Friday, November 6, 2009

The Yadkin Riverkeeper gets it wrong... again

The Yadkin Riverkeeper said today that he has recently “discovered” internal Alcoa documents from 1997 that suggest Alcoa tried to hide information about possible contamination in Badin Lake.

The truth of the matter – Alcoa openly shared information about the presence of PAHs (polycyclic aromatic hydrocarbons) in Badin Lake with state agencies, local government officials and the media in May 1997. It gave a presentation to health officials and government leaders on May 16, 1997 and a story about Alcoa’s testing was reported on the front page of the Stanly News & Press on May 18, 1997.

The voluntary testing, conducted in April 1997, indicated PAHs in the sediment 20-30 feet below the surface of Badin Lake. Luanne Williams, a toxicologist with the N.C. Department of Environment and Natural Resources, reviewed the test results and indicated that the PAH levels in the swimming cove at Badin Lake were “comparable to concentrations found in urban soil” and “should not pose a significant health risk.” The N.C. Division of Public Health indicated then it was safe to swim in Badin Lake and confirmed that in early 2009 when it said, “It is safe to boat, wade, swim and do other activities in the water. Skin contact with the water or sediment does not represent a health risk.”

During the past 12 years, Alcoa has continued to monitor the sediment in Badin Lake and a 2008 study showed these sediments remain isolated and are not spreading to other parts of the lake.

Alcoa was commended by Stanly County officials, including county manager John Whitehurst and health director Barry Bass, in the Stanly News & Press’s 1997 article for sharing the information with the public.

“I commend (Alcoa) for proactively handling this information and for the way they worked with the state to determine the significance of the information,” Bass said.

Now, Yadkin Riverkeeper Dean Naujoks is trying to say that Alcoa’s behavior “indicates a pattern of deceit regarding its environmental record…”

But the facts show just the oppositeagain.

Alcoa awarded $13 million grant to modernize hydro project in western North Carolina

The U.S. Department of Energy announced Wednesday that it has awarded $30.6 million in economic stimulus funds to help modernize seven hydroelectric projects, including an Alcoa operation in western North Carolina. The grant demonstrates the federal government’s confidence in Alcoa’s long-standing ability to generate clean, renewable energy from its hydroelectric plants.

Alcoa will receive up to $13 million to replace four 90-year-old turbines at the Tapoco Project, located along the Little Tennessee River. The Tapoco Project includes four dams – two in western North Carolina and two in Tennessee – that supply power to an aluminum smelter in Alcoa, Tennessee.

The installation of new high-efficiency turbines is expected to increase power generation by 23 percent. U.S. Energy Secretary Steven Chu said the investment will help the United States generate more renewable energy without building new dams.

Alcoa has begun making similar upgrades to the Yadkin Project in central North Carolina. Alcoa has not received any stimulus money for those upgrades.

For more information, read John Murawski’s report in The News & Observer.

Thursday, October 15, 2009

Alcoa responds to FERC ruling

Today, the Federal Energy Regulatory Commission (FERC) determined that the State of North Carolina acted within the one year timeline to issue a required water quality certificate for the Yadkin Hydroelectric Project. Alcoa Power Generating Inc. (APGI) had argued that the State waived its rights by failing to issue an effective certificate within one year.

FERC continues to have the ability to issue a new long-term license based on the water quality certificate that was issued by the NC Division of Water Quality on May 8, 2009.

Friday, October 9, 2009

Responding to misinformation from the Yadkin Riverkeeper

The Yadkin Riverkeeper issued a press release Friday containing false and misleading information about APGI’s efforts to clean up a small area near the Narrows Dam in Montgomery County.

To set the record straight:

APGI is performing work to remediate about a 1/4 acre site where two discarded capacitors were discovered and removed in 2002. As a precaution, APGI is removing a small, isolated amount of sediment from behind the Narrows powerhouse. All work is being done with the knowledge and approval of the N.C. Department of Environment and Natural Resources.

The Yadkin Riverkeeper’s allegation that this work involves PCB contaminants associated with Alcoa’s Badin Works that are traveling downstream from Badin Lake is patently untrue. This work is related to capacitors that were previously removed and represents the final step in the remediation process. The sediment being removed is isolated from Badin Lake.

The improvements being made to the Falls Boat Access Area is separate from the cleanup effort and is solely to enhance public recreational access.

The misinformation being spread by the Yadkin Riverkeeper represents an irresponsible pattern of behavior we have witnessed all too many times recently.

Thursday, October 8, 2009

Why Perdue's proposed Yadkin River takeover is so flawed

The Charlotte Observer published an opinion piece today from Rick Bowen, president of Alcoa's energy operations, about Gov. Perdue's attempted government takeover of the Yadkin Project.

Why Perdue's proposed Yadkin River takeover is so flawed

From Rick Bowen, president of Alcoa Energy

When Gov. Bev Perdue decided to pursue an unprecedented government takeover of Alcoa Power Generating Inc.'s hydropower operations along the Yadkin River, she ignored the recommendations of experts in her own state agency, disregarded the actions of the N.C. General Assembly and refused to listen to the citizens who will be most impacted by a takeover.

Instead, she asked the Federal Energy Regulatory Commission to toss aside its own rules and regulations and recommend a government takeover of the Yadkin Project.

Nothing like that has ever been done before... at least not in America.

Gov. Perdue's quest to take our private property stands in stark contrast to the actions of the General Assembly, which rejected takeover legislation this year, and the N.C. Department of Environment and Natural Resources, which studied our operations and in 2007 signed the Relicensing Settlement Agreement supporting a new license for the Yadkin Project.

From the beginning, Gov. Perdue has turned a deaf ear toward the citizens most involved in this process, including homeowners, recreational users, business groups, environmental groups and others who spent years negotiating a relicensing settlement agreement with APGI that offers substantial benefits to North Carolina.

She has dismissed the recommendation of FERC staff that our license should be renewed.

And she ignored the concerns of interested citizens, including grassroots groups such as the N.C. Property Rights Coalition, who have expressed concern that this takeover will set a dangerous precedent that could impact private citizens and small business owners. You have to believe it will affect the way other business owners look at North Carolina, too.

I wish I could ask Gov. Perdue why she is so intent on taking our business. But she has refused to meet with me and others from Alcoa.

So I can't ask her why she conveniently omitted or distorted our history of environmental stewardship and community support. I can't explain that her actions reflect a clear misinterpretation of the Federal Power Act. And I can't point out the glaring errors in her filing.

For example, Gov. Perdue's projections estimate $2.8 million a year for operating and maintenance expenses - but fail to take into account any expenses associated with project land management, depreciation, other contracted costs, power substation and transmission, and general administrative expenses. Those expenses add an additional $11 million a year to the operating costs, meaning Gov. Perdue has underestimated operating expenses by almost 400 percent.

She also estimates it will cost $24.1 million to acquire the Yadkin Project. Even if a government takeover were possible, the price must reflect the updated cost of Alcoa's net investment ($91 million), plus severance damages that could add hundreds of millions of dollars to the cost.

Gov. Perdue argues that North Carolina must "secure a greater degree of control over the water supplies within its own borders." If so, then shouldn't the same rules apply to all rivers in North Carolina and all private hydro operators?

But this battle isn't about protecting the North Carolina's water supplies; it's about taking government control of a private business.