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NYPA hydropower allocation to support creation of 200 jobs at General Motors Plant in Lockport


Tue, May 24th 2022 03:00 pm

NYPA board approves support for $137 million GM investment in Western New York

√ Board also extends COVID-19 fiscal relief program for economic development power customers

The New York Power Authority board of trustees approved a low-cost hydropower award to General Motors Components Holdings, a subsidiary of General Motors, that will support nearly 1,450 jobs – 200 newly created – at its plant in Lockport. The Niagara hydropower will support a $137 million investment by the firm that will enable the production of critical components for electric motors at its Western New York location.

Gov. Kathy Hochul announced the expansion earlier this year along with additional state support from the Empire State Development Corp.

In addition, the NYPA board also extended fiscal relief to its economic development power customers during the ongoing COVID-19 pandemic and direct impacts to the global economy.

GM Expansion

The NYPA board approved the 3,900-kilowatt (kW) hydropower allocation to GM for its expansion project, which includes the construction of a new building and the purchase and installation of machinery used in the production of the stator module – a key component in an electric motor. The project is expected to complete in 2025.

The Lockport facility will continue to build a variety of components that support GM’s current truck and SUV production. The location currently produces radiators, condensers, heater cores, evaporators, heating and cooling modules, oil coolers and other components used in a variety of GM trucks.

The GM application was considered under the Green Jobs Evaluation Incentive Plan approved by the NYPA trustees in December 2020. The plan allows for the consideration of the impact of green jobs on the state’s economy when evaluating applications for NYPA power.

“Low-cost hydropower allocations from the Niagara Power Project continue to drive the advancement of New York’s clean energy economy,” said John R. Koelmel, NYPA chairman and Buffalo resident. “This transformative investment from General Motors, a long-time NYPA customer, will create 200 good-paying jobs and accelerate our nation’s transition to sustainable methods of transportation.”

General Motors Components Holdings was established in 2009 – the location in Lockport, while under previous ownership, has received NYPA hydropower since 1961.

GM’s Lockport site was already receiving nearly 18,000 kW of low-cost hydropower in support of its existing workforce.

Low-cost Niagara hydropower is available for companies within a 30-mile radius of the Power Authority's Niagara Power Project and is linked to tens of thousands of existing jobs in the region.

COVID-19 Fiscal Relief Extension

NYPA is waiving applicable energy and demand rate increases for its economic development power customers that participate in its ReCharge New York, replacement power, expansion power and preservation power programs for the rate year July 1, 2022, to June 30, 2023.

NYPA Interim President and CEO Justin E. Driscoll said, “The last two years, during the COVID-19 pandemic, have been incredibly challenging for business throughout New York state. NYPA recognizes that its low-cost hydropower is critical to the operation of hundreds of businesses supporting hundreds of thousands of jobs, and we are committed to providing our full support to our economic development customers through this challenging time.”

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