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Retirees back special power rate for Century
Edited by : AL CIRCLE
2 min read
Century Aluminum retirees are encouraging the state Public Service Commission to approve a special power rate structure that might help the company reopen its Ravenswood plant.
Karen Gorrell, spokeswoman for the retirees, submitted a formal letter to the PSC Thursday as part of Century's ongoing rate case before the commission. Gorrell was among hundreds who lost their health insurance when Century cut off coverage to retirees in 2011. Retirees and the company negotiated a deal to restore some benefits earlier this year, but the deal is contingent on the Ravenswood plant reopening. Century shuttered the Ravenswood aluminum smelter in February 2009, putting more than 650 people out of work.
The state Legislature passed a bill earlier this year that would provide $20 million in tax credits that would be passed on to power plants to get Century's power rate down. Century is also asking that consumers continue to absorb about $17.3 million in fixed costs that Appalachian Power spread to its other customers when Century closed in 2009. That, in combination with a $2.7 million contribution from Appalachian Power's shareholders, makes up a second $20 million portion of the proposal.The third part is the one that puts consumer rates on the line.
If aluminum prices were to stay below $2,500 in the coming years, Century is proposing Appalachian Power adjust other consumer rates higher to allow Century to get an additional break in its rate.Under Century's plan, if aluminum prices hover around the $2,100 level for the next three years, regular consumers could pay $30 million to $45 million extra to make up for Century's reduced rates.
Gorrell said the reopening of the Ravenswood plant could turn around the devastation she and others have had to endure since they lost their health care coverage
. Jackson County Development Authority Director Mark Whitley also sent a letter to the PSC this week in support of the plan. "The reopening of Century is critically important not only for Jackson County but our entire region," Whitley said. West Virginia Coal Association President Bill Raney also sent a letter of support last week. Raney pointed to state Department of Revenue estimates that a restart of the Ravenswood plant would boost power demand. Century's case before the commission is still in the early stages, but officials hope the commission will reach a decision on the rate plan by the end of August.
Karen Gorrell, spokeswoman for the retirees, submitted a formal letter to the PSC Thursday as part of Century's ongoing rate case before the commission. Gorrell was among hundreds who lost their health insurance when Century cut off coverage to retirees in 2011. Retirees and the company negotiated a deal to restore some benefits earlier this year, but the deal is contingent on the Ravenswood plant reopening. Century shuttered the Ravenswood aluminum smelter in February 2009, putting more than 650 people out of work.
The state Legislature passed a bill earlier this year that would provide $20 million in tax credits that would be passed on to power plants to get Century's power rate down. Century is also asking that consumers continue to absorb about $17.3 million in fixed costs that Appalachian Power spread to its other customers when Century closed in 2009. That, in combination with a $2.7 million contribution from Appalachian Power's shareholders, makes up a second $20 million portion of the proposal.The third part is the one that puts consumer rates on the line.
If aluminum prices were to stay below $2,500 in the coming years, Century is proposing Appalachian Power adjust other consumer rates higher to allow Century to get an additional break in its rate.Under Century's plan, if aluminum prices hover around the $2,100 level for the next three years, regular consumers could pay $30 million to $45 million extra to make up for Century's reduced rates.
Gorrell said the reopening of the Ravenswood plant could turn around the devastation she and others have had to endure since they lost their health care coverage
. Jackson County Development Authority Director Mark Whitley also sent a letter to the PSC this week in support of the plan. "The reopening of Century is critically important not only for Jackson County but our entire region," Whitley said. West Virginia Coal Association President Bill Raney also sent a letter of support last week. Raney pointed to state Department of Revenue estimates that a restart of the Ravenswood plant would boost power demand. Century's case before the commission is still in the early stages, but officials hope the commission will reach a decision on the rate plan by the end of August.
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