Unwritten state deal to lower Alcoa bond by $160 million

Full story in The Winston-Salem Journal.

As a legal battle continues over approvals to let the Alcoa power company keep dams along the Yadkin River in central North Carolina, the state has agreed to lower the company's surety bond from $240 million to $80 million.

The state won't say why and won't confirm the deal. It was reached in either August or September, but has not been written down because, in a company attorney's words, "nobody’s had a chance." A company spokesman confirmed the decrease, as did others familiar with the case.

So that's all a little odd. Also odd: The $240 million was part of Alcoa's water quality certificate as of May 2009, and that certificate was issued by the state following two years of review.

Now, either the $240 million figure was wildly inappropriate despite the two years it took to set, or $80 million is. But the state won't talk about it. Meanwhile, attorneys for the state are defending Alcoa's certificate before an administrative law judge, despite the fact that N.C. Gov. Bev Perdue has said she'd like to see Alcoa lose its license along the river so the state can reclaim the power generating dams.

Also, some people think Alcoa's now-closed aluminum smelting plant along the river is the reason you shouldn't eat more than one fish a week out of Badin Lake. Some also believe Alcoa's operations have given people cancer.

Nutty.