Aquila back in court over power plant dispute

WARRENSBURG, Mo. -- Aquila Inc. and Cass County were back in court Friday in their fight over a power plant the Kansas City-based utility built without zoning approval.

Aquila's South Harper plant, located near Peculiar, Mo., went into operation in June 2005. It has ramped up, down and up again as various courts have heard arguments that it was built in violation of local zoning ordinances and funded in violation of the state constitution.

On Friday, attorneys for the county and a group of residents who want the plant dismantled argued before Circuit Judge Joseph Dandurand that the Missouri Public Service Commission lacked authority to supersede county regulations.

The county also asked that Aquila be forced to repost a $20 million cash bond to cover the costs of tearing down the plant.

Dale Youngs, attorney for Aquila, countered that the Public Service Commission was within its rights to approve the plant, even though it had already been built. He called the request for the bond "grandstanding."

The case began last year, with the county and residents suing after Aquila began construction of the plant. The county prevailed in both circuit court and in the Missouri Court of Appeals. Aquila, in response, turned to the Public Service Commission, whose ruling was the subject of Friday's hearing.

Dandurand delayed a decision on both the commission's ruling and the bond request.

But he noted that when Aquila asked in June for the return of an earlier $20 million bond, Youngs told him the bond had created a financial burden on the company.

"Then I find out the company has paid out millions of dollars in bonuses (to top executives) when you're telling me you can't afford the bond," Dandurand said. "That one bothered me."

The judge gave both sides 30 days to provide additional papers. Regardless of the decision, the case is expected to go the Missouri Court of Appeals.

Aquila serves 1.2 million electric and natural gas customers in Colorado, Iowa, Kansas, Missouri, Minnesota and Nebraska.