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Alcoa reaches electricity deal with Hydro-Quebec

Aluminum Maker Alcoa. Jeff Swensen/Getty Images

QUEBEC – Alcoa and Hydro-Quebec have reached a long-term agreement that will see the multinational’s three smelters continue to get electricity from the provincially owned utility.

Alcoa had threatened last October to close its facilities in Quebec if Hydro-Quebec refused to lower its electricity rates.

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READ MORE: Alcoa threatens to close three Quebec plants

The company did not release details of the electricity rates.

The agreement runs through 2030 for smelters in Becancour and Deschambault and through 2036 for the smelter in Baie-Comeau.

Alcoa says the agreement will allow it to proceed with $250 million of planned investments at the smelters over the next five years.

Premier Pauline Marois and Alcoa officials made the announcement at a news conference in Baie-Comeau this morning.

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