JEFFERSON CITY -- Ameren Missouri outlined new plans Wednesday to gradually reduce its reliance on coal-fired power plants, while state utility regulators also rejected a complaint alleging the company has earned more than it's entitled to on its electricity rates.
The Missouri Public Service Commission voted unanimously to dismiss a case brought by Noranda Aluminum and various individual customers asserting that Ameren Missouri's electricity rates should be reduced based on allegations that it has earned more than regulators allowed.
The commission also declined to reconsider Noranda's request for a reduction in its own electricity rates, which could have resulted in higher bills for other Ameren Missouri customers.
Mark Christian, communications director for Noranda Aluminum, released the company's official statement early today.
"We are disappointed with the PSC's decision to not consider a compromise proposal supported by the representatives of all customer classes," the statement said. "Still, because affordable power is critical to the long-term health and prosperity of any aluminum smelter, we remain committed to reducing the rate New Madrid pays for electricity.
"As the PSC has suggested in their order, we will vigorously pursue the OPC Proposal during the rate design phase of the ongoing Ameren general rate case. However, since rate relief from that path, if any, would not under normal circumstances be effective until June 2015 it will likely be too late for the 125 to 200 employees whose jobs will be lost based on the PSC's decision."
However, according to an article in the St. Louis Post Dispatch, PSC Chair Robert Kenney urged the parties to present their compromise proposal when hearing begin early next year on Ameren's request to raise rates on all its customers.
"There is an opportunity in the rate case to present those intriguing proposals yet again and the parties are encouraged to do that," he was reported saying.
Sen. Doug Libla called this latest decision by the PSC regarding Noranda's request disappointing.
"The PSC missed yet another opportunity to do something crucial for our rural economy, especially for Southeast Missouri. This lack of leadership for Missouri ratepayers by the PSC and Governor Nixon is frustrating. We need urgent action now by the Governor to protect these jobs, families, and communities. This lackluster effort and reasoning is both puzzling and very disappointing," he said in a statement.
Those decisions came on the same day that Ameren Missouri filed information with the utility regulatory agency updating its 20-year plan for energy production. The St. Louis-based utility said it plans to shut down six coal-fired generating units in the St. Louis area while adding power plants in unspecified locations that would be fueled by natural gas, wind, sunlight and methane gas released by landfills.
In general, Ameren Missouri is proposing a greater reduction in carbon-dioxide emissions but at a slower pace than would be prescribed for Missouri under proposed regulations by the federal Environmental Protection Agency.
"We are committed to accomplishing this transition to cleaner energy in a way that is cost-effective and environmentally responsible while maintaining the reliability our customers expect," Michael Moehn, Ameren Missouri's chairman, president and CEO, said in a written statement.
Ameren Missouri is the state's largest electricity provider, serving 1.2 million customers.
Documents filed with regulators show the utility got 77 percent of its energy from coal-fired power plants last year and has a goal of reducing that to 62 percent by 2034.
Ameren said it plans to convert two of the four coal-fired units at its Meramec Energy Center south of St. Louis to natural gas by 2016 and then follow through with previously announced plan to shut down the site by 2022. Ameren said it plans to close its Sioux Energy Center north of St. Louis, which has two coal-fired units, by 2033.
The lost production capacity from the Sioux Energy Center largely would be replaced by new facilities powered by natural gas and wind. Smaller amounts of energy also would come from new solar and hydroelectric plants and from landfill-gas generation.
The company said it also plans to continue to offer energy efficiency incentives to customers and expects to reduce the demand for electricity enough that it won't have to replace all of the lost production capacity from the Meramec facility.
Ameren's largest electric customer is Noranda's aluminum smelter in the southeast Missouri town of New Madrid. Noranda already receives reduced electricity rates, but it had sought an additional 25 percent reduction. After regulators denied that request in August, Noranda announced last month that it would lay off up to 200 employees and suspend an expansion project. The PSC denied a request to reconsider Noranda's rate reduction while also rejecting Noranda's separate complaint that Ameren is earning more than allowed.
Some information for this article was provided by The Associated Press.