RELEASE: *** PSC HEARING COUNTDOWN CLOCK: 5 DAYS *** Cities, Biz, Former PSC Staff: NO to Noranda Rate Shift OPC & MSD NEW to OPPOSE Rate Shift
With Less Than One Week 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 – On the heels of Office of Pubic Council (OPC) staff testifying against and a formal letter from Metropolitan St. Louis Sewer District (MSD) opposing the Noranda rate shift, Missourians for a Balanced Energy Future (MBEF) reminds Missourians of the list of cities, businesses and former Public Service Commission staff who oppose Missourians incurring a two percent increase in their electric bills over 10 years to give Noranda their reduction.
In testimony submitted just last week, a former PSC staff person and current OPC staff member Lena Mantel said that the OPC opposes the Noranda rate reduction because it would shift costs onto other Ameren Missouri ratepayers. Additionally, Mantel said that, if the PSC grants Noranda their request, they need to secure certain assurances, like “continued employment levels at the smelter.”
In mid-February, Noranda submitted their request for a 25 percent reduction in their electric rate on top of a rate that is already the lowest of any Ameren Missouri customer based on claims of economic hardship. Despite the reduction shifting costs of $500 million to a billion dollars over 10 years to other ratepayers, Noranda said that without the reduction they would have to layoff workers or even close their New Madrid, MO smelter.
The most recent entity to oppose the rate shift is the MSD where Director of Operations Jonathan Sprague wrote to the PSC: “While the District understands Noranda’s desire to reduce expenses, Noranda already has the lowest rates of any Ameren customer in Missouri. The claim filed by Noranda seeks to further reduce their rate by another 25 percent. This reduction would shift costs to the other consumers to subsidize this rate. If this rate shift is approved, it will cost MSD customers an additional $2.5 million over the next 10 year rate shift request. We are strongly opposed to this additional cost to MSD customers.”
MBEF Executive Director Irl Scissors said, “the number of cities, businesses and officials who have come out against this rate shift should say something about how truly bad this is for consumers large and small.”
In addition to the OPC and MSD, a former PSC staffer, two cement companies, various retailers and the cities of St. Louis, Ballwin, and O’Fallon all oppose the Noranda rate shift.
In fact, Continental Cement even wrote to the PSC saying that, if Noranda was granted their rate shift, Continental Cement also deserved a reduction in their rates.
MBEF is reminding Missouri consumers of reasons to oppose Noranda’s rate shift request as the Missouri Public Service Commission (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 |
