ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

May 19, 2008

Video Conference – 10:00 a.m.

 

                                New York Power Authority Offices:

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

                                                30 South Pearl Street, 10th Floor, Albany, NY

                                                Niagara Power Project, 5777 Lewiston Road, Lewiston, NY

 

 

1.             Approval of the Minutes of the Meeting of April 29, 2008

 

2.             Power for Jobs Extended Benefits Recommendations

                for Electricity Savings Reimbursements                          

 

A.         COMPANIES IN JOB COMPLIANCE

 

Con Edison - Service Territory

 

Acme Smoked Fish Corp.

Brooklyn – Kings County

 

American Ballet Theater

New York – New York County

 

Bank of New York

New York – New York County

 

Belmont Metals, Inc.

Brooklyn – Kings County

 

Beth Israel Medical Center

New York – New York County

 

Charmer Industries, Inc.

Astoria – Queens County

Elaine Kaufman Cultural Center

New York – New York County

 

New York Presbyterian Hospital

New York – New York County

 

New York University

New York – New York County

 

Norampac New York City, Inc

Maspeth – Queens County

 

S.R. Guggenheim Museum

New York – New York County

 

The Museum of Modern Art

New York – New York County

 

 

 

 

 

Long Island Power Authority - Service Territory

 

Standard Microsystems

Hauppauge – Suffolk County

 

 

 

National Grid - Service Territory

 

Bank of New York

Oriskany - Oneida County

 

Bristol-Myers Squibb Company

East Syracuse – Onondaga County

 

 

Cooper Industries (Cooper Crouse-Hands)

Syracuse - Onondaga County

 

Delphi Automotive Systems

Amherst – Erie County

 

Ford Motor Company

Buffalo – Erie County

 

Higbee, Inc.

Syracuse - Onondaga County

 

Snyder Industries, Inc.

North Tonawanda – Niagara County

 

Specialized Packaging Radisson, Inc.

Baldwinsville - Onondaga County

 

 

Standard Manufacturing Co., Inc.

Troy – Rensselaer County

 

Syracuse University

Syracuse - Onondaga County

 

Turbine Engine Components Technologies

Whitesboro – Oneida County

 

 

 

 

 

New York State Electric and Gas – Service Territory

 

Audio Sears

Stamford – Delaware County

 

Corning (Erwin Plant)

Corning – Steuben County

 

Corning, Inc. (Big Flats)

Big Flats – Chemung County

 

Corning (Sullivan Park)

Corning, Inc. – Steuben County

 

 

 

 

 

B.         COMPANIES NOT IN JOB COMPLIANCE

 

National Grid - Service Territory - Service Territory

 

Faster Form Corp

Frankfort – Herkimer County

Precision Systems Mfg., Inc

Liverpool – Onondaga County

 

 

OTHER BUSINESS

 

3.             Next Meeting

 

 


 

                A regular meeting of the Economic Development Power Allocation Board was held via video conference at the following participating locations:

 

1)       New York Power Authority, 30 South Pearl Street, Albany NY

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

3)       Niagara Power Project, 5777 Lewiston Road, Lewiston, NY

 

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

Daniel C. Gundersen, Chairman (Albany, NY

Bernard P. McGarry, Member (Albany, NY)

James A. Duncan, Member, (Lewiston, NY)

 

Frank S. McCullough, Jr., Member (Excused)

 

Also in attendance were:

 

Roger B. Kelley                    President and Chief Executive Office, NYPA

Thomas J. Kelly                    Executive Vice President, General Counsel and Chief of Staff, NYPA

Anne B. Cahill                      Corporate Secretary, NYPA

Thomas Warmath                                Vice President and Chief Risk Officer

Joseph C. Carline                 Assistant General Counsel, NYPA

John B. Hamor                      Executive Director – State Governmental Relations, NYPA

James F. Pasquale                Director – Business Power Allocations, Compliance and Municipal and Cooperative Marketing, NYPA

Connie Cullen                       Deputy Director – Media Relations, NYPA

Anthony C. Savino              Manager – Business Power Allocations and Compliance, NYPA

Mary Jean Frank                  Associate Corporate Secretary, NYPA

Lorna M. Johnson               Assistant Corporate Secretary, NYPA

Kristen Mucitelli-Heath      Special Advisor to Commissioner, ESDC

Keith Corneau                      Energy Policy, ESDC


 

1.                    Adoption of Minutes

The minutes of the meeting of April 29, 2008, were unanimously adopted.


 

 

2.             Power for Jobs Program - Extended Benefits

 

SUMMARY

 

The Members of the Economic Development Power Allocation Board (“EDPAB”) are requested to approve extended benefits for 30 Power for Jobs (“PFJ”) customers as listed in Exhibit “A” and “B.” 

 

BACKGROUND

 

                In July 1997, the New York State Legislature approved a program to provide low-cost power to businesses and not-for-profit corporations that agree to retain or create jobs in New York State.  In return for commitments to create or retain jobs, successful applicants receive three-year contracts for PFJ electricity.

 

The PFJ program originally made 400 megawatts (“MW”) of power available.  The program was to be phased in over three years, with approximately 133 MW made available each year.  In July 1998, as a result of the initial success of the program, the Legislature amended the PFJ statute to accelerate the distribution of the power and increase the size of the program to 450 MW.

 

                In May 2000, legislation was enacted that authorized another 300 MW of power to be allocated under the PFJ program.  Legislation further amended the program in July 2002.

 

                Chapter 59 of the Laws of 2004 extended the benefits for PFJ customers whose contracts expired before the end of the program in 2005.  Such customers had to choose to receive an “electricity savings reimbursement” rebate and/or a power contract extension.  The Authority was also authorized to voluntarily fund the rebates, if deemed feasible and advisable by the Trustees.

 

PFJ customers whose contracts expired on or prior to November 30, 2004 were eligible for a rebate to the extent funded by the Authority from the date their contract expired through December 31, 2005. 

 

PFJ customers whose contracts expired after November 30, 2004 were eligible for rebate or contract extension, assuming funding by the Authority, from the date their contracts expired through December 31, 2005.

 

Approved contract extensions entitled customers to receive the power from the Authority pursuant to a sale-for-resale agreement with the customer’s local utility.  Separate allocation contracts between customers and the Authority contained job commitments enforceable by the Authority.

 

In 2005, provisions of the approved State budget extended the period PFJ customers could receive benefits until December 31, 2006.  Chapter 645 of the Laws of 2006 included provisions extending program benefits until June 30, 2007.  Chapter 89 of the Laws of 2007 included provisions extending program benefits until June 30, 2008. Chapter 59 of the Laws of 2008 included provisions extending the program benefits until June 30, 2009.

 

At its meeting of October 18, 2005, EDPAB approved criteria under which applicants whose extended benefits EDPAB had reduced for non-compliance with their job commitments could apply to have their PFJ benefits reinstated in whole or in part.  EDPAB authorized staff to create a short-form application, notify customers of the process, send customers the application and evaluate reconsideration requests based on the approved criteria. 

 

DISCUSSION

 

EDPAB is requested to recommend that the Authority Trustees approve electricity savings reimbursement rebates to the 30 PFJ customers, 28 of which are meeting their current job commitment and are listed in Exhibit “A”.  However, two customers reported actual job numbers below their contractual commitment we are recommending that these customers have their allocation reduced proportionately to their job shortfall where appropriate. These customers are listed in Exhibit “B”. Collectively, these organizations have agreed to retain more than 46,000 jobs in New York State in exchange for rebates. The rebate program will be in effect until June 30, 2009, the program’s sunset.

RECOMMENDATION

 

It is requested that the Economic Development Power Allocation Board recommend that the Authority Trustees approve the payment of electricity savings reimbursements to the 30 business listed in Exhibits “A” and “B.”

 

Mr. James Pasquale presented the highlights of staff’s recommendations to the Board.  In response to a question from Chairman Daniel Gundersen, Mr. Pasquale explained that customers not meeting their job commitments can apply for reconsideration under the following criteria approved by the Board:

·         Additional employees have been hired since the application was submitted.

·         Employment has been affected by a temporary circumstance, such as a fire or a flood.

·         Employment has been affected by a local, regional, or global economic slowdown.

·         The applicant is the largest taxpayer or employer in the area where the business is located.

·         Without its full PFJ allocation, the applicant may relocate to another state or close its operations in New York State.

·         In the case of not-for-profit applicants, the applicant provides substantial benefits for the local community. 

 

Mr. Pasquale said that since the reconsideration process began in 2005, more than 200 PFJ applicants have been sent the reconsideration criteria and more than 100 of those applicants have sent letters requesting reconsideration.  When those letters are received, three Authority staff independently review and then meet to discuss them.  In some cases, the original PFJ allocation is reinstated in full or in half and in other cases the original allocation is not reinstated at all.

                Responding to another question from Chairman Gundersen, Mr. Pasquale said that two of the 30 companies on today’s agenda met at least one of the reconsideration criteria, while the others that are shown as not meeting their job commitments had already applied for reconsideration and had their allocations reinstated fully.

The following resolution was unanimously adopted by members of the Board present.

WHEREAS, the following entities have applied for extended benefits recommendations for electricity savings reimbursements under the Power for Jobs program:

A.                  COMPANIES IN JOB COMPLIANCE

 

Con Edison - Service Territory

Acme Smoked Fish Corp.

Brooklyn – Kings County

 

American Ballet Theater

New York – New York County

 

 

Bank of New York

New York – New York County

 

Belmont Metals, Inc.

Brooklyn – Kings County

 

Beth Israel Medical Center

New York – New York County

 

Charmer Industries, Inc.

Astoria – Queens County

Elaine Kaufman Cultural Center

New York – New York County

 

New York Presbyterian Hospital

New York – New York County

 

 

New York University

New York – New York County

 

Norampac New York City, Inc

Maspeth – Queens County

 

S.R. Guggenheim Museum

New York – New York County

 

The Museum of Modern Art

New York – New York County

 

 

 

Long Island Power Authority - Service Territory

Standard Microsystems

Hauppauge – Suffolk County

 

 

 

National Grid - Service Territory

Bank of New York

Oriskany - Oneida County

 

Bristol-Myers Squibb Company

East Syracuse – Onondaga County

 

Cooper Industries (Cooper Crouse-Hands)

Syracuse - Onondaga County

 

Delphi Automotive Systems

Amherst – Erie County

 

Ford Motor Company

Buffalo – Erie County

 

Higbee, Inc.

Syracuse - Onondaga County

Snyder Industries, Inc.

North Tonawanda – Niagara County

 

Specialized Packaging Radisson, Inc.

Baldwinsville - Onondaga County

 

Standard Manufacturing Co., Inc.

Troy – Rensselaer County

 

Syracuse University

Syracuse - Onondaga County

 

Turbine Engine Components Technologies

Whitesboro – Oneida County

 

 

 

 

 

 

 

 

 

New York State Electric and Gas – Service Territory

Audio Sears

Stamford – Delaware County

 

Corning (Erwin Plant)

Corning – Steuben County

Corning, Inc. (Big Flats)

Big Flats – Chemung County

 

Corning (Sullivan Park)

Corning, Inc. – Steuben County

 

 

B.                  COMPANIES NOT IN JOB COMPLIANCE

 

National Grid - Service Territory - Service Territory

Faster Form Corp

Frankfort – Herkimer County

Precision Systems Mfg., Inc

Liverpool – Onondaga County

 

 


 

NOW THEREFORE BE IT RESOLVED, That the Board hereby finds and determines that such applications meet the requirements of the extended benefits provisions of the Power for Jobs legislation contained in Article 6 of the Economic Development Law as amended by Chapter 59 of the Laws of 2008; and be it further

 

RESOLVED, That the Board recommends to the Power Authority of the State of New York the 30 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 42,225 kW until June 30, 2009.


 



 

Other Business

 

                Mr. Bernard McGarry said that since this was Mr. John Hamor’s last EDPAB meeting, he wanted to say what a great resource and good friend Mr. Hamor had been over the years.  Chairman Gundersen thanked Mr. Hamor and wished him well and Mr. James Duncan added his congratulations on Mr. Hamor’s retirement.

 

 

 

 


 

3.             Next Meeting

 

                The next meeting of the Board is to be determined.