PR-11-183 -- Unanimous Agreement Reached In Empire Rate Case: Rates To Take Effect June 15

Contact: Kevin Kelly (573) 751-9300
FOR IMMEDIATE RELEASE -- JUNE 1, 2011

JEFFERSON CITY---The Office of the Public Counsel -- the state’s utility consumer advocate -- The Empire District Electric Company, the Missouri Department of Natural Resources, and the staff of the Missouri Public Service Commission reached an agreement resolving all issues in an electric rate case filed last September by The Empire District Electric Company.

The City of Joplin, the Midwest Energy Users’ Association and Kansas City Power & Light Company indicated to the Missouri Public Service Commission that they were not opposed to the agreement reached.  Today, the PSC approved the agreement.

“We are extremely mindful of the events that have occurred in Joplin.  Our hearts go out to those who lost loved ones in the devastating tornado and to those who are faced with the task of rebuilding,” said PSC Chairman Kevin Gunn.  “We approved today’s agreement because it was unanimous in nature including the support of the consumer advocate and it was not opposed by the City of Joplin. Parties agreed the electric company should receive a rate increase and asked the Commission to approve the agreement with an effective date of June 15, 2011,” said Gunn. 

The rate increase request primarily reflected the addition of the Iatan 2 coal-fired generating plant into The Empire District Electric Company’s energy portfolio.  Empire owns approximately 12 percent, or about 102 megawatts, of the plant that is operated by Kansas City Power & Light Company.  The Iatan 2 unit, along with several other significant system improvements, was included in Empire’s long-term energy plan agreed to by various parties and approved by the
Commission in August 2005.

The agreement calls for an electric rate increase of approximately $18.68 million or approximately half of the approximate $36.8 million sought by the electric company when it filed its rate request on September 28, 2010.  

Residential customers using 1,000 kWh per month, would see an annual increase of approximately $42.24, or about $3.52 per month. The agreement also includes the continuation of Empire’s low-income weatherization program.

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-2011-0004