Aluminum profiting from BPA power, DeFazio says
Friday, April 20, 2001
By Alice Tallmadge, Correspondent, The Oregonian
EUGENE --Rep. Peter DeFazio savaged the aluminum industry Thursday, accusing it of making $1.4 billion by reselling the low-cost electricity it received from the Bonneville Power Administration this year and then turning to Vice President Dick Cheney for guarantees of low-cost power for the next two years.
At a time when the Northwest is beset by near-drought conditions and soaring wholesale electricity prices, "It is an absolutely outrageous position for them to be taking," said DeFazio, D-Ore. "The aluminum industry shouldn't be special. It should pay the same price for power as the mill in Cottage Grove, as the hospital by the university, as residential ratepayers.".
The congressman held a news conference in Eugene to release a report his office compiled detailing the profits aluminum companies have made by shutting down and reselling their low-cost power.
Aluminum company officials objected to DeFazio's characterization of their actions and argued that they are seeking equitable rates for all BPA customers.
According to the report, the aluminum companies Kaiser, Goldendale Northwest and Columbia Falls -- all with smelters in the Northwest -- have profited the most from the resale of BPA power. Kaiser netted $426 million; Goldendale Northwest, $344 million and Columbia Falls, $292 million, according to the report, which analyzed data supplied by BPA.
Goldendale Northwest, with smelters in Goldendale, Wash., and The Dalles, used some of its windfall to compensate idled workers and invest in its own generation system, the report noted.
"All the dollars are going to preserve jobs in Oregon and Washington," said Brett Wilcox, president of Golden Northwest. "It should be a package (DeFazio) would like if he would take the time to think about it."
Aluminum industry officials have arranged a meeting with Cheney to propose that BPA sell the smelters enough low-cost power to operate at partial capacity beginning in October. BPA Acting Administrator Steve Wright has called for the region's 10 aluminum companies to shut down for two years.