Company responds to Vermont PUC decision on petition for Self-Managed Utility
Vermont Business Magazine GlobalFoundries Inc (Nasdaq: GFS) (GF) has issued the following statement in response to the decision from Vermont’s Public Utilities Commission (PUC) on the company’s petition to become a self-managed utility (SMU). GF said it is committed to the state's energy and environmental goals and that it will move ahead with its petition to become a self-managed utility at the Essex Junction site. GF employs about 2,200 in Vermont.
The PUC order on February 17 stated that while it could approve creating a separate utility, "We do not have the statutory authority to exempt GlobalFoundries from the statutory requirements imposed on all utilities by Vermont’s Renewable Energy Standard."
This would throw the energy standard issue to the Legislature, which Republicans said they would take up.
“GF appreciates the PUC’s efforts in thoroughly reviewing our petition, and we are aligned with their recommendation to continue our petition under Vermont’s Renewable Energy Standard (RES),” said Ken McAvey, GF Fab 9 VP & General Manager. “Our petition is about two things, first meeting higher and higher environmental standards and second access to energy costs that are competitive globally.”
“The actions we’ve taken as a company show that we share the State’s commitment to renewable energy. GF always has and will continue to meet and even do better than Vermont’s environmental guidelines,” continued McAvey. “Because we believe that our proposal actually does more to protect Vermont’s environment, to increase use of renewable energy, to keep Vermont energy cost-competitive and to support good-paying jobs for the people of Vermont, we intend to move ahead with our petition.”
GF has committed to a 100% carbon-neutral energy portfolio in Vermont. Globally, the company will continue to invest and is committed to a 25% reduction in greenhouse gas emissions from 2020-2030, even while increasing output 1.6 times.
“As Vermont’s largest private manufacturer, GF is a major contributor to the regional and state economy, and we are a leader in environmentally responsible operations,” said McAvey.
McAvey added, “Our petition is about competitive manufacturing energy costs in Vermont. Today, energy costs represent 50% of our Vermont facility’s operating costs, approximately double what our facilities pay a few miles away. Our need to be competitive does not change our commitment to leadership in environmentally responsible operations in Vermont and across the world.”
While overall electric costs are only slightly higher here than in New York, because of how rates are shifted between residential, commercial and industrial customers, industrial rates are 74.2 percent higher in Vermont.
About GF
GF is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com.
Essex Junction, Vt., Feb. 21, 2022 – GlobalFoundries Inc
