Update:  As a result of the PUCO’s decision approving, with modification, Ormet’s request to amend the special arrangement with AEP-Ohio, Ormet announced that it was shutting down its Hannibal facility and laying off most of its workers.  In a company news release, Ormet stated that the PUCO’s decision would not allow Ormet to emerge from its present bankruptcy status.  The company estimated that approximately 1,600 people in total would be laid off because of the shutdown.  Mr. Tanchuk, CEO of Ormet, stated that the plant closing is partly a result of the state’s deregulation of the electricity market, which he blames for the dramatic rise in power bills.

Amidst criticism from state congressmen, union leaders and company officials, the Kasich administration responded by stating that there have already been meetings with local leaders to start getting workers and their families the help they need.  “Ohio wants to see Ormet succeed and has provided more than $300 million in support to the company, but the state of the aluminum market means that not even that huge subsidy has been enough.”

Applications for rehearing on the Commission’s action are due on November 1, 2013. In the face of continued public pressure, it is possible that Ormet will seek rehearing.  However, since their local counsel has withdrawn from the case, this seems unlikely.  AEP, the OCC or other parties in the case, which includes the OMAEG, may also seek rehearing to aspects of the Order.