BC Hydro could power Intalco
INDUSTRY: 2 power deals reportedly discussed; officials say smelter not working toward closure.
Aubrey Cohen and Ericka Pizzillo, The Bellingham Herald
Alcoa Intalco Works is negotiating with two electricity suppliers for power that would be cheap enough to allow the idled aluminum smelter to restart, Whatcom County Executive Pete Kremen said Wednesday.
Kremen confirmed that BC Hydro might provide cheap power to the smelter to win local support for a natural gas pipeline the British Columbia utility and Williams Gas Pipeline want to build through Whatcom County.
He declined to disclose details of the other potential deal, but said the two arrangements would fulfill Intalco's electricity needs for years without requiring new power plants in the county.
Power play
Kremen said he contacted Powerex -- BC Hydro's power marketing subsidiary -- seeking power from the utility as a way to obtain local benefit from the proposed pipeline, which would bring gas from the lower B.C. mainland to power plants on Vancouver Island.
"BC Hydro has power, and we need power," Kremen said.
He said the county had "no reason to be receptive" to the pipeline project unless it provided a benefit to the county. He said he would not support the project if it would cause environmental degradation or a "remotely significant" health threat.
Kremen said he and Intalco officials had met with Powerex representatives and might have an agreement as soon as next week.
Intalco officials announced in May that the smelter would shut down for two years in a deal with the Bonneville Power Administration. BPA, which is facing an electricity shortfall, agreed to give Intalco money to pay most of the smelter's 930 workers during the closure.
Kremen said the power deals would allow Intalco to reopen sooner.
The Federal Energy Regulatory Commission will review the proposed natural gas line, which would run 33 miles from Sumas to Cherry Point, then across the Georgia Strait. Whatcom County has filed to be an intervenor in the hearings, which means it could testify about potential risks from the project.
At a public hearing this Tuesday night on possible environmental impacts of the 20-inch pipeline, county Senior Planner Kraig Olason noted that the line would not provide any local jobs.
Intalco General Manager Jim Frederick said at the hearing that he hoped the smelter could get power from the project. Frederick was traveling to the East Coast Wednesday and could not be reached for comment.
BC Hydro spokeswoman Elisha Odowichuk said the utility has a standing policy against talking about negotiations. She said she could not confirm that the utility was talking with Intalco.
Kremen said he contacted BC Hydro only after discussing safety and environmental issues with County Council member Dan McShane, a geologist.
McShane said he had some concerns about how Williams and BC Hydro would build the pipeline and maintain the right-of-way but said the project seemed environmentally sound.
He said he understood why Williams and BC Hydro want to run the line through Whatcom County, noting that rugged mountains, dense urban areas and the Fraser River delta, which is prone to underwater landslides, blocked potential Canadian routes.
McShane backs the idea of seeking cheap power for Intalco from BC Hydro.
"It would be nice to get something," he said. "It certainly has some negative impacts to people's properties to have pipelines running through their land."
Working to reopen
Clarence Harper, business representative for the Ferndale lodge of the International Association of Machinists and Aerospace Workers, said he knew Intalco officials were working on many different deals for power but said they had not formally discussed any plans with union representatives.
The company sent out letters this week proposing early retirement packages to employees to reduce part of the work force, but employees working at the smelter were not readying the plant for a closure, Harper said.
"It's clear that the capital being put into the facility now is with the intent to start up the facility as soon as possible," he said, noting the smelter would take six to eight weeks to return to full production.
Kremen said Intalco officials' efforts show they do not intend to keep the smelter idle.
"They're working their tails off to get long-term power," he said. "I'm impressed with their commitment to leave no stone unturned to remain in this community."