ECONOMIC DEVELOPMENT POWER

ECONOMIC DEVELOPMENT POWER

ALLOCATION BOARD

MINUTES

September 27, 2010

Videoconference – 1:30p.m.

New York Power Authority Offices:

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

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

1. Approval of the Minutes of the June 16, 2010 Regular Meeting and the Minutes of the Special Meeting of August 17, 2010.

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

A.Stein Meat Products, Inc.

Brooklyn – Kings County

American Ballet Theater

New York – New York County

Beth Israel Medical Center

New York – New York County

Columbia University – Trustees

New York – New York County

Diller-Quaile School of Music

New York – New York County

Edison Price Lighting, Inc.

New York – New York County

Elaine Kaufman Cultural Center

New York – New York County

Greater Jamaica Development Corp.

Jamaica – Queens County

Home for Contemporary Theater & Art

New York – New York County

Lincoln Center for the Performing Arts

New York – New York County

Liz Claiborne, Inc.

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 Museum of Contemporary Art

New York – New York County

Norampac New York City, Inc.

Maspeth – Queens County

Pepsi Cola Bottling Company

College Point – Queens County

The Joyce Theater Foundation, Inc.

New York – New York County

The Museum of Modern Art

New York – New York County

Verizon

New York – New York County

Long Island Power Authority - Service Territory

Enzo Clinical Labs, Inc.

Farmingdale – Suffolk County

John T. Mather Memorial Hospital

Port Jefferson – Suffolk County

North Shore Health System

Manhasset – Nassau County

National Grid - Service Territory

Albany International Corp.

Albany – Albany County

Albany International Corp.

Homer – Cortland County

Albany Molecular Research, Inc.

Albany – Albany County

AMRI Rensselaer, Inc.

Rensselaer – Rensselaer County

Associated Brands, Inc.

Medina – Orleans County

Beechnut Nutrition Corp.

Canajoharie – Montgomery County

C. R. Bard, Inc.

Queensbury - Warren County

Cascades Tissue Group

Waterford - Saratoga County

Clarkson University

Potsdam - St. Lawrence County

Cooper Hand Tools

Cortland - Cortland County

Cooper Industries

Syracuse - Onondaga County

CWM Chemical Services, LLC

Model City - Niagara County

Diemolding Corporation

Canastota - Madison County

Distributor Data Forms, Inc.

Cortland - Cortland County

Fiber Glass Industries Inc.

Amsterdam - Montgomery County

Fitzpatrick & Weller, Inc.

Ellicottville - Cattaraugus County

G L & V Sandy Hill Inc.

Hudson Falls - Washington County

Gehring Tricot Corp.

Dolgeville - Herkimer County

Helmont Mills

St. Johnsville - Montgomery County

Interface Solutions, Inc.

Fulton - Oswego County

Kilian Manufacturing Corporation

Syracuse - Onondaga County

Lewis County General Hospital

Lowville - Lewis County

Mayer Bros. Apple Products, Inc.

West Seneca - Erie County

Mohawk Paper Mills

Cohoes - Albany County

Nathan Littauer Hospital & Nursing Home

Gloversville - Fulton County

Paul Bunyan Products, Inc.

Preble - Cortland County

PCI Paper Conversions, Inc.

Syracuse - Onondaga County

Power Pallet

Schenectady - Schenectady County

Precision Systems Mfg., Inc.

Liverpool - Onondaga County

Quad Graphics, Inc.

Saratoga Springs - Saratoga County

Queensboro Farm Products, Inc.

Canastota - Madison County

Robison & Smith, Inc.

Gloversville - Fulton County

RSA Solutions Inc.

Amherst - Erie County

Schilling Forge, Inc.

Syracuse - Onondaga County

Spray Nine Corporation

Johnstown - Fulton County

St. Joseph's Hospital Health Center

Syracuse - Onondaga County

Stone Construction Equipment Inc.

Honeoye - Ontario County

Syracuse Label Co., Inc.

Liverpool - Onondaga County

Syracuse University

Syracuse - Onondaga County

Vicks Lithograph & Printing

Yorkville - Oneida County

Welch Allyn Data Collection Inc.

Skaneateles Falls - Onondaga County

New York State Electric & Gas – Service Territory

Air-Flo Manufacturing

Prattsburgh - Steuben County

Audio Sears

Stamford - Delaware County

Boreal Water Collection, Inc.

Kiamesha Lake - Sullivan County

BorgWarner Automotive Morse TEC

Ithaca - Tompkins County

Corning, Inc.

Corning - Steuben County

Egli Machine, Inc.

Sidney - Delaware County

Endicott Interconnect Technologies

Endicott - Broome County

IEC Electronics Corp.

Newark - Wayne County

Kraft Foods – Walton

Walton - Delaware County

Norampac Industries

Lancaster - Erie County

Vail Ballou Press, Inc.

Binghamton – Broome County

Rochester Gas & Electric – Service Territory

Flower City Printing, Inc.

Rochester - Monroe County

International Business Machines – Rochester

Rochester - Monroe County

XLI Corporation

Rochester - Monroe County

3. Motion to Conduct an Executive Session

4. Motion to Resume Meeting in Open Session

5. Other Business

6. Next Meeting

A regular meeting of the Economic Development Power Allocation Board was held via videoconference 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, 10^th Floor, Albany, NY

The following Members of the Board were present at the Albany location:

Kenneth Schoetz, Chairman

Eugene L. Nicandri, Member

Robert B. Catell, Member

Mary Vanouse, Member

Also in attendance were:

Terryl Brown Executive Vice President & General Counsel, NYPA

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

Paul Finnegan Senior Vice President Public, Government & Regulatory Affairs, NYPA

Karen Delince Corporate Secretary, NYPA

Vincent Esposito Assistant General Counsel, Legislative & Regulatory Affairs, NYPA

Michael Huvane Vice President - Marketing, NYPA

Andrew Newman Special Counsel, General Counsel Law, NYPA

Angela Graves Deputy Secretary, NYPA

MaryJean Frank Associate Secretary, NYPA

Lorna Johnson Assistant Secretary, NYPA

Michael Saltzman Director – Media Relations, NYPA

Timothy Muldoon Manager – Business Power Allocations & Compliance, NYPA

Dennis Eccleston Chief Information Officer, Information Technology, NYPA

Scott Fein Partner – Whiteman, Osterman & Hanna LLP

1. Adoption of Minutes

The Minutes of the Regular Meeting of June 16, 2010 and the Minutes of the Special Meeting of August 17, 2010.

2. Power for Jobs Program – Extended Benefits

SUMMARY

The Members of the Economic Development Power Allocation Board (EDPAB”) are to recommend that the Power Authority’s Trustees (“Trustees”) approve extended benefits for 79 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. An “extender” law was enacted in 2010 modifying the expiration of the program to June 2, 2010. In August 2010, Chapter 311 of the laws of 2010 included provisions extending the program benefits until May 15, 2011.

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 79 PFJ customers listed in Exhibit “A”. Collectively, these organizations have agreed to retain more than 79,000 jobs in New York State in exchange for the rebates. These recommended payments are for rebate periods through May 2010, associated with last year’s extended benefits legislation and prior to the program’s recent extension. All PFJ rebate customers are eligible for payments through the program’s new expiration date of May 15, 2011.

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 79 business listed in Exhibits “A”.

Mr. James Pasquale presented the highlights of staff’s recommendations to the Trustees. In response to a question from Judge Eugene Nicandri, Mr. Pasquale said that despite the expiration of the former Power for Jobs (“PFJ”) program on June 2, 2010, the investor-owned utilities had cooperated with Authority staff to ensure that there were no gaps in service for the PFJ customers.

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 Gas & Electric - Service Territory

Northeast Solite Corp.

Mount Marion – Ulster County

Con Edison - Service Territory

A.Stein Meat Products, Inc.

Brooklyn – Kings County

American Ballet Theater