By Joyce Kryszak
Buffalo, NY – The Delphi plant in Lockport Tuesday won an additional 10 megawatts of low-cost power from the New York State Power Authority.
NYPA voted unanimously to raise the company's total allotment of low-cost power to more than 24 mega watts. That's more than most companies in the state receive. And it will save Delphi millions of dollars in operating costs.
But company and state officials say the enticement was needed to help secure the Lockport plant and its thousands manufacturing jobs. State Senator George Maziarz says the state is doing its part to keep the plant open.
"It clearly lowers their cost of doing business in Lockport, which is what they said they needed to do in order to be competitive in the world market -- and the state of New York has stepped up to the plate," said Maziarz.
But Delphi officials say the low-cost power deal isn't a home run for Lockport. Lindsey Williams is Corporate Affairs Manager for Delphi in Detroit. Williams called the NYPA decision very good news -- but not a guarantee the plant will stay open. He says worker compensation reform is still at play and a major factor.
"We have operations in Lockport, as well, so we have a fairly large contingent of Delphi employees in New York state," said Williams. "And when we look at the cost of doing business in New York versus the cost of doing business in many other states, we have to really weigh where we can be competitive. And these are huge steps in terms of making our operations in New York more competitive."
But Williams says the fate of any of Delphi's US plants hinges on union concessions. The company once again delayed a bankruptcy filing until March 31st in hopes an agreement will be reached. US Congressman Brian Higgins says the tough competitive climate for companies such as Delphi make the availability of low-cost power even more crucial.
"It's the one thing that Western New York has that is unique to our region," said Higgins. "And the Niagara Power project is made possible by harnessing the unique natural resources of Western New York as an economical development and life quality tool."
Higgins says Ford and other auto industry companies in Western New York should also be lining up for more low-cost hydro power. Higgins believes the allotment to Delphi proves NYPA has plenty to offer.