After contentious debate and legal maneuvers, hearings over whether or not Alcoa (NYSE:AA) will be able to renew a 50-year license to operate dams on the Yadkin river have begun today.
The issue is over a water permit issued to Alcoa by the state of North Carolina, which was opposed by some state officials and others.
Before the federal government would consider whether or not to renew the license of Alcoa, they must get approval from the North Carolina Division of Water Quality.
What is at issue concerning the water quality permit in relationship to the hearing is for the judge to decide to uphold it or not. If he does, they have a strong chance of having the license renewed for another 50-year period by the federal government.
Alcoa generates millions in revenue annually from selling hydropower from the dams. Over the 50-year period going forward, that would amount to well over a billion in profits, and possibly a lot higher depending on prices in the decades ahead.
This would be a blow to Alcoa who is mostly boxed in by the price of aluminum, if they lose the deal, as it's one of the few alternative sources of revenue outside the sector they serve.
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