Century issues 12-month notice to terminate KY power contract - WOWK 13 Charleston, Huntington WV News, Weather, Sports

Century issues 12-month notice to terminate KY power contract

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Century Aluminum announced Monday that its subsidiary, Century Aluminum of Kentucky, issued a 12-month notice to terminate its power contract with Big Rivers Electric Corp. at its Hawesville, Ky. smelter.

Century will still be required to pay a demand charge for power, but is not obligated to continue operating the plant during the 12-month notice period, according to information from a Century news release.

"Our smelter in Hawesville is a great plant, operated safely and efficiently by a superb group of employees," Michael Bless, Century Aluminum president and chief executive officer, said in a news release. "It is competitive on the global market in every category other than the price we pay for electric power, which is among the highest such rates for smelters in the U.S.

"The unavoidable truth is that the smelter is not economically viable with this power rate and under current market conditions."

Bless said in the news release that Century needs a power price that is reflective of the market.

"We fully understand the devastating impact that the plant's closure would have on our employees, customers and suppliers, as well as on Kentucky's economy," Bless said in the news release. "We are committed to exploring all available options to keep the smelter open both in the short term and long term."

Nearly 700 employees currently work at the Hawesville plant.