NC Intervention Filing with FERC

The State of North Carolina officially petitioned the Federal Energy Regulatory Commission (FERC) to intervene out of time and to hold an emergency hearing on the state’s request.

What does this mean? Well, I guess the request to “intervene” means to stop FERC from issuing the license and to take over the Yadkin Project from Alcoa Power Generating, Inc. (APGI). The term “out of time” means that it is past (about two years past) the time when Federal Power Act says they can intervene.

Following is an excerpt from the state’s filing with FERC (with reference citings removed):

The Act [the Federal Power Act] allows the United States to take over any project “upon or after the expiration of any license” and following proper compensation. In order to effectuate this remedy, the Commission must first recommend takeover to Congress, which then considers and determines the matter. In the meantime, “the Commission shall not issue a new license to the original licensee . . . .”

The State recognizes that the United States has not previously exercised this authority with regard to any project. But never has so compelling an economic case been presented. On broad economic questions, the project now provides only the most minimal public benefits, e.g., payment of taxes, provision of power (albeit for private use and not for the public convenience). This contrasts markedly with the express purpose for the initial investment in the project, which was to maintain and enhance the local Badin Works. The licensee has long since recovered its initial investment. Going forward, a new license would allow the licensee to retain the use of an extraordinarily valuable public resource primarily for its own financial gain. This natural resource should be returned to public control for disposition, as the Federal Power Act demands, consistent with the public interest.

The State understands that the federal government may not be in a position to manage the project. And indeed, “no federal agency has expressed an interest in operating the Project.” But the inquiry should not end there. The State or an appropriate agent or contractor on its behalf would be fully qualified to operate the project in order to provide benefits to the local community and preserve and protect the public trust resources of the State.


So the argument is that smelting aluminum (and providing jobs and taxes to Stanley County) is OK but selling the power on the open market is not in the interests of the State of North Carolina. It also looks like it would take an act of Congress to effect the change.

I am continuing to discuss this with those who are for and those who are against the state action. I will update you with my findings next week.

………………………..Garry