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Posted: Friday, 09 May 2008 6:30AM

Senators Vote to Spare Aquila Plant

JEFFERSON CITY, Mo. (AP) Senators intervened Thursday in a long-running court battle in an attempt to spare Aquila Inc. from having to tear down an unauthorized power plant. The legislation passed 26-5 Thursday by the Senate would allow the Missouri Public Service Commission to retroactively authorize the construction of a power plant in Cass County that was built several years ago without local zoning approval. The Senate's action sends the bill back for a final vote to the House, which already passed an earlier version of the bill. Supporters of the legislation contend they are acting on the best interest of electricity consumers, who they fear would be inconvenienced _ or worse yet, stuck with the bill _ if Aquila had to pay an estimated $20 million to dismantle the plant and an additional $75 million to rebuild it with proper approval. New to the Senate version is a provision that would allow nearby residents to proceed with lawsuits against Aquila, even though the power plant would remain open. "It's a touchy matter. We know they messed up,'' said sponsoring Sen. Kevin Engler, R-Farmington. "Now should the penalty be the cost of tearing down a power plant and then rebuilding it? Or should we continue to let the people sue for their personal harm in the situation and continue to let the power plant operate?'' Senators ultimately agreed with that second alternative put forth by Engler. But that came only after hours of opposition, led by Democratic Sen. Joan Bray, D-St. Louis, who argued the plant should be torn down. "This company defied a court order saying not to build the plant, and they did it anyway,'' Bray said. "That is an astounding action on the part of a corporation. I am not comfortable with a slap on the wrist.'' Aquila's South Harper power plant opened in June 2005 as a way to provide supplemental power during hot summer months. Kansas City-based Aquila built the plant without local zoning permits, contending it had a state-issued "certificate of need'' for the plant and didn't need the county's approval. The county sued. Cass County Circuit Judge Joseph Dandurand and an appeals court agreed that the state-issued certificate didn't specifically cover the Peculiar plant. After the appeals court ruling against Aquila, the PSC voted in 2006 to approve the plant. The regulatory agency said that while the company hadn't received county zoning approval for the plant, it was in the public's interest and should be allowed. But Dandurand again ruled against Aquila, and the appeals court agreed, ruling that state law requires the commission to authorize power plants before construction begins. The legislation passed Thursday would specifically put into state law the power for the PSC to approve the Aquila electric plant after its construction, if commissioners determine it "is necessary or convenient for the public service.'' Bray said the bill sends a poor message by allowing a corporation to ignore a court ruling without punishment while regular citizens would be jailed for similar actions.

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