On Oct. 20, 2016, PUD commissioners 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.
On Oct. 17, 2016, Chelan PUD commissioners were briefed on potential assignment terms and other conditions necessary for the District to consent to reassigning the current power contracts with Alcoa Inc. for its Wenatchee smelter to a new entity before the corporation splits in two on Nov. 1.
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They also set a special meeting for Oct. 20 to discuss the assignment of the PUD-Alcoa contracts to the new entity, Alcoa Corp.
A framework for long-term energy supply to the Alcoa Wenatchee Works was proposed to PUD commissioners Oct. 15, 2007, and proposed terms were approved Dec. 3, 2007. The proposal, developed by PUD staff and endorsed by Alcoa officials, is intended to keep at least three pot lines operating at Alcoa until at least 2028.
A final agreement was presented to commissioners June 16 and signed on July 14, 2008.
Public meetings on the Alcoa proposal
Public meetings provide full details of the proposal, offer opportunities to receive comment from the community and for staff and commissioners to answer questions. Here are the presentations from meetings:
- July 14, 2008 board meeting
- June 16, 2008 board meeting
- Dec. 3, 2007 board meeting
- Nov. 19, 2007 board meeting
- Nov. 5, 2007 board meeting
- Oct. 23, 2007 board meeting
- Oct. 22, 2007 board meeting
- Oct. 15, 2007 board meeting
News about Alcoa proposal
- Alcoa power sales contract signed, July 14, 2008
- Commissioners to consider Alcoa power agreement, July 7, 2008
- Alcoa power sales contract introduced, June 16, 2008
- Alcoa contract terms approved, Dec. 3, 2007
- Discussion continues on Alcoa contract terms, Nov. 19, 2007
- Comments on proposed Alcoa contract, Nov. 5, 2007
- Alcoa gives views on proposed power sales terms, Oct. 23, 2007
- Alcoa contract discussions continue, Oct. 22, 2007
- Framework proposed for extending long-term Alcoa energy supply, Oct. 15, 2007
On Nov. 16, 2015, PUD commissioners were briefed on the news that Alcoa would idle the Wenatchee Works plant, and were reminded of the contract provisions the PUD has with Alcoa. In 2007, when the current contract was crafted, several provisions were included as incentives for Alcoa to remain in Wenatchee and keep operating, with increased financial benefits for more production and full-employment for plant workers. Keeping well-paid industrial jobs in the community was a high priority for the PUD commission at the time and remains paramount as news of the shutdown became known.
Archive of 2007/2008 information