PR-10-208 -- PSC Approves Agreement Reached In Empire District Electric Company Rate Case

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- MAY 20, 2010

JEFFERSON CITY—The Missouri Public Service Commission has approved an agreement between The Empire District Electric Company (Empire), the PSC staff, the Missouri Department of Natural Resources and the City of Joplin which authorizes Empire to increase annual electric operating revenues.

Non-signatories to the agreement, Kansas City Power & Light, the Midwest Energy Users’ Association and the Office of the Public Counsel, the consumer’s advocate, stated they did not oppose the agreement and waived rights to a hearing on the issues resolved in the agreement.

The rate increase reflects the company’s increased costs of providing electric service to its customers, including environmental upgrades at the Iatan 1 power plant.  The agreement also includes the continuation of demand side management programs designed to help consumers control their energy costs.  The agreement also requires continuation of a company-funded program to assist low income customers.   

The amount of the electric rate increase will be determined based upon the only issue that still remains in the case.  That issue centers on whether the Plum Point generating unit is “fully operational and used for service” by August 15, 2010. 

If the Commission determines that the Plum Point generating unit is “fully operational and used for service” on or before August 15, 2010, Empire is authorized, under the Commission approved agreement, to receive an electric rate increase of approximately $46.8 million.  For a residential customer using approximately 1,000 kilowatt-hours of electricity a month, the increase would be approximately $13.03 per month (13.35%). 

If the Commission finds that the Plum Point generating unit is not “fully operational and used for service” on or before August 15, 2010, Empire is authorized, under the agreement, to receive an electric rate increase of approximately $33.1 million.  For a residential customer using approximately 1,000 kilowatt-hours of electricity a month, the increase would be approximately $9.22 per month (9.44%).

Under the agreement, new electric rates will take effect for service on and after September 10, 2010, not during the summer cooling season.

The agreement was approved unanimously by the Commission.  Chairman Robert Clayton filed a concurring opinion, which is attached. 

On October 29, 2009, Empire filed a rate request with the Missouri Public Service Commission seeking to increase annual electric operating revenues by approximately $68.2 million.  For a residential customer using approximately 1,000 kilowatt-hours of electricity a month, the rate increase, if approved as filed, would have increased the monthly electric bill by approximately $19.21.

Empire 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