Tuesday, October 30, 2012

Joplin Tornado cost Empire District Electric $23 million

The May 22, 2011, Joplin Tornado cost locally-based Empire District Electric Company $23 million, according to a report filed Oct. 25 with the Securities and Exchange Commission.

Electric segment revenues for the twelve months ended September 30, 2012, decreased approximately $8.7 million over the 2011 period. Weather impacts and reduced customer counts resulting primarily from the May 2011 tornado decreased revenues an estimated $23.0 million. Unseasonably hot weather experienced during the 2011 twelve-month period was more than offset by the effects of record mild winter weather during the 2012 twelve-month period. Off-system revenues decreased approximately $9.0 million when compared to the 2011 period, however the decrease had little impact on margin as these costs are passed through our fuel adjustment mechanisms. Customer rate increases added an estimated $20.3 million during the 2012 period compared to 2011, primarily from the completed rate proceedings in each of or our jurisdictions. This increase, along with the $3.0 million change in the Company’s estimate for unbilled revenue mentioned above, contributed to margin during the 2012 period, more than offsetting the decreased revenues from weather and customer counts.

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