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Hydropower Allocations to Support Three Western New York Companies
Low-Cost Power to Spur 55 New Jobs and Over $16 Million in Capital Investments

Michael Saltzman

January  27, 2009


ALBANY–New York Power Authority President and Chief Executive Officer Richard Kessel today announced allocations of low-cost hydropower to three companies in Buffalo and Niagara Falls to create 55 new jobs from capital investments of more than $16.2 million for expanding those businesses.

The allocations were approved by the New York Power Authority (NYPA) Board of Trustees, which allotted available power from the Authority’s Niagara Power Project to Luvata Buffalo and Printing Prep—two Buffalo firms—and North American Hoganas in Niagara Falls. 

“The three allocations of Niagara power approved today by the Power Authority Trustees underscore our continuing efforts under Governor Paterson to maximize the benefits of the project’s low-cost hydropower,” Richard M. Kessel, NYPA president and chief executive officer, said. “These allocations are integral to the companies’ expansion plans, given the energy intensiveness of the businesses and the cost of Niagara electricity, which is among the lowest-cost power in the country.”

The latest hydropower allocations will be drawn from a block of Niagara power known as Expansion Power, one of two large amounts of industrial power from the project that are  reserved for Western New York businesses under New York State law.

Specifically, the recipients of the low-cost hydropower are as follows:

Luvata Buffalo,: (70 Sayre St., Buffalo): this company plans to undertake a three million dollar expansion of its copper and brass rolling mill, in return for a new allocation of 650 kw of hydropower.  The expansion will lead to the addition of 30 jobs to a current work force of 647. 

Luvata, which provides products for the North American auto industry, will be upgrading equipment as part of its plans to consolidate in Buffalo some of its manufacturing operations currently conducted in Europe to lower overall production costs. 

Printing Prep: (12 East Tupper St., Buffalo) will be investing $1.25 million on new digital printers and other equipment in support of its specialty graphic and printing services. The company will be adding 12 jobs to an existing work force of 32, in return for an allocation of 100 kw.

North American Hoganas: (5950 Packard Rd., Niagara Falls) will be undertaking a $12 million expansion of its Niagara Falls facility. The company, which manufactures sponge iron products primarily for the automotive industry, will receive a 1,000 kw allocation in return for adding 13 jobs to the facility’s current employment level of 48.  The expansion includes a new furnace and other equipment for the production of sponge iron, which is currently in short supply in global markets. (Sponge iron is used for making tough and malleable materials that can be forged and welded.)

The Western New York Advisory Group (WNAG), consisting of the Power Authority, National Grid, Empire State Development Corp. (ESDC), the Buffalo Niagara Enterprise, the Erie County Industrial Development Agency and the Niagara County Center for Economic Development, supported the latest hydropower allocations. The WNAG was established in 2003 to help identify companies for available Niagara power.

The Niagara project, which is the single largest source of electricity in the state, is directly linked to more than 45,000 jobs, or about 70 percent of all the manufacturing jobs in the Buffalo Niagara region. Overall, when multiplier effects are considered, the project is linked to more than 160,000 jobs in the region and nearly $16 billion in annual gross regional product.  Western New York residents also benefit from the project’s low-cost power as customers of investor-owned utilities and publicly-owned electric systems.

   About NYPA:

■    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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