Thread by @ssteingraber1

Big news for @FERC watchers and pipeline fighters 👀

US Court of Appeals just revoked approval of an in-service gas pipeline in MO and IL, ruling that the gas utility had failed to prove need.

Case could mark tipping point for future pipeline approvals.

stltoday.com/business/local…

This is the 65-mile, two-year-old Spire pipeline that runs north into IL farm country from St Louis and was built over the objections of farmers/landowners whose land (and drainage) was wrecked.

Spire had effectively stalled formal challenges to the pipeline’s 2018 approval via the FERC rehearing process until the construction was all done in 2019.

So now what?

The Court noted that Spire failed to attract interest from independent gas shippers, who didn’t commit to buy fuel from the new line, showing lack of demand. Pipeline proposals before FERC are supposed prove market needs, so that they’re not subsidized by existing customers.

But that’s not what happened.

“Spire used its own affiliates to serve as both the pipeline developer and the entity that committed to buying gas from the project. That set up Spire to collect the 14% return allowed by regulators for building the pipeline, but…”

“…also opened up the company to lines of attack about alleged self-dealing because opponents argued that there was still no demonstrated need for the line.” Demand for natural gas in the region has been flat.

So…pipeline is transporting money from ratepayers to shareholders?

Insiders say that the ruling could reshape policies at the FERC “and force the agency to apply far more careful scrutiny to future pipeline projects seeking approval.”

And some serious folks are wondering if this case might be the beginning of end of new pipelines altogether…

https://twitter.com/howarth_cornell/status/1414187253396561924