CHARLESTON, W.Va. (AP) — Felman Production says a proposed special power rate will allow its silicomanganese plant in New Haven to operate when commodity markets are weak.
In testimony filed with the Public Service Commission, the company says allegations that the rate plan guarantees profits are "offensive and naive."
Felman's proposal would tie the plant's power rates to the costs of its raw materials and commodity prices. A portion of the plan provides Felman with a guaranteed gross margin on production.
West Virginia Energy Users Group consultant Richard Baudino says in testimony filed with the PSC that other ratepayers shouldn't be required to support a rate of return for Felman's investors.
Chief financial officer Barry Nuss tells the Charleston Daily Mail (http://bit.ly/1dNtJ96 ) that the guaranteed margin doesn't take into account all production costs.
Information from: Charleston Daily Mail, http://www.dailymail.com