NYPA Board Approves Low-Cost Niagara Allocations for 64 New Jobs at Two Western New York Companies

Michael Saltzman


May 24, 2005 


WHITE PLAINS—Low-cost hydropower will help create a total of 64 new jobs at two companies investing nearly $15 million on major expansions in Western New York.

The New York Power Authority (NYPA) Trustees Tuesday approved allocations from NYPA’s Niagara Power Project to Delaco Kasle Steel in Buffalo and Transcedar Industries in Niagara Falls. The power will come from a block of 250,000 kilowatts (kw) known as expansion power, which helps support more than 43,000 jobs at over 100 companies in the region together with a second, larger block of Niagara Power called replacement power.

 “Once again, we’re demonstrating the enormous value of the Niagara Power Project for economic development in Western New York,” said Louis P. Ciminelli, NYPA chairman. “The considerable savings from the project’s allocations give area businesses an important leg up in their ability to hold down their production costs and stay competitive.”

Ciminelli, who lives in Buffalo, noted that the Western New York Advisory Group, consisting of NYPA, Niagara Mohawk, the Empire State Development Corp., and the Buffalo Niagara Enterprise, recommends the new allocations of hydropower. In late 2003, the members of the group signed a Memorandum of Understanding for allocations of available Niagara power on a continuous basis.

Since the agreement, the Power Authority has made allocations to a total of 31 Western New York companies, including the two approved Tuesday at NYPA’s May trustees’ meeting at its White Plains office.

The latest allocations leave a total of 106,000 kw of Niagara power remaining for assignment to Western New York businesses agreeing to create and protect jobs.

Delaco Steel, which is building a 150,000-square-foot facility, will receive 750 kw, in return for creating 54 new jobs.

The Michigan-based steel-processing company is investing $14.1 million for starting up the manufacturing operation in Buffalo. The new facility will process steel blanks used for various auto body parts. Steel coils are cut into various shaped pieces, or blanks, for fenders, hoods and other exterior auto parts.

Transcedar Industries is undertaking a 15,000-square-foot expansion of its Niagara Falls facility, which manufactures automotive thermostats and oil caps.

The company will receive 100 kw of expansion power, in return for doubling its work force of 10.

The 2,400,000-kw Niagara Project, in Lewiston, about five miles downstream from Niagara Falls, is one of the largest generating plants in the country. It provides some of New York State’s lowest cost power, along with a second NYPA hydroelectric project, the St. Lawrence-Franklin D. Roosevelt Project in Massena.