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Dishing out the discounts

Almost lost in the news last week about the huge hydopower allocation to Globe Metals to reopen its Niagara Falls plant was the awarding of cheap electrity to three other Niagara Falls companies.

Keep in mind that the discount per job averaged about $4,200 when I calucated it a year ago, and that allocations made since January 2006 have leveraged about $14,000 in private investment per kilowatt.

Here are the new allocations approved by the New York Power Authority's governing board last week:

Saint-Gobain Cermaics, already one of the larger cheap hydropower recipients, got an extra 700 KW. The company says it will use the power to expand its plant, investing $5.8 million and adding 14 jobs.

  • Annual energy savings: $276,105 (all calculations are mine)
  • Cost per job: $19,722
  • Investment per KW: $8,286

Ceres Crystal Industries gets 2,000 KWH for a $5.43 million expansion to double its workforce from 50 to 100 jobs.

  • Annual energy savings: $515,272
  • Cost per job: $10,305
  • Investment per KW: $2,715

Ashland Advanced Materials is a startup that gets 3,500 KW. It plans to invest $8.5 million and create 75 jobs. The company is seeking additional subsidies from the state and county IDA.

  • Annual energy savings: $596,226
  • Cost per job: $7,590
  • Investment per KW: $2,429

tagged

Hyrdopower | Subsidies
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