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OTECC Opposes BPA’s Plan to Subsidize Aluminum Industry
Baker City, OR – November 3, 2008 – Oregon Trail Electric Consumers Cooperative (OTECC) issued comments in opposition to a Bonneville Power Administration (BPA) plan to provide inexpensive power to two aluminum plants in the Northwest. This plan would ultimately result in a rate increase to BPA customers like OTECC of 2-3 percent, or about $100 million for all BPA customers.
“The reality is that the BPA is attempting to subsidize an industry that is struggling right now and is looking for inexpensive power. Industries and individuals within the OTECC service territory are struggling as well though,” says Werner Buehler, OTECC General Manager.
OTECC’s official comments state, “Alcoa chose not to receive low cost, long-term BPA power from a “qualified” BPA utility, and instead chose to be served as a Direct Service Industry (DSI) to save money - a situation that was short sighted at best? Now that the economic dynamics have shifted and BPA no longer has surplus power, Alcoa is looking to BPA to provide them the same cheap power causing public utility customers to subsidize them. This subsidy amounts to about $145,000 per job for the 480 positions Alcoa will be obligated to maintain.”
With large employers in the OTECC service territory struggling to maintain economic viability and retain jobs, the question then becomes, “Does BPA value aluminum jobs more than other jobs, like those in the timber industry?”
“OTECC’s large power members, especially those associated with the timber industry, are among the regions largest employers. Congressman Walden even held a Timber Summit recently to bring the struggles to light, and now we have to deal with this,” explains Buehler. “Wouldn’t those wages be better served in our service territory with customers who have traditionally been a part of a qualified BPA utility?”
OTECC recently took proactive measures to help its large power members by reducing rates for that rate class by 7.5% effective November 1, 2008. BPA’s proposed actions could negate a significant portion of this rate decrease, and would likely result in a rate increase for all members.
Though OTECC submitted official comments, individuals and other organizations may comment as well. “We felt it was important for OTECC to make official comments in opposition to this misguided proposal, and we certainly encourage our members to submit comments of their own as well,” says Buehler.
Comments must be received at BPA by 5:00 pm Pacific Standard Time on November 10th, 2008. They can be posted on the web site at www.bpa.gov/applications/publiccomments/, emailed tocomment@bpa.gov, or faxed to (503) 230-3285. Please remember to reference “17-year agreement with Alcoa” as the subject of your comments, and include your name and address for a response.
One organization taking the lead in opposing this situation is People Power, of which OTECC is a member. People Power recommends the following:
Comments in your own words are best. Let BPA know how a rate increase would impact your home or business in these tough economic times. Talking points to consider when writing your comments to BPA include:
- It’s not right that billionaire corporations, like Alcoa, receive a subsidy on the backs of people and businesses, who are struggling to make ends meet in these tough economic times.
- This subsidy would cost Northwest residents and businesses as much as $100 million per year in power costs.
- The negative impacts to the region’s economy as a result of higher power rates for homes and businesses are even higher through business closures, job losses, and people losing their homes as a result.
- BPA has no legal obligation to serve the aluminum companies. It’s time to stop bailing out billionaire corporations that make windfall profits.
For additional information about the Oregon Trail Electric Consumers Cooperative and its grassroots effort “Power of Community” please visit www.otecc.com; for additional information about People Power, please visit www.pplpwr.org.
OTECC Opposes BPA’s Plan to Subsidize Aluminum Industry |
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OTECC Letter to BPA, reference "17-year Agreement with Alcoa" |
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