PORT AUTHORITY HEADED TO COURT OVER UTILITY ISSUE

SCOTT CITY - The Southeast Missouri Regional Port Authority and Union Electric are headed to court next week to seek an interpretation on whether the port can purchase energy at wholesale rates.

An evidenciary hearing is scheduled for Oct. 2 in Scott County Circuit Court at Benton before Circuit Judge Tony Heckemeyer. The hearing could take two days and the judge will likely make a decision in 30 to 60 days.

Allan Maki, executive director of the port authority, said the port's board of commissioners is anxious to get the issue resolved. Being able to provide a reliable and economical source of energy is essential to development around the port, said Maki.

He noted that energy is one of the key factors that industries take into consideration when making decisions on where to locate.

Union Electric is being represented by John Oliver of Cape Girardeau, while the port authority is being represented by Robert Hoemeke of the St. Louis law firm of Lewis, Rice and Fingersh.

Although the trial is set for next week, Maki said Monday afternoon there is a possibility it might be delayed.

Maki explained that the Southeast Missouri Regional Port Authority is contending that as a non profit political subdivision of the state, it should have the same right to access wholesale energy contracts as other political subdivisions in the state.

"The port authority thinks this is important in order for it to fulfill its economic development mandate as set for them in its charter," said Maki.

"If the port is successful in obtaining wholesale energy contracts, these rates could be as much as 30 to 40 percent below the current Union Electric residential rates."

Even taking into account that Union Electric's industrial rates are cheaper than residential, being able to access wholesale energy would still result in a savings of 20-25 percent, stressed Maki.

Union Electric is contending that the port authority is not the right kind of political subdivision to be able to receive wholesale energy. The utility company is claiming that the port authority is not the same kind of political subdivision as a city and therefore is not entitled to be able to buy energy at wholesale rates and then re-sell it.

"Utility rates are an important part of economic development and our enabling statute requires us to pursue economic development, the attraction of private capital, and the promotion of the general welfare," said Maki. "We feel like lower utility rates will accomplish all those."

If the legal decisions come back in favor of the port authority, then Union Electric "would have to treat us like any other municipal utility," said Maki.