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Century Aluminum expects State PSC to decide on a special electricity rate for Ravenswood soon
Edited by : AL CIRCLE
2 min read
Century Aluminum hopes the state Public Service Commission won't take long to decide on a special electricity rate for the company's now-closed plant in Ravenswood. Century has proposed a four-month schedule.
Century closed the plant in 2009 because of low prices for aluminum and a very high electric bill. In the past six months its retirees have agreed to a scaled down benefits package and the state legislature passed a bill that gives the opportunity for a special power rate. The next step is the PSC review and decision.
Century attorney Tom Heywood says the company knows everyone is anxious to get the plant restarted, with the possibility of hundreds of jobs. He says that's why they've suggested an expedited schedule before the PSC.
"From start to finish for the petition to be presented, for everyone to have a chance to react to it, for there to be a hearing and ultimately a decision," Heywood said.
The new state law gave Century and Appalachian Power Company the option to come up with a special rate outside the regular PSC process but the two couldn't agree. Appalachian Power has concerns about a multi-million dollar subsidy that its other customers would pay if the price of aluminum goes down to offset Century's rate.
Heywood says Century remains "very optimistic" that a special rate will be achieved and the plant restarted. But, he says, there's another factor to consider.
"The biggest impediment right now to that is the price of aluminum in the world market," Heywood said. "That price fluctuates, that's the reason for the special rate concept, and it (the price of aluminum) has come down the last few months."
Heywood says it has always considered restarting the plant like climbing four mountains. He says the first two mountains, the retirees’ package and the legislation, have been climbed. He says now it's time to get a special rate from the PSC followed by a new collective bargaining agreement with the United Steelworkers Union.
Century closed the plant in 2009 because of low prices for aluminum and a very high electric bill. In the past six months its retirees have agreed to a scaled down benefits package and the state legislature passed a bill that gives the opportunity for a special power rate. The next step is the PSC review and decision.
Century attorney Tom Heywood says the company knows everyone is anxious to get the plant restarted, with the possibility of hundreds of jobs. He says that's why they've suggested an expedited schedule before the PSC.
"From start to finish for the petition to be presented, for everyone to have a chance to react to it, for there to be a hearing and ultimately a decision," Heywood said.
The new state law gave Century and Appalachian Power Company the option to come up with a special rate outside the regular PSC process but the two couldn't agree. Appalachian Power has concerns about a multi-million dollar subsidy that its other customers would pay if the price of aluminum goes down to offset Century's rate.
Heywood says Century remains "very optimistic" that a special rate will be achieved and the plant restarted. But, he says, there's another factor to consider.
"The biggest impediment right now to that is the price of aluminum in the world market," Heywood said. "That price fluctuates, that's the reason for the special rate concept, and it (the price of aluminum) has come down the last few months."
Heywood says it has always considered restarting the plant like climbing four mountains. He says the first two mountains, the retirees’ package and the legislation, have been climbed. He says now it's time to get a special rate from the PSC followed by a new collective bargaining agreement with the United Steelworkers Union.
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