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

button coupons
button classifieds

In Other News...

Injury Accident Sends Two to Hospital

MCCRACKEN COUNTY, Ky. (12/18/14) — According to a McCracken County Sheriff's report, on Dec. 18, 2014 at approximately… Read More

Surveillance Captures Couple Suspected of Theft

PADUCAH, Ky. (12/18/14) — According to a Paducah Police Department report, the PPD has received surveillance… Read More

Most Read This Week

December 16, 2014 9630

Coal Miner Fatally Injured in Underground Mining…

in Top News For All Sites by Dick Brown
December 14, 2014 8591

Muhlenberg Pays Homage to U.S. Armed Forces

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
December 17, 2014 6546

Elderly Couple Found Shot to Death in Muhlenberg

in Local (Muhlenberg) Top News by Trooper Stu Recke
December 17, 2014 6300

Three Men Charged with Burglary

in Local (Hopkins) Top News by Madisonville Police Department
December 15, 2014 4823

Hopkins County Woman Charged Second Time in Two…

in Local (Hopkins) Top News by Charles W. Riley II, SurfKY News
December 15, 2014 4307

Woman Leads Police on High-Speed Chase in Stolen…

in Local (Hopkins) Top News by Madisonville Police
December 15, 2014 3302

Vehicle Careens down 150 Foot Embankment with…

in Local (Hopkins) Top News by Madisonville Police Department
December 16, 2014 3050

Highway Crews Pre-Treating Roadways for Potential…

in Hopkins News by Keith Todd
December 16, 2014 3021

Madisonville Police Arrest Reports - Dec. 16, 2014

in Hopkins News by Madisonville Police Department
December 18, 2014 2946

Cat Scratching over Dog Ownership Escalates

in Local (Hopkins) Top News by Amber Averitt, SurfKY News

Stories Trending Today

December 18, 2014 2946

Cat Scratching over Dog Ownership Escalates

in Local (Hopkins) Top News by Amber Averitt, SurfKY News
December 18, 2014 1366

Hopkins County Sheriff's Reports Released

in Hopkins News by Sheila Hopper
December 18, 2014 1341

UK Track and Field Announces Initial Eight…

in General Sports For All Sites by UK Athletics
December 18, 2014 1308

DeArmond Looks Back as Retirement Nears

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
December 18, 2014 1257

Madisonville Police Arrest Reports - Dec. 18, 2014

in Hopkins News by Madisonville Police Department
December 18, 2014 1221

Madisonville Insurance Executive Elected Vice…

in Local (Hopkins) Top News by Kristy Quinn
December 18, 2014 1135

Traffic Shift for New I-69/Pennyrile Pkwy…

in Local (Hopkins) Top News by Keith Todd
December 18, 2014 946

City of Earlington Holiday Schedule

in Hopkins News by Julia A. Sellers
December 18, 2014 946

Kentucky's Jobless Rate Drops to 6 Percent in…

in General News For All Sites by Kim Brannock
December 18, 2014 809

Kentucky Lottery Results for Wednesday Dec. 17,…

in General News For All Sites by Kentucky Lottery

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 © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss