The Yadkin Project Relicensing

David Stickler: Clean Tech did its best

2011-12-20T10:58:00.000-05:00

The Winston-Salem Journal published a guest column today from David Stickler, a member of Clean Tech's Board of Directors, about why the company was unable to reach an agreement with the Stanly County Commissioners.

"If there had been true interest by Stanly County in finding a path forward, I feel certain that Clean Tech and Alcoa could have mitigated all of the concerns that were raised — even those raised at the 11th hour," Stickler wrote

"But there was one fundamental problem: Every time we mitigated or structured around one concern, the county would simply present another concern that then needed to be addressed."

The entire article is reprinted below:

Clean Tech did its best

By DAVID STICKLER

Now that Clean Tech has abandoned its plans to build a $300 million manufacturing plant and create 450 new jobs in Stanly County, I see that there is already a lot of finger-pointing in the press about why we were unable to reach an agreement with the Stanly County commissioners. Having been directly involved in the process of trying to structure a transaction that met the county's concerns, let me share my perspective.

If there had been true interest by Stanly County in finding a path forward, I feel certain that Clean Tech and Alcoa could have mitigated all of the concerns that were raised — even those raised at the 11th hour.

But there was one fundamental problem: Every time we mitigated or structured around one concern, the county would simply present another concern that then needed to be addressed.

First it was environmental. Then it was jobs. Then it was the number of jobs. Then it was the length of the jobs commitment.

In a final effort to reach an agreement Thursday evening, Clean Tech teamed with Alcoa and committed to creating 750 jobs with a payroll and benefits commitment that started at $30 million a year and increased over time to more than $43 million a year. The commitment would have lasted 50 years.

But even after these commitments were put on the table and the previously identified concerns addressed, the county began raising new obstacles, some of which involved the most unlikely of business scenarios. So I asked the county directly: If we can resolve these latest concerns, will you create a path forward? Unfortunately, the response received led Clean Tech to conclude that there would always be one more challenge to overcome and that the process would never end.

At that point, Clean Tech finally had to say enough is enough. We had tried our best.

Issues surrounding the relicensing of Alcoa's dams were obviously a major sticking point for the county. It is important for everyone to know that Clean Tech never tried to infringe on Stanly County's or North Carolina's legal standing with respect to having a voice at the table regarding permits, 401 certificates or government authorizations. All Clean Tech was looking for was an assurance that the county and the state would allow the regulatory process to move forward in a timely manner so that we could begin the construction and hiring process.

As we prepare to move forward with our plans to locate the Clean Tech plant in another state, I feel terrible for the citizens of Badin and Stanly County who would have benefited from the investment that Clean Tech was trying to make. The support of the citizens for the Clean Tech project was overwhelming. I am sorry that things did not work out differently.

Clean Tech issues press release

2011-12-16T09:13:00.000-05:00

Clean Tech distributed the following press release this morning.

Clean Tech abandons plans to develop its $300-million

manufacturing plant in North Carolina

Clean Tech Silicon and Bar LLC announced today that it was abandoning its plans to invest $300 million and create 450 jobs in Stanly County, NC, in the town of Badin. A December 15 deadline to reach an agreement passed without an agreement being reached with either the Stanly County Commissioners or North Carolina.

The Stanly County plant was to be located on an industrial site owned by Alcoa and would have created 450 new jobs. Clean Tech would have employed 250 people with an average wage of $55,000 per year and created an additional 200 support jobs with an average wage of $40,000 per year.

Key elements of the proposed Clean Tech agreement included:

A 30-year commitment to Stanly County in terms of investment, job creation and related payroll.

A commitment to forego certain tax breaks available to all scrap metal recycling companies operating in North Carolina and pay full property taxes.

A pledge to provide $500,000 a year to educational institutions in Stanly County.

In a last effort to try and reach agreement with Stanly County and North Carolina, Clean Tech teamed with Alcoa and offered to commit to creating a total of 750 jobs with a payroll and benefits commitment that started at $30 million and increased over time to more than $43 million annually. The jobs and payroll commitment would have lasted for fifty years.

In announcing that it was abandoning its plans to invest in Stanly County, Clean Tech noted that unlike almost every other economic development project recently announced in North Carolina, Clean Tech was not seeking government subsidies, incentives or tax holidays and was instead looking to benefit from a substantial package of incentives Alcoa was providing to support Clean Tech’s investment in the town of Badin at the site of its former aluminum smelter.

The Alcoa incentive package included a direct investment in Clean Tech, a long-term purchase commitment, and an agreement to significantly lower Clean Tech’s cost of electrical power.

John Correnti, Clean Tech’s chairman, stated, “I am disappointed that things did not work out differently and that the legal maneuvering related to North Carolina’s and Stanly County’s attempts to take control of Alcoa’s hydroelectric dams finally forced us to move on. We tried our best but in this case other agendas prevailed.”

Correnti went on to state that “Clean Tech greatly appreciates the enthusiastic support for Clean Tech shown by the good folks of Stanly County and the town of Badin. They deserved a better outcome.”

Clean Tech expects to announce its new location shortly after the year-end holidays.

# # #

Commissioners walk away from deal to bring $300M investment, 450 jobs to Stanly County

2011-12-16T08:43:00.000-05:00

Alcoa remains committed to attracting new jobs to Badin, obtaining new hydro license for Yadkin Project

Stanly County Commissioners failed to agree on a plan to bring a $300 million investment and 450 new jobs to the County, effectively walking away from a one of the largest economic development projects in the county’s history.

Clean Tech Silicon & Bar LLC, led by former Nucor CEO John Correnti, had set a December 15 deadline for the company to reach an agreement with Stanly County that would have allowed the silicon and rebar manufacturing plant to move forward. After several meetings this week, the Commissioners failed to reach agreement with Alcoa and Clean Tech.

“Opportunities like this don’t come along very often, and it’s incredibly disappointing that these 450 new jobs will not be coming to North Carolina,” said Kevin Anton, Alcoa’s Chief Sustainability Officer and the executive responsible for the Company’s recruitment of Clean Tech.

Despite the obstacles that forced Clean Tech to abandon its plans in Stanly County, Anton says Alcoa will continue working to bring other businesses to town.

“Alcoa remains committed to attracting new jobs to the Badin Business Park. We will follow through on our plans to improve water quality and protect the environment, and we will continue to vigorously pursue a new license for the Yadkin Hydroelectric Project,” Anton said. “Our goals remain the same, no matter how long it takes to reach them.”

Recruiting Clean Tech

Alcoa began discussions with Clean Tech this summer, and the prospect of bringing hundreds of new jobs to Stanly County excited residents. Local elected officials and community leaders organized a “rally for jobs” in October that drew a crowd of 750 people.

“The support of Mayor Harrison, Mayor Whitley, and other community leaders was overwhelming,” Anton said. “We appreciate the support of so many local residents and will continue working on their behalf to bring new jobs to Badin.”

Alcoa offered a substantial package to Clean Tech as part of its recruitment efforts, including a commitment to invest in the company and purchase silicon for aluminum alloying. In addition, Alcoa offered economic incentives that would allow Clean Tech to obtain affordable power.

Alcoa could only afford to offer those incentives if it obtains a new hydro license for the Yadkin Project, which it has owned and operated for nearly 100 years. Stanly County officials have delayed the relicensing with various legal challenges.

Alcoa proposed a settlement to Stanly County in exchange for dropping its legal challenges and paving the way for Clean Tech to invest in Stanly County. The Company committed to attract approximately 750 new jobs within four years and attract $400 million in investments in the next five years — measures that would have spurred local spending and generated millions in new tax revenue. In addition, Alcoa pledged to contribute $6 million to Stanly County for education and other needs over the next two years.

To address concerns that the jobs and investment would not materialize, Alcoa provided financial assurances that could generate more than $50 million for economic development in the region if Alcoa failed to meet its commitments.

“We made our best effort to reach an agreement that would have an immediate, positive impact on the local economy and put these issues to rest,” Anton said. “Instead, it looks this process will continue for years to come.”

Redeveloping the Badin Site

Alcoa has been working diligently to attract new jobs to Stanly County. Beginning in February, the company accelerated its plans to redevelop the former Badin aluminum smelter. It invested $10 million to turn the plant into the Badin Business Park and aggressively reached out to customers and business partners as part of its efforts to bring new jobs to North Carolina.

Earlier this year, Alcoa successfully recruited Electronic Recyclers International, the nation’s largest electronic recycling company, to Badin. ERI began hiring this summer and will move into a larger, newly renovated facility early next year that will employ 200 people. Alcoa invested $5 million in building renovations to accommodate ERI.

“The Badin Business Park is a great manufacturing site that is ready to come to life,” Anton said. “Clean Tech was an ideal fit in many respects, but we remain committed to redeveloping the Badin site and will continue to recruit companies to locate at the Badin Business Park.”

Salisbury Post editorial supports Alcoa agreement

2011-12-05T12:29:00.000-05:00

The Salisbury Post published an editorial on Sunday supporting Alcoa's efforts to attract new jobs to the Yadkin region and end the debate over the relicensing of the Yadkin hydro project:

"Like many of the diverse stakeholders involved in this process, we believe working with Alcoa is a better option than continuing this standoff in hopes of recapturing the license and taking over the Yadkin dams.

"No, there aren’t any iron-clad guarantees. But a hard-fought settlement with Alcoa offers a clearer outcome than the turbulent, muddy waters that lie in the other direction."

Alcoa has committed to attracting new jobs and investment to Stanly County, including a $300 million plant from Clean Tech Silicon & Bar that will create 450 new jobs. In addition, Alcoa and Clean Tech have made commitments that could generate an additional $1 million a year for Stanly County schools.

With Clean Tech's December 15 deadline quickly approaching, the Stanly County Commissioners must decide whether to embrace the new jobs that Clean Tech will bring or continue legal challenges that could last another decade or more. The Commissioners meet tonight at 7:00 pm in Albemarle.

Click here to read the entire Salisbury Post editorial.

Clean Tech sets December 15 deadline for Stanly County project

2011-11-21T17:54:00.000-05:00

Stanly County stands to lose 450 high-paying jobs if an agreement to bring Clean Tech to Badin cannot be reached within the next month

Clean Tech Silicon & Bar still hopes to build a $300 million manufacturing plant in Stanly County that will create 450 high-paying jobs. But the company informed the Stanly County Commissioners today that it will eliminate the Badin site from consideration if an agreement cannot be reached by Thursday, December 15. Clean Tech is also considering sites in Mississippi and other states.

“Badin is an ideal location for our company and we are ready to move forward with this project immediately and create jobs. But we cannot continue to wait on the sidelines for the Stanly County Commissioners to act,” said John Correnti, chairman of Clean Tech and former CEO of Nucor.

The Clean Tech project would create 250 direct jobs with an average annual salary of $55,000 and 200 support jobs with an average annual salary of $40,000.

In a letter to the Stanly County Commissioners, Clean Tech officials expressed frustration that the commissioners have refused to meet with the company since July to discuss ways to advance the project. Clean Tech offered again to meet with county officials and discuss how to make this project a reality.

Clean Tech’s interest in Stanly County rests in part on incentives offered by Alcoa, including an investment into the joint venture and other support that will significantly lower operating costs. Key to making the incentive package viable is renewal of a federal hydropower license for Alcoa Power Generating Inc.’s Yadkin Project, which will help fund some of the incentives. Stanly County has filed legal challenges that have delayed the relicensing process.

In an effort to reach an agreement with Stanly County, Alcoa has offered a deal worth more than $50 million. The Company has committed to recruiting new jobs that will generate $30 million in annual compensation; has pledged to attract $400 million in investments that will generate more than $2 million a year in additional tax revenue for the county; and has offered to contribute $6 million to the county for public education and other pressing community needs. If Alcoa fails to meet those commitments, it will provide up to $1.2 million a year to Stanly County for the next 40-50 years.

The December 15 deadline is driven by the expiration of Clean Tech’s project development agreement with Alcoa and other business partners.

Stanly County has an unemployment rate of 10.9% and its residents are desperate for new jobs. A rally for Clean Tech jobs recently attracted a crowd of 750 people, and a local job fair for Electronic Recyclers International (ERI) this summer brought in more than 1,000 applications for 25 jobs, indicating a high degree of interest in employment opportunities.

Alcoa has actively worked to recruit new jobs to Stanly County since closing the Badin Works smelter in 2010. ERI, the nation’s largest recycler of electronic waste, opened a regional recycling facility in Badin in May 2011 and will move into an expanded building in January 2012. The company plans to hire 150 people by early 2013.

Boaters Beware: Fall and Winter Bring Additional Water Safety Risks

2011-10-20T08:56:00.000-04:00

Boaters who take to the water during the fall and winters months face a different set of risks when it comes to water safety. There are fewer boats and law enforcement officers on the water to provide assistance in the event of an emergency, and heavier clothes and colder temperatures can make it much more difficult to swim to safety if you fall in the water without a life jacket. It can be a deadly combination.

“There are fewer people on the lakes in the fall and winter, but the potential dangers for boaters are even greater,” said Marshall Olson, environmental and natural resources manager for Alcoa Power Generating Inc. (APGI). “It’s important for people to pay just as much attention to water safety issues this time of the year as they do during the summer recreation season.”

APGI reminds boaters to Play it Safe on the Lakes by taking the following precautions:

Always Wear a Life Jacket: Wearing a life jacket is the most fundamental way to stay safe — and it’s even more important in colder water temperatures. The risk of cold shock and hypothermia can impede your ability to perform even the most basic of tasks.
Be Prepared: Review the NC Wildlife Resources Commission’s “Boating Checklist” to make sure you have the necessary equipment on board and operating correctly. You can view the checklist online at: www.ncwildlife.org.
Use the Buddy System: Avoid boating alone. If you are alone, make sure someone knows where you are going and when you plan to return.
Check Weather Forecasts and Advisories: Be prepared for adverse weather and sudden weather changes. Never go boating during storms.
Be Aware of Lower Lake Levels: The lakes can experience lower water levels during the winter, exposing tree stumps and other potential hazards. Check the water levels online at www.alcoa.com/yadkin and be on the lookout for hazards.
Have An Emergency Plan: Make sure you have a working marine radio and a charged mobile phone so you can call for help in an emergency.
Do Not Overload the Boat: Boats that are weighted down are more likely to tip over.
Be Careful Near Dams: Stay a safe distance from dams. Do not go past the warning signs and buoys located above and below the dams.
Stay Dry, Stay Warm: Dress in layers and bring extra clothes. If you get wet, change into dry clothes as quickly as possible.

Stanly County business leader speaks out in support of Alcoa

2011-10-19T15:54:00.000-04:00

A respected Stanly County business leader is speaking out in support of Alcoa's effort to recruit new jobs to Stanly County and obtain a new federal license for the Yadkin Hydroelectric Project.

Dick Storm, CEO of Storm Technologies in Albemarle, sent a letter to Inside Stanly and the Stanly News and Press outlining why he supports Alcoa.

He highlights the high unemployment rate in Stanly County and the availability of the Badin site as the best industrial site in the region. "Alcoa is sincerely trying to rejuvenate industry in Badin," Storm writes. "If they are not able to relicense the Hydropower facilities, not only does Stanly County appear 'Anti-Industry' but no one else is better equipped to provide economic development."

The 450 high-paying jobs that Clean Tech Silicon & Bar will bring to Badin if an agreement can be reached could transform Stanly County."Most important to me, the Citizens of our County will be able to improve their incomes and employment opportunities," Storm says.

Click here to read a full copy of his letter.

Who is Clean Tech?

2011-09-14T14:35:00.001-04:00

Who is Clean Tech? That's a question that has been on the minds of a lot of folks in Stanly County recently.

The Stanly News & Press recently printed a profile of Clean Tech. Some of the highlights:

Clean Tech is led by a management team and investor group that has extensive experience building and operating industrial facilities across the United States. Over the past 30 years, Clean Tech’s management and investment sponsors have helped create more than 10,000 jobs and invested billions of dollars in various projects in support of modernizing industrial America.
Clean Tech prides itself on (i) purchasing and installing the very best technology and equipment available, (ii) spending substantial amounts of time and money on employee training, and (iii) creating a compensation system that allows for wages well above the base wage level.
Projects include a $1 billion of scrap metal recycling investments in Arkansas; a $350-million “green renewable” investment in Hertford County, NC when Gov. Jim Hunt was leading efforts to create advanced manufacturing jobs; and an $880-million steel mill investment in Mississippi that created 450 jobs with guaranteed average annual wages of $53,000 per year. (In some years, average annual wages exceeded $90,000.)

Clean Tech wants to make a $300-million industrial investment in Badin, North Carolina that would create 250 direct jobs (average annual wages of $55,000) and 200 indirect jobs (average annual wages of $40,000).

Alcoa and Jobs

2011-09-14T11:17:00.000-04:00

The Salisbury Post published an editorial today supporting our efforts to reach an agreement with Stanly County and bring hundreds of high-paying jobs to Stanly County. We agree that it's time to work together to bring 450 Clean Tech jobs to Stanly County. The other option -- a protracted legal battle and the loss of the Clean Tech jobs -- won't benefit anyone.

Read the editorial below.

Salisbury Post Editorial
Wednesday, September 14

Alcoa and Jobs

Alcoa and Stanly County commissioners still stand on opposite sides of the river when it comes to Alcoa's hydroelectric relicensing efforts, but at least they've been talking to one another. We'll take that as an encouraging sign.

The latest volley in the public relations battle over the relicensing centers on jobs. Alcoa, which is seeking federal approval to continue operating its Yadkin River hydroelectric dams, says securing the license is necessary to recruit new businesses and replace the jobs lost when the Badin smelting operations closed. Standing in the way, however, is Alcoa's inability to get a water quality certificate, which the state has refused to issue, citing mistatements on Alcoa's application. Stanly has sided with the state, which opposes renewal of Alcoa's federal license in hopes of taking over the Yadkin dams and using cheap electricity as its own industrial recruitment tool.

Meanwhile, caught in the middle of this power struggle are Stanly County citizens, who like those elsewhere could desperately use new jobs to help lower a double-digit unemployment rate. Their hopes were raised a few months ago when Alcoa announced that Electronic Recyclers International would move into the site of Alcoa's former smelting plant in Badin, starting with a workforce of 20-30 employees that is expected to reach 200. Now, Alcoa says another company, Clean Tech Silicon and Bar LLC, could bring in several hundred jobs and $300 million in investment. But in return, it apparently wants Stanly to drop its opposition to the water quality certification and relicensing effort. Stanly Commissioner Tony Dennis contends Alcoa is holding the promised jobs "hostage" as a way to put pressure on the county. Which is probably true to the same extent the state is holding the water certification "hostage" to gain leverage against Alcoa.

In reality, both Alcoa and its relicensing opponents have played hard ball at times. But with good jobs on the table, the need to get past the war of words becomes more urgent. The takeover attempt has lost momentum as North Carolina copes with the economic downturn. At this point, it's hard to fathom state or county officials pursuing what would no doubt be a protracted and costly court battle against Alcoa. While the details of negotiations between Stanly and Alcoa haven't been divulged, the fact they've discussed a deal suggests possible movement in this standoff.

With takeover of the dams a distant possibility at best, better to drive a hard bargain with Alcoa and gain jobs and other tangible benefits now than to continue pursuing a costly legal battle that doesn't create employment for anyone other than lawyers and lobbyists.

Stanly County Jobs Rally Draws 750-800 People

2011-09-12T17:05:00.000-04:00

A grassroots effort to rally support for new jobs in Stanly County drew a crowd of 750-800 people in Albemarle on Friday night.

The event was organized by Badin business owner Vanessa Mullinix and Albemarle Mayor Whit Whitley last week as word spread that Stanly County might lose the opportunity to attract 450 jobs from Clean Tech Silicon and Bar LLC.

Clean Tech has expressed interested in opening a manufacturing facility at Alcoa’s former plant site to produce silicon and rebar. A key aspect is reaching agreement on future economic development of the Badin Business Park and resolution of the 401 Water Quality Certificate with the Alcoa-owned Yadkin Hydroelectric Project. If Alcoa and the Stanly County Commissioners are unable to reach an agreement, Clean Tech will locate elsewhere.

At the Friday rally, Mayor Whitley read a letter from Clean Tech investor Dave Strickler: “In order for us to locate in Stanly County, what we need is a clear path forward so that we can make our investment and begin the hiring process. Let’s hope that the message tonight reaches the ears of the officials elected to represent your interests,” the letter said.

Click here to read more about the rally from the Stanly News & Press and Inside Stanly, and click here to see the thoughts of one local professor.

Another Milestone for ERI’s Badin Facility

2011-08-26T10:35:00.000-04:00

Electronic Recyclers International, the first company to begin operations in the Badin Business Park, has reached another important milestone. The company announced this week that its regional recycling center in Badin is now officially a certified ISO 14001 and OHSAS 18001 facility.

The certification demonstrates that ERI has successfully met or exceeded international standards in the areas of minimizing harmful effects on the environment caused by its activities, and has achieved evidence of continual improvement of its environmental performance.

The nation’s largest recycler of electronic waste, ERI announced in May 2011 that it would begin operations at former site of Alcoa’s Badin Works plant. The company began operations in July and has begun hiring local employees. It expects to grow its workforce to 150 employees by the end of 2012.

Click here to learn more.

Alcoa joins in celebration of Joyce Kilmer Memorial Forest

2011-08-10T12:19:00.000-04:00

Alcoa recently joined the U.S. Forest Service and others to celebrate the 75th anniversary of the Joyce Kilmer Memorial Forest in Graham County in western North Carolina. Click here to watch a short video of the celebration.

“We’re a major part of this community and have been since 1910,” said Kevin Anton, Alcoa Chief Sustainability Officer. “Our hydro dams are adjacent to the forest and we have employees who call this community home. We take pride in working cooperatively together to preserve the biodiversity in this very unique area which reflects a key part of Alcoa’s sustainability value.”

The forest is named after poet Joyce Kilmer, who was killed in action during World War I.

Lexington Dispatch highlights success of Alcoa's water safety efforts

2011-08-09T13:18:00.002-04:00

The Lexington Dispatch published an article Monday by Darrick Ignasiak (Authorities credit safe summer at lake to new water safety devices) highlighting the success of our water safety efforts. There have been no drownings at High Rock Lake this year.

Photo by Lexington Dispatch

Alcoa Power Generating Inc. provided 250 free life jackets to children earlier this summer and provided additional life jackets to the Davidson County Sheriff's Department to distribute to children riding on boats without life jackets. The efforts are part of our annual "Play It Safe on the Lakes" safety campaign.

"Cpl. Randy Holbrook, supervisor of the Davidson County Sheriff's Office lake patrol, said he's a big proponent of Alcoa's safety measures. In addition to the new equipment, the company has purchased a boat for the sheriff's office and continues to provide funding for deputies to monitor the lake," writes Ignasiak.

Click here to read more.

At Home in Badin

2011-08-04T10:54:00.000-04:00

Electronic Recyclers International (ERI), the world's largest electronics recycler, has started operations at its Southeast regional recycling hub in Badin. ERI is the first tenant in the Badin Business Park, located at the site of Alcoa's former aluminum plant, and will move into a permanent facility early next year.

The company has started hiring employees and will grow its workforce to 150 people by the end of next year.

ERI Job Fair Draws 750 People to Badin

2011-07-18T15:40:00.000-04:00

Electronic Recyclers International (ERI), the first tenant in the Badin Business Park, drew quite a crowd for its first job fair on Saturday. More than 750 people turned out, hoping for a chance to work at the new electronic recycling facility located at the site of Alcoa's former aluminum plant. ERI will hire 20-30 people this summer and employ 150 people by the end of next year.

People started lining up at 6 am, and the line stretched around the Badin fire department and down the street by mid-morning. That demonstrates just how much the community needs new jobs. Alcoa is engaged in ongoing discussions with additional companies about moving to Badin Business Park and will continue efforts to recruit new jobs to Stanly County.

Read the AP article.

Read the Stanly News and Press article.

Read the Winston-Salem Journal article.

ERI Job Fair Coming to Badin

2011-07-07T10:37:00.001-04:00

The first tenant of the new Badin Business Park, located at the site of Alcoa's former aluminum smelter plant, has announced that it will hold a job fair in Badin on Saturday, July 16 and immediately begin hiring a local workforce.

Electronic Recyclers International (ERI), the world’s largest recycler of electronic waste, plans to hire 20-30 employees this summer to assist with the startup of its Southeast regional recycling hub. It will grow its workforce to more than 150 employees by the end of 2012 and eventually plans to hire up to 200 employees as its recycling volume grows.

ERI will begin operations this month in a temporary facility before moving into a permanent, 165,000 square-foot facility in January 2012. ERI is investing $5 million in the facility, and Alcoa is spending an additional $5 million on building improvements.

Alcoa recruited ERI to the Badin earlier this year and continues to work with state and local officials to attract additional employers to the Badin Business Park, which will have 535,000 square-feet of prime industrial space and 50 acres available for development after ERI moves into its new facility.

Click here to read more about the job fair.

President Obama visits Alcoa

2011-07-01T09:33:00.000-04:00

President Barack Obama toured Alcoa's Davenport, Iowa plant on Tuesday to see how it is making ground and air transportation lighter, stronger and safer. He announced that Alcoa is joining the President's Advanced Manufacturing Partnership, an effort to bring together industry, universities, and the federal government to invest in emerging technologies to create high quality manufacturing jobs and enhance competitiveness.

“At companies like Alcoa reinvention is a way of life…that spirit is at the heart of our American story," President Obama said.

Click on the video below to see highlights from his visit:

Click here to read more about President Obama's visit.

Play it Safe on the Lakes

2011-05-27T14:19:00.000-04:00

I hope everyone enjoys the Memorial Day weekend. If you planning to enjoy the lakes, please remember to "play it safe."

Alcoa Power Generating teamed up with the NC Wildlife Resources Commission, the U.S. Coast Guard Auxiliary and local law enforcement officials in Davidson, Montgomery, Rowan and Stanly counties earlier this week to promote the importance of water safety.

Alcoa and the local law enforcement community have been preaching the benefits of wearing a life jacket for years. This year, Alcoa went a step further and hosted a series of water safety events last weekend at High Rock and Badin Lakes. We distributed more than 200 free life jackets to children.

We will provide local law enforcement officers with additional life jackets to distribute to boaters who are not carrying an adequate number of floatation devices.

Davidson County Sheriff David Grice, Rowan County Sheriff Kevin Auten and Stanly County Sheriff Rick Burris thanked Alcoa for working with law enforcement agencies to educate the public about water safety. Alcoa provides $90,000 a year to local law enforcement to fund increased patrols of the lakes.

Watch news coverage from WGHP, WFMY, News 14

Read coverage from the Salisbury Post and Stanly News & Press.

200 New Jobs Coming to Former Alcoa Site

2011-05-25T10:53:00.000-04:00

It was a special week in Stanly County. Electronic Recyclers International, the world's largest recycler of electronic waste, announced Monday that it is bringing up to 200 new jobs to the area. The California-based company is opening a regional recycling hub in the Badin Business Park, the site of the former Alcoa smelter.

ERI Chairman and CEO John Shegerian provides a "Green is Good" t-shirt to

State Representative Justin Burr during a press conference in Badin on Monday.

"We're going to help recycle this plant, recycle that building right there and we're going to help recycle the community and bring brand new jobs," said ERI chairman and CEO John Shegarian. Shegerian made the announcement before a crowd of 100 community leaders and local officials, including U.S. Congressman Larry Kissell, State Sen. Bill Purcell, State Rep. Justin Burr, Stanly County Commissioner Josh Morton, Badin Mayor Jim Harrison and Albemarle Mayor Whit Whitley.

Alcoa is investing more than $10 million to redevelop the former plant site and continues to actively recruit businesses to the Badin site.

"We have an obligation to make sure that this site is redeveloped," said Kevin Anton, Alcoa's chief sustainability officer.

Read the press release.

Read the Salisbury Post editorial, Generating jobs in Badin

Read the AP article, Recycling company adding 200 jobs in Stanly County

Investing in Badin Redevelopment

2011-05-18T10:10:00.000-04:00

Earlier this week, Alcoa announced that it has awarded more than $7.2 million in contracts associated with the redevelopment of its former plant site in Badin. Much of the work was awarded to North Carolina businesses, including Stewart Engineering Inc. (Charlotte), Apex Engineering (Concord), REI Engineers (Charlotte) and Western Waterproofing Company (Charlotte). Additional contracts will be awarded later this year as work progresses.

The redevelopment of the Badin site -- which includes partial building demolition and restoration of some current structures -- is designed to make the site more appealing to new companies.

Kevin Anton, Alcoa’s Chief Sustainability Officer, has been leading our efforts to recruit new businesses to the site.

“We are very excited to get the redevelopment of the Badin site under way. This is a significant investment by Alcoa, and a big step toward bringing new jobs to Badin,” he said. “Over the last three or four months, we’ve marketed the location to many companies who may have an interest in locating here. We are excited about what redevelopment will mean to the community, and the new construction and permanent jobs it will bring.”

Alcoa has led the recruiting effort and is also working with local and state economic development officials to attract new employers to Badin.

Redevelopment work is currently under way, and a majority of the site improvements are expected to be complete by the end of 2011.

Click here to read the press release.

Salisbury Post: Eagles settle in at High Rock

2011-05-17T16:12:00.000-04:00

The Salisbury Post ran a story today (Eagles settle in at High Rock, by Karissa Minn) highlighting APGI's efforts to carefully cultivate bald eagle habitats at the Yadkin Project.

A record number of bald eagle nests were spotted during an aerial survey conducted in March. The survey found seven active nests at the Yadkin Project — three at High Rock Lake, two at Tuckertown and one each at Falls and Badin Lake — the largest number of active nests since APGI began conducting annual surveys in 2001.

During the past 10 years, 19 different bald eagle nests have been identified along the reservoirs, producing nearly 50 chicks. That is a testament to the type of environment and natural habitat that exists around the Yadkin Project.

Marshall Olson, APGI's environmental and natural resources manager, has made a concerted effort to manage the property around the reservoirs in a responsible way that attracts and protects bald eagles and other wildlife.

Click here to read the complete Salisbury Post article and see more photos from Jon C. Lakey.

New legislative proposals target Alcoa

2011-05-02T12:21:00.002-04:00

I wanted to let you know that three bills have recently been introduced in the NC General Assembly that are directly targeted at Alcoa. Those bills, introduced by Sen. Fletcher Hartsell and Sen. Stan Bingham, include:

Senate Bill 628: This bill would make fundamental changes in how water quality permits and certificates are currently processed and granted. First and foremost, it would require the Division of Water Quality to conduct an environmental compliance review for every applicant. This change would impose additional costs and burdens on both DWQ and applicants for water quality permits and certificates.

In addition, the proposed legislation would change the standards under which new and renewed water quality permits and certificates are evaluated for past compliance. The bill would require the Environmental Management Commission to deny a water quality permit or certificate if information that is material to a permitting or certification determination is intentionally withheld, or if a false statement, representation, or certification is knowingly made in an application for a permit or certification or in any data, plan, or other document submitted in support of an application for a permit or certification. Intentionally withholding or omitting information that is material to a permitting or certification determination would be punishable by a new Class 2 misdemeanor.

Senate Bill 629: This bill imposes an annual 6% privilege tax on the gross taxable receipts of an unregulated company that sells electricity or water. (Companies with revenues below $6 million a year are generally excluded.). By unregulated, it appears to mean utilities whose rates are not regulated by the N.C. Utilities Commission.

Senate Bill 626: This bill calls for a legislative study surrounding the progress of cleanup efforts at Alcoa's former Badin Works smelter in Stanly County, and the NC Department of Environment and Natural Resources’ handling of contamination at the site. Results would be submitted to the Environmental Review Commission and the Joint Legislative Program Evaluation Oversight Committee by February 1, 2012.

We are following these bills closely and will continue to keep you updated about the status of these bills as the legislative session moves forward.

Progress at the Yadkin Project: Part 2

2011-04-11T15:37:00.000-04:00

A couple weeks ago, I started a blog series to talk about the progress we've made over the last few months. In the meantime, we've had several good news stories that I posted, but I'd like to get back to sharing our progress. Earlier, I talked about sharing our financials and our operating expenses. Today, I'd like to cover how we've addressed water quality concerns. There are two parts to this issue:

DO Report: We have been monitoring dissolved oxygen (DO) levels at the Yadkin Project for several years and are encouraged by the results. We shared the 2010 Dissolved Oxygen Report with the NC Division of Water Quality (DWQ) on January 14. The results show that instantaneous DO levels for water leaving the Yadkin Project met or exceeded the instantaneous DO standard 99.9% of the time in 2010. The DO daily average level met or exceeded the daily DO standard 97.4% of the time.

APGI remains committed to meeting North Carolina’s water quality standards and continues to believe that the 401 certification that DWQ issued in 2009 assures those standards will be met.

401 Water Quality Certificate: We appealed DWQ’s decision to revoke our 401 Water Quality Certificate on January 28. Our appeal will show that DWQ was well informed about our solution for increasing dissolved oxygen levels and that APGI did not withhold important information.

The resolution of these issues is a necessary first step to implementing the many positive enhancements in the Relicensing Settlement Agreement.

My next blog in this series will cover improving life in Badin.

Alcoa wins national award for successful brownfield redevelopment

2011-04-07T16:45:00.000-04:00

On April 5, Alcoa received the Phoenix Award Grand Prize for excellence in brownfield redevelopment for reclaiming a former aluminum smelter in Oregon and returning it to productive use. (Read the press release.)

This was an amazing project. We partnered with the Port of Portland and FedEx and took a 700-acre industrial property and created an industrial park that now has 350 jobs and potential for more.

It's what we want for Badin too.

In February, we started the redevelopment of the Badin site, and will invest more than $10 million this year preparing the facility - including demolition, enhancing the appearance and improving the facilities - for new tenants to bring new jobs to the community.

The Troutdale project shows that with effort and dedication you can take a former plant site and give it new life. You can create new jobs and improve the quality of life of residents in the area - when everyone pulls together to make it happen. That was the key to our success in Troutdale, and we are working hard to replicate it here in North Carolina.

Salisbury Post profiles former Alcoa employee

2011-03-24T10:55:00.002-04:00

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

2011-03-22T10:54:00.000-04:00

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

2011-03-20T16:05:00.004-04:00

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

2011-03-04T09:08:00.000-05:00

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

2011-03-02T15:14:00.001-05:00

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.

Fall of water tower signals new beginning for Alcoa plant

2011-02-27T15:40:00.003-05:00

Blog post by Mark Gross, Alcoa Badin Facilities Manager

Ever since I came to work at Alcoa, a 120-foot water tower has stood high above the Badin plant.

This morning, the water tower came down. The carefully planned removal of the tower is part of our ongoing efforts to prepare the plant site to attract new companies – and new jobs – to the community.

When the tower landed safely on the ground, it marked an important milestone in our preparations to site for new employers. For the community, it serves as a visible symbol of our commitment to give new life to the site.

This year, we’re spending more than $10 million to make the plant site more attractive for new companies. The work involves renovating buildings, removing equipment and razing buildings that don’t meet the needs of future tenants.

The water tower, erected in the 1960s to provide a backup water supply for our aluminum operations, had outlived its purpose and many local residents considered the structure an eyesore.

You can click here to watch video footage of the tower coming down.

The Best Path Forward

2011-02-21T16:17:00.001-05:00

I’ve been spending a lot of time traveling across North Carolina in recent weeks talking with people about the Yadkin Project. When I returned to Badin, I was struck once again by the sheer beauty of this place.

Looking out at the Badin Lake shoreline on a bright winter morning, you can see the wintergreen and the bare hardwood trees along the shore with a ray of sun shining on their branches. There’s a ripple in the water from some creature stirring below and a bird majestically flying overhead.

It is a wonderful reminder of what a great resource the Yadkin Project is to North Carolina. And, I believe, it demonstrates the care with which Alcoa has managed this great resource for the past 100 years.

North Carolina is a natural wonderland — with the Smoky Mountains to our west, and the Outer Banks to the east — and we are lucky to have this historic and scenic spot in the heart of the state.

This is where North Carolina’s first people settled 10,000 years ago. The Hardaway Site, one of the oldest and most significant archaeological sites in North America, was discovered in the shadows of Morrow Mountain in the 1940s.

The hydroelectric dams along the Yadkin River have helped define this area today. The dams control flooding. They generate renewable energy. And they provide unlimited opportunities to hike, fish, camp, and boat along the lakes on the Yadkin River.

All of this reminds me of a quote from Friedrich Nietzsche, the 19th-century philosopher: “All credibility, all good conscience, all evidence of truth come only from the senses.”

When you stand along the shoreline, in a boat on the water, or in the forest around these lakes, pay close attention to your senses: the taste of the morning air, the sight of the undisturbed lands along the shore, the smell of the pines, the sound of an eagle crying overhead and the feeling of peace.

Do that, and you will know that Alcoa is the best path forward.

Alcoa recognized for ethical business practices

2011-02-02T16:43:00.000-05:00

Alcoa announced today it again has achieved the top spot in the Basic Resources category in the annual Covalence Ethical Rankings, a major international survey that measures the ethical performance of multinational companies.

“To be ranked number one in our industry in the 2010 Covalence rating confirms the values and integrity Alcoans have embodied for years. We hold ourselves to the highest ethical business practices, combined with a profound respect for the individual and a strong responsibility toward the environment,” said Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld.

Covalence’s reputation index, distributed by Thomson Reuters, Bloomberg and Capital IQ, is a barometer of how multinationals are perceived in the ethical field, and measures performance across a range of criteria such as labor standards, waste management, product social utility and human rights policy.

Alcoa has been rated No. 1 in the basic resources category since the ranking began in 2005. Alcoa placed 15th overall in 2010 across 18 sectors and 581 companies tracked.

APGI releases additional information on 401 appeal

2011-02-01T10:13:00.000-05:00

On Friday, January 28, Alcoa Power Generating Inc. (APGI) appealed the North Carolina Division of Water Quality's (DWQ) revocation of APGI's water quality certification (401).

Today, we are releasing documentation showing that DWQ was well informed about the equipment in question and its functionality in increasing levels of dissolved oxygen (DO) in the water and that APGI did not withhold important information.

Please visit our website at www.alcoa.com/yadkin/en/info_page/401_appeal_summary.asp for more information.

Alcoa Power Generating Appeals Water Permit Revocation

2011-01-28T15:24:00.000-05:00

Record Shows Full Disclosure; State Decision Based on Incomplete Facts

Alcoa Power Generating Inc. (APGI) has appealed the North Carolina Division of Water Quality’s (DWQ) revocation of its water quality certification, stating that the agency was well informed about the functionality of the equipment in question and that the company did not withhold material information.

“In its revocation notice, the DWQ quotes selected portions of emails that do not provide the complete story and were taken out of context. If you read the entire email chains in context, and review the entire record, you find that no material information was withheld,” according to Rick Bowen, President, Alcoa Energy.

A complete review of the emails cited by the DWQ shows that some of individuals who were working on the relicensing and authored these messages were confused at the time of the email exchange, and the points of confusion were cleared up in subsequent emails. For example, during one of the exchanges, a consultant concludes by saying, “This is news to me. Sorry for the confusion.” In another, a consultant states, “As I was looking over the materials again, I must confess I got confused.”

“We have the documentation to show that we were not withholding material information, and that we have publicly shared the operating conditions covered in these messages,” said Bowen.

The record shows that the DWQ was aware that operating conditions and generating levels could affect dissolved oxygen enhancement, participated in multiple discussions over a period of years on the same subject, and was in possession of detailed reports on the effects various operating scenarios had on dissolved oxygen levels,” Bowen said.

The DWQ revoked APGI’s water quality certification on December 1, alleging that the company withheld information regarding the project’s ability to meet the state’s water quality standard for dissolved oxygen. Alcoa Power Generating filed an appeal of that decision today. APGI is a subsidiary of Alcoa.

According to documents compiled by APGI, company officials and others discussed the system with the state during at least three Issue Advisory Group meetings attended by DWQ representatives on October 7, 2003, May 4, 2004 and April 6, 2005. The information was also included in APGI’s 2006 Federal Energy Regulatory Commission (FERC) license application, the Final Environmental Impact Statement for the Yadkin Project issued by FERC in 2008, and in multiple Yadkin Project Water Quality reports.

Some examples include:

Representatives of the DWQ participated in a Water Quality Issue Advisory Group meeting on May 4, 2004, where there was discussion of the anticipated structure of the dissolved oxygen enhancement and compliance provisions to be included in the 401 water quality certification. At this meeting, the typical operating scenarios at the Narrows development were discussed, as well as the process of how dissolved oxygen increases as the units are operated.
The Final Environmental Impact Statement for the Yadkin Project issued by FERC in April 2008 reviews how operating conditions and generating levels affect dissolved oxygen enhancement. In it, FERC’s hydropower experts reviewed the results of the enhancement test and drew significant conclusions, such as “tests indicate that this aeration system [at Unit 4] increases DO concentrations by differing magnitudes, depending on the generation flows of each of the Narrows units and whether the two valves are open.”
The 2005 Yadkin Water Quality Final Study prepared by Normandeau Associates discussed the effect of the operational conditions. The DWQ received and commented on the draft water quality report.

“We hope that our appeal will mean quick reinstatement of the water quality certification process so we can continue to work toward a new license, as well as a future with better water quality and more areas for Stanly County residents to enjoy with their families,” said Bowen.

Once APGI’s license is renewed, there will be many benefits to North Carolina, including improvements to water quality; increased water withdrawals; higher water levels during an extended recreation season; the creation of new parks, swim areas and other recreational opportunities; funding for recreational support; more flexibility for property owners; donations for habitat protection and water safety; and work with community partners for historical and cultural protection. In addition, APGI will sell or donate more than 6,000 acres for conservation, recreation or game lands.

APGI is also implementing a plan to improve water quality that to date has resulted in significant improvements in dissolved oxygen levels. In a recent report filed with the DWQ, APGI documented that water leaving the Yadkin Project met state standards for dissolved oxygen 99.9 percent of the time.

High Rock board sides with Alcoa for relicense

2011-01-24T09:55:00.000-05:00

The Lexington Dispatch has reported that the High Rock Lake Association Board of Directors “unanimously passed a resolution last week confirming the board’s support of a relicensing settlement agreement that would keep the company in control of the Yadkin River and its four hydroelectric dams.”

“We feel the Division of Water Quality withdrew that water quality certificate more out of frustration with the ongoing judicial hearing than because of any real reasons for lack of information,” Len Strong, vice president of the High Rock Lake Association, told the Dispatch. “The information that they’re (state) claiming wasn’t there in fact was there … two years ago. Alcoa made that information totally available to our board as well as to the general public. But the state is claiming, ‘oh we didn’t know.’ So our feeling is this was a political maneuver.”

Strong later added, “There is a gut issue here. More delays means that all of those agreements relative to shoreline management, relative to water levels and so on, are up in the air and not really enforceable. We feel the lack of having that relicensing agreement is depriving all of the property owners and stakeholders from those agreements they worked so hard to get.”

Click here to read the entire article.

Dissolved Oxygen Report Shows Continued Improvement at Alcoa Power Generating’s Yadkin Project

2011-01-20T13:12:00.000-05:00

Water Leaving Yadkin Project Meets State Instantaneous Dissolved Oxygen Standard 99.9 Percent of the Time

Water leaving Alcoa Power Generating’s (APGI) Yadkin Project met a state standard for dissolved oxygen levels 99.9 percent of the time in 2010, according to a report submitted last week by APGI to the North Carolina Division of Water Quality (DWQ).

APGI’s Yadkin Project operates four dams along the Yadkin River. Water enters the project area at High Rock Dam, then flows through Tuckertown Dam, to Narrows Dam and exits the project at Falls Dam. The report demonstrates that water coming into the project at High Rock has relatively low levels of dissolved oxygen (DO). But there is a substantial improvement in DO at the Narrows Dam, where APGI installed new technology in 2008 and 2009 to enhance DO levels, and that improvement is maintained until the water exits the Yadkin Project at Falls dam.

The report on dissolved oxygen levels in the Yadkin Project tailwaters shows that discharges from the Falls Dam met the state instantaneous dissolved oxygen standard 99.9 percent of the time and daily average dissolved oxygen standard 97.4 percent of the time. Water coming into the project at High Rock, where a $40 million project to install DO enhancement technology awaits approval of APGI’s operating license by the Federal Energy Regulatory Commission (FERC), met the state instantaneous dissolved oxygen standard 65.1 percent of the time and daily average dissolved oxygen standard 43.1 percent of the time.

“This report shows continued improvement of dissolved oxygen levels in water below the Narrows Dam and demonstrates that new technology installed at Narrows is successfully increasing dissolved oxygen levels in downstream waters. This is true under the full range of unit operation, including ramp up, ramp down and other periods of relatively low operation,” said Kevin Anton, Chief Sustainability Officer for Alcoa. “These results provide reassurance that additional technology enhancements at Narrows and High Rock planned under a new federal license will further increase dissolved oxygen levels as part of our commitment to meet state DO standards.”

An adequate amount of oxygen in the water is necessary to support healthy aquatic life, and many states monitor DO levels as one way to help measure water quality in lakes and rivers.

Under state standards applicable to the Yadkin Project under a new federal license, DO concentrations must meet or exceed 4.0 mg/L when measured instantaneously, and DO concentrations must meet or exceed 5.0 mg/L when measured on a daily average basis.

APGI has developed a comprehensive plan for improving DO levels throughout the Yadkin Project that will cost up to $80 million, depending upon the final requirements. As part of its plan, APGI has been monitoring DO levels since 2007.

The DO report submitted to the Division of Water Quality summarizes the levels of dissolved oxygen measured in the Yadkin Project tailwaters since 2007. Data is recorded every 15 minutes, 7 days a week in the tailwaters of each dam between May 1 and November 30. The measurements are taken during this time period, when DO levels are typically at their lowest, at the state’s request. Tailwaters are those waters immediately below the dams where dissolved oxygen levels would be influenced by water released through the dams. DO monitors are located in well-mixed areas that are representative of temperature and dissolved oxygen conditions throughout the tailwaters. Normandeau Associates, a national firm specializing in environmental management and consulting, is responsible for quality assurance/quality control, calibration, maintenance and collection of data from the DO monitors.

The report shows significant improvements since DO technology was installed at Narrows:

For the third consecutive year, Falls tailwaters substantially met the state instantaneous DO standard: 99.9 percent in 2010, 99.7 percent in 2009, and 99.5 percent in 2008.

Narrows tailwaters met the state instantaneous DO standard 93.4 percent of the time in 2010 — a 34 percent increase over 2007 levels (69.6 percent). Since 2007, APGI installed two draft tube air valves on Narrows Units 1 and 2 to improve DO levels. The same technology was installed on Unit 4 in 2001 and will be installed on Unit 3 once a new FERC license is issued.

Dissolved oxygen levels are enhanced at Narrows even when generating units are operating as low as one megawatt, due to aeration from vacuum breaker valves. The vacuum breaker air valves open when the units are operating at lower settings and introduce air into the water.

The High Rock and Tuckertown tailwaters met the state DO standard less frequently in 2010. High Rock met the state instantaneous DO standard 65.1 percent of the time, and Tuckertown met the state instantaneous DO standard 56.3 percent of the time. This could be due annual variability in hydrologic and meteorological conditions or changes in the quality of the water entering High Rock.

The Yadkin Project’s Relicensing Settlement Agreement (RSA) outlines a schedule for installing “through-the-blade" aerating turbines for all three generating units at High Rock once a new FERC license is issued. The engineering, planning, and model testing of the new turbines has been completed and long lead-time items have been ordered. APGI has committed to install additional DO enhancement technology at Tuckertown and Falls if necessary to meet state DO standards.

“We have made great progress and have every reason to believe the technology enhancements will continue to increase dissolved oxygen levels and allow the Yadkin Project to meet the state DO standard,” Anton said. “Our commitment to reaching that goal has never been in question.”

Click here to read the full report.

Alcoa Announces Environmental Hotline

2011-01-13T11:01:00.000-05:00

Alcoa today announced that the company is making available its telephone hotline system for area residents to report any suspected environmental issues related to operation of the former Badin Works aluminum smelter or the Yadkin Hydroelectric Project.

The hotline is managed by a third-party, EthicsPoint, and is available 24 hours a day by calling 1-800-346-7319. EthicsPoint will take information from callers, who may remain anonymous if they choose. EthicsPoint then submits a report to Alcoa for handling. Callers may check back periodically with EthicsPoint to receive updates from Alcoa on the status of the report and answer potential requests for more information or clarification.

The hotline is being made available to collect information about suspected environmental contamination that area residents believe has not been previously reported or investigated.

“Alcoa has worked closely with state and federal officials for more than 20 years to properly address environmental issues on our property,” said Kevin Anton, Chief Sustainability Officer for Alcoa. “While we are confident we have conducted a full and thorough survey, this hotline will help us be sure by making it easier for people to bring concerns to our attention.”

Alcoa has operated a hotline system for employees since 1993.

Uwharrie Commission holds first meeting

2011-01-07T16:37:00.000-05:00

The Uwharrie Regional Resources Commission, established by the NC General Assembly last year to protect and promote the region's natural resources, held its first meeting last night in Stanly County. Karissa Minn with the Salisbury Post has a recap of the meeting.

One of the primary tasks involved selecting the commission's leadership. Tony Dennis, chairman of the Stanly County Board of Commissioners, was elected chairman. Max Walser, former chairman of the Davidson County Board of Commissioners, was elected vice chairman. Jason Walser, executive director of the Central Piedmont LandTrust, was elected secretary and treasurer.

Other members of the commission include Keith Crisco, Roger Dick, Dee Freeman, Martha Sue Hall, Zoe Hanes, David Jones, Bill Mullinix, Jim Nance and Becky Wallace.

The group's next meeting will be February 24.

Alcoa to lower High Rock Lake for pier maintenance, excavation

2011-01-06T09:26:00.000-05:00

Alcoa Power Generating Inc. (APGI) will lower High Rock Lake to 10 feet below full by February 1, a move that will allow lakefront property owners to perform pier maintenance and excavate reservoir sediments to maintain or create recreational boat access. Water levels will remain 10 feet below full for three weeks, before APGI begins refilling the reservoir to normal levels.

"We have many property owners around the lake who have obtained excavation permits and are eager to improve access to their piers," said Marshall Olson, Environment and Natural Resources Manager for APGI’s Yadkin Project. "Water levels at High Rock have not dropped low enough to excavate in more than three years, so we are trying to accommodate those property owners who have requested a drawdown.

“This should also provide a boost in business during a relatively slow time of year for area contractors who provide excavation and pier maintenance services.”

High Rock Lake is a shallow reservoir that accumulates sediment that flows downstream from upper portions of the Yadkin River. Because piers require a minimum water depth of 8 feet, the Yadkin Shoreline Management Plan allows for excavation of sediments at High Rock Lake.

Homeowners who wish to excavate around their piers must receive prior written approval from the U.S. Army Corps of Engineers, the North Carolina Division of Water Quality, and the North Carolina Department of Cultural Resources (as necessary) and submit an application to APGI. For more information about excavation regulations, refer to the Shoreline Stewardship Policy of the Shoreline Management Plan at: www.alcoa.com/yadkin/en/info_page/stewardship_alteration.asp.

The exact drawdown schedule may be impacted by heavy rainfall or other unforeseen weather events. For updates about the drawdown, visit the APGI website at www.alcoa.com/yadkin.

Renovation Gives Historic Conference Center Fresh New Look

2010-12-22T16:11:00.002-05:00

Alcoa’s Badin Conference Center has a fresh new look, thanks to a renovation project nearing completion.

The center, owned by Alcoa, is benefiting from $45,000 in improvements, including restoration of the building’s single-pane windows, fresh paint on the interior, and an exterior pressure wash.

The work was performed by Stokes Construction Co. of Albemarle.

“The Badin Conference Center provides an important service to the community, in addition to supporting Alcoa’s need for meeting space,” said Mark Stiffler, Director of Asset Management for Alcoa. “This project protects this historic building and ensures it will be available for years to come.”

The conference center was built by Alcoa in 1916 and operated as the Badin Hospital. After the Hospital stopped operating, Alcoa utilized the facility for various office and administrative purposes. In 1988, Alcoa spent $288,000 to complete a historically correct renovation to the facility and converted it into a conference center and training facility.

Since that time, various Alcoa, Town of Badin and retiree group meetings have been held there. During the Town of Badin’s Strategic Planning project in 2009, funded by an Alcoa Foundation grant, monthly planning meetings were held in the Badin Conference Center.

Remaining work on the restoration project, expected to be completed in the coming weeks, includes repointing and sealing bricks on the exterior of the building.

Alcoa Power Generating to Challenge State’s Effort to Revoke Water Quality Certificate

2010-12-01T13:31:00.000-05:00

Alcoa Power Generating Inc. is disappointed and surprised by the state’s plans to start proceedings to revoke the Yadkin Project’s 401 Water Quality Certificate and will immediately challenge the state’s effort, the company announced today.

The certificate, which lays out a plan for APGI’s Yadkin Project to meet water standards, was issued in 2009 by the North Carolina Division of Water Quality and is currently under appeal by APGI and other parties.

“Our team of experts developed a comprehensive plan to improve water quality and we are already seeing improvement,” said Rick Bowen, president of Alcoa Energy. “We do not believe the state’s decision is justified or appropriate.

“We believe that rather than continue litigation, it would be better to work together toward an outcome that protects the environment and promotes economic development and jobs for residents of North Carolina.”

APGI, a subsidiary of Alcoa, is currently applying to the Federal Energy Regulatory Commission for a new operating license for the Yadkin Project. FERC will not issue a license until a 401 Water Quality Certificate is granted by the state of North Carolina.

In May 2009, the state’s Division of Water Quality issued a certificate that included a plan to install new technology at APGI’s Yadkin Project to improve dissolved oxygen (DO) levels. The installation is not yet complete, but already DO levels are meeting the state’s standards much of the time. At the Falls Dam, for example, DO standards were met 97 percent of the time in 2009

“This same technology is widely and successfully used in the hydropower industry, including more than 15 locations in North Carolina and surrounding states,” Bowen said.

Throughout the 401 application process, APGI worked with state officials, supplying information in the form of monitoring data and other reports to document our approach to meeting water quality standards. No material information was withheld from the state of North Carolina.

“Alcoa Power Generating understands that meeting water quality standards is not optional,” Bowen said. “If the state of North Carolina is concerned that this technology is not adequate, the current 401 certificate contains a ‘reopener’ that allows new conditions to be imposed.

“The state’s decision to revoke our current certificate is unreasonable and was taken without adequate notice or opportunity for response. We plan a vigorous response.”

FORTUNE: Alcoa and the great North Carolina power grab

2010-11-30T10:31:00.000-05:00

The December 6 issue of FORTUNE hits newsstands this week with an article about the "great North Carolina power grab."

The article describes the issues surrounding the Yadkin Project relicensing. You can read the article here:

http://features.blogs.fortune.cnn.com/2010/11/30/alcoa-and-the-great-north-carolina-power-grab/

Update on 401 Hearing

2010-11-09T12:46:00.000-05:00

The hearing regarding the 401 Water Quality Certificate is currently in recess and will resume in Raleigh on Monday, November 15. The hearing is expected to conclude in February 2011.

Since the hearing began on September 27, Administrative Law Judge Joe Webster has heard three weeks of testimony regarding the NC Department of Environment and Natural Resources' May 2009 decision to issue a water quality certificate for the Yadkin Project.

Droughts Conditions Developing along the Yadkin River

2010-09-27T14:36:00.002-04:00

People who like to spend time fishing, boating and playing on the lakes along the Yadkin River have enjoyed consistently high water levels throughout the summer recreation season. But now comes news that the Yadkin-Pee Dee River Basin is beginning to experience drought conditions.

The NC Drought Monitor has classified more than 10% of the region as “Moderate Drought.” The National Weather Service has indicated that, based on low stream flows in the Upper Yadkin, drought conditions could worsen.

We are closely monitoring the developing drought conditions and taking steps to minimize the impact of a drought before it even arrives.

To protect the water supply and downstream environment, Alcoa Power Generating Inc. (APGI) will reduce the amount of water it sends downstream (targeting a weekly average release of 1,000 CFS) and begin working with the Yadkin Drought Management Team to identify how to minimize the impact of drought conditions. The team – comprised of state and federal agencies, hydropower operators, local homeowners, business interests and others – will meet on September 30 to discuss drought conditions, including factors such as actual and forecasted stream flow, precipitation, and ground water levels.

Stay tuned for further information about drought conditions, or visit the NC Drought Monitor for the latest news and updates.

Alcoa responds to Senate committee

2010-09-23T17:09:00.006-04:00

Alcoa has delivered a letter to Sen. Fletcher L. Hartsell, Jr., chairman of the Senate Judiciary II committee, defending the company’s safety and environmental record in North Carolina.

“Alcoa has been a good corporate citizen for more than 120 years, including nearly 100 years in North Carolina, is proud of both its environmental and worker safety records and wants to ensure there is a fair exposition of the matters discussed by your Committee,” wrote William J. O’Rourke, Alcoa vice president of sustainability, environment, health and safety. The letter responded to questions raised during a meeting of the Senate Judiciary II committee on July 6, 2010.

Click here to read the entire letter.

UNC-TV Releases Emails Between Reporter, Former Board Member

2010-09-17T10:10:00.000-04:00

UNC-TV has released additional copies of unredacted emails between reporter Eszter Vajda and Bruce Thompson, a Stanly County lobbyist who served as a member of the UNC-TV Board of Trustees during the development of Vajda’s controversial series on Alcoa. The UNC-TV segments have been widely criticized by journalism professors as slanted, unsupported by the facts and failing to meet accepted journalism standards. The additional emails shed even more light on how the production was influenced by those outside of UNC-TV.

Thompson is one of several Alcoa opponents -- including former House Speaker Richard Morgan, political consultant Carter Wrenn and Stanly County banker Roger Dick -- who worked closely with Vajda as part of a coordinated effort to support a government takeover of Alcoa Power Generating Inc’s Yadkin Project. The recently released emails indicate that Vajda asked for feedback from Thompson on drafts of stories about Alcoa and forwarded to him internal UNC-TV emails about the station’s resistance to produce a documentary about Alcoa.

Thompson resigned his seat on the UNC-TV board on September 7. He requested that UNC-TV make available unredacted copies of his email correspondence with Vajda. Click here to view the emails.

Click here to read more about the UNC-TV issue and view the complete set of public records originally provided by UNC-TV.

NC Division of Public Health: PCBs in Badin Lake fish can’t be directly linked to Alcoa

2010-09-16T17:08:00.001-04:00

Alcoa has received a memo prepared by the NC Division of Public Health (DPH) in July 2010 that casts a great shadow of doubt over contentions that Alcoa is solely responsible for PCBs found in Badin Lake.

The memo, provided to Alcoa as a public record from Stanly County, indicates that Alcoa cannot be identified as the source of PCBs found in Badin Lake fish.

“It is possible that the PCBs in Badin Lake have been contributed from sources other than the Alcoa facility. As far as DPH knows, upstream sources of PCBs have not been evaluated,” the memo states.

Click here to read the entire memo.

Alcoa has long believed that upstream sources of PCB contamination deserve closer scrutiny. The NC Division of Water Quality has reported that fish in the Yadkin River near Mocksville – well upstream of Badin Lake – have PCBs levels similar to the fish in Badin Lake.

There are 4,500 square miles that drain into the Yadkin Project and more than 100 industrial users and municipalities are permitted to release discharges into the Yadkin River upstream of Badin Lake.

Judge denies motions for summary judgment

2010-09-15T16:03:00.000-04:00

A planned hearing on whether the N.C. Division of Water Quality properly issued a water quality certificate for the Yadkin Hydroelectric Project will move forward on September 27, following today’s ruling by Administrative Law Judge Joe Webster to deny all motions for summary judgment.

We look forward to a full hearing on these issues and are fully prepared to present our case at trial. It has been more than 16 months since the Division of Water Quality announced that the Yadkin Project met the standards for Section 401 certification, and we are eager for these issues to be resolved so FERC will act on our relicensing application.

Alcoa begins modernization project in western North Carolina

2010-08-27T14:45:00.000-04:00

Alcoa announced the kickoff of a $110 million modernization project at Cheoah Dam, one of four hydroelectric dams that make up Alcoa Power Generating Inc.’s Tapoco Project. This modernization effort demonstrates Alcoa's commitment to follow through on its relicensing commitments in a timely manner.

Alcoa kicks-off Cheoah Dam Modernization Project:
New generators, turbines, transformers to increase efficiency

Alcoa today kicked off a $110 million modernization project at Cheoah Dam, one of four hydroelectric dams that make up Alcoa Power Generating Inc.’s Tapoco Project. The modernization effort will increase the dam’s efficiency and energy output and increase the life of the dam by at least another 40-50 years.

“Hydropower is clean, renewable, reliable and efficient,” said Rick Bowen, Alcoa Energy President. “These attributes equal sustainability – sustainable energy and sustainable jobs. That’s why we are looking forward to replacing the four 90-year-old Francis turbines with four new high-efficiency turbines, generators, and transformers which will provide an additional 22 megawatts of generating capacity at APGI’s Tapoco Cheoah plant.”

The modernization follows the recent relicensing of the Tapoco project by the Federal Energy Regulatory Commission. The new 40-year license was effective March 1, 2005 and outlines protection, mitigation, and enhancement measures for the Project that address ecological resources as well as other beneficial uses of the Cheoah and Little Tennessee Rivers, including hydropower generation, watershed protection, endangered species enhancement, fish passage and recreational opportunities.

Click here to read the complete press release.

When the Cheoah Dam was completed in 1919, it was the world’s highest overflow dam at 225 feet. The dam was made famous by serving as the backdrop of the jump scene in the 1993 major motion picture, The Fugitive, starring Harrison Ford.

YES!Weekly revisits the Eszter Vajda case

2010-08-26T16:56:00.000-04:00

Here's an interesting take on the UNC-TV stories from Eszter Vajda by YES!Weekly reporter Keith Barber.

After reviewing the public records from UNC-TV, Barber writes: "It appears the pressure placed on UNC-TV management didn’t come from Alcoa, but from politicians like Basnight. Therefore, if UNC-TV management laid a finger on Vajda’s Alcoa segments, state legislators, Gov. Beverly Perdue’s administration and every single Alcoa opponent would’ve cried foul."

Revisiting the Eszter Vajda case

By Keith Barber

The Society of Professional Journalists Code of Ethics dictates that journalists must be accountable to their readers. “Admit mistakes and correct them promptly,” the code of ethics states. That is why I want to revisit the case of Eszter Vajda, the former UNC- TV reporter who was fired by the public broadcasting station on Aug. 17.

In my column published in the Aug. 18 edition of YES! Weekly, I harshly criticized the management of UNC-TV for a series of blunders over the past seven weeks. When I filed my story, it appeared the station’s management team was building a case against Vajda.

My instincts proved correct. But now I realize that UNC- TV was completely justified in dismissing Vajda.

Two face-to-face meetings with Vajda, a six-year veteran of UNC-TV, and her researcher/collaborator Martin Sansone had left me with the impression that the station had purposefully distanced itself from Vajda’s documentary, The Alcoa Story, and her three-part series about Alcoa’s efforts to re-license the water rights to a 38-mile stretch of the Yadkin River for another 50 years. The series aired on “North Carolina Now” last month. But I only heard one side of the story in those meetings.

Each time I solicited input from UNC-TV, I was told to speak with the station’s spokesman, Steve Volstad. Typically, I would leave voicemail messages and Volstad would respond via e-mail. Volstad was responsive but would not comment on personnel matters. Vajda’s disciplinary review on Aug. 13 fell under that category.

And then there was the disclaimer that UNC-TV added to the beginning and ending of parts two and three of the “North Carolina Now” series. “For the first time in its network’s history, UNC-TV has made the decision to refrain from exercising its customary editorial review over an individual reporter’s project,” the disclaimer read. “The reason for this unusual step is to alleviate any concerns surrounding unfounded and untrue allegations of inappropriate suppression by UNC-TV management of the reporter’s ability to tell this important story.”

The disclaimer threw me for a loop; I was not alone.

A panel of three professors from the UNC School of Journalism and Mass Communication blasted UNC-TV for its “ill-advised” decision to abdicate its editorial responsibilities. But once I learned the whole story, I understood the unorthodox move by the station’s management.

On Aug. 18, I traveled to Research Triangle Park to pick up a DVD that contained more than 5,800 internal documents from UNC-TV as part of a public-records request by YES! Weekly. When I began sifting through the internal e-mails and memos (many of which had been entirely redacted), my heart began to slowly sink.

In one e-mail message, Vajda thanked Roger Dick, a Stanly County community activist and one of Alcoa’s most outspoken critics, for taking her to dinner. The SPJ Code of Ethics states, in part,

“Refuse gifts, favors, fees, free travel, and special treatment.”

Vajda’s e-mails also reveal her alliances with politicians, state officials and special-interest groups adamantly opposed to Alcoa’s bid for another 50 years of control over the Yadkin River. Richard Morgan, the former NC Speaker of the House and a paid consultant for the NC Water Rights Committee, paid Sansone $3,000 for his consultancy services. Considering Sansone and Vajda’s close personal and professional relationship, this represented a major conflict of interest for Vajda.

“Avoid conflicts of interest, real or perceived,” the SPJ Code of Ethics states. “Remain free of associations and activities that may compromise integrity or damage credibility.”

UNC-TV’s internal documents depict a power struggle between Vajda and station management over how the Alcoa story should be presented. Vajda lobbied hard for a full-length documentary, while Shannon Vickery, the station’s director of programming, and news anchor Mitchell Lewis maintained that the station simply didn’t have the resources to produce a lengthy piece on Alcoa.

It appears Vajda attempted to go over the heads of her direct supervisors and make her plea to UNC-TV Director and General Manager Tom Howe. But Vickery canceled the April 23 meeting and gave her a protocol warning. On at least two occasions, Vickery and Lewis reminded Vajda that her request to produce a documentary had been denied, and she should not give the impression UNC-TV was going forward with a long-form story. UNC-TV Production Manager Karen Pearce also complained about Vajda’s reluctance to follow station protocol, saying that Vajda pulled resources assigned to “Legislative Week in Review” for her story on Alcoa, and then canceled the shoot at the last minute.

On June 28, NC Secretary of Commerce Keith Crisco arrived at UNC-TV headquarters and met with Vickery to discuss the status of the Alcoa story. Crisco brought a release form that would allow for the Department of Commerce to take possession of Vajda’s tapes and incorporate the footage into a documentary production. Sansone composed the release form with Vajda’s full knowledge. The release form included language that would have allowed Vajda to edit her footage as a third party at some point in the future.

Vajda admitted she did not divulge her actions to Vickery, Lewis or anyone at UNC-TV. This end-run around management was orchestrated by Vajda, and constitutes insubordination on her part. Insubordination is grounds for dismissal.

Much to her credit, Vickery denied Crisco’s request. Vajda’s raw tapes remain in UNC-TV’s possession. Other e-mails reveal Vajda’s inappropriate reaction to her tapes being subpoenaed by NC Sen. Fletcher Hartsell for review by the Senate Judiciary II Committee. In an e-mail to

WUNC-FM reporter Laura Leslie, Vajda stated, “This is something I’m happy with!… Hartsell is saving my ass!” Critics called Hartsell’s action a violation of the First Amendment, but inexplicably, Vajda was pleased by the development.

Meanwhile, Howe and Vickery were fighting to protect Vajda’s privileged materials from the clutches of the Senate committee. While Vajda was ecstatic, UNC-TV management was pleading with UNC System President Erskine Bowles to persuade Hartsell to cease and desist. Bowles offered no support, and simply told UNC-TV management to follow their lawyers’ advice. There was no unanimity on the legal issues, and it wasn’t clear if North Carolina’s Shield Law applied to UNC-TV, but the laws regarding state agencies certainly did. With great reluctance, UNC-TV turned over Vajda’s footage. A dangerous precedent had been set, but it would be unfair to blame UNC-TV’s management for the reckless actions of politicians and state officials.

A June 25 letter from Howe to state Sen. Marc Basnight sheds light on the disclaimer. After a phone conversation with Basnight, Howe composed a letter denying any pressure from Alcoa or anyone else leading to decisions regarding the format and timing of the Alcoa segments.

“I am completely confident that no impropriety of any sort exists in regard to the editorial or production processes associated with this project,” Howe states.

It appears the pressure placed on UNC-TV management didn’t come from Alcoa, but from politicians like Basnight. Therefore, if UNC-TV management laid a finger on Vajda’s Alcoa segments, state legislators, Gov. Beverly Perdue’s administration and every single Alcoa opponent would’ve cried foul.

The SPJ Code of Ethics is a living document, and each story brings with it a unique set of ethical challenges. Vajda should be commended for diving into the Alcoa story, and telling the human drama behind the political battle. But Vajda found herself in over her head, and in her quest to make a name for herself she crossed the line time and time again. Vajda’s actions also set off a chain of events that led to a dangerous precedent, which has caused irreparable damage to UNC- TV’s credibility. In the end, the station’s management had no choice but to fire her.

Questions about the future of UNC-TV linger:

Can UNC-TV regain the trust of its audience and therefore, enable its reporters to tell important stories? Can the state’s Shield Law for journalists be extended to state agencies?

In the name of public enlightenment and the protection of our democracy, I pray the answer to both questions is a resounding “yes.”

UNC -TV Email Records Raise Questions about Anti-Alcoa effort

2010-08-19T12:17:00.005-04:00

Public records provided by UNC-TV show that a video by Eszter Vajda was part of a coordinated campaign by groups opposed to Alcoa Power Generating Inc.'s effort to obtain a new operating license for the Yadkin Project. Although the records provided by UNC-TV are heavily redacted, the emails uncovered:

* A $3,000 payment by opposing groups to a researcher working with Vajda on the UNC-TV story. That revelation – breaking what UNC journalism professor Leroy Towns called the cardinal sin of journalism – has raised concerns about the credibility and integrity of the reports and the efforts to discredit Alcoa.

* Vajda was coordinating her actions with political adversaries of Alcoa Power Generating.

* Vajda told those adversaries to by-pass her work email and use her personal email address.

Emails indicate that Vajda and researcher Martin Sansone frequently joined APGI's opposition –including former House Speaker Richard Morgan, political consultant Carter Wrenn, Stanly County banker Roger Dick and Stanly County lobbyist Bruce Thompson – to coordinate their efforts.

Morgan is involved in developing strategy for the NC Water Rights Committee, a group that was created by Thompson to oppose APGI's relicensing effort. Coincidentally, Thompson is a board member at UNC-TV.

Click here to the view a copy of the public records and click on articles below to learn more about this issue:

Laura Leslie: Isaac Hunter’s Tavern (August 18, 2010)
Vajda out
UNC-TV Production Director Shannon Vickery confirmed today that Senior Legislative Correspondent Eszter Vajda “is no longer employed” by the station. Vickery couldn’t comment further, citing confidentiality reasons.
Sources at the station say Vajda was the subject of a disciplinary hearing late last week, even before Saturday’s news stories that revealed she’d taken money from former House Co-Speaker Richard Morgan.

John Locke Foundation (August 18, 2010)
Alcoa Documentary “Researcher” Lied to WFAE?
Latest twist in the UNC-TV documentary on Alcoa and its North Carolina operations involves a globe-trotting “researcher” getting $3000 from an anti-Alcoa activist (and former best-bud of Jim Black, Richard Morgan.)
That researcher/aspiring filmmaker, Martin Sansone, yesterday told WFAE that the $3000 from Morgan was needed to help get him back in the country following the volcano eruption in Iceland which shut down air travel from Europe earlier this year.
But UNC radio Laura Leslie notes that the eruption did not happen until after Sansone and Morgan worked out the payment plan.

WFAE Radio (August 17, 2010)
$3,000 Payment Lands UNC-TV, Reporter More Scrutiny
If you're a reporter, you don't accept payment from sources or the people you're covering. It's a basic tenet of journalism ethics.
But the e-mails that Alcoa received from UNC-TV show that money did change hands. A researcher received $3,000 from former House Speaker Richard Morgan for his work on the series.
That's significant because Morgan now works for the North Carolina Water Rights Coalition, which is the most vocal opponent of Alcoa's hydropower operation on the Yadkin River.
“It’s further confirmation that the TV report was part of the opposition's effort to seize Alcoa Generation's property,” says Alcoa spokesman Mike Belwood.

The News & Observer (August 14, 2010)
Alcoa foe paid worker on TV story
A researcher who worked on UNC-TV news stories critical of the aluminum company Alcoa took money from a consultant fighting the company's control of dams on the Yadkin River.
Former House Speaker Richard Morgan, who works for the N.C. Water Rights Committee, gave $3,000 to Martin Sansone, a long-time friend of Eszter Vajda, the UNC-TV correspondent who reported stories about Alcoa that aired last month.

UNC Journalism Professors Critical of UNC-TV Series

2010-08-05T13:56:00.000-04:00

Journalism experts have criticized a three-part series about Alcoa that was broadcast on UNC-TV on July 6-8, saying the segments did not meet universally accepted journalism standards and should not have been accepted for broadcast.

Alcoa has obtained a draft memorandum prepared by a panel of three journalism professors from the UNC School of Journalism & Mass Communication. The review by Leroy Towns, Andy Bechtel and Jim Hefner cites a “breakdown in the editorial process” that resulted in “an unbalanced and slanted view” of these issues that is “unsupported by the facts.”

Because the UNC-TV series is being distributed widely by Alcoa’s opponents, it is important for people to understand that independent journalism experts have raised serious concerns about the credibility of the stories. Viewers need to know the series has serious flaws and should not be taken at face value.

For more analysis about the UNC-TV series, click here to read a related blog post by Leroy Towns.

“Sources are stacked on one side, statements about health risk and environmental damage are made without credible sources, 40-year-old documents are made to look modern, and a lawyer for people suing Alcoa dominates. Additionally, Alcoa projects in other states are slid into the program so that they appear to reflect on the Yadkin project and facts favorable to Alcoa were ignored,” Towns writes. “Any UNC journalism student producing this kind of “story” would get a failing grade.”

Read more about this story from WRAL TV or the Carolina Journal.

Report from the Legislature

2010-07-16T14:00:00.001-04:00

In the waning hours of this year's legislative session, the NC General Assembly passed a bill to create a Uwharrie Regional Resources Commission that will "encourage quality growth and development while preserving the natural resources of the Uwharrie region of North Carolina."

The Uwharrie Commission is an advisory group with a broad scope and no regulatory authority. It is very different from the Yadkin River Trust bill that was defeated last year.

Efforts during the legislative session to resurrect the Yadkin River Trust legislation were unsuccessful.

Thank you to all those who supported us during this legislative session as we worked to prevent a government takeover of our property.

Video: The Facts About Alcoa

2010-07-09T10:36:00.005-04:00

There's been a lot of discussion about Alcoa. We want to make sure you hear the truth.

Please take 3 minutes to watch this short video to hear the facts about Alcoa. From Stanly County residents. From elected officials. And from the people who live along the lakes of the Yadkin River.

Click here to watch the video.

Brockovich Comes to North Carolina

2010-06-30T09:43:00.000-04:00

Erin Brockovich traveled to North Carolina yesterday to discuss her life as an environmental activist and weigh in on the Yadkin River Trust. Alcoa is proud of its environmental stewardship of the Yadkin River and is continuing to invest in improvements that will improve water quality.

You can click here to read an interesting story about Brockovich’s visit in the Carolina Journal.

Half Truths... The Most Cowardly of Lies

2010-04-16T13:49:00.001-04:00

Mark Twain said it best: A half truth is the most cowardly of lies.

The recent ads being put out from the NC Water Rights Committee are filled with half truths about Alcoa’s environmental track record.

Here is what the ads don’t tell you:

Alcoa began testing Badin Lake for PCBs in late 1996. This data was shared with the NC Department of Health and NC Department of Environment and Natural Resources in early 1997. The NC Department of Health’s prompt conclusion: the PCBs should not pose a significant health risk.

The ads also don’t tell you that the state has found similar levels of PCBs in fish in portions of the Yadkin River near Mocksville, well upstream of the Badin Works plant, or that some of the highest levels of PCBs in fish in Badin Lake were also upstream of Badin Works.

Don't be distracted by the scare tactics of the NC Water Rights Committee. This is simply an attempt by them to mislead people about their support for a costly government takeover of Alcoa's property.

Tax Day: A Good Time To Consider How Our Tax Dollars Are Spent

2010-04-15T09:42:00.001-04:00

When you file your tax return today, it’s a good time to stop and think about how your tax money is being spent.

In Stanly County, the Commissioners have already spent more than $3 million of tax revenue – without any public debate – on lawyers, lobbyists and other expenses related to its push for a government takeover of Alcoa’s property. In the first two months of 2010, the Commissioners have spent more than $300,000. They are on pace to spend an additional $2 million this year alone.

Meanwhile, Gov. Perdue supports a costly government takeover despite the financial crisis facing our state. With lagging revenue projections, North Carolina predicts a budget shortfall of almost $800 million this year. But that hasn’t stopped Gov. Perdue from continuing to push for a government takeover that could cost taxpayers up to a half billion dollars.

The Wall Street Journal reported in January that Americans have grown increasingly opposed to government intervention in private businesses.

Learn more at www.HowManyMillion.com.

Moving Forward with Badin Works Redevelopment

2010-04-08T15:17:00.000-04:00

Alcoa announced this week that it will permanently close two idle smelting plants, including the Badin Works plant in Badin, North Carolina. This is a positive step that will allow Alcoa to continue moving forward with its ongoing plans to redevelop the Badin Works site to attract new industry and new jobs to Badin and Stanly County.

The decision to officially close the plant helps pave the way for redeveloping the site by removing the need to preserve equipment and permits for a potential restart of the plant. Alcoa officials are currently evaluating future plans for the site, including the potential demolition of buildings.

Alcoa has a successful track record of redeveloping former smelter sites to attract new investment and new jobs that benefit the local community. For example, a former smelter in Oregon is now a thriving industrial park and the redevelopment of a smelter in Washington state is creating up to 1,900 construction-related jobs.

Alcoa will continue to work closely with state and federal officials to determine the appropriate steps to manage environmental issues associated with the site.

Built in 1917, Badin Works was one of the oldest and smallest aluminum smelters in the nation. Changing economic conditions led Alcoa to reduce the plant’s production in 2002 and formally curtail operations in 2007.

This announcement does not impact Alcoa’s hydroelectric operations or the relicensing of the Yadkin Project. The company continues to employ more than 30 people in Stanly County and remains the county’s largest taxpayer.

How Many Million? Alcoa and the Stanly County Commissioners

2010-03-15T09:29:00.001-04:00

While many people know that the Stanly County Commissioners are pursuing a government takeover of Alcoa’s Yadkin Project, they may not realize the excessive amount of tax dollars the county has spent on lawyers, lobbyists, PR firms and other consultants associated with the attempted takeover of our business.

Stanly County’s financial records indicate that it has already spent more than $3.1 million tax dollars on this effort, including $1.6 million last year alone. Stanly County has spent $349,360 in the first two months of 2010 and is on pace to spend more than $2 million this year.

At the same time, the county has eliminated 12 jobs and cut spending on education, seniors and other vital services due to the tight economy. Imagine what Stanly County schools could do with an extra $3 million …

As the largest taxpayer in Stanly County, Alcoa is concerned that a handful of people are driving the county’s spending. Through this campaign, we want to start a dialogue about how the county commissioners are spending our tax money and how it should be spending that tax money. Does the county’s spending match the priorities of its residents? That’s a question we’ll be asking in newspaper ads, billboards and other communications, beginning this week.

When the county manager submitted the 2009-2010 budget, he said “We must invest in effective economic development strategies to grow our tax base…” But the county budget doesn’t reflect those priorities. It includes $532,000 for economic development efforts – less than 1/3 what the county spent last year trying to take Alcoa’s property.

To learn more about this campaign, visit www.HowManyMillion.com.

Another Misleading Attack from the Yadkin Riverkeeper...

2010-02-22T16:01:00.004-05:00

The Yadkin Riverkeeper is at it again. He attacked Larry Jones of the High Rock Lake Association last week, accusing him of a having a conflict of interest that compromised his advocacy for High Rock Lake during the relicensing process.

Anyone who was involved in the relicensing negotiations knows just how absurd that claim is. Larry Jones was, and continues to be, one of the strongest advocates that High Rock Lake has ever known.

The Yadkin Riverkeeper’s allegations stem from a property agreement that APGI made with Larry Jones in October 2009. Larry received ownership of the driveway to his home and property in exchange for his agreement to relinquish all pasture, cultivation and water withdrawal rights.

Marshall Olson, environmental and natural resources manager at APGI, said the agreement offers important environmental benefits for High Rock Lake because it will reduce the potential for fertilizer in the lake and reduce erosion along the shoreline.

The High Rock Lake Association released a statement this weekend condemning the Yadkin Riverkeeper’s attacks and reiterating its support for the Relicensing Settlement Agreement.

“No one has or is fighting harder for the users of High Rock Lake and the rest of the Yadkin Project than Larry Jones and the Association,” the statement says. “When the license is issued by FERC, we will have a binding agreement to operate the Yadkin Project for the benefit of all stakeholders. Jones, under the direction of the Association, was a primary negotiator to get these desired changes.”

“There is nothing wrong with the actions of Larry Jones, either in his capacity as an officer of the HRLA or in the manner he has conducted his personal affairs.”

Marshall Olson shared a similar perspective:

“Alcoa’s dealings with Larry Jones and his property have been straightforward and unrelated to his role with the High Rock Lake Association. This transaction took place more than 2½ years after the High Rock Lake Association signed the Relicensing Settlement Agreement in support of a new license for Alcoa, and with the full knowledge and support of the High Rock Lake Association’s Board of Directors,” Olson said. “Routinely, Alcoa must address issues involving historical easements and property line issues, such as those with Larry Jones, and this transaction is no different from the others.”

This latest attack from the Yadkin Riverkeeper has absolutely no merit. It is simply another attempt to drum up support for a costly government takeover of the Yadkin Project.

Alcoa responds to FERC ruling

2010-01-26T13:14:00.004-05:00

On Thursday, the Federal Energy Regulatory Commission (FERC) denied a request by Alcoa Power Generating Inc. (APGI) to reconsider its October 15, 2009 order finding that the State of North Carolina acted within the required timeframe when it issued a water quality certificate for the Yadkin Project. The company had argued that the State failed to issue an effective certificate within one year.

APGI remains committed to improving water quality in the Yadkin River and stands firmly behind the environmental protections in the Relicensing Settlement Agreement.

While the company is disappointed in FERC’s decision to deny APGI’s rehearing request, it remains confident that it will receive a new license for the Yadkin Project as FERC staff has previously recommended.

Alcoa requests permit modification

2009-11-19T14:46:00.002-05:00

To ensure that it continues to comply with environmental regulations at the Badin Works aluminum smelter, Alcoa has submitted a request to the N.C. Department of Environment & Natural Resources to modify its National Pollutant Discharge Elimination System (NPDES) permit.

Alcoa is requesting to redirect stormwater from a small ½ acre site within the Badin Works property to another stormwater discharge outfall. With this modification, Alcoa is confident that fluoride levels in stormwater entering Badin Lake will remain below the allowable limits. No new or increased flows or fluoride levels in the stormwater discharge from Badin Works are being requested.

Fluoride is a naturally occurring chemical that is used in the aluminum manufacturing process and waste containing fluoride was previously stored on the Badin Works property. As part of the remediation process at Badin Works, Alcoa removed this waste and the underlying soil from the ½ acre site in 1994 and disposed of it an appropriate industrial landfill.

Stormwater runoff from this ½ acre site contains low levels of fluoride, but does not pose any risk to people who use Badin Lake (swimmers or fisherman) or to the wildlife or aquatic life in Badin Lake. Monitoring shows that fluoride levels are typically within the limits set by US Environmental Protection Agency for drinking water.

As part of its environmental responsibility, Alcoa is continually looking at ways to reduce fluoride levels. During the past two years, Alcoa has spent more than $180,000 to identify and reduce the amount of fluoride in stormwater. These efforts have included a variety of steps, including but not limited to:

• Simulating rain events and collecting soil, sediment and water samples to better determine the source of fluoride.

• Minimizing contact between stormwater and surface soils by installing new liners in drainage channels, roadways and parking areas, then covering those areas with stone.

Background on Fluoride

Fluorides are naturally occurring compounds that are often added to drinking water supplies and a variety of dental products, including toothpaste and mouth rinses, to help prevent dental cavities. Small amounts of fluoride are beneficial. Over time, ingestion of very high levels of fluoride in drinking water may cause brittle bones in children and adults and mottled teeth in children.

For the prevention of dental decay, the Public Health Service has recommended since 1962 that public water supplies contain between 0.7 and 1.2 milligrams of fluoride per liter of drinking water. The Environmental Protection Agency has set a maximum amount of fluoride allowable in drinking water of 4.0 milligrams per liter of water.

The NPDES permit places limits on fluoride levels coming from a portion of the Badin Works plant to 1.8 milligrams per liter, even though these discharges are located far from drinking water withdrawals.

Alcoa asks FERC to reconsider ruling on state water quality permit

2009-11-16T10:12:00.004-05:00

Alcoa Power Generating Inc. (APGI) has asked the Federal Energy Regulatory Commission (FERC) to reconsider its October 15^th order finding that the State of North Carolina acted within the required timeframe when it issued a water quality certificate for the Yadkin Project.

In a legal filing on November 13, APGI argues that FERC erred by determining that a state can withhold the effectiveness of a water quality certificate beyond the statutory one-year deadline. In this case, the water quality certificate issued for the Yadkin Project on May 7, 2009 was not effective within the one-year timeframe specified by law, as expressly stated in the certificate, and required additional action before becoming effective.

APGI emphasized that it is not challenging or objecting to the conditions in the water quality certificate that closely mirror the environmental provisions in the Relicensing Settlement Agreement.

“We remain committed to improving water quality in the Yadkin River and stand behind the significant environmental protections that are included in the Relicensing Settlement Agreement,” said Gene Ellis. “We have asked FERC to reconsider its October 15^th order because it was unsupported by legal conclusions and inconsistent with the Clean Water Act and FERC’s own regulations.”

The Yadkin Riverkeeper gets it wrong... again

2009-11-06T13:15:00.001-05:00

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 opposite… again.

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

2009-11-06T12:17:00.006-05:00

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.

Alcoa responds to FERC ruling

2009-10-15T11:43:00.002-04:00

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.

Responding to misinformation from the Yadkin Riverkeeper

2009-10-09T21:23:00.004-04:00

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.

Why Perdue's proposed Yadkin River takeover is so flawed

2009-10-08T12:13:00.004-04:00

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.