Minutes of the Annual Meeting of the Power - New York Power ...

April 24, 2007
6. Municipal and Rural Cooperative Economic
Development Program – Allocation to the Town of Massena
SUMMARY
The President and Chief Executive Officer submitted the following report:
“The Trustees are requested to approve an allocation of power under the Municipal and Rural Cooperative
Economic Development Program (‘Program’) to the Town of Massena (‘Town).’
BACKGROUND
“The 1991 amendment to the power sales agreement between the Authority and the Municipal and Rural
Cooperative Systems reserved 108,000 kW of power for economic development in the systems’ service territories.
As of January 30, 2007, 38,640 kW have been allocated.
“Power from this block can be allocated to individual systems to meet the increased electric load resulting
from eligible new or expanding businesses in their service area. The recommended allocations under the Program
comprise half hydropower and half incremental power. Under the guidelines established for the Program, an
allocation to a system should meet a target number of new jobs per MW. The guidelines provide that for businesses
new to a system, the jobs-per-MW ratios are considered on a case-by-case basis. For projects involving existing
businesses, the number of jobs per MW is the number of new jobs as compared to the level of employment prior to
the expansion. Specifically, for companies employing 100 or less, the target ratio is 25 jobs per MW; for companies
employing between 101 and 250, the ratio is 50; for companies employing between 251 and 500, the ratio is 75 and
for companies employing more than 500, the ratio is 100 jobs per MW.
DISCUSSION
“The Town has submitted an application for power under the Program for consideration by the Trustees.
“An application has been submitted by the Town on behalf of Curran Renewable Energy, LLC (‘Curran
Renewable’). Curran Renewable is a privately held company incorporated in the State of New York. The company
will be in the business of manufacturing wood pellets for wood stoves and other heating sources. The company will
be the principal supplier of this new and growing market in the North Country.
“Curran Renewable considered opening this new manufacturing facility in Canada, but the potential
advantages of reduced power cost and the strategic location of two buildings in Massena will allow the company to
compete more efficiently and at the same time bring much-needed additional jobs to the community.
“Curran Renewable is planning to purchase two buildings from the St. Lawrence County IDA currently
vacant and suitable for their needs without alterations, for approximately $1.7 million, invest $5.4 million on
machinery and equipment and $2.9 on site work, start up-cost and fees. The estimated cost of the project is expected
to total $10.0 million. The new facility is expected to produce 100,000 tons of wood pellets annually and provide
for approximately 23 full-time jobs over the next three years, adding revenue to the local economy and resulting in
25 jobs per MW of hydropower. The estimated electrical monthly peak load for the facility is 1,840 kW. It is
recommended that the Trustees approve an allocation of 1,840 kW, of which half is hydropower, for the Town on
behalf of Curran Renewable Energy, LLC.
“The Municipal Electric Utilities Association Executive Committee supports the recommended allocations
to the Town.
“The recommended allocations under the Program comprise half hydropower and half incremental power.
In accordance with the Authority’s marketing arrangement with the municipal and cooperative customers, the
hydropower will be added to the recipient system’s contract demand at the time a project becomes operational. The
hydropower earmarked for this Program is presently sold to the municipal and cooperative customers on a
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