When the Federal Energy Regulatory Commission (FERC) decided last year to grant a temporary certificate to allow the STL pipeline to stay in operation, it included an open-ended termination date while the commission reviewed the entire project anew. FERC’s overall review is anticipated to conclude in early 2023.
“Our message at the time the pipeline was built was that it was there to provide more reliability and affordability to customers here in the St. Louis region and we feel that's been proven out,” said Jason Merrill, Spire's director of integrated corporate communications. “We look forward to working with all parties to continue that discussion.”
Since then, a Missouri Public Service Commission report produced by Schumaker and Co. was submitted along with a Missouri Public Safety Commission staff memo, according to media reports.
“They did a prudency review of that relationship between Spire Missouri and the Spire STL pipeline and their conclusion was that there was no imprudence with regard to Spire Missouri's decision to enter into a contract with the pipeline and that the pipeline complies with Missouri affiliate transaction rules,” Merrill told the St. Louis Record. “It also noted that Spire Missouri negotiated a rate below the allowed market rate that Spire STL pipeline could charge customers.”
As previously reported in the St. Louis Record, the Environmental Defense Fund (EDF) had challenged the pipeline’s approval with a lawsuit alleging there were flaws in the pipeline and that the St Louis region isn't growing.
“Our view is that St. Louis is growing westward, and this pipeline is able to improve our reliability for the St Louis region and provide natural gas supply and pressures that help the Western part of our service territory in the St Louis area,” Merrill said. “The prudency review does show that rates are well below the authorized market rate that the pipeline can charge customers.”
A response to the reports was due this week from the Environment Defense Fund.
“During FERC’s entire remand process, there are a lot of things they will ask from us,” Merrill said. “We'll work with all parties and anything they need as we talk about the importance of the pipeline for the St. Louis region. We feel when everybody has the opportunity to look at all this information, the STL pipeline will remain in service.”