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New BPA bargain can maintain Alcoa's Intalco smelter running past June

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Alcoa should find out later on this springtime whether the Bonneville Power Administration provides its final approval for a power arrangement that would certainly allow the firm's Intalco aluminum smelter in Ferndale, Washington, to stay in partial procedure at the very least right into February 2018, BPA officials stated Thursday.

The 279,000 mt/year plant was scheduled to close by the end of June.

Under molecular sieve manufacturer discussed deal, Alcoa would certainly continue to operate Intalco at its current level of two-and-a-half potlines, or regarding 226,000 mt/year, with about 350 MW of power, bought mostly on the market, rather than cutting production to just its casthouse operation and purchasing a maximum of 10 MW from BPA under an existing amended agreement.

Mark Miller, a BPA account executive, said the existing changed agreement would certainly end June 30 and also the brand-new arrangement would certainly begin July 1.

Under the original agreement, which started in January 2013, BPA was selling 300 MW to Alcoa, he said.

" They gave us a termination notification and we sat down with them and negotiated new terms of the agreement which went down the acquisition amount to 75 MW, which enabled them to purchase even more from the market," Miller said. "In November [2015], they offered us a notice that they wanted to curtail their purchases from us down to 10 MW."

The events after that returned to settlements. That caused the brand-new accord that Miller claimed provides for various other arrangements made to safeguard both Alcoa as well as BPA.

Alcoa would certainly remain to purchase 10 MW from BPA at its industrial power price and BPA would certainly market Alcoa an additional 25 MW at an indexed market price plus a tiny adder.

Miller claimed the BPA price would be more than $40/MWh, although he was not specific. Alcoa would certainly be able to continue to access the marketplace for the remainder of its power requires.

In all, BPA approximated the overall value of the suggested change is a little more than $5.29 million to the federal nonprofit firm based in the Pacific Northwest.

Alcoa authorities did not instantly respond to an e-mail Thursday seeking talk about the pending contract.

Alcoa completely shut its 269,000 mt/year Warrick light weight aluminum smelter in Warrick Region, Indiana, at the end of March.

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