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.

Posted on 2/2/14
2/6/2014 - posted
2/6/2014 - posted
2/6/2014 - posted

In Other News...

Second Reading on City Council Election Ordinance Tabled

MADISONVILLE, Ky. (10/20/14) ― About an hour and 45 minutes into the Madisonville City Council meeting, second reading… Read More

Castlen Welding & Manufacturing LLC to Expand in Owensboro

FRANKFORT, Ky. (10/21/14) — Governor Steve Beshear today announced that Castlen Welding & Manufacturing LLC plans to… Read More
2/6/2014 - posted

Most Read This Week

October 17, 2014 11517

UK Women's Soccer Welcomes Ole Miss, No. 5/4…

in General Sports For All Sites by UK Athletics
October 20, 2014 4190

Uncle Lee's in Greenville is Closing Its Doors…

in Local (Muhlenberg) Top News by www.unclelees.com
October 15, 2014 3575

Family Business, Graphics Pros to Open Friday

in Top News For All Sites by Shawn Freels
October 15, 2014 3427

Chamber Meeting and More Announced

in Local (Muhlenberg) Top News by Dorothy Walker
October 17, 2014 3325

Single Vehicle Collision Results in One Injury

in Local (Muhlenberg) Top News by Trooper S. C. Recke
October 15, 2014 3226

Madisonville Police Arrest Reports - Oct. 15, 2014

in Hopkins News by Madisonville Police Department
October 19, 2014 3181

Kentucky Energy Department Releases Virtual Solar…

in General News For All Sites by Dick Brown
October 15, 2014 2884

Woman Arrested for Domestic Dispute in the Street

in Local (Hopkins) Top News by Madisonville Police Department
October 17, 2014 2645

Woman Arrested at Taco Bell for DUI

in Local (Hopkins) Top News by Madisonville Police Department
October 16, 2014 2546

Madisonville Police Arrest Reports - Oct. 16, 2014

in Hopkins News by Madisonville Police Department

Stories Trending Today

October 20, 2014 4190

Uncle Lee's in Greenville is Closing Its Doors…

in Local (Muhlenberg) Top News by www.unclelees.com
October 20, 2014 2323

Man Charged for Assaulting Pregnant Wife

in Local (Hopkins) Top News by Madisonville Police Department
October 20, 2014 1674

Man Arrested for Shoplifting, Assaulting Police…

in Local (Hopkins) Top News by Madisonville Police Department
October 20, 2014 1373

Hopkins County Sheriff's Arrest Reports Released

in Hopkins News by Sheila Hopper
October 20, 2014 1290

Madisonville Police Arrest Reports - Oct. 20, 2014

in Hopkins News by Madisonville Police Department
October 20, 2014 1266

Paul Simon Headlines COPD Tribute for Phil Everly

in Top News For All Sites by Paul McRee, SurfKY News
October 20, 2014 1265

Muhlenberg Community Hospital Prepares for…

in Local (Muhlenberg) Top News by Erin Warren
October 20, 2014 1154

KU and LG&E to Fund Qualified Tree-Planting…

in General News For All Sites by Cliff Feltham
October 21, 2014 1150

Pedestrian Struck by Vehicle on Shamrock Drive

in Local (Hopkins) Top News by Officer C.P. Haynie
October 20, 2014 1045

Fall Frolic at Nature Station

in Lakes News by Land Between The Lakes

SurfKY News Group, Inc.
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