ASSOCIATED SHOULD VOTE PLAN TO ASSIST NORANDA

Federal clean air regulations have created artificially imposed choices, which pits community against community. No matter the choice, the state of Missouri will be the loser.

Associated Electric must decide whether to continue using high-sulfur Missouri coal, which would require the installation of expensive scrubbers; or to buy cheaper, cleaner-burning Wyoming coal.

Choosing Wyoming coal would probably close Missouri's last major coal mine near Moberly, eliminating about 350 jobs. Scrubbers would drive up the cost of power, and that would negatively impact Noranda Aluminum in Southeast Missouri. The Bootheel plant is Missouri's largest single user of electricity paying out a whopping $7 million each month. Noranda officials say the increased power costs would force them to lay off 450 of their 1,200 employees.

Both choices carry negative consequences a loss of jobs and greatly reduced revenues to local school districts. But if the selection is based on good business economics and what is best for the state of Missouri, the choice is clear: Associated should opt for Wyoming coal.

An economic analysis has indicated that the loss of Noranda jobs would have a greater impact on the state's economy. The study indicates that closing the mine could directly and indirectly result in the loss of 800 to 900 jobs, while closing one production line at Noranda could put 3,000 people out of work statewide. In addition, residential and business customers would probably have to bear the increased costs of electricity if the scrubbers are installed.

For Associated, the decision may come down to one of dollars and cents. It costs $15 to $17 a ton to mine Wyoming coal and ship it to Missouri; the cost of Missouri's high-sulfur coal is $37 a ton. Associated simply can't afford to continue subsidizing this coal mine.

Noranda officials have pointed out the scrubbers and Missouri coal option would cost $836 million more. As Associated's largest customer, the wishes of Noranda should weigh heavily. After all, if Noranda were to substantially reduce usage, it would negatively impact the utility's total operations.

Ironically, Associated's difficult choice and Missouri's loss grows out of advancing government interference. While protecting our environment is important, so is protecting our nation's workforce. With intensifying regulations, government has almost become an adversary of business. And that's unfortunate.

Associated Electric's board of directors must make its decision by July. We hope the board will rely on the recommendation of Noranda officials. This plant is important to Southeast Missouri. The loss of these middle-income jobs would be nearly impossible to replace in this current business climate.

We sympathize with coal miners in northern Missouri. But by simply economics, Associated's decision seems clear: Wyoming coal is more cost effective and would save more jobs for the state of Missouri.