Monday, September 20, 2010

Alcoa (NYSE:AA) Must Go to Trial Over Hydropower Dams

While Alcoa (NYSE:AA) had been seeking a quick resolution over a license to operate hydropower dams in North Carolina, but a judge rejected that request and instead ordered a trial to decide the issue.

Concerning a request for summary judgment on the case, State Administrative Law Judge Joe Webster said in his ruling, "Based upon the evidence presented it appears that multiple material and factual issues are in dispute."

Webster said he needed a trial before deciding on the dispute. It's set to take place later in September.

The Division of Water Quality said in a certificate in 2009 that Alcoa could continue to operate the dams if they met certain conditions they set.

North Carolina officials, including Governor Beverly Perdue, oppose the company being relicensed, as they want to control the Yadkin River dams.

After the battle over the state certification is completed, Alcoa would go to the Federal Energy Regulatory Commission for its license to be renewed, which would give them up to another 50 years to operate it, assuming they win.

In 2006 Alcoa estimated selling the electricity generated close to $44 million. With prices sure to increase over they years, it could end up being valued at several billion over the duration of the license.

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