A summary of Clean Lines (lack of) Finances: It became more apparent during the cross-examination of Rock Island witnesses just how precarious Rock Island’s financial condition is, both from the standpoint of its own continued survival during the development of the many projects currently in the portfolio of Rock Island’s parent Clean Line Energy Partners, and the seemingly insurmountable hurdles Rock Island must clear in order to accomplish the project financing it requires in order to construct its Project. Clean Line Energy Partners (“Clean Line”) has five separate transmission projects in early stages of development, with projected project costs as noted: 1. Plains and Eastern Clean Line – 700 miles, 3 states, $2 billion 2. Rock Island Clean Line - 500 miles, 2 states (incl. Illinois), $2 billion 3. Centennial West Clean Line – 900 miles, 3 states, $2.5 billion 4. Grain Belt Express – 750 miles, 4 states (incl. Illinois), $2 billion 5. Western Spirit Clean Line – 200 miles, 1 state, $350-$400 million RI Petition; RI Ex. 1.1REV; Tr. pp. 192 – 196, p. 269. 31 As can be seen from the above, Clean Line is facing the task of raising financing not just for the Rock Island Project, but over $8 billion for all of its projects. See Tr., p. 1107, ll. 1 – 20. At the hearings, certain confidential cross-examination exhibits were introduced showing development expenses incurred by Clean Line to date, and projected additional development expenses through 2015. See, e.g., ILA Group Cross Ex. 1 CONFIDENTIAL. Beyond, the 2015 projected year, as Mr. Skelly testified, Clean Line will need to continue to spend additional monies on development. Tr., p. 211, ll. 21 – 24, p. 212, ll. 1 – 5 (“It’s a certainty”). Clean Line’s Board of Directors determines how available development capital is allocated among its subsidiaries and projects. TR., p. 215, ll. 19 – 24, p. 216, ll. 1 – 7; ComEd Cross Ex. 10 PUBLIC. Consequently, Rock Island does not control its own capital sourcing or spending, as those decisions are made at the parent company level; it is fair to say that Rock Island has to compete with other Clean Line project entities for capital. Clean Line has $15 million left in committed development capital, that coming from National Grid. ComEd Cross Ex. 4 PUBLIC; Tr., p. 1110, ll. 4 – 17. Based on its capital available both on-hand and committed, at present rates of development spending, Mr. Berry testified at hearing that Clean Line will need to find additional capital during 2014 in order to continue to fund its projects. Tr., p. 1111, ll. 16 – 24 (“Based on these projections, and assuming the board allocates capital consistently with these projections, we would need to raise additional capital from our investors or other sources sometime in 2014.”). p. 31-32 ILA Brief to the Illinois Commerce Commission BlockRICL
Posted on: Mon, 03 Feb 2014 17:51:50 +0000
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