Alcoa Energy Supply

On May 1, 2017, Chelan County PUD commissioners agreed to a requested change in the power contract with Alcoa Corp. that the company says will preserve the opportunity to further consider restarting its aluminum smelter located south of Wenatchee. Alcoa’s $7.3 million partial payment, which includes a charge for being able to “buy time,” was recommended by staff and provides that the one-year deferral on the balance will keep the financial impact neutral for PUD customer owners.

Board members took the action after reviewing staff analysis, discussing comments gathered from the community and Alcoa workers, and confirming with Alcoa and union representatives that workers will not lose any benefits if part of the $67 million payment due in June is deferred.  

Kelley Woodard, Wenatchee Aluminum Trades Council president, thanked PUD commissioners for the District’s support over the years of continued plant operations. “My goal is to get the plant restarted and get my members back to work. I think this gives us the best chance to make that happen … so I’m in favor.”

After approving the amendment, Commissioner Ann Congdon said the union’s support for the approach of paying a portion now and deferring the balance of the payment a year was key. “I had reservations, but based on what Kelley said, and that he supports it, because of that I did vote ‘yes.’ “

Michael Padgett, Alcoa senior vice president for energy, updated PUD board members on the company’s positive earnings for the first quarter of 2017, that the worldwide surplus of aluminum is smaller and that the Trump administration launched a recent inquiry into unfair trade practices in the global aluminum market.  

A 1953 view of Rock Island Dam and Alcoa Wenatchee Works

A 1953 view of Rock Island Dam and Alcoa Wenatchee Works


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Alcoa News

Chelan PUD board takes steps to reassign Alcoa power contract

by Kimberlee Craig | Oct 20, 2016

Chelan County PUD commissioners Thursday agreed to move ahead with signing the agreements needed to reassign the current power contracts with Alcoa Inc. for its Wenatchee smelter to a new entity before the corporation splits in two on Nov. 1.

The vote came after Chief Financial/Risk Officer Kelly Boyd provided a brief update on work done since Monday when commissioners received a full briefing on potential assignment terms and other conditions involved in moving the power contracts from Alcoa Inc. to the new Alcoa Corporation. 

General Manager Steve Wright had said Monday that while the Alcoa split results in a smaller, less credit-worthy customer, the additional credit assurances provided in the new agreements leaves the District’s customer-owners neutral to positive compared against current conditions.

Kelly Woodard, Wenatchee Aluminum Trades Council president, and Wenatchee attorney Jim Brown spoke at the special board meeting. They expressed concerns about the creditworthiness of the new Alcoa Corporation and thanked PUD staff and commissioners for keeping the interests of Wenatchee Works employees and PUD customers a priority.  

Alcoa announced the division into two stand-alone companies a year ago, but just recently set the Nov. 1 effective date. The new Alcoa Corporation will include the alumina and smelter “upstream” operations and Arconic Inc. will hold engineering and other “downstream” products.

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The next regular Chelan PUD commission meeting starts at 10 a.m. on Monday, Nov. 7, 2016, in the boardroom at 327 N. Wenatchee Ave.

Chelan PUD records most commission meetings, and a link to the audio is available on the PUD’s home page at www.chelanpud.org. Find us on Facebook.com/ChelanPUD and follow us on Twitter @ChelanPUD.