ALCOA seeks deferral in payment due to PUD

Alcoa has asked Chelan County PUD for a one-year deferral on a potential $67 million bill that could come due in June.  The deferral would allow Alcoa more time to determine whether it can reopen it's Wenatchee Works aluminum smelter.

The agreement would include a $7.3 million payment in June that would keep Chelan PUD financially neutral.

PUD staff recommended the deferment option to PUD Commissioners in part, because enforcement of the original agreement would make it less likely the plant would reopen.

In recent months, global aluminum prices have increased from when the plant's operation was curtailed in December 2015, creating hope that the plant might restart production.  More than 400 people were employed at the plant when it was curtailed.

“Decisions have not been made regarding a potential restart of Wenatchee Works at this time," Michael Padgett, Alcoa Vice President, Energy said.  "“However, we appreciate the Chelan Public Utility District’s consideration in working with us on a plan that would preserve the restart option.”

The PUD is seeking public input on the proposal and a public meeting will be held Tuesday, April 25th.

"We want employment and low electric rates throughout our community,” said General Manager Steve Wright.  “The proposed amendment preserves the original contract goals of encouraging family wage jobs and providing value to PUD customer-owners by allowing Alcoa to ‘buy time’ to further consider restart."