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The Jamestown Board of Public Utilities and SKF Aeroengine Falconer have signed an updated agreement to reduce SKF's energy costs through the BPU's flex rate tariff program.

On Friday, leaders from the BPU and SKF signed an extension of their current agreement, which has been in effect since Dec. 1, 2007. The four-year agreement will be in place from Dec. 1, 2009, through Oct. 31, 2013.

Dave Leathers, BPU general manager, said the BPU is committed to enhancing and preserving the economic strength of the community and retaining and creating jobs through the flex rate tariff program. In exchange for the flex rate tariff and reduced energy costs, Leathers said, participating local companies agree to retain a certain number of jobs and to continue to invest in their facilities.

"Companies such as SKF compete around the world," Leathers said, "and could locate facilities in many locations other than Jamestown, New York. By offering a flex rate, the BPU helps retain local jobs and a major BPU electricity customer. The flex rate is good for our community, as it helps to preserve the economic well-being of SKF, the BPU and our customers."

SKF Aeroengine Falconer, formerly known as MRC Bearings, is located on Maroco Road in Falconer, and is predominately involved in the manufacture of aerospace bearings for engines, gearboxes, helicopter transmissions and related applications.

"We are very grateful for the continued support of the Jamestown BPU through the modification and extension of the existing flex-rate agreement," said Martin Fernlund, SKF Aeroengine Falconer operations manager. "This support and cooperation is more vital than ever in these difficult economic times in our marketplace."

"The Jamestown BPU, the city of Jamestown, the county of Chautauqua and the state of New York continue to demonstrate their strong support for retaining manufacturing jobs in our community. We are most appreciative of the role the BPU is playing in supporting nearly 600 jobs at our Falconer facility and we are proud of our excellent business relationship," said Pierre Chagnon, SKF Aeroengine North America human resources director.

The flex rate tariff was developed by the BPU and approved by the Public Service Commission to help the Jamestown area community attract new industry and also to support existing BPU commercial and industrial customers. Participating manufacturers commit to retain a certain number of jobs and to continue to invest in their facilities in exchange for reduced energy costs. The flex rate tariff program is designed with the objectives of local economic preservation and development.

"SKF is a significant Chautauqua County employer which provides important jobs to residents of the city of Jamestown and our community,'' said Mayor Sam Teresi, who is also BPU board president. ''The flex rate tariff agreement is one way in which the BPU can contribute to the positive economic health of the greater Jamestown area. We are proud to continue this important relationship with SKF."

"SKF has been a vital regional employer and BPU customer for decades,'' said John Zabrodsky, BPU board chairman. ''The BPU is gratified that SKF has committed to retain jobs and to invest in its business in the BPU territory as signified by the extension of its flex rate agreement."