GlobalFoundries gets approval to form its own utility
MONTPELIER, Vt. (WCAX) - GlobalFoundries has received approval from Vermont regulators to become its own utility.
The semiconductor manufacturer with a plant in Essex Junction is one of the biggest electricity users in the state and has been petitioning to bypass Green Mountain Power and buy its electricity from the grid to save money.
Regulators rejected a similar proposal earlier this year saying that the chipmaker didn’t have the authority to create a “self-managed utility” as well as concerns that it would not abide by the state’s renewable energy targets. But on Friday the Public Utility Commission approved a revised agreement that includes a commitment from the company to adhere to the same kind of renewable energy standards as other utilities. It includes building a 5-megawatt solar power array at the Essex Junction plant.
“It allows us to continue to make investments in the site and gives us some self-determination. We’re constantly looking to reinvest and reinvent the future,” said the company’s Jeffrey Cram.
Under the agreement, GlobalFoujndries will continue to buy electricity from GMP over a four-year transition period and pay the utility a $15.6 million fee to mitigate the risk of rate impacts.
The approval follows an announcement last week that the GlobalFoundries will receive $30 million in federal funding to manufacture the next generation of computer chips.
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