July (pdf) - New York Power Authority

July 26, 2011
6. Power for Jobs and Energy Cost Savings
Benefits Programs Compliance Review
SUMMARY
The President and Chief Executive Officer submitted the following report:
“Staff conducted its annual review of job compliance for Power for Jobs (‘PFJ’) and Energy Cost Savings
Benefit (‘ECSB’) program customers. The review compared employment levels reported in the customers’ recent
applications to extend program benefits through June 30, 2012 to contractual job commitments. Eighty one percent
of these customers, or 402 of 498 allocations, were found to be in compliance, with the remaining 96 allocations
found to be non-compliant.
“Upon review of the job compliance for all customers continuing in the programs, staff recommends that
the Trustees take no action at this time to reduce the allocations found to be non-compliant for the PFJ and ECSB
customers, as detailed in Exhibits ‘6-B-1’ and ‘6-B-2.’
BACKGROUND
“The PFJ program provides either power or electricity savings reimbursements to businesses and not-forprofit
corporations that have agreed to retain or create jobs in New York State. Under the program’s requirements,
businesses could have their benefits reduced if they fail to meet their contractual job commitments.
“The ECSB program provides a rate discount to customers participating in the Economic Development
Power, High Load Factor and Municipal Distribution Agency power programs. These businesses may also have
their benefits reduced if they fail to meet their contractual job commitments.
“On April 14, 2011, the Governor signed legislation authorizing a new economic development power
program called ‘Recharge New York’ to begin service on July 1, 2012. The legislation also authorized an extension
of the PFJ and the ECSB programs through June 30, 2012. In light of the desire to minimize disruption in receipt of
program benefits, the legislation required expedited extensions of PFJ and ECSB benefits and deferral of the job
compliance review until after the applicant had been awarded extended benefits.
“At its meeting on April 21, 2011, the Economic Development Power Allocation Board (‘EDPAB’)
recommended that the Authority’s Trustees approve the extension of benefits for 427 PFJ and 86 ECSB program
customers through June 30, 2012, including a recommendation to defer job compliance review until on or before
June 30, 2011.
“The Trustees approved the extension of both the PFJ and ECSB program allocations at their April 22,
2011 meeting. In addition, the Trustees also approved EDPAB’s recommendation to defer the job compliance
review until on or before June 30, 2011.
“Upon request, at its June 27, 2011 meeting, EDPAB allowed more time for a compliance review to be
completed.
DISCUSSION
“Upon extension of the PFJ and ECSB programs, applications were sent to existing PFJ and ECSB
customers. Four hundred and twelve PFJ customers submitted applications to the Authority requesting extension of
their contracts. Fifteen PFJ customers chose to opt out of the program or did not submit an application. The
customers continuing in the program reported a total of 234,150 jobs as compared to 232,182 jobs, an aggregate of
their commitments. Thus, current PFJ participants reported employment levels at 101% of job commitments, in
aggregate.
“All ECSB customers submitted applications to the Authority requesting extension of their allocations and
program benefits. The customers reported a total of 61,306 jobs as compared to 61,451 jobs, an aggregate of its
28