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Ormet May Close By End of October

Rate reduction on electricity is central issue

August 10, 2013

HANNIBAL — Roughly 900 people could be in the unemployment line by November if Ormet Corp. follows the provisions of the Worker Adjustment and Retraining Notification Act notice....

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(17)

LucidNitemares

Aug-13-13 1:28 PM

AEP made $744M in profit during the first 2 quarters this year already. They've made $1.9B in 2011 and $1.3B in 2012 (decrease was "due to lagging industrial demand." Coincidentally, Ormet shut down 1/3 of its operations last year due to price increases in electricity). PUCO, who is supposed to be the regulating committee just keeps letting them raise their prices. When the "unique arrangement" or contract was made for power in 2009, power was just $39 per MWh. Now it has raised by 58%! When you consume as much electricity as the city of Pittsburgh, that increase is impossible to overcome for any business. Especially when you are being charged more per KWh than nay smelter in the US and higher rates than the global average for smelters.

Check your facts Ragnar... Alcoa is losing money in their smelters too!

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nobama

Aug-10-13 7:51 PM

Call it AEP greed...let's see Ormet is getting power for less than 4 cents per kilowatt....power plants are closing equals less power on the grid causing the cost will go up. We are paying 6.99 cents per kilowatt. Just at today's rates AEP will have a 57% profit increase by letting Ormet tank....And people will still have to buy their power. As for me anywhere I can convert to gas I'm doing it

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BigMike

Aug-10-13 5:18 PM

For a good laugh go to the BlueGreen Alliance (A 'coalition'of labor and environmental groups):

They ask its readers to:

Thank President Obama

Send President Obama a note thanking him for laying out a plan for addressing climate change and creating quality jobs for American workers. Join Us Today Join the growing number of people who are working to create good jobs in the 21st century economy.

All brought to you by the AFL-CIO and other waterboys

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usingcommonthought

Aug-10-13 4:49 PM

Hey Folks how's Obama working for ya? Vote democrat again! They're for the workin man! Close coal down:Duh workin man job= raise electric as we all go green and dark! No the workin man doesn't have to use so much gas gettin to work now! Good Job Obama!

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Gobucksnreddevils

Aug-10-13 4:22 PM

Another unintended consequence of Sen. Brown and the Obama administration. You shut down cheap coal fired plants and rely on higher cost electricity then industry won't be able to afford the cost and manufacturing shuts down. They just don't get it,

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livinrt

Aug-10-13 3:23 PM

ormet has been a tremendous asset to the local economy and would like to continue to be.they have modernized since day one. we need to fight for jobs in our back yard. aep will not absorb all the cost of the war on coal, we will.

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zip064

Aug-10-13 2:24 PM

maybe the union will offer to help pay the bill.

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BurningUp07

Aug-10-13 1:49 PM

AEP is scared of losing them to the deregulated market I can guarantee you that's the crux of the matter. I'm not sure how the PUCO agreements work in OH but hopefully Ormet can stop taking it up the arse from AEP.

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1a2b3c

Aug-10-13 1:14 PM

Don't people realize if Ormet shuts down, AEP will not lose money. They'll raise everyone's bills to make up for what Ormet is not paying them. But that's just the beginning of it. 1000 more people in the area will be out of work. That will affect the local economy. And they wonder why younger ones are leaving the area. Why not?

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Quasar

Aug-10-13 1:06 PM

I hear the rates for electricity and the wage for hourly employees is much lower in Mexico. Welcome serfs, to the new world order.

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BigMike

Aug-10-13 12:59 PM

"OH is deregulated can't they shop around for a better rate?" This is what they are seeking to do. They are locked in to a purchase agreement approved by the PUCO. They want to build their own local gas fired power plant and in the meantime purchase their power in the deregulated electric market. Of course this means AEP would forever lose its largest Ohio customer.

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BigMike

Aug-10-13 12:50 PM

" Ormet's case just tells me these electric giants have the PUC in their back pocket. "

In fairness to the PUCO they are only executing the legislation mandated by the Ohio State legislature . Much of the increase now are from fuel cost charges (Coal prices were very high) the legislature deferred until later years, which is now being paid by all consumers including Ormet. Other electric bill addons include for Green Energy surcharges and infrastructure improvements (electric reliability)

"If Alcoa can profitably produce aluminum in this current market, why can't Ormet? "

Alcoa is losing money but can absorb more of the losses since it is more diversified, has global operations, and is not forced to buy electricity from AEP Comparing Ormet to Alcoa is akin to comparing a mom and pop grocery store to Wal-Mart.

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BurningUp07

Aug-10-13 10:24 AM

OH is deregulated can't they shop around for a better rate?

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Snoopy

Aug-10-13 9:27 AM

AEP has been raising my rates almost every month. It is always something. Can't turn off anything else. This country is going backwards instead of forward

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Johnson2616

Aug-10-13 8:54 AM

I'd like to see a closer examination of the rate AEP is charging Ormet. Personally I think AEP along with First Energy are gouging everyone and talk that everyone's electric rate could go up if a reduction is made in Ormet's case just tells me these electric giants have the PUC in their back pocket.

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acousticportal

Aug-10-13 7:51 AM

Yea yea yea...same old story, different year...

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Ragnar

Aug-10-13 7:28 AM

What's next? Relief on water bills? Relief on gas bills? How about relief on freight bills? Just pass that cost onto 100,000 other businesses and individuals and no one is the wiser.

Ormet, like Wheeling-Pitt and Weirton Steel before it, was propped up by taxpayers, directly or indirectly, for far too many years.

Let the market dictate. If Alcoa can profitably produce aluminum in this current market, why can't Ormet?

And if they cannot profitably manage their business then their business should cease to exist.

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