An estimated 130 jobs are expected to be created at five businesses in the Mohawk Valley as a result of low-cost power through the third round of the ReCharge NY power program, Governor Andrew Cuomo announced on Monday.
The ReCharge NY program was created by the Governor and put in place by the Legislature in 2011. The program is designed to spur economic development in all corners of the state by providing low-cost power to businesses and other entities that agree to create or retain jobs.
"New York State is coming back stronger than ever before, and to help fuel our economic recovery, government is partnering with the private sector to give businesses the tools, confidence, and resources they need to create jobs and hire New York workers now," Governor Cuomo said. "Since we launched ReCharge NY a few months into my administration, it has already helped retain thousands of jobs, and generate tens of millions of dollars in private sector investments in communities across the state. Today's allotment of additional grants of low-cost power will continue the extraordinary success of ReCharge NY, while demonstrating that an innovative, entrepreneurial government can truly work to rebuild our economy."
The first two rounds of ReCharge NY provided low-cost power allotments to more than 600 businesses and 76 not-for-profit organizations, helping retain nearly 385,000 jobs. The power allocations announced today by the Governor were approved this morning by the New York Power Authority (NYPA) Board of Trustees, and are the first allocations from the ReCharge NY program to be tied directly to job creation. Statewide, 38 businesses across New York State will create an estimated 3,200 jobs as a result of low-cost power allocated through the third round of the ReCharge NY power program.
John R. Koelmel, NYPA chairman, said, "The allocations approved today by the Power Authority Board of Trustees are another triumphant result of Governor's Cuomo's ReCharge NY program, which was specifically designed under statute to be a cornerstone for driving the state's economy, not only for protecting jobs but for creating new ones. The Power Authority takes great satisfaction in carrying out the Governor's program and supporting his vision for bolstering the employment rolls. The ReCharge NY allocations-and the significant savings to the recipients-will contribute to this effort."
Gil C. Quiniones, NYPA president and chief executive officer, said, "The Power Authority has worked closely with state and regional economic development officials to maximize the benefits of Governor Cuomo's ReCharge NY program. The newly approved allocations are the first that we're making for job creation, marking another important milestone in this innovative initiative. We're looking forward to additional allocations for both job creation and retention in the months ahead, to further the benefits of this bold new program to revitalize the state's economy."
Senator Joseph A. Griffo said, "In its first year, it looks as if the new ReCharge NY program is off to a good start. This third round includes manufacturers who've pledged to use the new allocations to bring in new positions to their companies. I commend the NYPA Board and Chairman John Koelmel for working with the Regional Councils to see that the third round of funding awards went to the businesses in our region who seek to increase our labor force. I also recognize Governor Cuomo for sharing our vision for job growth, in agreeing to the revamped ReCharge program."
Senator James L. Seward said, "When I helped establish New York's original low cost power plan, Power for Jobs, the goal was simple - help businesses afford to operate and grow in the Empire State. That same objective is now being accomplished under the Recharge New York banner. These power allocations are a continuation of New York State's renewed partnership with the private sector as we work together to create a pro job-growth environment that will further advance our improving economy."
Assembly Member Anthony Brindisi said, "The Recharge NY power program has proven to be a successful tool in helping strengthen our local businesses and creating jobs in our area. But there is still more work to be done. Thanks to this next round of funding, we can continue moving forward - providing more job opportunities and a stronger economy for Mohawk Valley families."
The enactment of the ReCharge NY legislation in 2011 was a major achievement in New York State's efforts to partner with businesses across the state in the harnessing of its lower-cost power for economic development. Over prior years, a number of efforts had been undertaken in this direction only to fall short. ReCharge New York replaced two existing initiatives-the Power for Jobs (PFJ) and Energy Cost Savings Benefit (ECSB) Programs. Unlike ReCharge New York, those two programs provided for only short-term allocations, limiting their effectiveness as an economic development tool. The allocations approved today total more than 29 MW and will be drawn from 200 MW specifically reserved for business expansion and attraction under the 910-MW program. One megawatt is enough power for meeting the electricity needs of 800 to 1,000 typical homes. To date, the NYPA trustees have awarded approximately 716 MW of power under the program.
NYPA worked in close consultation with the Governor's Regional Economic Development Councils to evaluate the ReCharge NY applications to ensure that local economic development strategies were given sufficient weight in the consideration of the applications. In addition to jobs and capital investment commitments, other evaluation criteria included the significance of the cost of electricity to the overall cost of doing business, applicant's risk of closure or curtailing operations, the significance of the applicant's facility to the local economy, and its commitment to energy efficiency. The ReCharge NY program offers up to seven-year power contracts. Half of the power under the program-455 mw-is low-cost hydropower from NYPA's Niagara and St. Lawrence-Franklin D. Roosevelt hydroelectric projects. The remaining 455 MW is economical power secured by NYPA from market sources. The newest allocations are slated for companies throughout the state, mainly to manufacturers and processing facilities of varied industrial and agriculture products.
The Mohawk Valley recipients, along with their allocations and job and capital-investment commitments, are listed below:
- ConMed Corporation - Oneida County - 25 jobs - $875,000 capital investment
- DeIorio Foods, Inc. - Oneida County - 45 jobs - $32,000,000 capital investment
- EFJ Inc. dba Mill Services - Schoharie County - 10 jobs - $500,000 capital investment
- Homogeneous Metals, Inc. - Oneida County - 25 jobs - $26,159,119 capital investment
- Olbrych Realty Inc. Fulton County - 25 jobs - $4,250,000 capital investment