Empire District Electric Company is seeking a rate increase of more than 10 percent, according to a news release issued today. The news release is printed below:
The Empire District Electric Company (NYSE:EDE) announced today that it has filed a request with the Missouri Public Service Commission (MPSC) for changes in rates for its Missouri electric customers. The Company is seeking an annual increase in revenues of approximately $34.7 million or 10.11 percent. If approved, a residential customer using 1,000 kilowatt hours of electricity would experience a monthly increase of approximately $9.75.
In making the announcement, Bill Gipson, President and CEO, stated, “We serve an area that continues to experience strong customer and demand growth. We are seeking rate relief largely to recover the capital additions necessary to ensure a safe, reliable, and adequate supply of energy for this growing region.”
Totaling more than $135 million, those additions include the new 150-megawatt generating unit at the Riverton Power Plant, the construction of a selective catalytic reduction system at the Asbury Power Plant, and significant reconstruction work during the catastrophic ice storm in January.
With this case, Empire is also requesting to implement a fuel adjustment clause (FAC).
Gipson states, “Continued volatility in fuel and purchased energy costs have compelled us to seek implementation of a fuel adjustment clause. We believe employing an FAC achieves an equitable balance, ensuring financial stability for the Company while providing more timely savings to customers in the event fuel and energy costs decrease.”
After today’s filing with the MPSC, an extensive audit of Empire’s operations, a public hearing, and an evidentiary hearing will be held. The Company anticipates that any new rates approved would not become effective until the fall of 2008.