Alcoa Inc (NYSE:AA) has been in the talks recently. Recently, Alcoa Inc has reported that Yadkin Dams are delivering better revenues with having annual generation of 964,216 mega watts per hour of electricity during the 12 months period which has ended on September 30th, 2013.
Platts which is an energy information company has estimated the revenues of around $30 million at an average which is also an average wholesale price of $31.04 per mega watt per hour. But, the resources of the company did not comment on the profitability which has gained from the sales of the electricity that has been generated or also the operating costs for the Yadkin Dams.
As of now, the company is not managing to disclose the profit which has been received from the power sales, however the financial statement which was released in the year 2011 depicted the profits between $7.3 million and $8 million which is on an average revenue or around $30 million a year which was earned during 2008 to 2010.
Since the closure of the Aluminium smelter in the year 2007 to which the dams were providing electricity, Alcoa Inc is selling the electricity which is generated to the commercial buyers. In the near times, the company is seeking a new federal license which would be applicable for around 50 years from now on and would be required for the upgrading of the dams. This license is to be estimated around $180 million.
According to the projections of the company, they would be able to earn around $44 million revenue each year. But, there is an oppose in issuing of the new federal license to Alcoa Inc, the congress is still deciding whether the municipal body or state is planning to take over the project or not.
