Gov. Bev Perdue today announced that the State of North Carolina has filed papers with the Federal Energy Regulatory Commission (FERC) seeking return of the right to plan the use of the Yadkin River flows and the Yadkin hydroelectric project for the benefit of the people of North Carolina.
“Fifty years ago, we endorsed Alcoa’s request for a federal license to operate hydroelectric dams because the project created jobs for up to 1,000 North Carolinians,” said Gov. Bev Perdue. “Today, those jobs are gone, and so is the reason for the license.”
“The State of North Carolina is responsible for the health and well-being of its citizens,” Perdue said. “Given the Yadkin River’s broad impact on the state, we believe strongly that the state is the most appropriate body to plan use of this invaluable natural resource, to help assure the region’s municipal water supply and quality and to facilitate future growth and development.”
The Yadkin River Basin includes nearly a quarter of the state’s 100 counties, representing 17.5 percent of its population.
The initial federal license for the Yadkin hydroelectric facilities, which expired in 2008, was granted more than 50 years ago to Alcoa Power Generating Inc. APGI developed a series of dam and hydroelectric plants to serve the industrial needs of its parent company, Alcoa Inc., namely, its aluminum smelting plant in nearby Badin, which required a significant amount of power. The facilities comprising the Yadkin Project have essentially determined how the Yadkin River flows have been used in the state for the past 100 years.
In applying for its initial license, the company argued extensively that a 50-year federal license was needed to continue the company’s aluminum smelting operation in Badin- at the time, the principal industry serving that part of North Carolina, which had created nearly 1,000 jobs for the area. The smelting plant closed in 2007, so the company no longer provides the socio-economic benefit to the region that was the basis for the state supporting the initial license.
FERC is an independent agency empowered by the Federal Power Act to license the construction and operation of non-federal hydroelectric projects on the navigable waters of the United States, or that affect interstate commerce. The terms of Alcoa’s initial license specifically acknowledged the possibility of recapture of the license by the federal government, once the license expired.
Despite the smelting facility closure, the company has sought to maintain control over the Yadkin River by seeking another 50-year license, to sell hydroelectric power generated from the Yadkin Project on the national market, without providing local benefit. The state also contends that Alcoa has created environmental problems that it has failed to address, and has thus not demonstrated good stewardship of the river that would warrant issuance of another license.
The supporting papers filed by North Carolina include a detailed plan for the Yadkin region, proposed by the state, and legal comments, prepared by the departments of Commerce and Justice, respectively. The papers urge FERC to recommend to Congress that the Yadkin Project facilities under the now-lapsed license be sold to the federal government at the agreed upon price formula provided for under the Federal Power Act. If FERC and Congress agree, the state would obtain the Yadkin Project facilities and a license from FERC so that it could plan how the hydroelectric project would be operated.
The state maintains that its papers demonstrate that it is the most appropriate steward for this vital resource. It proposes that the Yadkin River Project and the Yadkin River flows should be managed to accomplish the following purposes:
· Adequate municipal water supply. Recent droughts (2008 and 2002) have demonstrated clearly the state’s vulnerability regarding adequate water supply. The state is best suited to help assure adequate municipal water supply through coordinated regional planning that best serves the public interest.
· Availability of clean water resources in the region. Low flows arising from drought conditions concentrate pollutants, creating problems for humans and wildlife. Water quality issues arising from Alcoa’s industrial activities continue to raise concerns. The state believes Alcoa has failed to maintain the hydroelectric plant equipment in a manner that would reduce pollution and has concerns about past Alcoa plant operations that might pose ongoing threats to human health and the environment.
· Long-term planning in the public interest. The state, with its longer-term perspective and mandate to balance competing needs for the public good, is well-equipped to plan for the region’s and the river basin’s infrastructure needs, including hydroelectric power; public health and the environment; clean, accessible water supplies for new and existing communities; and economic development, tourism and recreation – all public purposes -- on behalf of the citizens of North Carolina.
The State’s plan may be viewed here: http://www.nccommerce.com/en/AboutDOC/PublicationsReports/NCDeptCommercePublications/yadkinriverprojectpapers.htm.