Soaring rates for electricity feared

Soaring rates for electricity feared

YOUNGSTOWN — Local steel producers are fearing large increases in electricity rates in 2009.

They say you should, too.

FirstEnergy Corp. officials say the comments are scare tactics designed to maintain artificially low rates for industrial companies.

The give-and-take comes as the state is set to move to a deregulated energy market at the end of 2008, meaning electricity users would have to buy power at whatever price the market bears.

Officials from WCI Steel in Warren and V&M Star in Youngstown met today with The Vindicator to explain their belief the industry will be threatened by the change.

Based on what has happened in other states, prices could increase by 50 percent or even 100 percent, said Roger Lindgren, V&M president.

V&M spends about $15 million a year on electricity, while WCI spends between $18 million and $20 million.

For the complete story, see Tuesday’s Vindicator and Vindy.com.