Alcoa Idles Ferndale Smelter as a Result of Agreements with BPA

Alcoa Inc., Pittsburgh, PA., is idling its Ferndale, Wash. aluminum smelter as a result of agreements with the Bonneville Power Administration (BPA). The planned 2001 operating rate at Intalco had been 115,000 metric tons per year (mtpy); total capacity is 270,000 mtpy. There are no immediate layoffs among the 900 employees there. As part of the agreement with BPA, power contracted for the smelter between now and October 2001 will be sold back to the agency to meet regional demands for electricity. In addition, Alcoa will return to the BPA approximately 90% of its electricity allocation for the period October 1, 2001 through September 30, 2003. In return, Alcoa will receive revenue to compensate a majority of its employees at Intalco for their wages and benefits. The remainder of Alcoa±s electricity allocation will be used at the company±s magnesium production facility in Addy, WA, and for lighting, maintenance and security purposes at Intalco.