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Alcoa fights back against N.C.'s push to control Yadkin dams

By James Romoser | Journal Reporter

Published: October 6, 2009

RALEIGH

In a new regulatory filing on Monday, Alcoa Inc. fought back against an effort by the state of North Carolina to take control of Alcoa's hydroelectric dams on the Yadkin River.

Alcoa described the case put forward by Gov. Bev Perdue's administration as "an amalgamation of factual misstatements and legal arguments that are inventive in the extreme." That language was part of documents the company filed with the Federal Energy Regulatory Commission, which will decide whether to renew the longterm license Alcoa needs to continue operating the dams.

Alcoa's filing was a response to documents submitted by Perdue's administration last month. The administration argued that Alcoa should not get a new license because the company's profit motive conflicts with the state's ability to manage its water resources.

The administration wants permission for the state to take control of the four dams and reservoirs located along a 38-mile stretch of the Yadkin. The state would compensate Alcoa for the property.

Alcoa argues that the state's proposal is an unfair and unprecedented encroachment on a private company.

The federal regulatory agency has never before decided not to renew a company's license to operate hydroelectric facilities.

Alcoa, which manufactures aluminum, was given the license in 1958, and at that time, it used the dams to power an aluminum smelter in Stanly County that provided hundreds of jobs.

But that plant is now closed, and the company sells the electricity it generates. The state argues that, now that the company no longer provides many local jobs, its license should not be renewed.