***BREAKING NEWS*** St. Louis City Opposes Noranda Rate Shift
Opposition Builds Against Hedge Fund Backed Aluminum Co. Bailout
Jefferson City, MO – The City of St. Louis sent a letter to the Missouri Public Service Commission to oppose a request from Tennessee aluminum company Noranda, which is owned by hedge fund Apollo Holding Company, for lower electric rates that would shift significant costs onto Missouri residents and businesses, many of whom are in St. Louis City. The city’s budget alone could also see massive cost increases based on the rate shift.
“This reduction would shift costs to other consumers, totaling more than a half of a billion dollars, and more than two percent per year for the next decade. If this rate shift is approved, it will cost the City of St. Louis an additional $3 million over the 10 year rate shift request,” City Counselor Michael A Garvin wrote.
Noranda omits in its request to the PSC that it already has the lowest rates in the state by as much as 60% less than other consumers. They also pay less for electricity than it costs to provide them with electric service.
The request before the PSC requests an additional 25 percent reduction in electric rates to ensure the company can remain economically viable. Noranda is also not forthcoming about the fiscal strength they recently reported to Wall Street investors, allowing them to pay dividends to shareholders, or the sale of Noranda stock by parent company, hedge fund Apollo where none of the profits were returned to Noranda.
“Not only does Noranda already pay the lowest rates, but they’re also in a position to find other ways to make ends meet. They do not need to lean on the residents of St. Louis, Walmart customers, or other businesses and cities that are objecting to this rate shift,” MBEF Executive Director Irl Scissors said.
St. Louis City’s opposition to the Noranda rate case follows a steady stream of companies and cities that have either formally intervened in the case or have submitted letters of opposition, including Walmart, River Cement, Continental Cement, the City of Ballwin, and the City of O’Fallon.
The Noranda case was filed as an expedited matter, leaving no time for public hearings, so this form of opposition is the only way by which those who oppose the request may make their opinions known to the PSC.
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Missourians For A Balanced Energy Future | moenergyfuture.org |
