RELEASE: *** BREAKING *** PSC Staff Join OPC in Opposing Noranda Rate Shift Request
PSC Staff Also Oppose Noranda Overearnings Claim
MAJOR NORANDA SET BACK OCCURS AS PSC HEARINGS BEGIN TODAY
Jefferson City, MO – As the Missouri Public Service Commission (PSC) starts holding public hearings today on Noranda Aluminum’s request for a rate reduction that will increase Ameren Missouri customer rates by as much as a billion dollars, the PSC staff have just made a recommendation to the commissioners against Noranda. This opposition closely follows a similar Office of Public Council (OPC) recommendation that also opposes Noranda.
Friday, PSC staff filed formal testimony against Noranda on both of Noranda’s claims: for a reduction of 25 percent in the rate they pay Ameren Missouri and that Ameren Missouri over earns.
Noranda currently pays roughly 60 percent less than other Ameren Missouri customers. However, the PSC staff said Noranda’s request for a $.03 per kWh rate is too low.
The testimony also refutes one of Noranda’s biggest arguments that Ameren Missouri customers are better with Noranda on the system. PSC staff said this argument is baseless because Noranda’s rate shift would cost Ameren customers more than not having the smelter on Ameren’s system altogether by a difference of $7 million to $17 million per year.
With these important points in mind, the PSC staff summary said, “Staff does not support Noranda’s request at this time…”
The PSC staff also took a look at Noranda’s claim that Ameren Missouri has been overearning and concluded that it, too, was unjustified. The claim served as an attempt to distract press, legislators and consumers from Noranda’s request to reduce their own rate at a cost to others.
The PSC wrote in their summary: “Staff completed a limited review of Ameren Missouri’s rates, and has concluded that Ameren Missouri’s rates do not warrant opening an extensive earnings investigation at this time.”
The PSC staff recommendation comes on the heels of the Office of Public Council (OPC) staff testifying against Noranda’s rate shift request. They determined as well that a rate reduction for Noranda should “not be fully borne by ratepayers”.
The OPC testimony also said that, if the PSC granted Noranda their rate reduction, it should come with “continued employment levels at the smelter; guaranteed amounts of additional capitol investments in the smelter; capitalization strategies that preserve the smelter’s ability to continue to operate; and Noranda returning, over time, any discount provided to Noranda by Ameren’s other ratepayers.”
MBEF Executive Director Irl Scissors said, “Opposition doesn’t get much closer to home than the staff of the Commission saying so strongly that they oppose both Noranda’s rate shift request and the overearnings claim. It’s my hope that on behalf of Missouri electric consumers, the PSC heeds these recommendations and denies these requests.”
The Missouri Public Service Commission (PSC) begins hearing today from community members in Caruthersville, St. Louis, and Jefferson City at 6p.m. on June 9th, 10th, and 11th respectively.
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Missourians For A Balanced Energy Future moenergyfuture.org | @
