Economic Development Power Allocation Board

ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

MINUTES

November 17, 2008

Video Conference – 9:30 a.m.

New York Power Authority Offices:

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

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

Niagara Power Project, 5777 Lewiston Road, Lewiston, NY

St. Lawrence Power Project, 830 Barnhart Island, Massena, NY

1. Approval of the Minutes of the Meeting of October 24, 2008

2. Power for Jobs Extended Benefits Recommendations for Electricity Savings Reimbursements

A. COMPANIES IN JOB COMPLIANCE

Central Hudson Gas & Electric – Service Territory

Northeast Solite Corp.

Mount Marion - Ulster County

Con Edison - Service Territory

Beth Israel Medical Center

New York - New York County

Columbia University – Trustees

New York - New York County

Edison Price Lighting, Inc.

New York - New York County

Greater Jamaica Development Corp.

Jamaica - Queens County

Jacmel Jewelry, Inc.

Long Island City - Queens County

Mount Sinai Medical Center

New York - New York County

NYU Medical Center

New York - New York County

S. R. Guggenheim Museum

New York - New York County

The Museum of Modern Art

New York - New York County

Thirteen WNET (Educational Broadcasting Corp.)

New York - New York County

Long Island Power Authority - Service Territory

Enzo Clinical Labs, Inc.

Farmingdale – Suffolk County

Good Samaritan Hospital

West Islip – Suffolk County

National Grid - Service Territory

Albany Molecular Research, Inc.

Albany - Albany County

AMRI Rensselaer, Inc.

Rensselaer - Rensselaer County

Anoplate Corp.

Syracuse - Onondaga County

Atofina Chemicals, Inc.

Geneseo - Livingston County

Beechnut Nutrition Corp.

Canajoharie - Montgomery County

Clarkson University

Potsdam - St. Lawrence County

Climax Manufacturing Co.

Carthage - Jefferson County

Cortland Line Co., Inc.

Cortland - Cortland County

Crucible Specialty Metals

Syracuse - Onondaga County

CWM Chemical Services, LLC

Model City - Niagara County

Dal Tile Corporation

Olean - Cattaraugus County

Dielectric Laboratories, Inc.

Cazenovia - Madison County

Diemolding Corporation

Canastota - Madison County

Dodge-Graphic Press Inc.

Utica - Herkimer County

Dupli Envelopes & Graphics Corp.

Syracuse - Onondaga County

Eastman Machine Company

Buffalo - Erie County

Edward John Noble Hospital

Gouverneur - St. Lawrence County

Fitzpatrick & Weller, Inc.

Ellicottville - Cattaraugus County

Ford Motor Company

Buffalo - Erie County

G L & V Sandy Hill Inc.

Hudson Falls - Washington County

Higbee Inc.

Syracuse - Onondaga County

Interface Solutions, Inc.

Fulton - Oswego County

Keystone Corporation

Buffalo - Erie County

Kilian Manufacturing Corporation

Syracuse - Onondaga County

Lydall Manning

Green Island - Albany County

Manth-Brownell, Inc.

Kirkville - Madison County

McLane Eastern

Baldwinsville - Onondaga County

Meloon Foundries, Inc.

Syracuse - Onondaga County

Mohawk Paper Mills

Cohoes - Albany County

Nathan Littauer Hospital & Nursing Home

Gloversville - Fulton County

Paul Bunyan Products, Inc.

Preble - Cortland County

Precision Systems Mfg., Inc.

Liverpool - Onondaga County

Queensboro Farm Products, Inc.

Canastota - Madison County

Revere Copper Products

Rome - Oneida County

Robison & Smith, Inc.

Gloversville - Fulton County

SABIC Innovative Plastics

Selkirk - Albany County

Schenectady International, Inc.

Schenectady - Schenectady County

Schneider Packing Equipment

Brewerton - Onondaga County

Sorrento Lactalis, Inc.

Buffalo - Erie County

Specialized Packaging Radisson, Inc.

Baldwinsville - Onondaga County

Syracuse Casting Sales Corp.

Cicero - Onondaga County

Syracuse Label Co., Inc.

Liverpool - Onondaga County

Syracuse University

Syracuse - Onondaga County

Vicks Lithograph & Printing

Yorkville - Oneida County

Watson Bowman Acme Corp.

Amherst - Erie County

New York State Electric & Gas – Service Territory

Agri-Mark, Inc.

Chateaugay - Franklin County

Barry Steel Fabrication, Inc.

Lockport - Niagara County

Bison Foods, dba Upstate Niagara Cooperative, Inc.

West Seneca - Erie County

Caron Fine Wood Products, Inc.

Champlain - Clinton County

Manitoba Corporation

Lancaster - Erie County

Merritt Machinery, LLC

Lockport - Niagara County

Upstate Niagara Cooperative, Inc.

Buffalo - Erie County

Orange and Rockland – Service Territory

IBM (Sterling Forest facility)

Sterling Forest - Orange County

Rochester Gas & Electric – Service Territory

Flower City Printing, Inc.

Rochester - Monroe County

IBM (Rochester facility)

Rochester - Monroe County

3. Other Business

4. 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

4) St. Lawrence/FDR Power Plant, 830 Barnhart Island, Massena, NY

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

Kenneth Schoetz, Chairman (Niagara, NY)

James A. Duncan, Member (Niagara, NY)

Bernard P. McGarry, Member (Albany, NY)

Eugene L. Nicandri, Member, (Massena, NY)

Also in attendance were:

Anne B. Cahill Corporate Secretary, NYPA

Joseph C. Carline Assistant General Counsel, NYPA

James H. Yates Senior Vice President, - Marketing & Economic Development, NYPA

James F. Pasquale Director – Marketing Analysis and Administration

Michael Saltzman Director – Media Relations, NYPA

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

Mary Jean Frank Associate Corporate Secretary, NYPA

Lorna Johnson Assistant Corporate Secretary, NYPA

1. Adoption of Minutes

The minutes of the meeting of October 24, 2008 were unanimously adopted.

2. Power for Jobs Extended Benefits

SUMMARY

The members of the Economic Development Power Allocation Board (“EDPAB”) are requested to approve extended benefits for 68 Power for Jobs (“PFJ”) customers as listed in Exhibit “A.”

BACKGROUND

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

The PFJ program originally made 400 megawatts (“MW”) of power available and was to be phased in over three years. As a result of the initial success of the program, the Legislature amended the PFJ statute to accelerate the distribution of the power and increase the size of the program to 450 MW. In May 2000, legislation was enacted that authorized additional power to be allocated under the program. Legislation further amended the program in July 2002.

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

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

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

In 2005, provisions of the approved State budget extended the period PFJ customers could receive benefits until December 31, 2006. Chapter 645 of the Laws of 2006 included provisions extending program benefits until June 30, 2007. Chapter 89 of the Laws of 2007 included provisions extending program benefits until June 30, 2008. Chapter 59 of the Laws of 2008 included provisions extending 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 68 PFJ customers listed in Exhibit “A,” all of which are meeting their job commitments. Collectively, these organizations have agreed to retain more than 52,000 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 Power Authority’s Trustees approve the payment of electricity savings reimbursements to the 68 businesses listed in Exhibit “A.”

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

Central Hudson Gas & Electric – Service Territory

Northeast Solite Corp.

Mount Marion - Ulster County

Con Edison - Service Territory

Beth Israel Medical Center