Cuomo Announces 28 Jobs to Be Created in Southern Tier Through Third Round of Recharge NY Power Allocations

By WBNG News

Cuomo Announces 28 Jobs to Be Created in Southern Tier Through Third Round of Recharge NY Power Allocations

September 24, 2012 Updated Sep 24, 2012 at 1:44 PM EST

(WBNG Binghamton) New York Governor Andrew M. Cuomo on Monday announced that two businesses in the Southern Tier -- Hopshire Farm LLC and Norwich Pharmaceuticals Inc. --  will create an estimated 28 jobs as a result of low-cost power allocated through the third round of the ReCharge NY power program.

According to a news release issued Monday:

The newest allocations are slated for companies throughout the state, mainly to manufacturers and processing facilities of varied industrial and agriculture products. The Southern Tier recipients, along with their allocations and job and capital-investment commitments, are listed in the chart below:

Company

County

kW

Jobs

Project Capital Investment

Hopshire Farm LLC

Tompkins

10

1

$430,000

Norwich Pharmaceuticals Inc.

Chenango

450

27

$39,217,000

Southern Tier Totals:

 

460

28

$39,647,000

 

The ReCharge NY program was created by the Governor and put in place by the Legislature in 2011. The program is designed to spur economic development in all corners of the state by providing low-cost power to businesses and other entities that agree to create or retain jobs.

"New York State is coming back stronger than ever before, and to help fuel our economic recovery, government is partnering with the private sector to give businesses the tools, confidence, and resources they need to create jobs and hire New York workers now," Governor Cuomo said. "Since we launched ReCharge NY a few months into my administration, it has already helped retain thousands of jobs, and generate tens of millions of dollars in private sector investments in communities across the state. Today's allotment of additional grants of low-cost power will continue the extraordinary success of ReCharge NY, while demonstrating that an innovative, entrepreneurial government can truly work to rebuild our economy."

The first two rounds of ReCharge NY provided low-cost power allotments to more than 600 businesses and 76 not-for-profit organizations, helping retain nearly 385,000 jobs. The power allocations announced today by the Governor were approved this morning by the New York Power Authority (NYPA) Board of Trustees, and are the first allocations from the ReCharge NY program to be tied directly to job creation. Statewide, 38 businesses across New York State will create an estimated 3,200 jobs as a result of low-cost power allocated through the third round of the ReCharge NY power program.

The enactment of the ReCharge NY legislation in 2011 was a major achievement in New York State's efforts to partner with businesses across the state in the harnessing of its lower-cost power for economic development. Over prior years, a number of efforts had been undertaken in this direction only to fall short. ReCharge New York replaced two existing initiatives—the Power for Jobs (PFJ) and Energy Cost Savings Benefit (ECSB) Programs. Unlike ReCharge New York, those two programs provided for only short-term allocations, limiting their effectiveness as an economic development tool.

The allocations approved today total more than 29 MW and will be drawn from 200 MW specifically reserved for business expansion and attraction under the 910-MW program. One megawatt is enough power for meeting the electricity needs of 800 to 1,000 typical homes. To date, the NYPA trustees have awarded approximately 716 MW of power under the program.

NYPA worked in close consultation with the Governor’s Regional Economic Development Councils to evaluate the ReCharge NY applications to ensure that local economic development strategies were given sufficient weight in the consideration of the applications. In addition to jobs and capital investment commitments, other evaluation criteria included the significance of the cost of electricity to the overall cost of doing business, applicant’s risk of closure or curtailing operations, the significance of the applicant’s facility to the local economy, and its commitment to energy efficiency.

The ReCharge NY program offers up to seven-year power contracts. Half of the power under the program—455 mw—is low-cost hydropower from NYPA’s Niagara and St. Lawrence-Franklin D. Roosevelt hydroelectric projects. The remaining 455 MW is economical power secured by NYPA from market sources.

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