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Blame Traded Over Ormet

Lawmakers claim governor didn’t do enough for company

October 8, 2013

HANNIBAL — Legislators Lou Gentile and Jack Cera blame Ohio Gov....

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(28)

sounder

Oct-09-13 11:38 AM

So Gregor, is West Virginia really a state, a mining claim, a center for processing toxic materials/metals that no one else wanted nor wants to see land within their jurisdictions? Ormet is just another aluminum facility, like others, which have closed across the U.S. in the past decades. Didn't anyone see this coming a long, long time ago? It isn't as though West Virginia was located somewhere between Butte, Montana and somewhere in sparsely settled Wyoming--the state is less than 300 miles from Washington, D.C. Did the late Senator, Robert Byrd, keep the state alive by poaching miscellaneous Federal facilities, allowing for some time of employment? The Western landscape is littered with the small towns, the empty places that were once those up and coming mining towns. What makes West Virginia any different in the 21St Century? Why are so many small villages, towns, etc. kept alive on some type of life support simply because they have always had a spot on the map?

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electrichead03

Oct-09-13 9:43 AM

Lol that was stupid Gregor and not true

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electrichead03

Oct-09-13 12:58 AM

Why couldn't they let us out of the contract if they were losing so much money to ormet.I know if I was losing money like that..I would get out..but no..when ormet was struggling and needed help...AEP posted they made 338 million in a quarter..like I said the rates would have went up anyway..whether we ran or not. I think they should have helped to keep the people working and get the power plant in..then AEP would never have to worry about us again. Then again....it still might happen

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CoYoTe

Oct-09-13 12:38 AM

Electrichead03.....you said it what they told you at the plant. They didn't bother to tell you that they weren't paying for pensions and electricity. They had already laid people off so where was the money going? Now that people don't have a job and money is gone can everyone tell AEP how much they are going to pay for their electric? AEP deferred their payment a year ago too. AEP and PUCO reduced their rate. Instead of laying off higher paid office staff that is not needed they close down. Put the blame where it belongs. Ormet management. I am sorry about the jobs lost but it could have been prevented

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electrichead03

Oct-08-13 11:44 PM

Well all I know is what I was told in the plant..we don't have to worry about it now.AEP can now raise the rates even higher then if we would have ran and sell the power for less then what we were asking on the grid. 1000 people out of work and with the trickle down..1600 people affected, along with the school district and small businesses taking a hit.now everyone should be happy! Nice job governor, PUCO, and AEP! NOT!

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Ragnar

Oct-08-13 10:32 PM

In a nutshell, here is what Ormet proposed.

First, let's dump our pension obligations on the PBGC.

Second, let's stop making contributions to the VEBA and to the salaried employees retirement fund.

Third, let's get our total maximum power discount, scheduled for the next 6 years, within the next 27 months.

Fourth, let's demand that AEP sell us power at rates WE want to pay, until such time as we can build a natural gas plant and drop AEP as a provider. Our business is very important to AEP-until we leave.

Fifth, let's get $145 million in income tax handouts, $300 million in state handouts and millions in subsidies from the state of Louisiana.

Sixth, and finally, let's file for bankruptcy, stiff our creditors and sell our assets to Wayzata, which will put up no money and can essentially sell off all our assets for a huge profit, after paying back the minimal amount of debt they are taking on.

Awesome!

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Ragnar

Oct-08-13 10:24 PM

From Ormet's bankruptcy filing:

"The current Power Agreement provides the Debtors with up to $120,000,000 in discounts between 2013 and 2018. These discounts include up to $44,000,000 in 2013 and decreases by $10,000,000 each year thereafter until the discount ends. The Debtors have had discussions with AEP and State of Ohio on proposed modifications to the existing Power Agreement that will reduce the time of the Power Agreement and condense all discounts into 27 months."

In the years 2009-2011, Ormet's post tax income was a cumulative $145 million higher than its' pre-tax income. Where did that money go?

Ormet owes tens of millions in pension liabilities that it skipped.

Ormet asked for an extension of 30 more days in which to finish filing its' bankruptcy schedules, due to the "large, complex nature of the business".

How do companies 100 times the size file their paperwork on time?

Ormet was an expensive middleman, nothing more.

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Brian26003

Oct-08-13 10:13 PM

what about the power plant the gov and his friends at puco say go ahead and build the power plant BUT you cant do anything with the power in till 2018 so what is up with that

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electrichead03

Oct-08-13 7:49 PM

Btw..our product is top of the line!

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electrichead03

Oct-08-13 7:47 PM

They are buying on the open market like we want to do! Duh! You have no clue. Electric is everything to an aluminum smelter.why don't they just let us out of the contract..then we will make it.we can then buy power at market price...then we save jobs..thats main thing..keep people working!

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Ragnar

Oct-08-13 7:05 PM

Alcoa, ATI, RTI, Armco, Universal, Kenanmetal, Carpenter, Timken, US Steel, AK Steel, Nucor, Dow, Dupont, Ford and a thousand other manufacturers have managed to stay in business while dealing with rising energy costs.

Why can't Ormet?

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Ragnar

Oct-08-13 7:03 PM

electrichead03

Your argument is laughable. ANY business could make the same argument.

"If it wasn't for cheap steel imports."

"If it wasn't for high quality Japanese cars."

"If it wasn't for Wal-Mart."

"If it wasn't for our pensions/health care costs."

"If it wasn't for the three restaurants that opened down the street..."

ETC ETC ETC

There are a thousand things that must happen for a large business to be successful. Blaming your electricity costs is ridiculous. If you can't provide a product or service that people want, and are willing to pay for, at a price that meets or exceeds your cost of providing it, you go out of business.

Ormet was a dead man walking before AEP came along. Remember the pension dump? Strikes? Previous bankruptcy?

No, never! It MUST be AEP's fault.

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justme4you

Oct-08-13 5:58 PM

Take a look at this article--he knows what he is talking about. It is out of Ormet's control--all AEP and PUCO. All Ormet wanted was out of a contract and to have the ability to purchase electricity on the open market. ***********forbes****/sites/williampentland/2013/10/06/electric-rate-hikes-hobble-ohios-industrial-giant/

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Brian26003

Oct-08-13 3:59 PM

AEP should not raise no ones electric bill may be they should lay off

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electrichead03

Oct-08-13 3:33 PM

The business was not a failure. ..AEP raised our price so high we couldn't pay it along with low metal prices. The business itself was not a failure! If they would have gave us the market value of the energy then over 1000 people would still have a job!

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Brian26003

Oct-08-13 3:26 PM

AEP should not raise no ones electric bill may be they should lay off

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dolphin3111

Oct-08-13 2:22 PM

The government didn't do this... the government didn't do that.... blah, blah, blah, blah, ... shut up.

The business is a failure, period.

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richardwhee

Oct-08-13 11:42 AM

BLAME! BLAME! BLAME! Now that it's about over, it's everyone's fault but the economy nd greed. Unions, power company, taxes etc. People saw it coming, but depended on the other guy to prevent it.

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ShempH

Oct-08-13 10:55 AM

300 million isn't chump change, it's a very generous deal.

On a side note: any person(s) agreeing to raise AEP customers rates one cent to offset this sale loss should be shot!

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SpankysLastDance

Oct-08-13 10:33 AM

Why would they blame Kasich when they know darn well that it's BUSH"S fault!!!

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Johnson2616

Oct-08-13 8:31 AM

Kasich's comments concerning out-of-state workers riles me; his Ohio cities have no problem collecting city income tax from people working in Ohio but living in another state. What part of the "no taxation without representation" concept does he fail to understand?

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nobama

Oct-08-13 8:29 AM

The blame game....we did to ourselves...again....gave all our jobs away by our votes and continue to give them away every time we buy non US made goods. When this old valley was booming did any one ever hear of plants going under because of power costs? I don't think so....then it acid rain, then SO2, and "global warming" and the list goes on..our steel went, our coal went, now Ormet...all while we sat on our hands and watched. We are not victims..we're idiots for allowing it.

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mikeyd

Oct-08-13 8:09 AM

look at what mismanagement is also doing to our government.the smart people are going to have to wise up.

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Highland

Oct-08-13 7:24 AM

Big labor-funded Gentile and Cera should look closer to home for the major contributing factors to Ormet's demise. Kasich is not one of them.

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SMART1

Oct-08-13 6:45 AM

Bring back Emmett Boyle! Or, Bob Murray! What Ormet needs is some good Republicans to run the place! Also, Governor Kasich didn't set electric prices! Cera & Gentile are big time Obama backers! Will be more job losses in coal with Obama & his war on coal'

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