NEWS
NYPA Trustees Approve Low-Cost Power Allocation To Buffalo Firm
Contact:
Paul DeMichele
914-390-8186
paul.demichlele@nypa.gov
December 15, 2011
FOR IMMEDIATE RELEASE
WHITE PLAINS—The New York Power Authority (NYPA) Board of Trustees today approved an allocation of low-cost hydropower to a Buffalo firm to support the company’s capital expansion and creation of 45 new jobs. The power allotment is the latest allocation of hydropower stemming from the Authority’s redoubled efforts under Governor Andrew M. Cuomo for spurring economic development in Western New York.
The trustees approved an allocation of 400 kilowatts (kw) to MOD-PAC CORP., a Buffalo company that produces folding cartons, packaging and printed products for various industries. The allocation comes from a block of electricity known as Expansion Power—one of two large amounts of hydropower produced at the Niagara Power Project that is set aside under New York State law for job-creating businesses on the Niagara Frontier. MOD-PAC currently employs a workforce of 360 at its Buffalo facility.
“NYPA understands the importance of harnessing low-cost hydropower from the Niagara Power Project to help ensure that Niagara Frontier businesses remain competitive and are able to capitalize on opportunities to expand in the region,” said Michael J. Townsend, chairman, NYPA. “This is supportive of the economic development priorities of Governor Cuomo for creating and protecting Western New York jobs through the strategic use of state resources. Thousands of area jobs are directly linked to our hydropower allocations, making the Niagara project a cornerstone for economic development and an indispensable tool for helping to realize the Governor’s vision for revitalizing the region.”
MOD-PAC’s facility is currently isolated from the electric grid (all of its electrical needs are met by an on-site cogeneration plant), so a substantial part of the firm’s $6 million expansion plan is to reconnect to the grid by investing in the necessary electrical infrastructure to support the facility’s current and projected new electric load. MOD-PAC also plans to add a specialized printing press, die-cutters and other production equipment.
“This allocation of Niagara hydropower will help us to keep jobs in Western New York, while at the same time expand our production capacity and employment level while keeping our costs down,” said Dave Lupp, MOD-PAC’s Chief Operating Officer and Chief Financial Officer. “I want to extend our appreciation to Governor Cuomo and the NYPA board for their unyielding support of the efforts of Western New York businesses to strengthen their competitiveness and expand and grow their operations. The allotment of low-cost power to our facility is in keeping with this.”
In 2011 alone, the NYPA trustees have approved the allocation of more than 19,000 kw of Niagara hydropower to create 645 jobs at 14 new or existing Western New York businesses for their total employment of more than 9,000 workers and multimillion dollar capital investments. (One thousand kilowatts, or one megawatt, is enough electricity to meet the needs of 800 to 1,000 typical homes.)
The Niagara project, which is the single largest source of electricity in the state, is directly linked to approximately 32,000 jobs in the Buffalo- Niagara region. When multiplier effects are considered, the 2,441-megawatt project is linked to tens of thousands of additional jobs with other firms that conduct business with the power recipients, and billions of dollars in annual gross regional product.
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 is a leader in promoting energy efficiency, new energy technologies and electric transportation initiatives. ■ It is the nation's largest state public power organization, with 17 generating facilities in various parts of New York State and more than 1,400 circuit-miles of transmission lines. ■ Approximately 80 percent of the electricity it 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, www.nypa.gov.