N.Y. Power Authority to Support State Efforts To Keep GE Aviation Systems On Long Island:
Incentive Award Approved to Lower Equipment Company’s Electricity Costs
January 28, 2010
FOR IMMEDIATE RELEASE
WHITE PLAINS– New York Power Authority (NYPA) President and Chief Executive Officer Richard M. Kessel Thursday announced that a Suffolk County firm, GE Aviation Systems North America, will receive NYPA assistance to help offset the company’s electricity costs as part of a $10 million package of state and local government incentives spearheaded by Gov. David A. Paterson to support the manufacturing facility and protect some 250 jobs.
The NYPA Trustees Tuesday approved an Industrial Incentive Award for GE Aviation Systems’ Bohemia plant. The facility had been at risk of closing as a result of the equipment company’s consideration of consolidation measures involving its manufacturing plants in North America and Europe.
“We recognize the importance of contributing to efforts led by Governor Paterson to keep GE Aviation Systems on Long Island as the company seeks to lower its global operating costs to enhance its competitiveness,” Kessel said. “The difficult economic times call for innovative strategies for partnering with businesses to bridge the transition to a stronger economy. The Industrial Incentive Award that the NYPA Trustees approved Tuesday for GE Aviations Systems is in line with this approach and will help to ensure that the company’s Bohemia facility continues to be an integral element of the Long Island and New York State economies.”
Last October, Governor Paterson announced a series of grants, tax abatements and utility rate reductions to keep the Bohemia plant, with an annual payroll of $163 million, in operation. http://www.state.ny.us/governor/press/press_1022093.html
“We greatly appreciate the support being provided by Governor Paterson and his administration for the success of our Long Island manufacturing facility,” said Lorraine Bolsinger, president and chief executive officer of GE Aviation Systems. “GE is committed to growing our business on Long Island and will invest in capital equipment, building renovations and employee training.”
The Industrial Incentive Award, for a period of one year, will take the form of a discount on GE Aviation Systems’ electric rate, as applied to an annual level of electricity consumption agreed to by the company.
At their September meeting, the NYPA Trustees approved an extension of an Industrial Incentive Award Economic Development Plan to provide electric bill discounts to New York businesses at risk of closing or relocating to another state, as a result of the downturn in the economy. The Industrial Incentive Awards are linked to job commitments.
The economic development plan resulted in the announcement of awards last year to International Wire Group of Oneida County, Nucor Steel Auburn in Cayuga County and Positive Promotions in Suffolk County.
“The Industrial Incentive Awards reflect the priority being given under Governor Paterson for state government to bolster the efforts of businesses to lower their operating costs,” said Michael J. Townsend, NYPA chairman. “These awards are sound investments to help vital employers such as GE Aviation Systems get through these tough economic times.”
“The New York Power Authority is glad to contribute to the efforts spearheaded by the Governor to ensure that GE Aviation Systems remains a thriving part of the Long Island economy,” said Jonathan F. Foster, NYPA vice chairman. “Our Industrial Incentive Awards are an effective means of lowering electricity costs to protect key companies and their workforces in anticipation of improved economic conditions ahead.”
The Trustees’ approval Tuesday of the award to GE Aviation Systems followed a recommendation by the New York State Economic Development Power Allocation Board (EDPAB) that the NYPA board approve the grant. EDPAB makes recommendations in connection with various economic development programs administered by NYPA under New York State law that are linked to approximately 320,000 jobs at hundreds of enterprises across the state.
“The prolonged slump in the global and national economies underscores the value of programs such as those administered by NYPA for lowering electricity costs and helping key employers manage their costs of operation,” said Kenneth A. Schoetz, EDPAB chairman. “While there are signs of the downturn easing, businesses are still coping with difficult economic conditions underscoring the importance of these initiatives, including NYPA’s Industrial Incentive Awards.”
GE Aviation Systems may be able to renew the incentive award after one year provided it continues to meet its job commitments. The company also benefits from the Power for Jobs (PFJ) Program, one of the statewide lower-cost power programs that NYPA administers for businesses and not-for-profit organizations in return for job commitments.
GE Aviation Systems manufactures power conversion products and cockpit control assemblies for military and commercial aircraft. The Bohemia facility has been involved in airplane parts and components production since 1963.
■ 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 is a leader in promoting energy efficiency, new energy technologies and electric transportation initiatives. ■ It is the nation's largest state public power organization, with 17 generating facilities in various parts of New York State and more than 1,400 circuit-miles of transmission lines. ■ More than 80 percent of the electricity it 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, www.nypa.gov.