Lower-Cost NYPA Power to Help
Support Pfizer Expansion in New York City
June 25, 2003
FOR IMMEDIATE RELEASE
NEW YORK—An allocation of lower-cost electricity approved Tuesday by
the New York Power Authority (NYPA) Trustees will help support a major
expansion in New York City by pharmaceutical giant Pfizer, which is
planning to relocate 1,000 jobs to the city by the end of 2004 and
create another 3,300 new jobs over the next 15 years.
“The allocation of the discount-priced electricity is part of an
economic development expansion agreement with New York State and New
York City governments for Pfizer to invest $1 billion in the city over
the next two decades and protect and create thousands of jobs,” said
Louis P. Ciminelli, NYPA chairman. “The agreement, reached only last
month, is one measure of the aggressive approach that Governor Pataki,
Mayor Michael Bloomberg and other state and local leaders have taken to
support the growth of businesses at every opportunity.”
The allocation, for 4,400 kilowatts (kw), is being made through the
New York City Public Utility Service (NYCPUS) from a block of 94,470 kw
reserved for municipal utility service agencies downstate for resale to
The allotted power is earmarked for Pfizer facilities in Brooklyn and
will help support the company’s overall expansion in the city, where it
currently employs approximately 5,500 workers. Brooklyn is where the
company was founded more than 150 years ago.
Pfizer, which is the world’s largest pharmaceutical company, is
planning to purchase and renovate a 31-story building at 685 Third
Avenue in midtown Manhattan, where it leases space. It’s one of several
buildings there that make up the company’s New York City headquarters.
Pfizer is eligible to apply for up to $1.4 million in grants from
Empire State Development, the state’s economic development agency. The
New York City Economic Development Corp. has also offered the company up
to $46 million in incentives, in return for creating a total of more
than 4,300 new jobs by the end of the 15-year term of the economic
development expansion agreement.
The agreement helped persuade Pfizer to choose New York City over
various facilities that it operates out of state for consolidating and
expanding its work force.
In April, Pfizer completed a multibillion dollar acquisition of
Pharmacia Corp., whose facilities include sites in New Jersey and
Michigan. The deal expanded Pfizer’s already broad pipeline of
pharmaceutical products and made it possible for the company to achieve
savings through consolidation, even as it continues to grow. It followed
a merger nearly three years earlier between Pfizer and the
More than 400,000 jobs throughout New York State are linked to lower
cost electricity supplied by the New York Power Authority, which is the
largest nonfederal public power organization in the country.