Century says no to alternative power rate proposal for Ravenswood plant

Century Aluminum will not restart its Ravenswood plant if the state Public Service Commission adopts rate plans drawn up by the Consumer Advocate Division or Appalachian Power attorneys, the company said Tuesday.

The first round of final briefs in Century's power rate case before the PSC was filed late Tuesday.

In its filing, Century said neither of the alternative power rate proposals drawn up by the Consumer Advocate Division or Appalachian Power provide enough discounts to allow it to restart its Ravenswood aluminum smelter.

"Both APCo's and CAD's modifications increase costs to a point where the special rate will not allow a restart of the smelter," the company filing said.

Century is trying to get the PSC to approve a new, 10-year rate structure that would help it reopen the plant.

The plant closed in February 2009 after the global recession caused aluminum prices to plummet. More than 650 workers lost their jobs.

The company says it needs a power rate structure that would protect it from sudden swings in commodity prices, like those of 2008 and 2009.

The PSC currently has three proposals to consider - one from Century, a modified proposal the commission asked power company attorney Steve Ferguson to write, and a third plan proposed by the Consumer Advocate Division.

The West Virginia Energy Users Group said in its filing it would support the Consumer Advocate Division's plan.

Century said the power costs in both alternate plans are still too high to allow the company to profitably operate the plant.

Appalachian Power has not taken a stance on any plan, although attorneys noted Century's original proposal presents significant risk to other ratepayers.

Century maintains other parties are too focused on the short-term environment for the aluminum market. Current market prices are depressed due to global economic conditions and the ongoing financial crisis in Europe.

The company maintains that if the commission considers the full 10-year period, in which aluminum prices are expected to rise significantly, consumers wouldn't be hurt by its plan.

Century says the situation will reverse when prices increase. When that happens, the company would pay higher rates that could help ease costs for other ratepayers.

Attorneys representing all parties will have one week to write final responses. After that, the commission will begin deciding what kind of rate structure to approve. Century officials expect a decision by mid-September.