Alcoa Power Generating

Alcoa Power Generating, Inc.

Company type	Subsidiary
Industry	Hydroelectric power generation
Headquarters	Pittsburgh , United States
Products	Hydroelectric energy
Parent	Alcoa Inc.

Alcoa Power Generating, Inc. (APGI), a subsidiary of Alcoa Inc. headquartered in Pittsburgh, Pennsylvania, unified three previously separate subsidiaries into a single organization responsible for overseeing hydroelectric power operations. These facilities not only produce hydroelectric energy but also contribute to flood management, recreational activities, community and commercial growth, and the preservation of wildlife environments.

Yadkin Project

The APGI Yadkin Project encompassed a 38-mile stretch of the Yadkin River located in the Piedmont region of North Carolina, incorporating four dams, power stations, and reservoirs. In February 2017, these assets were sold to Cube Hydro Carolinas. This project covered several counties such as Davie, Davidson, Rowan, Stanly, and Montgomery. The four dams—Narrows (constructed in 1917), Falls (1919), High Rock (1927), and Tuckertown (1962)—are critical infrastructure components. Notably, the Narrows dam is listed on the National Register of Historic Places, while the others qualify for eligibility.

History

Industrial development interest in the Narrows site along the Yadkin River emerged in the late 1800s. In 1887, mining specialist E.B.C. Hambley teamed up with Pittsburgh industrialist George I. Whitney to develop hydroelectric installations. Between 1899 and 1901, Whitney’s enterprises nearly completed construction of the Whitney Dam and an associated diversion canal; however, bankruptcy in 1907 halted further progress. The unfinished canal remains a significant historic feature, while the Whitney Dam now lies submerged beneath Badin Lake.

In 1912, French firm L'Aluminium Français took ownership of these holdings but suspended development during World War I after initiating plans for a dam and an aluminum manufacturing facility at the Narrows location. The nearby village of Badin was established to house workers.

Aluminum Company of America (Alcoa) acquired the property in 1915, redesigning both dam and powerhouse designs and overcoming delays caused by a major flood in 1916. The Narrows Dam, completed in 1917 with a height of 185 feet, was at that time the tallest overflow dam globally. Its reservoir, Badin Lake, spans 5,350 acres with maximum depths reaching 190 feet.

To increase hydroelectric output, Alcoa constructed Falls Dam downstream in 1919 and High Rock Dam upstream in 1927—then forming the largest lake on the Yadkin River at 15,180 acres—and later added Tuckertown Dam in 1962 between High Rock and Narrows reservoirs.

In August 2002, Alcoa ceased aluminum production at its Badin Works facility, resulting in layoffs of 377 employees; the electrode manufacturing plant was permanently closed in 2007. Despite these changes, the dams continue to produce around 215 megawatts annually for commercial sale.

Between 2008 and 2010, the Yadkin Project generated average annual revenues of $29.46 million and net income totaling $7.73 million. For the fiscal year ending September 2013, APGI reported sales of approximately 964,216 megawatt hours with estimated revenues near $30 million.

On July 11, 2016, Cube Hydro Carolinas—a division of Cube Hydro Partners LLC—acquired APGI’s Yadkin River hydroelectric facilities with intentions to modernize them. APGI retained ownership of roughly 15,000 acres of land surrounding these assets. The Federal Energy Regulatory Commission approved this license transfer on December 13; the transaction was completed on February 2, 2017.

In 2019, Ontario Power Generation purchased Cube Hydro and incorporated it into its Eagle Creek subsidiary.

Hazardous waste

For more than seven decades, Alcoa disposed of spent potlining, which the EPA designated as hazardous waste in 1980. Despite implementing so-called "corrective actions," a study by Duke University’s Environmental Law and Policy Clinic revealed persistent contamination of groundwater, surface water, and soil near the Badin Works and within the Yadkin River basin. Investigations conducted since 2018 suggest that polluted groundwater has extended into the Little Mountain Creek floodplain, although Alcoa contests this claim. Duke’s analysis detected trichloroethylene (TCE) in groundwater at the primary plant site and recommended excavation and removal of the buried hazardous materials. A related report was submitted to the state Department of Environmental Quality in December 2019.

Site redevelopment

In January 2011, Alcoa pledged $10 million toward preparing the Badin Works property for redevelopment by demolishing obsolete structures and improving infrastructure. On May 23, 2011, Electronic Recyclers International announced a $5 million investment to occupy a 165,000-square-foot facility; APGI also committed $5 million. Approximately 535,000 square feet of space remain available at the location. Clean Tech Silicon and Bar LLC proposed investing $300 million to create 450 jobs but withdrew following unsuccessful negotiations with APGI and Stanly County officials.

After APGI sold its power plants in 2016, the company confirmed its ongoing efforts to market the Badin Business Park.

General information

In 1958, Carolina Aluminum Company—an Alcoa subsidiary—secured a 50-year federal license to operate dams on the Yadkin River, owning the power stations, lakebed lands, and adjacent properties. This license transferred from Yadkin, Inc. (an Alcoa affiliate) to APGI in 2000. Beginning in 2002, APGI initiated an extensive relicensing procedure involving four rounds of local public hearings and input from more than 30 stakeholders including government agencies and nonprofit organizations. APGI commissioned 22 technical studies addressing environmental, economic, recreational, and cultural factors. On May 7, 2007, APGI submitted a Relicensing Settlement Agreement to the Federal Energy Regulatory Commission (FERC), endorsed by 23 stakeholders who committed to benefits for the region.

In January 2007, Stanly County Commissioners opposed APGI’s relicensing due to concerns about environmental remediation and advocated transferring the license to an entity prioritizing hydroelectric job creation. In 2008, then-Governor Mike Easley authorized a study on relicensing impacts with APGI support; however, results have not been published.

FERC issued its Final Environmental Impact Statement (EIS) in April 2008, concluding that federal takeover was unreasonable since no federal agency expressed interest in managing the project. Nevertheless, unresolved state water quality certification issues prevented final license issuance; thus, APGI operated under a temporary license.

In April 2009, Governor Beverly Perdue opposed APGI’s relicensing and supported legislation establishing a public trust to hold hydroelectric generation rights. Although the N.C. Senate passed this bill with bipartisan backing, it failed in the House due to opposition from Alcoa supporters. In 2010, Republican Senator Fletcher Hartsell introduced legislation creating the Uwharrie Regional Commission to oversee regional water resources.

A documentary titled "The Alcoa Story," produced by UNC-TV anchor Eszter Vajda focusing on Alcoa’s environmental history, sparked controversy including legislative subpoenas and debates over UNC-TV’s editorial independence. After airing and revelations regarding funding for an independent researcher involved in the project, UNC-TV terminated Vajda’s employment and removed related online content.

Celebrity activist Erin Brockovich publicly endorsed the Yadkin River Trust initiative, drawing national attention to environmental issues surrounding the project.

The relicensing debate has been highly contentious. APGI received support from groups such as the N.C. Property Rights Coalition—which characterized state efforts as government seizure—and industry figures like Rick Miller, President of the National Hydropower Association. Polling commissioned by APGI showed majority public opposition to state takeover.

Opposition from Stanly County was backed by Governor Perdue and her Commerce Secretary (a former president of the N.C. Water Rights Coalition), along with other officials and advocacy organizations including Yadkin Riverkeeper and Central Park NC.

In 2013, Stanly County agreed to support Alcoa’s license renewal. On July 29, 2013, North Carolina’s Department of Environment and Natural Resources recommended approval of relicensing. However, on August 2, the state filed suit asserting Alcoa did not own land beneath its lakes and sought rights over the dams. Governor Pat McCrory emphasized state interests related to water use and job creation along the Yadkin River. APGI cited a 2012 U.S. Supreme Court ruling favoring a Montana power company as precedent supporting its ownership claims; meanwhile another suit argued for state ownership dating back to colonial times. APGI maintained that delayed state action weakened that claim.

On April 22, 2015, U.S. District Judge Terrence Boyle ruled that because the Yadkin River was not navigable at U.S. independence, North Carolina did not own its riverbed then—supporting Alcoa’s land ownership claims pending trial resolution.

In August 2015, Boyle criticized North Carolina’s lawsuit as punitive towards Alcoa for economic losses and dismissed it in September due to delayed state action; this affirmed Alcoa’s ownership of the riverbed. The Fourth Circuit Court of Appeals upheld this ruling in 2017; in February 2018, the U.S. Supreme Court declined to hear further appeals.

On September 22, 2016, Alcoa was granted a federal license valid through March 31, 2055—12 years shorter than requested—with conditions including minimum water levels and establishment of a swimming beach at High Rock Lake; these requirements apply to Cube Hydro Carolinas after acquiring hydroelectric operations.

As part of relicensing obligations, roughly 4,700 acres featuring 76 miles of Yadkin River shoreline were designated for sale to the N.C. Wildlife Resources Commission and LandTrust for Central North Carolina contingent upon raising $10–12 million within five years. An additional 4,300 acres were planned for acquisition to maintain game lands status.

By September 2019, phase one of the Alcoa Lands Project secured 2,463 acres with 45 miles of High Rock Lake shoreline for $7.7 million; subsequent purchases included nearly 1,000 acres near Morrow Mountain State Park and a $7.82 million acquisition in September 2021 encompassing over 2,400 acres with extensive reservoir shoreline across four counties—now designated as Yadkin River Game Lands.

In January 2019, the U.S. Court of Appeals for the D.C. Circuit rejected North Carolina’s appeal; by April that year the state opted not to seek Supreme Court review effectively ending its legal challenge over control of the river and dams.

401 Water Quality Certification

The final outstanding Federal Energy Regulatory Commission (FERC) condition for issuing a new license for the Alcoa Yadkin Project was obtaining the Section 401 water quality certification, which encountered considerable resistance. In November 2007, the North Carolina Division of Water Quality (DWQ) initially granted APGI this certificate for the Yadkin Project; however, it was subsequently rescinded due to the omission of a mandatory public notice publication. After resubmitting the application, DWQ reissued the certificate on May 9, 2009. This certification required enhancements aimed at raising dissolved oxygen (DO) concentrations in dam discharge waters. Some improvements were implemented at Narrows Dam, yet full compliance awaited license approval. Stanly County challenged the certificate, resulting in a judicial stay. By October 2010, the state reduced the required financial surety bond from $240 million to $80 million, aligning with APGI’s projected costs for the necessary upgrades.

In late 2010, Stanly County and Yadkin Riverkeeper confronted Alcoa with internal communications alleging suppression of pollution data. After these emails became public, the Department of Environment and Natural Resources (DENR) revoked Alcoa’s certificate on December 2, 2010, suspending subsequent hearings. On January 28, 2011, APGI formally contested the revocation, asserting that the emails were misrepresented and that no crucial information had been concealed. Concurrently, APGI published research demonstrating that Falls tailwaters complied with state DO standards over 99.5% of the time in recent years, while Narrows tailwaters met these standards 93.4% of the time in 2010. APGI also introduced an environmental hotline operated by EthicsPoint to facilitate reporting.

On May 3, 2011, a Federal Appeals Court dismissed APGI’s legal challenge against state actions. The certificate was again revoked in 2013 due to concerns regarding project ownership. In May 2015, an administrative law judge determined that the Division of Water Quality exceeded its authority in denying the certificate and mandated a decision within 30 days.

During a public hearing on July 1, 2015, opposition to issuing a new permit predominated among attendees; Yadkin Riverkeeper called for more stringent environmental criteria. Subsequently, on September 25, Wake County Superior Court Judge Bryan Collins ruled that DENR had improperly denied the certificate and ordered its issuance within one month. On October 23, the state approved certification contingent upon Alcoa providing $48 million toward required improvements. Nevertheless, on October 28, Special Deputy Attorney General I. Faison Hicks requested that FERC postpone its licensing decision pending resolution of ongoing litigation before the Fourth Circuit Court of Appeals.

Tapoco Project

The Tapoco Project—originally established as Tallassee Power Company—comprises four hydroelectric dams situated on North Carolina and Tennessee waterways: Calderwood Dam, Cheoah Dam, Chilhowee Dam, and Santeetlah Dam located on the Little Tennessee and Cheoah Rivers respectively. These facilities historically supplied electricity to Alcoa’s aluminum smelting and rolling mill operations in Alcoa, Tennessee. The Tennessee Valley Authority (TVA) collaborates with Brookfield Smoky Mountain Hydropower to coordinate daily operations in harmony with flow releases from TVA’s Fontana Dam—the primary regulator for downstream river flows on the Little Tennessee River. Collectively, these four developments possess a licensed generating capacity of 380.1 megawatts.

Beginning around 1910, Aluminum Company of America (Alcoa) pursued hydroelectric sites to support aluminum manufacturing by acquiring several companies: Knoxville Power Company (chartered in 1900), Tallassee Power Company (1905), Western Carolina Power and Transportation Company, Union Development Company, and Union Power and Water Company by 1913. These entities were consolidated under Tallassee Power Company; the acronym Tapoco originates from their combined initials. The aluminum smelter commenced operations in 1913.

The surge in aluminum demand during World War I prompted Southern Railway to extend rail infrastructure to Cheoah Dam in 1916; Cheoah Dam began generating power in 1919. Construction of Santeetlah Dam started in 1926 with Rhymer's Ferry powerhouse operational by 1928. Calderwood Dam was finalized in 1930 followed by Chilhowee Dam’s completion in 1957. To meet wartime production requirements during World War II, the North Plant fabrication facility was established in 1942.

Although federal licensing for these dams was granted in 1955, renewal was delayed due to concerns about flooding impacts from Chilhowee Dam affecting Great Smoky Mountains National Park lands. The Tapoco Project and Licensing Act of 2004 resolved these issues through land exchanges—approximately 6,000 acres were transferred to park jurisdiction while roughly 10,000 acres of Alcoa property were placed under conservation easement protection. A new license valid for forty years was issued on January 25, 2005. Aluminum smelting operations ceased in 2009; subsequently in 2012 Alcoa divested its ownership of these dams.

Brookfield Renewable Energy Partners purchased all four dams along with associated infrastructure—including eighty-six miles of transmission lines and approximately fourteen thousand five hundred acres—for $600 million in 2012. Following acquisition, Tapoco-APGI was rebranded as Brookfield Smoky Mountain Hydropower on November 15, 2012.

The Cheoah Dam gained popular culture notoriety as a filming site for The Fugitive (1993), featuring Harrison Ford’s character performing a dramatic leap during an escape sequence.

Long Sault Project

The Massena facility, initiated by the Pittsburgh Reduction Company—later known as Alcoa—in 1902, was established to capitalize on the region's plentiful hydroelectric resources. This site holds the distinction of being the aluminum plant with the longest uninterrupted operational history. Electrical power is provided by the New York Power Authority (NYPA). Alcoa's Long Sault Division manages five 115 kV transmission lines that link NYPA with Hydro-Québec; these lines were originally constructed to connect NYPA to the Franklin D. Roosevelt project on the St. Lawrence River. Operation of two of these transmission lines is outsourced by Alcoa to Cedar Rapids Transmission Company, a subsidiary of Hydro-Québec.

External links

• Alcoa Power Generating Inc. Tapoco Division
• Alcoa Power Generating, Inc. Yadkin Division