Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster

Century Aluminum to Buy Alcan’s Sebree Smelter Rate Increase Still Expected

century aluminum 300WEBSTER COUNTY, Ky. (5/3/13) - After nearly three months of debates, which went from the board room to the state capital, the nearly 2,000 employees of three western Kentucky companies can breathe a little easier after the announcement that Century Aluminum plans to purchase Rio Tinto Alcan’s Sebree Works Smelter.

The first quarter of 2013 has been tense, as Kenergy Customers and employees of Big Rivers, Rio Tinto Alcan’s Sebree Smelter and Century Aluminum’s Hawesville Smelter waited to see what would come of the battle being fought over utility rates.

Rio Tinto Alcan’s Sebree Works Aluminum Smelter gave notice to Big Rivers Electric and Kenergy on Friday February 1, 2013 that they would be ending their power contract in 12 months, following the lead of Century Aluminum of Hawesville who filed similar paperwork in August. The notice from Alcan came as Big Rivers Electric Corp. was seeking a rate increase citing the impending loss of Century.

Rio Tinto, a UK based mining and processing company, says that after a review of their 2011 aluminum assets, it was concluded that the Sebree Smelter no longer fit with their long-term strategy. The rate increase caused by the expected loss of Century likely sped up the announcement.

The two aluminum smelters are the biggest customers of Kenergy, who in turn purchases their power from Big Rivers. The smelters provide as much as 70% of Kenergy’s annual income.

In a joint press release from Big Rivers, Kenergy and Century, it was announced Monday morning that Alcan had signed an Asset Sale Agreement with Montery, California based Century Aluminum. Century will pay $61 million dollars for the Sebree based facility, and assume ownership of an addition $4 million dollars in liabilities.

Sebree Works produced 205,000 tonnes of primary aluminum in 2012. The facility is estimated to support 1,800 jobs both directly and indirectly in the region, and contributes about $200 million a year to Kentucky through taxes, salaries and procurements.

With the purchase of the Sebree Works Smelter, Century Aluminum seems to be making a statement that they are planning on remaining in Western Kentucky.

“After months of negotiations, both parties have come to a framework for an agreement that will allow Century Aluminum to access market power,” said Marty Littrel, Director of Communications and Community Relations for Big Rivers Electric Corporation. “There is still a lot of work and specifics to be accomplished over the coming weeks as many approvals from various parties will be required.”

Once the agreement is in place, it still does not negate the need for an increase in wholesale electric rates.

“This arrangement is intended to have no impact to Big Rivers’ current rate proposal,” said Littrel. “All along, our main objective has been to help Century remain open but make sure our customers would not experience an even higher rate increase if Century remained open and bought power from the market.”

Matt Hughes
J-E News Editor

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

button coupons
button classifieds

In Other News...

Two Die, Two Injured in Two-Vehicle Accident

DAVIESS COUNTY, Ky. (1/25/15) ― Two people are dead and two others injured after a two-vehicle collision last night on… Read More

March 20-22 Women's Retreat: 'Holiness in Family Life'

OWENSBORO, Ky. (1/25/15) — "Holiness in Family Life: Lessons from Saint Monica and Elisabeth Leseur" will be the focus… Read More

Most Read This Week

January 19, 2015 8697

Two-Year-Old Child Dies after Being Struck by…

in Top News For All Sites by Paul Ray
January 19, 2015 8586

UPDATE - Lady Mustangs Fall to South Warren

in Local (Muhlenberg) Top News by Steve LeMaster
January 23, 2015 6834

Local Church's Faith Restored; 71 Souls Saved…

in Top News For All Sites by Gary Gates, SurfKY News
January 22, 2015 6713

Nortonville Man Accused of Selling Drugs near…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Jail
January 19, 2015 6705

Muhlenberg Board of Education Special Called…

in Local (Muhlenberg) Top News by Sherri Miller
January 20, 2015 6422

Bridal, Prom, Pageant Expo Planned for February…

in Hopkins News by Dana Brown
January 23, 2015 5233

Parents Face Charges after Marijuana Joint Falls…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Jail
January 21, 2015 5052

KYDOT Pre-Treating Roads Thursday in Antipation…

in Top News For All Sites by Keith Todd
January 21, 2015 4634

Man Arrested after Allegedly Nodding off on Baby…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Jail
January 22, 2015 4461

MCEA Head: Further School Mergers Might Ease…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News

Stories Trending Today

January 23, 2015 1535

School Board Hears Public Comments Regarding…

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
January 24, 2015 1213

Five Injured in Two-Vehicle Collision

in Local (Muhlenberg) Top News by Chris E. King
January 24, 2015 1078

Happenings, Meetings Listed for Hopkins County

in Hopkins News by Amber Averitt, SurfKY News
January 24, 2015 989

Spelling Bee Contest Winners Announced

in Local (Hopkins) Top News by Joyce Riggs
January 24, 2015 893

Kentucky 2014 Highway Fatality Figures Released

in General News For All Sites by Keith Todd
January 24, 2015 843

PSC Bars $54 Million in Kentucky Power Fuel Cost…

in General News For All Sites by Andrew Melnykovych
January 24, 2015 819

Keeping the Faith - 'What It's Good For'

in General News For All Sites by Ronnie McBrayer
January 24, 2015 774

Burrough: Tech Center Construction on Schedule

in Local (Hopkins) Top News by Tammy Holloway, SurfKY News
January 24, 2015 747

Busting the Myths of Leadership

in General News For All Sites by David Taylor
January 24, 2015 729

Hooked on Science - Feather Balance

in General News For All Sites by Jason Lindsey

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2015 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flr subscribevideoitunessocial rss