Issuance of Certificate of Public Good by PUC approves formation and operation of GF Power LLC as the electric utility for GF’s facility in Essex Junction
Vermont Business Magazine GlobalFoundries (Nasdaq: GFS) (GF), a global leader in feature-rich semiconductor manufacturing, today announced that Vermont’s Public Utilities Commission (PUC) has issued a Certificate of Public Good (CPG) approving the formation and operation of GF Power LLC as the electric utility for GF’s facility in Essex Junction. GF, which consumes more electricity than the City of Burlington, will not retail or distribute energy like a traditional utility.
“GF is pleased with the PUC's decision to issue the CPG approving the formation of our electric utility, which will assist GF in making our Essex Junction site more globally competitive,” said Ken McAvey, GF Vice President and General Manager of Fab 9 in Essex Junction. “We appreciate the partnership with Green Mountain Power (GMP), the Department of Public Service and VELCO, as well as our community partners, Greater Burlington Industrial Corporation, Lake Champlain Chamber and Vermont Chamber, to make this a reality."
Due to its size, GF is the only transmission class customer in Vermont, meaning it takes service at a higher voltage than all other GMP customers in addition to owning, maintaining, and investing in its own transmission and distribution system. This uniquely positions GF to take on the responsibilities of becoming its own utility, directly serving only the facility’s needs.
The agreement with GMP protects Vermont customers through a four-year transition period. During this time, GMP will continue to supply GF’s electricity needs through a power purchase agreement, and GF will also pay a $15.6 million transition fee to benefit GMP customers by offsetting most of the costs associated with the transition. This design creates a lasting solution where GF will manage costs and risks more in line with GF’s other manufacturing facilities in the U.S. and worldwide.
The Vermont PUC had initially denied GF's request somewhat on a technicality of what a utility designation entailed and whether GF would comply with the state's energy goals, thus leaving the door open for GF to resubmit their petition.
“The PUC’s decision is good news for Vermont. This type of regulatory innovation will lead to increased investment and modernization in the GF Vermont semiconductor facility in Essex, ensuring a continued commitment to our state. The importance of GF’s manufacturing has a large economic impact on Vermont with increased capital investment, career development and small business creation,” said Betsy Bishop, President of the Vermont Chamber of Commerce.
With the current strong support for the semiconductor industry, GF has already announced plans to update and modernize its Essex Junction facility with new tools and equipment, making its Vermont facility more globally competitive and positioning it for continued leadership in RF chip manufacturing well into the future. In addition, GF is taking steps to improve the employee experience at its Essex Junction site.
GF’s corporate philosophy for years has been to continuously improve its environmental footprint, and GF has been globally recognized for its environmental sustainability programs. GF will continue its commitment to clean and efficient energy.
GF’s facility in Essex Junction, Vermont, near Burlington, was among the first major semiconductor manufacturing sites in the United States. Today, nearly 2,000 GF employees work at the site, with a manufacturing capacity of more than 600,000 wafers per year. Built on GF’s differentiated technologies, these GF-made chips are used in smartphones, automobiles, and communications infrastructure applications around the world. Fab 9 is a Trusted Foundry and manufactures secure chips in partnership with the U.S. Department of Defense for use in some of the nation’s most sensitive aerospace and defense systems.
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About GF
GlobalFoundries (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, Vermont, October 21, 2022 – GlobalFoundries
