Missouri Reluctantly Nixes Clean Power Line Proposal

Despite finding that a planned high-voltage transmission line was economically feasible and would advance the public interest, the Missouri Public Service Commission has determined that it presently is without authority to issue a certificate of public convenience and necessity (CPCN) for the project.

The commission explained that a recent state court ruling stood for the proposition that the commission cannot grant a CPCN for the construction of a transmission line unless the project sponsor can show that it has already obtained all requisite local approvals for construction. According to the commission, the court held that the commission cannot authorize a project prior to seeing proof of the local consents, even if the commission conditions its approval on the CPCN not actually being effectuated until the local consents are secured.

The case before the commission centered on a request by Grain Belt Express Clean Line for a CPCN to commence work on a 780-mile multiterminal transmission line with a total capacity of 600 kilovolts or higher. The line is expected to pass through four states, starting in Kansas and ending in Indiana. It is specifically designed to bring renewable energy, especially wind generation, from facilities in Kansas to customers further east.

Grain Belt Express averred that the new line would be capable of delivering at least 500 megawatts (MW) of power to Missouri consumers and another 3,500 MW to the other states. The developer disclosed that a little more than 200 miles of the line would go through Missouri, affecting eight counties. Moreover, it attested that all eight counties had agreed to the project in 2012.

However, it stated, in 2014, after a number of landowners vocally objected, five of the counties moved to rescind the assents previously conferred. That left the transmission line project in regulatory limbo, having first received the needed local permissions, only to have some of those withdrawn some two years later.

In reviewing the matter, the commission appeared sympathetic to the project sponsor's plight. And the commission acknowledged that additional transmission capacity was required in order to tap into the vast amounts of wind power now available on the market. The commission noted the obvious public and environmental benefits associated with transitioning more electricity supply to renewable resources.

Nevertheless, the commission said its hands were tied by the recent decision by the Missouri Court of Appeals. The commission advised Grain Belt Express that, procedurally, the court has prevented the commission from acting on a CPCN request until the applicant can demonstrate that all local consents have been obtained and confirmed. The commission indicated that but for the court's recent pronouncement it would have awarded a CPCN for the project.

The commission drew attention to the fact that the line would be financed exclusively by investors and transmission customers. That is, it said, no retail electric distribution customers or county residents would have had to put up funds for the project. The commission similarly observed the crucial role transmission plays in the electric service process, describing transmission as a vital link in the distribution of electricity. It thus invited the developer to refile its CPCN application if it is able to resolve the local consent disputes. Re Grain Belt Express Clean Line LLC, File No. EA-2016-0358, issued Aug. 16, 2017, effective Sept. 15, 2017 (Mo.P.S.C.).