RELEASE: PSC HEARING COUNTDOWN CLOCK: 3 DAYS *** Noranda Sends MO Money to Wall Street
With 3 DAYS Until the PSC Hears from Southeast Missouri, St. Louis, and Mid-Missouri, MBEF Reminds Consumers Why Noranda’s Rate Shift is Bad for Missouri
Jefferson City, MO – Today, Missourians for a Balanced Energy Future (MBEF) tells Missouri electric consumers that Noranda’s request for lower rates will not only cost them up to a billion dollars in higher rates, but much of that money will go to a Wall Street hedge fund.
Noranda Aluminum, a Tennessee-based company with a smelter in New Madrid, MO, is controlled by Wall Street hedge fund Apollo Holding Corporation. After an initial investment of $211million in 2007, Apollo has a history of taking more than $554 million out of Noranda in profit over the years. That’s nearly a 400 percent return on investment.
After its initial investment in ’07, Apollo also installed one of its own executives as CEO of Noranda. His first action was to lay off 340 New Madrid workers, paying Apollo back its $211 million investment.
Apollo continues to receive regular dividends from Noranda. Last year, Apollo made more than $500 million in profits. Similarly, Apollo’s CEO took roughly $500 million in salary, which helped move his rank on the Forbes billionaires list from 299 to 240.
Now Noranda is requesting permission from the Public Service Commission (PSC) for a 25 percent reduction in their electric rate on the backs of Missouri consumers. They already have a lower electric rate than any other Missouri resident or business.
“Apollo isn’t interested in keeping Noranda viable to protect workers – they have a history of laying off workers to get a return on investment. Apollo wants Noranda to remain viable so it can continue to be a cash cow at the expense of Missouri consumers,” MBEF Executive Director Irl Scissors said.
MBEF is reminding Missouri consumers of reasons to oppose Noranda’s rate shift request as the PSC plans to hear 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 |
