Even though the Commission gave GBE a second chance to provide the additional information the Commission said it requires in order to make a decision in this case, GBE did not provide the requested information. Much of the requested information—for example, the RTO interconnection studies—will not be available for some time, perhaps years. And, GBE may never be able to get the required consents from all of the county commissions. GBE’s general attitude is summed up thusly: Trust us—we will give you the information only after you give us our CCN.

The Commission should not allow GBE to play this “which comes first—the chicken or the egg” game. Show Me recommends that the Commission deny GBE’s Application without prejudice. GBE is free to refile its Application after it obtains all of the relevant information and documentation that the law and this Commission require.

The Commission’s supplemental procedure should be scheduled with consideration given to the time that has already elapsed in this case. The Company filed its Application for a Certificate of Convenience and Necessity on March 26, 2014, over 12 months ago. Staff and other parties conducted extensive discovery regarding the Company’s Application, testimony, and schedules. The Commission held eight local public hearings, which occurred on August 12 and 14, and September 3 and 4. Three rounds of pre-filed testimony occurred, and the Commission conducted five days of evidentiary hearings (November 10, November 12-14, and November 21).

UFM recommends that the Commission reject the Grain Belt Express Response and deny Grain Belt Express’ application because the Commission misapplied its rules in its March 11 Order. The Commission’s order, therefore, was unlawful, arbitrary and capricious. Further, a review of the Grain Belt Express Response shows that there is very little additional relevant evidence to be adduced in additional proceedings. As a result, further proceedings would be inappropriate and a useless exercise. Finally, a review of the Grain Belt Express Response confirms UFM’s argument in its briefs previously filed in this case, that the proposed facilities are a private enterprise not devoted to the public convenience or necessity, and therefore are not qualified to receive a certificate of convenience and necessity.

Another initial point pertains to the information provided on the number of voluntary easements Grain Belt Express has obtained from landowners on the proposed route. According to Supplemental Exhibit 1 of Grain Belt Express’ Response, out of 724 tracts of land, Grain Belt Express has acquired only 45 easements voluntarily—about 6.2%. Grain Belt Express has been aggressively pursuing voluntary easements from landowners for a year. Given Grain Belt Express’ lack of success in convincing landowners that this is a good project for Missouri, granting Grain Belt Express the power of eminent domain would be inappropriate.

In a recent letter to the editor, Ms. Mary Adair Horsechief stated that “a representative of Plains & Eastern Clean Line recently dropped by” her home and he told her she “had no recourse but to let them take our land for their use.” Clean Line takes these assertions seriously and we do not condone or endorse statements like the one Ms. Horsechief claims was made on our behalf. Clean Line is committed to treating every landowner with consideration and respect. We require our representatives to follow a Code of Conduct that can be downloaded from our website. We strive to maintain long-lasting relationships with landowners by working in a respectful and collaborative manner. If you have information on interactions you have had with a Clean Line representative that goes against this code, we would like to know. Please contact us at 1-877-573-2851 or info@plainsandeasterncleanline.com and someone will respond to you in a timely fashion.

ILA’s witnesses and its many other members have expressed repeatedly their uniform opposition to the Project, routing and treatment of landowners and their concerns. The Order’s granting of a CPCN to Rock Island will permit Rock Island to force its way onto landowner property to “make land surveys and land use studies” (220 ILCS 5/8-510), a significant and unwarranted intrusion upon affected landowners for a project that is so speculative and tenuous.

The Commission also observes that the approval of a line route as part of this Certificate Order should facilitate negotiations with landowners, and that the issuance of the Certificate will enable Rock Island to gain access to the property to conduct surveys and related activities, which are steps characterized by Rock Island as important ones in which to engage in the near future.

“The ICC approval is a great step forward for the Rock Island Clean Line project and brings Illinois one step closer to creating a cleaner energy future,” said Michael Skelly, President of Clean Line Energy. “We are grateful to the Commission for their careful consideration of our application and proposed route. By approving game-changing projects like the Rock Island Clean Line, Illinois will benefit from access to low-cost clean energy and job creation in the construction and manufacturing sectors.”

Companies like Clean Line that propose electric transmission projects are forced to meet a high threshold to prove that their energy project serves the public need and benefits consumers.

This project should demonstrate that independent, investor-driven transmission infrastructure can become a viable business solution in a traditionally utility-driven arena.

The wind energy delivered by the Rock Island Clean Line will allow other generators to run less and burn less fuel by eliminating the need for the equivalent amount of energy to come from fossil fuels, thereby reducing pollution. More than 1.4 million homes will be powered by the renewable energy generated as a result of this project.

Developing a project of this scale is a long-term undertaking...

Rock Island therein requests an order granting it a certificate of public convenience and necessity (“CPCN” or “Certificate”), pursuant to Section 8-406 of the Act, authorizing it to operate as a transmission public utility in the State of Illinois and to construct, operate and maintain an electric transmission line (“Project”); and authorizing and directing it, pursuant to Section 8-503 of the Act, to construct the proposed line. 

The DOE will conduct a thorough review that includes making all required statutory findings as well as consideration of the proposed project’s environmental impacts, the project’s technical and economic feasibility, and whether the project is in the public interest.

DOE will decide whether to participate in the proposed project, a decision which would include route selection, once all environmental reviews and other due diligence have been completed. The earliest a decision could be made is at least 30 days after issuing the Final EIS, which is not expected before 2015.

Issues Not Addressed in the EIS: Before DOE conducts its review of all of the factors discussed above, the applicant will be required to submit further information and update its original application. Once DOE receives the updated information, and deems the application complete, it will provide notice that the application is available for public review through a notice in the Federal Register and an announcement on the OE website. Publication of this notice in the Federal Register will begin a 45-day public comment period. The notice will describe how to comment on the application for the proposed project. All comments submitted during the comment period will be considered in the DOE’s ultimate decision as to whether to participate in the proposed project under the Section 1222 program.

In this proceeding, Rock Island Clean Line LLC (“Rock Island,” “RICL” or “RI”) filed the above-referenced petition with the Illinois Commerce Commission (“Commission” or “ICC”) pursuant to Sections 8-406 and 8-503 of the Public Utilities Act (“Act”),  220 ILCS 5/1-101, et seq.

Rock Island therein requests an order granting it a certificate of public convenience and necessity (“CPCN” or “Certificate”), pursuant to Section 8-406 of the Act, authorizing it to operate as a transmission public utility in the State of Illinois and to construct, operate and maintain an electric transmission line (“Project”); and authorizing and directing it, pursuant to Section 8-503 of the Act, to construct the proposed line. 

Whenever after a hearing the Commission determines that any new construction or the transaction of any business by a public utility will promote the public convenience and is necessary thereto, it shall have the power to issue certificates of public convenience and necessity. The Commission shall determine that proposed construction will promote the public convenience and necessity only if the utility demonstrates: (1) that the proposed construction is necessary to provide adequate, reliable, and efficient service to its customers and is the least‑cost means of satisfying the service needs of its customers or that the proposed construction will promote the development of an effectively competitive electricity market that operates efficiently, is equitable to all customers, and is the least cost means of satisfying those objectives; (2) that the utility is capable of efficiently managing and supervising the construction process and has taken sufficient action to ensure adequate and efficient construction and supervision thereof; and (3) that the utility is capable of financing the proposed construction without significant adverse financial consequences for the utility or its customers.

Having reviewed the record, the Commission finds, with regard to the first alternative showing in Section 8-406(b)(1), that Rock Island has not demonstrated that the Project is necessary to provide adequate, reliable, and efficient service to customers within the meaning of Section 8-406(b)(1).

BUT, regarding the second alternative:

In conclusion, upon consideration of the record and the determinations contained above, and subject to the conditions set forth above and elsewhere in this Order, the Commission finds that the Project will provide an opportunity for the delivery of more renewable energy into Illinois, and will promote the development of an effectively competitive electricity market that operates efficiently, including with respect to renewable energy; is equitable to all customers; and is the least cost means of satisfying those objectives, within the meaning of Section 8-406(b)(2).

Prior to recovering any Project costs from Illinois retail ratepayers through PJM or MISO regional cost allocation, Rock Island will obtain the permission of the Illinois Commerce Commission in a new proceeding initiated by Rock Island. For the purposes of the prior sentence, any system upgrades set forth in an interconnection agreement with PJM or MISO and the costs of which are allocated to Rock Island will be considered “Project costs.” For the avoidance of doubt, the phrase “recovering any Project costs from Illinois retail ratepayers through PJM or MISO regional cost allocation” includes the recovery of costs though PJM and MISO transmission service charges that are paid by retail electric suppliers in respect of their electric load served in Illinois.  

AND

As a condition of this Order, Rock Island shall not attempt to effect the interconnection until it has fully complied with the applicable requirements of PJM and the other conditions in this Order, and has signed all interconnection agreements.

AND (This is a biggie!)

Rock Island will not install transmission facilities for the Rock Island Clean Line Project on easement property until such time as Rock Island has obtained commitments for funds in a total amount equal to or greater than the total project cost.  For the purposes of this condition:

 (i) “install transmission facilities” shall mean to affix permanently to the ground transmission towers or other transmission equipment, including installation of bases and footings for transmission towers, but shall not include (A) preparatory work such as surveys, soil borings, engineering and design, obtaining permits and other approvals from governmental bodies, acquisition of options and easements for right-of-way, and ordering of equipment and materials, and (B) site preparation work and procurement and installation of equipment and facilities on property owned in fee by Rock Island including the converter station sites;

(ii) “easement property” shall mean property on which Rock Island has acquired an easement to install transmission facilities;

(iii)  “has obtained commitments for funds” shall mean (A) for loans and other debt commitments, that Rock Island has entered into a loan agreement(s) with a lender(s) and has received the loan funds or has the right to draw down the loan funds on a schedule that is consistent with the need for funds to complete the Project, and (B) for equity, that Rock Island or its parent company has received the funds from the equity investors or that the equity investors have entered into a commitment to provide funds on a schedule that is consistent with the need for funds to complete the Project; and  

(iv) “total project cost” shall mean the total estimated remaining cost, at the time that Rock Island is prepared to begin to install transmission facilities, for the following Project activities: engineering, manufacturing and installation of converter stations; transmission line engineering; transmission towers; conductor; construction labor necessary to complete the Project; right of way acquisition costs; and other costs necessary to complete the Project.  For reference, the total estimated project cost as of November 1, 2012 is $2.0 billion.

To allow the Commission to verify its compliance with this condition, Rock Island shall submit the following documents to the Director of the Financial Analysis Division and the Director of the Public Safety & Reliability Division at such time as Rock Island is prepared to begin to install transmission facilities:

a) On a confidential basis, equity and loan or other debt financing agreements and commitments entered into or obtained by Rock Island or its parent company for the purpose of funding the Rock Island Clean Line Project that, in the aggregate, provide commitments for funds for the total project cost;

b) An attestation certified by an officer of Rock Island that Rock Island has not, prior to the date of the attestation, installed transmission facilities on easement property; or a notification that such installation is scheduled to begin on a specified date;

c) A statement of the total project cost, broken out by the components listed in the definition of “total project cost,” above, and certified by an officer of Rock Island, along with a reconciliation of the total project cost in the statement to the total project cost as of November 1, 2012 of $2.0 billion; and

d) A reconciliation statement, certified by an officer of Rock Island, showing that the agreements and commitments for funds provided in (a) are equal to or greater than the total project cost provided in (c).

The Commission has reviewed the evidence and arguments.  First of all, to the extent Rock Island is asserting that the criteria in Sections 8-406(b) and 8-503 are identical, and that a finding the Section 8-406(b) criteria have been met would automatically mean the Commission is required to grant the relief sought under Section 8-503, the Commission disagrees.  Such an interpretation would render Section 8-503 superfluous.    

ComEd and Staff argue that Rock Island’s request for Section 8-503 relief is premature, in that Rock Island is seeking authority that cannot be utilized given the contingencies, conditions and regulatory approvals still needed.    While the Commission is by no means suggesting that RI would have to satisfy every condition, contingency or uncertainty before Section 8-503 authorization may be granted, the Commission does agree with Staff and ComEd that under the circumstances, it would be premature to grant Section 8-503 relief to Rock Island in this proceeding.  

Rock Island claims Section 8-503 approval is needed now because it is one of the major regulatory approvals needed to satisfy potential lenders and investors; however, Rock Island does not explain how a Section 8-503 authorization is somehow more urgent or important in that regard than is the proceeding in Iowa, where the Project originates and the first 379 miles of the 500-mile line would be built.  Even Rock Island does not estimate a decision being reached in Iowa until 2015, assuming the formal proceeding has even begun there.

IT IS FURTHER ORDERED that the request for relief pursuant to Section 8-503 of the Act is not granted at this time; this determination is without prejudice to the filing of a request for such relief in the future. 

When necessary for the construction of any alterations, additions, extensions or improvements ordered or authorized under Section 8‑503 or 12‑218 of this Act, any public utility may enter upon, take or damage private property in the manner provided for by the law of eminent domain.

Land surveys. For the purpose of making land surveys, any public utility that has been granted a certificate of public convenience and necessity by, or received an order under Section 8‑503 of this Act from, the Commission may, 30 days after providing written notice to the owner thereof by registered mail, enter upon the property of any owner who has refused permission for entrance upon that property, but subject to responsibility for all damages which may be inflicted thereby.

...the issuance of the Certificate will enable Rock Island to gain access to the property to conduct surveys and related activities, which are steps characterized by Rock Island as important ones in which to engage in the near future.

My name is Tammy Hammond, Kansas land owner for 30 years. As I sit here on
Independence Day 2014 my thoughts are consumed with the efforts of Grain Belt Express Clean Line's plan to run High Voltage Transmission Lines across my properties.
I'm very much opposed to the Grain Belt
Express 140 feet tall transmission towers,
carrying 750,000 volts of electricity, running
across our land. I could list pages of serious
health risks to my children and grandchildren, or provide statistics to the devastating de-valuation of property these High Voltage Power Lines will cause.
Probably, you have already heard those
arguments, so I would like to explain
something which I believe to be much more
profound...
I've been struggling for days with how to tell this story; how do I express with words why a
landowner will fight till their last breath, and their last dollar, to keep what is rightfully theirs?
How do you explain this so people understand the deep-rooted patronage of owning your
piece of the American dream...your Freedom in the heartland...the place you proudly call
home... What I discovered is something much deeper, much larger than Grain Belt Express....
I believe it is "American Spirit", how fitting to tell the story on July 4th, our Country's
Independence Day.

Click here to continue reading

So Today... this Message is for you, Grain Belt Express, Elected Officials or whoever is listening...
Do not underestimate our deep rooted sense of Freedom....
This is our land, my children's land, and so on for generations to come...
Earned with "our" blood, sweat and tears, it is
"we" who have the right to call this land home....
Make no mistake. We planted our "Flag of Freedom" and we will fight to
keep it...
you cannot have it...
you have not earned it...
we are here to stay...

I'm disturbed to see that you're regarding Lu Nelsen and Center for Rural Affairs as a primary source.  Center for Rural Affairs is not an intervenor in this project.  Center for Rural Affairs is a paid transmission advocate, through the RE-AMP program, it is paid to to promote transmission.

A CfRA Director also sits on the RE-AMP Steering Committee.   It's unfortunate that these facts are not included in your article -- this interest should be disclosed, because they are neither objective nor representing public interests or farmer interests.  If their paid advocacy was not disclosed to you, that's an even more significant problem.