ENERGY AUTHORITY OF PORT SHOULD BE CLARIFIED NOW

Union Electric has filed suit to clarify the powers of the Southeast Missouri Regional Port Authority. At issue is whether the port authority can buy wholesale electricity and then resell that power to tenants. The lawsuit carries significant importance statewide because currently there is little or no law on this matter.

Although lawsuits are not often welcomed, it seems a good idea to get this matter clarified. If both sides stipulate to the facts (for the most part undisputed), the matter should be resolved with relative speed. Then the port can proceed with its planning.

Because energy costs are a major expense for industries, the port authority's interest in low-cost power is easily understood. A few years ago, the discussions focused on the possibility of building a cogeneration plant at the port site to supply power. Now, the port board is considering a much more cost-effective plan in that up-front costs would be much lower. The port authority would simply become the middle man buying wholesale power and reselling it to tenants or other businesses.

The port authority's ability to provide tenants with low-cost power could be a real selling point to attract business especially those industries with intensive energy needs.

On the other hand, Union Electric's concerns are also clear. UE holds the PSC certificate of power to provide electrical energy at retail cost in Cape and parts of Scott counties. The company doesn't want to lose business, especially to large industrial accounts. If the port authority board is allowed to become a power broker, it may seek to serve current UE users who are nearby. This could include Lone Star Industries, the largest energy user in Cape Girardeau. Lone Star and the port have been key players in ongoing studies aimed at securing a supply of energy other than from UE, the only supplier now available to both.

The outcome of this lawsuit could also affect current franchise negotiations between the city and UE. If the port were allowed to provide power to nearby industries, it could have an impact on whether the city would ever decide to set up a municipal utilities system.

In 1987 and early 1988, city officials studied the idea of a municipal utilities system at length. But the matter was put on hold in early 1988 after the council issued operating permits to UE. These permits extended the franchise agreement, which expired in March of 1988. Under the city charter, any franchise agreement will have to be approved by voters.

The utility issue is a complex one, both for the port authority and the city of Cape. There are no easy answers or clear directions. But clarification of this power issue now should avoid more protracted legal disputes down the road. For many reasons, it will be a step forward to gain answers to these legal questions.