CUOMO ANNOUNCES HYDROPOWER ALLOCATIONS TO FIVE WESTERN NY FIRMS

(The following is a reformatted version of a press release
issued by New York Governor Andrew M. Cuomo and received via e-mail. The release was confirmed by the sender.) 
March 22, 2013 
GOVERNOR ANNOUNCES LOW-COST HYDROPOWER ALLOCATIONS TO FIVE
WESTERN NY FIRMS IN SUPPORT OF 215 NEW JOBS AND $193 MILLION IN
CAPITAL INVESTMENTS 
Governor Andrew M. Cuomo today announced that five Western New
York firms will receive low-cost hydropower to support the
creation of 215 jobs and $193 million in capital expansion
projects. More than half of the new jobs will be created by
Yahoo! in its establishing of a customer call center and the
expansion of its data center in Lockport. 
The allocations to the five companies, approved today by the New
York Power Authority (NYPA) Board of Trustees, total nearly 13
megawatts (MW) (13,000 kilowatts) of power from NYPA’s Niagara
Power Project. In addition to Yahoo!, the firms are SiGNa
Chemistry, for a potential new manufacturing facility in
Wheatfield, Aurubis Buffalo in Buffalo, International Imaging
Materials (IIMAK) in Amherst, and RubberForm Recycled Products
in Lockport. 
“Low-cost hydropower is one of the most effective economic
development tools that we have to create jobs in New York,”
Governor Cuomo said. “The allocations approved today to five
companies in Western New York will help to create over 200 new
jobs and support major capital expansion projects. These are
smart investments in the region’s economy.” 
“Governor Cuomo and his administration have spared no effort in
spurring job growth in Western New York and the expansion of
businesses through the strategic use of state resources,” said
John R. Koelmel, NYPA chairman. “Low-cost hydropower from the
Niagara Hydroelectric Power Plant has been an important part of
the equation, as demonstrated by the latest allocations approved
by the NYPA Board of Trustees, including Yahoo! The anticipated
expansions are great news for Western New York.” 
“The newest power allocations, individually and collectively,
signal exciting developments for Western New York’s economy and
the Power Authority is pleased to be playing a part in helping
these companies realize their expansion goals,” said Gil C.
Quiniones, NYPA president and chief executive officer. 
“Western New York’s economy is uniquely positioned to benefit
from hydropower fueled by Niagara Falls,” said Congressman Brian
Higgins. “This is just the latest example of how jobs, too, can
flow from water when we take advantage of the resources that are
naturally ours.” 
“I have long believed that the best use of low-cost hydropower
is to create jobs, and the allocations to Yahoo!, SiGNa
Chemistry and Rubberform in my district and to the other
projects based in Western New York are significant proof that we
are heading in the right direction in leveraging NYPA hydropower
resources for the maximum benefit of our region,” said Senator
George Maziarz. “I am pleased to work cooperatively with
Governor Cuomo, NYPA and each of the individual companies
investing in our community, on these projects, which will grow
our economy and benefit my constituents and all of the residents
of Western New York.” 
“The expansion plans by Yahoo and the other four companies is
another sign of continued development momentum for Western New
York and highlight the role that the Niagara hydropower plant
plays as a magnet for job creation, said Sam Hoyt, regional
president, Empire State Development, New York’s chief economic
development agency. “Governor Cuomo is giving the highest
priority to Western New York’s economic turnaround, and this is
exemplified by the state’s partnership with the latest
hydropower recipients.” 
The low-cost hydropower to the five companies will be provided
under seven-year contracts, with the allocations drawn from two
blocks of Niagara electricity known as Expansion Power and
Replacement Power. In addition to new permanent jobs, the
capital investments by the companies are expected to support
hundreds of construction jobs. 
Yahoo! will receive a 7.2 MW allocation for a customer call
center that will create a minimum of 100 jobs. The web company
also plans to expand its state-of-the-art Lockport data center
and add 15 new positions to the facility’s current workforce. 
In addition to hydropower, Yahoo! will be provided by ESD up to
$2 million in Excelsior tax credits over 10 years as further
incentive for its expansion plans. 
Yahoo! also will contribute $500,000 per year to the Community
Foundation for Greater Buffalo, a not-for-profit organization
that administers charitable funds for the benefit of Western New
York. The funding will be used to advance specific priority
economic development strategies identified by the Western New
York Regional Economic Development Council. 
“We are happy to be a part of the Western New York community and
are excited about our expansion plans. We are appreciative of
our close partnerships with local municipalities and are
grateful to our outstanding workforce in Lockport,” said David
Dibble, Executive Vice President of Central Technology for
Yahoo!. “Yahoo! is committed to being an environmentally
responsible company, and we thank New York State and local
authorities for working with us to ensure we continue to power
our data center with clean energy.” 
SiGNa Chemistry, which has a growing portfolio of “green”
chemical products used by oil-recovery and fuel-cell industries,
will receive 2.5 MW of Niagara power to establish a potential
new manufacturing facility in Wheatfield that will initially
lead to 50 new jobs. The number of jobs could double over time
as demand for its industrial powder materials grow. By year’s
end, SiGNa expects to launch the new manufacturing facility in a
15,000-square-foot space that could be expanded for increased
production. 
Aurubis Buffalo will receive a 2.8-MW allocation to boost
production at the company’s copper and brass rolling mill. The
low-cost power would support the purchase of a new $9.5 million
customized furnace and a $2.4 million investment to revive an
idled rolling mill. The planned improvements at the Buffalo
facility would add 35 new jobs to an existing workforce of 675
employees. Aurubis is also Empire Zone certified to receive
benefits. 
IIMAK, an international manufacturer of thermal transfer
ribbons, barcode ribbons, direct thermal films and fluid inks
for the printing industry, will receive an allocation of 200
kilowatts (kW) of hydropower to support a planned $2 million
capital investment for an equipment expansion at the company’s
Amherst facility. IIMAK will add three new jobs to its Amherst
workforce of 355. In addition, IIMAK will receive $640,000 in
Excelsior tax credits from ESD. 
Rubberform Recycled Products, a manufacturer of recycled rubber
products for traffic safety, home improvement, shipping and
marine products industries, will receive a Niagara hydropower
allocation of 200 kW and a $250,000 Environmental Investment
Program grant from ESD in support of a $500,000 expansion that
includes a new recycled-material production line. The company
has committed to add 12 new jobs at its Lockport facility, which
currently has a workforce of 15 employees. 
Under state law, allocations of power to Western New York
businesses from the Niagara plant are for firms within a 30-mile
radius of the hydroelectric facility, or in nearby Chautauqua
County, at a price that is currently more than 40 percent lower
than wholesale market electricity in the region. The hydropower
is linked to tens of thousands of jobs at more than 100
businesses in the region with a combined payroll of more than $2
billion. 
(sgp) NY 
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