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Ormet, AEP Clash At Capital

Aluminum maker advised to seek help from W.Va.

August 28, 2013

COLUMBUS, Ohio — Mike Tanchuk wants Ormet Corp....

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(18)

electrichead03

Aug-29-13 4:45 PM

I hope ormet gets the help...we need to keep jobs around here!

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dyingov

Aug-29-13 4:03 PM

AEP generates more power than is needed for it's "normal" customers. They have been a wholesaler in the electric business since the early 60's. The next problem could be when they shut-down some of those old nasty coal fired plants, might not have the problem of being a wholesaler any longer!

Should Ormet pay the market price or get a subsidy from the other users?

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conservelr

Aug-29-13 1:14 PM

I do follow his input; if I didn't, then I wouldn't have any, as you say, "negative" comments about his input, as I would not have a basis for my negativity. Once he suggested that all the W.Va. employees of Ormet should be handed a pink slip and that would solve the problem. Now he says Ormet does nothing for the state of W.Va. Granted, I do not follow all of his posts in all other topics, and maybe when it comes to different matters, we would agree. However, I absolutely do not agree with him in this matter.

Has anyone ever taken into consideration what will happen when AEP's largest customer shuts down? If you are worried about rising rates from giving Ormet a break over the course of two years, until they are able to get their own power plant up and running, perhaps you should also conduct some research on how much more AEP customers will have to pay if Ormet shuts down.

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dyingov

Aug-29-13 10:59 AM

conserveler, Why all the negative comments about what WWUthinking's post(s)? This is a blog and different opionions are welcomed! If you follow his input he actually has some very good points.

Since you are telling us that WV is being benefitted by Ormet are you also advocating that WV peeps should help subsidize the electric rates for Ormet?

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conservelr

Aug-29-13 9:43 AM

@WWUthinking

You make no sense whatsoever. You say in your comment that Ormet does nothing for West Virginia whatsoever, but in a different article, you commented and advised that Ormet give a pink slip to all their West Virginia employees. Furthermore, I do not see how you can say that Ormet does nothing for West Virginia. That's absolutely ridiculous. Am I seeing things? Do people not cross the bridges from Ohio to West Virginia and vice versa all the time? Do people from Ohio not shop in the Highlands? Or do they not come from Monroe County to Wetzel County, to New Martinsville?

Go back to the drawing board, and next time, please do not post ignorant comments about champagne, strawberries, etc. That's just tasteless and adds nothing to the conversation.

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atoddh

Aug-28-13 10:46 PM

rag: There really is going to be a steep decline when all these value added jobs finally dry up in the OV: steel, coal, Ormet etc etc.

There will be nothing left to support a service economy(eg Highlands.)

No effort is being made at light manufacturing which was the intention of the Highlands funding.

Mollohan may have been able to direct some DOD work to the OV via Appropriations. McKinley has no seniority.

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1whoworks

Aug-28-13 8:09 PM

For those of you who don't understand as atoddh said in the first post the problem isn't AEPs or the publics. For those talking about AEPs profits, calculate it out in earnings per share and what the actual margin is. Large companies need to generate large profits just to pay their shareholders a reasonable rate of return. Also, look at the balance sheet if you know how to read it and find that AEP is gaining profit through CUTS! A novel idea the Ormet should have done years ago.

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Ragnar

Aug-28-13 6:59 PM

There are two points to be made here.

First, Ormet is a private business and, as such, has an obligation to pay its' own bills. They have already stopped paying into their pension plan and are planning on dumping their liabilities onto taxpayers through the PBGC. If you can't make your business model work, you go out of business. Very simple.

Second, those of you crying about AEP's "ridiculous" profits-are you also crying about Google, Apple, Microsoft or Berkshire Hathaway? No? AEP is not that profitable, believe it or not.

It comes down to this-Ormet has less than 1,000 employees, a market cap of $160,000, pays zero dividends and gets tens of millions per year in tax handouts.

AEP employs 18,000, has a market cap north of $10 billion, pays in excess of $1 billion per year in taxes and dividends and is heavily regulated.

You take it for granted that you flip a switch and your lights come on. It takes a lot of work, and capital, to make that happen.

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conservelr

Aug-28-13 3:31 PM

WWUthinking, do you ever post any comments to these articles that actually make sense and are beneficial to the debate? Perhaps if you loathe West Virginia so much, and don't want West Virginians working in your state (as you once referenced), you should not read a newspaper that is stationed in this state.

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atoddh

Aug-28-13 12:02 PM

folks: If the new buyers believe Ormet has upside, they should foot the electric bills and the cost to build the proposed power station. This is a private commercial project. It is not a public issue.

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atoddh

Aug-28-13 11:59 AM

craig; The situation at Century was identical. Century wanted to shift their electric costs to the public. Their request was denied. It was judged: the public was not responsible

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dyingov

Aug-28-13 9:56 AM

in the late 50's Ormet built and OWNED 2 of the 3 units at Kammer plant! AEP/Kammer was required to provide x-number of Megawatts per month or pay a penalty. In the early 2000's they sold them to AEP. Decisions have consequences!

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CraigL50

Aug-28-13 8:18 AM

WV not helping Century was a completely different situation due to the fact that power in WV isn't de-regulated. Allow Ormet to shop the market in Ohio to find the best price until they build their own power plant and the problem would be solved. Don't allow them too and everyone loses including AEP customers because if they lose Ormet as a customer, everyone else will pay for their loss.

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Capitalist

Aug-28-13 7:56 AM

This is the publics problem, Ormet is a large user of AEP's product. They are gone and who will pay higher rates ? How will Switzerland of Ohio Schools survive? Who will spend money in Hannibal or New Martinsville ?

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electrichead03

Aug-28-13 4:47 AM

Dude dont you understand we need to keep jobs...not say heck with it! I mean AEP only made 338 million in 3 months! Whens it enough? They could help then hopefully ormet can get there own power plant then they will be out of AEP's hair..seems like that is what they want..so everyone wins!

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atoddh

Aug-28-13 12:51 AM

The economist is very correct. The loss of Ormet will create many other losses; as did the steel and glass closings in the OV.

Projects such as the State funded Fort Henry Industrial Park for light manufacturing were intended to offset these kinds of closings. The County elected to misuse the funds for a retail mall instead.

Tens of millions in Byrd money was squandered by WNHAC that could have been used for meaningful job creation. No jobs were created.Many were lost actually.

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atoddh

Aug-28-13 12:43 AM

WV did not help Century which was a similar situation. Century closed. They had proposed a similar plan in which the public would contribute to their electric costs.

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atoddh

Aug-28-13 12:40 AM

1. Why does Ormet think AEP should save them?

2.The union people need to ask their members -not AEP- to take cuts to pay the electric bill.

3.The situation is not AEP or the public's problem.

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