25 FEBRUARY 2015AlCircle.com
Century Aluminium negotiating a viable power plan to restart Ravenswood plant
Edited by : AL CIRCLE
2 min read
Century Aluminium announced its quarterly earnings on Tuesday and also said that they are working towards reopening the shuttered Ravenswood plant through an ongoing negotiation with Appalachian Power for a sustainable power contract.
CEO Michael Bless announced that they have already submitted a formal power proposal to the company in January and there has been a response from them but did not share any details. It is only clear at this point that the two parties have not reached a common agreement ground.
The Jackson County plant has been idled since 2009 in the height of Great Recession and the company is constantly looking for a viable power plan to restart the project.
There have been various steps taken by the state government including bills that provide tax breaks and alternate power rate structures but considering that the aluminium price is still quite weak and the cost of running a 60-year old facility would invariably be higher, the company has little hope they can restart the plant to do profitable business.
Bless says that the rates quoted by the Appalachian are too high to run a profitable plant and they are currently trying to negotiate a deal using the PSC-approved special rate plan devised in 2012 to yield a more lucrative arrangement.
CEO Michael Bless announced that they have already submitted a formal power proposal to the company in January and there has been a response from them but did not share any details. It is only clear at this point that the two parties have not reached a common agreement ground.
The Jackson County plant has been idled since 2009 in the height of Great Recession and the company is constantly looking for a viable power plan to restart the project.
There have been various steps taken by the state government including bills that provide tax breaks and alternate power rate structures but considering that the aluminium price is still quite weak and the cost of running a 60-year old facility would invariably be higher, the company has little hope they can restart the plant to do profitable business.
Bless says that the rates quoted by the Appalachian are too high to run a profitable plant and they are currently trying to negotiate a deal using the PSC-approved special rate plan devised in 2012 to yield a more lucrative arrangement.
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