HENDERSON CO, KY (WFIE) -
Century Aluminum has now issued a 12-month notice to terminate its power contract with Big Rivers Electric Corporation for its Hawesville smelter. This, however, doesn't mean the plant with its more than 700 employees is closing.
Century Aluminum officials say the plant will continue to operate during the 12 month period assuming the economy stays the way it is right now.
Big Rivers officials say they didn't see the termination notice coming.
"We're a little surprised," said Marty Littrel with Big Rivers.
Michael Bless with Century Aluminum said, "We felt like we didn't have any choice but to deliver this termination notice.
Century Aluminum says it needs lower power rates to stay competitive.
"We need an arrangement that's going to make this plant viable very quickly. We've got over 700 employees and families that depend on this plant everyday," Bless said.
Century officials say Big Rivers customers would pay more if the plant has to shut down.
"It's actually the opposite. If Century was to leave, you're looking at about a 20 percent increase in electric rates. However, if $110 million was given to them which what's been requested, you're looking in the neighborhood of 30 percent at the residential level," Littrel said.
Century leaders tell 14 News they're willing to find a temporary solution by buying cheaper power from the open market.
"We would do it tomorrow," Bless said.
But say Big River's won't allow it. Big Rivers tells 14 News that's not true.
"We've offered them two different concessions. One was to go to the open market for power. It could be those conditions gave them problems," Littrel said.
"That's good, but that's not what he's told us. We don't need a price that's as low as we could get in the open market," Bless said.
Century Aluminum leaders say they'll continue to look at other options to get power so they can keep the Hawesville Smelter open. Officials say the plant is losing a million dollars a week.
Related Stories: Negotiations continue for Big Rivers and Century Aluminum
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