Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Fayette | Henderson | Lakes | McCracken | Warren | Webster
Davis Motor Sales banner ad

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 2014 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.

Most Read This Week (Site-Wide)

August 22, 2014 5701

Two Busted for Meth in Central City

in Top Stories by Martha Clark
August 25, 2014 4013

14-Year-Old Suffers Gunshot Wound; Air…

in Top Stories by Ami Clayton, SurfKY News
August 25, 2014 3141

Flooded Central City Church's Seven Day…

in Top Stories by Paul McRee, SurfKY News
August 25, 2014 2689

Camper Stolen in Utica Recovered in…

in Top Stories by Martha Clark
August 25, 2014 2262

Daviess County Health Department…

in News by Dennis Beard, SurfKY News

Most Read Stories from Hopkins County

August 25, 2014 4013

14-Year-Old Suffers Gunshot Wound; Air…

in Top Stories by Ami Clayton, SurfKY News
August 24, 2014 2189

Two Injured in Two-Vehicle Collision…

in Top Stories by Officer Jeff Miller
August 25, 2014 2120

Two Injured in Two-Vehicle Collision Near…

in Top Stories by Trooper Stu Recke
August 25, 2014 2106

Former Co-Workers Trying to Raise Money…

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 26, 2014 1418

Two People Injured When Vehicle Overturns…

in Top Stories by Matt Sanderson

Most Read Stories from Owensboro

August 25, 2014 2262

Daviess County Health Department…

in News by Dennis Beard, SurfKY News
August 25, 2014 2133

44th Mount Saint Joseph Picnic is Sunday,…

in News by Jennifer Kaminski
August 25, 2014 2110

GRADD Seeking Ombudsman Program Volunteers

in News by Woody Maglinger
August 26, 2014 1169

Owensboro Board of Commissioners…

in News by Beth Cecil
August 26, 2014 856

City Street Closures on Strawbridge and…

in News by Abby Shelton

Most Read Stories from Muhlenberg County

August 22, 2014 5701

Two Busted for Meth in Central City

in Top Stories by Martha Clark
August 25, 2014 3141

Flooded Central City Church's Seven Day…

in Top Stories by Paul McRee, SurfKY News
August 25, 2014 2689

Camper Stolen in Utica Recovered in…

in Top Stories by Martha Clark
August 25, 2014 1752

Mustangs Marching Classic

in Top Stories by Charles W. Riley II, SurfKY News
August 25, 2014 1684

Job Corp Celebrates 50th Anniversary

in Top Stories by Charles W. Riley II, SurfKY News

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social 03social 04social 22social 21social 06