Public meeting held on license for Yadkin River dams

Lexington, N.C. — More than 200 people attended a public meeting Thursday night in Davidson County about aluminum company Alcoa Inc., which operates four hydroelectric dams along the Yadkin River.

Gov. Beverly Perdue's administration is fighting Alcoa's effort to renew a 1958 federal license to operate the dams, which powered an aluminum plant that once employed hundreds.

The dams along the Yadkin River once provided power for Alcoa’s aluminum plant in the area, but that facility closed in 2007. The electricity is now sold on the open market.

State Secretary of Commerce Keith Crisco said there are potentially millions at stake, with estimates varying from $20-$100 million. Crisco said $40-$60 million is a fair estimate.

“It’s one of the largest assets of the state and to turn it over for 50 years for essentially nothing is just not good economic sense,” Crisco said.

Chuck Melton and his wife, who have lived on High Rock Lake for the past 15 years, blame Alcoa for problems in their area.

“We definitely have sediment issues and we definitely have pollution issues on High Rock,” Melton said.

Melton said the problem is worse about 20 miles down the river in Badin Lake, where there have been concerns for years about dangerous chemicals in the water.

There is currently warning telling people not to eat fish from Badin Lake more than once a week.

“We lived here a long time and hadn’t ever eaten fish out of this water,” boater Pat Coulder said.

Thursday's meeting was locally organized and state officials attended.

Legislators voted earlier this month to create a new state regional commission in the area. This puts the state in a position where they could take over the dams if Alcoa's license isn't renewed, Crisco said.

An Alcoa spokesman said the dams are the company’s property and investment and it isn’t right for the state to come in and take it.

Many House lawmakers agree with Alcoa and are against the government takeover of private property, Rep. Nelson Dollar, R-Wake, said.

“They did not buy the house. They rented the house and the lease is up,” Crisco said.

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There are so many things wrong with this lopsided report. This type of inflammatory reporting is why I distrust the news in general.

1. “They did not buy the house. They rented the house and the lease is up,” Crisco said. - That is just stupid. There WAS no house. Alcoa paid for and built the dams and all attendant facilities. They also built many ramps on the lakes and other public services.

2. Yes, there are environmental concerns related to the long term operation of the plant. Alcoa has been and will continue to spend money to contain and clean up those issues. Do you think that just because the state seizes the property that those issues will magically disappear? No, it will just shift the burden to the state and make it more of a burden on the budget.

3. Read the financial analysis of Duckman below. There are probably even more deficits than he is projecting (see #2).

4. Since when has the state typically ever paid MORE wages than a commercial employer?

pjneder
July 30, 2010 5:21 p.m.

@Wheel: That is not HER money hole, it is ours.

We Care
July 30, 2010 4:50 p.m.

License: 1958 federal license to operate the dams

We Care
July 30, 2010 4:49 p.m.

Any of you for the takeover thought about this economically.

An the initial investment on behalf of the citizens via the State would be pushing $1 billion when you take into account property acquisition, legal fees, basic maintenance of the dams required by law, etc. with a projected $3 billion deficit next year.

If the sale of electricity is $40 million a year, assuming all that money goes to pay off the debt, that's at least 20-25 years of payments just to get to the point that the State is making any money on the project not taking into account additional monies needed for upkeep and and repairs. Since the State doesn't have the knowledge or manpower to operate 4 hydroelectric power dams, they would have to contract out the operations, maintenance, etc of them. In that event, you'd be paying out a very large chunk of the sale proceeds to pay that company or companies contract. So you are looking at maybe 30-50 years before the project shows positive results for the citizens.