Miranda Wilson | 11/12/2021 07:20 AM EST

The picture shows the Spire STL natural gas pipeline waiting for construction. Federal Energy Regulatory Commission

Yesterday, the fight over the future of the Midwest Natural Gas Pipeline escalated as the developer of the project warned that it might be closed this winter, while critics accused them of misleading the public on the issue of fuel shortages.

The 65-mile Spire STL pipeline was completed in 2019 and is currently operating in St. Louis with a temporary permit from the Federal Energy Regulatory Commission, which will expire on December 13. Although the Federal Energy Regulatory Commission approved the project with a 3-2 vote three years ago, the Federal Court revoked Spire STL LLC’s original license (Energywire, September 8).

This legal case has a national interest because it may force the Federal Energy Regulatory Commission, which has jurisdiction over interstate natural gas pipelines, to change its broad way of determining whether natural gas projects should be approved.

According to some estimates, FERC has approved more than 99% of the proposed natural gas pipelines, and when deciding whether to approve a project, it usually relies on the existence of so-called precedent agreements between the developer and one or more customers.

"This case clearly shows that FERC needs to reform its review of pipeline infrastructure and ensure that it conducts the rigorous assessment entrusted by Congress in accordance with the Natural Gas Act," said Natalie Karas, Chief Legal Counsel and Senior Director of the Ministry of Environment's energy plan for the National Defense Fund yesterday Said on the phone with reporters.

Observers said the court ruling of the U.S. Court of Appeals for the District of Columbia Circuit also marked the first time the FERC license of an interstate natural gas pipeline in service has been revoked. At the same time, the independent agency is already considering whether to change the “certificate policy statement” that guides its proposed natural gas pipeline decision-FERC Chairman Richard Glick said the process should be more thorough (Energywire, May 28).

Spire has asked FERC to allow the project to operate throughout the winter after December 13, while the agency decides how to respond to the DC Circuit’s unanimous ruling.

Scott Carter, president of Spire's subsidiary natural gas utility company Spire Missouri, said that Spire has no other natural gas source to ensure that the supply can reliably meet the peak demand of all customers this winter.

Carter said at a press conference: "Anything that can replace it takes time to build. We need to reconfigure our system and do other things to meet long-term needs." "You can't simplify these things too much."

Last week, the company sent an email to its approximately 650,000 customers in the St. Louis area, which warned that natural gas services could be disrupted and disrupted if FERC does not approve its request.

In addition, it urges customers to contact FERC. Last week, dozens of residents in the St. Louis area made comments to independent agencies expressing concerns about heat loss after the pipeline was closed.

The company said in a statement: “We are confident that we have done everything we can to demonstrate the key role that the pipeline plays in providing energy to the St. Louis community, but there is no guarantee that it will operate after December 13.” Email last week .

FERC declined to comment on the company's request, which is pending. According to the FERC notice issued this week, the committee may issue a decision at its regular public meeting next week in response to several requests for a review of its September authorization of existing temporary certificates.

"[This] only applies to the motion to re-examine the FERC September 14 order to authorize Spire STL to operate under an emergency authorization.... We do not expect to take action on Spire STL’s pending request for temporary/emergency certificates "ClearView Energy Partners said in a research report yesterday.

Environmental groups accused Spire of severely exaggerating the possibility of natural gas service disruptions, saying that if it weren't for Spire's own actions in the past two years, it would never pose a threat. According to a report issued by the Missouri Public Department in August, after the Spire STL project went live in 2019, the company changed its distribution system to accommodate the capacity of its own pipeline, which made it "more dependent on Spire STL and interconnection Pipeline Service Committee.

FERC granted the company an initial return on equity of 14% when it approved the pipeline in 2019. Critics say Spire hopes to continue operating the pipeline to make huge profits. Spire officials countered that the project reduced energy costs for St. Louis customers and helped keep natural gas services open during the February winter storm Uri.

Elected officials, businesses, and non-profit organizations in St. Louis defended Spire and urged FERC to issue certificates to sustain the entire winter. But yesterday, two local politicians accused Spire of sending an e-mail dated November 4 to customers, sparking fear in the community.

"We call on Spire to reconnect with their customers and provide them with correct and clear information to make them feel safe," said Christine Ingrassia, a councilwoman for the 6th district of St. Louis.

Critics of Spire say that FERC can almost guarantee that the pipeline will remain in service throughout the winter because the area may now be dependent on the heating of the project. They said that Spire should be honest about this inevitability.

"They themselves admit that they hope to extend their temporary permit any day now," Lisa Clancy, a member of the Fifth District of St. Louis County, said on a news conference call with EDF yesterday.

Clancy and 11 other local leaders have asked FERC to issue a "rate cap" while the project is still in service, so that the company will not profit from the so-called "self-deal".

In the June decision of the DC Circuit Court, the court found that FERC ignored the evidence of self-transaction because the proposal involved a precedent agreement between the subsidiary Spire STL and Spire Missouri.

Jason Merrill, Spire's director of integrated corporate communications, said he believes the pipeline is "very likely" to continue operating throughout the winter. But until FERC takes action, there is still no guarantee, he said.

"We are in a position where we must be transparent to our customers," Merrill said. "If there is no STL channel, this is not the information you told people on December 13. At this time, you have entered November and there is no guarantee that we know."