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GOVERNOR SPITZER ANNOUNCES EXTENSION OF KEY ENERGY PROGRAMS

Governor Eliot Spitzer today announced that he has signed legislation that will continue low-cost power programs that are linked to creating or retaining approximately 375,000 jobs across New York State. The Governor signed legislation extending the Power for Jobs Program, and a second initiative, the Energy Cost Saving Benefits (ECSB) program, both administered by the New York Power Authority (NYPA).

“Programs such as Power for Jobs provide a springboard to job growth and help hundreds of businesses retain their competitive edge,” said Governor Spitzer. “While I support the extension of these critical programs for another year, I believe we must advance a comprehensive long-term energy agenda to address the state’s very real energy challenges.”

Senate Majority Leader Joseph L. Bruno said: “The Power for Jobs program has been an indispensable part of our efforts to provide low-cost energy resources to upstate businesses so that they can create and maintain good paying jobs for New Yorkers. It is clear, however, that we need to develop an improved approach that will provide greater certainty to businesses through predictable multiyear low-cost energy contracts. In this fashion, businesses can plan and with greater confidence, invest in our communities, particularly upstate where these jobs are a vital part of our economy. This extender will allow for continued important economic development and investment in upstate, while also serving as a bridge as we develop comprehensive long-term energy strategies for the future.”

Assembly Speaker Sheldon Silver said: “Reasonably priced electricity is the key to boosting the economies of the state’s many struggling communities and growing jobs, and keeping and attracting new businesses. While this one-year extender of the low-cost power program is not the multiple-year agreement we hoped for, with this legislation, at least businesses will be able to count on this power for 12 more months.”

Senator James W. Wright, Chairman of the Senate Energy Committee, said: “The Power for Jobs program has been an important tool in providing manufacturers and other businesses with low cost power and, in turn, protecting thousands of jobs across the state. It is abundantly clear that New York's businesses need low-cost, reliable power, and I look forward to continuing to work with the Governor and Assembly to create an improved, long-term program. Until that time, this legislation ensures that current recipients of these programs continue to receive benefits. I am pleased have sponsored legislation to extend this program.”

The Power for Jobs program, which was created in 1997, supports some 270,000 jobs at approximately 525 businesses and not-for-profit organizations throughout the state. The program was due to expire on Friday, June 30. The legislation signed by the Governor will allow current program participants to extend their contracts through June 30, 2008, assuming they continue to comply with the job retention and creation criteria of the program.

Under the Power for Jobs program, NYPA is authorized to allocate up to 483 MW of power to participating businesses. Participants receive benefits either through a cash rebate from NYPA to offset their electricity costs or through a 1.7-cent-per-kilowatt-hour discount on utility delivery rates. Utilities are reimbursed for lost revenue through state tax credits.

The ECSB program supports three other power programs administered by NYPA (Economic Development, High Load Factor, and Municipal Distribution Agency Power programs) for qualified businesses. The programs are linked to 105,000 jobs. Financial support from the ECSB program would have expired on June 30 without new legislation.