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Low-Price Power Deal May Be in Works for Intalco by Staff KGMI, July 20, 2009

FERNDALE, Wash. -- It looks like there's a light at the end of the tunnel for the Alcoa Intalco works smelter in Ferndale.

The KGMI is reporting that the Bonneville Power Administration has announced the framework for a new power-supply deal for the plant.

The proposal would answer three key needs Alcoa has stipulated in earlier talks: getting enough power, getting a cheap industry-rate price, and getting a long-term deal.

Low aluminum prices and expensive power had put Intalco's future in question, with Alcoa earlier this year threatening to close the plant if the BPA couldn't guarantee to supply power at lower rates.