Alcoa will keep Ferndale smelter open, saving 528 jobs

Alcoa will keep open its Ferndale smelter and preserve 528 jobs after an agreement announced Monday to buy power from the Bonneville Power Administration at a favorable rate.

The Whatcom County aluminum smelter has been in danger of closing the past two years, after a federal court ruling rejected the BPA's system for offering long-term discounted power to large industrial users.

The federal power agency will charge Alcoa $34.60 per megawatt hour during the first 17-month phase of the agreement. Pricing for a second, five-year phase of the contract is contingent on several factors, including further decisions by the court, said a BPA statement.

Gov. Chris Gregoire, who joined local officials and Alcoa representatives at the announcement, said the deal preserves "jobs that are essential to our ability to make it through and recover from this recession."

The new contract provides Alcoa with up to 320 megawatts of power and will allow the smelter to produce a total 184,000 metric tons per year, officials said.