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

Location set for Alcoa community meeting on April 25

by Kimberlee Craig | Apr 19, 2017

Community members and Chelan PUD customer-owners are invited to a meeting of the Alcoa Working Group on Tuesday, April 25, at 6:30 p.m. at Confluence Technology Center in north Wenatchee to listen and comment on a proposed contract amendment negotiated with Alcoa Corp. that would give Alcoa until June 2018 to decide whether to restart the Wenatchee Works aluminum smelter in return for a payment that keeps PUD customer-owners financially neutral.

The technology center is at 285 Technology Center Way, in Wenatchee. Members of the Alcoa Working group include PUD, Port and Chelan County commissioners, mayors, a representative of the Alcoa union and community leaders.

The proposal calls for Alcoa to pay part now of a contract payment due in June if the plant remains curtailed. The balance would be due in June 2018 if the plant doesn’t restart.

PUD commissioners will be asked to act on the proposal at their May 1 meeting.

Information on the proposed Alcoa contract amendment is at chelanpud.org under “Alcoa Energy Supply.”  Comments can be made online, at Tuesday’s meeting and/or at the May 1 PUD commission meeting.