The Federal Relicensing Process
The operation of the Yadkin Project is regulated by the Federal Energy Regulatory Commission (FERC). FERC’s predecessor, the Federal Power Commission, issued a 50-year for the project in 1958. When the license expired at the end of April 2008, FERC issued Alcoa-Yadkin a standard one-year license. The company expects FERC to issue a new long-term license for the Yadkin Project in 2009.

Relicensing Facts

• A lengthy process: Alcoa-Yadkin officially began the relicensing process in September 2002 and worked closely with stakeholders for more than five years to address key issues related to the Yadkin Project and its role within the Yadkin – Pee Dee River watershed.
  
  
• Significant public involvement and government representation: More than 100 people participated in "Issue Advisory Groups" that were established in February 2003, and more than 30 organizations participated in the settlement negotiations. Participants included:
  -  North Carolina and South Carolina state agencies
  -  Federal agencies, including the U.S. EPA, U.S. Fish & Wildlife Service and U.S. Forest Service
  -  Local governments including Montgomery, Rowan, Davidson and Stanly counties
  -  Environmental interest groups, including American Rivers and The Nature Conservancy
  -  Local homeowners, including High Rock Lake Association and Badin Lake Association
  
  
• Environmental studies: A total of 23 technical studies were conducted from 2003 to 2005. The studies, recommended by relicensing participants, focused on issues such as water quality, wetlands, fisheries, aquatic habitat, rare species, wildlife and terrestrial habitat, recreation, and historic and prehistoric cultural issues. Click here for a complete list and brief description of relicensing studies.
  
  
• Settlement negotiations: As part of its effort to publicly engage stakeholders, Alcoa-Yadkin voluntarily chose to pursue a relicensing settlement agreement that would address local interests and resolve key issues to the greatest extent possible. Settlement negotiations began in early 2005 and continued for two years.
  
  
• Relicensing agreement: A formal Relicensing Settlement Agreement (RSA) was submitted to FERC on May 7, 2007. The agreement — supported by 23 major stakeholder groups — strikes a balance among many competing interests along the Yadkin River. As a result of the agreement, North Carolina will benefit from improved water quality, increased water withdrawals by local communities and additional protections to the water supply during times of drought. Click here for a summary of the relicensing agreement.
  
  
• Federal takeover options: A clause in the Federal Power Act allows the federal government to take over hydropower assets at the end of a license term, but such a takeover has never occurred. In a Final Environmental Impact Study released in April 2008, FERC staff concluded that a federal takeover is not a reasonable alternative and will not be considered further. Click here for more information.