Governor Spitzer Announces Hydropower Deal Between State and Alcoa Inc.

Press Release

GOVERNOR SPITZER ANNOUNCES HYDROPOWER DEAL BETWEEN STATE AND ALCOA INC.
Landmark Agreement Will Retain Hundreds of North Country Jobs

Governor Eliot Spitzer today announced that an agreement has been reached with Alcoa, Inc., which has committed to maintaining hundreds of North Country jobs through 2043 in exchange for the continuation of low-cost hydropower to its Massena plants. Alcoa, Inc. - St. Lawrence County's largest employer and the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities - agreed to invest approximately $600 million for the major overhaul of its Massena East smelter and to retain approximately 1,065 jobs between its East and West Massena plants for at least 30 years.

The agreement provides that, as of July 2013, the New York Power Authority (NYPA) will continue to supply 478 megawatts of power for 30 years, and may, under certain economic conditions continue the contract for an additional ten years. The Alcoa power accounts for approximately 60 percent of the St. Lawrence-Franklin D. Roosevelt Power Projects' generating output.

"This agreement signifies the importance of Alcoa to the North Country economy, reflects my Administration's strategy to capitalize on distinctive regional assets and needs and demonstrates the significant value of low-cost hydropower for economic development purposes," said Governor Spitzer. "The loss of Alcoa would have crippled the local economy, and this agreement ensures that these important jobs will remain in New York State for years to come. The agreement also reflects a partnership between business, labor and government aimed at promoting growth in the North Country."

Additionally, Alcoa will fund a $10 million "North Country Economic Development Fund," which would be jointly administered by NYPA and Empire State Development. It will be used exclusively for creating jobs and capital investments in the region, including the counties of St. Lawrence, Franklin, Essex, Jefferson, Lewis, Hamilton and Herkimer.

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