Salisbury Post profiles former Alcoa employee

This morning’s Salisbury Post includes a profile of former Alcoa employee Frank King, Jr.  Frank worked for Alcoa for 44 years, playing a key role in early residential development along High Rock Lake and the creation of Tuckertown Reservoir. He retired in 1978. 

“People used to say that no one knew Alcoa’s reservoirs, especially High Rock Lake, better than Frank King Jr.,” writes reporter Mark Wineka.

From what I hear, that’s certainly true.  

All of us at Alcoa were thrilled to read about Frank and his family.  If you’d like to read the entire article (97-year-old recounts battling malaria for Alcoa) you can find it online at:  www.salisburypost.com/News/032411-wineka-frank-king-man-for-the-ages-qcd

Alcoa Becomes Founding Member of Duke Center for Sustainability & Commerce

Alcoa, together with the Alcoa Foundation, announced today that Alcoa has become a founding member of the Duke Center for Sustainability & Commerce, an organization dedicated to collaborating with industry and government to turn the vision of sustainability into products and solutions serving society.

The center is part of Duke’s Nicholas Institute for Environmental Policy Solutions, a non-partisan institute focused on finding solutions to the nation’s most pressing environmental challenges. It was established at Duke University in 2010.

“The Duke Center’s focus on collaboration and innovation fits well with Alcoa’s approach to developing products and solutions that contribute to a sustainable world,” said Kevin Anton, Alcoa’s Chief Sustainability Officer. “Working together, we can help communities and companies develop sustainable strategies to meet rapidly growing demand for infrastructure and transportation created by increasing population and urbanization.”

Anton will join the center’s Industry Council, an advisory panel for research and outreach.

Alcoa Foundation President Paula Davis said the Center’s research plays an important role in turning concepts into reality.

“The research depth of Duke University along with the expertise of the Center’s business partners creates a powerful combination,” Ms. Davis said. “We are pleased to be part of this effort and look forward to the advancements in sustainable communities that will result.”

Through its research, the Center is leading efforts to create a new generation of technological and organizational innovations to meet global sustainability challenges. It is led by Dr. Jay S. Golden who founded and co-directed the Sustainability Consortium prior to joining Duke.

“Alcoa has a long history of innovation that has led to great successes in their operations and product designs,” said Golden. “Our partnership with Alcoa will provide us a key manufacturing perspective from an organization whose products are critical to global commerce.”

Progress at the Yadkin Project: Part 1

Over the last few months, we’ve heard a lot of feedback about what Alcoa Power Generating Inc (APGI) needs to be doing in North Carolina. 

I’m going to spend the next few blog postings covering what we’ve done.  Today’s topic: our financials.

On March 5, we responded to requests to be more open about our financial operations by publicly sharing our financial reports for the Yadkin Project for 2008-2010 (audited by PricewaterhouseCoopers).

Before releasing the financial data, we sat down with Department of Commerce Secretary Keith Crisco and others to show that the Yadkin Project has an average net profit of $8 million a year and a projected negative cash flow due to significant capital investments. Only a skilled operator with a long-term outlook can be successful, particularly given the $180 million investment that APGI is planning.

Looking at the audited numbers, you’ll see that operating costs are more $12 million a year and continue to increase.  Those costs include:  

• Cost of power generating: More than $4 million a year for labor, maintenance, tools, parts, paint, vehicles – costs that will continue to rise over time.

• Cost of transmission: More than $450,000 a year to maintain APGI-owned transmission lines which are required to transmit electricity from the dams to the grid.  

• Operating and overhead expenses: $7.78 million a year to operate the dams, including over $1 million a year for FERC-required property and shoreline management and over $3 million in business costs such as engineering, insurance, environmental and safety related expenses, and technology. 

Compare those figures with The State of North Carolina’s 21^st Century Plan, which estimates it will cost $2.79 million a year to run the Yadkin Project and shows those costs remaining at a fixed rate for the next 50 years. In other words, the state believes it can operate and maintain the dams for nearly 80% less than APGI and hold those costs steady for 50 years. What do you think?

Stay tuned for my next posing on water quality.

APGI Releases Audited Financial Statements

Since I've taken on the role of Relicensing Manager at Yadkin, I have heard many requests for Alcoa Power Generating Inc. (APGI) to open its financials. On March 4th, APGI released audited income statements for the Yadkin Project to improve understanding among key stakeholders in the relicensing process. We had PricewaterhouseCoopers LLC (PwC) perform an independent audit of the 2008, 2009 and 2010 income statements.

Running a hydropower project can be complex, and only a skilled operator with a long-term outlook can be successful, particularly given the substantial investments in the Yadkin Project that APGI is planning.

That said, APGI is committed to making the investment for the Yadkin Project to operate safely and efficiently for the next 50 years or more, providing long-term economic benefit and tax revenues for the region through private investment.

Read the press release.

Engineering A Brighter Future

Last week was Engineering Week in the U.S. It doesn't get the attention of Heart Health Month or March Madness, but it's a great way to get more people exposed to engineering as a career. Because without engineers, there would be no Yadkin Project, bridges spanning the river, transmission lines, or even the electrical grid that supplies us power every day!

On February 23rd, members from the Society of Women Engineers (SWE) at North Carolina A&T State University visited Kernodle Middle School in Greensboro, NC and introduced nearly 150 7th grade girls to the fields of engineering.

As an engineer and an Alcoan, I'm proud to say that Alcoa was a part of this. It was partially funded by a corporate grant through Alcoa's Campus Partnership Program.  I think it's wonderful that the members of the SWE are willing to share information about the field of engineering, make young people aware of the opportunities in the engineering field, and share how people can contribute and achieve as engineers. Based on feedback that I've heard from events like this, I think it's a win-win situation - both good for the students and for the presenters.

In addition to corporate programs like the Alcoa's Campus Partnership program, our Alcoa Foundation gives grants to communities where Alcoa has locations. In fact, the Alcoa Foundation has donated over $4 million to non-profit organizations in North Carolina in the past 21 years. At this point, we are finalizing the 2011 contributions for Badin and the surrounding areas. Watch for more information as we announce our Alcoa Foundation contributions.