ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

 

MINUTES

 

February 23, 2009

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

                                                King Reporting Service, Melbourne, Florida

                                               

1.             Approval of the Minutes of the Meeting of December 15, 2008.

 

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

 

A.                  COMPANIES IN JOB COMPLIANCE 

 

Con Edison - Service Territory

 

92nd Street YM-YWHA

New York - New York County

 

American Ballet Theater

New York - New York County

 

American Cancer Society

New York - New York County

 

Columbia University – Trustees

New York - New York County

 

Empire Merchants LLC

Astoria - Queens County

 

IBM - Westchester

Armonk - Westchester County

 

Kingsbrook Jewish Medical Center

Brooklyn - Kings County

 

Lincoln Center for the Performing Arts

New York - New York County

 

Long Island Jewish Medical Center

Manhasset - Nassau County

 

Memorial Sloan-Kettering Cancer Center

New York - New York County

 

Mount Sinai Medical 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

 

NYU Medical Center

New York - New York County

 

Pepsi Cola Bottling Company

College Point - Queens County

 

TanaSeybert, LLC

New York - New York County

 

The Brooklyn Historical Society

Brooklyn - Kings County

 

The Joyce Theater Foundation, Inc.

New York - New York County

 

The Museum of Modern Art

New York - New York County

 

 

Long Island Power Authority - Service Territory

 

American Technical Ceramics

Huntington Station - Suffolk County

Kleer-Fax Inc.

Amityville - Suffolk County

 

Silver Lake Cookie Co.

Islip - Suffolk County

Southern Container Corp.

Deer Park - Suffolk County

 

 

National Grid - Service Territory

 

3M

Tonawanda - Erie County

 

Applied Energy Solutions

Caledonia - Livingston County

 

Atofina Chemicals, Inc.

Geneseo - Livingston County

 

Carville National Leather Corp.

Johnstown - Fulton County

 

Clarkson University

Potsdam - St. Lawrence County

 

Cooper Hand Tools

Cortland - Cortland 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

 

Distributor Data Forms, Inc.

Cortland - Cortland County

 

Dodge-Graphic Press Inc.

Utica - Herkimer County

 

Edward John Noble Hospital

Gouverneur - St. Lawrence County

 

Fitzpatrick & Weller, Inc.

Ellicottville - Cattaraugus County

 

G L & V Sandy Hill Inc.

Hudson Falls - Washington County

Intertek Testing Services

Cortland - Cortland County

 

Keystone  Corporation

Buffalo - Erie County

 

Kilian Manufacturing Corporation

Syracuse - Onondaga County

 

Lewis County General Hospital

Lowville - Lewis County

 

Lydall Manning

Green Island - Albany County

 

Meloon Foundries, Inc.

Syracuse - Onondaga County

 

Mohawk Paper Mills

Cohoes - Albany County

 

Natrium Products, Inc.

Cortland - Cortland 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

 

Schneider Packing Equipment

Brewerton - Onondaga County

 

Specialized Packaging Radisson, Inc.

Baldwinsville - Onondaga County

 

Spray Nine Corporation

Johnstown - Fulton County

 

Syracuse Casting Sales Corp.

Cicero - Onondaga County

 

Syracuse China Company

Syracuse - Onondaga County

 

Syracuse Label Co., Inc.

Liverpool - Onondaga County

Syracuse University

Syracuse - Onondaga County

 

Vicks Lithograph & Printing

Yorkville - Oneida County

 

 

New York State Electric & Gas – Service Territory

 

A. T. Reynolds & Sons, Inc.

Kiamesha Lake - Sullivan County

 

Agri-Mark, Inc.

Chateaugay - Franklin County

 

Audio Sears

Stamford - Delaware County

 

Corning (Erwin Plant)

Corning - Steuben County

 

Currier Plastics, Inc.

Auburn - Cayuga County

 

Endicott Interconnect Technologies

Endicott - Broome County

 

Merritt Plywood Machinery, Inc.

Lockport - Niagara County

 

Vail Ballou Press, Inc.

Binghamton - Broome County

 

 

Orange and Rockland – Service Territory

 

IBM – Sterling Forest

Sterling Forest – Orange County

 

 

Rochester Gas & Electric – Service Territory

 

Flower City Printing, Inc.

Rochester - Monroe County

 

IBM – Rochester

Rochester - Monroe County

XLI Corporation

Rochester - Monroe County

 

 

 

B.            COMPANIES NOT IN JOB COMPLIANCE 

 

Long Island Power Authority – Service Territory

 

Commercial Envelope Manufacturing Corp.

Deer Park – Suffolk County

 

 

 

3.             Economic Development Plan for use of Industrial Incentive Awards

 

4.             Other Business

 

5.             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)       King Reporting Service, Melbourne, Florida

 

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

Kenneth Schoetz, Chairman (Albany, NY)

Bernard P. McGarry, Member (Albany, NY)

Eugene L. Nicandri, Member, (Melbourne, Florida)

 

 

Also in attendance were:

Gil Quiniones                        Chief Operating Officer, NYPA

Terryl B. Clemons                Executive Vice President & General Counsel, NYPA

 Anne B. Cahill                     Corporate Secretary, NYPA

Joseph Carline                      Assistant General Counsel , NYPA                  

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

Paul Finnegan                       Senior Vice President Public & Government Affairs, NYPA        

James F. Pasquale                Director – Marketing Analysis and Administration, NYPA

Angela Graves                      Deputy Corporate Secretary, NYPA

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 December 15, 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 75 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 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 the 75 PFJ customers, 74 of which are meeting their current job commitment and are listed in Exhibit “A”. However, one customer reported actual job numbers below their contractual commitment we are recommending that this customer have their allocation reduced proportionately to their job shortfall where appropriate. This customer is listed in Exhibit “B”. Collectively, these organizations have agreed to retain more than 90,000 jobs in New York State in exchange for rebates. The rebate program will be in effect until June 30, 2009, the programs’ 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 75 business listed in Exhibits “A” and “B”.

 

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

 

92nd Street YM-YWHA

New York - New York County

 

American Ballet Theater

New York - New York County

 

American Cancer Society

New York - New York County

 

Columbia University – Trustees

New York - New York County

 

Empire Merchants LLC

Astoria - Queens County

 

IBM - Westchester

Armonk - Westchester County

 

Kingsbrook Jewish Medical Center

Brooklyn - Kings County

 

Lincoln Center for the Performing Arts

New York - New York County

 

Long Island Jewish Medical Center

Manhasset - Nassau County

 

Memorial Sloan-Kettering Cancer Center

New York - New York County

 

Mount Sinai Medical 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

 

NYU Medical Center

New York - New York County

 

Pepsi Cola Bottling Company

College Point - Queens County

 

TanaSeybert, LLC

New York - New York County

 

The Brooklyn Historical Society

Brooklyn - Kings County

 

The Joyce Theater Foundation, Inc.

New York - New York County

 

The Museum of Modern Art

New York - New York County

 

 

Long Island Power Authority - Service Territory

 

American Technical Ceramics

Huntington Station - Suffolk County

 

Kleer-Fax Inc.

Amityville - Suffolk County

 

Silver Lake Cookie Co.

Islip - Suffolk County

 

Southern Container Corp.

Deer Park - Suffolk County

 

 


 

National Grid - Service Territory

 

3M

Tonawanda - Erie County

 

Applied Energy Solutions

Caledonia - Livingston County

 

Atofina Chemicals, Inc.

Geneseo - Livingston County

 

Carville National Leather Corp.

Johnstown - Fulton County

 

Clarkson University

Potsdam - St. Lawrence County

 

Cooper Hand Tools

Cortland - Cortland 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

 

Distributor Data Forms, Inc.

Cortland - Cortland County

 

Dodge-Graphic Press Inc.

Utica - Herkimer County

 

Edward John Noble Hospital

Gouverneur - St. Lawrence County

 

Fitzpatrick & Weller, Inc.

Ellicottville - Cattaraugus County

 

G L & V Sandy Hill Inc.

Hudson Falls - Washington County

 

Intertek Testing Services

Cortland - Cortland County

 

Keystone  Corporation

Buffalo - Erie County

 

Kilian Manufacturing Corporation

Syracuse - Onondaga County

 

Lewis County General Hospital

Lowville - Lewis County

 

Lydall Manning

Green Island - Albany County

 

Meloon Foundries, Inc.

Syracuse - Onondaga County

 

Mohawk Paper Mills

Cohoes - Albany County

 

Natrium Products, Inc.

Cortland - Cortland 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

 

Schneider Packing Equipment

Brewerton - Onondaga County

 

Specialized Packaging Radisson, Inc.

Baldwinsville - Onondaga County

 

Spray Nine Corporation

Johnstown - Fulton County

 

Syracuse Casting Sales Corp.

Cicero - Onondaga County

 

Syracuse China Company

Syracuse - Onondaga County

 

Syracuse Label Co., Inc.

Liverpool - Onondaga County

 

Syracuse University

Syracuse - Onondaga County

 

Vicks Lithograph & Printing

Yorkville - Oneida County

 

 

New York State Electric & Gas – Service Territory

 

A. T. Reynolds & Sons, Inc.

Kiamesha Lake - Sullivan County

 

Agri-Mark, Inc.

Chateaugay - Franklin County

 

Audio Sears

Stamford - Delaware County

 

Corning (Erwin Plant)

Corning - Steuben County

 

Currier Plastics, Inc.

Auburn - Cayuga County

 

Endicott Interconnect Technologies

Endicott - Broome County

 

Merritt Plywood Machinery, Inc.

Lockport - Niagara County

 

Vail Ballou Press, Inc.

Binghamton - Broome County

 

 

Orange and Rockland – Service Territory

 

IBM – Sterling Forest

Sterling Forest – Orange County

 

 

Rochester Gas & Electric – Service Territory

 

Flower City Printing, Inc.

Rochester - Monroe County

 

IBM – Rochester

Rochester - Monroe County

XLI Corporation

Rochester - Monroe County

 

 

B.COMPANIES NOT IN JOB COMPLIANCE 

 

Long Island Power Authority – Service Territory

 

Commercial Envelope Manufacturing Corp.

Deer Park – Suffolk 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 75 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 74,723 kW until June 30, 2009.


 

 

 

 

 

 

 

 

 


 

3.                   Economic Development Plan – Use of Net Revenues Produced by Sale of Expansion Power

 

SUMMARY

 

                The Economic Development Power Allocation Board (“EDPAB”) is requested to approve an Economic Development Plan (“Plan”) for 2008 submitted by the New York Power Authority (Authority”) for use of industrial incentive awards pursuant to Section 188 of the Economic Development Law (“EDL”). 

 

BACKGROUND

 

                Section 1005 of the Public Authorities Law (“PAL”), as amended by Chapter 32 of 1987, directs the Authority to identify net revenues produced by the sale of Expansion Power (“EP”) and, further, to identify an amount of such net revenues to be used solely for Industrial Incentive Awards.  These awards are to be made in conformance with a Plan, covering all such net revenues. The Authority is to submit Plans annually to EDPAB and approved by EDPAB pursuant to EDL.

 

                Net revenues are defined by Section 1005 as any excess of revenues properly allocated to the sales of EP over costs and expenses properly allocated to such sales. 

               

In connection with approval of an application for power submitted on behalf of Chase Manhattan Bank, EDPAB approved a resolution on December 1, 1988 which concluded that the available industrial incentive awards be used for the purpose of assisting Power Authority efforts to limit future Fitzpatrick production rate increases for all industrial, business, and Economic Development Power customers of the plant.  Further, the Board recommended that future Boards act affirmatively on any economic development plan submitted to it subsequently by the Authority to the extent it provides for such use of industrial incentive awards.

 

The Authority approved five-year programs in 1990, 1996 and 2001 and a one-year program in 2006 and 2007 under which EP net revenues were to be dedicated to helping maintain stable industrial rates. 

 

At their meeting of December 16, 2008, the Trustees of the Authority approved a one year plan that provides for the use of net revenues from the sale of Expansion Power which support the rates of the business customers served under power programs associated with the Power Authority’s former James A. Fitzpatrick Nuclear Power Plant (the "Fitzpatrick Power Programs"). These programs include the High Load Factor, Economic Development, and Municipal Distribution Agency power programs. The EDPAB previously approved Plans submitted annually by the Authority for 1996 through 2006 that provided for such use of the net revenues.  Through calendar year 2006, the Authority has reported net revenues cumulating to $128.54 million.

 

DISCUSSION

 

                Allocations of EDP have been a useful economic development tool.  EDPAB has recommended allocations associated with the creation or retention of more than 94,000 jobs, totaling 417 MW, to date.  The costs of providing EDP are greater than the revenues produced by such sales.  In order to continue to market this power on a competitive basis consistent with the aim of the legislation creating EDP programs, the rates for industrial power must be kept low enough to be of sufficient economic incentive for industries to locate or expand in New York State.

 

                In December 2006, the Temporary State Commission on the Future of New York State Power Programs for Economic Development recommended numerous changes in the form and administration of the Authority’s EDP programs.  Any such changes would require legislation.  Moreover, the Power for Jobs (“PFJ”) and Energy Cost Savings Benefit (“ECSB”) programs will end on June 30, 2009.  The ECSB awards go to the same customers that benefit from current Industrial Incentive Award rate relief.  Thus, pending clarification on the future of these programs, it is appropriate to again propose extensions of the Industrial Incentive Awards for one year instead of the usual five years.

 

In calendar year 2007, net revenues of $8.039 million were produced from the sale of Expansion Power. It is recommended that the Board approve the use of the 2007 Expansion Power net revenues towards the cost of serving the former FitzPatrick customers from the marketplace.

 

RECOMMENDATION

 

It is recommended the Power Allocation Board approve the Economic Development Plan submitted by the Authority, which provides for the use of net revenues produced in 2007 from the sale of Expansion Power to support rates to Industrial Power Program customers for one year as described herein.

 

                Mr. James Pasquale presented the highlights of staff’s recommendations to the Board.  In response to a question from Chairman Kenneth Schoetz, Mr. Pasquale said that the Economic Development Plans are developed on a year-to-year basis because the Power for Jobs and Energy Cost Savings Benefits programs have been approved by the State Legislature on a year-to-year basis for the last several years.  Responding to another question from Chairman Schoetz, Judge Eugene Nicandri said that the Power Authority’s Trustees would be discussing the future of the Authority’s economic development power programs very soon.  Mr. Bernard McGarry requested that staff look into alternative ways to use these funds, particularly if a specific business may need some special help.  Responding to a question from Judge Nicandri, Mr. Pasquale said that the Power Authority may recommend alternatives to the Board.  Judge Nicandri said that a more flexible approach to the plan would be helpful if the net result would be the preservation or creation of jobs.  He said he would also support an investigation of such an alternative.  Mr. Pasquale pointed out that the Board was being asked to approve the 2008 Economic Development Plan today and that staff would be coming back to the Board for approval of the 2009 Plan.

Following consideration of such applications, the Members of the Board present voted unanimously to approve the Economic Development Plan.

WHEREAS, section 1005 of the Public Authorities Law authorizes the Power Authority of the State of New York to identify an amount of the net revenues produced by the sale of Expansion Power which shall be used for industrial incentive awards; and

 

WHEREAS, such industrial incentive awards must be made in conformance with an Economic Development Plan submitted by the Authority and approved by the Board pursuant to Section 188 of the Economic Development Law; and

 

WHEREAS, the Board, on December 1, 1988, endorsed the use, to the extent necessary, of available industrial incentive awards for the purpose of assisting Authority efforts to limit future rate increases for Fitzpatrick Power Program customers; and

 

                 


 

WHEREAS, the Board, on December 1, 1988, recommended that any Economic Development Plan submitted by the Authority in the future be approved to the extent it provides for such use of industrial incentive awards; and

 

WHEREAS, the Authority has approved an Economic Development Plan for 2001 that provides for the use of net revenues from the sale of Expansion Power to support rates for Industrial Power Program customers and further, has authorized the submission of such Plan to the Board for its approval;

 

WHEREAS, the Authority has approved an Economic Development Plan for 2007 that provides for the use of net revenues from the sale of Expansion Power to support rates for Industrial Power Program customers and further, has authorized the submission of such Plan to the Board for its approval;

 

NOW THEREFORE BE IT RESOLVED, That the Board hereby determines that the Economic Development Plan for 2007 which is submitted by the Authority, and its implementation is consistent with the criteria and requirements provided for in Sections 184 and 185 of the New York Economic Development Law and in Part 370 of Title 21 of the Official Compilation of Codes, Rules and Regulations of the State of New York; and be it further

 

RESOLVED, That the Power Allocation Board hereby approves such Plan providing for the use of net revenues from the sale of Expansion Power to support rates for Industrial Power Program customers, in accordance with the attached memorandum.                                         

 

 

 


 

4.             Other Business

 

            Judge Nicandri thanked Ms. Anne Cahill for her help and cooperation in her role as Corporate Secretary to the Power Authority. 

                Chairman Schoetz noted the contributions and dedication of Mr. James Duncan, who recently resigned from the Board after many years of service, saying that his efforts would certainly be missed.  Mr. McGarry said that Mr. Duncan had served with great distinction and that he would miss him and Judge Nicandri joined in those sentiments.  

 

 

 

 

 


 

5.             Next Meeting

 

                The next meeting of the Board is to be determined.