PR-10-180 -- Parties Directed To Address Concerns Raised By Empire District Electric Low-Income Residential Customers

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- APRIL 5, 2010

JEFFERSON CITY---Recently, the Missouri Public Service Commission held several local public hearings regarding an electric rate increase request filed by The Empire District Electric Company (Empire). 

“Several witnesses testified before the Commission that any rate increase would add to an already heavy financial burden on low-income residential customers of Empire.” said PSC Chairman Robert M. Clayton III.  “Based upon that testimony, the Commission wants to hear from parties in this rate case on ideas that they might have for reducing the financial burden of low-income residential customers of Empire while providing a fair and adequate return to the electric company.”

The Commission has directed the parties to file additional testimony regarding the needs of Empire’s low-income residential customers.

In addition to methods traditionally used to assist low-income customers, the Commission has asked the parties to address the feasibility of establishing an experimental “very low-income” customer class that would be based upon the federal poverty level.

The Commission is seeking testimony from the parties that: 1) analyze the practicality of establishing such a class, including the effect on revenues and costs, 2) propose guidelines for inclusion in such a class, 3) propose verification procedures for participants in such a class, 4) analyze the possible effect on the company’s bad debt expense of such a class, and 5) state an opinion as to whether such a class should be tied to the current industrial rate class or propose an alternate rate.  

Testimony addressing this issue can be filed as either additional direct testimony by April 9, 2010; or as rebuttal testimony no later than April 16, 2010; or as surrebuttal testimony which must be filed by April 23, 2010.

The Empire District Electric Company serves approximately 148,000 electric customers in the Missouri counties of Barry, Barton, Cedar, Christian, Dade, Dallas, Greene, Hickory, Jasper, Lawrence, McDonald, Newton, Polk, St. Clair, Stone and Taney.

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Case No. ER-2010-0130