APGI Withdraws Application for Water Quality Certificate

"We decided that withdrawing our application and reapplying was the right thing to do. The additional time will ensure that all factors have been appropriately considered before a new water quality certificate is issued," said Gene Ellis, APGI licensing and property manager.

APGI originally submitted its application for a water quality certificate on May 10, 2007 and the N.C. Division of Water Quality issued a water quality certificate for the Yadkin Project on November 17, 2008. That certificate was revoked last month when it was discovered that a required legal notice was not published in the newspaper. State officials published the required public notice and accepted public comments for a 15-day period ending on May 2, 2008.

Federal laws require the State to act on APGI's application within one year - by May 9, 2008. That deadline provided little time for State officials to adequately address the public comments it received this month, prompting the request for APGI to withdraw and resubmit its application.

"We expect the state to conduct a timely review of our new application and issue a new water quality certificate within the next several months," Ellis said. "We do not believe the additional public comments provided to the State include any new, relevant information regarding the discharges from the Yadkin Project."

If adopted by FERC, the Relicensing Settlement Agreement, supported by 23 organizations acrossNorth Carolina andSouth Carolina, will significantly improve water quality in the Yadkin River. Other benefits include an extended recreation season, increased water withdrawals from the Yadkin River and greater protection of the water supply during times of drought. In addition, APGI will donate or sell more than 6,000 acres of land (approximately 40 percent of its land holdings in centralNorth Carolina) for conservation, recreation and game lands. That includes the donation of more than 1,000 acres for the expansion ofMorrow Mountain State Park.

APGI is currently operating the Yadkin Project under a temporary license; the original 50-year license expired on April 30, 2008. The temporary license mirrors the conditions of APGI's original license and will remain in effect until a new long-term license for the Yadkin Project takes effect.

SOURCE Alcoa Power Generating Inc.