The city of St. Louis is opposing a request by Noranda Aluminum for state regulators to lower the electricity rates it pays to Ameren Missouri.
An attorney for the city wrote to the Missouri Public Service Commission, saying that if Noranda's electric rates are lowered, it could result in higher costs for other consumers. City Counselor Michael Garvin says that it could cost St. Louis an additional $3 million over 10 years.
Noranda has sought about a 25 percent reduction in the rate Ameren charges at its aluminum smelter in the southeastern Missouri town of New Madrid.
Noranda contends Ameren is earning more money than authorized and says a rate cut is needed for the smelter to keep operating.