Ohio steel company strikes new electricity deal as part of $160 million expansion
State regulators on Wednesday approved a new rate agreement between AEP Ohio and JSW Steel as part of the company's $160 million expansion of its steel operations in Mingo Junction in eastern Ohio.
India-based JSW Steel has 279 workers and 50 contractors at the former Wheeling-Pittsburgh Street plant along the Ohio River. The expansion is expected to add 26 jobs as part of the expansion that is planned for 2026.
The plant once was a powerhouse in the region, employing thousands of workers. Before being purchased by JSW, ownership of the plant had changed hands several times and even went into bankruptcy. Production at the plant stopped for several years.
As part of the arrangement approved by the Public Utilities Commission of Ohio, JSW will continue to participate in AEP Ohio's interruptible power program in which it agrees to curtail up to 120 megawatts of power during periods of peak demand. The steelmaker will be eligible for up to $34.5 million in credits during the four-year agreement.
It is a continuation of a plan put in place in 2018 in which JSW did not use all the credits it was allotted, according to PUCO documents.
“The arrangement we approve today will serve to assist in important economic development opportunities in Mingo Junction, as well as serve to mitigate electricity use during times of peak demand on the grid,” PUCO Chair Jenifer French said in a statement.
Electric grid improvement grants given
Separately, the PUCO authorized submission of seven grant applications to the federal government for projects meant to bolster the state's electricity grid.
If approved by the Department of Energy, AEP Ohio would get $3.8 million to bury and relocate distribution lines and to deploy equipment meant to reduce vegetation-related outages for projects in Columbus, Chillicothe, Canton and Athens.
The city of Columbus would get $1.5 million to replace poles and other equipment meant to improve a poorly performing circuit in the central and northeast parts of the metro area.
mawilliams@dispatch.com
@BizMarkWilliams
This article originally appeared on The Columbus Dispatch: Ohio steelmaker approved for new electric deal to help power expansion
