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    Semiconductor Manufacturer GlobalFoundries approved to handle its own Utility power operations at Vermont plant

    Oct. 24, 2022
    The VPUC originally rejected GlobalFoundries plan to be its own utility in about four years, and now has reversed its stand. The manufacturing plant will still receive its electricity from generator Green Mountain Power for four more years
    Image credit GlobalFoundries
    Global Foundries 6356c77940fcc

    State utility regulators in Vermont have approved a manufacturing company’s desire to manage its own electricity transmission needs at its facility in that state.

    GlobalFoundries, which produces semiconductor components, is forming its own GF Power LLC to be the electric utility for the facility in Essek Junction, Vermont. The state Public Utilities Commission voted for a Certificate of Public Good approving the utility formation and operation.

    A global competitor in semiconductor manufacturing, GlobalFoundries is the only transmission (higher voltage) class customer in Vermont, according to the report. The plant employs more than 2,000 people and produces more than 600,000 semiconductor wafers per year.

    “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."

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    In February, the VPUC originally rejected GlobalFoundries plan to be its own utility in about four years, and now reversed  its stand. In the meantime, the manufacturing plant will still receive its electricity from generator Green Mountain Power (GMP).

    The power purchase agreement with GMP will cover that four-year transition period and includes a $15.6 million transition fee to be paid to GMP by GlobalFoundries.

    The company worked with the Vermont Chamber of Commerce, the local chambers, the GMP utility and Vermont’s Department of Public Service on creating an acceptable framework for transitioning to a self-owned and operated utility.

    GlobalFoundries wants to acquire power directly from the grid via a competitive marketplace instead of the current utility customer relationship. Company leaders believe it could save money and make GF more competitive globally.

    The U.S. is working to shore up its semiconductor supply chain in the wake of the issues caused by both the COVID-19 pandemic and friction with suppliers such as China.

    The federal government recently announced it would provide about $30 million to aid GF in upgrading the Essex Springs manufacturing plant. 

    GlobalFoundries acquired the former IBM plant in 2015

    About the Author

    EnergyTech Staff

    Rod Walton is senior editor for EnergyTech.com. He has spent 14 years covering the energy industry as a newspaper and trade journalist.

    Walton formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

    He can be reached at [email protected]. 

    EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids.

    Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.