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
button coupons
2/6/2014 - posted
2/6/2014 - posted
button classifieds

In Other News...

MPD Receives Grant for Drug Collection Unit

MADISONVILLE, Ky. (11/21/14) — The Madisonville Police Department announced today that it has been awarded a grant from… Read More

WES to Host 'Leadership Day'

DAVIESS COUNTY, Ky. (11/20/14) — Whitesville Elementary School is hosting a special “Leadership Day” to spotlight… Read More
2/6/2014 - posted

Most Read This Week

November 18, 2014 4936

Couple Charged for Concealing Food in Infant Car…

in Local (Hopkins) Top News by Madisonville Police Department
November 17, 2014 4478

Police Charge Woman for Drug Possession After…

in Local (Hopkins) Top News by Madisonville Police Department
November 15, 2014 3210

Faces & Stories: Hopkins County Tornado

in Video by Gary Gates, SurfKY News
November 17, 2014 2993

Bremen Woman Ejected From Vehicle During Kentucky…

in Local (Muhlenberg) Top News by Trooper S.C. Recke
November 19, 2014 2937

Three Injured in Two-Vehicle Collision on South…

in Local (Hopkins) Top News by Gwen Smith
November 15, 2014 2868

18-Year-Old Injured When Pickup Strikes Railroad…

in Local (Hopkins) Top News by Patrolman Falon Graham
November 15, 2014 2698

PSC Approves Energy Efficiency Programs for…

in General News For All Sites by Rita Dukes Smith, SurfKY News Director
November 19, 2014 2689

Two Killed When Vehicle Becomes Airborne, Strikes…

in Local (Owensboro) Top News by Daviess County Sheriff's Office
November 21, 2014 2378

Man Accused of Assaulting Coach During Basketball…

in Local (Muhlenberg) Top News by Rita Dukes Smith, SurfKY News Director
November 18, 2014 2272

Area Talent to Film Music Video at Merle Travis…

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

Stories Trending Today

November 21, 2014 2378

Man Accused of Assaulting Coach During Basketball…

in Local (Muhlenberg) Top News by Rita Dukes Smith, SurfKY News Director
November 20, 2014 1710

Man on Bicycle Struck by Vehicle on South Main

in Local (Hopkins) Top News by Officer Jeff Miller
November 20, 2014 1551

Local Church Prepares for 'Return to Bethlehem'

in Video by Gary Gates, SurfKY News
November 20, 2014 1467

Commercial Truck Accident Closes Northbound Lanes…

in Local (Hopkins) Top News by Chris Rogers
November 20, 2014 1327

Madisonville Police Arrest Reports - Nov. 20, 2014

in Hopkins News by Madisonville Police Department
November 20, 2014 1321

Man Accused of Kicking in Resident's Door,…

in Local (Hopkins) Top News by Patrolman Russell Nichols
November 21, 2014 1198

Crashing Dump Trucks in Work Zone Cause Pennyrile…

in Top News For All Sites Touching Hopkins by Trooper Stu Recke
November 20, 2014 1173

Christmas Parades Set for Central City and…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
November 20, 2014 1156

Muhlenberg County Educator Selected for Induction…

in Local (Muhlenberg) Top News by WKU News
November 20, 2014 932

Evansville Man Charged with Forged Prescription…

in Local (Hopkins) Top News by Patrolman Russell Nichols

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