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PSC reluctantly denies Clean Line’s application for a third time

JEFFERSON CITY, Mo. – The Missouri Public Service Commission has once again denied the Grain Belt Express wind energy project, but the commissioners want it known that they have reluctantly done so.

The proposed high voltage power line project, put forward by Clean Line Energy, had been seeking a certificate of convenience and necessity to place transmission lines across eight northern Missouri counties to carry wind power from the Midwest to eastern states. The line would run from Kansas through Missouri and Illinois to Indiana, where it would then be connected to a power grid to transfer power to eastern states. Every other state involved in the project has signed off on the project except for the Show-Me State. Clean Line had been trying for years to get approval from the Missouri PSC but had been denied twice in the past, being denied in 2015 for not proving its necessity and worth and once again in 2016 on a procedural error.

During the Wednesday, Aug. 16 agenda meeting of the PSC, the commission said that they would have approved the CCN for Clean Line if not for a ruling on another unrelated case by the Missouri Western District Court of Appeals. That case, involving the Mark Twain Transmission Project, had been the basis of a decision by the Court of Appeals ruling that utilities must first get county assent for road crossings before state approval of a project can be granted.

Clean Line has not received county approval from several countries, as local landowners cited concerns of land disruption and potential health consequences, but the strongest arguments from opponents centered around the issue of eminent domain and whether the land could be taken to facilitate the needs of the project.

“We support the PSC’s decision denying Clean Line Energy the use of eminent domain power for its Grain Belt Express power line project; however, we are concerned with issues raised by some commissioners who expressed disappointment in a related court ruling requiring consent by all affected counties,” Missouri Farm Bureau President Blake Hurst said. “Missouri Farm Bureau will seek to strengthen protections restricting the use of eminent domain power.”

Even though the commission denied the request, four of the five commissioners signed off on a concurring opinion saying they would have approved the project and that it did meet the criteria needed for approval in the state. That, in essence, would mean that the Grain Belt Project would have been granted their CCN if not for the Court of Appeals ruling, which Chairman Hall said he disagreed with.

“That decision, I personally believe now and believed then, to be contrary to Missouri law, contrary to good policy, and contrary to the practice dealing with certificates that have been in place for this commission for decades. We requested that the Supreme Court take transfer of that case to review that decision, Unfortunately, they did not, and that decision is binding upon us,” Hall said.

“Based on the evidence presented in this case, there was demand for this power in Missouri. A certain number of Missouri cities had signed up for up to 100 MW of the 500 MW, and there was evidence presented that those ratepayers in those cities were going to see significant savings on their electric bills if this line was allowed to proceed. There is substantial evidence in the record that the wind energy crossing this transmission line was going to be the lowest cost resource available,” Hall continued. “To me, this project would facilitate that worldwide trend that we’re seeing in renewables, in this region, and in Missouri, and for that reason, it was in the public interest to approve the line. Unfortunately because of the structure of this Commission and the legal structure in this state we were unable to act in the public interest.”

Commissioner Bill Kenney said that one of the reasons they had asked the Supreme Court to look at the case was because they had disagreed with the Court of Appeals’ ruling regarding § 393.170, RSMo and § 229.100, RSMo, saying that he believed it was clear that they had misinterpreted that, but it was important to follow the rule of law.

“I, too, agree that the courts got this one wrong,” Commissioner Scott Rupp said. “This is going to have big policy implications. I think the proponents did an admirable job attempting to show the discrepancies in the court’s opinion and how it could appear in this case, but at the end of the day, I’ll be supporting the order reluctantly.”

Only Commissioner Stephen Stoll refused to sign the concurring opinion, saying that the court had spoken and that he didn’t feel it was necessary to speak to issues not required to be discussed in the report and order.

Supporters of the Clean Line project say the decision from the PSC is disappointing, not just to Grain Belt Express, but to Missouri workers. The Missouri Department of Economic Development estimated the project would create more than 1,500 jobs in the state.

The Clean Line project also was expected to save ratepayers millions in energy savings. Grain Belt Express has a contract with more than three dozen Missouri cities to provide access to low-cost energy, estimated to save Missourians over $10 million annually.

“As the PSC noted today, the Grain Belt Express Clean Line would provide substantial public benefit to Missourians by providing low-cost clean energy, new jobs, and revenues to communities across the state,” Michael Skelly, President of Clean Line Energy, said. “The PSC’s decision to deny approval of the project, despite the clear public benefits, sends a clear message that investors contemplating new infrastructure projects should not come to Missouri. Today’s ruling is inconsistent with good government and sound public policy and it is our hope that moving forward Missouri will work to remove barriers to building new critical infrastructure projects.”

“We are disappointed in the Commission’s decision, particularly with respect to the jobs that would be created for Missourians during the construction of the project. PAR Electrical Contractors was selected to construct the line, which would create an opportunity for more than 600 Missouri based PAR employees,” said Steve Adams, President of PAR Electrical Contractors, Inc. “The United States has some of the best wind resources in the world, and electric transmission projects like Grain Belt Express play a critical role in delivering clean energy and economic benefits to Missouri and the rest of the country.”

That doesn’t mean this is the end for the Clean Line Project by any means, though, but rather just another hurdle that the company will continue to look at. 

“We will review the order in detail to determine next steps for the project,” Skelly said. “We are currently assessing all existing authorities available to move the Grain Belt Express project forward, including but not limited to legal appeals.”

Still, others note that this decision seems to go against the very issue that the Republican Party has touted since the 2016 election: job creation. James Owen, the Executive Director of Renew Missouri points out that Governor Eric Greitens had promised to cut red tape in order to help businesses create jobs in Missouri.

“For the past six months, Governor Eric Greitens has promised to drain Jefferson City of job-killing regulations and to declare Missouri open for business. Governor Greitens’ silence on the Grain Belt Express shows that this was nothing but talk. It is also a shovel-ready project that would create jobs immediately in a rural part of the state crying out for opportunities. Governor Greitens’ administration heard these cries and chose to ignore them,” Owen said.

Owen also raised the question about the special session called by the Governor to address lowering utility bills to attract companies to the Bootheel back in May.

“This call was so urgent it simply could not wait. The bill passed and was signed, but now we don’t hear a peep about whether it will bring one single job back to Missouri,” Owen said. “Between that special session and the decision on the Grain Belt Express, today shows our new Governor’s administration isn’t serious about economic development and household budgets as promised. Just more talk with no action.”