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GOVERNOR SPITZER ANNOUNCES LOW-COST HYDROPOWER FOR TWO WESTERN NEW YORK BUSINESSES
Will Create 58 New Jobs

Governor Eliot Spitzer today announced that the state will provide low-cost hydropower to two businesses in Tonawanda and Lewiston, which will create 58 new jobs.

“In our efforts to fuel economic expansion in Western New York, we know that low-cost hydropower will help drive job creation,” said Governor Spitzer. “My administration is currently developing regional blueprints for growth that target the specific strengths of each portion of the state as part of our continuing strategy to revive the Upstate economy. In Western New York, we must take advantage of the unique opportunities for economic expansion that the area’s proximity to Niagara Falls offers businesses.”

The New York Power Authority Board of Trustees (NYPA) today approved low-cost hydropower allocations to Unifrax, a Tonawanda manufacturer of high-performance insulation products, and Devil’s Hole Distilling Company, a startup company in Lewiston that will produce premium vodka and other distilled spirits.

The hydropower will come from the Niagara Power Project, which is located in Lewiston. It is the largest of NYPA’s 18 generating facilities, and is the single largest source of electricity in New York State.

Unifrax’s Tonawanda facility has been designated for a $20 million expansion to meet increased demand for its products. The allocation of 3,500 kilowatts of low-cost hydropower announced today is a key part of this expansion and is expected to help produce 50 new jobs.

Devil’s Hole Distilling Company, a new business that will operate a high-quality distillery at a farm it purchased in Lewiston, will also receive low-cost hydropower. The startup company, which will receive a 400-kw allocation, is expected to produce eight new jobs. Further boosting the state economy, it will also rely primarily on New York agricultural crops to produce its product line.

Frank S. McCullough, Jr., NYPA chairman said: “The latest allocations of Niagara hydropower, to Unifrax and Devil’s Hole Distilling Company, demonstrate the significance of low electric rates for spurring capital investments in Western New York and growing jobs for the economy. This is what the Niagara Power Project has long been synonymous with, as an engine for economic development, supporting more than 44,000 jobs at about 125 companies in the Buffalo-Niagara region.”

Assemblyman Robin Schimminger said: “The low-cost power from the Niagara project is essential for ensuring that Unifrax’s plans for the multimillion dollar expansion are carried out in Tonawanda, as expected, for 50 new jobs. It’s the reason I urged the Power Authority to approve the allocation, to reinforce the advantages of Tonawanda over the company’s overseas manufacturing facilities. My thanks to Chairman McCullough and NYPA President Roger Kelley for their support of this power application.”

Senator Mary Lou Rath said: “This investment represents another tremendous boost for the Western New York economy. By working with Unifrax in Tonawanda, the State is investing in our community and providing a dynamic opportunity for the WNY workforce. This announcement continues the momentum necessary to provide low-cost power solutions, highlights the importance of successful public/private partnerships, and is an indication of more good news to come.”

Senator George Maziarz said: “It has always been a priority of mine to make sure that power generated in Western New York stays in Western New York. These allocations make opportunities for business growth possible. I wish Devil’s Hole Distilling Company in Lewiston the best of success as a great new complement to our agricultural industry.”

Assemblywoman Francine DelMonte said: “Niagara County is fast becoming a magnet for growth in wine production and now specialized vodka. I am thrilled that the Power Authority saw the merits of providing low-cost power to Devil’s Hole Distillery and believe its operations will further expand Niagara’s reputation in niche agri-business ventures.”

Robert A. Gallucci, one of the founding members of Devil’s Hole Distilling Company, and a Niagara County resident, said: “Our plans for Devil’s Hole Distilling are nothing short of ambitious, starting with a premium branded vodka associated with Niagara Falls and the Niagara River. Harnessing hydropower for the distillation process imprints our products with an indelible stamp of ‘Made in Western New York,’ to go along with the fruit we’ll be purchasing from Niagara County farmers.

The Western New York Advisory Group (WNAG) recommended that Unifrax and Devil’s Hole Distilling receive these latest hydropower allocations. WNAG consists of representatives from the New York Power Authority, National Grid, Empire State Development Corporation, the Buffalo Niagara Enterprise and the Niagara County Center for Economic Development. Its mission is to identify qualified companies to receive available industrial power from the Niagara project.

Unifrax and Devil’s Hole Distilling are the latest of 82 firms to be allotted hydropower since the formation of the WNAG in 2003. During that time, the NYPA trustees have approved allocations totaling more than 100 megawatts in return for commitments to create 4,285 jobs.