That Time Invenergy Bought a Permit, Not a Project

The Missouri Landowners Alliance filed a brilliant Motion at the MO PSC yesterday.  The Motion caused a thought and understanding explosion on my part.  How did everyone miss this until now?

The premise of the motion is that Grain Belt Express had abandoned its permit (CCN) when it made major modifications to the Grain Belt Express project.  Therefore, if the CCN for Grain Belt Express that was issued years ago is no longer valid, then GBE would have to file a new application for its new project and hope it received a new CCN.

Think about this...

Miss Kitty Hamm doesn't fit inside the box she's tried to jam herself into.  The box is sized for a different, much smaller cat.  No matter how hard she tries, she simply can't squeeze her bulk in to a box that doesn't fit.  The same can be said about Invenergy's Grain Belt Express project.

Once Invenergy bought the Grain Belt Express transmission project from now defunct Clean Line Energy Partners in 2019, it began to systematically abandon and reshape the project until it's now become a whole new project.

Changed facts:

1. Name change from Grain Belt Express Clean Line to just plain old Grain Belt Express.
2. Went from 206 miles of direct current line across Missouri to somewhere in the neighborhood of 254 miles of mixed DC/AC lines.
3. Changed its route to add a 40-mile AC "Tiger Connector" and take new rights of way from previously unaffected landowners.
   
4. Location of converter station went from Ralls Co. to Monroe Co.
5. The Ralls Co. converter was located "nearby" the proposed interconnection point.  The new Callaway Co. interconnection point is 40 miles from the new converter station in Monroe Co.
6. Desired interconnection point went from Ralls Co. to Callaway Co.
   
7. Added a new A/C substation in Callaway Co.
   
8. The capacity of the line went from 4,000 to 5,000 MW.
9. The capacity offered for sale in Missouri went from 500 MW to 2,500 MW.
10. Since converter station size was drastically increased it may cause a corresponding price increase of $500M.
    
11. Tower structures went from monopoles to 4-legged lattice masts.
12. Landowner payments went from 110% FMV plus structure payments, to 150% FMW without structure payments.
13. Grain Belt has morphed from one continuous project between SW Kansas and Indiana into some "two phase" hybrid, of which certain portions may or may not be built.  In fact, it seems that GBE has split into two distinct projects:  A)  SW Kansas to Callaway Co. Missouri; and B)  Callaway Co. Missouri to Indiana.  These two "phases" will operate independently through the permitting and construction phase.
14. Cost of the project went from $2.9B to $5.7B, nearly double the cost.
15. Grain Belt Express says that it is now selling "undivided interest (purchase or lease) or long-term contracts" instead of the negotiated rate contracts for capacity approved by the Federal Energy Regulatory Commission for Grain Belt Express Clean Line.  It's currently unclear whether the new Grain Belt Express even has an approved rate for its new project.  Without a rate or sale to "the public" is GBE even a "public utility"?
    

These are major changes.  Major changes so substantial that they are, in effect a new project.  However, Invenergy is trying to stuff them into the custom permit box the PSC built for Clean Line's Grain Belt Express project.  These two new projects just don't fit in the permit box. 

Grain Belt Express has changed so drastically that is no longer resembles the project that the MO PSC permitted.  Was Invenergy ever interested in building the Grain Belt Express project that the PSC has permitted and that it swore it was going to build when the PSC approved its purchase of the project?  Or was Invenergy only interested in buying a permit for a transmission project (a box) into which it could stuff a completely different transmission project without having to get permitted for the project it actually intends to build?  I seem to remember some requirement Invenergy tacked onto its purchase of the project that made the purchase contingent upon the state commissions approving the new ownership of the permit.  I'm starting to think that Invenergy only bought a permit, not a project.

When the PSC permitted Grain Belt Express Clean Line, it added a condition that says:

“If the design and engineering of the project is materially different from how the Project is presented in Grain Belt Express Clean Line LLC’s Application, Grain Belt Express Clean Line LLC must file an updated application with the Commission for further Commission Review and determination.”

A new application for a new project.   A new application requires a new review.  There's absolutely nothing in that condition that guarantees the existing approval will remain in place for a new application for a different project from a different owner.  Are MO PSC permits transferable commodities now that can be sold from company to company and be molded to guarantee approval of a completely different project?

Let the PSC know how you feel about this slight of hand (case number EA-2023-0017).  A materially different project requires a completely new review by the PSC.