Your PUD
News Release
Commissioners to consider Alcoa power agreement
Chelan County PUD
News Release
7/7/2008
Six months after Chelan County PUD commissioners approved terms for a new Alcoa power sales contract, they will consider the final agreement on July 14 in the PUD boardroom.
June 16 commissioners reviewed the proposed contract that would start in 2011 and provide power for Alcoa’s Wenatchee aluminum smelter through October 2028. The law requires that a contract proposal be tabled for at least 10 days before final action.
The contract would provide Alcoa with electricity equal to 26 percent of the output of Rocky Reach and Rock Island dams, in exchange for the company paying 26 percent of the cost of producing and delivering the power, plus other costs.
With an average water supply, 26 percent of the dams’ output would supply approximately enough energy to operate three pot lines. The plant is now running two lines.
If approved, Alcoa will also pay an estimated $22.9 million of an $89 million capacity reservation charge within 30 days of signing, with the balance deferred as long as the plant continues to run three pot lines.
The agreement is based on terms approved by PUD commissioners in December 2007, with some changes made based on commission and community feedback.
An outline of major points of the proposed power sales contract and two related agreements are posted on the PUD Web site, along with background information.
Customer-owners are encouraged to share their thoughts on the proposed contract by e-mail, board2@chelanpud.org, or by phone at (509) 661-4212.
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Christy Shearer
Communications Audio-visual Specialist
Chelan County PUD
509.661.4258 office
509.421.4258 cell
509.661.8133 fax
christy.shearer@chelanpud.org
www.chelanpud.org