Power allocations backed

WHITE PLAINS — The state Economic Development Power Allocation Board has recommended that a Lowville facility continue to receive an allocation of 2,476 kilowatts of ReCharge NY Power.

During its meeting on Tuesday, the board recommended the transfer of four ReCharge NY Power program allocations from Kraft Foods Global, Inc. to Kraft Heinz Foods Company in order to address organizational changes. The board had previously recommended approval of transfers of ReCharge NY Power allocations in similar circumstances.

The New York Power Authority had previously awarded Kraft Foods 1,210 kilowatts for use at its Kraft Foods facility in Walton, which produces packaged dairy products; 2,520 kilowatts for use at its Avon facility, which produces Cool Whip and Oscar Mayer Lunchables; and 2,476 kilowatts for use at its Lowville facility, which produces Philadelphia-brand cream cheese. They had also approved 1,510 kilowatts for use at the Lowville facility, although that allocation has not yet been placed into service yet.

“This is for an expansion that hasn’t been completed yet,” Eric Bowers, NYPA’s director of economic development, said.

He said Kraft Foods recently merged into Kraft Heinz and, as a result, the facilities are now operated by Kraft Heinz. Because of the merger, the companies asked that the previously approved power allocations be transferred to Kraft Heinz.

Mr. Bowers said the merger will not result in changes to operations at any of the facilities, and Kraft Heinz has indicated it will honor all terms and commitments made by Kraft Foods Under the Kraft Foods ReCharge NY Power sale agreements with the Power Authority.

NYPA trustees must approve the transfers, but there must be no material reduction in the base employment level or capital investment commitments associated with the Kraft Foods allocations because of the transfer.

Johnson Newspapers 7.1

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