Alcoa to Invest $20 Million in Chelan PUD Power Delivery

Chelan County PUD commissioners gave their nod last month to Alcoa’s plan to invest an estimated $20 million in power system upgrades that will make it possible to operate a third pot line reliably at Alcoa’s Wenatchee Works in coming years.

Commissioners approved a resolution authorizing PUD General Manager Rich Riazzi to sign agreements with Alcoa that will bring upgrades at the PUD’s McKenzie Substation southeast of Malaga, improve the connection at Alcoa for the PUD’s 230-kv Columbia 2 transmission line from Rocky Reach Dam and purchase for the PUD part of the Valhalla Substation near Alcoa that is owned by Bonneville Power Administration (BPA).

“This is confirmation of Alcoa’s commitment to stay in the valley,” said PUD Commissioner Ann Congdon.

“We appreciate the commitment,” added Commission President Dennis Bolz.

The Interconnection Agreement is a follow-up to a new long-term power sales contract signed by the PUD and Alcoa in July 2008 that provides for Alcoa to receive a 26-percent share of the output from Rock Island and Rocky Reach dams from 2011 through Oct. 31, 2028. Alcoa said at that time that it hoped to be able to add a third pot line to the Wenatchee Works, and PUD commissioners voiced their desire to have the community continue to benefit from the family-wage jobs provided by the Alcoa smelter.

The improvements in this latest agreement will improve reliability of power delivery to the smelter, something Alcoa wanted prior to starting a third pot line in 2011 or 2012, according to Bob Huber, Alcoa NW energy manager, who spoke to PUD commissioners.

Huber said Alcoa knew the upgrades were needed if the plant were to operate reliably into the future and add a third pot line. The intent is to do all the work and get the third line running, he said. 

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