Alcoa to FERC: Gov. Perdue’s motion to intervene in hydro relicensing “lacks justification"

Alcoa Power Generating Inc. (APGI) filed a formal response Wednesday to N.C. Gov. Bev Perdue’s motion to intervene in in the federal relicensing of the Yadkin Hydroelectric Project.  On April 1, Gov. Perdue asked the Federal Energy Regulatory Commission (FERC) to hold an immediate hearing as part of her effort to pursue a government takeover of the privately-owned Yadkin Project.

APGI filed a response with FERC, noting that Gov. Perdue’s motion “lacks justification and legal merit” and “should be denied expeditiously.” 

The company explains that Gov. Perdue’s motion to intervene is “unnecessary and duplicative because the State of North Carolina is already a party to this proceeding.”  The N.C. Department of Environmental and Natural Resources (DENR) has been actively involved in the relicensing process since 2002 and has acted in an official capacity on the State’s behalf.  DENR formally intervened in the Yadkin Project relicensing on February 22, 2007.   

“The relicensing process has been ongoing for more than six years, and North Carolina has been involved from the beginning,” said Gene Ellis, APGI Relicensing & Property Manager. “The issues raised in the Governor’s filing have been fully vetted and FERC staff has already recommended issuing a new long-term license to APGI. The intervention is simply a belated attempt to take a privately-owned business for the benefit of the State.”

Twenty-three organizations negotiated in good faith to develop a Relicensing Settlement Agreement that addresses how the Yadkin Project will be managed in the future.  The agreement received widespread support from state agencies representing North Carolina, local governments including some within Stanly County, environmental groups like American Rivers, organizations representing local homeowners and recreational users, business groups and others. 

In addition, FERC staff has already recommended issuing a new long-term license to APGI and has said they “do not consider federal takeover to be a reasonable alternative” for the Yadkin Project.

APGI has vowed to fight North Carolina’s unprecedented bid to take its privately-owned hydropower business.  If successful, a government takeover could cost North Carolina taxpayers more than $500 million and damage North Carolina’s “business friendly” reputation.

A complete copy of APGI’s filing with FERC is available at: http://elibrary.ferc.gov/IDMWS/common/OpenNat.asp?fileID=11991245