PR-11-23 -- PSC Approves Agreement Determining Power Plant Is Fully Operational And Used For Service

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- AUGUST 19, 2010

Empire Rate Increase Is Expected To Take Effect Next Month

JEFFERSON CITY---The Missouri Public Service Commission has approved an agreement between the Office of the Public Counsel (which represents ratepayers in the state), the PSC staff and The Empire District Electric Company (Empire) determining the Plum Point power plant located in Osceola, Arkansas, was fully operational and used for service before August 15, 2010.

In May, the Commission approved an agreement reached by several parties which granted Empire an electric rate increase.  The amount of the rate increase depended upon whether the Plum Point power plant was considered fully operational and used for service by August 15, 2010.

The agreement approved by the Commission in May called for a rate increase of approximately $46.8 million if Plum Point was fully operational and used for service by August 15, 2010 or a rate increase of approximately $33.1 million if it wasn’t. 

Under the agreement just approved by the Commission, Plum Point completed the in-service criteria set by the Public Service Commission and was fully operational and used for service prior to the August 15, 2010 deadline.

"The Commission is pleased that the state-of-the-art Plum Point power plant is now providing service to Empire’s customers,” said PSC Chairman Robert M. Clayton III.  “This facility has the most advanced equipment available to meet all required environmental regulations."

Under the $46.8 million increase, a monthly electric bill for a residential customer using approximately 1,000 kilowatt-hours of electricity will increase by about $13.03 a month (13.35%).  The rate increase is expected to take effect for service on and after September 10, 2010. 

When The Empire District Electric Company filed its rate request with the Missouri Public Service Commission on October 29, 2009, it sought to increase annual electric operating revenues by approximately $68.2 million. 

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