Low-Cost Hydropower Provides Incentives to Attract and Expand Two Western New York Companies
Commitments for More Than 100 New Jobs and $26 Million in Investments

Paul DeMichele
(914) 390-8186

July 30, 2013


WHITE PLAINS—The New York Power Authority (NYPA) Board of Trustees last week approved allocations of low-cost hydropower to two Western New York companies that will lead to 106 new jobs and $26 million in capital investments.  

The companies receiving the power are Saturn Petcare, Inc., for its renovation of an existing building in Ashville, Chautauqua County, to produce dog and cat foods; and Republic Steel, for an expansion in Lackawanna, Erie County, that will increase employment at the high-performance steel manufacturer by nearly 10 percent.

The NYPA trustees approved a total of 1.3 megawatts (MW) in the latest round of allocations from the Niagara Hydroelectric Power Plant near Niagara Falls.  (One MW, or 1,000 kilowatts (kW), is enough electricity to meet the needs of 800 to 1,000 typical homes.)

“Governor Cuomo’s strong pro-business policies, low-cost clean hydropower and Western New York’s outstanding work force are an unbeatable combination,” said John R. Koelmel, NYPA chairman and a resident of Western New York.  “The significant commitment of jobs and capital investment, as a result of the latest NYPA hydro allocations, are a clear indicator that New York’s economy is growing stronger and will continue to do so for years to come.”

“Low-cost and sustainable hydropower from the Power Authority’s Niagara power plant is a game changer,” said Gil C. Quiniones, president and chief executive officer, NYPA.  “Its value sets New York State apart as a major contender in attracting new businesses from around the country and the world. Under Governor Cuomo’s leadership, we’re making great strides in the utilization of this power for bringing about jobs and capital investments in Western New York.”

“Each job committed by these two companies represents much more than one job in the community,” said Congressman Brian Higgins.  “The more than 100 new jobs will provide opportunities for Western New York workers, support construction jobs and generate the purchase of goods and services from local suppliers and businesses.  Hydropower produced at the Power Authority’s Niagara plant is a local resource with local and global economic impacts.”

“Companies that expand in Western New York help anchor New York State’s economy,” said Senator George D. Maziarz.  “Companies that decide to locate here, through allocations of low-cost power from the Power Authority, ensure that New York’s economy will remain robust and provide good paying jobs well into the future.”  

“I am elated that NYPA has awarded low-cost hydropower to two Western New York companies, facilitating the creation of new jobs and $26 million in capital investments,” said Assemblyman Robin Schimminger. “As the Assembly appointee on the Western New York Regional Economic Development Council, I am looking forward to seeing the economic growth that is sure to come from these investments.”

Saturn Petcare, which will create 80 new jobs, received an allocation of 700 kW of hydropower.  It plans to renovate a building once used by Fairbanks Farms.  Its decision to locate in Chautauqua County will help offset jobs lost when Fairbanks closed.  

Saturn, a subsidiary of the Germany-based Heristo Group, is a major producer of pet food in Europe and plans to manufacture wet and dry dog and cat food in Western New York.  It will invest $20.9 million to renovate, purchase and install equipment. 

Other locations considered by Saturn included Michigan and Missouri.  The availability of NYPA’s low-cost hydropower was cited by the company as a major factor in its location decision.

Republic Steel, which currently has 283 employees, will add 26 new jobs and invest $5 million for equipment and renovation at its Lackawanna facility.  It received an allocation of 600 kW of hydropower.  

Republic Steel manufactures Special Bar Quality (SBQ) steel, which possesses a set of physical, chemical and process standards reflecting high performance and durability.  Located in Lackawanna since 1906, Republic Steel has been a long-time NYPA customer. 

The hydropower allocations, approved on July 23, are from two state statutorily authorized low- cost power programs known as Expansion Power and Replacement Power.  The power from these programs is designated for business expansion and attraction within a 30-mile radius of the

Niagara plant.  In addition, 25 MW is designated for economic development in Chautauqua County. 

“Last week’s allocations are evidence that Governor Cuomo’s innovative, and streamlined approach to economic development is working,” said Sam Hoyt, Regional President, Empire State Development Corporation.  “When the public and private sector work together, everyone prospers.”

About NYPA:

The New York Power Authority uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. ■ NYPA has been designated as the lead entity via Executive Order 88 by Gov. Andrew M. Cuomo to form a central management and implementation plan to carry out his Build Smart NY plan to reduce energy use by state facilities by 20 percent by 2020. ■ NYPA is the nation's largest state public power organization, through the operation of its 16 generating facilities in various parts of New York State, participation in a unique public/private partnership to contract for power from a clean generating plant in Queens, and its operation of more than 1,400 circuit-miles of transmission lines. ■ More than 70 percent of the electricity NYPA produces is clean renewable hydropower. Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the state.■ For more information visit and follow us on Facebook, Instagram, LinkedIn, Wordpress and @NYPAenergy on Twitter.

Return to Media Center