St. Louis opposes electric rate cut for Noranda

ST. LOUIS -- The city of St. Louis is opposing a request by Noranda Aluminum for state regulators to lower the electricity rates it pays to Ameren Missouri.

A letter sent to the Missouri Public Service Commission this week by an attorney for St. Louis says that if Noranda's electric rates are lowered, it could result in higher costs for other consumers. City Councilman Michael Garvin said that could cost St. Louis an additional $3 million over 10 years.

Noranda has sought about a 25 percent reduction in the rate Ameren charges at its aluminum smelter in New Madrid, Mo.

The company contends Ameren is earning more money than authorized and says a rate cut is needed for the smelter to keep operating.