BPA proposes energy deal for Wash. aluminum plant

The Bonneville Power Administration has proposed an energy deal that could keep Alcoa's Intalco aluminum smelter in Whatcom County operating for the next 20 years.

The company would be able to buy 240 megawatts of low-cost BPA power for 10 years, beginning Oct. 1, 2011. That's enough to run the plant west of Ferndale at about half-capacity. The company could seek other power sources to operate more capacity.

The company could buy a supply of 160 megawatts for the seven years after that.

In return, the company agreed to invest $125 million to $160 million in modernizing the plant, while maintaining a $48 million-a-year payroll. The plant has about 660 workers

A review process of the proposal is just beginning, aiming for final approval in January.

© 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.