High Point Enterprise: McCrory misfires in Alcoa case

The High Point Enterprise published a column today from Opinion Editor Vince Wheeler that criticizes Gov. Pat McCrory for supporting “a governmental takeover of a legitimate business.”

Wheeler expresses his disappointment that McCrory, who typically has a pro-business philosophy, would support the creation of a governmental or quasi-governmental agency to operate the dams.

Click here to read the entire column.

High Point Enterprise criticizes N.C. Senate vote, says bill amounts to "forced takeover of private property by state government"

The High Point Enterprise published an editorial today criticizing the N.C. Senate’s vote last week to approve a bill that would pave the way for a government takeover of Alcoa’s privately-owned hydro business along the Yadkin River.  The editorial harshly criticizes the “forced takeover of private property by state government in order to reap financial benefits of that company's business.”

The entire editorial is posted below:

State government takeover of hydroelectric power generating property along the Yadkin River moved a step closer to a disappointing reality last week as the N.C. Senate voted 44-4 to approve a bill creating the Yadkin River Trust.

If approved by the House and signed into law, that innocently enough sounding entity would move to take over Yadkin River dams and lakes owned by Alcoa Power Generating Inc. Alcoa, however, prefers to continue owning and operating the plants to produce electricity as it has for more than 70 years.

Unfortunately, all of our area state senators supported this bill, which amounts to a forced takeover of private property by state government in order to reap financial benefits of that company's business.  We've heard it said many times that the citizens of the state own their water resources, such as the Yadkin River, and this is true.  But this argument over the federal relicensing of Alcoa Power Generating has become a move by state government to take over that business and its assets to grab the tens of millions of dollars worth of electricity that Alcoa generates each year.

Certainly, there are issues with Alcoa that still need to be addressed during the permitting process, particularly cleanup of the company's abandoned aluminum plant at Badin Lake in Stanley County. There also are unresolved issues related to High Rock Lake in Davidson County, including agreements on lake levels throughout the year. And then there's the question of how much Alcoa should pay federal, state and local governments under terms of a new permit, if granted.

But none of these issues rise to levels that justify a state government takeover/buyout of private property and a private business - especially one that is producing huge amounts of clean energy - just because the state sees potential profit there. 

The Red Herring of the Day: Alcoa and the Chinese

“Something that distracts attention from the real issue.” That is the Webster's definition of a “red herring” and it is a favorite tactic of the folks who support a state takeover of Alcoa's privately-owned hydroelectric business along the Yadkin River.

Their latest ploy – suggesting that the State of North Carolina needs to take control of the Yadkin Hydroelectric Project before Alcoa sells it to the Chinese. It's such an unfounded, unsubstantiated rumor that it’s hardly worth addressing. But some folks are apparently giving thought to the question, and it is diverting attention from the issues that people really care about - like the fact that a state takeover will cost North Carolina taxpayers more than $500 million.

Or the fact that people across North Carolina are criticizing the idea of a State takeover. The Salisbury Post  (April 21) said a takeover will “make other companies think twice about investing in North Carolina,” and the High Point Enterprise (April 5) said “in no way is it proper for the state and federal government to essentially seize the property of this taxpaying business - or any private property.”

But back to the issue of the Chinese.

Is there any evidence to suggest that Alcoa will be bought by the Chinese ... or anyone else for that matter? No. Alcoa is a Fortune 100 company and is the largest aluminum maker in the world. And what if another company bought Alcoa? Could they prevent the State of North Carolina from withdrawing water from the Yadkin River? No, North Carolina decides who gets to withdraw water under its regulations.

There is absolutely nothing to this rumor. At best it's a simple scare tactic aimed at those who don't understand the issues. More likely, it’s a desperate diversion from the takeover crowd whose arguments are slipping in the halls of government in Raleigh because the takeover cost numbers they have bandied about simply don’t add up.