RELEASE: Walmart Intervenes Against Noranda Rate Shift Request
Noranda Bailout Would have Significant Impact on Electric, Retail Consumers
Jefferson City, MO – In response to a February 12th Public Service Commission filing made by Noranda Aluminum seeking a 25 percent reduction in their electric rate, which is already the lowest rate of any consumer in Missouri, Walmart filed a motion to intervene against Noranda, citing the adverse impact a rate-shift would have on their Missouri business.
“This has been our concern since Noranda first requested this rate-shift: Missouri residents and businesses would bear the brunt of any electric rate reduction as a result of Noranda’s alleged economic hardship. This is nothing more than a bailout for a Wall Street-owned company and the rest of us pay the price,” Irl Scissors, Executive Director for Missourians for a Balanced Energy Future said.
The Noranda PSC claim would shift roughly $500 million onto other Ameren customers over 10 years, causing rates to increase by at least two percent per year each of those years. For large customers, like Walmart, this shift is a significant burden. However, residential customers could face a one-two punch not only seeing their electric rates increase as a result of the Noranda rate shift, but they could see an impact in prices at local retail outlets as well.
As cited in Walmart’s motion to intervene, they note that in “owning and operating over 73 retail stores and related facilities in Ameren’s Missouri service territory…these facilities consume over 190 million kWh [kilowatt hour] of electricity on an annual basis.”
Walmart goes on to say that “the relief being requested in this proceeding, if adopted, could result in significant changes to Walmart’s cost of electricity, directly and substantially affecting its business and operations in the State of Missouri.”
Scissors continued, “Walmart’s engagement confirms that the trickle down affect of Noranda’s bailout would hurt Missouri consumers immensely. Fortunately, Missouri’s largest retailer recognizes the harm and is stepping in to speak up. The PSC should assert that because the rate-shift so greatly impacts Missouri consumers, it is more appropriately suited for debate before the General Assembly.”
###
