Alcoa has reached a tentative agreement on a long-term power contract with Bonneville Power Administration for the Italco Works aluminum smelter in Ferndale, according to an Oct. 9 company announcement.
The proposed contract, which would run through September 2022, would ensure the smelter remains supplied with power. Alcoa officials said a 90-day extension to the smelter’s current contract would be in place while a public comment process on the new contract is conducted, followed by a BPA review.
In recent years, Alcoa executives have warned that the Fernale facility could be shuttered if a new power agreement could not be reached.
“We are pleased to be one step closer to long-term power security for Intalco Works, an important manufacturing operation in the northwest United States,” said Bob Wilt, Alcoa’s president for U.S. primary products, in a press release. “We want to thank our employees, elected officials and BPA for helping us get to this point in the process.”
The contract is expected to be finalized by December.
Intalco Works started operations in 1966 and is currently runs 576 smelting pots. The smelter employs more than 600 people.