Alcoa responds to State of North Carolina's FERC Filing

On behalf of Gov. Beverly Perdue, the State of North Carolina filed a motion at the Federal Energy Regulatory Commission (FERC) on Friday, September 18. The filing presents North Carolina’s case for a federal takeover of the privately-owned Yadkin Hydroelectric Project in central North Carolina. Alcoa, which has owned and operated the Yadkin Project since 1917, is currently reviewing the State of North Carolina’s filing. The company has released the following statement to share its initial reaction:

We are disappointed that Gov. Perdue continues to pursue an unprecedented government takeover of Alcoa’s privately-owned hydroelectric business, despite public and legislative opposition to her efforts.

The N.C. General Assembly rejected the idea of a government takeover in August 2009 when the N.C. House voted overwhelmingly to defeat the Yadkin Trust Bill (SB 967). In addition, a public opinion poll conducted in May 2009 found that 81 percent of North Carolina voters oppose a government takeover of the Yadkin Project. The anticipated cost of a government takeover – which could be $500 million or more – and the dangerous precedent of taking private property have concerned taxpayers and legislators alike.

Alcoa believes that the Federal Energy Regulatory Commission (FERC) has all of the information it needs to issue a new long-term license for the Yadkin Project and encourages FERC to do so. Gov. Perdue’s efforts demonstrate a complete disregard for the well-established federal relicensing process that Alcoa has followed since 2002.

Alcoa worked closely with stakeholders interested in the future management of the Yadkin River – including state agencies representing the State of North Carolina – to negotiate a relicensing agreement that has the widespread support of local governments, lakefront property owners, recreational users, business groups, environmental organizations and many others. In addition, FERC staff recommended a new long-term license for Alcoa after a comprehensive two-year review of all relevant issues.

The relicensing agreement offers significant benefits for North Carolina that are being delayed by Gov. Perdue’s actions. These benefits include improved water quality in the Yadkin River; increased water withdrawals by local municipalities; better protection of water during drought conditions; thousands of acres for long-term land protection; the creation of new parks, public swim areas and other recreation opportunities; more stable lake levels and a consistent downstream flow of water; more flexibility regarding shoreline development for lakefront property owner.

Alcoa looks forward to receiving a new license and implementing the many positive benefits the relicensing agreement will bring to the people of North Carolina.

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Footnotes:

On August 6, the N.C. House voted 66-39 to defeat Senate Bill 967 (known as the Yadkin Trust bill). The bill would have established a state trust with the authority to seize the Yadkin Hydroelectric Project

McLaughlin & Associates, a respected national pollster, conducted a public opinion poll of 700 likely North Carolina voters on May 17-18, 2009. The poll found that 81 percent of voters disapproved of the state government using taxpayer money to take over a privately owned and operated business.

Dow Jones recognizes Alcoa as a global leader in sustainability

Alcoa has been named a component of the Dow Jones Sustainability Index for the eighth consecutive year – an achievement that recognizes the company’s leadership and commitment to sustainability. The Dow Jones Sustainability Index follows a best-in-class approach and includes sustainability leaders from industries worldwide. Selection is based on a thorough analysis of a company’s economic, environmental and social performance.

“To be included on this key index for eight years in a row clearly shows that Alcoa’s commitment to sustainability remains strong. We produce the ideal sustainable material – aluminum is lightweight and infinitely recyclable, and it will continue to play a key role in the sustainable life of our planet,” said Alcoa CEO and President Klaus Kleinfeld.

Some of Alcoa’s most noteworthy sustainability achievements in 2008 include:

(1) A 36% reduction in greenhouse gases from the 1990 base year – a 44% improvement over Alcoa’s target for 2010.

(2) Approximately 90% of Alcoa’s worldwide operations have community programs, putting the company within reach of its target of 100% by 2010; and

(3) Alcoa has been ranked by the Covalence Ethics Index sixth in ethical reputation among all companies worldwide and first in the Resources category.

You can learn more about Alcoa’s sustainability efforts by downloading a copy of Alcoa’s 2008 Sustainability Report.