BPA, Golden Northwest agree to delay power deliveries, pursue wind energy
PORTLAND, Ore. – The Bonneville Power Administration (BPA) and Golden Northwest Aluminum Inc. (Golden Northwest) have agreed to delay restart of BPA power deliveries to the company’s smelters in The Dalles, Ore., and Goldendale, Wash., for an additional six months. Under the pact, BPA will also support development of a wind energy project by an affiliate of Golden Northwest.
The curtailment agreement covers the full 236 megawatts of power Golden Northwest otherwise would have received from BPA from Oct. 1, 2001, through March 31, 2002.
"This agreement helps balance supply and demand during the ongoing West Coast energy crisis. It allows BPA to avoid purchasing expensive power and will reduce what otherwise could have been a very large rate increase in October," said Steve Wright, acting administrator of BPA. "It will also help the region avoid power shortages next winter."
BPA previously had requested its aluminum industry customers to curtail all operations for up to two years and other customers to reduce loads by 10 per cent. Because of Golden Northwest’s contractual obligations, it is able to commit to a six-month curtailment.
The agreement is comparable to others worked out with aluminum companies, but for a six-month period. Golden Northwest has agreed to provide wages and benefits sufficient to cover employees who would have worked had the company used BPA power to operate.
"While we always prefer operating over staying shut down, the BPA payments will allow us to minimize impacts on our employees and communities," explained Brett Wilcox, president of Golden Northwest. "We plan to produce aluminum again next spring after this curtailment," said Wilcox.
The BPA power supply is sufficient to meet about half of the company’s needs.
BPA also agreed that it would work toward an agreement to provide limited assistance to Golden Northwest to develop new wind generating resources.
Wright said: "Golden Northwest has made a significant financial commitment to meeting its own power needs after 2006. We applaud this effort and are making this commitment to support it." An affiliate of the company is building the projects. BPA’s support would be limited to 200 MW of capacity.