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More on the power deal from PUD General Manager Brian Skeahan

Metal is transferred to a cell line pot at Goldendale Aluminum. A new power purchase agreement with the PUD means the plant will have greater access to the lowest cost firm power from BPA.

Starting at midnight on Dec. 29, 1999, Klickitat PUD increased its electric load by 25 percent and Goldendale Aluminum had guaranteed access to low cost power to help ensure its future viability. The two agreed to a unique power purchase agreement, where the PUD will provide the plant an additional 9.9 megawatts of "preference" electricity through BPA for the next seven years.

Company President Brett Wilcox called the deal a "vital step towards securing our long-term viability in the community." With BPA's plans to restrict access to federal power beginning in 2001, that viability was in doubt, according to Gerry Miller, plant Vice-President for Energy and Government Affairs.

"Electricity can be as much as 45 percent of the cost of making our product," Miller said. "With today's aluminum prices, energy costs can quickly put us in the red." He said the deal with the PUD is part of the plant's long-term strategy for success. "Nine megawatts is not a lot when you look at the 300 megawatts we consume, but the principle is huge," he added. "We have a relationship with our local PUD that is unparalleled in the Northwest-a unique commitment to each other that we're very proud of."

"Some in the region have indicated that with tighter power supplies, some aluminum plants will have to go out of business," said PUD General Manager Brian Skeahan. "We didn't want Goldendale Aluminum to be one of them. The plant is too important to the community and provides too many critical jobs to local residents."