Empire District Electric estimates storm repair cost at $20 to $30 million

In a news release filed last week with the SEC, Joplin-based Empire District Electic Company suspended its quarterly dividend and estimated storm repair costs at $20 million to $30 million:

The Empire District Electric Company (NYSE:EDE) announced today that the Company’s Board of Directors will be suspending the quarterly dividend for the remainder of 2011. This action was forced due to the impact of the devastating tornado that hit the area on May 22. Based on current conditions and knowledge, the Board of Directors currently expects that the dividend will be re-established at an approximate level of $0.25 per quarter after a two quarter suspension. The Board believes this dividend level will allow the Company to grow the dividend as the Joplin area recovers.


The Company estimates that approximately 8,000 to 10,000 residential, commercial, and industrial customers have damaged or destroyed structures that will not be ready for service in the foreseeable future. This loss of homes and businesses will result in a significant loss of revenue estimated to be approximately 10 to 15 percent of load. In addition, Empire currently estimates the cost of storm repairs to be $20 to $30 million and is evaluating facilities that may be covered by insurance.

The suspension of the dividend payments will not affect the dividend declared on April 28, 2011, to be paid on June 15, 2011 to shareholders of record on June 1, 2011.

“We understand and know the suspension of the dividend will cause a hardship for many of our shareholders and are sorry for that. This catastrophic event has impacted many lives in our community. We are focused on getting our customers back on service as quickly as we safely can. We are dedicated to helping our neighbors and community rebuild and know that reliable electric service is a vital part of that process,” said Bill Gipson, president and CEO.

Gipson continued, “We are overwhelmed with the outpouring of assistance to our Company and to our employees. We thank everyone who has been so thoughtful and generous.”