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 the Finger Lakes Region, the New York Power Authority (NYPA) Board of Trustees this week approved allocations that total more than 6 MW of power to 15 enterprises, and are linked to almost 5,000 jobs and significant capital investments in the region. The key recipients include Celmet in Rochester, Morton Salt in Silver Springs, and Optimax Systems in Ontario.
"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
Senator Mike Nozzolio said, "The ReCharge New York program is continuing to accelerate economic development throughout the Finger Lakes, leading to the growth of new jobs and a brighter economic future. I commend Governor Cuomo for his leadership in developing this initiative and I was pleased to work with him to secure these critical investments in our region's job creators."
Senator George D. Maziarz said, "The Recharge NY Program is something that I championed in Albany in order to provide both jobs for this area as well as stability for companies in the assurance of a 7 year contract. The businesses selected have clearly shown their commitment to the community. This low cost energy will inevitably help keep businesses in this area for a long time and will in turn help grow the region's economy. I applaud the New York Power Authority for their selection of such deserving recipients."
Senator Joe Robach said, "It is great to see these local companies provided the low-cost energy resources to help create and retain jobs. The second round of allocations from Recharge NY will greatly aid these businesses to continue their growth and provide employment opportunities in our economy."
Senator Patrick Gallivan said, "Recharge NY is vital to the economic future of the Finger Lakes region. This program will allocate cheap electricity to dozens of local business, allowing them to use the savings to plan their growth, reinvest in their business, expand operations, and create sustainable jobs in our community. As an original co-sponsor to this legislation last year, I was proud to fight for Upstate's interests, which resulted in 350 MW of power made available through Recharge New York to be specifically set aside for upstate New York economic development."
Assembly Member Harry Bronson said, "In these tough economic times, it is vital we do everything we can to create and keep jobs in Monroe County. Recharge New York will help boost jobs in Monroe County, which will provide a much needed boost to the economy."
Danny Wegman, chief executive officer of Wegmans Food Markets and co-chair of the Finger Lakes Regional Economic Development Council, said, "At a time when local budgets are tapped, New York State’s ReCharge New York program, with its promise of long-term contracts for low cost power, is just the kind of state support local communities need to help businesses grow and thrive. The Consolidated Funding Application process that Governor Cuomo established, for a streamlined one-stop process to apply for ReCharge New York power, has shown its effectiveness with these initial power awards, which bode well for the economic health of our region and our state."
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.