Alcoa Signs Ten-Year Power Contract for Intalco Works

December 7, 2012

NEW YORK & FERNDALE, Wash.–(BUSINESS WIRE)–Alcoa (NYSE:AA) today announced that it has signed a long-term power contract with Bonneville Power Administration (BPA) for its Intalco Works aluminum smelter in Ferndale, Washington. The contract, which runs through September 2022, ensures power supply for the smelter and helps sustain the economic impact the plant brings to the region.

The contract was signed today at a ceremony held at Intalco. Employees and community leaders were joined by dignitaries and elected officials to commemorate the occasion including U.S. Senator Patty Murray, Congressman Rick Larsen, Governor Chris Gregoire and BPA Administrator Steve Wright.

“Solidifying Intalco’s long-term power security is a major accomplishment that not only helps protect jobs, but helps sustain manufacturing and its economic impact in Washington State,” said U.S. Primary Products President Bob Wilt. “We owe tremendous gratitude to the leaders and supporters who have carried this mission forward, including our employees, elected officials, BPA and the community. We especially want to thank BPA Administrator Steve Wright for his focus and dedication to reaching this agreement.”

“This agreement provides benefits for BPA power customers in the form of lower rates in the near term and increased long term rate stability,” said Steve Wright, BPA administrator and chief executive officer. “It also provides operating flexibility to help deal with intermittent resources like wind while also moving a step closer to resolving longstanding litigation over benefits BPA provides to residential and small farm customers of investor-owned utilities.”

The contract with BPA provides 300 Mw of power to Intalco at the Industrial Power (IP) rate.

“This is fantastic news for Washington State and the Intalco community in Ferndale,” said Senator Patty Murray. “Today’s signing of this long-term contract shows what can happen when government and industry come together to create jobs and help families across our state.”

Intalco Works started operations in 1966 and has capacity of 279,000 metric tons per year. Along with 640 family wage jobs created at Intalco, the operation supports approximately $118 million in personal income in Whatcom County, $5 million in local taxes, $240,000 in annual charitable contributions and thousands of hours volunteered each year by Alcoa employees.

“Today’s contract signing marks the culmination of years of hard work by many at BPA and Alcoa while securing a bright future for Alcoa Intalco,” said U.S. Senator Maria Cantwell (D-WA). “I am proud to have been a part of this critical effort for more than a decade. This contract means the preservation of hundreds of family-wage jobs and substantial investment in improvements at Alcoa’s Ferndale plant. And it ensures Alcoa will remain a critical contributor to the local economy for many years to come.”

“The commitment signed today is very welcome news to the people of Ferndale and all Washingtonians,” said Governor Chris Gregoire. “It will help our Washington families, create jobs in our growing energy economy and is the promise of energy cooperation for many years to come.”

About Alcoa

Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum and alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for eleven consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 61,000 people in 31 countries across the world. More information can be found at

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