New York Power Authority Trustees Approve ReCharge NY Power Allocations to Two Northern NY Firms
79 Jobs Supported in St. Lawrence County
FOR IMMEDIATE RELEASE
WHITE PLAINS—The New York Power Authority (NYPA) Board of Trustees on Tuesday approved power allocations to two St. Lawrence County firms as part of the latest round of allocations under Governor Andrew M. Cuomo’s ReCharge NY (RNY) program. The low-cost power is expected to leverage an estimated $14.3 million in capital investments and support 79 jobs, 12 of which are going to be created.
“It is of principle importance for economic development efforts to not only create new jobs, but also ensure the retention of existing jobs,” said Gil C. Quiniones, NYPA president and chief executive officer. “The Governor’s ReCharge NY program has been a great success thus far in the North Country and NYPA will continue to work with business and not-for-profit organizations in the region to keep up this significant momentum.”
“As a lifelong resident of the North Country, I am pleased to see the great success of the Governor’s ReCharge NY program in our region,” said Eugene L. Nicandri, a NYPA trustee. “These low-cost power allocations will provide Potsdam Specialty Paper and Riverside Iron greater financial flexibility for their competitive operations.”
Potsdam Specialty Paper is a paper manufacturing facility that will receive 2,116 kilowatts (kW) for a commitment to retain its 67 jobs and invest $14 million dollars into its facility over the next five years. The company manufactures specialty saturated paper grades that are used in the construction, automotive, home decor, and medical industries.
“This power allocation will allow our company to continue its operations in Potsdam, securing our talented workforce and reinforcing our position as a pillar of the local economy for years to come,” said Douglass H. Drumm, operations manager, Potsdam Specialty Paper. “I’d like to extend my thanks to Governor Cuomo and NYPA for their support.”
Riverside Iron in Gouverneur will receive 46 kW to assist in reopening its steel fabrication facility, creating 12 jobs and a $350,000 capital investment (the facility closed in 2012). The firm was recently approved for $200,000 in financing from the St. Lawrence County Industrial Development Agency through loan funds supported by NYPA capital.
“I am thankful to NYPA and the St. Lawrence County IDA for their efforts to help ensure the success of Riverside Iron’s fabrication facility reopening in Gouverneur,” said Eric Tessmer, president of Riverside Iron. “I look forward to providing long-term local job opportunities and re-establishing Riverside as a source of quality miscellaneous metal fabrications.”
This is the ninth round of power allocations under the RNY program, which stems from legislation signed by the Governor in 2011. The program, administered by NYPA, is designed to spur economic development throughout the state by providing low-cost power to businesses and other entities that agree to create or retain jobs.
Including today’s allocations, the Governor’s program has provided approximately 27 megawatts (MW) to 24 business operations and six not-for-profit organizations in Northern New York. (One megawatt equals 1,000 kW and is enough electricity to meet the needs of up to 1,000 typical homes.)
In addition to jobs and capital investment commitments, other evaluation criteria for RNY applications include the significance of the cost of electricity to the overall cost of doing business, the applicant’s risk of closure or curtailing operations, the significance of the applicant’s facility to the local economy, and its commitment to energy efficiency.
RNY offers up to seven-year power contracts. Half of the power under the program—455 MW—is from NYPA’s Niagara and St. Lawrence-Franklin D. Roosevelt hydroelectric power plants, which provide some of the lowest-cost electricity in the state. The remaining 455 MW is economical power secured by NYPA from wholesale market sources.
NYPA, under state law, also provides allocations of low-cost hydropower to Northern New York businesses from the St. Lawrence-FDR Power Project as part of the Power Authority’s Preservation Power program. The power is provided at a price that is currently 40 percent less than wholesale market electricity in the region. Preservation Power allocations currently support hundreds of jobs in St. Lawrence County.
■ The New York Power Authority 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 by 20 percent by 2020. ■ NYPA 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 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 and follow us on Twitter @NYPAenergy, Facebook, Instagram, Wordpress, and LinkedIn.