By Bruce Henderson
bhenderson@charlotteobserver.com
Tuesday, July 07, 2009

Alcoa protests state Yadkin permit

Alcoa has appealed a state water-quality certification the aluminum maker needed to renew its federal hydroelectric license on the Yadkin River.

Alcoa is locked in a struggle over the license with Stanly County, where a now-closed smelter is located, and Gov. Bev Perdue. The county and Perdue want federal authorities to take away Alcoa's Yadkin license and put it in the hands of a state trust.

State certification that Alcoa's hydro operations won't harm Yadkin water quality, granted in May, cleared federal regulators to renew the license for up to 50 more years.

But after challenges by Stanly County and the Yadkin Riverkeeper, a state judge placed the permit on hold. Perdue has asked the Federal Energy Regulatory Commission to delay action on issuing the hydro license.

In papers filed Monday with the state Office of Administrative Hearings, Alcoa protested the $240 million bond the state required in granting the water permit, calling it “grossly excessive” and unwarranted.

Alcoa also challenged other conditions in the permit and said state officials acted too late in granting it.

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