AMM
American Metal Market

By Daniel Fitzgerald
November 14, 2013
 

Felman's electricity hearing set for Dec. 

NEW YORK - The West Virginia Public Service Commission has scheduled evidentiary hearings for Felman Production LLC's application for a 10-year special-rate electricity deal for Dec. 9 and Dec. 10 in Charleston, WVa.

The company claims the requested rate would allow it to resume silicomanganese production at its New Haven, WVa. plant as it would "allow it to weather the cycles of the commodity markets in which it operates."

Appalachian Power, a subsidiary of Columbus, Ohio-based American Electric Power Co. Inc. and electricity supplier to Felman, declined comment to AMM ahead of the hearing. 

Felman, which is a wholly owned subsidiary of Miami-based Georgian American Alloys Inc. (GAA), had previously said that its special-rate request is tied to a target margin that will be derived from independent indices related to the selling price of silicomanganese and the cost of raw materials (amm.com, Sept. 3). 

"We remain committed to the New Haven operation. ... But unless we can obtain more flexible electricity rates, which account for more than 20 percent of our cost, our continued operation is in jeopardy," GAA chief executive officer Mordechai Korf said in September. 

Felman announced a temporary shutdown at its New Haven facility June 28 due to "declining silicomanganese prices and rising manufacturing costs" (amm.com, June 28). 

 

AMM’s silicomanganese price is in a range of 51 to 53 cents per pound vs. a range of 49 to 51 cents per pounds in early September.