ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

MINUTES

 

February 22, 2010

Video Conference  – 9:00 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

                                Empire State Development Corp., 95 Perry Street, Suite 500, Buffalo, NY

                                King Video Conference Center, 14 Suntree Place, Melbourne, FL

 

                                               

1.                   Approval of the Minutes of the January 26, 2010 Regular Meeting and the

        February 2, 2010 Special Meeting.

 

2.                   Power for Jobs Extended Benefits Recommendations for

                Electricity Savings Reimbursements                                               

 

A.               COMPANIES IN JOB COMPLIANCE

 

Central Hudson - Service Territory

 

Northeast Solite Corporation

Mount Marion – Ulster County

 

Con Edison - Service Territory

 

Greater Jamaica Development Corp Jamaica – Queens County   Memorial Sloan Kettering Corp New York – New York County   Mount Sinai Medical Center New York – New York County   New Museum of Contemporary Art New York – New York   Norampac, New York City Maspeth – Queens

North General Hospital New York – New York County   NYU Medical Center New York- New York   Pepsi Cola Bottling Company College Point – Queens   The Brooklyn Historical Society Brooklyn – Kings County

 

Long Island Power Authority - Service Territory

 

American Technical Ceramics Huntington Station - Suffolk County   Good Samaritan Hospital West Islip – Suffolk County   Kleer-Fax Inc Amityville – Suffolk County

Silver Lake Cookie Co. Islip – Suffolk County   Ultimate Precision Metal Farmingdale – Suffolk County

National Grid - Service Territory

 

CWM Chemical Services, LLC Model City Niagara County   Diemolding Corporation Canastota – Madison County   Edward John Noble Hospital Gouverneur – St. Lawrence County   Fiber Glass Industries Amsterdam – Montgomery County   Fitzpatrick & Weller, Inc Ellicottville – Cattaraugus County   GL & V Sandy Hill Inc Hudson Falls – Washington County   Higbbe Inc. Syracuse – Onondaga County   Interface Solutions, Inc Fulton – Oswego County   Intertek Testing Services Cortland – Cortland County   Luvata Buffalo Buffalo – Erie County   Lydall Manning Green Island – Albany County

Meloon Foundries, Inc Syracuse – Onondaga County   Nathan Littauer Hospital & Nursing Home Gloversville – Fulton County   Natrium Products, Inc Cortland – Cortland County   Power Pallet Schenectady – Schenectady County   Revere Cooper Products Rome – Oneida County   Spray Nine Corporation Johnstown – Fulton County   St. Joseph’s Hospital Health Center Syracuse – Onondaga County   Stone Construction Equipment, Inc Honeoye – Ontario County   Syracuse Plastics Liverpool – Onondaga County   Syracuse University Syracuse – Onondaga County   Turbine Engine Components Technologies Whitesboro – Oneida County

 

New York State Electric & Gas

 

Merritt Machinery, LLC Lockport – Niagara County

 

Rochester Gas & Electric

 

International Business Machines Rochester – Monroe 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, 123 Main Street, White Plains, NY

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

3)       Empire State Development Corp., 95 Perry Street, Suite 500, Buffalo, NY

4)       King Video Conference Center, 14 Suntree Place, Melbourne, FL

 

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

Kenneth Schoetz, Chairman (Buffalo, NY)

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

Robert B. Catell, Member, (New York, NY)

 

 

Also in attendance were:

James F. Pasquale               Senior Vice President - Marketing & Economic Development, NYPA

Karen Delince                      Corporate Secretary, NYPA

MaryJean Frank                  Associate Corporate Secretary, NYPA

Lorna Johnson                     Assistant Secretary, NYPA

Timothy Muldoon               Manager – Business Power Allocations & Compliance, NYPA

Michael Huvane                  Director – Business Muni & Coop Marketing & Economic Development, NYPA

Michael Saltzman               Director – Media Relations, NYPA

Dennis Eccleston                 Chief Information Officer, Information Technology, NYPA

 

 

 

 

 

 

 

 

1.             Adoption of Minutes

The minutes of the Regular Meeting of January 26, 2010 and the minutes of the Special Meeting of February 2, 2010 were unanimously adopted.

 

2.             Power for Jobs Program – Extended Benefits

 

SUMMARY

 

The Members of the Economic Development Power Allocation Board (“EDPAB”) are asked to recommend that the Power Authority’s Trustees (“Trustees”) approve extended benefits for 39 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.  Chapter 217 of the Laws of 2009 included provisions extending the program benefits until May 15, 2010.

 

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 payments (rebates) to the 39 PFJ customers are listed in Exhibit “A,” all of which are meeting their job commitments.  Collectively, these organizations have agreed to retain more than 51,000 jobs in New York State in exchange for the rebates. The rebate program will be in effect until its May 15, 2010 sunset date.

 

 

 

 

 

RECOMMENDATION

 

It is requested that the Economic Development Power Allocation Board recommend that the New York Power Authority’s Trustees approve the payment of electricity savings reimbursements to the 39 businesses listed in Exhibit “A.”

 

Mr. James Pasquale presented the highlights of staff’s recommendations to the Board.  Responding to a question from Mr. Robert Catell, Mr. Pasquale said that the Power Authority’s Trustees had decided that due to the current economic downturn, Power for Jobs customers that are not meeting their job numbers will not be penalized.  In response to a question from Chairman Kenneth Schoetz, Mr. Pasquale said that, while no bills related to extending or replacing the Power for Jobs and Energy Cost Savings Benefits programs have yet been introduced in the Legislature, the Assembly, Senate and Governor’s Office are all working on various versions of such a bill.  A draft Assembly bill would expand the number of MW available.  It also would allow hydropower now sold to the three upstate investor-owned utilities for the benefit of rural and domestic (“R&D”) customers to be phased into the new program.  The impact on residential customers would be mitigated by energy efficiency programs provided for in the bill.  Mr. Pasquale added that business groups throughout the State support the R&D block being used for economic development purposes.  Mr. Pasquale added that any new legislation enacted will more than likely include a provision for extending the current programs beyond their May 15, 2010 sunset date.  In response to a question from Judge Eugene Nicandri, Mr. Pasquale said that the R&D power consists of hydropower from both the Niagara and the St. Lawrence plants that is sold to National Grid, New York State Electric and Gas Corporation and Rochester Gas and Electric Corporation.  The R&D power is blended with the utilities’ own power, resulting in an average $6 monthly discount on the R&D customers’ utility bills. 

 

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:

 

 

Central Hudson - Service Territory

 

Northeast Solite Corporation

Mount Marion – Ulster County

 

 

 

 

 

 

Con Edison - Service Territory

 

Greater Jamaica Development Corp Jamaica – Queens County   Memorial Sloan Kettering Corp New York – New York County   Mount Sinai Medical Center New York – New York County   New Museum of Contemporary Art New York – New York   Norampac, New York City Maspeth – Queens

North General Hospital New York – New York County   NYU Medical Center New York- New York   Pepsi Cola Bottling Company College Point – Queens   The Brooklyn Historical Society Brooklyn – Kings County

 

Long Island Power Authority - Service Territory

 

American Technical Ceramics Huntington Station - Suffolk County   Good Samaritan Hospital West Islip – Suffolk County   Kleer-Fax Inc Amityville – Suffolk County

Silver Lake Cookie Co. Islip – Suffolk County   Ultimate Precision Metal Farmingdale – Suffolk County

National Grid - Service Territory

 

CWM Chemical Services, LLC Model City Niagara County   Diemolding Corporation Canastota – Madison County   Edward John Noble Hospital Gouverneur – St. Lawrence County   Fiber Glass Industries Amsterdam – Montgomery County   Fitzpatrick & Weller, Inc Ellicottville – Cattaraugus County   GL & V Sandy Hill Inc Hudson Falls – Washington County   Higbbe Inc. Syracuse – Onondaga County   Interface Solutions, Inc Fulton – Oswego County   Intertek Testing Services Cortland – Cortland County Luvata Buffalo Buffalo – Erie County   Lydall Manning Green Island – Albany County

Meloon Foundries, Inc Syracuse – Onondaga County   Nathan Littauer Hospital & Nursing Home Gloversville – Fulton County   Natrium Products, Inc Cortland – Cortland County   Power Pallet Schenectady – Schenectady County   Revere Cooper Products Rome – Oneida County   Spray Nine Corporation Johnstown – Fulton County   St. Joseph’s Hospital Health Center Syracuse – Onondaga County   Stone Construction Equipment, Inc Honeoye – Ontario County   Syracuse Plastics Liverpool – Onondaga County Syracuse University Syracuse – Onondaga County   Turbine Engine Components Technologies Whitesboro – Oneida County

 

New York State Electric & Gas

 

Merritt Machinery, LLC Lockport – Niagara County

 

Rochester Gas & Electric

 

International Business Machines Rochester – Monroe 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 217 of the Laws of 2009; and be it further

 

                RESOLVED, That the Board recommends to the Power Authority of the State of New York the 39 applications for extended benefits recommendations for electricity savings reimbursements discussed herein totaling 37,349 kW for the period through May 15, 2010.