CFAC deal months away

A decision to restart Columbia Falls Aluminum Co. is still months away, even with an electric power deal potentially in the works, a company spokesman said Tuesday.

The Bonneville Power Administration is proposing a deal that could provide service to the closed aluminum plant for up to 4 1/2 years.

But before it can come to an agreement with Columbia Falls Aluminum Co., the power company has to go through a public comment period and address potential environmental impacts of the plant’s reopening.

“It’s just a step in the process,” said Hailey Beaudry, Columbia Falls Aluminum Co. spokesman. “This is not a contract. We can’t just step up today and say, ‘We’ll take it.’”

Bonneville hosted a meeting about the proposal Monday in Columbia Falls that was well-attended by former aluminum plant employees and other interested community members, Beaudry said.

“There were retired-age employees and former employees of the age where they would go back to work [if the plant restarted], and other people interested in the improvement of the situation of the community in Flathead County if we start that plant,” he said.

Restarting “would be a big deal,” he added.

Columbia Falls Aluminum Co. operated (with one other closure) from August 1955 to October 2009, when the high cost of power and increased international competition led to the plant’s closure. Eighty-eight people lost their jobs when the plant went dark; at its peak, the facility had employed more than 1,200 people.

Sen. Jon Tester, D-Mont., said he has been pushing Bonneville to sign a new long-term contract with the aluminum company since the plant shut down.

“The Flathead Valley has been hammered by job losses in recent years, and reopening the CFAC plant would bring back much-needed good-paying jobs,” Tester said in a press release. “We’ve been down this road before only to be frustrated. It is time for CFAC and BPA to finalize this agreement, and I will keep pressing all sides to get something done.”

Bonneville’s proposal would provide 140 average megawatts, enough power to run two of the smelter’s five potlines. According to the company, the power deal would begin April 1, 2012, if it gets final approval.

But before the power and aluminum companies can come to an agreement, Bonneville has to address a federal environmental law, Beaudry said.

“They will have questions about how, if any, the sale of electricity to Columbia Falls Aluminum Co. would affect that National Environmental Policy Act,” he said.

Bonneville is accepting comments this month on the proposed sales agreement and possible environmental effects. The power company then will analyze and respond to those comments before deciding how to proceed.

That decision could fall anywhere along a large spectrum, from moving forward with no changes to doing a full-blown environmental impact statement before proceeding, Beaudry said.

He said the companies were hopeful Bonneville would decide how to proceed by early December.

“If and when they get to a point where they decide ... they can enter into this contract with Columbia Falls Aluminum Company, then we’ll have the decision on whether or not to restart the plant,” Beaudry said.

Based on studies the company has conducted internally, two potlines likely wouldn’t be enough to turn a profit, he said.

“Economies of scale dictate that we run three potlines instead of some other number as a way to have the best chance of making the company profitable,” he said.

That would mean the company would have to turn to the open market to purchase power for the third potline.

While Beaudry called the cost of restarting the plant “significant,” he wasn’t able to provide an actual dollar amount. That figure will depend on several factors, including how much longer the plant is closed and at what level it started, he said.

“The plant will be older tomorrow than it is today, and so on,” Beaudry said. “[Restarting] is a significant cost, a significant commitment, but I don’t have a number.”

To comment on the proposed sales agreement and possible environmental impacts, visit http://www.bpa.gov/comment.

Comments will be accepted through Aug. 31.

Reporter Kristi Albertson may be reached at 758-4438 or at kalbertson@dailyinterlake.com.