PR-10-202 -- PSC Approves Change To The Empire District Electric Company Fuel Adjustment Charge

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- MAY 13, 2010

JEFFERSON CITY---The Missouri Public Service Commission has adjusted the fuel adjustment charge (FAC) as required by a tariff governing The Empire District Electric Company (Empire).

The FAC rider mechanism, which allows for this adjustment, was adopted in a July 2008 rate case decision and is in no way associated with the pending Empire rate case that is currently before the Commission.  The FAC mechanism allows for an adjustment to address fuel and purchase power cost volatility. 

Empire stated in its application that its filing reflects actual energy costs that Empire incurred during the period of September 1, 2009 through February 28, 2010.  Empire stated that the a major factor responsible for increases in its fuel and purchased power costs was the abnormally cold weather conditions during the 2009-2010 winter, which caused higher than expected natural gas usage at Empire’s power plants.

For a residential electric customer using approximately 1,000 kilowatts of power a month, the FAC rider adjustment will increase the monthly electric bill by approximately $2.03.  The change starts with the June billing month. 

On April 26, 2010, the PSC staff filed its recommendation indicating that Empire’s tariff complies with the Commission’s order that established the company’s FAC and with all applicable statutes and regulations.  No other party, including the Office of the Public Counsel-the consumer’s advocate, opposed the PSC staff recommendation, objected to the tariff, or requested a hearing.

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-2010-0275