Two New Hydropower Allocations
Approved Tuesday for Buffalo-Niagara Region for 150 New Jobs
July 31, 2007
FOR IMMEDIATE RELEASE
WHITE PLAINS—The New York Power Authority (NYPA)
Trustees Tuesday approved low-cost hydropower allocations to
underpin multimillion dollar expansions by two Western New York
manufacturers, including one to Moog, Inc., the aerospace and
defense industry contractor, which is planning to add 140 new jobs
to its existing work force of approximately 2,300.
“Moog’s plans for expanding its East Aurora
facility demonstrate the ability of Western New York manufacturers
to capitalize on job growth opportunities, and we’re delighted to be
supporting this with the low-cost hydropower from our Niagara Power
Project,” said Frank S. McCullough, Jr., NYPA chairman. “This power
confers special advantages from being among the least cost in the
country, which is the reason it is so useful for economic
Earlier today, the NYPA trustees approved an
allocation of 1,200 kilowatts (kw) for the Moog expansion, as well
as a 500-kw allocation for the Niacet Corp. of Niagara Falls, a
manufacturer of specialty chemicals, which is planning to add 10 new
jobs to a current work force of 82.
Both allocations will be drawn from a block of
Niagara industrial power, known as Replacement Power, which is
reserved for Western New York businesses under New York State law,
along with a second quantity of power from the project. The two
blocks are sold at rates about 75 percent less than average
wholesale market prices, supporting some 43,000 jobs.
Moog, which got started in 1951 in Western New York
and has since grown to become a worldwide company, is undertaking a
two-phase project to expand the manufacturing and office space of
its Space and Defense and Industrial Groups in East Aurora, to
facilitate increased output. The expansion involves a full range of
precision-control products and systems aerospace products for NASA’s
Moon and Mars Programs, commercial satellites, flight simulators,
and combat-vehicle-turret controls.
“The low-cost hydropower is integral for stepping
up the production output of the hardware at our East Aurora
facility, and for competing with manufacturers in other parts of the
country and around the world,” said Robert T. Brady, president and
chief executive officer of Aerospace, Defense and Industrial, Moog.
“We also do tens of millions of dollars of business with various New
York suppliers of equipment, components and services, so the effect
of this power allocation for the state’s economy goes well beyond
In addition to the allocation approved today, the
East Aurora facility has long benefited from another allotment of
hydropower, for 4,250 kw, from the second block of Niagara
industrial power, known as Expansion Power. Together with
Replacement Power, the two industrial power programs account for
695,000 kw, or nearly 40 percent of the Niagara project’s firm
Niacet is installing new processing equipment as
part of a more than $15 million expansion of its production
capacity. The power allocation granted for the expansion will be in
addition to 1,900 kw of Replacement and Expansion Power that the
chemical plant currently receives.
The Western New York Advisory Group (WNAG),
consisting of NYPA, National Grid, Empire State Development Corp.,
the Buffalo Niagara Enterprise, and the Niagara County Center for
Economic Development, recommended the latest hydropower allocations.
The WNAG was established in 2003 to help identify qualified
companies for available industrial power from the Niagara project.
■ 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 a leader in promoting
energy-efficiency, new energy technologies and electric
transportation initiatives. ■ It is the
nation’s largest state-owned electric utility, with 18 generating
facilities in various parts of the state and more than 1,400
circuit-miles of transmission lines.
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