PR-11-80 -- Change in Fuel Adjustment Charge Approved for the Empire District Electric Company

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- NOVEMBER 26, 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 fuel and purchased power costs during the six month period March 1, 2010 through August 31, 2010. The company stated major factors responsible for the increases in Empire’s fuel and purchased power costs were the expiration of a long-term power contract and warmer than normal weather during the 2010 summer which caused an increase in gas usage at Empire’s power plants.

For a residential customer using 1,000 kWh (1,000 kilowatt-hours) of electricity a month, electric bills will increase by approximately $0.90 a month. This change will take effect on December 1, 2010.

On October 29, 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 party 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-2011-0095