US seeks to stop Kaiser from re-selling power

WASHINGTON, Dec 12 (Reuters) - U.S. Energy Secretary Bill Richardson said he will try to block Kaiser Aluminum Corp. <KLU> from reselling electricity the company would not need after shutting down some of its smelter operations in the Pacific Northwest.

Richardson said he ordered the Bonneville Power Administration, from which Kaiser buys electricity, to "explore all necessary actions to prevent Kaiser from remarketing this power."

Richardson said Kaiser would be "taking advantage" of high market prices for electricity in the region.

The company said it would make $52 million from reselling the now-surplus power.

"While Kaiser will make millions from the use of a federal resource, I am concerned that this is coming at the expense of employees that will be out of work and that may not be fully compensated," Richardson said in a statement issued on Monday night.

Bonneville, and several other federal power marketing administrations, were set up by Congress in the 1930s to provide electricity to rural and undeveloped areas in the United States.