PR-09-165 -- PSC Approves Agreement Reached In KCP&L Greater Missouri Operations South Harper Case

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- MARCH 19, 2009

JEFFERSON CITY---The Missouri Public Service Commission has approved an agreement which grants KCP&L Greater Missouri Operations Company (GMO) certificates of convenience and necessity for the South Harper power plant and the Peculiar 345 kV (kilovolt) substation.  Both facilities are located in Cass County.

“GMO has met its burden of proof, by a preponderance of the evidence, that granting CCNs for the Facilities is required by the public convenience and necessity,” the Commission order said.  “With demand increasing in GMO’s Missouri service area, including Cass County, and the need for year-around peaking capability, the South Harper Facility’s three 105 MW simple-cycle CTs provide greater flexibility to meet the needs of the GMO’s customers.”

The Commission also stated that granting the application was in the public interest and that the facilities improve the reliability of GMO’s transmission system, improve the overall efficiency and economics of GMO’s transmission operations and provides reactive power to control voltage on the transmission network.

The PSC order also noted that all local, state and nationally required permits were obtained for construction of the facilities; that all private claims and lawsuits relating either to the South Harper Plant or the Peculiar Substation had been resolved and settled; and there were no pending claims or lawsuits relating to the facilities.

On January 9, 2009, KCP&L Greater Missouri Operations Company, the PSC staff, the Office of the Public Counsel, Dogwood Energy, L.L.C. and Cass County submitted to the Commission an agreement regarding the application.  The Sedalia Industrial Energy Users’ Association was the only party who was not a signatory to the agreement.  However they advised the other parties that they did not oppose the agreement.

A request for certificates of public convenience and necessity for the South Harper power plant and related infrastructure and the Peculiar 345 kV substation had been previously approved by the Public Service Commission.

The Commission previously concluded that KCP&L Greater Missouri Operations Company, formerly Aquila, Inc., had specific authorization to construct these facilities in a Commission order clarifying prior certificates of convenience and necessity issued on April 7, 2005.  The Commission also granted a specific certificate of public convenience and necessity for these facilities in an order issued on May 23, 2006. 

These orders were overturned by the courts after challenges; however, the Missouri General Assembly passed Senate Bill 720 granting the Commission authority for one year after the bill took effect (August 28, 2008) to issue a certificate for facilities falling within its scope, which included these facilities in Cass County.

On September 30, 2008, KCP&L Greater Missouri Operations Company filed an application with the Public Service Commission requesting certificates of convenience and necessity for the South Harper power plant and related infrastructure and the Peculiar 345 kV substation recently annexed by the City of Peculiar.

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Case No. EA-2009-0118