Assembly Passes Cahill Bill to Permanently Reform Power for Jobs

Power Solutions provides businesses, residents the flexibility to choose ways to lower energy costs, while creating jobs in New York

May 25, 2010

Albany – The Assembly has passed legislation, authored by Energy Committee Chair Kevin Cahill (D-Ulster Dutchess) that would create a permanent replacement for the state’s beleaguered Power for Jobs Program. “Power Solutions” (A.11172) is a ground breaking approach to help businesses meet energy needs and create jobs. The measure is a sustainable, predictable, long-term economic development program that encourages capital investment by New York businesses.

"We heard time and again from businesses and economic development leaders that the current year to year approach is not working," said Assemblymember Cahill. "The Power Solutions Program provides the long term energy stability businesses need to commit to New York."

The Power Solutions Program will provide significant technical and financial assistance to help meet the current and future energy needs of businesses. It recognizes individual companies have different demands and provides the flexibility necessary to design benefit packages accordingly. In order to participate in the program, businesses would be required to develop and commit to solid, long range plans for meeting energy efficiency benchmarks, capital investment goals and job creation and retention targets.

"The Power Solutions Program will give the Power Authority the flexibility they need to help companies effectively address their energy challenges," said Assemblymember Cahill. "Keeping New York's energy costs competitive is essential to our efforts to attract and retain businesses in the global marketplace."

There are many similarities between this proposal and the ones put forth by the Senate and Governor Paterson. However, one point where they diverge significantly is around the question about what to do with benefits from low- cost hydroelectric power currently going to residences. Unlike the Governor and the Senate’s plan to redirect these benefits away from residential customers and give it to businesses, Power Solutions allows ratepayers to voluntarily participate in energy saving programs or keep their current benefits via reduced charges to monthly bills.

“Our legislation protects residential ratepayers by allowing them to keep their current benefits if they so choose. It gives businesses and residential customers the ability to pick their program.” Assemblymember Cahill said. “Power Solutions presents an option to consumers who would likely benefit from conservation programs run by their utility that provides them with the know how and resources to conserve a considerable amount of electricity and lower their bills for years to come. I look forward to finally sitting down with the Governor and the Senate to negotiate a final bill”

The Power Solutions Program would include:

• Resources initially totaling 483 MW (the historic peak of Power For Jobs) and would increase should any power become available from the voluntary residential efficiency program - 100 MW would be set aside for small businesses and not-for-profits.
• Contracts for benefits up to seven years.
• Flexible Benefits in the form of a power allocation, electric bill credit, energy efficiency products, programs and services, or any combination thereof.
• Requirements that all participants to undergo New York Power Authority funded energy audits and other assessments within two years of receiving an award.
• Common sense criteria to be considered in determining awards under this program that would include, among other things:
  • the significance of the cost of electricity to overall cost of doing business
  • the extent to which an award will result in new capital investment
  • the number of jobs that would be created or retained
  • whether applicant is at risk of closure due to high electricity costs
  • the significance of the facility to the economy of the area in which it is located
  • the extent to which applicant has invested in energy efficiency measures and/or onsite power generation
  • the extent to which the applicant has previously received benefits under other power-related programs and prior performance under these programs
  • the extent to which the applicant would make jobs available to persons eligible for services under the federal Workforce Investment Act

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