Pliura Intervenors v. Illinois Commerce Commission

Enbridge Pipelines (Illinois), LLC (Enbridge Pipelines) submitted an application to the Illinois Commerce Commission (commission) (defendant) for certification as a common carrier by pipeline and authorization for construction and operation of an oil pipeline. Enbridge Pipelines’s parent company, Enbridge, Incorporated (Enbridge) had commenced an expansion project in 2005. As part of this project, Enbridge Pipelines sought approval of a new pipeline ending in Pontiac, Illinois. Enbridge Pipelines also sought the authority to exercise powers of eminent domain. Enbridge Pipelines pointed to the growing demand for oil consumption in the United States and that Illinois produced only 3 percent of the oil it consumed in support of its application. Enbridge Pipelines also noted that its pipeline could serve the five nearby oil refineries and ensure a reliable supply of oil to help meet increasing demand. Enbridge Pipelines posited that the pipeline extension would benefit Illinois and the United States by providing increased access to Canadian oil, resulting in lower prices and improved reliability. A commission staff member provided written testimony as to Enbridge Pipelines’ financial capabilities. The staff member concluded that Enbridge had sufficiently committed to providing capital for construct of the pipeline, which was estimated to cost about $500 million. The Pliura Intervenors and the Turner Intervenors (intervenors) (plaintiffs) intervened in the proceeding to determine the disposition of Enbridge Pipelines’ application. The intervenors economic expert claimed that Enbridge Pipelines’ expert failed to properly consider the costs and benefits of the project and that a public need for the pipeline did not exist. The commission determined that Enbridge Pipelines was fit and able to construct and operate the pipeline extension and approved its application. The intervenors appealed.