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Jobs may hinge on fight over hydropower license

Stanly officials in fight over aluminum maker Alcoa's control of Yadkin River.

By Bruce Henderson
bhenderson@charlotteobserver.com
Posted: Saturday, Sep. 10, 2011
Source

The prospect of new jobs has raised tensions in Stanly County over Alcoa's control of the Yadkin River.

The 250 jobs promised by a steel-recycling company that Alcoa will partly own, come with an implicit catch: that Stanly officials stop fighting the aluminum maker's renewal of its federal hydropower license.

No deal, county commissioners said this week. Alcoa shut down the aluminum works in Badin that was once the county's largest employer, and the county argues it no longer deserves to make millions selling hydroelectric power.

While Alcoa has pledged to recruit hundreds of new jobs to fill the Badin Works, 45 miles northeast of Charlotte, county officials envision thousands of jobs created with cheap electricity if the license were in local hands.

Commissioner Tony Dennis said Alcoa tried to use the Clean Tech jobs to lure Stanly into dropping its fight.

"It was a bad deal for the county and the state of North Carolina," he said. "That's all it was, a show. We welcome the jobs, but we're not going to be held hostage over something that has nothing to do with it."

Other Stanly residents say they're tired of four years of fighting between the county and Alcoa. A rally in support of Clean Tech, the company offering new jobs, was scheduled last night in Albemarle.

"Enough is enough," said Vanessa Mullinix, a former Alcoa worker who organized the rally. County commissioners "have just about depleted us on New York lawyers and lobbyists, and they have nothing to show for it."

Alcoa ran the Badin Works for nearly a century, at its peak employing nearly 1,000 workers and earning a place on the county seal. But the complex largely shut down in 2002, and closed for good a couple of years ago.

Since 2007, the company and county commissioners have sparred over the hydro license. Then-Lt. Gov. Bev Perdue joined the debate, asking that federal regulators delay issuing the license. Legislators tried, unsuccessfully, to create a state trust to manage the hydro project.

State regulators last December revoked a water-quality permit that Alcoa needs to renew its federal license, citing an "intentional omission" in the company's application. Alcoa's appeal is scheduled for hearing in a state administrative court in February.

"The governor wants these high-paying Clean Tech jobs in North Carolina and is hopeful that a resolution can be reached quickly that addresses Stanly County's concerns," said Chris Mackey, Perdue's press secretary. Clean Tech says it is interested in moving into part of Alcoa's old complex and hiring 250 workers to recycle scrap metal and make silicon metal at an average wage of $55,000 a year. A key is the company's long-term ability to buy large amounts of electricity - including Alcoa's if its license is renewed.

County officials gave assurances last spring "that a path forward would be available," said Dave Stickler, a Clean Tech board member. "So far we have not seen that path forward."

The offer is part of 750 jobs Alcoa has pledged to recruit to fill the old Badin Works, now a business park, if Stanly drops its opposition. The company said it will invest millions of dollars in infrastructure.

One firm, which recycles electronic components, has moved into the 123-acre complex. The company now has about 30 employees and hopes to grow to about 200 workers within a year.

A county official said Alcoa also offered to reimburse the $4.8 million Stanly has spent on lawyers in Raleigh and Washington fighting renewal of the hydro license. "We made a very substantial offer to Stanly County that we believe would transform its economy," said Alcoa spokesman Michael Belwood. "We do not have an agreement and at this point those jobs hang in the balance. Time is running low and we need to act."

Belwood said it's uncertain whether negotiations with the county will continue. The county says talks aren't over.

"Our board understands the need and wants jobs and investment," said County Manager Andy Lucas. "At the same time, our board understands the value of water in terms of job production and cheap energy. That has value, too."

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