N.Y. Power Authority To Offset Electricity Costs Of Port Jervis Manufacturer
July 28, 2010
FOR IMMEDIATE RELEASE
WHITE PLAINS—New York Power Authority (NYPA) President and Chief Executive Officer Richard M. Kessel announced Wednesday that Kolmar Laboratories, a Port Jervis cosmetic and pharmaceutical manufacturer, will benefit from a NYPA program for offsetting the electricity costs of companies at risk of relocating or closing as a result of the weak economy.
At its July 22 meeting, the NYPA Board of Trustees approved an Industrial Incentive Award (IIA) to Kolmar as part of a financial package of New York State and local government incentives of up to $6.4 million to secure the jobs of the manufacturing facility’s 400 full-time employees and underpin the company’s investment of $23 million to upgrade operations. (For further details, click on link for May 19 Empire State Development (ESD) press release: http://www.nylovesbiz.com/PressCenter/Data/2010/051910_KolmarLabs.pdf)
“The multiyear package of varied financial incentives for Kolmar Labs reflects the importance of this facility to the Orange County-area economy, with Kolmar long being one of the largest private employers in Port Jervis,” Kessel said. “As with other energy-intensive manufacturing facilities, electricity is a key component of production costs at Kolmar, whose long-term future in Port Jervis had been uncertain. We’re glad to be able to apply our resources as part of the proactive approach that the state has taken under Governor Paterson’s leadership to ensure the Port Jervis facility’s continued operation in the years ahead.”
The NYPA board approved an award of up to $300,000 that will take the form of a three-cent per kilowatt-hour discount on Kolmar’s electric rate for one year. The award may be extended for up to two additional one-year terms, for a total three-year amount of $900,000, provided that Kolmar continues to meet the agreed-upon job commitments.
“We’re extremely grateful to the Power Authority Trustees and Richard Kessel for this award,” Robert Edmonds, president and chief executive officer, Kolmar Laboratories Group, said. “This package of state and local government financial incentives removes the uncertainty regarding the future of our Port Jervis plant and will enable significant capital investments to enhance the facility’s competitiveness. This is very good news for our company and for the Orange County region and the state.”
The Power Authority’s Industrial Incentive Award program stems from an economic development plan that the NYPA trustees approved in September 2009 to help key companies and their workforces during difficult economic periods.
Beneficiaries of Industrial Incentive Awards, elsewhere in the state, have included International Wire Group and Owl Wire & Cable in the Mohawk Valley, Nucor Steel Auburn in Cayuga County, Buckingham Manufacturing in Binghamton, GE Aviation Systems in Suffolk County, and the Erie Canal Harbor Development Corp., in support of waterfront redevelopment efforts the agency is spearheading at Buffalo’s inner and outer harbors. The IIAs from the 2009 economic development plan have resulted in authorized annual awards of up to $12.5 million linked to approximately 3,900 jobs.
Kolmar had been considering relocating its Port Jervis operation out of state to lower its costs, but the package of New York State and local economic incentives convinced the company to stay in the River City, where it has operated nearly 70 years, and to undertake new investments. This includes $5 million for the purchase and installation of machinery and equipment and the development of new products.
■ 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. ■ Approximately 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.