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NYPA Approves Hydropower Extensions to Nine Western New York Companies

Paul DeMichele

November 8, 2007


LEWISTON—The competitive operations of nine Western New York companies will be supported by extended contracts for low-cost hydropower from the New York Power Authority’s (NYPA) Niagara Power Project, with the extensions linked to the retention of more than 1,800 jobs.   

“These contract extensions are prime examples of the benefits of low-priced Niagara hydropower and are part of the concerted efforts by local and state officials to encourage a vibrant Western New York economy,” NYPA Chairman Frank S. McCullough, Jr. said. “The Niagara project figures prominently in these endeavors, with more than 44,000 jobs in the region linked to its hydropower, which is some of the lowest-cost electricity in the country.” 

The NYPA Board of Trustees on Oct. 30 approved extended hydropower service to the nine companies, whose products signify the broad array of businesses in Niagara, Erie and Chautauqua counties depending on the Niagara project. The five-year extensions, accounting for a total of 11,100 kilowatts (kw), are supported by Expansion Power, one of the two large blocks of industrial power from the project reserved for Western New York businesses under New York State law. (The other quantity of power is called Replacement Power.) 

The companies receiving extensions, along with their allocations and job commitments, are as follows:        

Niagara County

Tulip Corporation, Niagara Falls, 300 kw, 110 jobs. The plant, which has operated since the beginning of the last century, manufactures automotive battery cases, covers and safety vents, as well as recycled materials used for new battery components.   

Erie County

3M Company, Tonawanda, 500 kw, 330 jobs. The facility produces cellulose sponge and sponge laminate products. 

C&S Wholesale Grocers, Cheektowaga, 300 kw, 50 jobs. C&S has provided warehouse and distribution services to supermarket chains, independent grocers and military facilities across the nation for more than 85 years. 

Delphi Automotive Systems, Amherst, 500 kw, 124 jobs. The facility produces plastic-molded components--primarily radiator tanks--for the automotive industry. 

International Imaging Materials (IIMAK), Amherst, 1,250 kw, 393 jobs. IIMAK is an international business that manufactures thermal transfer ribbons and associated products for the printing industry. 

Chautauqua County 

Dunkirk Specialty Steel (DSS), Dunkirk, 5,800 kw, 180 jobs. DSS manufactures round and shaped bars, coiled rods and wire products from specialty stainless steel billets. (The allocation under the extended contract reflects a reduction of 1,000 kw since the company had not utilized the full amount under its previous contract.) 

Fairbank Farms, Ashville, 700 kw, 110 jobs. Fairbank is a medium-sized ground beef processing facility that remains the only locally owned and operated ground beef facility serving the retail supermarket trade in the Northeast. 

Special Metals Corporation (SMS), Dunkirk, 1,000 kw, 81 jobs. SMC, founded in 1952, is a world leader in super-alloy technology, providing products for the aerospace market. 

The Red Wing Company, Fredonia, 750 kw, 440 jobs. The company produces various foods, such as peanut butter, preserves and jelly, and salad dressing.

 About NYPA:

■    NYPA 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 is a leader in promoting energy-efficiency, new energy technologies and electric transportation initiatives.  ■    It is the nation’s largest state-owned electric utility, with 18 generating facilities in various parts of the state and more than 1,400 circuit-miles of transmission lines.

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