Low Cost Power Program will Help to Create and Retain Thousands of Jobs across New York
Albany, NY (June 28, 2012)
Governor Andrew M. Cuomo today announced that an additional 161 businesses and not-for-profit organizations across the state have been awarded more than 80 megawatts (MW) of low cost power in the second round of allocations under the ReCharge New York program. This round of RNY allocations is expected to generate substantial private capital investments and retain approximately 25,000 jobs.
For Long Island, the New York Power Authority (NYPA) Board of Trustees this week approved allocations that total almost 7 MW of power to 24 enterprises, and are linked to almost 7,000 jobs and significant capital investments in the region. The key recipients include Calcio Cottage in Amityville, DRI Relays in Hauppauge, and Karp Associates in Melville.
"Through the NY Works program, we now have a cohesive strategy to leverage resources such as available, low-cost power, allowing businesses to create jobs and make investments in all regions of the state. These power allocations through the ReCharge New York program will provide competitive and reliable energy prices to manufacturers and other key employers, giving them the confidence to invest in their facilities and maintain and increase employment," Governor Cuomo said. "We will continue our aggressive efforts to capitalize on our low-cost power and other economic incentives to attract new businesses to New York and encourage expansion and growth in our state’s existing enterprises."
The allocations approved this week by the New York Power Authority (NYPA) Board of Trustees bring the total support provided by Recharge New York to 602 businesses and 76 not-for-profits. Those enterprises are expected to commit to retain nearly 385,000 jobs and undertake billions of dollars in capital investments from the approximately 680 MW that have been allocated under the ReCharge New York program to date. The low-cost power tied to the ReCharge New York program will start to be made available to customers on July 1. A complete list of the second round of power allocations is available here: http://www.governor.ny.gov/assets/documents/round2allocations.pdf
Senate Majority Leader Dean G. Skelos said, "The Recharge NY power is essential for many Long Island companies that pay some of the most expensive utility rates in the country. By helping offset some energy costs, ReCharge enables businesses to keep more of their money so they can reinvest, grow and create new jobs. This second round of grants builds on the success of this program we created with Governor Cuomo last year."
Senator Kenneth P. LaValle said, "I am pleased to support Governor Cuomo's Recharge New York program that offers significant financial benefits to a number of deserving companies in both Nassau and Suffolk County. Lowering the cost of electricity for Long Island companies, encourages businesses to invest in their facilities and saves jobs which is critical to the economic well being of Long Island's communities."
Senator Kemp Hannon said, "RechargeNY will give businesses across Long Island access to inexpensive electricity which will create jobs. It doubles the amount of low cost power available for businesses and non-profits, and will revitalize New York’s economy, which has lost almost 300,000 jobs over the past ten years."
Senator Carl L. Marcellino said, "I am thrilled that seven companies in the 5th Senate District that I represent were approved for the Recharge New York Program. Making available low cost power to these energy-intensive companies helps to make sure these businesses stay open in New York keeping our residents employed."
Senator Charles J. Fuschillo, Jr. said, "ReCharge New York will address several priorities needed to grow our economy; creating jobs, lowering business costs, and providing relief from
some of the nation's highest utility costs. Through this program, the businesses and not-for-profits that drive our economy can invest more of their resources back into business development and growth where it belongs. I commend Governor Cuomo for his leadership and look forward to continuing to work with him to find innovative ways to create jobs and spur economic development throughout Long Island and New York State."
Senator John Flanagan said, "Today’s announcement is welcomed news for Long Island businesses which play a crucial role in creating good jobs and contributing to our state’s economic recovery. The low-cost power allocations awarded today will keep New York competitive with other states by providing businesses with the needed assistance to grow and remain on Long Island."
Senator Jack Martins said, "The Recharge New York program is in line with our initiatives of making New York State more business friendly and stimulating our economy by generating private capital investments and retaining and creating jobs. I am pleased that there is a significant allocation coming to businesses in the Seventh Senate District. We want to keep our businesses and jobs right here on Long Island. I want to thank Governor Cuomo and I look forward to continuing to work with my colleagues on economic development and exploring initiatives to move our state's economy forward on its road to recovery."
Senator Lee Zeldin said, "Last year, by partnering with Governor Cuomo and my legislative colleagues, we were able to create the ReCharge NY program. The announcement today of the second round of lower cost power allocations through ReCharge NY will help to keep and create jobs here on Long Island, allowing companies to expand and invest new capital into our economy."
Assembly Member Harvey Weisenberg said, "In these tough times, ReCharge NY is helping to provide affordable electricity, which will help not-for-profit organizations to continue to do their good work in our community."
Assembly Member Robert Sweeney said, "With this announcement of 161 lower-cost power allocations to businesses and nonprofits, New York is proving once again that we welcome business. When this power begins to flow in July to businesses like Calico Cottage in Amityville, it will represent the retention of hundreds of thousands of jobs that hardworking New Yorkers rely on."
Assembly Member Phil Ramos said, "Recharge New York will help ease the burden of increasing utility costs on businesses committed to creating and retaining jobs here in Suffolk. By offering low-cost power to local businesses, we are helping retain and create jobs here in Suffolk."
Kevin Law, President of the Long Island Association and co-chair of the Long Island Regional Economic Development Council, said, "We thank Governor Cuomo for helping so many businesses on Long Island with this initial allocation of low cost power from NYPA that will help retain and create thousands of jobs in our region and provide seven years of predictable energy costs for the Long Island businesses participating in the Re-Charge NY program."
Stuart Rabinowitz, President of Hofstra University and LIREDC Co-Chair, said, "Recharge is a game-changer for Long Island's economy, helping us create more jobs for our workers while lowering energy costs for our businesses. The Regional Council process demonstrated that Long Island' highly skilled and educated workforce provides a great foundation for business investment and growth. Now, these Recharge NY allocations will build on that, helping businesses invest with confidence in our region and in New York State, reinforcing that we are in fact Open for Business."
The latest allocations were recommended this week by the New York State Economic Development Power Allocation Board (EDPAB), a four-member body empowered under state law to make power recommendations to the NYPA trustees.
John R. Koelmel, who was elected this week by the NYPA Board of Trustees as the Authority’s chairman, said, "These latest allocations of low-cost power under the Recharge New York program demonstrate the New York Power Authority’s continued commitment to playing an integral role in Governor Cuomo’s economic revitalization and job creation efforts. We are more determined than ever to use our assets and their outputs to attract new business opportunities to New York State and foster growth in existing companies and industries."
The ReCharge New York program, which will draw upon 910 MW of low-cost energy, offers up to seven-year contracts, including at least 350 MW for upstate businesses, 200 MW for business attraction and expansion projects, and up to 100 MW for not-for-profits and small businesses.
In total, NYPA received over 1,000 applications for ReCharge New York power under Governor Cuomo’s "New York Open for Business" initiative through the on-line Consolidated Funding Application, requesting over 2,100 MW—more than twice the total amount available under the statutorily provided power program.
In evaluating the applications on a competitive basis, NYPA, in consultation with Regional Economic Development Councils across the state, used criteria based on capital investment commitments, job retention and creation, consistency with regional economic development council priorities, and other factors, including energy efficiency.
Also under the Recharge New York statute, NYPA is authorized to provide a transitional electric discount to any applicants that were not recommended to receive allocations, but which had been receiving benefits under NYPA’s expiring Power for Jobs (PFJ) and Energy Cost Savings Benefit (ECSB) programs—the predecessor programs to ReCharge New York. Specifically, the statute authorizes NYPA to provide those customers up to 66 percent of their PFJ or ECSB energy savings during the initial two years of the RNY program and 33 percent for the two years thereafter. The NYPA trustees approved transitional discount savings for 95 applicants, valued at energy savings of up to $9 million for just the first year alone.
Gil C. Quiniones, NYPA president and chief executive officer, said, "During the course of the ramping up of the ReCharge New York Program, the Power Authority has worked aggressively to receive applications that represent a broad array of businesses and employers that will result in sustainable economic growth and employment opportunities in every region of the state. The applications were reviewed in consultation with the state’s 10 Regional Economic Development Councils on the basis of the competitive criteria under the ReCharge New York law, including jobs and capital investments. In helping to carry out Governor Cuomo’s vision for economic development, the Power Authority will continue to pursue additional opportunities to attract new businesses from available lower cost power and encourage significant business expansions that will spur job creation and private investment throughout New York."
For a list of allocations made under the Recharge New York program from the first two rounds of power allotments, visit http://www.nypa.gov/RechargeNY/default.htm.