At a presentation in January, UVM Vice President for Research Kirk Dombrowski (left), and Kenneth McAvey, Vice President and General Manager at GF (right), listen as VGS President and CEO Neale Lunderville explains how they could lower carbon emissions by using renewable electricity to extract hydrogen from water to reduce natural gas consumption at the GF plant in Essex Junction. VBM photo
Vermont Business Magazine GlobalFoundries Inc (Nasdaq: GFS) in Essex Junction today notified the Vermont Public Utilities Commission that it would continue to pursue becoming an independent electric utility in Vermont. It would also follow the state's clean energy goals. The PUC, the state regulator, last month issued a decision that if GF continued to seek such designation, it would still have to follow the state's renewable energy goals. GF is seeking independent utility status in an effort to lower its electric bill. In its original petition, it asked that it not be held to the clean energy standard. The PUC stated that it must, but could still seek to become its own utility.
General Manager of Fab 9 in Essex Junction, Ken McAvey, issued the following statement on the company’s next steps with the Vermont Public Utilities Commission (PUC) to operate a self-managed utility (SMU):
“Today, GF notified Vermont’s PUC that we will continue with our petition for approval to operate an SMU in compliance with Vermont’s Renewable Energy Standard (RES). GF appreciates the PUC’s continued efforts in reviewing our petition, and we have proposed a suggested schedule of next steps.
“The continuation of our petition benefits both GF and the state of Vermont. It will facilitate our mutual commitment to high environmental standards and renewable energy, as well as provide the means to keep GF cost-competitive, supporting high-paying jobs.
“Not only will GF continue to follow all environmental laws rules and regulations, but we also are renewing our ongoing commitment to energy efficiency investments and reiterating our commitment to 100% carbon-neutral electricity.
“Taking responsibility for and managing our energy portfolio will pave the way for investments in renewable energy projects such as the green hydrogen initiative we recently announced with UVM and VGS, as well as possible future on-site solar fields and battery storage development projects.
“We thank the PUC for the opportunity to move forward with our petition for an SMU and look forward to continuing the process. We are confident that our proposal will allow us to continue our global environmental leadership role while becoming more cost competitive.”
GlobalFoundries to make its Essex Junction facility an independent energy utility.
However, McAvey told VPR that it has no intention of becoming a public service company, like GMP.
“We will not be in the business of selling power, we’re not going to be a public utility company,” McAvey told VPR. A final order from the PUC could come by September 1.
Last April, GlobalFoundries filed a petition with the Public Utility Commission (PUC) to independent energy utility, the PUC on February 17 denied the request because it would require an exemption to the state's renewable energy requirements.
The PUC order 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."
Effectively, even as a separate utility, GF would still have to follow the same renewable energy standards.
GlobalFoundries, and previous owner IBM before it, has long complained about electric costs in Vermont.
While it gets a wholesale rate from Green Mountaiin Power and is its biggest customer, GF maintains that its electric costs are 80 percent higher than what it pays at its two plants in New York State. New York discounts its rates for its industrial customers much more aggressively than Vermont, which offers lower rates to residential customers. New York rates overall are slightly lower than in Vermont, industrial rates are much lower in New York (6.59 vs 11.75: Cents per Kilowatthour December 2021).
GF said the Vermont plant (Fab 9 in the GlobalFoundries worldwide system), consumes 8 percent of the state's total electricity usage. This is more than the entire city of Burlington.
As a separate utility, it could seek cheaper option from which to buy its own electricity. Its original petition to the PUC did not commit itself to following the state's Vermont’s Renewable Energy Standard. Those standards have aggressive goals to reduce green house gas emissions (retail electric sales from renewable energy to reach 75% by 2032.)
The proposed Climate Action Plan would require utilities get 100 per of their electricity from renewable energy sources by 2030.
GF is the state's largest for-profit employer with about 2,000 employees.
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.
Forward-Looking Statements
This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.
Essex Junction, Vt., March 11, 2022 – GlobalFoundries Inc