Mo. lawmakers try to keep power plant standing

KANSAS CITY, Mo. -- A group of Missouri lawmakers are proposing legislation that would keep Aquila Inc. from having to tear down a Cass County power plant.

The House members filed a bill this week that would expand the powers of the Missouri Public Service Commission, allowing the regulatory body to approve the construction of utility improvements, even after they're already built.

If passed, the legislation would effectively overturn an appellate court's decision earlier this month that the commission overstepped its authority by giving its blessing in 2006 to the already constructed $140 million plant.

Rep. Ed Emery, a bill sponsor and chairman of a special utilities committee, said he got involved because tearing down "a necessary power plant that costs that much, just to teach somebody a lesson and making customers pay for it, would be just silly."

Opponents of the plant say the bill would allow Aquila to ignore the law and shows how close the utility is to state officials.

"They [Aquila] will do just about anything to get their way," said Gary Mallory, presiding commissioner for Cass County. "They don't like the law, so they're going to change the law."

An Aquila vice president said the company began talking with lawmakers shortly after the court decision and Emery, R-Lamar, said he had lunch with Aquila officials Monday.

"But since I chair the utilities committee, those are the people I'm supposed to be talking to," he said.

Aquila built the plant in June 2005 without seeking county zoning permits, saying it believed its state-issued certificate didn't require local approval.

The county sued, with Cass County Circuit Judge Joseph P. Dandurand and an appeals court agreeing that the state-issued certificate didn't specifically cover the plant.

The appeals court did say Aquila could try to get the permits after the fact from county officials -- who said they would never approve them -- or go back to the PSC.

The commission voted in May 2006 to approve the plant. The regulatory agency said it was in the public's interest and should be allowed.

But the appeals court on March 4 sided with the county again, saying state law requires the commission to authorize power plants before construction begins and even the commission can't change that.

Rep. Trent Skaggs, R-North Kansas City, said he agreed that Aquila had made mistakes and should be punished but didn't believe the government should shut the plant down.

"I don't see how we as a legislature can sit back and let that happen," he said. "This case is bigger than Cass County. It's time for the state to step in."

Debra Moore, Cass County counselor, said the state shouldn't be able to pass retroactive legislation, especially as the courts have twice ruled against Aquila.

Moore said it would cost the company $20 million to dismantle and move the plant and that it wouldn't significantly affect customers in the area.

Rep. Brian Baker, R-Belton, argued that communities rely on master plans for development and zoning laws and the bill would allow the commission to ignore those.

"I told (Emery) I was going to fight it, and he told me that at some point you had to be forgiving," Baker said. "I don't think he would feel that way if somebody built a strip club next to his church."

Aquila has also asked the Missouri Supreme Court to review the appellate court's decision but said it would have to begin tearing down the South Harper plant as early as this summer if the court declines to take the case.

Ivan Vancas, operating vice president of Aquila's Missouri utilities, said the figure for dismantling the plant was actually closer to $100 million and its removal would require the company to buy expensive power from other utilities during period of high energy use.

"We are working hard to keep this plant operating," Vancas said.

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Information from: The Kansas City Star, http://www.kcstar.com