Semiconductor Manufacturer Moves Ahead with Electricity Plan

State regulators rejected an exemption for the company in its bid to become its own utility.

I Stock 1208239202

ESSEX JUNCTION, Vt. (AP) — Semiconductor manufacturer GlobalFoundries says it will proceed with its proposal to become its own electric utility.

The decision comes after Vermont regulators told the company last week that it could not be exempt from state requirements that utilities get a percentage of their power from renewable source.

Vermont Public Radio reports that GlobalFoundries’ general manager in Essex Junction, Ken McAveny, said the renewable issue was “negligible,” saying the company will surpass Vermont’s requirements.

“For our long-term commitment, we’ve got to continue to be competitive, and this is a significant focus for us in terms of getting this self-managed utility through,” said McAvey.

“We’re committed to (a) 100% carbon neutral portfolio, and appreciate the PUC’s time and effort and look forward to moving forward,” McAvey told VPR.

The company, which uses more electricity than the city of Burlington, has said it pays double for electricity in Vermont than what it pays at its facility in Malta, New York.

The GlobalFoundries plant in Essex Junction, which employs 2,200, had asked the Public Utility Commission to allow it to buy its electricity directly from the grid instead of from Green Mountain Power to reduce costs.

The commission ruled last Thursday that the company could not be exempt from the state's renewable energy standard. Environmental and renewable energy groups have expressed opposition to GlobalFoundries' proposal.

More in Energy