FEBRUARY 1, 2010
Govenor Paterson Announces Financial Award to Support and Retain Significant Long Island Company
Governor David A. Paterson today announced that CA, Inc., formerly Computer Associates, an Islandia-based software company, will benefit from an economic development plan to help offset its electricity costs. The plan will support the company's continued operation in Suffolk County, which employs nearly 1,800 residents of Long Island.
"This announcement signifies the importance that my administration places on keeping jobs in New York," Governor Paterson said. "Every effort must be made to ensure that we stabilize our faltering economy, preventing further job loss and aiding our economic recovery. The resources that are being applied by the New York Power Authority through economical power and industrial incentive awards are part of this effort."
CA, Inc. will receive an industrial incentive award of up to $3.6 million a year which may be applied to the company's electric bills through 2016. Electricity accounts for approximately one-third of the company's Long Island-based data center's operational cost.
New York Power Authority President and Chief Executive Officer Richard M. Kessel said: "I believe this industrial incentive award will be of paramount importance for ensuring that CA continues to be a vibrant part of the Long Island economy. This is a firm that casts a significant footprint in terms of jobs, demand for goods and services and tax revenues. We recognize the competitive pressures that the company is under in these tough economic times and are glad to be able to partner with it for its continued vitality and success on the Island."
Russ Artzt, Vice Chairman and Founder, CA, Inc., said: "CA is pleased to accept the Industrial Incentive Award as part of our long-term commitment to the local Long Island community. The award provides CA with the assurance of lower-cost and stable electric rates, which are vital in our efforts to expand our local data center facility. In turn, we are working hard to use energy as efficiently and effectively as possible, and we have developed technology solutions that will help our customers do the same."
CA currently benefits from New York State's Energy Cost Savings Benefit (ESCB) program, enacted into State law in 2005, in which the New York Power Authority (NYPA) helps defray the purchased power costs of the participants in the program.
The Industrial Incentive award to CA will provide the company assurance that it will continue to receive discounted power rates until at least 2016. Presently, ECSB is due to expire on May 15, 2010 and CA had indicated that it could not make long-term investment plans in New York State without the commitment secured through the Industrial Incentive Award. The receipt by CA of the award will depend on whether ECSB is extended or a substitute program is provided.
The economic development plan, under which the industrial incentive grants are provided, supports crucial energy-intensive companies at risk of closing or relocating out of State from the severe downturn in the economy.
CA is one of Long Island's largest businesses, paying nearly $300 million in annual wages and generating more than $25 million in State and local taxes.
The Power Authority has also recently approved industrial incentive awards to several upstate companies including International Wire in Oneida County, Nucor Steel in Cayuga County and Positive Promotions in Suffolk County. In addition, an award has been approved by NYPA's Board of Trustees for the Erie Canal Harbor Development Corporation in Western New York.
The following statements were provided in support of CA, Inc. receiving the Industrial Incentive Award:
Congressman Steve Israel said: "CA is one of the most important economic engines on Long Island. I was glad to work with NYPA and the Governor's office to provide appropriate incentives for a company that employs 1,800 people in our community. In a tough economy, it is vital that we do everything possible to keep companies like CA here on Long Island."
Senator Brian X. Foley said: "During these tough economic times, retaining and creating jobs must be our number one priority. The approval of CA Inc. for this major energy assistance award will help retain thousands of well-paying jobs right here in Suffolk County. I commend Governor Paterson and the New York Power Authority (NYPA) for their work on this critical issue and look forward to working with all my legislative colleagues on job creation in Suffolk County and around New York State."
Assemblyman Kevin Cahill, Chair of the Assembly's Energy Committee, said: "The Power Authority's economic development power programs have been instrumental in protecting and helping to create hundreds of thousands of jobs throughout the state. Today's announcement by Governor Paterson once again demonstrated that New York's ability to retain and attract businesses would be severely diminished without these important tools for making energy more affordable. We will soon be introducing legislation to overhaul these initiatives to make sure they are addressing the needs of emerging industries. I look forward to partnering with the Governor to enact a law that will provide businesses with the stability and continuity they need to make the investments that will create jobs here in New York."
Town of Islip Supervisor Phil Nolan said: "I am so pleased that Governor Paterson and NYPA have decided to award this economic development plan to CA, Inc. This plan will significantly reduce the company's energy costs, allowing them to remain in Islip Town, thus preserving jobs and tax revenue that are so vital to this area. It is exactly this kind of innovative approach that has allowed New York State and the Town of Islip to remain competitive during this difficult economic climate."