Missouri PSC sets deadline to intervene in two Transource projects

The Missouri Public Service Commission (PSC) has set a Sept. 28 deadline for applications to intervene and participate in the case involving two 345-kV transmission projects proposed by Transource Missouri and approved by the Southwest Power Pool (SPP) as regionally beneficial (Case No. EA-2013-0098).

Transource Missouri filed an application Aug. 31 seeking a certificate of convenience and necessity (CCN) for the Iatan-Nashua project and the Sibley-Nebraska City project. The two projects are among seven projects identified and approved by SPP in 2009 “as part of a ‘balanced portfolio’ of economic upgrades that will benefit the entire SPP region and whose costs would be allocated regionally,” according to the application.

The PSC announced the deadline for applications to intervene on Sept. 5.

Transource Missouri is subsidiary of Transource Energy, a joint venture between American Electric Power (NYSE:AEP) and Great Plains Energy (NYSE:GXP), the parent company of Kansas City Power & Light (KCP&L) and Greater Missouri Operations Company (GMO).

Contemporaneous with the filing of its application, Transource Missouri filed at FERC to obtain approval of incentive rate treatment for the 30-mile Iatan-Nashua project and for the Missouri portion of the 175-mile Sibley-Nebraska City line.

Construction of the projects will be completely funded by KCP&L and GMO until they are novated, after which Transource will reimburse KCP&L and GMO for their respective costs. None of the costs of these two SPP projects to date has been charged to the retail customers of either KCP&L or GMO, according to the application.

The Iatan-Nashua project is estimated to cost $64.8m. Transource Missouri’s portion of the Sibley-Nebraska City project is $380m; the remaining $20m will be paid by the Omaha Public Power District.

The lines are expected to be placed in service in 2015 and 2017, respectively.