American Metal Market
AMM
June 17, 2014
By Daniel Fitzgerald

APCo 'nearing' Felman power deal

NEW YORK - Appalachian Power Co. (APCo) is "nearing agreement" with silicomanganese producer Felman Production LLC on a new electricity supply contract, the company said, and has subsequently withdrawn its petition for clarification with the West Virginia Public Service Commission.

APCo had filed the petition with the commission in late May (amm.com, May 28) after failing to come to terms on a new power agreement with Letart, W.Va.-based Felman due to "different views" over the nature of the special rate order handed down by the commission in April (amm.com, April 3).

APCo has now issued a request to withdraw its original petition, having reviewed the responses from Felman and other interested parties (amm.com, June 11).

"Although APCo does not necessarily agree with all of the statements in those responses, APCo concludes from those responses that there are no fundamental differences between Felman and APCo on the matter that prompted APCo to file its petition for clarification," the company said in a June 13 filing.

“APCo's negotiations with Felman have advanced since APCo filed its petition for clarification. At this time, it appears ... that APCo and Felman are nearing agreement on the terms of an addendum to Felman's existing special contract. This addendum would implement the special rate until a comprehensive revision of Felman's special contract can be completed. APCo anticipates that this addendum can be filed by the June 30 deadline set by the commission in its April 3 order, and that a new special rate contract can be filed by Aug. 29."

Felman said in its submission that it was hoping to restart its New Haven, WVa., plant by June 30. The company plans to initially restart two of its three furnaces at the site.