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Century Aluminum's Closing Could Affect 500,000
Posted Friday, February 6, 2009 ; 07:06 PM | View Comments | Post Comment
Updated Friday, February 6, 2009 ; 07:20 PM

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They are customers of Appalachian Power who may have to raise rates because of the closing.

Story by Gil McClanahan
Email | Bio | Other Stories by Gil McClanahan

CHARLESTON -- The snowball effect of Century Aluminum's closing could soon be felt by half a million customers of Appalachian Power. Century Aluminum was their largest customer, and that revenue has to be made up somewhere.

Century Aluminum accounts for 10% of Appalachian Power's electricity demand in West Virginia. With the plant closing later this month, fuel used to make electricity will not be needed. However, Appalachian power customers will still have the responsibility of fixed costs like maintaining power lines.

"They will have to be divided up among fewer customers now with the loss of Century the rest of the customers will have to bear that burden," says Jeri Matheney, Corporate Communications Manager for Appalachian Power.

For places like the Union Mission in Charleston, an increase could be big burden they've seen an increase in clients over the last few months.

"Since we live 100% through contributions, it's really going to put us in a place where we are going to have to work more diligent to try and see if we can raise more gifts," says Union Mission CEO Rex Whiteman.

The organization depends on electrical power for refrigeration, cooking and providing lights to those in need who are staying at a Union Mission facility.

"When you see more going out than coming in, so we begin to ask questions what can we do to tighten up," says Whiteman.

AEP hopes to have some specific numbers regarding a rate increase in a couple of months, but any rate increase would have to be approved by the public service commission.

Matheney points out that if the company could find a buyer for Century's electricity, rates would not go up, but that's not likely to happen.

Copyright 2009 West Virginia Media. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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