Businesses Call for Unleashing Hydropower's Economic Power

By Matt Glynn

For Sorrento Lactalis, low-cost power holds down costs at its Buffalo cheese products plant and prevents work from being shipped to a sister plant.

Polymer Conversions in Orchard Park says its power bill could make the difference between the company expanding locally or in Pennsylvania.

And state Sen. George D. Maziarz, R-Newfane, contends low-cost power could open the door to potentially "billions of dollars" in investment by an international company that he said is considering expanding here.

That was a sampling of the testimony heard downtown Monday by a panel that will advise the governor and State Legislature on how to improve economic development programs tied to low-cost power.

Twenty-two speakers offered opinions, and some common themes emerged: Low-cost hydropower is crucial to retaining jobs, as well as attracting them. Allocations should reward investment, not just job-creation projections. And Western New York should be given some kind of "home-field advantage" for the hydropower, since it is created here.

The panel, called the temporary Commission on the Future of New York State Power Programs for Economic Development, is gathering ideas at a total of four hearings around the state this month. Buffalo's was the first one.

On Monday, speaker after speaker, including politicians, business owners and business advocates, implored the panel to reform power-incentive programs so that the region could fully tap hydropower's potential for economic growth.

Maziarz would not reveal the company that he said could invest billions here, but he assured the panel it was a household name.

He said such a prospect reinforces the need to update the criteria used to determine eligibility for low-cost power allocations from the New York Power Authority, so that large-scale investments are recognized.

"These are high-paying, engineering, technical jobs," Maziarz said. "I would like it to be in the thousands (of jobs), but it will probably be in the hundreds. But I think the investment is the key. And they are ready to start tomorrow."

A number of business representatives said low-cost power helps them stay competitive in a high-cost state, and said job retention should be recognized as a priority, along with new-job creation.

Bob Planter of Sorrento said low-cost power cuts the Buffalo plant's energy bill by $300,000 a year, and prevents work from being moved to another plant in Idaho.

Polymer Conversions has grown into a company with $11 million in annual sales, a payroll of more than $3.5 million, and 82 employees, company officials said. It makes plastic injected molding components used by medical products makers and other companies.

The family-owned company is deciding where to carry out a 20,000-square-foot expansion, said Benjamin Harp, chief operating officer.

Harp said the company was grateful for a low-cost power allocation awarded by the Power Authority this year. But he said the company is still thinking about its long-range power expenses, and how its needs match up with the criteria used by the economic development programs as it looks ahead to future machinery replacements.

"Polymer Conversions will make a decision by the end of this month whether (the expansion) will be here or in the state of Pennsylvania," Harp said.

Andrew J. Rudnick, president and chief executive officer of the Buffalo Niagara Partnership, called for treating low-cost power as more of a "regional asset," since it is generated here, and empowering a local body to make allocations, not just recommendations.

He also insisted that the region regain control of a 70-megawatt block of cheap power that the State Legislature last year took from the region and shared with the rest of the state, a point echoed by several other speakers.

"It's not too late to implement a better process," Rudnick said. "There are more than a dozen active projects considering moving to or expanding in our region, and they would require more than 100 megawatts of low cost hydropower."

The Buffalo Niagara Enterprise, which promotes the region to businesses, generated 68 leads from a marketing campaign built on marketing the region as a hub of low-cost power, said Michael Licata, senior business development representative.

"When we undergo an enormous marketing effort," he said, "we cannot make false promises."