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BPA, Alcoa Sign Power Contract by Staff BPA Journal, January 2010

BPA and Alcoa, a direct-service aluminum industry, concluded a power sale contract in December with delivery of power beginning immediately. The contract provides a stable power supply to Alcoa's Intalco smelter near Ferndale, Wash., giving the smelter a reasonable chance to continue operations.

The power sale provides benefits to the region that equal or exceed costs during the first phase of the contract, consistent with a recent U.S. Ninth Circuit Court of Appeals ruling.

Washington Governor Christine Gregoire, who attended a Dec. 21 signing ceremony, praised the effort both parties put into the contract. In an official statement, she said, "I congratulate the Bonneville Power Administration and Alcoa for reaching this important agreement to keep the Intalco aluminum smelter operating. This agreement supports more than 500 living-wage jobs in the Ferndale area, jobs that are essential to our ability to make it through and recover from this recession.

The first phase of the contract runs 17 months, until May 26, 2011. The amount of power provided will increase from 285 average megawatts to 320 average megawatts in March 2010, enough power for Alcoa to operate two potlines. All power will be priced at BPA's industrial power rate, which is $34.60 per megawatt hour. A second, five-year phase of the contract is contingent on several factors, including resolution by the court concerning the level of benefits BPA must receive from providing service to Alcoa.

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Service to Alcoa - Regionwide

BPA signed a power sale contract with Alcoa on Dec. 21 (see story in news section). The power sale agreement and record of decision are posted on BPA's external Web at www.bpa.gov/power/pl/regionaldialogue/implementation/documents/#SDSI.