| Issue: |
The PfJ program provides reduced cost power to entities that
make specific commitments regarding job retention and growth. About
700 businesses and not-for-profit organizations have benefited
from the program since 1998. Overall, they account for nearly 300,000
New York State jobs. While the overall Power for Jobs program does
not expire until 12/31/05, many program participants will see their
allocations of lower cost power expire during 2004. Further, under
current law, all program participants will lose their PfJ benefits
by the end of 2005.
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Status:
8/12/04 |
Both houses have approved a PfJ extender bill (see Part T of
S.6059-/A.9559B).
Key provisions:
- PfJ recipients will be reimbursed for any benefits lost due to
contract expirations between March 1 and November 30, 2004;
- as of December 1, 2004, Phase 4 and 5 PfJ recipients can
apply for either a straight contract extension through the end
of 2005, or to participate in the newly created "PfJ savings reimbursement
program," which would also extend benefits through 12-31-05;
- NYPA's financial support of the PfJ program is increased
to $275 million, up from $235 million proposed in the Governor's
Executive Budget.
6/21/04 The Senate introduced and passed a
modified version of the Governor's PfJ bill. S.7601 would
provide an PfJ benefit to those participants whose contract expire
during state fiscal year 2005; however, the duration of this benefit
would not extend past March 31, 2005, and the aggregate benefit
would be limited to $10 million, potentially resulting in a reduced
benefit or duration for some participants.
The Assembly has not yet taken final action of A.11645; it is
still in Assembly Rules as of this AM.
Based on input from Business Council members, we believe that — all
other things being equal -- the rebate approach would likely provide
the greater net benefits, and greater price certainty, to Power
for Jobs recipients.
6/17/04 The Assembly introduced
legislation (A.11645/Tonko) that
would extend the Power for Jobs program in its current form through
December 31, 2008, and would allow the Power Authority to extend
the contracts of all current Phase 4 and Phase 5 participants for
up to 36 addition months, up to that date. Further, the bill would
retroactively provide PfJ savings to Phase 4 recipients whose contracts
expire before the effective date of this bill. Under this legislation,
the program would primarily be funded using New York Power Authority
resources.
6/11/04 The Governor included a
limited Power for Jobs program extender in his Executive Budget
proposal (S.
6059/A.9559, Section T). This proposal would extend Phase 4
and Phase 5 contracts that expire prior to the end of the Fiscal
2005, with these extensions lasting until March 31, 2005. Under
the budget proposal, these extensions would also be done through
a rebate program, rather than the current Power for Jobs power
acquisition program.
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