Aluminum firm, energy company ink deal

The Daily Inter Lake

Columbia Falls Aluminum Co. will receive as much as 140 megawatts of electricity for the next five years, according to a contract finalized Wednesday.

Bonneville Power Administration and Flathead Electric Cooperative also signed the contract.

CFAC's current contract with BPA expires Sept. 30. Contracts last five years, and negotiations for this one began at least two years ago.

"We at CFAC are extremely pleased to reach this successful conclusion to this long and arduous process," said Haley Beaudry, CFAC's manager of external affairs. "The contract is now signed by all parties. All of the employees and their families at CFAC are breathing a sigh of relief."

On June 1, BPA released a record of decision outlining the specifics of the deal. Under the new contract, effective Oct. 1, BPA will provide its direct service industry customers financial payment in lieu of physical power. The monetary benefits will be capped at $59 million a year, which will allow the five affected aluminum companies to receive as much as 560 average megawatts annually.

Now that CFAC isn't receiving power directly from BPA, Flathead Electric will be involved with receiving, authorizing and paying those financial benefits, Beaudry said.

CFAC, which employs about 150 people, is operating on 70 megawatts, which, with current market rates, is enough to run one of its five potlines. According to Beaudry, the company has no plans to expand operations at this time.