PR-09-168 -- PSC Sets Intervention Deadline in Empire District Fuel Adjustment Charge Case

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- APRIL 4, 2009

JEFFERSON CITY—The Empire District Electric Company (Empire) has filed a request with the Missouri Public Service Commission to adjust the fuel adjustment charge on the bills of its electric customers.  The charge, known as the fuel adjustment clause or FAC, appears as a separate item on the monthly electric bill.

In a rate case decision last July, the Public Service Commission granted Empire’s request to implement a fuel adjustment clause in order to address fuel and purchase 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.

According to Empire’s filing, the variable costs of fuel and purchased power have increased over the base fuel costs.  Empire’s FAC request is designed to recover energy cost increases of approximately $1.92 million.  For a residential customer using approximately 1,000 kilowatts of power a month, the request would increase monthly electric bills by approximately $0.87.

Empire seeks the FAC adjustment to reflect higher coal and freight costs and the reduced availability of the Iatan 1 generating facility.  Empire states these increases were partially offset by lower gas generation costs; spot market purchases at lower costs and higher than anticipated off-system sales margins.

Applications to intervene and participate in this case must be filed no later than April 22, 2009, with the Secretary of the Missouri Public Service Commission, P.O. Box 360, Jefferson City, Missouri 65102.  Copies of the application should be sent to: W. Scott Keith, The Empire District Electric Company, 602 South Joplin Avenue, Joplin, Missouri 64802; L. Russell Mitten, Esq., Brydon, Swearengen & England, 312 East Capitol Avenue, P.O. Box 456, Jefferson City, Missouri 65102; and the Office of the Public Counsel, P.O. Box 2230, Jefferson City, Missouri 65102-2230.

The Office of the Public Counsel is a separate state agency that represents the general public in matters before the Commission.  Individual citizens wishing to comment should contact either the Office of the Public Counsel (Governor Office Building, 200 Madison Street, Suite 650, P.O. Box 2230, Jefferson City, Missouri 65102-2230, telephone (866) 922-2959, e-mail opcservice@ded.mo.gov) or the Public Service Commission staff (P.O. Box 360, Jefferson City, Missouri 65102, telephone 1-800-392-4211, e-mail pscinfo@psc.mo.gov).

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.

-30-

Case No. EO-2009-0349