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

e-max.it: your social media marketing partner

LIKE SurfKY on Facebook - Click here to LIKE us now.

© 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 on social media.

In Other News...

Neighborhood Alliance Program Meetings - August 2015

OWENSBORO, Ky. (8/3/15) — The following is a list of the City of Owensboro Neighborhood Alliance Program August 2015… Read More
1 DOW 17,562.09
-127.77 (-0.72%)    
2 S&P 2,094.84
-9.00 (-0.43%)    
3 NASDAQ 5,107.58
-20.70 (-0.40%)    

Most Read This Week

July 30, 2015 3795

Webster Man Leads Police on Chase through Parts…

by SurfKY News
July 31, 2015 3732

Miss Hopkins County Fair 2015 Chosen

by Tammy Holloway, SurfKY News
July 28, 2015 2833

Hanson, Owensboro, Bowling Green Youths Win at…

by Tammy Holloway, SurfKY News
August 01, 2015 2526

24th Annual Miss Teen Hopkins County Fair Pageant…

by Tammy Holloway, SurfKY News
July 29, 2015 2444

Crime Stoppers Top Most Wanted - July 29, 2015

by SurfKY News

Most Read This Month

July 17, 2015 16664

Muhlenberg Most Wanted - Top 10

by SurfKY News
July 23, 2015 15638

UPDATE: Family Confirms Body of Missing Teen…

by Shawn Freels, SurfKY News

Stories Trending Now

August 02, 2015 1631

Poole Wins Hopkins County Fair Talent Show

by Tammy Holloway, SurfKY News
August 02, 2015 1158

Community Helps ‘Cram the Hummer’ for School…

by Tammy Holloway, SurfKY News
August 02, 2015 1139

Tiniest Division of Hopkins County Fair Pageants…

by Tammy Holloway, SurfKY News
August 03, 2015 1031

Two Injured in Motorcycle Accident

by SurfKY News
August 03, 2015 879

Man Accused of Using Craig's List to Encourage…

by SurfKY News
August 02, 2015 859

Spinal Cord Injury Patient's Foundation Sponsors…

by SurfKY News
August 02, 2015 577

Legislator's Log - Week of Aug. 2, 2015

by SurfKY News
August 02, 2015 572

'The Free' Gets Greenville Crowd Groovin'

by Mike Groves, SurfKY News
August 02, 2015 482

MCCH Celebrates World Breastfeeding Week

by SurfKY News
August 02, 2015 473

Dave Says - Aug. 2, 2015

by SurfKY News