST                                           NO MEETING SCHEDULED
            September 25, 2012                                        WPO                                                       11:00 a.m.
            October 30, 2012                                            WPO                                                       11:00 a.m.
            November 27, 2012                                        WPO                                                       11:00 a.m.
            December 18, 2012                                         WPO                                                       11:00 a.m.

RECOMMENDATION

            “The Acting President and Chief Executive Officer and I support the proposed schedule for the Authority’s Trustees’ Meetings for the year 2012, as set forth in
the foregoing report.

              “I recommend the approval of the proposed schedule by adoption of a resolution in the form of the attached draft resolution.”

              Ms. Karen Delince highlighted staff’s recommendations to the Trustees.  Vice Chairman Foster suggested a more comprehensive agenda with fewer meetings; Trustee Dyson suggested that the schedule be approved as presented as it is easier to cancel than schedule the meetings.
 

              The following resolution, as submitted by the Corporate Secretary, was unanimously adopted.

                                               RESOLVED, That the schedule of Trustees’ Meetings for the year 2012, as set forth in the foregoing report of the Corporate Secretary, be,
                                    and hereby is, approved.

 

    8.             Employee Recognition – B-G Storm Event

                Chairman Townsend made the following remarks recognizing the efforts made by certain employees during the crisis as a result of Hurricane Irene and Tropical
    Storm Lee. 
The next item on our agenda gives me great satisfaction and is something we’ve been looking forward to.  As we all know, the Power Authority was severely
    tested in August in responding to the unprecedented high water levels from Tropical Storm Irene at our Blenheim-Gilboa and Vischer Ferry hydro facilities along the
    Schoharie Creek and Mohawk River. 

                Never before in the Authority’s history have we faced such surging waters and dangerous conditions, leading to the activation of our emergency action plans at
    the two facilities on August 28th and 29th.  Thankfully, the quick and decisive actions by our B-G staff and others at NYPA led to the stabilizing of conditions, as the
    waters receded, in what’s been referred to as a 500-year flood.  

                There were a number of employees who contributed mightily to our success, including six individuals, here today, whose heroism and exemplary leadership is
    representative of the finest qualities of NYPA’s workforce.  We’re proud of what you did and delighted you could make it to this recognition ceremony. 

                I now want to turn to Lynn Hait, NYPA’s Regional Manager for Central New York, who was part of the management operations team, under Gil Quiniones
    and Ed Welz, which spearheaded the response to the storm.  Lynn will talk further about the singular contributions of the individuals we’re honoring today. 

                Mr. Lynn Hait, Regional Manager – Central New York, presented Certificates of Appreciation to the following B-G employees: Messrs. Brian Saez,
    Operations/MRM Superintendent; David Weiman, Senior Civil Engineer; Chris Brown, Mechanical Maintenance Supervisor; Steven Alberti, Operations Shift
    Supervisor; Ty Hinkley, Operations Shift Supervisor; and White Plains Office employee, Mr. Robert Knowlton, Director Civil/Structural Engineering.  He outlined
    the critical effects of Tropical Storms Irene and Lee to the Authority’s Blenheim-Gilboa and Vischer Ferry Plants and the efforts, above and beyond the call of duty,
    of each of the employees to alleviate the damage to these facilities and downstream properties.  Chairman Townsend added that the Trustees appreciated their efforts.

 

    9.        Motion to Conduct an Executive Session

                 Mr. Chairman, I move that the Authority conduct an executive session pursuant to the Public Officers Law of the State of New York section §105 to discuss
    matters leading to the appointment, employment, promotion, demotion, discipline, suspension, dismissal or removal of a particular person or corporation. 
On motion
    made and seconded, an Executive Session was held.


10.        Motion to Resume Meeting in Open Session

         Mr. Chairman, I move to resume the meeting in Open Session.  On motion made and seconded, the meeting resumed in Open Session.

 

11.        Next Meeting

        The next regular meeting of the Trustees will be held on Tuesday, November 15, 2011, at 11:00 a.m., at the Clarence D. Rappleyea Building, White Plains, New York,
    unless otherwise designated by the Chairman with the concurrence of the Trustees.


Closing
                On motion made and seconded, the meeting was adjourned by the Chairman at approximately 2:32 p.m.

 

Karen Delince
Corporate Secretary

 

 

                                                                

 

 

  The New York Public Service Commission recently directed the state’s utility companies to adopt a delivery rate discount for RNY Power Program deliveries, as set forth in Case 11-E-0176, In the Matter of the Commission’s Implementation of Certain Provisions of the Recharge New York Power Program Act, ‘Order Directing Certain Utilities to Submit Tariff Amendments’ (issued and effective September 19, 2011).

These standards include Statement No. 43 – Financial Reporting for Post-employment Benefit Plans Other Than Pension Plans and Statement No.45 – Accounting and Financial Reporting by Employers for Post-employment Benefits Other than Pensions.