FERC Sides With State Rather Than Alcoa
In a big blow to one of Alcoa's main points of contention regarding its relicensing application for the Yadkin Hydroelectric Project, the Federal Energy Regulatory Commission announced April 17 that it would accept a motion by N.C. Gov. Bev Perdue to intervene in the application. The state filed its motion on April 1, Alcoa responded two weeks later, and the FERC made its final decision shortly thereafter.
This means to the chagrin of Alcoa officials, they now must defend against the State of North Carolina their employment and environmental record on the Project since their previous licensing 50 years ago. The move "gives new hope to Alcoa critics who say the multinational corporation no longer deserves to control a river," as noted by Bruce Henderson in The Charlotte Observer.
(http://www.charlotteobserver.com/158/story/671372.html)
The governor specifically has found fault with Alcoa's promises to be a good steward for the Project, which encompasses four hydroelectric powerhouses, dams and reservoirs along a 38-mile stretch of the Yadkin River in Stanly, Davidson, Montgomery and Rowan counties, in light of it closing a smelter that employed 1,000 people. The original license included that operation as a primary reason why Alcoa argued it should receive a monopoly over control of water and the hydroelectricity it generates in the Project.
Alcoa has argued that the state was too late in getting involved in the licensing and has no business being involved in its attempt to continue its monopoly on water rights that generate it tens of millions in profits annually without being subject to state regulation nor responsive to environmental contamination charges. But, as noted in an editorial, North Carolina does possess "the right to formally ask the Federal Energy Regulatory Commission not to renew Alcoa's federal license to operate the power plants."
(http://www.charlotteobserver.com/opinion/story/671074.html)
Almost predictably and sadly, when Alcoa responded in its motion to the FERC, it included an attack on Gov. Bev Perdue, similar to what the firm has done to state Sen. Fletcher L. Hartsell, Jr. (R-Cabarrus) and the N.C. Department of Health and Human Services. (Sen. Hartsell sponsored the creation of a Yadkin River Trust to handle the Project, which Alcoa dislikes even though it would be fairly compensated, while the DHHS was wrong in Alcoa's opinion for issuing a fish consumption advisory after finding elevated levels of PCBs in fish at Badin Lake, which is part of the Project Alcoa oversees.) Alcoa compared the governor's actions to the seizure of private property by the socialist government of Venezuelan leader Hugo Chavez, and it urged the FERC to ignore her "dramatic language and self-righteous claims" in her motion for intervention. Obviously, and wisely, the FERC did not agree with Alcoa's emotional charges.
The fact that the FERC, which makes the final decision on this item, has allowed the state to intervene definitely indicates Alcoa is facing more questions now on its license application. Given how Alcoa has had plenty of negative comments to make about state government officials lately, it should be quite interesting to see how the multinational defends itself in the future as being an asset to the state. Right now, Alcoa's actions and statements clearly show that it cares much more about itself than anything else involved in this matter.
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