NYPA Approves Hydropower Allocations for
Companies in Tonawanda, Buffalo and Lockport
January 31, 2006
FOR IMMEDIATE RELEASE
UTICA—The New York Power Authority
(NYPA) Trustees Tuesday approved low-cost hydropower allocations from the
Niagara Project for four Western New York manufacturers to create about 70
jobs while protecting more than 3,300 existing positions.
The new allocations, totaling up to
6,000 kilowatts, are for Goodyear Dunlop Tires North America, Ltd,
Tonawanda; FMC Corp., Tonawanda; Ford Motor Co., Buffalo; and Allegheny
Technologies Inc., Lockport.
“We’re determined to maximize the job
benefits of the Niagara Project’s available power for Western New York,”
said Timothy S. Carey, who was named NYPA’s president and chief executive
officer at a meeting here today. “Governor Pataki keenly appreciates the
value of the low-cost hydropower to the region’s economy, and we’re doing
everything we legally can to take full advantage of it to spur investment
and jobs here.”
Carey noted that Niagara’s power is sold
at a fraction of market electricity prices, with more than 43,000 jobs at
over 100 Western New York companies linked to the current allocations from
The allocations for Goodyear Dunlop and
FMC will come from a block of energy known as replacement power. Ford and
Allegheny Technologies will benefit from a smaller block known as expansion
power. Both industrial hydropower programs are reserved for businesses
within a 30-mile radius of the project.
Goodyear Dunlop, with a current work
force of approximately 1,400, will create 17 jobs as $19 million is invested
to increase plant production in Tonawanda. The facility will receive a 1,000
kw allocation for an expansion involving equipment purchases and
7,800-square feet of additional manufacturing space.
FMC, which manufactures diversified
chemical products, is undertaking a nearly $3 million capital project, to be
supported by an allocation of 2,500 kw. The company is relocating a
microbiology laboratory from New Jersey and a hair-care blending operation
from Arizona as part of a multi-phased expansion of its Tonawanda facility.
This will lead to 25 new jobs, in addition to the current 142 workers.
“We greatly appreciate the support that
Governor Pataki and the Power Authority are giving us for bringing
out-of-state jobs to our Tonawanda plant,” said James J. Scerra, FMC
Corporation Manufacturing Finance Manager. “This is a good example of
government working in partnership with business to promote a stronger
The NYPA trustees approved up to 1,500
kw for the Ford plant in Buffalo. The company’s investment of $215 million
in facility upgrades will improve the stamping plant’s competitiveness in
today’s market. The plant employs approximately 1,680 people.
Allegheny Technologies manufactures
specialty steel ingots at its Lockport plant, where 55 people work. A $9.5
million upgrade is being undertaken for 11 new jobs for an existing work
force of 55, in return for an allocation of 1,000 kw. The expansion includes
furnaces and other new machinery and equipment.
“The Niagara hydropower will moderate
the electricity costs at the Lockport plant as it adds equipment and new
jobs,” said Dan L. Greenfield, director of communications, at Allegheny
Technologies’ Pittsburgh corporate headquarters. “This contributes to our
high regard for this manufacturing plant.”
The Western New York Advisory Group,
consisting of the Power Authority, Niagara Mohawk, Empire State Development
Corp., and the Buffalo Niagara Enterprise recommends the industrial
allocations from the Niagara Project.
The 2,400,000-kw Niagara Power Project
is the largest single source of electricity in New York State. In addition
to Western New York industries, its output is also sold under state and
federal laws to New York’s 51 municipal electric systems and rural
cooperatives, three upstate private utilities, and to seven neighboring
states. The project produced its first commercial power in 1961.
Return to Press Center