Your PUD News Release
Alcoa to invest $20 million in PUD power delivery
Chelan County PUD
News Release
1/18/2010
Chelan County PUD commissioners gave their nod Monday to Alcoa’s plan to invest an estimated $20 million in power system upgrades that will make it possible to operate a third pot line reliably at Alcoa’s Wenatchee Works in coming years.
Commissioners approved a resolution Monday authorizing PUD General Manager Rich Riazzi to sign agreements with Alcoa that will bring upgrades at the PUD’s McKenzie Substation southeast of Malaga, improve the connection at Alcoa for the PUD’s 230-kv Columbia 2 transmission line from Rocky Reach Dam and purchase for the PUD part of the Valhalla Substation near Alcoa that is owned by Bonneville Power Administration (BPA).
“This is confirmation of Alcoa’s commitment to stay in the valley,” said PUD Commissioner Ann Congdon.
“We appreciate the commitment,” added Commission President Dennis Bolz.
The Interconnection Agreement is a follow-up to a new long-term power sales contract signed by the PUD and Alcoa in July 2008 that provides for Alcoa to receive a 26-percent share of the output from Rock Island and Rocky Reach dams from 2011 through Oct. 31, 2028. Alcoa said at that time that it hoped to be able to add a third pot line to the Wenatchee Works, and PUD commissioners voiced their desire to have the community continue to benefit from the family-wage jobs provided by the Alcoa smelter. The improvements in this latest agreement will improve reliability of power delivery to the smelter, something Alcoa wanted prior to starting a third pot line in 2011 or 2012, according to Bob Huber, Alcoa NW energy manager, who spoke to PUD commissioners Monday.
Huber said Alcoa knew the upgrades were needed if the plant were to operate reliably into the future and add a third pot line. The intent is to do all the work and get the third line running, he said.
The PUD will own and operate all the facilities, and Alcoa will be responsible for all costs.
In other business commissioners:
- Heard a progress report from PUD staff on the first week of the state legislative session. The PUD has several items of interest, including a proposal to expand the state recreational use statute to increase liability protection for the PUD from kayaking activity in the Chelan River.
- Recessed the afternoon meeting to reconvene at 5:30 p.m. at Casa Tapatia in East Wenatchee for a quarterly meeting of Mid-Columbia PUD commissioners and managers.
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The next regular commission meeting is at 1 p.m. on Monday, Jan. 25, 2010, in the PUD boardroom at 327 N. Wenatchee Ave. Commissioners also have a special meeting scheduled at 9 a.m. Jan. 26 at the Confluence Technology Center for a strategic planning retreat.
Most PUD commission meetings are recorded, and a link to the audio is available on the PUD’s home page at www.chelanpud.org.
Steve Lachowicz
Communications director
509-661-4639, direct line
509-679-0148, cell
steve.lachowicz@chelanpud.org