The recent cooperation between Ameren Missouri, the state's largest electricity provider, and its single largest customer, Noranda Aluminum, this week was extended to the Missouri Legislature.
In a two-page letter, the presidents of both companies ask lawmakers to support "more stable and predictable electric rates" for large and small Missouri businesses and residential customers, so they can "enjoy the benefits of a modern, more dependable electric grid and energy infrastructure."
The Tuesday letter addressed to the General Assembly, starts with the premise that, "When it comes to our economy, Missourians are increasingly seeking stability and predictability."
Ameren Missouri President Michael Moehn and Noranda CEO and President Kip Smith think there is an opportunity to pass legislation to stabilize energy costs.
"For too long, gridlock and stalemates have dominated energy policy discussions in Jefferson City," the two wrote. They acknowledged both companies rare have seen eye-to-eye on a comprehensive state energy policy and "take some ownership of this prolonged stalemate."
Because of that stalemate and the national economy, the letter said electric rates have seen series of unpredictable spikes over the last eight years as infrastructure has aged faster than it has been replaced.
Much of that grid is more than 50 years old and needs to be updated to meet 21st century needs and expectations, the letter reminds lawmakers, noting most other states have already done so.
The companies report their support for legislation allowing electricity providers to install "smarter grid technologies which help prevent power outages and restore power quicker should the lights go out," as well as expanding "the Missouri Public Service Commission's oversight responsibilities to include profit caps, infrastructure plan submittals, performance metrics and rate caps for more stable and predictable electric rates."
Noranda Aluminum's New Madrid County smelter uses 10 percent of Ameren's power production, but its current energy costs are not competitive in the global aluminum market," the letter said. "If Noranda's energy costs are not reduced to a globally competitive level, the smelter is unlikely to restart production" after it shuts down next month.
Two of its three production lines were shut down in January because an internal circuit-breaker-like device shut down and couldn't be restarted quickly enough.
When in full operation, the New Madrid smelter employs up to 900 people - and those jobs end when the plant shuts down.
Smith and Moehn ended their letter urging lawmakers to support the legislative ideas as much as the two companies do.