PUCO approves arrangement between Eramet and AEP-Ohio

COLUMBUS, OHIO (Oct. 15, 2009) – The Public Utilities Commission of Ohio (PUCO) today approved an arrangement between Eramet Marietta, Inc. and the Columbus Southern Power division of American Electric Power-Ohio (AEP-Ohio) for electric service to the company’s manganese alloy producing facility in Marietta. The arrangement will be in effect through 2018.

“This arrangement will enable Eramet to invest in upgrades at the company’s Marietta facility, ensuring job retention in Ohio,” PUCO Chairman Alan R. Schriber stated. “By approving this arrangement, we are fulfilling the policies set forth in Senate Bill 221 through job retention and economic development, as Eramet is a key employer to the Marietta region.”

The arrangement will set a rate of $0.04224 per kilowatt hour from the effective date of the arrangement through Dec. 31, 2011. From Jan. 1, 2012 through Dec. 31, 2018, Eramet’s rate will be calculated as a percentage discount off the applicable tariff rate. The percentage discount will descend each year until is reaches zero on Jan. 1, 2019.

During the initial pricing period ending Dec. 31, 2011, Eramet must make a capital investment of at least $20 million in its current Ohio manufacturing operations. After that period and before Dec. 31, 2014, Eramet must make an additional capital investment of $20 million. Eramet must also maintain a minimum average annual employment of 200 people during the term of the arrangement.

In approving the arrangement today, the Commission found that AEP-Ohio should credit any provider of last resort (POLR) charges paid by Eramet to AEP-Ohio to its economic development rider, which will reduce the amount of delta recovery recovered from AEP-Ohio’s other ratepayers.

Eramet and AEP-Ohio must file an executed power agreement ordered today by the Commission within 14 days. Once the agreement is filed, the arrangement will be effective.

A copy of today’s Commission opinion and order is available at www.PUCO.ohio.gov. Click on the link to the Docketing Information System (DIS) and enter the case number 09-516-EL-AEC.

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09-516-EL-AEC