Charlotte Observer
charlotteobserver.com
April 1, 2009
N.C. seeks to take over hydro project
The jobs are gone from Alcoa's facility, Gov. Perdue argues, and so the license should not be renewed.
By Bruce Henderson
Gov. Bev Perdue wants a federal agency to hear the state's argument for taking over Alcoa's hydroelectric project on the Yadkin River.
Perdue on Wednesday asked the Federal Energy Regulatory Commission for an emergency hearing on her request to intervene in the renewal of Alcoa's 50-year hydro license.
It's the latest in a cascade of events questioning private rights to public waters just east of Charlotte's growth perimeter. In less than a year, a populist call to protect home waters enlisted the state's highest office.
The governor's dramatic move comes after years of sparring between the aluminum maker and Stanly County, home of a shuttered aluminum smelter that once employed nearly 1,000 workers and was powered by energy made by the Yadkin.
The multinational Alcoa now sells the electricity produced by its four Yadkin dams on the wholesale market. Stanly, and Perdue, say hydro profits should benefit the Yadkin region.
If her motion is granted, it would become the second time North Carolina has intervened in Alcoa's hydro license. Because Alcoa was a major employer, the state supported the company when the original license was issued in 1958.
"Today the smelter and the jobs are gone – and so is the reason for the license," Perdue said in a statement. "I'm asking FERC to enable the recapture of the license so it can be used once again to help create jobs and economic opportunity for the region."
Alcoa called the plan an unprecedented government seizure of private property, comparing it to nationalization of one of its companies by socialist Venezuela.
"There is absolutely no difference between what is happening here and what Hugo Chavez did," said Kevin Lowery, a company spokesman in Pittsburgh.
Alcoa said taxpayers would have to pay it more than $500 million in compensation if the state wins its case. But Lowery said that doesn't signal Alcoa is willing to negotiate a takeover.
"We're going to fight this."
A bipartisan bill co-sponsored by state Senate leaders last week would create a state trust to acquire the hydro project, possibly financing a purchase with bonds repaid by electricity sales. The bill is now before a judiciary committee.
"It's mighty refreshing to have a governor who's willing to step up to the plate for the people," said Tony Dennis, chairman of the Stanly County commissioners. "I wish it had been done a long time ago."
The motion filed Wednesday awaits an uncertain fate before FERC.
Federal law allows FERC to recommend to Congress that the government take over any hydro project, with compensation, when a license expires. But that's never happened.
Perdue's motion was filed after the time period allotted for such requests in the six-year licensing process. And agency staff has said they see "no net benefit" in selling the Yadkin's power to local entities.
FERC didn't return a call Wednesday.
The federal energy agency was expected to renew Alcoa's license for another 50 years, possibly by summer. Only the state's issuance of a key water-quality certificate, expected by May, remains in the years-long process.
But Stanly County believes another issue is far from resolved, county commissioner Dennis said: Who owns the river?
"The jobs are gone, the lease is up," he said, "and we need to get paid for it."
|Home|