Governor Hochul Announces New York Power Authority Economic Development Awards That Will Spur More Than $104 Million in Private Capital Investments

Governor Kathy Hochul today announced economic development awards from the New York Power Authority (NYPA) that will spur more than $104 million in capital investment and support 287 jobs in Western New York and the North Country. The awards, approved today by the NYPA Board of Trustees, include low-cost power allocations through the regional Western New York Hydropower program. Additionally, the NYPA board approved funding awards totaling more than $10 million under the Western New York and Northern New York Power Proceeds programs.

"Affordable, reliable and emission free hydropower is one of New York's greatest economic assets," Governor Hochul said. "Through NYPA, New York is leveraging low-cost hydropower to incentivize major capital investments and deliver well-paying jobs for New Yorkers. The awards approved today by the NYPA board will support more than $104 million in new investments and support hundreds of jobs, strengthening New York's clean energy economy."

New York Power Authority President and CEO Justin E. Driscoll said, "NYPA low-cost hydropower allocations and targeted funding awards remain a key driver of regional economic development. The awards approved today by the NYPA board will help businesses expand, retain jobs and invest in their future while supporting the long-term vitality of communities across Western New York and the North Country."

Western New York

At today's meeting, the NYPA Board of Trustees approved 2,200 kilowatts (kW) of low-cost Niagara hydropower to two Erie County firms, Bericap and Agile Cold Storage.

Agile operates automated, temperature-controlled warehouses for the frozen food industry. The firm was awarded 660 kW of Niagara hydropower to support the construction of a 133,000-square-foot warehouse in West Seneca. The new site will include storage and processing spaces and new packaging lines. The nearly $28 million project will lead to the creation of 44 jobs.

Bericap, a manufacturer of plastic closures and caps, primarily serves the food, beverage, pharmaceutical, and automotive industries with manufacturing sites worldwide supporting global brands such as Coca-Cola and Kraft-Heinz. The firm was awarded a 1,540-kW low-cost Niagara hydropower allocation to support the establishment of a 100,000-square-foot manufacturing facility in Cheektowaga. The new site will expand the firm's operational capacity to help meet increased customer demand in the Northeast and Great Lakes regions. The more than $22 million project includes building renovations, retrofits and production machinery and equipment purchases. Through the expansion project, Bericap will create 40 new positions in Western New York.

Low-cost Niagara hydropower is available for eligible companies located within a 30-mile radius of the Power Authority's Niagara Power Project and in Chautauqua County.

The NYPA board also approved Western New York Power Proceeds funding totaling more than $8 million to Buffalo Go Green, the Buffalo and Erie County Historical Society and Newstead Ranch in Erie County.

Buffalo Go Green, a minority- and veteran-founded nonprofit, was awarded $218,000 in NYPA funding to support the more than $1 million renovation of a 7,500-square-foot facility in East Buffalo into a state-of-the-art hydroponic farm. The facility will also include an observation area and classrooms to support community-based workforce training, culinary, and nutrition education programs. When complete, the facility will improve access to fresh food in the region.

The Buffalo and Erie County Historical Society, also known as The Buffalo History Museum, is a not-for-profit organization dedicated to discovering and preserving the rich history of Western New York and the City of Buffalo. The museum was awarded $1.85 million in NYPA funding to support the restoration and expansion of the historic Reinstein Center, a 1920-built structure located adjacent to the Museum's campus in Delaware Park. The $6.5 million rehabilitation project will bring the building in line with New York State Division for Historic Preservation standards and includes the construction of a new addition that will significantly expand programming and event capacity to support concerts, performances, receptions, and community events. Once completed, the renovated facility will provide a dedicated, ADA-accessible space for educational programming, school groups, summer camps and community activities. Empire State Development (ESD) previously awarded the firm a $890,000 Regional Council Capital Fund grant to support the project.

Newstead Ranch, a family-owned agricultural enterprise operating as Kreher Family Farms, was awarded $6.4 million in Power Authority funding. The investment will support a $32 million construction project to create a new standalone egg cleaning, packing and shipping facility. Designed to process eggs from more than one million hens across multiple Kreher farms and contract growers, the facility will reduce reliance on out-of-state processing. Additionally, the new facility will mitigate biosecurity risks associated with Avian Influenza, preserve farmland, and boost the resilience of the local food supply chain, contributing to rural economic development in Western New York. The firm was previously awarded $250,000 in Excelsior Job Program tax credits from ESD.

New York Power Authority Chairman John R. Koelmel said, "The awards approved today will drive $90 million in capital investment in Western New York and underscores the Power Authority's essential role in fueling economic development in the region. The Niagara Power Project does more than generate electricity - it supports significant investments in our communities and empowers businesses to expand and grow their workforce."

Northern New York

At today's board meeting, $2 million in Northern New York Power Proceeds funding was awarded to North Country Dairy and Twin Rivers Paper Company in St. Lawrence County.

North Country Dairy, a wholly owned subsidiary of Upstate Niagara Cooperative - a farmer-owned dairy cooperative representing approximately 260 New York State farms and an existing NYPA customer - was awarded $1 million in NYPA funding to support critical upgrades to its wastewater treatment system and on-site lagoon. The improvements are essential to sustaining the facility's operations and will better position the company for future growth. The NYPA investment directly supports the retention of 128 local jobs. The firm was previously awarded $1 million in funding support through the ESD Regional Council Capital Fund.

Twin Rivers Paper Company was awarded $1 million in NYPA funding to support the acquisition of assets from Potsdam Specialty Papers, a developer and manufacturer of specialty latex, acrylic and other saturated base papers. The NYPA award is essential support that will provide the firm with the resources needed to restore the plant to optimal operating performance, ultimately preserving 70 jobs that otherwise would have been lost. The $9.2 million project also includes machinery and equipment purchases that will further improve the reliability and productivity of the paper mill. Governor Hochul recently announced a $1.82 million Regional Council Capital Fund grant and up to $180,000 in performance-based Excelsior Jobs Program tax credits from ESD in support of the acquisition to preserve North Country jobs.

The NYPA funding awards are made possible through the Western New York and Northern New York Power Proceeds Funds, comprised of net earnings resulting from the sale of unused hydropower generated at the Power Authority's Niagara Power Project and St. Lawrence-FDR Power Project and stem from power proceeds legislation signed into law in 2012 and 2014, respectively.

Empire State Development President, CEO and Commissioner Hope Knight said, "These awards demonstrate the power of a coordinated state strategy that prioritizes regional growth. By pairing NYPA's low-cost power with ESD's targeted Regional Council grants and Excelsior tax credits, we are providing a comprehensive support system that empowers businesses to expand and historic institutions to flourish."

State Senator April Baskin said, "Today's NYPA awards are a major investment in Western New York's economy. In Cheektowaga, Bericap's expansion will create new manufacturing jobs and Buffalo Go Green's innovative hydroponic farm in East Buffalo will expand access to fresh food while creating opportunities for workforce training and education. These projects are helping build a stronger, more resilient future for our communities."

State Senator Jeremy Zellner said, "These are the kinds of investments that help keep Western New York moving in the right direction. The Buffalo History Museum is an important part of our community's fabric and continuing to invest in institutions like it helps strengthen Buffalo for the future. I'm grateful to Governor Hochul and NYPA for continuing to support projects that invest back into Western New York."

Assembly Majority Leader Crystal Peoples-Stokes said, "Access to fresh food in our region, especially on the east side of Buffalo has been a work in progress for a long time. Funding from the Power Authority to Buffalo Go Green, in support of a facility renovation project, will help meet the needs of the community in terms of access and education."

Assemblymember Jonathan Rivera said, "Affordable hydropower is one of Western New York's greatest economic advantages, and these investments demonstrate how strategic public resources can drive meaningful economic growth across our region. From advanced manufacturing and food supply infrastructure to community-based agriculture and cultural preservation, these projects will create jobs, strengthen local industries, and improve quality of life for residents throughout Erie County. I commend Governor Hochul and the New York Power Authority for continuing to invest in initiatives that support long-term economic resilience and opportunity for Western New York communities."

About the New York Power Authority

The New York Power Authority is the largest state public power organization in the nation, operating 17 generating facilities and more than 1,550 circuit-miles of transmission lines. More than 80 percent of the electricity NYPA produces is clean renewable hydropower. NYPA finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. For more information visit www.nypa.gov and follow us on LinkedIn, Twitter, Facebook, Instagram, and Substack.