Alcoa responds to FERC ruling

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

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

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

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

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

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

Alcoa responds to State of North Carolina's FERC Filing

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

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

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

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

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

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

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

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Footnotes:

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

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

N.C. Property Rights Coalition joins the fight to stop government takeover of Alcoa’s private hydro business

A prominent property rights organization is joining the fight against a proposed government takeover of the Yadkin Project, a privately-owned hydro business along the Yadkin River.

The N.C. Property Rights Coalition, led by Raleigh lawyer Kieran Shanahan, is taking an increasingly active role in the legislative battle over a proposed government takeover of the Yadkin Project. The organization will be working to educate the people across North Carolina about the state’s unprecedented assault on private property rights. Alcoa is a financial supporter of the coalition.

If successful, the takeover of Alcoa’s privately-owned business could cost North Carolina more than $500 million and set a dangerous precedent that could make it more difficult to attract new business and jobs to our state. Business owners and individuals are asking the same question: “If this can happen to Alcoa, who’s next?”

The N.C. Property Rights Coalition took a stand on this preeminent property rights issue early on, and we welcome their support in our fight to protect our private property. We have been doing business in North Carolina since 1915 and look forward to continuing generating clean, renewable energy along the Yadkin River.

Visit http://ncpropertyrights.com/ to learn more.