”We are saddened to report that the Eel River Power Plant in Scotia, California will shut down on or about Nov. 1. The decision was difficult but necessary considering the circumstances.
”Eel River Power has worked over the past two years to reach a new long-term power sales agreement and secure a stable supply of wood fiber that would provide the certainty necessary to make significant new investments required to improve plant performance. In addition, Eel River is working to gain clarity on new state regulations that may materially impact the operations of the plant. However, until Eel River makes progress on these issues, the plant must be idled. Eel River Power will continue to address the challenges facing the plant and hopes to restart the facility sometime in 2013.
”Most of the plant’s employees will lose their jobs at the end of the month. However, a small crew will be maintained to oversee the plant.
”Eel River Power understands that the plant is vital to this region of California. It serves as a valuable source of renewable energy, directly employs 32 people, and also supports more than 100 other local jobs.”
The Eel River plant is based in California’s North Coast region about 30 miles south of Eureka. The plant was built in 1988 by Pacific Lumber.