ECONOMIC DEVELOPMENT POWER
June 27, 2011
Videoconference – 10:00 a.m.
New York Power Authority Offices:
123 Main Street, 16th Floor, White Plains, NY
501 7th Avenue, 9th Floor, New York, NY
30 South Pearl Street – 10th Floor, Albany, NY
St. Lawrence/FDR Power Plant, 830 Barnhart Island, Massena, NY
Empire State Development Corporation, 95 Perry Street, Suite 500, Buffalo, NY
1. Approval of the June 27, 2011 Meeting Agenda
2. Approval of the Minutes of the Regular Meeting of May 24, 2011.
3. Transfers of Industrial Power
4. Other Business
5. 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, 501 7th Avenue, 9th Floor, New York, NY
3) New York Power Authority, 30 South Pearl Street – 10th Floor, Albany, NY
4) St. Lawrence/FDR Power Plant, 830 Barnhart Island, Massena, NY
5) Empire State Development Corporation, 95 Perry Street, Suite 500, Buffalo, NY
The following Members of the Board were present at the following locations:
Kenneth Schoetz, Chairman (Buffalo, NY)
Eugene L. Nicandri, Member, (White Plains, NY)
Robert B. Catell, Member, (New York, NY)
Mary Vanouse, Member, (Oswego, NY) was excused from the meeting
Also in attendance were:
Judith McCarthy First Deputy General Counsel, NYPA
James F. Pasquale Senior Vice President - Marketing & Economic Development, NYPA
Karen Delince Corporate Secretary, NYPA
Vincent Esposito Assistant General Counsel, Legislative & Regulatory Affairs
Michael Huvane Vice President - Marketing, NYPA
Timothy Muldoon Manager – Business Power Allocations & Compliance, NYPA
Dennis Eccleston Vice President Information Technology/Chief Information Officer – Information
Michael Saltzman Director, Media Relations, NYPA
Lorna Johnson Assistant Secretary, NYPA
Chairman Kenneth Schoetz welcomed the Board members and staff to the meeting.
Chairman Schoetz then asked Mr. James Pasquale to report on the annual job compliance review for the Power for Jobs (“PFJ”) and Energy Cost Savings Benefit (“ECSB”) customers.
Mr. James Pasquale said that staff is conducting its review of PFJ and ECSB customers’ job compliance following the Board’s May 24th approval of extensions through June 30th. Staff plans to provide a report to the Board at its July 26th meeting. He also said that there are a significant number of customers not meeting their job compliance. In response to a question from Chairman Schoetz, Mr. Pasquale said that the PFJ and ECSB customers continue to get power and/or rebates from the Authority.
Chairman Schoetz said that he looks forward to reviewing the report.
1. Adoption of the Meeting Agenda
The agenda for the June 27, 2011 meeting was unanimously adopted.
2. Adoption of the Minutes
The Minutes of the Regular Meeting of May 24, 2011 were unanimously adopted.
3. Transfers of Industrial Power
The Members of the Economic Development Power Allocation Board (“EDPAB”) are requested to approve the transfer of power allocations or modification to benefits for three existing customers, as detailed below.
This is a housekeeping item brought routinely to the board. Three companies have requested that the Authority grant approval regarding the transfer or modification to their existing power allocations or associated benefits. One customer has officially changed its name change and is relocating, thus has requested approval to transfer their Power for Jobs (“PFJ”) allocation to the new location. Another customer has requested to transfer a portion of its Economic Development Power allocation (“EDP”) to another of its facilities. The third customer has received approval from the Nassau County Public Utility Agency (“NCPUA”) of an increase of its Municipal Distribution Agency (“MDA”) power allocation. This customer is requesting EDPAB to approve the corresponding increase to the Energy Cost Savings Benefits (“ECSB”) associated with the allocation. Details of the requests are provided below.
EDPAB has approved transfers of this nature in the past.
The proposed transferees are as follows:
Brooklyn Information & Culture Inc., located in Brooklyn, New York, is a non-profit arts organization that presents and produces a wide array of quality contemporary art, encourages performing arts, and provides community media programs. The company has officially changed its name to BRIC Arts Media Bklyn, Inc. (“BRIC”). In addition, the organization will be moving from their existing facility on 647 Fulton Street to a new location at 242 3rd Street. BRIC wishes to transfer their 50 kW PFJ allocation to the new location. After reporting its employment for last year, the organization is in compliance with its job commitment. BRIC agrees to continue honoring all terms and conditions of the existing contract.
Cold Spring Harbor Laboratory (“CSHL”), in Cold Spring Harbor, Nassau County, is a world-leading laboratory in the fields of molecular biology and genetics. The Authority sells MDA power to NCPUA for resale to customers. CSHL receives a 2,200 kW allocation of MDA power that was recently extended, including associated Energy Cost Savings Benefits (“ECSB”) through June 30, 2012. The NCPUA has requested that the Authority approve allocating an additional 800 kW of NCPUA’s unallocated block of MDA power to CSHL, for a total allocation of 3,000 kW of MDA power. Prior to Authority approval, EDPAB is requested to approve an increase in the corresponding ECSB program benefits, and recommend such ECSB benefit increase to the Authority. CSHL is compliant, having reported 945 jobs in its most recent application for 2011 extended benefits above the contract commitment of 864. The company will continue to honor all terms and conditions associated with its ECSB.
J.P. Morgan-Chase (“JPMC”), a large bank and financial services company, has multiple facilities in New York City. The company has requested reallocating a portion of its total allocation amount from its 277 Park Avenue facility to its 383 Madison Avenue location. The company has relocated some operations in the former Bear Stearns facility and wishes to redistribute 2,300 kW to the site to optimally use the EDP allocation. The company has a 24.2 MW EDP allocation, of which it is requesting that 2.3 MW be transferred to the new location. JPMC reported employment of 2,290 jobs and is compliant with their ECSB job commitment. JPMC will to continue to honor the terms and conditions of its EDP and ECSB Extended Benefits contract.
It is recommended that EDPAB approve and recommend the Power Authority Trustees’ approval allocation transfers for two existing customers, as detailed above. It is also recommended that EDPAB approve and recommend the Authority’s approval of the increase of one customers’ Energy Cost Savings Benefits associated with its MDA allocation, as detailed above.
It is recommended that EDPAB approve the transfers as detailed above.
Mr. Michael Huvane provided highlights of staff’s recommendation to the Board. In response to a question from Mr. Robert Catell, Mr. Huvane said that all of the transactions for transfers of power allocations took place within the state of New York. In response to further question from Mr. Catell, Mr. Huvane said that all three customers requesting the transfers are in compliance with their job commitments.
The following resolution was unanimously adopted by members of the Board present.
RESOLVED, That the Economic Development Power Allocation Board hereby authorizes and recommends to the New York Power Authority, the transfer of power allocations for two existing customers and the modification of Energy Cost Savings Benefits associated with one customers’ MDA allocation, as detailed above. All three companies have agreed to continue to honor the terms and conditions of existing contracts with the Authority.
4. Other Business
Recharge New York Program
Mr. Pasquale provided an update on the Recharge New York Program. He said that staff has had discussions with the PSC and IOUs with regards to an agreement on delivery charges. Mr. Pasquale will provide a more detailed report on this issue and the “kick-off” of the Recharge New York Program, at the July 26th Board meeting.
Proposed Board Policy
Chairman Schoetz said that as a follow-up to Mr. Robert Catell’s question at the last Board meeting with regard to the Board policy and procedures, staff has advised that the policy and procedures is being reviewed in light of the recent changes in the law and it should be completed in time for the July 26th Meeting.
5. Next Meeting
The next meeting of the Board is to be determined.