DSI Service Workshop
BPA Journal, June 2009
BPA will hold a public meeting this month to discuss terms for a long-term service contract for aluminum direct service industries. BPA is looking to the region to help it decide if the amount of power previously negotiated between Alcoa and BPA under the unsigned, draft contract released in January 2009 should be changed and what changes are needed for the term of future contracts. The goal is to be able to develop a contract or contracts that provide power to DSIs as early as Oct. 1, 2009 and beyond. BPA and Alcoa, Inc., worked several months last year and early this year to develop a long-term contract to provide service to the company's Intalco plant near Ferndale, Wash., from 2012 to 2028. Negotiations revealed that neither party could sett le on terms that would serve the long-term interests of both parties. Since that time, aluminum prices are no longer in the freefall they were in at the beginning of the year. In addition, wholesale market power prices are lower. Aluminum prices still have not completely rebounded, but they have remained fairly stable for the past several weeks.
Therefore, BPA is interested in exploring possible changes to the draft contract that would make a subsequent off er to the DSIs successful. BPA is proposing to start with the previously negotiated draft contract and determine what modification to the terms are applicable. The draft contract is posted at www.bpa.gov/power/pl/regionaldialogue/implementation/documents/2009/DSI/2009-01-23_09PB-13268.pdf.
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