News from the Oklahoma Corporation
Commission
Phone: (405)
521-4180, FAX: (405) 522-1623, m.skinner@occemail.com
Corporation Commissioners approve a special contract expected to pump
millions into Oklahoma’s economy
OKLAHOMA
CITY – The Oklahoma Corporation Commission has approved a special contract
between Public Service Company of Oklahoma (PSO) and Elkem Metals Company that
will result in more jobs and capital for Oklahoma’s economy. The terms of the
contract will allow Elkem to resume production at its calcium carbide facility
in Pryor. The plant ceased production in 2001.
Commission Chairman Denise Bode says it’s good news for all of
Oklahoma.
“Testimony in the case shows that not only will the plan add
approximately 50 jobs and a 2 million dollar payroll to the economy of Mayes
County, the firm expects to spend some 8 to 15 million dollars a year in
Oklahoma,” said Bode. “This case perfectly illustrates the essential role
electric power plays in economic development efforts.”
Bode praised PSO, Elkem, and Commission staff for their work on
the contract.
“This contract represents the kind of fresh, creative thinking we
must have if Oklahoma is to reach its economic potential,” she added.
Commission Vice-chairman Bob Anthony agreed, calling the contract
“innovative.”
“The agreement includes protections for other
ratepayers, while at the same time allowing PSO to offer Elkem the kind of rates
Elkem needs if it is to reopen the plant,” said Anthony.
Anthony
said the agreement protects the wallets of PSO’s ratepayers, since the Elkem
contract will not change the costs paid by other customers. In addition it protects the service
ratepayers expect and deserve.
“The
contract allows PSO to interrupt service to the Elkem plant if, during times of
high demand on the PSO system, that power is needed for other customers,”
Anthony explained.
Commissioner Jeff Cloud said the agreement shows what can be done
when “a company steps up to meet the needs of customers.”
“Electric power is the highest cost raw material in the production
of calcium carbide, accounting for approximately 40 to 50 percent of direct raw
material costs,” Cloud noted. “Elkem’s only U.S. competitor in this field
enjoys cheap hydroelectric service in its areas of operation, at rates below
that which PSO could normally offer. The answer was this special contract based
on interruptible service.”
The contract will cover a period of 4 years.
-OCC-
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advisories and releases are available at www.occeweb.com