Tagged: Big Rivers Electric

Big Rivers Electric’s decision to let Century Aluminum out of its contract in August, may mean significant electric rate increases throughout the region.

Big Rivers spokesperson Marty Littrel said the aluminum smelter will be able to buy electricity elsewhere on the open market. But since the smelter is Big Rivers’ biggest customer, Littrel said the power supplier has to raise rates about 20 percent.

“All we’re trying to do is cover our expenses here,” he said. “We’ll likely have to idle a plant because this is a huge revenue loss for us.”

The Century Aluminum smelter in Hawesville has notified employees that it plans to shut down operations Aug. 20 unless it can get lower electric rates.

The aluminum smelter has been in negotiations with its power supplier, Big Rivers Electric Corporation, for more than a year. Both parties say they are still trying to negotiate a deal before time runs out.

With only two days left in this year's Kentucky General Assembly session, time is running out for supporters of legislation meant to keep two western Kentucky aluminum smelters—which employ about 3,000 people—from closing.

Big Rivers Electric customers in western Kentucky can expect a marginal increase in their rates soon but a much larger increase could be coming their way in July. The Kentucky Public Service Commission reaffirmed a 2011 decision that decreased subsidies for two aluminum smelters, fixed a $450,000 mathematical error and added legal costs, which adds 45 cents to the average customer’s bill. 

A federal court ruling on power plant emissions has prompted a settlement cutting the cost of Big Rivers Electric’s pollution control plan by $225 million. The Kentucky Public Service Commission announced the settlement Monday. The electric company had proposed spending more than $283 million on pollution control systems for the plants in Hawesville, Centertown and two in Sebree in order to comply with federal rules. But in August, a federal court overruled some emission control regulations set by the Environmental Protection Agency.