COLCHESTER, Vt. — Green Mountain Power (GMP) today announced a multi-year agreement with GlobalFoundries (GF) to provide the Essex-based chip manufacturer, formerly IBM, with more stable energy costs. The plan is subject to regulatory review and approval.
GMP provides among the lowest cost energy in New England, but regional power costs outside of GMP’s control are still significantly higher than in neighboring New York, which operates through a different grid system. These costs increase expenses for many organizations, including GF which has operations in both states. To support a long-term future in Vermont, it is critical for high-tech manufacturers such as GF to secure a more competitive and predictable cost structure for energy. Green Mountain Power and other state partners have worked together for years to support IBM and now GF in their continued operations in Vermont.
“This agreement is great news for GF and great news for Vermont because it provides stability and predictability for the company, while ensuring our customers continue to receive cost-effective and highly reliable energy,” said Mary Powell, president and CEO of Green Mountain Power. “The positive economic impact of GF’s presence in Vermont is significant, and we feel strongly that we, along with our state partners, should continue to do what is reasonable and responsible to support keeping these important manufacturing jobs here in Vermont.”
GF employs approximately 2,500 in Vermont and is GMP’s only Transmission Class customer, which means it does not utilize GMP’s distribution grid used by all other customers. Instead, GF invests in and maintains its own distribution grid at its Essex location. The agreement between GMP and GF lowers GF’s rate by 2.73 percent as recommended in rate design, beginning Jan. 1, 2019 and freezes that through Sept. 30, 2022 giving them the predictability and stability they need. In exchange, GF agrees to maintain its power use on site, and forgo credits or rate cuts flowing to other GMP customers during this time, including the significant tax reform credits of over $27 million that GMP will return to customers next year. GMP and GF also agree to work together to draw more business to the unused part of the GF campus to further strengthen the economy, and to promote new energy use onsite with controllable load, and providing additional value for customers.
“GlobalFoundries provides thousands of good-paying jobs and has been a great employer for decades. We appreciate the hard work to support its ongoing success,” said Representatives Linda Myers (R – Essex Town) and Dylan Giambatista (D – Essex Junction) in a joint statement.
The plan is subject to review and approval from state regulators and if approved, would begin January 1, 2019.
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