ST. LOUIS (KTVI) - Tuesday night the Public Service Commission is hearing public input on two cases Noranda, a Tennessee based Aluminum Company filed against Ameren Missouri in February. One is an allegation of over-charging which according to Ameren Missouri, is without merit. The second is a rate shift request by Noranda which would result in a subsidy of increases to customers.
It`s costing the City of St. Louis over $90 million dollars, that`s why the city is opposed to this plan. At stake, an increase in electric rates of around a half-billion dollars over a 10 year period.
According to Vice President of Communications at Ameren Missouri Warren Wood, he said,
"When you take a look at these two suits, you can clearly see that it`s a coordinated effort by a hedge fund company, to extract millions of dollars out of customer's pockets and send it to a hedge fund in New York.
Noranda is the second highest paying smelter plant in the country and they want to be more competitive.
Right now Noranda pays $41 dollars per mega watt an hour, Ameren Missouri claims they have been giving Noranda the lowest electric rates of any Missouri customer; more than 60% lower than residential customers, but Noranda still has to lay people off.
Noranda says that if they were to shut down, Ameren Missouri customers would lose more money in the long run.
The Public Service Commission committee will hear from both sides Wednesday and next week in Jefferson City, with a decision to be announced in a few weeks.