Mid-Missouri lawmakers unhappy with PSC decision

Four Jefferson City area lawmakers said Wednesday the Public Service Commission made a bad decision in its Ameren Missouri rate case ruling.

But two state senators from Southeast Missouri said it was the right call.

Their main focus was the same - the PSC's decision to reduce the costs Noranda Aluminum pays for the electricity it buys from Ameren for its smelter in New Madrid, in the Bootheel.

The company already pays the lowest rate per megawatt hour of any customer on Ameren's system.

"I think it's wildly inappropriate for the PSC to give a bailout to Noranda on the backs of working Missourians and small business owners, and Ameren's customer base," Rep. Jay Barnes, R-Jefferson City, told the News Tribune.

Sen. Jeanie Riddle, R-Mokane - whose district includes Ameren customers affected by the ruling and electric cooperative customers who are not - added: "My senior citizens, my veterans - everybody - all of my Ameren customers will pay a higher rate, now, because of the decision by the PSC.

"I think it's wrong. It's terribly wrong."

Riddle and Sen. Mike Kehoe, R-Jefferson City, recently sent letters to Gov. Jay Nixon and the PSC, arguing a statewide economic development package would be a better way to help Noranda than the lower rates it sought from the PSC.

"This whole issue is balancing economic development for a company that has a lot of employees, in an area of the state that it's very important to," Kehoe said. "But, if we're going to give them cash breaks that help their bottom line - that end up costing residential ratepayers in our part of the world, as well as the eastern part of the state, more money - that's a discussion that we need to have (in) this building, because it is an economic development package that's tied to jobs."

Rep. Travis Fitzwater, R-Holts Summit, told the News Tribune: "It's pretty frustrating that we have an increase for all (Ameren) ratepayers in the state, while one large corporation gets a reduction."

But Sen. Doug Libla, R-Poplar Bluff, whose district includes Noranda's smelter, said the PSC did the right thing for Noranda because of "the international competition that they (Noranda) have in the commodity market and the pricing for their goods is up and down."

He also noted "Noranda is a big employer in Southeast Missouri and has been there for several generations."

Sen. Wayne Wallingford, R-Cape Girar-deau, has a number of Noranda employees in his district, just north of Libla's.

Both he and Libla noted much of the region has high unemployment - and losing Noranda would be a big blow.

"I'm sure Tennessee or Arkansas would love to have them move over there," Wallingford said. "If we lost that, it would affect my area significantly, and it's not just those families, but now they don't have the money to go to the Mom-and-Pop restaurants and stores and you name it.

"It would have a significant impact that would be hard to recover from."

However, Kehoe and Barnes both said Noranda's threat to close the New Madrid smelter appears to be more smokescreen than reality.

"If you compare the statements they've made in their official reports to the Securities and Exchange Commission with the comments they've made before the PSC, they're not consistent," Barnes, a lawyer, explained. "If you lie to the Securities and Exchange Commission, you are subject to imprisonment and civil lawsuits.

"If you lie to the PSC, you are subject to none of the above. I think, if you're going to try to determine where they are telling the truth, I would say that Noranda's probably telling the truth to the Securities and Exchange Commission - before they're telling the truth to the PSC."