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NYPA Hydropower Allocation to Create 15 Jobs At New Manufacturing Facility In North Tonawanda

Contact:
Michael Saltzman
914-390-8181
michael.saltzman@nypa.gov

September 26, 2006

 FOR IMMEDIATE RELEASE

WHITE PLAINS—The New York Power Authority (NYPA) Trustees Tuesday approved an allocation of low-cost hydropower for a new manufacturing facility in North Tonawanda for converting used tools and parts into raw material for carbide manufacturers.

Silver Eagle Technology, Inc., will receive an allocation of 600 kilowatts (kw) of power from the Power Authority’s Niagara Power Project in return for a commitment to create 15 jobs at a new $2 million manufacturing facility that is expected to begin operating September 2007. The allocation will be from a block of Niagara power called replacement power, which together with another block of industrial power from the large hydroelectric project combine for nearly 44,000 jobs at about 120 Western New York companies.

Silver Eagle, whose North Tonawanda operation will consist of furnaces and other heavy-duty equipment, anticipates that electricity will account for more than one-third of its cost of production, underscoring the importance of the hydropower allocation. The manufacturing facility will use an innovative reclaiming process for converting the used carbide tools and parts into tungsten carbide and cobalt powders for manufacturers in the U.S. and Europe.

 “We’ve worked especially hard to optimize the economic development benefits in Western New York of the Niagara Project, under Governor Pataki’s leadership, with allocations on a regular basis to job-producing businesses,” said Timothy S. Carey, NYPA president and chief executive officer. “This has included working closely with state and local economic development officials to identify the best opportunities for encouraging growth of businesses and capital investment.”

The Western New York Advisory Group, consisting of NYPA, National Grid, Empire State Development Corp., the Buffalo Niagara Enterprise and Niagara County, recommended the last allocation under a streamlined process for assigning Niagara power as quickly as possible to maximize the project’s job benefits.

 

 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.