N.C. House Committee Gives Favorable Report To Yadkin River Trust Bill

State House Committee Votes In Favor Of Giving North Carolinians Their Water Rights For The Yadkin Hydroelectric Project

[USPRwire, Sun Aug 09 2009] The Stanly County Board of Commissioners has expressed its approval that members of the N.C. House Water Resources and Infrastructure Committee voted 8-7 on August 5, 2009 to create a Yadkin River Trust to develop, sell and distribute hydroelectric power generated by the Yadkin Hydroelectric Project for the benefit of the people of North Carolina rather than continue the monopoly held by Alcoa on the Project, which includes four dams and powerhouses along a 38-mile stretch of the Yadkin River at High Rock, Tuckertown, Narrows and Falls Reservoirs in Davie, Davidson, Rowan, Montgomery and Stanly counties. With the N.C. Senate having overwhelmingly approved the bill by a vote of 44-4 on May 6, 2009 the bill appears likely to win approval from the state House as well.

Legislators who voted for the bill cited Alcoa's failure to maintain the jobs that were a condition of it's 1958 license, its exemption from being regulated by the N.C. Utilities Commission (it can thus sell the hydroelectricity generated by its dams wherever it wants at whatever cost it can obtain), and its ability to sell its license for profit to any entity, even foreign firms, and the terms of that license would remain in effect without FERC review for the duration of the 50 years it was issued.

The bill sponsor, Senator Fletcher Hartsell, voiced concerns about Alcoa's environmental track record with the Project. He cited reports which found "significant contamination" including PCBs at the Alcoa site on Badin Lake, which is part of the Project that flows into the Yadkin River via Narrows Dam in Stanly County.

Senator Hartsell also cited a legal filing by Alcoa challenging a Fish Consumption Advisory stating that pregnant women, women who may become pregnant, and children under 15 should avoid eating catfish and largemouth bass from Badin Lake due to high levels of mercury and PCBs. That advisory was another example that bothered some legislators about Alcoa's genuine commitment to being a good steward of the Project.

The Trust will honor aspects of the Relicensing Settlement Agreement (RSA) negotiated by local government and environmental groups in 2008, including water for the City of Albemarle, a comprehensive drought management plan (the "Low Inflow Protocol"), water quality improvements for the Yadkin, and new and expanded public recreation facilities. However, the Trust will provide more benefits to North Carolina state residents than Alcoa, including:

- An assurance that the water of the Yadkin, which the public owns, will be valued for the benefit of all North Carolinians rather than exploited for profit.

- Priority consideration to local needs, with the intent of restoring and improving environmental, public health, economic and job considerations.

- Power generated from the Project will be used for the benefit of the citizens of North Carolina, not a multinational company answerable to no one in North Carolina.

The bill also establishes a Board of Directors of seven members appointed by the Governor and confirmed by the General Assembly to oversee the Yadkin River Trust and carry out its goals and activities.

If both the Yadkin River Trust is approved and the FERC agrees to recommend to Congress recapture of the Project's license for subsequent transfer to the State of North Carolina, Alcoa would be entitled to be reimbursed for its "net investment," not to exceed "fair value" plus any "severance damages" if the federal government requires the license to be returned. (The federal government alone has right to recapture the Project upon payment of net investment and severance damages to Alcoa. Congress can simultaneously provide in its law that the FERC be required to issue a license to the State of North Carolina, subject to payment of such net investment to the U.S. government.) The "net investment" for the Yadkin Project is $24.16 million, according to Alcoa's license application filed with the FERC in April 2006. That means that Alcoa would be entitled to $24.16 million plus severance damages, which refer to only that portion of the project facilities that are rendered useless by the recapture. As the Project generates tens of millions of profits annually for Alcoa, the Trust would not cost taxpayers money.

The FERC's hearing on a decision on Alcoa's license has not been announced at this point. Gov. Bev Perdue has asked and received the chance to present the state's case against Alcoa before the FERC makes a final ruling on the relicensing.

Quotes:
"On behalf of my board, I want to thank our state representatives who voted for this bold measure to recapture our state's water rights for the Yadkin River," said Stanly County Commissioner Lindsey Dunevant. "Once again, we had support of a majority of Republicans and Democrats on the committee, showing that the issue has bipartisan appeal. They understand the huge positive improvement the Yadkin River Trust will provide the state economically and environmentally."

Related Links:
www.co.stanly.nc.us
www.ncwaterrights.org
www.yadkinriverkeeper.org
www.mmimarketing.com/podcast/North+Carolina+Water+Policy www.mmimarketing.com/podcast/North+Carolina+Water+Policy+part+II
http://bit.ly/19adce (Alcoa Pollution Worldwide - Google Map)

About This Effort:
In 1958, Alcoa, the world's leading producer of primary aluminum, secured a federal hydroelectric license for the Yadkin Project on the Yadkin River in Stanly, Davidson, Montgomery and Rowan Counties in the Central Piedmont. In return, Alcoa promised aluminum manufacturing jobs for Stanly County for years to come. Alcoa has now essentially disappeared as a major employer in the region and shut down its manufacturing plants, but it wants to continue reaping the benefits of the Yadkin River after its license expires in April of this year. In addition, Alcoa discharged hazardous pollutants into North Carolina air and waterways for decades while harvesting immense profits from the Yadkin River, but has yet to finish cleaning up that contamination. It has filed an application with the Federal Energy Regulatory Commission (FERC) to obtain another 50-year license. If Alcoa is successful, one of North Carolina's most valuable water resources will be used to maximize Alcoa's profits, instead of being used to benefit the people of North Carolina, who themselves are in dire need of affordable electricity, local economic development, and clean, adequate drinking water.

Ryal Curtis
MMI Associates, Inc.
(919) 233-6600
ryal@mmimarketing.com