Noranda bill sent to governor's desk

JEFFERSON CITY, Mo. -- Noranda Aluminum Inc. would be able to negotiate power contracts free of state rate regulation under legislation sent to the governor on Wednesday.

The company said the bill is vital to maintaining operation of its New Madrid smelting facility and preserving the 1,100 jobs it provides.

By purchasing power at rates lower than those set by the Missouri Public Service Commission, Noranda expects significant savings on its energy costs, which account for one third of its operating expenses.

The measure cleared both chambers without opposition -- 32-0 in the Senate and 129-0 in the House of Representatives. It is sponsored by Senate President Pro Tem Peter Kinder, R-Cape Girardeau, and state Rep. Lanie Black, R-Charleston.

Jack Cardetti, a spokesman for Gov. Bob Holden, said the bill will undergo a customary review but that the governor would act expeditiously.

"The governor realizes the importance of this legislation to Southeast Missouri," Cardetti said.

A controversial provision that would have allowed Noranda to sell excess power on the open market was deleted from the final bill. Opponents of that section worried Noranda could purchase more power than it needed at low cost and then sell it in competition with utilities subject to PSC regulation.

Those concerns resulted in a previous House vote of 88-53. That tally was sufficient for passage but 21 votes short of the 109 needed to enact an emergency clause allowing the bill to become law immediately upon receiving the governor's signature

Black, the bill's House handler, fought adamantly last week to keep the provision in the measure but agreed to its removal during negotiations with the Senate.

"We ran into a dose of reality, which was we couldn't get the emergency clause as long as we had that section," said Black.

Because Noranda's current power contract expires at the end of the month, Black said the company was willing to drop its demands for open market resale. Without the emergency clause, which both chambers ultimately approved, the measure couldn't become law until Aug. 28.

The bill allows Noranda to sell excess power back to the utility company from which it was purchased.

The bill is SB 555.

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