NYPA Trustees Approve Low-Cost Power Allocations To Three Western New York Firms In Support Of 115 New Jobs
March 28, 2012
FOR IMMEDIATE RELEASE
WHITE PLAINS—The New York Power Authority (NYPA) Board of Trustees on Tuesday approved allocations of low-cost hydropower from NYPA’s Niagara Power Project to three Western New York firms in support of the companies’ capital expansions and the creation of 115 new jobs. The power allotments are the latest allocations of hydropower stemming from the Power Authority’s increased efforts under Governor Andrew M. Cuomo for spurring economic development in Western New York.
The allocations come from a block of hydropower known as Expansion Power (EP)—one of two large amounts of hydropower produced at the Niagara Power Project that are set aside under New York State law for job-creating businesses on the Niagara Frontier. The power allocations will have seven-year terms and will support new equipment purchases and expansion plans by Aurubis Buffalo, FMC Corporation and Nulife Glass.
“NYPA is committed to assisting Niagara Frontier businesses with allocations of low-cost hydropower from our Niagara Power Project, helping to ensure that the region’s manufacturers remain a cornerstone of the Western New York economy for the years ahead,” said Gil C. Quiniones, NYPA president and chief executive officer. “The Power Authority’s hydropower allocations are some of the lowest cost power in the country and are an ideal synergy with Governor Cuomo’s plans—laid out in his recent State of the State Address—to implement a $1 billion economic development package to spur the economy of the City of Buffalo and nearby communities.”
The NYPA board approved two power allocations, totaling 1,800 kilowatts (kw), to Aurubis Buffalo in support of the company enhancing its copper-and-brass rolling mill in Buffalo and relocating some of the firm’s overseas production at its Sweden facility—which will be closing over the next two years—to its Buffalo site. The company’s proposed expansion in Buffalo would add 74 new jobs to its existing workforce of 644 jobs and constitute a total capital investment of $4.7 million.
“I would like to extend my appreciation to the NYPA trustees for their unwavering support of Western New York businesses,” said Raymond Mercer, president of Aurubis Buffalo. “This power allocation, along with several other pending economic incentives related to other New York State programs, should allow us to expand our production capacity and employment level in Buffalo while reducing our costs at the same time.”
FMC Corporation will receive an allocation of 1,500 kw of hydropower to make a capital investment of $12 million to expand its production equipment at its Tonawanda facility. FMC is a publicly traded chemical manufacturing company that produces a diversified array of chemicals used in agricultural, industrial and consumer product markets. As a result of the proposed expansion, the company has committed to add 16 new jobs to its existing workforce of 172 employees, who work out of FMC’s Tonawanda plant and a nearby facility in Middleport.
FMC received a $1 million Consolidated Funding Application award for its proposed expansion project through Empire State Development’s Excelsior Jobs Program, which provides tax credits for strategic businesses such as high-tech, bio-tech, clean-tech and manufacturing that create jobs or make significant capital investments.
“The Power Authority’s hydropower allocation is critical to our firm’s continued success,” said James J. Scerra, Manufacturing Finance Manager, FMC. “We greatly appreciate the efforts of Governor Cuomo and the NYPA board to continually support Western New York businesses, allowing the region’s economy to strengthen and expand. Investment, job creation, and job retention are vital to our New York economy.”
“Promoting policies and programs to entice businesses to locate in Western New York and create jobs for our residents should be the top priority for the State of New York,” said Senator Michael Ranzenhofer. “Certainly, the Excelsior Jobs Program was created by the State Legislature just a few years ago with that goal in mind, and with FMC's commitment to a $12 million investment and the creation of 16 new jobs in Tonawanda, that goal will continue to be met.”
UK-based recycling company Nulife Glass will be receiving a 500-kw hydropower allocation to facilitate a $3.75 million capital investment to purchase and refurbish a building (at a site not yet determined) in Western New York for a new recycling plant. Nulife, the developer of the first industrial method to safely recycle glass from older televisions into reusable products, has committed to the creation of 25 new jobs and is currently working with the Buffalo Niagara Enterprise to identify a suitable location in Chautauqua County or within the 30-mile EP allocation zone.
“Through the enthusiastic efforts of Alan Rosenhoch of Buffalo Niagara Enterprise, we were introduced to many organizations in the region that showed real enthusiasm and effort to attract us to Buffalo,” said CEO of Nulife Glass, Simon Greer. “NYPA’s allocation of low-cost power is a real incentive to us to establish our new recycling plant in Western New York. We look forward to finishing our search for a suitable site location and setting up a business that can strive in the region for generations to come.”
“This is great news for Western New York and the three area corporations that will benefit from NYPA’s commitment to supply low-cost hydropower for capital expansion projects,” said Assemblyman Robin Schimminger, chair of the Assembly Committee on Economic Development, Job Creation, Commerce and Industry. “I especially look forward to seeing the economic impact made possible through the creation of 115 new jobs at FMC Corporation in Tonawanda, Nulife Glass and Aurubis Buffalo. I applaud the Board of Trustees at NYPA for doing its part to help spur economic development in Western New York.”
One-third of the firm generating capacity of the Niagara project is reserved for Western New York businesses under New York State law.
In 2011, the NYPA trustees approved the allocation of more than 19,000 kw of Niagara hydropower to create 645 jobs at 14 new or existing Western New York businesses for their total employment of more than 9,000 workers and multimillion dollar capital investments. (One thousand kilowatts is enough electricity to meet the needs of 800 to 1,000 typical homes.)
The Niagara project, which is the single largest source of electricity in the state, is directly linked to approximately 32,000 jobs in the Buffalo- Niagara region. When multiplier effects are considered, the 2,441-megawatt project is linked to tens of thousands of additional jobs with other firms that conduct business with the power recipients, and billions of dollars in annual gross regional product.
■ The New York Power Authority 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 public power organization, with 17 generating facilities in various parts of New York State and more than 1,400 circuit-miles of transmission lines. ■ Approximately 80 percent of the electricity it produces is clean renewable hydropower. Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the state. ■For more information, www.nypa.gov.