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July 26, 2011 5. Annual Review of Hydropower Allocation Job Compliance SUMMARY The President and Chief Executive Officer submitted the following report: “Staff conducted the annual review of hydropower allocation job compliance covering the reporting period from January through December 2010. The Trustees are requested to take no action regarding 27 customers holding 36 allocations that were not meeting job commitments, as described in Section I, and as set forth in Exhibit ‘5-A-2.’ The Trustees are also requested to approve reductions to allocations for three companies as described in Section II, and as set forth in Exhibit ‘5-A-3.’ BACKGROUND “Each year staff performs a review of all in-service hydropower allocation contracts for compliance with agreed-upon job commitment levels. The contracts contain a customer commitment to retain and add a specific number of jobs. For compliance evaluation, customers are required, by contract, to report the monthly employment numbers for calendar year 2010 by March 1, 2011. “If the reported twelve-month average employment level is below the compliance threshold of 90% of the job commitment (or below 80% of the 2-year average for ‘vintage’ customers, i.e., those having allocations prior to 1988), the Authority may reduce that customer’s power allocation proportionately. DISCUSSION “In 2010, the Authority had 123 hydropower customers holding 217 Replacement Power (‘RP’), Expansion Power (‘EP’) and Preservation Power (‘PP’) allocation contracts. Of these, a total of 104 customers held 189 contracts that required the customers to report job levels for 2010. The 189 contracts and allocation commitments reviewed by staff represent total power allocations of 1,048 MW and total employment commitments of 30,274 jobs. In the aggregate, these customers reported actual employment of 32,114 jobs. This represents 106% of the total job commitment for hydropower customers reporting in 2010. “For the year 2010, a total of 137 of the 189 contracts reviewed were found to be compliant. These compliant contracts are held by 73 companies. Additionally, there are 11 companies with 12 contracts that, although reporting employment below their total commitment, contractually have more time to attain the commitment levels. These companies, included for information purposes, have newer allocations that are still within the time-frame allowed per contract to create the new jobs committed to when the allocations were awarded. These twelve contracts, together with the 137 compliant contracts, comprise 79% of the allocations reviewed and are listed in Exhibit ‘5-A-1.’ “Nevertheless, about 21% of the allocations reviewed were not meeting job commitments. Specifically, 30 customers with 40 contracts reported actual 2010 job levels below the compliance threshold. The main cause of this under-performance, as described by nearly every customer, was the continued effects of the economic downturn which began in 2008. During 2010, many customers were again faced with the difficulty of meeting their job commitments while trying to cope with the lasting effects of the 2008 – 2009 global financial crisis and national recession. Although some industries and companies experienced improving conditions in 2010, the businesses that did not meet job commitment levels cited continued challenges, including the loss of business stemming from decreased sales and demand, as well as, in some cases, increased costs for raw materials, labor and regulatory requirements. As the economy has struggled to grow, as evidenced by the persistently high national unemployment rate, so have non-compliant customers struggled to increase employment, as detailed in Section I and II and listed in Exhibit ‘5-A-2’ and ‘5-A-3.’ “Staff recommends the Trustees take no action regarding 27 non-compliant customers holding 36 allocations, as described in Section I and as set forth in Exhibit ‘5-A-2.’ Staff also recommends that the Trustees approve reductions to allocations as described in Section II and set forth in Exhibit ‘5-A-3.’ 18
July 26, 2011 Section I Non-Compliant Allocations to Continue with No Change Buffalo Newspress Inc., Buffalo, Erie County Allocation: 200 kW of EP Jobs Commitment: 149 jobs Background: Buffalo Newspress Inc. (‘Buffalo Newspress’), founded in 1979, prints advertising inserts, brochures and weekly newspapers. Although an award-winning company, it operates in a declining industry. For the past year, Buffalo Newspress averaged 113.1 jobs, which is 75.9% of its contractual commitment and down 5 jobs from the previous year’s average. During the 2008-2009 recession, the company experienced a drop in business of nearly 30% which resulted in significant layoffs. During 2010, Buffalo Newspress saw improved sales volume as business stabilized and began to turn around, however, not yet to the degree to increase hiring. Recommendation: Staff recommends that the Trustees take no action at this time. C & S Wholesale Grocers, Inc., Lancaster, Erie County Allocation: 550 kW of EP Jobs Commitment: 682 jobs Background: C & S Wholesale Grocers, Inc. (‘CSWG’) provides warehousing and distribution services to supermarket chains, independent grocers and military facilities across the nation. In 2010, CSWG averaged 583.8 jobs, or 85.6% of its contractual commitment. The company is below its job commitment due to the continued effects of, and slow recovery from, the recession which had a significant impact on employment levels in 2009. CSWG’s 2010 average was 57 jobs higher than the previous year’s average. It is important to note that the Board approved a reduction to CSWG’s job commitment to 560 jobs for the extended term (2013 – 2020) during last year’s WNY contract extension initiative. Recommendation: Staff recommends that the Trustees take no action at this time. CertainTeed, Buffalo, Erie County Allocation: 3,100 kW of EP Jobs Commitment: 157 jobs Background: CertainTeed Corporation (‘CertainTeed’), a wholly-owned subsidiary of the Saint–Gobain company, is a vinyl fence, deck and railing manufacturer. In 2010, CertainTeed averaged 120.3 jobs, or 76.6% of its contractual commitment. The company was directly impacted by the challenging economic conditions of the building industry, experiencing a significant reduction in demand for its products over the last several years. The company continues investing in research and development and capital equipment at its Buffalo facility and expects to increase employment as sales volume increases. It is important to note that the Board approved a reduction to CertainTeed’s job commitment to 113 jobs for the extended term (2013 – 2020) during last year’s WNY contract extension initiative. Recommendation: Staff recommends that the Trustees take no action at this time. Coyne Textile Services, Buffalo, Erie County Allocation: 350 kW of EP Jobs Commitment: 93 jobs Background: Coyne Textile Services, (‘CTS’) is a family-owned business that provides textiles rental products (work uniforms, shop floor mats, etc.) and laundering services. For the past year, CTS averaged 40.5 jobs, or 43.5% of its contractual commitment. This is a slight decrease from the previous year. CTS was unable to increase its headcount last year citing the difficult economy and decline in its customer base. The company recently implemented a growth plan, certifying workers at its Buffalo location, to be more attractive to food-based customers 19
Page 1 and 2: MINUTES OF THE REGULAR MEETING OF T
Page 3 and 4: July 26, 2011 Minutes of the Regula
Page 5 and 6: July 26, 2011 Introduction Chairman
Page 7 and 8: July 26, 2011 a. Approval of the Mi
Page 9 and 10: July 26, 2011 “Following a review
Page 11 and 12: July 26, 2011 3. a. Report of the P
Page 13 and 14: July 26, 2011 b. Report of the Chie
Page 15 and 16: July 26, 2011 4. Proposed Expansion
Page 17 and 18: July 26, 2011 average of 15.1 new j
Page 19: July 26, 2011 RESOLVED, That the Ch
Page 23 and 24: July 26, 2011 Recommendation: Staff
Page 25 and 26: July 26, 2011 Niagara LaSalle Corpo
Page 27 and 28: July 26, 2011 The Carriage House Co
Page 29 and 30: July 26, 2011 RESOLVED, That the Ch
Page 31 and 32: July 26, 2011 commitments. Thus, cu
Page 33 and 34: July 26, 2011 7. Increase in Hydroe
Page 35 and 36: July 26, 2011 (f) Use of the RSR fo
Page 37 and 38: July 26, 2011 “The proposed actio
Page 39 and 40: July 26, 2011 RESOLVED, That the Se
Page 41 and 42: July 26, 2011 work, is capable of c
Page 43 and 44: July 26, 2011 “On May 24, 2011, n
Page 45 and 46: July 26, 2011 any and all actions a
Page 47 and 48: July 26, 2011 “The window replace
Page 49 and 50: July 26, 2011 11. Amended and Resta
Page 51 and 52: July 26, 2011 13. Amendments to the
Page 53 and 54: July 26, 2011 15. Motion to Conduct
Page 55 and 56: July 26, 2011 17. Election of Actin
Page 57 and 58: July 26, 2011 19. Next Meeting The
Page 59 and 60: July 26, 2011 EXHIBITS For July 26,
Page 61 and 62: July 26, 2011- NYPA Trustees’ Mee
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Page 65 and 66: Exhibit “A” Economic Developmen
Page 67 and 68: served by the 51 municipal and coop
Page 69 and 70: Generation revenue in June was $176
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In June, NYPA finalized a position
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GLOSSARY 1 Net Generation - The ene
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as a single regional compliance mar
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Report of the Chief Financial Offic
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RESULTS OF OPERATIONS Net Income Si
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RESULTS OF OPERATIONS 140 120 100 8
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RESULTS OF OPERATIONS 180 O&M Expen
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CASH AND LIQUIDITY INVESTMENT PORTF
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DEBT Unhedged Variable Rate 12% Deb
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Exhibit 1: Average August to Decemb
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New York Power Authority Financial
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New York Power Authority Exhibit "4
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APPLICATION SUMMARY Expansion Power
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July 26, 2011 Exhibit “4-B-1” P
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WHEREAS, the Customer has completed
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R. Replacement Power (or RP) is 445
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the Service Tariff shall govern. In
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X. Transition of Allocation to WNY
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XVII. Waiver A. Any waiver at any t
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SCHEDULE A TO AGREEMENT FOR THE SAL
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United States Department of Labor (
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APPENDIX TO SCHEDULE B Base Employm
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The POWER AUTHORITY OF THE STATE OF
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D. Electric Service is the Firm Pow
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C. The Contract Demand for the Cust
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Charges associated with the Allocat
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B. Except where otherwise herein sp
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AGREED: TRY-IT DISTRIBUTING CO., IN
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SCHEDULE B TO AGREEMENT FOR THE SAL
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eduction of the Contract Demand to
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July 26, 2011 Exhibit “5-A-1” C
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July 26, 2011 Exhibit “A-2” Com
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New York Power Authority Preliminar
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New York Power Authority 2011 Preli
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Discussion The attached preliminary
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Added to the O&M for ratemaking pur
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The capital costs (both debt- and e
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2012 to 2014 costs, respectively. T
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The proposed demand and energy rate
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NEW YORK POWER AUTHORITY HYDROELECT
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Table 1 EMBEDDED COSTS FOR ANCILLAR
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Table 3 EMBEDDED COSTS FOR BLACK ST
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Table 5 EMBEDDED COSTS FOR OPERATIN
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TABLE OF CONTENTS Page ARTICLE I DE
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“Commercial Paper Rate Mode” me
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“Term Rate Mode” means the mode
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Chairman, President and Chief Execu
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Beneficial Owners to receive paymen
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(l) any other provisions deemed adv
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306. Delivery of Bonds. Except as o
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(a) The General Resolution has not
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APPENDIX A [FORM OF BONDS] No. 2011
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To the extent and in the manner per
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IN WITNESS WHEREOF, POWER AUTHORITY
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FORM OF ASSIGNMENT ASSIGNMENT FOR V
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POWER AUTHORITY OF THE STATE OF NEW
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Implementation of any refunding wil
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under the Securities Exchange Act o
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executing officer deems in his or h
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EXHIBITS Exhibit 1: Amended and Res
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$___,___,000 Series 2011 A Bonds SE
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[This page intentionally left blank
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Rate Covenant......................
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Registration of the 2011 Bonds.....
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through purchased power (see ‘‘
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Trust Estate The Trust Estate consi
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and such pledge shall be subordinat
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Optional Redemption The 2011 Bonds
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casualty and life insurance compani
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“OID” is the excess of (i) the
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The specific nature of the informat
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3. The 2011 Bonds have been duly an
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4. To facilitate subsequent transfe
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circumstances, compliance with this
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year in which the change is made sh
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(vii) modifications to rights of Bo
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IN WITNESS WHEREOF, the parties hav
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APPENDIX D LITIGATION Land Claims (
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the costs of such pending claims, o
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PART 2 of the OFFICIAL STATEMENT of
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TABLE OF CONTENTS FOR PART 2 THE AU
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PART 2 of the OFFICIAL STATEMENT of
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CERTAIN FINANCIAL AND OPERATING MAT
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500-MW Plant and Cessation of Opera
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enefits from cash from operations.
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The Authority may issue additional
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Enterprise Risk management program,
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needs at any point in time. Unless
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NYISO Capacity Requirements Matters
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equirements of certain municipal el
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(a) Industrial Power Programs The 2
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withdrawn by the Authority on Augus
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improved energy efficiency and clea
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development purposes within St. Law
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approved to receive Awards, with to
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transmission facilities tariff on f
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THE AUTHORITY’S FACILITIES Genera
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eservoir, and power transformation
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(6) Out-of-State Power Allocations
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SCPPs To meet potential capacity de
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east from the St. Lawrence Project
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to predict whether any such bills o
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esponsibility for purchasing energy
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Commission in the coming months.[up
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could potentially result in signifi
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discussion does not purport to be c
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whether negotiable or non-negotiabl
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Operating Expenses means the Author
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Qualified Swap. Rating Agency means
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eimbursement are equal to the amort
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Capital Fund The General Resolution
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(General Resolution, Secs. 801, 802
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APPENDIX 2 BACKGROUNDS OF THE AUTHO
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Eugene L. Nicandri, Trustee Judge E
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Francine Evans, Executive Vice Pres
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Jordan Brandeis, Senior Vice Presid
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Exhibit “12-A” July 26, 2011 GO
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c. Advise the Board of Trustees on
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GOVERNANCE COMMITTEE CHARTER Exhibi
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d. Periodically review and as neces
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Exhibit “13-A” Editing Note: Th
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ARTICLE VII - FISCAL MANAGEMENT 7 S
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Section 2. Annual Meeting The annua
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as he or she may deem necessary in
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are carried out for and reported to
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and shall report on and make recomm
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Section 4. Capital Expenditure Plan
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Exhibit “13-B" July 26, 2011 BY-L
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ARTICLE VII - FISCAL MANAGEMENT 9 S
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Section 2. Annual Meeting The annua
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the general supervision of the busi
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policies of the Authority, supervis
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members of the Board of Trustees. A
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Section 5. Expenditure Authorizatio
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DATE: 07/26/2011 REVISION: 0 POWER
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DATE: 07/26/2011 REVISION: 0 POWER
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July (pdf) - New York Power Authority

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