During the Missouri Public Service Commission's hearing on the most recent Grain Belt Express application for a permit, much was made of a supposed power purchase contract between Missouri Joint Municipal Electric Utility Commission (MJMEUC) and Infinity Wind. In Rebuttal Testimony before the PSC, Infinity Wind's Matt Langley stated:
I am referring to a contract that was just entered into on January 23, 2017, between Infinity and MJMEUC. Because the contract is contingent upon the approval of the Grain Belt Express Project, many of the terms remain confidential, but what I can say is that it is a 20-year term fixed-price contract that provides for the purchase by MJMEUC of a minimum of 100 MW of capacity and energy per year from our Iron Star Wind Project, a maximum purchase of 300 MW per year, and a likely purchase amount of 200 MW per year.
So, if we believe MJMEUC is committed to purchase at least 100 MW (but more likely 200 MW) from Infinity's Iron Star Wind Project, and that the energy must be delivered to MJMEUC via the Grain Belt Express, then the construction and operation of Iron Star must be contingent upon Grain Belt being in operation.
But, a recent article in the Wichita Eagle stated
But, a recent article in the Wichita Eagle stated
The 400-megawatt Iron Star wind farm near Dodge City is in advanced development and likely will be built this year.
Even if the MO PSC approves Grain Belt Express this year, the soonest the project could be online is somewhere after 2020. And even that is a stretch, considering that GBE doesn't have near the amount of customers needed to finance its project.
So how is it that Infinity Wind will be building its 400 MW Iron Star project this year, when a committed customer that would purchase half the project's capacity cannot take delivery until sometime after 2020? Is Infinity Wind going to build the Iron Star project and let half of its turbines sit idle until sometime after 2020? Does Infinity Wind have another committed customer who promises to buy MJMEUC's share of the project, delivered over existing transmission lines, until GBE is built and MJMEUC can take delivery? Or is the MJMEUC contract simply a stunt designed to persuade Missouri regulators to approve GBE, and that Infinity Wind doesn't believe will actually come to fruition? Infinity Wind simply can't have it both ways. Either Infinity is going to build Iron Star and sell the full capacity to another customer, or Infinity is not going to build Iron Star, and forego the opportunity to make money from the project for many years. It just doesn't make sense.
In its Amicus brief at the Illinois Supreme Court (in the matter of Rock Island Clean Line's appeal of the Third District Appellate Court) Infinity Renewables stated
So how is it that Infinity Wind will be building its 400 MW Iron Star project this year, when a committed customer that would purchase half the project's capacity cannot take delivery until sometime after 2020? Is Infinity Wind going to build the Iron Star project and let half of its turbines sit idle until sometime after 2020? Does Infinity Wind have another committed customer who promises to buy MJMEUC's share of the project, delivered over existing transmission lines, until GBE is built and MJMEUC can take delivery? Or is the MJMEUC contract simply a stunt designed to persuade Missouri regulators to approve GBE, and that Infinity Wind doesn't believe will actually come to fruition? Infinity Wind simply can't have it both ways. Either Infinity is going to build Iron Star and sell the full capacity to another customer, or Infinity is not going to build Iron Star, and forego the opportunity to make money from the project for many years. It just doesn't make sense.
In its Amicus brief at the Illinois Supreme Court (in the matter of Rock Island Clean Line's appeal of the Third District Appellate Court) Infinity Renewables stated
In sum, in the absence transmission certainty,
with regard to both the existence of the physical line and the user fees, wind generation developers, such as Infinity, will not commit capital to develop new generation projects in areas that currently lack such access.
So Infinity will not tie up its money developing new generation until the transmission it plans to use for delivery to customers is physically online.
But yet, Infinity claims that its Iron Star project is in "advanced development" and will likely be built this year, even though Grain Belt Express has not been approved and can't possibly even deliver until sometime after 2020. "Advanced development" most likely indicates that Infinity has invested some capital in "developing" the project.
So, which is it, Infinity? Are you developing Iron Star for production and sale of generation without the existence of Grain Belt Express? Or are you committing capital to develop new generation without transmission certainty?
Or was Infinity's testimony to the Missouri Public Service Commission just a bunch of hot air? These contradictions just can't be reconciled. One of those Infinity Wind statements just isn't true. Which one do you think it is?
But yet, Infinity claims that its Iron Star project is in "advanced development" and will likely be built this year, even though Grain Belt Express has not been approved and can't possibly even deliver until sometime after 2020. "Advanced development" most likely indicates that Infinity has invested some capital in "developing" the project.
So, which is it, Infinity? Are you developing Iron Star for production and sale of generation without the existence of Grain Belt Express? Or are you committing capital to develop new generation without transmission certainty?
Or was Infinity's testimony to the Missouri Public Service Commission just a bunch of hot air? These contradictions just can't be reconciled. One of those Infinity Wind statements just isn't true. Which one do you think it is?
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