Jun. 2--After months of litigation, public hearings and hot tempers, Aquila Inc. is free to fire up its South Harper power plant, a judge ruled Thursday.

In January, Cass County Circuit Judge Joseph P. Dandurand ordered the Kansas City-based utility to shut down and prepare to dismantle the new $140 million plant because Aquila had built it without zoning approval or a building permit.

But last week, days before Dandurand's teardown deadline, the Missouri Public Service Commission approved the plant, saying it was necessary for Aquila to serve its customers.

At a hearing Thursday in Warrensburg, Dandurand lifted the stay in which he ordered Aquila not to operate the plant, which is south of Peculiar. He also dissolved a $20 million bond the company had put up at that time.

But the decision was not an all-out victory for Aquila. Dandurand made clear he was not vacating the original order to dismantle the plant, because Cass County is expected to appeal the commission's ruling.

Also, Dandurand kept in place an original $350,000 bond that he ordered Aquila to post before the plant was completed.

Dandurand also expressed concern about Aquila's finances. In March, the Missouri public counsel said recent decisions, including paying millions of dollars in bonuses to top executives, had pushed the company close to bankruptcy.

Some observers expect the South Harper case to end up in the Missouri Supreme Court.

"We anticipate this will go on for some time," Aquila spokesman Al Butkus said Thursday.

Cass County Presiding Commissioner Gary Mallory said an appeal could be filed today.

Also Thursday, the Public Service Commission rejected the county's request for a rehearing on the South Harper issue. That decision, though not in Cass County's favor, opened the door for the county to get the case back into state court, where it consistently has beaten Aquila.

Despite the time and money the case has incurred, Mallory said the county's position had not softened. He took the lead in opposing Aquila, which he said tried to bully the county by ignoring its regulations.

"We think the PSC and Aquila are dead wrong on this," Mallory said. "We feel like we are standing up for a whole lot of people in this county and the state, and we're not going to back off until they order me to -- and maybe not even then."

Butkus said the court's concern over Aquila's finances was unwarranted. He said that the company was on a growth path and that "our balance sheet is getting stronger."

Aquila has been reducing debt by selling four of its utilities, including its Missouri natural gas distribution operation to a unit of Joplin's Empire District Electric Co. That sale, for $102.1 million, was completed Thursday. It covers 48,500 customers in 44 Missouri communities.

The county and a group of residents sued Aquila last year when the company began building the natural-gas-fired plant. Dandurand ruled in their favor. Aquila appealed and continued construction.

To reach Donald Bradley, call (816) 234-7810 or send e-mail to bradley@kcstar.com .