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Alcoa wants to renew license to operate on Yadkin

Water-quality agency for state will have public hearing Jan. 15 in Albemarle

By Michael Hewlett | Journal Reporter

Published: December 27, 2008

Updated: 12/26/2008 12:00 am

A public hearing next month could help determine whether Alcoa Power Generating Inc. gets the state water-quality certificate it needs before the company can renew its 50-year federal license to operate four reservoirs along the Yadkin River.

Alcoa, the world's leading producer of aluminum, draws water from High Rock Lake and three other reservoirs to make hydroelectric power under a license from the Federal Energy Regulatory Commission. It once used the power to operate a smelting plant in Badin Lake. The plant has since been closed, and the company now sells the power on the open market, generating about $44 million a year in revenue.

The N.C. Division of Water Quality will have a public hearing at 7 p.m. Jan. 15 at the Stanly County Commissioners' meeting room at 1000 North St. in Albemarle. State officials are expected to make a decision by May 8.

Alcoa's pursuit of a new federal license has resulted in a heated debate over whether a public resource such as the Yadkin River should be controlled by a private company that uses it to make a profit.

Earlier this year, a draft of the 2008-09 state budget contained a provision that would have required a formal study of how North Carolina could take control of the hydroelectric plants and put them to public use. Alcoa strongly opposed the provision, calling it an unfair proposal to seize the company's private property. The provision, however, did not make it into the final version of the budget.

Instead, the state will do a more general study of water issues along the Yadkin River. The study will look at the potential impact of Alcoa's effort to renew its license for another 50 years.

In addition, Davidson County officials and property owners along High Rock Lake have long had problems with how Alcoa manages water levels at High Rock Lake. They oppose the new license, complaining about fluctuating water levels on High Rock Lake that result in beached boats, dead fish and poor water quality.

In Stanly County, where the public hearing will be, officials have accused Alcoa of not doing enough to clean up pollution left by the now-closed smelting plant at Badin Lake. Alcoa officials have said that Alcoa has spent $8 million on cleaning up the pollution and has worked closely with the state's environmental agency.

Gov. Mike Easley asked the federal commission to delay its decision for a year. The commission never took any action, but a snafu resulted in a delay anyway.

The N.C. Division of Water Quality had issued a water-quality certification in November 2007 but had to revoke it this past April because a public notice was never published in The Stanly News & Press. Alcoa ended up resubmitting an application so that the state could have more time to review new information.

Gene Ellis, a spokesman for Alcoa, said that if the state issues a water-quality certificate, the Federal Energy Regulatory Commission could make a decision three to five months later.