PR-10-74 -- PSC Approves Change To The Empire District Electric Company Fuel Adjustment Charge

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- NOVEMBER 5, 2009

JEFFERSON CITY---The Missouri Public Service Commission has approved a request filed by The Empire District Electric Company (Empire) to lower the fuel adjustment charge (FAC) on the bills of its electric customers.  The charge appears as a separate item on monthly electric bills.  The change takes effect on December 1, 2009.

In an October 1, 2009 filing, Empire proposed an approximate $820,440 decrease in the FAC.  Empire stated the filing reflected its actual energy costs that it had incurred during the six month period of March 2009 through August 2009.  For a residential electric customer using approximately 1,000 kilowatts of power a month, the FAC adjustment will result in a decrease of approximately $1.27 a month.

Empire stated the major factors for the decrease in the FAC included: cooler than normal weather conditions, lower natural gas generation usage, lower natural gas prices and lower spot purchased power prices.

In a July 2008 rate case decision, the Public Service Commission granted Empire’s request to implement a fuel adjustment clause in order to address fuel and purchased power cost volatility.  Base electric rates were established in that rate case reflecting a certain level of fuel and purchase power costs.  The fuel adjustment clause will reflect increases or decreases in those costs above or below those set in base rates.

The Empire District Electric Company serves approximately 147,000 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-2010-0105