Daily Mail reported that a dispute between a regional utility and two aluminum smelters in western Kentucky over electric rates is getting an increasing amount of attention from Kentucky state officials.
Gov Steve Beshear sent a letter urging the presidents of Big Rivers Electric Corporation and its largest customer, Century Aluminum, to come to a compromise that preserves jobs and keeps electric rates from skyrocketing.
A day previous, Democratic Rep Mr Jim Gooch of Providence filed a bill proposing to force a merger between Big Rivers and East Kentucky Power Cooperative. Earlier this month, a legislative panel postponed a vote on a bill that would allow the smelters to purchase electricity on the open market.
Mr Mark Bailey president & CEO of Big Rivers said that "I personally think we're close to an agreement. The issue began with a rate disagreement between Big Rivers and its largest customer, Century Aluminum. When they couldn't reach a resolution after months of negotiations, Century gave notice that it would pull out of Big Rivers this August. That led the utility to request a rate increase that in turn led to another large smelter, Rio Tinto Alcan, to give notice that it would also leave the electric cooperative. Together, the smelters employ about 1,200 people and support thousands of other jobs in the area. Meanwhile, the 112,000 customers served by Big Rivers are facing rate includes of 30% or more.”
Mr Bailey said that he was pleased about the governor's letter, which indicated that it is up to the companies not state lawmakers to avoid a crisis. The letter urges leaders at both companies to craft a framework of compromise that will end the crisis of confidence in the security of affordable electricity and of continued employment that has been communicated to me from hundreds of phone calls, letters, emails and faxes from rate payers, employees and families.
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