Alcoa Signs Ten-Year Power Contract for Intalco Works

Alcoa (NYSE:AA) today announced that it has signed a long-term power
contract with Bonneville Power Administration (BPA) for its Intalco
Works aluminum smelter in Ferndale, Washington. The contract, which runs
through September 2022, ensures power supply for the smelter and helps
sustain the economic impact the plant brings to the region.

The contract was signed today at a ceremony held at Intalco. Employees
and community leaders were joined by dignitaries and elected officials
to commemorate the occasion including U.S. Senator Patty Murray,
Congressman Rick Larsen, Governor Chris Gregoire and BPA Administrator
Steve Wright.

'Solidifying Intalco′s long-term power security is a major
accomplishment that not only helps protect jobs, but helps sustain
manufacturing and its economic impact in Washington State,? said U.S.
Primary Products President Bob Wilt. 'We owe tremendous gratitude to the
leaders and supporters who have carried this mission forward, including
our employees, elected officials, BPA and the community. We especially
want to thank BPA Administrator Steve Wright for his focus and
dedication to reaching this agreement.?

'This agreement provides benefits for BPA power customers in the form of
lower rates in the near term and increased long term rate stability,'
said Steve Wright, BPA administrator and chief executive officer. ?'It
also provides operating flexibility to help deal with intermittent
resources like wind while also moving a step closer to resolving
longstanding litigation over benefits BPA provides to residential and
small farm customers of investor-owned utilities.?

The contract with BPA provides 300 Mw of power to Intalco at the
Industrial Power (IP) rate.

'This is fantastic news for Washington State and the Intalco community
in Ferndale,? said Senator Patty Murray. 'Today′s signing of this
long-term contract shows what can happen when government and industry
come together to create jobs and help families across our state.?

Intalco Works started operations in 1966 and has capacity of 279,000
metric tons per year. Along with 640 family wage jobs created at
Intalco, the operation supports approximately $118 million in personal
income in Whatcom County, $5 million in local taxes, $240,000 in annual
charitable contributions and thousands of hours volunteered each year by
Alcoa employees.

'Today′s contract signing marks the culmination of years of hard work by
many at BPA and Alcoa while securing a bright future for Alcoa Intalco,?
said U.S. Senator Maria Cantwell (D-WA). 'I am proud to have been a part
of this critical effort for more than a decade. This contract means the
preservation of hundreds of family-wage jobs and substantial investment
in improvements at Alcoa′s Ferndale plant. And it ensures Alcoa will
remain a critical contributor to the local economy for many years to
come.?

'The commitment signed today is very welcome news to the people of
Ferndale and all Washingtonians,? said Governor Chris Gregoire. 'It will
help our Washington families, create jobs in our growing energy economy
and is the promise of energy cooperation for many years to come.?

About Alcoa

Alcoa is the world′s leading producer of primary aluminum, fabricated
aluminum and alumina. In addition to inventing the modern-day aluminum
industry, Alcoa innovation has been behind major milestones in the
aerospace, automotive, packaging, building and construction, commercial
transportation, consumer electronics and industrial markets over the
past 120 years. Among the solutions Alcoa markets are flat-rolled
products, hard alloy extrusions, and forgings, as well as Alcoa ? wheels,
fastening systems, precision and investment castings, and building
systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral
part of Alcoa′s operating practices and the product design and
engineering it provides to customers. Alcoa has been a member of the Dow
Jones Sustainability Index for eleven consecutive years and
approximately 75 percent of all of the aluminum ever produced since 1888
is still in active use today. Alcoa employs approximately 61,000 people
in 31 countries across the world. More information can be found at www.alcoa.com.

Alcoa

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