Smelter deal signed

Alcoa has signed an agreement TXU Energy regarding the development, construction, ownership, operation and maintenance of the Sandow 5 Generation Station adjacent to Alcoa’s Rockdale aluminium smelter.


Alcoa has signed a Letter of Intent (LOI) with TXU Energy (TXU) regarding the development, construction, ownership, operation and maintenance of the Sandow 5 Generation Station adjacent to Alcoa’s Rockdale, Texas aluminium smelter.



The proposed new 564 net megawatt electric generating station would replace three of the four existing generating units at the facility.



TXU operates the fourth generating unit at Rockdale as well. Alcoa will enter a power supply agreement with TXU that can supply the Rockdale smelter through 2038.



A definitive agreement is expected to be completed in the first quarter of 2006.