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Grain Belt application denied at PSC agenda

JEFFERSON CITY, Mo. – The Missouri Public Service Commission (PSC) met today for their regularly scheduled agenda meeting to address a handful of tariffs and new orders, including Grain Belt Express (GBE) Clean Line’s application for a certificate of convenience and necessity to construct, own, operate and maintain a high voltage, direct current transmission line and associated facilities within Buchanan, Clinton, Caldwell, Carroll, Chariton, Randolph, Monroe and Ralls counties in Missouri as well as an associated converter station in Ralls County.  According to the application, approximately 206 miles of the transmission line will traverse the state of Missouri from Kansas into Illinois and Indiana (Project). The denial essentially bars the company from being able to be treated as a utility and further, to use eminent domain to build the line.

“After applying the facts to the law to reach its conclusions, the Commission concludes that the substantial and competent evidence in the record supports the conclusion that GBE has failed to meet, by a preponderance of the evidence, its burden of proof to demonstrate that the Project as described in its application for a certificate of convenience and necessity is necessary or convenient for the public service,” said the Commission.

The Commission stated the five criteria that it will use to determine whether to grant a certificate of convenience and necessity to GBE are: 1) There must be a need for the service; 2) The applicant must be qualified to provide the proposed service; 3) The applicant must have the financial ability to provide the service; 4) The applicant’s proposal must be economically feasible; and 5) The service must promote the public interest.

The Commission stated in its decision that GBE met its burden of proof that it is qualified and has the financial ability to provide the service.  However, the Commission concluded GBE failed to prove a need for the project, that it was economically feasible and that it promotes the public interest.

The Commission determined GBE failed to prove the Project promotes the public interest.  “In this case the evidence shows that any actual benefits to the general public from the Project are outweighed by the burdens on affected landowners.  The Commission concludes that GBE has failed to meet its burden of proof to demonstrate that the Project as described in its application for a certificate of convenience and necessity promotes the public interest.”

The decision comes after 8 public hearings in the 8 counties across north Missouri which would be impacted, which commissioners shared had overwhelming negative feedback. Commission Chairman Robert Kenney and Commissioner Daniel Hall were the two dissenting votes. Commissioners voting yes noted that that believed Grain Belt did not meet the burden of proof in the 5 areas needed in order to gain such an application.

Commissioners noted the unprecedented and historic nature of the request and repeatedly reiterated the invitation for Grain Belt to reapply in the event new and applicable information became available.

Just last week, Grain Belt held an event in Kansas City to announce an agreement with a leading Kansas City construction company, PAR Electric, creating more than 1,300 in-state construction jobs each year during the construction of the line. House Utilities Chairman T.J. Berry joined PAR Electric and Grain Belt executives for the announcement, saying the project would bring “low-cost power to the state” and “demonstrate…that [Missouri] is open for business.”

“I applaud Clean Line Energy for their selection of PAR Electric as the construction contractor for the Grain Belt Express Clean Line,” said House Utilities Chairman T.J. Berry. “The agreement with PAR Electric will ensure that Missourians are put work to build this important infrastructure project. As a long-time champion of renewable energy in the State House, I see the Grain Belt Express as an essential part of our state’s energy future. The project will bring low-cost power to the state and demonstrate to businesses across the United States that Show-Me-State is open for business.”

The Missouri Farm Bureau quickly issued a statement applauding the vote, saying an approved application would make farming difficult.

“Farm Bureau is extremely pleased with the action  the Public Service Commission took today denying Clean Line Energy’s request to build a transmission line across northern Missouri,” said Farm Bureau President Blake Hurst. “Property owners and members of our organization in the area affected by the line – the line going through their farms – talked about the difficulty of farming around the lines and talked about the importance of private property rights. They strongly oppose the granting of eminent domain for a private project. The Public Service Commission heard their concerns, understands the importance of private property rights, and protected Missouri landowners with their decision today.”

Following the Commission’s decision, Wind on the Wires also issued a statement, calling the decision a “missed opportunity.”

“The heartland of the United States is wind country,” said Wind on the Wire Executive Director Beth Soholt. “Vast amounts of low-cost clean wind energy is available to be harvested but wind developers who are eager to build projects need a ‘farm-to-market road,’ to move their low-cost wind energy to the communities that need it. Wind energy has helped keep electric prices in the Midwest more economic than they would be without wind. The PSC’s decision today is a huge missed opportunity to provide low-cost clean energy to the Heartland and to create the jobs and economic development that comes along with wind development and transmission projects like the Grain Belt Express.”

As for the project, Grain Belt Clean Line is still somewhat optimistic, saying that, “After we review the Commission’s order, we look forward to further clarifying all of the benefits the project will bring to Missouri.”

Also discussed was a request by Staff to release information to the Attorney General for comparison to the No-Call List. Though commissioners questioned the pursuit, the order was approved.

The public policy surrounding highly classified documents arose when an order to declassify testimony in a Kansas City Power & Light Company case. Chairman Kenney noted that it is not good public policy for the burden to be put on requesting parties to prove that documents should be released and should be restored to the party wishing to maintain the classification.

The meeting opened with a presentation by a group of businessmen, led by Steve O’Rourke on Statewide Energy Efficiency Collaborative. O’Rourke and his colleagues shared information regarding consumer energy efficiency, stating that efficiency is a tough sell “in a state with such low energy costs.” O’Rouke discussed programs in other states which allow financing for low-income consumers to increase the efficiency of their properties.

 

 

Tariff and New Orders
Item No. Case/Tracking No. Company Name/Brief Description Lead Staff/Additional Staff Contact(s)
1. EC-2015-0309 MO PSC Staff — Order Regarding Staff’s Motion To Send Customer Specific Information To Attorney General For Comparison To The No-Call List Data Base Woodruff
2. GO-2015-0274 Ameren Missouri — Order Approving Infrastructure System Replacement Surcharge Reconciliation Bushmann
3. EA-2014-0207 Grain Belt Express Clean Line, LLC — Report and Order Bushmann
4. ER-2014-0370 Kansas City Power & Light Company — Order Regarding Motion to Declassify Testimony Bushmann
5. ER-2014-0351 Empire District Electric Company, The — Order Clarifying Report and Order Burton
Case Discussion

Other Discussion
  Other Description Brief Description Lead Staff/Additional Staff Contact(s)
Commission Scheduling Matters Kenney (Robert)
Legislation Kenney (Robert)
Budget Kenney (Robert)
Other Closed Minutes for June 24, 2015 Woodruff
Other Presentation by Steve O’Rourke on Statewide Energy Efficiency Collaborative Kenney (Robert)
Closed Session Kenney (Robert)
Litigation Kenney (Robert)
Personnel Kenney (Robert)