A rally in support of Ormet Corporation will be held Saturday, 3-6 p.m., at Ormet’s picnic shelte....
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Lucid, the loss of jobs would be terrible, not only for those directly involved, but for the entire area.
I'm afraid that electric rates will doing nothing but going up from here. The new EPA regulations on CO2 are going to force the power companies into major changes in the way they do business. Coal will not be the cheapest form of generating elctricity any more.
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I ask you (those who disagree with my previous comment), what are you disagreeing with? AEP's profits (they are out there and public knowledge... just Google it). The amount of electric consumed by Ormet vs. what a common household consumes? Or the fact that our local economy will not be impacted by the loss of over 900 jobs? Please feel free to express your opinions.
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Ormet receives a discount off the industrial rate. Ormet uses approximately 500MWh per hour. This electricity is consumed at a constant level 24/7/365. If you calculate that out, it's equal to about 372,000 homes (or more than the city of Pittsburgh). The biggest difference is that this electric is consumed at a constant level 24/7/365. Residential customers consumption varies according to time of day / year. They pay over $66M in payroll salaries, over $1.6M in local and state taxes that helps to support local schools and businesses. PUCO (that is supposed to "regulate" power rates) allowed AEP to raise prices on it's customers to recover costs incurred to them for upgrades in their operations. This is usually depreciated over 10-20 years... but they have been allowed to depreciate and recover costs in only 2-3 years. Monroe County Schools has laid off 40 teachers and cut funding by almost $150k. Meanwhile, AEP made $3.2 BILLION profit over the last 2 years!$744M this year
I would hate to see jobs lost in our community.
Let's put the power costs into perspective:
$39/MWH is close to what it costs the power company to generate. It baffles me how Ormet ever got a contract that good.
$62/MWH is an good price for a high use industrial customer and in line with other high use industries.
New Martinsville city residential rates are about $100/MWH.
I realize it's a big increase, but unfortunately, if Ormet can't afford $62/MWH for whatever reason, then their business may not be viable any more.
A taxpayer bailout is not the answer as it is just a very short term solution for a long term problem.
1100 Third Street , New Martinsville, WV 26155 | 304-455-3300