NYPA Approves New Power for Jobs Allocations to Help Create 290 New Jobs: Completes Current Phase of Governor's Statewide Lower Cost Power Program

Jack Murphy

July 22, 2003


NEW YORKNew York Power Authority Chairman Louis P. Ciminelli announced Tuesday that 290 new jobs will be created and nearly 2,500 existing jobs maintained as part of the latest round of lower-cost allocations from Governor George E. Pataki’s Power for Jobs program. The allocations, to 10 businesses in the Southern Tier, Capital District, Western New York, Mohawk Valley, Finger Lakes and downstate regions, mark the completion of allotments under the current program phase, in connection with legislation the Governor signed last year.

“Governor Pataki’s Power for Jobs program has proven to be a major asset for lowering electricity costs for various enterprises to enhance their competitiveness and protect and create jobs,” said Chairman Ciminelli. “The results speak for themselves, with nearly 300,000 jobs in all regions of the state linked to these allocations, which are especially important now in light of the sluggish national economy.”

Some 600 employers are currently receiving power under the program, administered by the New York Power Authority (NYPA), whose trustees Tuesday approved the most recent allocations, for nearly 7,000 kilowatts (kw).

Nine of the 10 latest recipients are first-time Power for Jobs customers. Among them, and the number of new jobs they pledged, are BAE Systems Controls in Johnson City (Broome County), 163 jobs; Cascades Tissue Group-New York, Inc., Waterford (Saratoga County), 40 jobs; Saint-Gobain, Hoosick Falls (Rensselaer County), 38 jobs; and GRAFCO Industries, LP, Dunkirk (Chautauqua County), 21 jobs. (See attachment for complete list of latest allocations.)

The latest allocations complete the Power Authority’s assignment, through Dec. 31, 2005, of 183,000 kw of power under the current ‘Phase Five’ of Power for Jobs. Governor Pataki first introduced the program in late 1997, with an initial 400,000 kw, for businesses and not-for-profit organizations at risk of reducing or closing their operations or willing to expand. The program was also intended to help bridge the transition to a more competitive market in the electricity industry.

Sold at prices up to 25 percent less than standard market rates, Power for Jobs electricity provides substantial savings to recipients, who are required to meet contractually specified job commitments. To date, customers have achieved an overall average of about 105 percent of their total job commitments.

BAE Systems Controls is a full-service provider of aircraft flight controls and similar equipment for civilian and military markets, with a current work force at its Johnson City manufacturing plant of more than 1,200 jobs. The 163 additional jobs promised in return for 2,000 kw of lower-cost electricity are expected to result from job transfers from an out-of-state BAE facility. The Johnson City plant has operated continuously since 1948.

Cascades Tissue Group’s Waterford plant converts jumbo rolls of industrial towels, manufactured at a nearby sister plant in Mechanicville, into napkins, paper towels and bath and facial tissues. An allocation of 600 kw will help support the company’s plans to upgrade the converting plant and its machinery. Currently, 70 people work there.

St. Gobain, a manufacturer of adhesive tapes, is planning to move an operation in New Haven, Ct., to its plant in Hoosick Falls, for some of the additional jobs the company committed to in return for an allocation of 225 kw. The consolidation will lead to construction of additional space at the Hoosick Falls facility, where 155 people are now employed.

GRAFCO Industries, LP, manufactures plastic containers for various industries, including food, beverage and cosmetics, at various locations around the country. Since mid-2002, the company has spent more than $10 million to renovate its Dunkirk plant, with possible additional investment of $3 million pending further analysis. The 350-kw Power for Jobs allocation is expected to help support the Dunkirk upgrade. Nearly 40 people now work there.

The electricity provided under Power for Jobs is from power NYPA has under contract and competitive market purchases by the Authority.

The New York State Economic Development Power Allocation Board, headed by NYPA Chairman Ciminelli, reviewed Power for Jobs applications on a competitive basis before making recommendations to the Power Authority trustees. The four-member board consists of appointees of the Governor and state legislature.