Programs cutting energy costs for businesses in jeopardy

ALBANY - Two programs that reduce the electric bills of large employers on Long Island and elsewhere will likely end Sunday because of a disagreement between the legislative houses and Gov. David A. Paterson.

More than 500 businesses and charities, with a total workforce of 312,000 people, will be affected by the demise of the Power for Jobs and Energy Cost Savings Benefit programs. They will see substantial increases in their electric costs.

The programs have been endangered before, but Paterson now has vowed not to approve a sixth extension in as many years. He wants the programs made permanent and to hold participating employers accountable for creating jobs.

Lawmakers generally agree with Paterson. But the State Senate and Assembly are deadlocked over an allotment of cheap hydropower set aside for upstate homeowners. Senators want to give that power to companies and use cash to cut residential bills. Assembly members argue that such a change would mean smaller savings for homeowners.

"There is no agreement ... so come Saturday night the benefits are going to lapse," said Thomas Congdon, Paterson's energy czar. "Electric bills will be higher - they could be significantly higher."

The programs, which are run by the New York Power Authority, lapsed last year when a Senate leadership coup blocked action. But the agency continued discounting bills because senators vowed to adopt an extension, which was backed by Paterson.

Congdon said the authority wouldn't do so this year "because we need to keep the pressure on to get it done."

On Long Island, Power for Jobs gives rebates to 35 companies and not-for-profit agencies with 26,773 workers, including the North Shore-Long Island Jewish Health System in Manhasset and Good Samaritan Hospital in West Islip. The Energy Cost Savings program discounts the bills of Barnes & Noble in Westbury, Newsday in Melville, Crescent Duck Farm in Aquebogue and 19 others that together employ 7,877.

The Business Council of New York State Thursday called for immediate action.

The Senate passed legislation last week, 58 to 3 - but it lacks an Assembly sponsor. Sen. Darrel Aubertine (D-Cape Vincent) said he hoped the lower chamber would eventually adopt the bill.

But Assemb. Kevin Cahill (D-Kingston) said treatment of upstate homeowners was "a huge sticking point." An Assembly measure "offers residential customers more than what the governor and Senate do."

Republicans, who lost their Senate power base last year, blasted the inaction of the Democratic-controlled Assembly. Sen. Dean Skelos of Rockville Centre said the programs' suspension would upset business owners and potentially cause some to move elsewhere.