RELEASE: MBEF Calls on General Assembly to Address Noranda Bailout Request
One Week Before Session Ends, General Assembly Remains Rightful Place For Noranda Bailout Debate
Jefferson City, MO – One week before the end of Missouri’s legislative session, Missourians for a Balanced Energy Future calls on the General Assembly to address the Noranda rate shift case currently before the Public Service Commission or intervene on behalf of their constituents.
Noranda cites the need for economic relief as the basis for their PSC request; however, the General Assembly is the more appropriate forum for this debate.
“There is no precedent for the PSC to take up economic relief packages, which Noranda themselves argues this would be. The General Assembly is where this request should be debated and with one week before the end of session, we ask that legislative leaders address this case,” MBEF Executive Director Irl Scissors said.
Noranda’s February 12th filing with the PSC suggests the company, which is headquartered in Tennessee, will either face layoffs or full closure of it’s New Madrid, MO smelter, if it doesn’t receive a 25 percent reduction in its Ameren Missouri electric rates. The reduction would shift over a half a billion in increased rate costs onto all other Ameren Missouri customers over the next decade.
Various Ameren Missouri customers, including the cities of St. Louis, Ballwin, and O’Fallon and companies, like Walmart, cement companies, and local retailers have objected to the rate shift because it would place undue economic stress onto other Ameren Missouri customers. When asked recently by a financial analyst whether the rate shift request would in fact hurt other Missouri companies, Noranda’s CEO said he could not answer the question.
Doubts exist about whether Noranda truly faces the economic hardship they claim. Noranda plans again to pay dividends to shareholders later this month, which it has in previous months as well, in addition to reports to Wall Street investors of clean financial health. Noranda’s controlling company, hedge fund Apollo Holding Corporation, made over $500 million last year, which is nearly the same amount made by their CEO, who raised his rank on the Forbes billionaires list from 299 to 240.
“It’s hard to argue that your company deserves a bailout, especially on the backs of other businesses and residents, when you’re still able to hand out money to shareholders and your top executives are amid the wealthiest people in the country,” Scissors said. “There’s clearly a lot to look into before this company should be offered this kind of a bailout and the only appropriate place for that debate to occur is before the General Assembly.”
The PSC plans to begin hearings for the rate shift request in early June.
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Missourians For A Balanced Energy Future | moenergyfuture.org |
