20070812 Ver 2_Opposition is on the rise for Alcoa_20090422

Dorney, John
From: Ellis, H. Gene [Gene. [e-mail]]
Sent: Wednesday, April 22, 2009 8:23 PM
Subject: Lexington Dispatch Editorial: Opposition is on the rise for new license for Alcoa
Opposition is on the rise for new license for Alcoa
Published: Wednesday, April 22, 2009 at 8:21 a.m.
Last Modified: Wednesday, April 22, 2009 at 8:21 a.m.
Alcoa seems to be swimming upstream in its efforts to gain another 50-year license for its
hydroelectric project on the Yadkin River. Last week, a state Senate committee voted
unanimously in favor of a bill that would allow North Carolina to take over the four dams and
manage them and the water along that 40-mile stretch of the river. Monday came news that the
Federal Energy Regulatory Commission, which will decide whether Alcoa receives a new license,
has allowed North Carolina a late intervention into the renewal process, a step opposed by
the company.
More bad news could come Wednesday, when another Senate committee, finance, votes on the
takeover bill. And a May 7 deadline looms for the state Division of Water Quality to make a
decision on whether to grant Alcoa a water quality certificate. This is the last step before
FERC could issue a permit. Alcoa officials now worry political factors could influence the
DWQ's decision; they want a decision based on the application's merits.
Big business can often become an easy target for the general public, and during a recession
that anger becomes ratcheted up a notch.
Billion-dollar bailouts further exacerbate the feeling, especially when employees of the
companies still received huge bonuses. While that's not the case with Alcoa, clearly some
individuals, groups and governments oppose the company. Their motives may vary, but their
actions muddy the waters of the relicensing process. Alcoa can claim support from 23
organizations that signed a Relicensing Settlement Agreement; Davidson County did not, but
the High Rock Lake Association and High Rock Business Owners Group did.
The distrust of Alcoa may go all the way back to the drought of 2002, when large swaths of
land normally under water became dry. Steps taken since then have allowed Alcoa to keep water
levels higher in subsequent droughts, but the public relations damage lingers. Fears of
another entity taking control of the dams and controlling water in the state also come into
play, no matter how illogical they may be.
Now Alcoa and its opponents have engaged the services of public relations firms to make their
cases to the public and legislators. Both sides claim the other is making false statements.
Clearly, a lot of money potentially could be at stake should the state continue to pursue
taking over the dams.
Legislators need to pause and think carefully about the path they're heading down. If they
take over this private business, what's to keep them from doing it to others? And should they
do that and then allow another business to operate it, then that would be a particularly
troubling development. Certainly reasonable safeguards that ensure water access are
justified, but the license already covers that ground.
Another important fact is to make sure legislators use accurate numbers about profits and
costs. Again, both sides question whether the other is using the right figures.
Finally, politics shouldn't come into play on the water quality permit.
That decision should be based on the technical aspects alone. If legislators truly want to
take over the project, they can attempt to do that through legislation. State regulatory
bodies should remain free of political pressure to issue a certain decision.