With Governor Perdue as an Ally
September 19, 2011 - by
A little over a year ago an old friend (and Jesse Helms supporter) asked me to drive down to Albemarle to meet with a group of Republicans to help them in their fight with Alcoa Corporation.
To make a long story short the argument between the local Republican County Commissioners and Alcoa boils down to who controls a thirty-eight mile stretch of the Yadkin River that is the source of 940,000,000 kilowatt hours of hydro-electricity.
Alcoa now controls the river and the hydro-electricity and has since Washington gave it a license 50 years ago back in 1958. But now the license is up for renewal and the County Commissioners – after looking around at South Carolina and Texas and Washington and New York – have figured out other states have public trusts that use the cheap hydro-electricity generated by their rivers to create jobs. (In fact, according to the North Carolina Department of Commerce, the public trust in the New York by selling businesses low-cost electricity brings 350,000 jobs to New York.)
So five rural Commissioners from one small county tackled a multi-billion dollar corporation and, at first, it went exactly as you’d expect. Alcoa had a field day. Then during the 2008 election an odd thing happened: Both candidates for Governor – Pat McCrory the Republican and Bev Perdue the Democrat – sided with the County Commissioners against Alcoa.
After that the sledding got rougher for Alcoa – until after the election when another odd thing happened: The Commissioners’ newly elected ally, Governor Beverly Perdue, vanished. As the fight between Alcoa and the Commissioners raged through the legislature and the Federal Energy Commission and the courts it was like the Governor had gone on submarine maneuvers.
Worse – for the county commissioners – when they locked horns with Alcoa in a lawsuit Governor Perdue’s Department of Natural and Economic Resources showed up on the other side – siding with Alcoa.
Then, last December, the Commissioners caught another break. During the trial in Raleigh their lawyers (and lawyers for the Yadkin Riverkeeper) proved Alcoa had misled the state about its pollution; The Department of Natural and Economic Resources promptly revoked Alcoa’s ‘Water Quality Certificate’ – which Alcoa needs to get that new 50 year license.
Alcoa was knocked down but it wasn’t knocked out – it scrambled back to its feet and came out swinging then, suddenly changing directions, it laid an offer on the table that put both Perdue and the Commissioners over a political barrel.
It had recruited, Alcoa announced, a ‘silicon recycler’ to locate a plant at its old smelter and create 250 jobs – but there was one caveat: The Governor and the County Commissioners had to endorse Alcoa getting that new 50 year license.
Now it’s no secret the Governor’s facing a tough reelection fight with Pat McCrory and, just naturally, the temptation of announcing 250 new jobs was more than she could bear – she dispatched her Senior Policy Advisor Stephen Neuman (who ran President Obama’s campaign in North Carolina) to shuttle back and forth between Alcoa and the County Commissioners to work out the deal to swap 940,000,000 kilowatt hours of electricity for 250 jobs.
Back during World War II, after a row with the Americans, Winston Churchill once growled, The only thing worse than fighting with allies is fighting without them – right now the Stanly County Commissioners must have the same sinking feeling.
When the Commissioners turned Alcoa down flat, in the blink of an eye Governor Perdue had her press secretary announce emphatically: The Governor wants those 250 jobs – which didn’t exactly sound like the encouragement of a steadfast ally.
One other fact: Alcoa’s own records show control of the Yadkin hydro-electricity for the next 50 years will bring it over $1.5 billion in income. Divide that by 250 jobs. It’s $6,000,000 per job which is pretty steep government subsidy of a corporation even for a Democrat facing a tough reelection campaign to support.
With Governor Perdue as an Ally
September 19, 2011/
A little over a year ago an old friend (and Jesse Helms supporter) asked me to drive down to Albemarle to meet with a group of Republicans to help them in their fight with Alcoa Corporation.
To make a long story short the argument between the local Republican County Commissioners and Alcoa boils down to who controls a thirty-eight mile stretch of the Yadkin River that is the source of 940,000,000 kilowatt hours of hydro-electricity.
Alcoa now controls the river and the hydro-electricity and has since Washington gave it a license 50 years ago back in 1958. But now the license is up for renewal and the County Commissioners – after looking around at South Carolina and Texas and Washington and New York – have figured out other states have public trusts that use the cheap hydro-electricity generated by their rivers to create jobs. (In fact, according to the North Carolina Department of Commerce, the public trust in the New York by selling businesses low-cost electricity brings 350,000 jobs to New York.)
So five rural Commissioners from one small county tackled a multi-billion dollar corporation and, at first, it went exactly as you’d expect. Alcoa had a field day. Then during the 2008 election an odd thing happened: Both candidates for Governor – Pat McCrory the Republican and Bev Perdue the Democrat – sided with the County Commissioners against Alcoa.
After that the sledding got rougher for Alcoa – until after the election when another odd thing happened: The Commissioners’ newly elected ally, Governor Beverly Perdue, vanished. As the fight between Alcoa and the Commissioners raged through the legislature and the Federal Energy Commission and the courts it was like the Governor had gone on submarine maneuvers.
Worse – for the county commissioners – when they locked horns with Alcoa in a lawsuit Governor Perdue’s Department of Natural and Economic Resources showed up on the other side – siding with Alcoa.
Then, last December, the Commissioners caught another break. During the trial in Raleigh their lawyers (and lawyers for the Yadkin Riverkeeper) proved Alcoa had misled the state about its pollution; The Department of Natural and Economic Resources promptly revoked Alcoa’s ‘Water Quality Certificate’ – which Alcoa needs to get that new 50 year license.
Alcoa was knocked down but it wasn’t knocked out – it scrambled back to its feet and came out swinging then, suddenly changing directions, it laid an offer on the table that put both Perdue and the Commissioners over a political barrel.
It had recruited, Alcoa announced, a ‘silicon recycler’ to locate a plant at its old smelter and create 250 jobs – but there was one caveat: The Governor and the County Commissioners had to endorse Alcoa getting that new 50 year license.
Now it’s no secret the Governor’s facing a tough reelection fight with Pat McCrory and, just naturally, the temptation of announcing 250 new jobs was more than she could bear – she dispatched her Senior Policy Advisor Stephen Neuman (who ran President Obama’s campaign in North Carolina) to shuttle back and forth between Alcoa and the County Commissioners to work out the deal to swap 940,000,000 kilowatt hours of electricity for 250 jobs.
Back during World War II, after a row with the Americans, Winston Churchill once growled, The only thing worse than fighting with allies is fighting without them – right now the Stanly County Commissioners must have the same sinking feeling.
When the Commissioners turned Alcoa down flat, in the blink of an eye Governor Perdue had her press secretary announce emphatically: The Governor wants those 250 jobs – which didn’t exactly sound like the encouragement of a steadfast ally.
One other fact: Alcoa’s own records show control of the Yadkin hydro-electricity for the next 50 years will bring it over $1.5 billion in income. Divide that by 250 jobs. It’s $6,000,000 per job which is pretty steep government subsidy of a corporation even for a Democrat facing a tough reelection campaign to support.