BPA offers power deal for CFAC

The Bonneville Power Administration is

proposing an electric-power deal for the Columbia Falls Aluminum

Co. that could provide service to the dormant aluminum plant for up

to 4 1/2 years.

“We’ve been working with CFAC on this

agreement,” said BPA spokesman Mike Hansen. He cautioned, however,

that “At this time, CFAC has not committed to anything, but has

expressed interest in the agreement.

“In particular, CFAC likes the

duration of the proposed agreement,” Hansen added.

The aluminum reduction facility has

been shuttered since October 2009 as a result of the high cost of

power and increased international competition.

The power deal would begin on April 1,

2012, if it gets final approval.

Under the proposal, BPA would provide

140 average megawatts, enough power to allow two of the smelter’s

five potlines to operate. Reopening the aluminum plant would create

a significant boost in employment in the Flathead, with relatively

high-paying jobs.

Hansen explained that under its

current rules of operation, BPA “had to do an equivalent benefits

test to make sure the agreement would be even for Bonneville or

beneficial, and that we would not lose money on the deal that would

affect our other customers.”

According to the BPA analysis,

“results show benefits will exceed the cost of service for four

years and six months,” BPA said in a press release. 

The agreement would also commit CFAC

to purchasing the power at the agreed Industrial Firm Power Rate

for a minimum of nine months.

BPA is accepting comments on the

proposed sales agreement and on possible environmental effects

through Aug. 31 at www.bpa.gov/comment