If Missouri's Public Service Commission approves Noranda Aluminum's request for a lower electric rate, the company will commit to improved operations at the New Madrid smelter, President and CEO Layne (Kip) Smith said Tuesday.
On the second day of the PSC's two-day hearing on Noranda's request to cut its electric bill by about 25 percent, Smith testified: "Noranda will employ a total of 888 employees, including our contract workers, at the New Madrid facility for the period of time that this rate is in effect."
That's the number of employees Noranda currently has at its aluminum smelter in the Bootheel.
During his appearance Monday, Smith had said the company might consider making commitments, although "commitments to employment is not a usual practice."
He told the commissioners Tuesday the two promises were "simple - but, we believe, effective - commitments."
The second promise involved money.
"We will commit to spend a total of $350 million in capital expenditure, dedicated solely for the New Madrid facility over the 10-year period of the rate design," Smith said.
The company says it pays the second-highest electric bill of the nine aluminum smelters still operating in the United States, and it needs to have its bill cut from the current $41.44 it pays for each megawatt hour of electricity used, to $30/mWh.
If not, the company has said, it likely will have to close the smelter.
Noranda is the single largest customer of Ameren Missouri, the state's largest regulated electric utility. Because it is a high-volume electricity consumer and doesn't have a complicated system to deliver its power, Noranda already pays the lowest rates of any Ameren customer.
Smith said the commitments also would be based on the commission granting Noranda's request to be limited to no more than a 2 percent increase any time the PSC grants Ameren Missouri higher rates - no matter how high that increase might be - and to be free from any rate increases caused by Ameren using an adjustment clause when its fuel costs go up.
The Noranda proposal also would have the commission raise all other customers' rates to keep Ameren earning money at the same rate it currently does.
Smith told the PSC Tuesday that Noranda's keeping its promises would acknowledge a favorable decision.
"We understand the commitment that would be made to Noranda," he testified, "and deeply appreciate the impact of what rate-relief would do for us.
"And we believe that these commitments would support us in creating a sustainable business in Missouri."
Most of Tuesday's hearing involved various witnesses who have studied Noranda's request or aspects of its business, and provided an analysis of that study.
As with Monday's hearing, some comments favored Noranda's request, while others supported Ameren Missouri's and others' opposition to it.
The PSC has said it expects to make a decision by early August.