Jefferson City, MO – After nearly a year of proceedings and rejections over Noranda Aluminum’s rate request that would shift hundreds of millions of dollars onto other Ameren Missouri electric consumers, Missourians for a Balanced Energy Future (MBEF) is encouraged by Ameren Missouri’s “win-win” proposal filed with the Missouri Public Service Commission (PSC).  The proposal would reduce Noranda’s electric rate, while not unfairly burdening other Missouri electric consumers.

“Though Noranda continues to propose an unfair cost shift on the backs of other Ameren Missouri customers, Ameren Missouri is proposing a plan by which Noranda pays a lower, more manageable rate, which will help keep jobs in southeast Missouri, while providing Noranda time to find a path to improve its financial situation,” MBEF Executive Director Irl Scissors said. “The plan will not result in the large costs that Noranda’s other proposals would impose on all other Ameren Missouri consumers.”

 

Ameren Missouri’s proposal would enable Noranda to revise its current contract, recognizes the special nature of Noranda’s high and nearly continuous load pattern, and takes advantage of the special legislative authority Noranda sought and received years ago to purchase electricity on a wholesale basis.Under this proposal Ameren Missouri would offer a lower wholesale rate to Noranda versus serving them at a retail rate well below what it actually costs to serve them, which causes large subsidies. The proposal works as follows:

This win-win proposal comes on the heels of the PSC staff and most recently the Office of Public Counsel, Missouri’s consumer advocate, filing cost of service studies showing that Noranda should actually be paying more (more than 10% more) for service, not less.Since Noranda filed its request, the PSC has twice rejected a rate reduction that would increase rates on the rest of Ameren Missouri customers; however, this hasn’t precluded Noranda from filing yet another request currently with the PSC for a reduced rate of $32.50 per megawatt hour.

Today, Noranda pays the lowest electric rate of any customer in Missouri, and pays 60 percent less than Ameren Missouri residential customers. Ameren Missouri’s electric rates are well below the national and Midwest average.