Legislative negotiations continue over smelters' power supply

Mar 6, 2013 Read more: Evansville Courier & Press 42

With time in the 2012 Kentucky General Assembly running out, negotiations were ongoing in Frankfort on Wednesday to revise a bill to enable the Century Aluminum and Rio Tinto Alcan aluminum smelters to buy cheaper electricity and help keep them in operation.

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smelterman

Duluth, GA

#1 Mar 7, 2013
I urge our legislators to pass hb 211 and senate bill 71. If century aluminum and alcan sebree smelters close it will effect thousands of kentuckians. I work at century and i am also a meade county recc customer. If the smelters close i will lose my job and my electric rates will go up a lot. If the smelters stay open i will have a job and my electric rates will go up. It should be a clear decision for the ones who govern kentucky. Vote yes for hb211 and senate bill71!
Simple Man

Owensboro, KY

#2 Mar 8, 2013
smelterman wrote:
I urge our legislators to pass hb 211 and senate bill 71. If century aluminum and alcan sebree smelters close it will effect thousands of kentuckians. I work at century and i am also a meade county recc customer. If the smelters close i will lose my job and my electric rates will go up a lot. If the smelters stay open i will have a job and my electric rates will go up. It should be a clear decision for the ones who govern kentucky. Vote yes for hb211 and senate bill71!
Smelterman I'm not sure what side of the fence you're on at century and it really doesn't matter. People like you can't see the forest for the tree which rhymes with me,(only thinking of yourself regardless of the effects to others). It's your me-me-I syndrome that century gets employees running to Frankfort in the name of greed & more for them. I too work at century and I have yet to see a contract they live up to: TN barge company, ravenswood retirees, Big River unwind, and the CBA at Hawesville. Why should Kentuckians pay more so century can profit more than they already are?
smelterman

Duluth, GA

#3 Mar 11, 2013
Simple Man wrote:
<quoted text>Smelterman I'm not sure what side of the fence you're on at century and it really doesn't matter. People like you can't see the forest for the tree which rhymes with me,(only thinking of yourself regardless of the effects to others). It's your me-me-I syndrome that century gets employees running to Frankfort in the name of greed & more for them. I too work at century and I have yet to see a contract they live up to: TN barge company, ravenswood retirees, Big River unwind, and the CBA at Hawesville. Why should Kentuckians pay more so century can profit more than they already are?
Im a electric rate payer also. I know that if century and alcan close everyones rates will go up even more than if the two stay open. Either way there will be a rate increase! Why not save several thousand jobs?
tired of century

United States

#4 Mar 12, 2013
Why not have Century honor its contract? Oh wait they never do!
people are stupid

Hawesville, KY

#5 Mar 12, 2013
Because if they HONOR it they will go bankrupt!
Also big rivers has been raising rates on them! Its not just century this time around!
really

United States

#6 Mar 12, 2013
No Century actually paying less then what the contract states. And Big Rivers hasn't risen any rates! Century is just mismanaged!
Just the facts

Owensboro, KY

#7 Mar 13, 2013
Under the bill, the smelters would be entitled to a “market-based rate” which would be priced at market plus the cost to deliver energy to the smelter including transmission charges and other related charges. Under market-based rate service:
1. Big Rivers would continue to operate its current power plants to supply Century. Big Rivers would not close any generation—as it presently plans to do—thus saving approximately 200 jobs at Big Rivers.
2. Because Big Rivers continues to operate coal-fired plants to serve Century, coal jobs would be saved. In particular, Kentucky coal jobs would be preserved as the bill provides a financial incentive to Kentucky coal suppliers to supply Big Rivers and an incentive for Big Rivers to buy Kentucky coal and replace about 1.8 million tons of non-Kentucky coal it currently uses.
3. Other ratepayers would receive a credit from coal severance taxes of about $5 million/year.
4. Any additional cost to Big Rivers solely due to this bill ( but not costs due to the termination of prior power contract) would be determined by the Commission and borne by Century.
5. With power at a market-based rate, Century could continue to operate, saving smelter jobs.
6. Century would pay an additional rate credit to customers if Century’s profits exceeded a certain threshold.
7. Overall other ratepayers would see lower rates under HB211—as much as $24 million-- than if the smelters closed and Big Rivers closed generation to reduce its costs.
Big Rivers plan is for smelters and power plants to close, rates to go up, coal jobs to go away. Please look for the facts and don't base your comments on things from the past. This is happening now.
brickhouse

United States

#8 Mar 13, 2013
Just the facts wrote:
Under the bill, the smelters would be entitled to a “market-based rate” which would be priced at market plus the cost to deliver energy to the smelter including transmission charges and other related charges. Under market-based rate service:
1. Big Rivers would continue to operate its current power plants to supply Century. Big Rivers would not close any generation—as it presently plans to do—thus saving approximately 200 jobs at Big Rivers.
2. Because Big Rivers continues to operate coal-fired plants to serve Century, coal jobs would be saved. In particular, Kentucky coal jobs would be preserved as the bill provides a financial incentive to Kentucky coal suppliers to supply Big Rivers and an incentive for Big Rivers to buy Kentucky coal and replace about 1.8 million tons of non-Kentucky coal it currently uses.
3. Other ratepayers would receive a credit from coal severance taxes of about $5 million/year.
4. Any additional cost to Big Rivers solely due to this bill ( but not costs due to the termination of prior power contract) would be determined by the Commission and borne by Century.
5. With power at a market-based rate, Century could continue to operate, saving smelter jobs.
6. Century would pay an additional rate credit to customers if CenturyÂ’s profits exceeded a certain threshold.
7. Overall other ratepayers would see lower rates under HB211—as much as $24 million-- than if the smelters closed and Big Rivers closed generation to reduce its costs.
Big Rivers plan is for smelters and power plants to close, rates to go up, coal jobs to go away. Please look for the facts and don't base your comments on things from the past. This is happening now.
Why can't regular consumers just be allowed to shop for market-based rates rather than being forced to pay for electricity to a monopoly?
Just the facts

Owensboro, KY

#9 Mar 13, 2013
That is how it works in KY. Territorial Monopoly for suppliers of electricity.
really

United States

#10 Mar 13, 2013
As of yesterday Century sent the exact same term sheet to Big Rivers as it had two weeks earlier. They refuse to negotiate and want Big Rivers and Kenergy to just give in to their terms. Which I can assure they will not do!. If they want to keep the smelter open. Then they need to get serious and negotiate. Not dictate!
Just the facts

Owensboro, KY

#11 Mar 13, 2013
A term sheet is supposed to go back and forth. If Big Rivers has the term sheet, they should revise with their terms. That is how a negotiation is supposed to work. Sounds like the ball is in BR court now.
really

United States

#12 Mar 13, 2013
Yeah it is but Century is supposed to at least put forth effort to negotiate and not just say we want this and if we don't get it then we will close!
Century Employee

Owensboro, KY

#13 Mar 14, 2013
brickhouse wrote:
<quoted text>
Why can't regular consumers just be allowed to shop for market-based rates rather than being forced to pay for electricity to a monopoly?
Because ky has a monopoly on power. They trap you into buying local power at whatever cost it is. I too thi k we should have the right to pick n choose who we get or power from..
Century Employee

Owensboro, KY

#14 Mar 14, 2013
really wrote:
Yeah it is but Century is supposed to at least put forth effort to negotiate and not just say we want this and if we don't get it then we will close!
As a matter of fact the revised bills would actually lower cusomers rates. Regardless of these statements would you rather have all the companies involved shut down? Think about what it would be like when 6000 people are put out of work at one time.... It would be devastating... Think People Think...
really

United States

#15 Mar 14, 2013
Big Rivers has stated that they will allow Century to go to the open market. They even said they would help with the conversion to MISO. But now Century wants the rights to use Big Rivers power grid and lines for almost free? Century thinks that the 112, 000 people should pay for them breaking the contract with Big Rivers. Century is as always being shady. And they won't garentee how long they will stay open even if the bills are passed. So exaxtly what is Big Rivers and Kenergy supposed to do? Be held hostage by Century?
Just the facts

Owensboro, KY

#16 Mar 14, 2013
really wrote:
Big Rivers has stated that they will allow Century to go to the open market. They even said they would help with the conversion to MISO. But now Century wants the rights to use Big Rivers power grid and lines for almost free? Century thinks that the 112, 000 people should pay for them breaking the contract with Big Rivers. Century is as always being shady. And they won't garentee how long they will stay open even if the bills are passed. So exaxtly what is Big Rivers and Kenergy supposed to do? Be held hostage by Century?
Century will pay what is fair. They have said this all along. Did you know that Century has paid over $600,000 so far just to negotiate with Big Rivers. Big Rivers would not negotiate unless Century paid for their DC attorneys. If Century were not serious about negotiating, why would they pay this money. The Bill is for 5 years and Century can get a power at an affordable price during that five years. Why would Century close during the 5 year window that they have affordable power? How is Big Rivers doing with is best for ratepayers? Do you honestly think they can sell power to anyone at $52 when it is on market for $35 or less? They should support the bill and reduce the burden on the ratepayers and keep their power plants open. Save all the jobs and use KY Coal. Ask Big Rivers and Kenergy who they have lined up to pay those prices right now. It is a list of 0.
Century Employee

Owensboro, KY

#17 Mar 15, 2013
People this is not something to be speaking out of your ass over.. Do some research I mean REALLY! Who honestly believes it would be best for both companies to shut down operations? Its ludacris. Insane. The new revised bill century is trying to get passed at this moment binds them to any and all other costs burdening the switch to market power.. They have also agreed to put 10% of any profit over $ 20, 000, 000 back to the rate payers, thus lowering existing rates. In short the new bill would Lower rate, NOT any increase AT ALL! If you REALLY dont know what you are talking about DON'T SPEAK! Or at least take the time to check your facts! REALLY!
really

United States

#18 Mar 15, 2013
10% of a profit that isn't even garenteed to have and then has to be 20 million before they even give back. Trust me rates are going up due to Century. 112, 000 customers are going to flip the bill to keep Century open. The switch over costs are not the comcern its the lose of money due to the contract not being abided too. Big Rivers is a COOP.Thus All Profit goes back to the customers. Not 10% over 20 million that Century can just say the didn't make. And everyone knows how good Century is at keeping its word!.Century is a joke they on. Care about profit. And could care less about its employees or community. See Ravenswood WV. And its retiree benifits that were taken away!
really

United States

#19 Mar 15, 2013
Century gave word to Big Rivers on Aug 20th that it was shutting its doors in one year! Not hey can we talk or we need some help. Instead they started slanderous campaign on the radio and newspapers against Big Rivers. Which Big Rivers never resoonded to. So Big Rivers did what it had to do it started looking for other customers for the power. Century expected Big Rivers to come to them and say ok we give in. Guess what that isnt gonna happen. Century knew what the rates were gonna be for 15 a years ahead. And received over 59 million dolars to sign off on the deal just so EON could get away from the smealters. Big Rivers has the excess power that Century uses sold in 2014 and 2015. Big Rivers can't wait around for Century. It has other customers. Century tried to bully its way into lower rates instead of good faith negotiations. Thus we have what we have here now. Century ttying to dictate the rules to the government and the rate payers! Another shady move by a very SHADY company!
Energy Efficient

Owensboro, KY

#20 Mar 15, 2013
really wrote:
Century gave word to Big Rivers on Aug 20th that it was shutting its doors in one year! Not hey can we talk or we need some help. Instead they started slanderous campaign on the radio and newspapers against Big Rivers. Which Big Rivers never resoonded to. So Big Rivers did what it had to do it started looking for other customers for the power. Century expected Big Rivers to come to them and say ok we give in. Guess what that isnt gonna happen. Century knew what the rates were gonna be for 15 a years ahead. And received over 59 million dolars to sign off on the deal just so EON could get away from the smealters. Big Rivers has the excess power that Century uses sold in 2014 and 2015. Big Rivers can't wait around for Century. It has other customers. Century tried to bully its way into lower rates instead of good faith negotiations. Thus we have what we have here now. Century ttying to dictate the rules to the government and the rate payers! Another shady move by a very SHADY company!
Century didn't just put a notice in. Negotiations were well underway. Nothing was being resolved on both sides. So century acted in the only legal way that they could. You can only walk around the table so many times without getting anything done.

People will complain that's the sun is too bright even on the most beautiful day of the year!!!

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