Albany - After months of public hearings and roundtable discussions held in all corners of the state, Assembly Energy Committee Chair Kevin Cahill (D-Ulster, Dutchess), introduced the "Power Solutions Program", a groundbreaking approach designed to help businesses meet their energy needs. The new program will unleash the energy of our low cost economic development power programs by providing up to 1,100 Megawatts of electricity benefits for responsible businesses to make energy efficient jobs and opportunities for New Yorkers.

"I am committed to businesses that are committed to New York. We should do all we can to retain the anchors of our communities and attract new ventures," said Assemblymember Cahill. "We heard time and again from businesses and economic development leaders that the current year to year approach was not working. The Power Solutions Program gives businesses the long term energy stability they need to grow their operations and create new good paying jobs."

"With New Yorkers currently paying among the highest energy prices in the nation, it is crucial that tools for making energy more affordable such as the "Power Solutions Program" be available. It will make an impact in several ways by improving economic development, employment levels and effect decisions to retain, attract or expand businesses. This will result in opportunity for more stability. This measure will also streamline the coordination process between state agencies and businesses which will save time and enhance an organizations efficiency," said Assemblyman Dennis Gabryszak (D - Cheektowaga).

Power Solutions is a sustainable, predictable, long-term economic development program for businesses and not-for-profits. The proposal will protect and create jobs and encourage new capital investment by New York businesses. Assemblymember Cahill's legislation will significantly reform the long languishing Power for Jobs program that fails to promote energy efficiency and has not extended benefits to new businesses in recent years. Power for Jobs expires on May 15th, 2010.

The Power Solutions Program provides significant, stable, technical and financial assistance to help meet the current and future energy needs of businesses. It recognizes that individual companies have different needs and provides them flexibility in designing a plan to receive benefits. A solid, long range plan for meeting energy efficiency benchmarks, capital investments, job creation and retention is required in order to receive benefits. A business must also demonstrate their importance to the economic vitality of a community.

The cost of electricity has a significant effect on economic development, employment levels and decisions to retain attract or expand businesses. The New York Power Authority (NYPA) administers several economic development programs designed to curb energy costs for businesses, not-for-profits and manufacturers. The Power Solutions Program will be coordinated by NYPA, which has a proven track record in protecting and helping create hundreds of thousands of jobs throughout the state.

"This program is key to revitalizing New York's economy. It will help businesses prosper by improving their productivity and competitiveness," said Assemblymember Cahill. "The Power Solutions Program represents a significant enhancement of the Power for Jobs program by giving the Power Authority more tools to work with to help businesses create new jobs across the state."

Power for Jobs was first enacted as a temporary measure to ease the transition into a deregulated energy market, Since then, the legislature has acted to extend these programs on a year to year basis for the last five years. These extensions, while maintaining benefits for current participants, are closed to any new businesses. Moreover, the uncertainty of year to year extensions provides little incentive for businesses to invest in their New York operations. Power for Jobs also limits the ability of the Power Authority to plan ahead and better utilize their resources to administer the programs more effectively.

Highlights of the Power Solutions Program:

Mutual Long Term Commitment: Businesses repeatedly expressed a need for long-term contracts in order to commit to investments and job creation. The Power Solutions Program provides for contracts of up to seven years with a mid-contract compliance review to determine if the business will be eligible to apply for a subsequent award.

Flexibility: Participants have different needs. Some need a direct and steady allocation of cheap power to operate their energy intensive business. Some need market discounts to be competitive. For others, energy efficiency or the ability to generate their own electricity is the key. Power Solutions gives us that flexibility.

Energy Efficiency: The existing programs have no requirement that participants use our precious energy resources efficiently. Power Solutions will require businesses to undergo energy audits to identify improvements and then work to make to achieve those efficiencies where cost effective.

The current low cost power set aside for "Rural and Domestic" customers will be transformed into an energy efficiency program, assuring those residential participants of savings at least equal to what they are receiving now. Unlike the current program, the savings will grow year after year, forever.

Meanwhile, an additional 150 megawatts of that set aside power will be transitioned into the Power Solutions program, creating new jobs and opportunities for New Yorkers.

Improved Standards: Currently, the main emphasis of the programs is on the number of jobs created or retained. While still a component of the of the new program, Power Solutions also takes into account the total payroll, capital investment, impact on the regional economy and coordination with the state and local economic development efforts. Capital investment is key. If a company is willing to commit to significant investment in their facilities they are making a long term commitment to keeping jobs in our state.

Accountability: There will be a thorough performance review provisions included in the contracts. Participation in programs will be overseen by NYPA and ESDC, assuring better coordination with the full range of New York's economic development tools.