On May 22, 2011, the Joplin, Missouri area suffered significant damage from a powerful EF-5 tornado. As a result, approximately 4,200 residential, commercial and industrial customers remain unable to return to service due to damaged or destroyed structures. Storm restoration costs are estimated at $20 million to $30 million, of which $18 million has been incurred to date. The majority of these costs have been capitalized. The immediate loss of revenue associated with the tornado was offset by rate increases that became effective during 2010 and early 2011, increased usage due to storm recovery efforts and near-record hot weather during the month of June. The Company however expects a continuing loss of electric load and corresponding revenues over the next several months as customers rebuild.
In response to the expected loss of electric revenues, our current level of retained earnings and other relevant factors, the Company announced shortly after the tornado the suspension of the quarterly dividend for the third and fourth quarters of 2011. Based on current conditions and knowledge, at today’s meeting the Company’s Board of Directors reaffirmed their expectation to re-establish the dividend at an approximate level of $0.25 per quarter after this two quarter suspension.
Friday, July 29, 2011
Empire District Electric outlines losses from Joplin Tornado
In a news release issued Thursday, Joplin-based Empire District Electric Company explained the effects the tornado has has on the business: