X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PORTLAND-Goldendale Northwest Aluminum is the latest smelter operator to agree to an extended closure as part of an effort to increase power reserves and stave off power problems throughout the Northwest. Alcoa, Columbia Falls and Longview Aluminum also have agreed to remain shut down.

The Shuttered smelters mean more power reserves for the federally operated Bonneville Power Administration, supplier of nearly half the power consumed in the Northwest and supplier to most of the aluminum companies. The BPA is trying to stave off energy shortages and exponential rate increases expected later this year.

Under the pacts, BPA will pay the smelter operators $20 per megawatt hour for their power, some of which will be used to provide full wages and benefits sufficient to cover employees who would have worked had the smelters not shut down. The BPA also will support development of a wind energy project by an affiliate of Golden Northwest.

“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.”

Meanwhile, efforts to settle claims from the California power crisis began Monday. Western states accuse power-generating companies of overcharging to the tune of $15 billion during the past 12 months. California says it should receive $9 billion in refunds. Other Western states say they are owed around $6 billion.

Specifically, the states allege the power producers took advantage of the power shortage by unfairly driving up prices to 10 times what they were in 1999. In the past year, rates often topped $300 per megawatt-hour. The power companies argue that the charges were justified.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.