SPRINGFIELD - Supreme Court Justices on Nov. 27 granted review of an appellate court decision against construction of a wind power line running 207 miles across Illinois.
Fifth District judges in Mount Vernon found in August that state commerce commissioners approved the line with no financial plan except a promise of demand.
Justice Randy Moore called it a classic case of putting the cart before the horse.
The line would begin at a potential wind farm in Kansas and end at a substation in Indiana.
In Illinois it would cross Scott, Greene, Macoupin, Montgomery, Christian, Shelby, Cumberland, and Clark counties.
Private developer Grain Belt Express petitioned commerce commissioners for a certificate of public convenience and necessity in 2015.
Commissioners approved it and owners of land on the line appealed, claiming only public utilities could obtain a certificate.
Fifth District judges vacated the certificate in 2018.
Moore wrote in his August opinion that rather than change its plan, Grain Belt Express set out to have legislation enacted.
He found the Climate and Equitable Jobs Act of 2021 authorized a “qualifying direct current applicant” to file for a certificate without owning, controlling, operating, or managing any plant, equipment or property in Illinois.
Grain Belt Express and its owner Invenergy qualified and applied for a certificate.
They stated they would not finance the project through rate payers but would base the financing on significant demand for renewable energy.
They claimed when the project reached an advanced stage Grain Belt Express would enter into specific arrangements with investors and lenders.
That satisfied commissioners, who found Grain Belt Express could finance construction without significant adverse consequences for the utility or customers.
They found the need for the project and the interest of developers supported a conclusion that Grain Belt Express could enter into sufficient contracts.
As a safeguard they prohibited installation on easement property until Grain Belt Express has obtained commitments for sufficient funds.
They found if Grain Belt Express couldn’t obtain commitments its investors would be the only parties experiencing financial consequences.
They granted authority to commence the project within five years.
Land owners and Illinois Farm Bureau appealed and prevailed.
Moore found Grain Belt Express asked the commission to speculate and trust that many unknown variables would fall into place.
He found Grain Belt Express anticipated financing 65% to 80% of the project through debt funded largely through Department of Energy grants or commercial banks.
He found a plan to obtain financing after entering into agreements with unknown parties and unknown terms didn’t satisfy the capability criteria in the law.
He found Grain Belt Express had no customers or commitments and had not been awarded any Department of Energy funds.
He found it even more concerning that the wind farm in Kansas does not exist.
He found Grain Belt Express claimed Invenergy has billions of dollars in assets and would fund the project until financing is secured.
“However, Grain Belt Express failed to introduce any evidence, not even a balance sheet, to establish the financial health of either Grain Belt Express or Invenergy," he wrote.