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