Governor Perdue says no to corporate control of Yadkin River

Alcoa Fails to Provide Job Guarantees, Blocks Clean Tech Deal
Governor Says No to Corporate Control of NC’s Yadkin River

Star, N.C. –
Alcoa, a multinational, out-of-state corporation, has been trying to obtain the rights to control the water of the Yadkin River without providing a proper return on its economic value to the citizens of North Carolina. Central Park NC applauds the Governor and the Stanly County Commissioners in their efforts to ensure that the Yadkin River will serve the state’s best economic and environmental interests for the next generations. A 50-year agreement would give Alcoa control of the water of the Yadkin River, an increasingly valuable natural resource for a rapidly growing area, without a long-term commitment to provide a sufficient number of jobs and enforceable guarantees to create those jobs. Therefore, negotiations were rightly terminated. “We salute Governor Perdue for fighting to insure meaningful job creation, protecting water rights and standing up for the state's best economic and environmental interests,” said Nancy Gottovi, Central Park NC Executive Director.

“Alcoa applied for a new 50-year license in 2007, but their application -- unlike their previous 1958 application -- makes no promise or even mention of jobs. It also does not address any cleanup of the former smelting site and surrounding area that is believed to have been a dumping ground over the decades for spent pot liners and carcinogenic pollutants. Because of this, Central Park NC did not support the application” Gottovi said.

Fifty years ago, Alcoa’s first license application was supported by the State of North Carolina because at the time, Alcoa argued that they needed the low cost hydro-electricity for their smelting operations in Stanly County and promised to provide 900 jobs for the length of the license. In fact, Alcoa only employed about half that number and began laying off 377 workers in the early 1990s. They finally closed the plant permanently in 2007. “They no longer have any need for the electricity other than to wholesale it to generate profits for their shareholders.” Gottovi said. “Alcoa never mentioned or promised any jobs, until they lost their 401 Clean Water Certificate. Without the water quality certificate issued by the State, the Federal Energy Regulatory Commission (FERC) cannot grant them a license. Gottovi said “So all of a sudden, Alcoa began dangling 250 jobs from Clean Tech, a company with a very questionable track record. It looks as though Alcoa promised Clean Tech they would invest twenty percent in Clean Tech, if the company would help them win support for a license for Alcoa.”

Central Park NC Board Chair, Dr. David Jones, stated “The area is seriously economically depressed and has little in the way of potential financial resources, except the river, to stimulate growth and job creation. Maximizing economic return to the region from this resource is vital to its future. Failure to maximize that return for the community would be a tragedy, most especially when we are talking about half a century. “

Central Park NC, the NC Department of Commerce, environmental groups, and Stanly County officials believe that the river can be used to generate thousands of new jobs and attract cleaner businesses to the state. The FERC application allows for “recapture” of the license by another entity and purchase of the dam projects for a set price agreed upon by Alcoa in its 1958 license agreement. “Many companies are committing to using more and more renewable energy, and are seeking out sources such as hydro and solar electricity providers. The demand for energy, particularly ‘green’ energy will only increase,” said Gottovi, “and the Yadkin River hydroelectric projects will be the source of immense economic development potential.”

“What Alcoa is offering to the community is a small fraction of what the resource is really worth, especially in the hands of those who know the region well and have a good handle on its needs”, noted Jones.

Jones went on to say “To allow a single entity that would only provide minimal advantages to the region this level of control of one of our largest natural resources for 50 years -- two to three human generations -- does not make sense in terms of the future needs and planning of the surrounding communities.”

About Central Park NC:
The mission of Central Park NC is to promote a new economy based on the sustainable use of the natural and cultural resources of the Central Park NC region, encompassing Anson, Davidson, Montgomery, Moore, Randolph, Richmond, Rowan, and Stanly counties. Central Park NC is a 501(c)(3) non-profit organization that was founded in 1993 by a consensus of leaders from the Yadkin and Pee Dee River basin region. For more information, visit http://www.centralparknc.org or call 910-428-9001.