Power row has Ormet threatening cuts

Jul 15, 2013 | 04:29 PM | Michael Cowden

Tags  Ormet, AEP, American Electric Power, Public Utilities Commission of Ohio, Puco, bankruptcy proceedings, Wayzata, Smelter Acquisition production cuts

CHICAGO — Ormet Corp. might cut production at its aluminum smelter in Hannibal, Ohio, and alumina refinery in Burnside, La., after Ohio officials failed to grant the bankrupt aluminum producer changes to its electricity agreement with American Electric Power Co. (AEP).

The Public Utilities Commission of Ohio (Puco) decided July 11 against giving Ormet the emergency power-rate relief it sought, instead opting to hold a hearing on the matter Aug. 27, according to Puco documents.

AEP has said the changes proposed by Ormet violate bankruptcy law and what the Columbus, Ohio-based utility considers to be a contract with Ormet (amm.com, July 12).

The delay has Ormet facing uncertainty about its power situation until October at the earliest, leaving the company "no choice but to take all actions necessary to properly prepare and begin the process of curtailing operations," Ormet said in documents filed July 15 in U.S. Bankruptcy Court in Delaware.....





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