By Jim Lisk, Editor
September 23, 2009

Tuesday, September 22, 2009 — On Sept. 18, Gov. Bev Perdue filed evidence with the Federal Energy Regulatory Commission (FERC) in opposition to a 50-year licensing renewal request by Alcoa Power Generating, Inc. (“Alcoa”) for the Yadkin Hydroelectric Project.

Her filing is the latest action she has taken to show concern for the health, safety and welfare of the general public as Alcoa seeks to regain water rights and hydroelectric power generated by the Project, which includes dams and powerhouses along a 38-mile stretch of the Yadkin River at High Rock, Tuckertown, Narrows and Falls Reservoirs in Davidson, Rowan, Montgomery and Stanly counties.

At Monday night’s meeting of the county commissioners, the commissioners praised Perdue’s action.

“Once again, the Stanly County Board of Commissioners is deeply indebted to Gov. Bev Perdue as she continues to fight the good fight for our water rights,” said Commissioner Lindsey Dunevant.

“The governor has been able to see the truth of this issue amid all the spin provided by Alcoa and knows she is pursuing the best option for the state in the long run for its economic and environmental future.”

Gov. Perdue’s latest filing at FERC includes a business plan developed by the N.C. Department of Commerce entitled “THE STATE OF NORTH CAROLINA’S 21ST CENTURY PLAN FOR THE USE OF THE YADKIN RIVER RESOURCES.”

This study concludes that the state’s recapture of its water rights for the Project is economically feasible and financially beneficial to the State of North Carolina. According to the business plan, the State will manage the Yadkin River resources for the public good by:

  • Providing sound stewardship of this crucial and valuable public resource and fiscally prudent operation and maintenance of both the water resources of the Yadkin River and the hydroelectric plant facilities.
  • Allocating a portion of the Project revenues for timely capital improvements to the Project that will enhance the quality of the Yadkin River waters and production from the outmoded plant facilities, and assure access of citizens to potable water, even during severe droughts.
  • Dedicating a portion of the annual revenues to funding long-term, ongoing programs that enhance the infrastructure of the region and the State, including enhancement and sustained funding of our community college system.
  • Dedicating a portion of the annual revenues to fund local improvements near the Project, whether environmental, public health, or recreational, with input from local communities and agencies.
  • Providing funds for long-term, comprehensive planning for the Yadkin River Basin, to accommodate changing public beneficial needs, and that will provide the State with the flexibility to act promptly to meet public needs relating to water supply and the management of the Yadkin River.
  • Providing a model for operating the Yadkin Hydroelectric Project efficiently and in a business-like fashion with value flowing back into publicly valuable infrastructure for the State.

A long-time critic of Alcoa, Gov. Perdue first wrote to FERC on June 3, 2008 when as lieutenant governor, she requested that Alcoa not be relicensed, stating “the balance of private versus public benefit associated with operation of the dams in those communities is no significantly different than it was when the dams were first licensed” in 1958.

In March of this year, she announced her intentions to seek intervention at FERC while noting that Alcoa forced hundreds of North Carolinians out of work when it closed its smelter at Badin in 2002, despite saying in its 1958 licensing it would keep those jobs as part of its oversight of the Project. Eight members of the N.C. congressional delegation followed the governor’s lead and wrote to FERC requesting that she be allowed sufficient time to present new evidence.

On May 20, Gov. Perdue filed a “friend of the court” brief requesting that Administrative Law Judge Joe Webster grant an injunction barring the issuance of a 401 Water Quality Certification to Alcoa for the Project, which Alcoa must obtain to receive a license from FERC. Speaking on behave of the governor, Special Deputy Attorney General Faison Hicks said Stanly County’s petition for the injunction “has raised questions going directly to the welfare of our environment, the life of the Yadkin River and, ultimately, the health and safety of the people of this state.” Judge Webster agreed and ruled May 26 to deny granting Alcoa the permit until a full appeal is heard from both sides of the matter.

The Stanly County Board of Commissioners have been strong opponents of Alcoa, continually citing Alcoa’s poor environmental history with its operation on the Yadkin River, the abandonment of operations by Alcoa at the Badin Works with its related loss of 1,000 jobs and the right of the people to control the water that belongs to them. Other official groups have endorsed this position, including most recently the State Executive Committee of the North Carolina Democratic Party, which passed a resolution in support of the state recapturing the water rights for the Project on Aug. 29.

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