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A 50-year federal license to operate the dams on the Yadkin River was granted in 1958 to the Carolina Aluminum Company, a part of Alcoa, which owned the power plants and the land under the lakes, as well as significant land holdings around the lakes. The license was transferred from Yadkin, Inc. (an Alcoa subsidiary) to APGI in 2000.<ref>{{cite news|url=http://www.salisburypost.com/october99/101599h.htm|title=Yadkin Inc. starts regular draw down of High Rock Lake|last=Wineka|first=Mark|work=[[Salisbury Post]]|date=1999-10-15|accessdate=2010-01-14}}</ref><ref>{{cite web|url=http://www.nccommerce.com/NR/rdonlyres/05668F21-9B94-4C9E-BCFF-458697CC18EA/0/NC21stCenturyPlanforYadkinRiverResources.pdf|title=The State of North Carolina's 21st Century Plan for the Use of The Yadkin River Resources: Volume 1|date=2009-09-08|accessdate=2010-01-14}}</ref><ref name="timeline">{{cite web|url=http://www.alcoa.com/yadkin/en/relicensing/timeline.asp|title=Relicensing Timeline|accessdate=3-2-2010}}</ref> In 2002, APGI began an extensive relicensing process<ref name="hearings">{{cite news|url=http://archive.salisburypost.com/archive_detail.php?archiveFile=2002/October/31/export8198490200001101838439.xml&start=0&numPer=20&keyword=alcoa+public+meeting&sectionSearch=&begindate=1/1/1983&enddate=3/2/2010&authorSearch=&IncludeStories=1&pubsection=&page=&IncludePages=1&IncludeImages=1&mode=allwords&archive_pubname=Salisbury+Post%0A%09%09%09|title=Alcoa plans public hearings|work=Salisbury Post|date=October 31, 2002|accessdate=3-4-2010}}</ref> with four series of local public hearings held throughout the project area,<ref name="hearings"/><ref>{{cite news|url=http://archive.salisburypost.com/archive_detail.php?archiveFile=2004/June/23/Area/23-alcoa_meetings048466001101839795.xml&start=0&numPer=20&keyword=alcoa+public+meeting&sectionSearch=&begindate=1/1/1983&enddate=3/2/2010&authorSearch=&IncludeStories=1&pubsection=&page=&IncludePages=1&IncludeImages=1&mode=allwords&archive_pubname=Salisbury+Post%0A%09%09%09|title=Alcoa to update public on Yadkin Project|last=Wineka|first=Mark|work=[[Salisbury Post]]|date=June 23, 2004|accessdate=3-4-2010}}</ref><ref>{{cite news|url=http://www.salisburypost.com/Breaking/Alcoa_hearings|title=Alcoa relicensing hearings tonight and Wednesday|work=Salisbury Post|date=January 27, 2007|accessdate=3-4-2010}}</ref><ref>{{cite web|url=http://edocket.access.gpo.gov/2007/pdf/E7-21156.pdf|title=DEPARTMENT OF ENERGY, Federal Energy Regulatory Commission (Project No. 2197–073; Project No. 2206–030) Alcoa Power Generating, Inc., North Carolina; Progress Energy Carolinas, North Carolina; Notice of Public Meetings on Draft Environmental Impact Statement|work=[[Federal Register]] Vol. 72, No. 207|date=October 26, 2007|accessdate=3-6-2011}}</ref> and 100 representatives of over 30 stakeholder groups from federal, state, and local governmental agencies, and non-governmental organizations participating in Issue Advisory Groups and a lengthy settlement negotiation process.<ref>{{cite web|url=http://www.alcoa.com/yadkin/en/info_page/relicensing_overview.asp|title=Relicensing Facts|accessdate=March 6, 2011}}</ref> APGI commissioned 22 technical studies on the impact of the project in environmental, economic, recreation, and cultural areas.<ref name="studies">{{cite web|url=http://www.alcoa.com/yadkin/en/info_page/relicensing_studies.asp|title=Relicensing Studies|accessdate=2010-3-2}}</ref> On May 7, 2007, APGI submitted a Relicensing Settlement Agreement which contained many benefits to the project area, signed by 23 stakeholders, to the [[Federal Energy Regulatory Commission]] (FERC).<ref name="relicensing_settlement">{{cite web|url=http://www.alcoa.com/yadkin/en/info_page/relicensing_settlement.asp|title=Relicensing Settlement Agreement|accessdate=2010-3-2}}</ref>
A 50-year federal license to operate the dams on the Yadkin River was granted in 1958 to the Carolina Aluminum Company, a part of Alcoa, which owned the power plants and the land under the lakes, as well as significant land holdings around the lakes. The license was transferred from Yadkin, Inc. (an Alcoa subsidiary) to APGI in 2000.<ref>{{cite news|url=http://www.salisburypost.com/october99/101599h.htm|title=Yadkin Inc. starts regular draw down of High Rock Lake|last=Wineka|first=Mark|work=[[Salisbury Post]]|date=1999-10-15|accessdate=2010-01-14}}</ref><ref>{{cite web|url=http://www.nccommerce.com/NR/rdonlyres/05668F21-9B94-4C9E-BCFF-458697CC18EA/0/NC21stCenturyPlanforYadkinRiverResources.pdf|title=The State of North Carolina's 21st Century Plan for the Use of The Yadkin River Resources: Volume 1|date=2009-09-08|accessdate=2010-01-14}}</ref><ref name="timeline">{{cite web|url=http://www.alcoa.com/yadkin/en/relicensing/timeline.asp|title=Relicensing Timeline|accessdate=3-2-2010}}</ref> In 2002, APGI began an extensive relicensing process<ref name="hearings">{{cite news|url=http://archive.salisburypost.com/archive_detail.php?archiveFile=2002/October/31/export8198490200001101838439.xml&start=0&numPer=20&keyword=alcoa+public+meeting&sectionSearch=&begindate=1/1/1983&enddate=3/2/2010&authorSearch=&IncludeStories=1&pubsection=&page=&IncludePages=1&IncludeImages=1&mode=allwords&archive_pubname=Salisbury+Post%0A%09%09%09|title=Alcoa plans public hearings|work=Salisbury Post|date=October 31, 2002|accessdate=3-4-2010}}</ref> with four series of local public hearings held throughout the project area,<ref name="hearings"/><ref>{{cite news|url=http://archive.salisburypost.com/archive_detail.php?archiveFile=2004/June/23/Area/23-alcoa_meetings048466001101839795.xml&start=0&numPer=20&keyword=alcoa+public+meeting&sectionSearch=&begindate=1/1/1983&enddate=3/2/2010&authorSearch=&IncludeStories=1&pubsection=&page=&IncludePages=1&IncludeImages=1&mode=allwords&archive_pubname=Salisbury+Post%0A%09%09%09|title=Alcoa to update public on Yadkin Project|last=Wineka|first=Mark|work=[[Salisbury Post]]|date=June 23, 2004|accessdate=3-4-2010}}</ref><ref>{{cite news|url=http://www.salisburypost.com/Breaking/Alcoa_hearings|title=Alcoa relicensing hearings tonight and Wednesday|work=Salisbury Post|date=January 27, 2007|accessdate=3-4-2010}}</ref><ref>{{cite web|url=http://edocket.access.gpo.gov/2007/pdf/E7-21156.pdf|title=DEPARTMENT OF ENERGY, Federal Energy Regulatory Commission (Project No. 2197–073; Project No. 2206–030) Alcoa Power Generating, Inc., North Carolina; Progress Energy Carolinas, North Carolina; Notice of Public Meetings on Draft Environmental Impact Statement|work=[[Federal Register]] Vol. 72, No. 207|date=October 26, 2007|accessdate=3-6-2011}}</ref> and 100 representatives of over 30 stakeholder groups from federal, state, and local governmental agencies, and non-governmental organizations participating in Issue Advisory Groups and a lengthy settlement negotiation process.<ref>{{cite web|url=http://www.alcoa.com/yadkin/en/info_page/relicensing_overview.asp|title=Relicensing Facts|accessdate=March 6, 2011}}</ref> APGI commissioned 22 technical studies on the impact of the project in environmental, economic, recreation, and cultural areas.<ref name="studies">{{cite web|url=http://www.alcoa.com/yadkin/en/info_page/relicensing_studies.asp|title=Relicensing Studies|accessdate=2010-3-2}}</ref> On May 7, 2007, APGI submitted a Relicensing Settlement Agreement which contained many benefits to the project area, signed by 23 stakeholders, to the [[Federal Energy Regulatory Commission]] (FERC).<ref name="relicensing_settlement">{{cite web|url=http://www.alcoa.com/yadkin/en/info_page/relicensing_settlement.asp|title=Relicensing Settlement Agreement|accessdate=2010-3-2}}</ref>


In January 2007, [[Stanly County, North Carolina|the County of Stanly]] began an effort to oppose APGI's relicensing.<ref name="CBJ">{{cite news|url=http://www.bizjournals.com/charlotte/stories/2009/08/03/story8.html|title=Fight over Alcoa Power control of Yadkin River nears an end?|last=Elkins|first=Ken|work=Carolina Business Journal|date=August 3, 2009|accessdate=March 8, 2011}}</ref> In 2008, North Carolina governor [[Mike Easley]] authorized a study of the effect of APGI's relicensing. APGI supported this study, whose findings have not been issued.<ref>{{cite news|url=http://www2.journalnow.com/content/2008/jul/17/state-drops-alcoa-move2/|title=State drops Alcoa move|work=[[Winston-Salem Journal]]|date=July 17, 2008|accessdate=3-4-2010}}</ref>
In January 2007, the Stanly County Commissioners announced they would oppose APGI's relicensing because of Alcoa’s record of polluting, and because granting the license to another entity, which would use the hydro-electricity created by the Yadkin River to create jobs, would better serve the public interest.{{fact}} In 2008, North Carolina governor [[Mike Easley]] authorized a study of the effect of APGI's relicensing. APGI supported this study, whose findings have not been issued.<ref>{{cite news|url=http://www2.journalnow.com/content/2008/jul/17/state-drops-alcoa-move2/|title=State drops Alcoa move|work=[[Winston-Salem Journal]]|date=July 17, 2008|accessdate=3-4-2010}}</ref>


In April 2008, FERC issued a Final Environmental Impact Statement (EIS) for the Yadkin Project, concluding that federal takeover would not be a reasonable alternative for the project, and noting that no federal agency had suggested that federal takeover would be appropriate, or had expressed an interest in operating the project.<ref name="eis">{{cite web|url=http://www.ferc.gov/industries/hydropower/enviro/eis/2008/04-18-08.asp|title=Final Environmental Impact Statement for the Yadkin and Yadkin-Pee Dee River Hydroelectric Projects, Nos. 2197-073 and 2206-030 (FERC)|accessdate=3-4-2010}}</ref><ref name="feis">{{cite web|url=http://www.alcoa.com/yadkin/en/pdf/Yadkin_FEIS_April_2008.pdf|title=Final Environmental Impact Statement for the Yadkin and Yadkin-Pee Dee River Hydroelectric Projects, FERC Nos. 2197-073 and 2206-030|accessdate=March 7, 2011}}</ref> Due to a stay on the water quality certificate, FERC has not made a final determination on the issuance of a license, and APGI has been operating under a temporary license.<ref name="Fortune">{{cite news|url=http://features.blogs.fortune.cnn.com/2010/11/30/alcoa-and-the-great-north-carolina-power-grab/|title=Alcoa and the great North Carolina power grab|last=Otterbourg|first=Ken|work=[[Fortune (magazine)|Fortune]]|date=November 30, 2010|accessdate=March 7, 2011}}</ref>
In April 2008, FERC issued a Final Environmental Impact Statement (EIS) for the Yadkin Project, concluding that federal takeover would not be a reasonable alternative for the project, and noting that no federal agency had suggested that federal takeover would be appropriate, or had expressed an interest in operating the project.<ref name="eis">{{cite web|url=http://www.ferc.gov/industries/hydropower/enviro/eis/2008/04-18-08.asp|title=Final Environmental Impact Statement for the Yadkin and Yadkin-Pee Dee River Hydroelectric Projects, Nos. 2197-073 and 2206-030 (FERC)|accessdate=3-4-2010}}</ref><ref name="feis">{{cite web|url=http://www.alcoa.com/yadkin/en/pdf/Yadkin_FEIS_April_2008.pdf|title=Final Environmental Impact Statement for the Yadkin and Yadkin-Pee Dee River Hydroelectric Projects, FERC Nos. 2197-073 and 2206-030|accessdate=March 7, 2011}}</ref> Due to a stay on the water quality certificate, FERC has not made a final determination on the issuance of a license, and APGI has been operating under a temporary license.<ref name="Fortune">{{cite news|url=http://features.blogs.fortune.cnn.com/2010/11/30/alcoa-and-the-great-north-carolina-power-grab/|title=Alcoa and the great North Carolina power grab|last=Otterbourg|first=Ken|work=[[Fortune (magazine)|Fortune]]|date=November 30, 2010|accessdate=March 7, 2011}}</ref>


In April 2009, North Carolina Governor [[Beverly Perdue]] issued a statement opposing APGI's relicensing and supporting legislation to allow a to-be-created Yadkin River Trust to assume ownership of the Yadkin Project and its license.<ref>{{cite news|title=Perdue opposes new license for Alcoa|last=Hewlett|first=Michael|work=[[Winston-Salem Journal]]|date=2009-04-02}}</ref> On August 6, 2009 the [[North Carolina House of Representatives]] voted down the creation of a state corporation to own and operate the dams.<ref>{{cite news|url=http://www.salisburypost.com/Area/080809-yadkin-Alcoa-vote|title=House says no to state operating Yadkin dams|work=[[Salisbury Post]]|date=2009-08-08|accessdate=2010-01-14}}</ref>
In April 2009, North Carolina Governor [[Beverly Perdue]] issued a statement opposing APGI's relicensing and supporting legislation to allow a to-be-created Yadkin River Trust to assume ownership of the Yadkin Project and its license.<ref>{{cite news|title=Perdue opposes new license for Alcoa|last=Hewlett|first=Michael|work=[[Winston-Salem Journal]]|date=2009-04-02}}</ref> With bipartisan support the N.C. Senate overwhelmingly passed legislation to establish the "public trust", but Alcoa supporters defeated the bill in the N.C. House.{{fact}}


A year later Republican Senator Fletcher Hartsell, again supporting establishing a "public trust" introduced a bill to create the Uwharrie Regional Commission. {{fact}}
⚫
In the final days of the 2010 legislative session, a documentary entitled "The Alcoa Story" produced by reporter Eszter Vajda of [[UNC-TV]] created a considerable stir. A state Senate committee subpoenaed the unaired footage, setting off a debate on whether UNC-TV, as a state entity, was entitled to protections usually afforded the press. Journalists and [[University of North Carolina|UNC]] President Emeritus [[William Friday]] denounced the subpoena and UNC-TV's submission.<ref>{{cite news|url=http://www.newsobserver.com/2010/07/13/578174/legislators-overstep-and-unc-bows.html#ixzz0uY8g7EZR|title=Legislators overstep and UNC bows low|last=Betts|first=Jack|work=[[News & Observer]]|date=Juy 13, 2010|accessdate=March 6, 2011}}</ref> Because of the controversy, UNC-TV aired the reports "without the usual editorial scrutiny" the week the State House voted on the Yadkin River Trust bill.<ref name=Vajda>{{cite news|url=http://www.newsobserver.com/2010/08/18/634012/basnight-swayed-unc-tv-decisions.html|title=Basnight swayed UNC-TV decisions|last=Bonner|first=Lynn|work=[[News & Observer]]|date=2010-08-18|accessdate=2010-08-18}}</ref> Journalists including a panel from UNC's own School of Journalism who reviewed the coverage found it biased and stated that "Any UNC journalism student producing this kind of 'story' would get a failing grade."<ref>{{cite news|url=http://weblogs.jomc.unc.edu/talkpolitics/?p=1407|title='A shameful episode in timidity'|last=Towns|first=Leroy|date=July 13, 2010|accessdate=March 6, 2011}}</ref> Documents released by UNC-TV revealed that a researcher working on the story accepted $3,000 from an Alcoa opponent.<ref>{{cite news|url=http://www.newsobserver.com/2010/08/14/628555/alcoa-foe-paid-worker-on-tv-story.html#storylink=misearch|title=Alcoa foe paid worker on TV story|last=Bonner|first=Lynn|work=[[News & Observer]]|date=August 14, 2010|accessdate=March 6, 2011}}</ref> By mid-August, Vajda had been fired from UNC-TV and all online footage had been removed.<ref>{{cite news|url=http://www.yesweekly.com/triad/article-10241-revisiting-the-eszter-vajda-case.html|title=Revisiting the Eszter Vajda case|last=Barber|first=Keith|work=Yes! Weekly|date=August 25, 2010|accessdate=March 6, 2011}}</ref>

⚫
In the final days of the 2010 legislative session, a documentary entitled "The Alcoa Story" produced by reporter Eszter Vajda of [[UNC-TV]] created a considerable stir.<ref name=Betts/> However, before the program aired Ms. Vajda expressed concerns to legislators that, because criticiaing a powerful corporation like Alcoa would be controversial, executives at UNC-TV might refuse to air her documentary.{{fact}} A state Senate committee subpoenaed the unaired footage, setting off a debate on whether UNC-TV, as a state entity, was entitled to protections usually afforded the press. Journalists and [[University of North Carolina|UNC]] President Emeritus [[William Friday]] denounced the subpoena and UNC-TV's submission.<ref name=Betts>{{cite news|url=http://www.newsobserver.com/2010/07/13/578174/legislators-overstep-and-unc-bows.html#ixzz0uY8g7EZR|title=Legislators overstep and UNC bows low|last=Betts|first=Jack|work=[[News & Observer]]|date=July 13, 2010|accessdate=March 6, 2011}}</ref> sparking a debate over whether UNC-TV (which is owned by state government) was subject to ‘public records’ laws or whether it had a special "journalistic exemption". In the end UNC-TV decided it was subject to public records law.{{fact}} Because of the controversy, UNC-TV aired the reports "without the usual editorial scrutiny" the week the State House voted on the Yadkin River Trust bill.<ref name=Vajda>{{cite news|url=http://www.newsobserver.com/2010/08/18/634012/basnight-swayed-unc-tv-decisions.html|title=Basnight swayed UNC-TV decisions|last=Bonner|first=Lynn|work=[[News & Observer]]|date=2010-08-18|accessdate=2010-08-18}}</ref> Journalists including a panel from UNC's own School of Journalism who reviewed the coverage found it biased and stated that "Any UNC journalism student producing this kind of 'story' would get a failing grade."<ref>{{cite news|url=http://weblogs.jomc.unc.edu/talkpolitics/?p=1407|title='A shameful episode in timidity'|last=Towns|first=Leroy|date=July 13, 2010|accessdate=March 6, 2011}}</ref> Documents released by UNC-TV revealed that a researcher working on the story accepted $3,000 from an Alcoa opponent.<ref>{{cite news|url=http://www.newsobserver.com/2010/08/14/628555/alcoa-foe-paid-worker-on-tv-story.html#storylink=misearch|title=Alcoa foe paid worker on TV story|last=Bonner|first=Lynn|work=[[News & Observer]]|date=August 14, 2010|accessdate=March 6, 2011}}</ref> By mid-August, Vajda had been fired from UNC-TV and all online footage had been removed.<ref>{{cite news|url=http://www.yesweekly.com/triad/article-10241-revisiting-the-eszter-vajda-case.html|title=Revisiting the Eszter Vajda case|last=Barber|first=Keith|work=Yes! Weekly|date=August 25, 2010|accessdate=March 6, 2011}}</ref>


Celebrity activist [[Erin Brockovich]], admitting “I haven’t really looked at the licensing issue,” spoke for supporters of the Yadkin River Trust at a news conference in [[Raleigh, North Carolina]] on June 29, 2010.<ref>{{cite news|url=http://www.carolinajournal.com/exclusives/display_exclusive.html?id=6578|title=At Raleigh event, Brockovich vague on Alcoa dam controversy|last=Henderson|first=Rick|work=Carolina Journal|date=June 29, 2010|accessdate=March 6, 2011}}</ref><ref>{{cite news|url=http://www.businessweek.com/ap/financialnews/D9GL6LM00.htm|title=Erin Brockovich worries about NC river pollution|last=Norfleet|first=Nicole|work=[[Business Week]]|date=2010-06-29|accessdate=2010-07-02}}</ref> Later in the day, the Yadkin Riverkeeper sponsored her appearance at [[Wake Forest University]].<ref>{{cite news|url=http://www.npaper-server.com/yes-weekly/2010/07/06/#?article=932122|title=Erin Brockovich lends celebrity profile to Alcoa controversy|last=Barber|first=Keith T.|work=Yes Weekly|date=2010-07-07|accessdate=2010-07-08}}</ref><ref name=Brockovich>{{cite news|url=http://www.salisburypost.com/News/063010-Erin-Brockovich-speech-qcd|title=Erin Brockovich speaks for Riverkeeper|last=Minn|first=Karissa|work=[[Salisbury Post]]|date=2010-06-30|accessdate=2010-07-08}}</ref>
Celebrity activist [[Erin Brockovich]], admitting “I haven’t really looked at the licensing issue,” spoke for supporters of the Yadkin River Trust at a news conference in [[Raleigh, North Carolina]] on June 29, 2010.<ref>{{cite news|url=http://www.carolinajournal.com/exclusives/display_exclusive.html?id=6578|title=At Raleigh event, Brockovich vague on Alcoa dam controversy|last=Henderson|first=Rick|work=Carolina Journal|date=June 29, 2010|accessdate=March 6, 2011}}</ref><ref>{{cite news|url=http://www.businessweek.com/ap/financialnews/D9GL6LM00.htm|title=Erin Brockovich worries about NC river pollution|last=Norfleet|first=Nicole|work=[[Business Week]]|date=2010-06-29|accessdate=2010-07-02}}</ref> Later in the day, the Yadkin Riverkeeper sponsored her appearance at [[Wake Forest University]].<ref>{{cite news|url=http://www.npaper-server.com/yes-weekly/2010/07/06/#?article=932122|title=Erin Brockovich lends celebrity profile to Alcoa controversy|last=Barber|first=Keith T.|work=Yes Weekly|date=2010-07-07|accessdate=2010-07-08}}</ref><ref name=Brockovich>{{cite news|url=http://www.salisburypost.com/News/063010-Erin-Brockovich-speech-qcd|title=Erin Brockovich speaks for Riverkeeper|last=Minn|first=Karissa|work=[[Salisbury Post]]|date=2010-06-30|accessdate=2010-07-08}}</ref>

Revision as of 18:35, 28 September 2011

Alcoa Power Generating, Inc. is a subsidiary of Alcoa, Inc., headquartered in Pittsburgh, Pennsylvania. Its three divisions were independent subsidiaries before being consolidated into Alcoa Power Generating, Inc. (APGI). These three projects produce hydroelectric power and manage impoundments which also provide flood control; recreation, residential and business opportunities; and wildlife habitat.[1]

Yadkin Project

The APGI Yadkin Project manages a 38-mile section of the Yadkin River, plus tributaries, in Piedmont North Carolina and includes four dams, powerhouses and reservoirs.[2] The counties of Davie, Davidson, Rowan, Stanly, and Montgomery border the Yadkin Project river and lakes. The dams owned and operated by APGI are the Narrows dam (completed in 1917), the Falls dam (completed in 1919), the High Rock dam (completed in 1927), and the Tuckertown dam (completed in 1962). The Narrows dam and powerhouse development is the only hydroelectric project listed on the National Register of Historic Places in North Carolina. The other three dam and powerhouse developments have been determined eligible for listing on the National Register.[3]

History

At the Narrows, the Yadkin River flowed through a deep gorge for three and a half miles within the Uwharrie Mountains. Its potential for industrial development had long been recognized. In 1887, E.B.C. Hambley, a mining expert from England, came to Salisbury, North Carolina. He gained the backing of Pittsburgh industrialist George I. Whitney. Between 1899 and 1901, Whitney organized eight subsidiary companies and employed Hambley as his chief engineer. About a mile upriver from the Narrows, the Whitney Development Company nearly completed the granite Whitney Dam and a five-mile long diversion canal, and began construction of a powerhouse at Palmer Mountain before the company declared bankruptcy in 1907 and all work ceased. The massive canal remains today, while the Whitney Dam lies beneath the waters of Badin Lake. They have been determined eligible to be listed on the National Register.[3]

In 1912, a French Company, L’Aluminium Français, acquired the assets of the Whitney Company. L'Aluminium Français decided against completing the Whitney project, and organized the Southern Aluminum Company to construct a 200-foot 61 m high dam and powerhouse at the Narrows to power an aluminum plant which it would also build. West of the proposed smelter, the worker’s village of Badin was planned and platted. The town was named in honor of the Southern Aluminum Company’s president, Adrien Badin. The project faltered a second time as most of the French engineers returned to France during World War I.[3]

In 1915, the Aluminum Company of America purchased the property. Plans once again were altered. The dam was redesigned and the new plans called for a brick powerhouse to be built on the east side of the river. The original powerhouse site on the west side of the river was abandoned and the partially completed building was dismantled to its concrete foundations. The original smelter site was also abandoned and a new smelter building was designed west of the Badin townsite. A devastating flood in 1916 caused damage and delays. When completed in 1917, the 185-foot (56 m) Narrows Dam was the world’s highest overflow type dam. The Narrows Reservoir, commonly called Badin Lake, reaches a depth of 190 feet (58 m) and occupies 5,350 acres (2,170 ha).[3]

High Rock Dam. There are three turbines housed within the power house, with a total capacity of 39.60 MW.

To generate additional hydroelectric power, in 1919, the company constructed Falls Dam downriver of Badin and High Rock Dam upriver in 1927. High Rock Lake, at 15,180 acres (6,140 ha), was the largest lake on the Yadkin at that time. In 1929, the company's name was changed to Alcoa. In 1962, Alcoa built the Tuckertown Dam between High Rock and Narrows Reservoirs.[3]

In August, 2002, Alcoa temporarily suspended aluminum production at the Badin Works, laying off 377 workers.[4] The electrode plant continued operating until 2007 when the plant shut down permanently.[5] The dams continue to generate 215 megawatts of electricity annually which the company sells.[6] During calendar years 2008, 2009, and 2010, the Yadkin Project generated an average of $7.73 million annually in net income, on an average of $29.46 million in annual revenues.[7]

Site redevelopment

In January 2011, Alcoa announced its commitment to spend $10 million to prepare the Badin Works site for redevelopment by demolishing buildings which would not be needed and making improvements to the facility.[8] On May 23, 2011, Electronic Recyclers International, a recycler of electronic items such as computers and cell phones, announced plans to spend $5 milion on a 165,000-square-foot (15,300 m2) building. APGI will also spend $5 million. 535,000 square feet (49,700 m2) of available space remains on the site.[9] Clear Tech Silicon and Bar LLC also wanted to invest $300 million and create up to 750 jobs. However, the company was hoping for help from Stanly County commissioners, who on September 6, 2011 declined a deal with APGI, which one commissioner said wanted the county to drop its opposition to relicensing (see below).[10] Stanly County manager Alan Lucas said after a closed session that county commissioners want to meet with APGI; Mike Belwood of APGI says the company wants to meet.[11]

Yadkin Project relicensing process

General information

A 50-year federal license to operate the dams on the Yadkin River was granted in 1958 to the Carolina Aluminum Company, a part of Alcoa, which owned the power plants and the land under the lakes, as well as significant land holdings around the lakes. The license was transferred from Yadkin, Inc. (an Alcoa subsidiary) to APGI in 2000.[12][13][14] In 2002, APGI began an extensive relicensing process[15] with four series of local public hearings held throughout the project area,[15][16][17][18] and 100 representatives of over 30 stakeholder groups from federal, state, and local governmental agencies, and non-governmental organizations participating in Issue Advisory Groups and a lengthy settlement negotiation process.[19] APGI commissioned 22 technical studies on the impact of the project in environmental, economic, recreation, and cultural areas.[20] On May 7, 2007, APGI submitted a Relicensing Settlement Agreement which contained many benefits to the project area, signed by 23 stakeholders, to the Federal Energy Regulatory Commission (FERC).[21]

In January 2007, the Stanly County Commissioners announced they would oppose APGI's relicensing because of Alcoa’s record of polluting, and because granting the license to another entity, which would use the hydro-electricity created by the Yadkin River to create jobs, would better serve the public interest.[citation needed] In 2008, North Carolina governor Mike Easley authorized a study of the effect of APGI's relicensing. APGI supported this study, whose findings have not been issued.[22]

In April 2008, FERC issued a Final Environmental Impact Statement (EIS) for the Yadkin Project, concluding that federal takeover would not be a reasonable alternative for the project, and noting that no federal agency had suggested that federal takeover would be appropriate, or had expressed an interest in operating the project.[23][24] Due to a stay on the water quality certificate, FERC has not made a final determination on the issuance of a license, and APGI has been operating under a temporary license.[25]

In April 2009, North Carolina Governor Beverly Perdue issued a statement opposing APGI's relicensing and supporting legislation to allow a to-be-created Yadkin River Trust to assume ownership of the Yadkin Project and its license.[26] With bipartisan support the N.C. Senate overwhelmingly passed legislation to establish the "public trust", but Alcoa supporters defeated the bill in the N.C. House.[citation needed]

A year later Republican Senator Fletcher Hartsell, again supporting establishing a "public trust" introduced a bill to create the Uwharrie Regional Commission. [citation needed]

In the final days of the 2010 legislative session, a documentary entitled "The Alcoa Story" produced by reporter Eszter Vajda of UNC-TV created a considerable stir.[27] However, before the program aired Ms. Vajda expressed concerns to legislators that, because criticiaing a powerful corporation like Alcoa would be controversial, executives at UNC-TV might refuse to air her documentary.[citation needed] A state Senate committee subpoenaed the unaired footage, setting off a debate on whether UNC-TV, as a state entity, was entitled to protections usually afforded the press. Journalists and UNC President Emeritus William Friday denounced the subpoena and UNC-TV's submission.[27] sparking a debate over whether UNC-TV (which is owned by state government) was subject to ‘public records’ laws or whether it had a special "journalistic exemption". In the end UNC-TV decided it was subject to public records law.[citation needed] Because of the controversy, UNC-TV aired the reports "without the usual editorial scrutiny" the week the State House voted on the Yadkin River Trust bill.[28] Journalists including a panel from UNC's own School of Journalism who reviewed the coverage found it biased and stated that "Any UNC journalism student producing this kind of 'story' would get a failing grade."[29] Documents released by UNC-TV revealed that a researcher working on the story accepted $3,000 from an Alcoa opponent.[30] By mid-August, Vajda had been fired from UNC-TV and all online footage had been removed.[31]

Celebrity activist Erin Brockovich, admitting “I haven’t really looked at the licensing issue,” spoke for supporters of the Yadkin River Trust at a news conference in Raleigh, North Carolina on June 29, 2010.[32][33] Later in the day, the Yadkin Riverkeeper sponsored her appearance at Wake Forest University.[34][35]

This has become highly contentious. In addition to the Relicensing Settlement Agreement signatories, APGI has gained the support, principally, of the N.C. Property Rights Coalition (which in June 2010 broadcast radio spots opposing government takeover of private land); Rick Miller, President of the National Hydropower Association[36] and a majority of local newspaper editorial boards.[37][38][39][40] According to a poll commissioned by APGI and done by McLaughlin & Associates, North Carolina's citizens are predominantly against the state taking over the project.[41] The County of Stanly is supported by Perdue and her Commerce Secretary (a former president of the Stanly-County-initiated N. C. Water Rights Coalition),[42] the Yadkin Riverkeeper, and a number of elected officials.[43]

401 Water Quality Certificate

The last remaining FERC requirement for a new Alcoa Yadkin Project license is a Section 401 water quality certificate, and recent opposition to Alcoa's relicensing has centered around it. In November 2007, the NC Division of Water Quality (DWQ) issued APGI a Section 401 water quality certificate for the Yadkin Project. The certificate was later withdrawn due to the failure of DWQ to publish a required public notice.[44] APGI reapplied for a water quality certificate, which DWQ issued on May 9, 2009.[45][46][47] In part, the certificate required APGI to make upgrades which would improve dissolved oxygen (DO) levels in the dam releases. Some upgrades have been made at the Narrows dam, although the complete upgrade program won't be completed until after the issuance of a license. The County of Stanly filed a legal appeal of the certificate and received a stay of its execution.[48] In October 2010, as hearings on the appeal took place, the state Department of Environment and Natural Resources reduced the amount of a surety bond required by the 401 water quality certificate from $240 million to $80 million, the amount APGI states will be required to make improvements required in the certificate.[49]

On December 2, 2010, Administrative Law Judge Fred Morrison Jr. suspended hearings after DWQ revoked the certificate on December 1.[50] State officials based their decision on portions of emails sent within the company questioning whether improvements would meet state dissolved oxygen requirements. On January 28, 2011, APGI released all internal documents and filed an appeal of the certificate revocation, stating “In its revocation notice, the DWQ quotes selected portions of e-mails that do not provide the complete story and were taken out of context. If you read the entire e-mail chains in context, and review the entire record, you find that no material information was withheld.”[51][52] Earlier in January APGI had released a study of dissolved oxygen levels leaving the Narrows and Falls reservoirs, where planned upgrades have been partially implemented. This report showed that, for the past three years, Falls tailwaters substantially met the state instantaneous dissolved oxygen standard over 99.5% of the time, and that in 2010 Narrows tailwaters met the state instantaneous DO standard 93.4 percent of the time.[53][54] APGI also announced in January 2011 the establishment of an environmental toll-free hotline managed by EthicsPoint.[55]

Alcoa’s claims were to no avail. The state stood by its revocation of Alcoa’s Water Quality Certificate.[citation needed]

In a separate legal case, on May 3, 2011, a federal appeals court in Washington, D.C. ruled against APGI, which argued the state's actions were improper.[56]

Tapoco Project

Main article: Tapoco

The Tapoco Project includes four dams in North Carolina and Tennessee, on the Little Tennessee and Cheoah Rivers. The dams supply power to Alcoa's operations in Alcoa, Tennessee.[57]

Around 1910, Aluminum Company of America began looking at locations to produce hydroelectric power for making alumium. The company purchased Knoxville Power Company, chartered in 1900. At the end of 1913, Aluminum Company of America bought Tallassee Power Company (chartered in 1905), Western Carolina Power and Transportation, Union Development Company, and Union Power and Water Company. All of these companies became part of Tallassee Power Company. From the first two letters of each word came the name Tapoco, given first to the community and then to the company.

World War I increased the need for aluminum, and Southern Railway completed a railroad extension to the planned Cheoah Dam in 1916. The Cheoah Dam began operation in 1919.

Construction of Santeetlah Dam began in 1926, with the Rhymer's Ferry powerhouse starting operation in 1928. Calderwood Dam was completed in 1930.[58] Chilhowee Dam was the last completed, in 1957.[59]

The company received its federal license to operate these dams in 1955 but was unable to renew in 2005 due to concerns over flooding in the Great Smoky Mountains National Park as a result of the Chilhowee Dam. The Tapoco Project and Licensing Act of 2004 corrected the problem by trading land, with 6,000 acres (24 km2) going to the park and about 10,000 acres (40 km2) of Alcoa land receiving a conservation easement.[60]

Long Sault Project

Pittsburgh Reduction company, which became Alcoa, started the Massena operation in 1902 because of significant capacity for hydroelectric power; it holds the record for longest continuous operation of an aluminum facility. Power comes from the New York Power Authority (NYPA). Alcoa's Long Sault Division owns and operates the five 115 kV transmission lines that connect NYPA to Hydro-Québec, which originally connected NYPA to the St. Lawrence Franklin D. Roosevelt project. Alcoa pays Cedar Rapids Transmission Company (part of Hydro-Québec) to operate two of the lines.[61][62]

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  46. ^ "Water Quality Certification with Additional Conditions, NC Department of Environment and Natural Resources, May 9, 2009" (PDF). Retrieved March 7, 2011.
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