NEWS

NYPA Trustees Approve Low-Cost Hydropower Allocation to Alita USA Holdings to Build New Facility in Buffalo
Allocation Supports $102 Million Capital Investment Project Creating 172 Jobs

Contact:
Paul DeMichele
(914) 390-8186
paul.demichele@nypa.gov


September 25, 2013

FOR IMMEDIATE RELEASE

WHITE PLAINS—The New York Power Authority (NYPA) Board of Trustees on Tuesday awarded a low-cost hydropower allocation of four megawatts to Alita USA Holdings, a steel manufacturer planning to build a 340,000-square-foot pipe mill in Buffalo. The $102 million project would create 157 jobs at the company’s Western New York facility and another 15 jobs at a new corporate administrative office to be based in New York. 

“Alita USA Holdings would be a welcome addition to Buffalo,” said John R. Koelmel, NYPA chairman and an East Amherst resident. “Western New York is making great strides under the leadership of Governor Cuomo toward advancing economic development, including the manufacturing sector. The substantial capital investments and new jobs from Alita’s pipe mill would be of enormous benefit to the region, and a credit to the coordinated efforts of state and local governments.”

“Niagara’s hydropower is one of the most effective economic development tools for the Buffalo-Niagara region, with tens of thousands of jobs directly tied to the low-cost allocations of power,” said Gil C. Quiniones, NYPA president and chief executive officer. “The plans by Alita for the construction of a new pipe mill plant, in return for the hydropower and other government incentives, are a sign of the significant progress under way through Governor Cuomo’s innovative measures for turning around the area economy.”

In addition to the low-cost hydropower, NYPA, Empire State Development and the Erie County Industrial Development Agency are in the process of developing an incentive package of roughly $10.4 million in grants and tax credits in support of Alita’s Buffalo facility. This includes a $2 million award recently recommended by the Western New York Power Proceeds Allocation Board that the NYPA trustees will consider after a required state environmental review.

"Buffalo's steel-making history is setting the stage for a future success story,” said Empire State Development President, CEO & Commissioner Kenneth Adams. “Alita USA is focusing on this area to locate a $102 million steel manufacturing facility because of the talented workforce, location and infrastructure. Now we are being rewarded with 157 well-paying jobs. 'Steel Jobs Coming to Buffalo'—that's a headline that makes all of Western New York proud.”

“In order to drive the Western New York economy and to keep New York on the map as a national leader, it is important that we bring new companies to the area,” said Senator George D. Maziarz. “Alita will create an estimated 157 jobs in Western New York, and I am pleased of the support they are receiving from the New York Power Authority. A new company creating new jobs is exactly what this region needs to continue its economic development and growth.”

In addition to new permanent jobs once the facility is operational, the capital investments by the company are expected to support numerous construction jobs in the region. Local contractors will be needed for the construction of the mill, the installation of the equipment and the purchase of supplies. Work will also be generated for local electrical, mechanical, hydraulic and machine shop contractors, transport companies and their related fuel, maintenance, and other suppliers.

The low-cost hydropower to Alita will be provided under a seven-year contract, with the allocations drawn from a block of electricity, known as Replacement Power, generated at NYPA’s Niagara Hydroelectric Power Plant.

Under state law, allocations of power to Western New York businesses from the Niagara plant are for firms within a 30-mile radius of the hydroelectric facility, or in nearby Chautauqua County, at a price that is currently more than 40 percent lower than wholesale market electricity in the region. The hydropower is linked to tens of thousands of jobs at more than 100 businesses in the region with a combined payroll of more than $2 billion.

About NYPA:

The New York Power Authority uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. ■ NYPA has been designated as the lead entity via Executive Order 88 by Gov. Andrew M. Cuomo to form a central management and implementation plan to carry out his Build Smart NY plan to reduce energy use by state facilities 20 percent by 2020. ■ NYPA is the nation's largest state public power organization, through the operation of its 16 generating facilities in various parts of New York State, participation in a unique public/private partnership to contract for power from a clean generating plant in Queens, and its operation of more than 1,400 circuit-miles of transmission lines. ■ More than 70 percent of the electricity NYPA produces is clean renewable hydropower. Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the state.■ For more information visit www.nypa.gov or follow us on Twitter @NYPAenergy, Facebook, Instagram, Wordpress, and LinkedIn.




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