Alcoa Signs 17-Year Power Pact For Wenatchee,Wash Smelter

Alcoa Inc. (AA) said Thursday that a 17-year renewable hydropower supply has been approved for its smelter in Wenatchee, Wash.

The New York producer of aluminum said that under terms of the agreement Alcoa will receive approximately 25% of the renewable hydropower output of the Rocky Reach and Rock Island dams.

Alcoa also said the agreement will allow it to expand production by adding a third potline and about 60 jobs.

The upgrade is expected to increase production at the smelter by 42,000 metric tons a year and bring total production to about 142,000 metric tons a year.

The power agreement was approved by commissioners in Public Utility District Number One of Chelan County in Washington and will take take effect on Nov. 1, 2011, when the current contract expires, and continue through October 2028.

The Chelan Public Utility District and Alcoa will use the approved terms to draft the final contracts, which won’t take effect until approved by both organizations.