JOPLIN, Mo.--(BUSINESS WIRE)--The Empire District Electric Company (NYSE:EDE) announced today that it has filed a Unanimous Stipulation and Agreement with the Missouri Public Service Commission (MPSC) for changes in rates for its Missouri electric customers. This agreement, if approved by the MPSC, allows an annual increase in base revenues of about $27.5 million. With the reduction in Fuel Adjustment Clause revenue of about $8.6 million received during the audit period, the net increase to customers is about $18.9 million or approximately 4.7 percent. For a residential customer using 1,000 kilowatt hours per month, the net impact will be an increase of about $5.60, when compared to the audit period. The rates will take effect on April 1, 2013.
The agreement includes an increase in depreciation rates; the continuation of the current fuel adjustment mechanism; and the continuation of tracking mechanisms for expenses related to employee pension, retiree health care, vegetation management, and Iatan 2, Iatan Common, and Plum Point operating and maintenance costs. In addition, the agreement includes a write off of approximately $3 million for various items including the prudency of Iatan 2. Empire agreed to not implement a Missouri general rate increase prior to October 1, 2014.
In making the announcement regarding the rate change, Brad Beecher, president and CEO, stated, "We believe the agreement provides for a balanced result that will allow us to continue to provide our customers with safe, reliable service and our shareholders a fair return on their investment."
Based in Joplin, Missouri, The Empire District Electric Company (NYSE: EDE) is an investor-owned, regulated utility providing electric, natural gas (through its wholly owned subsidiary The Empire District Gas Company), and water service, with approximately 216,000 customers in Missouri, Kansas, Oklahoma, and Arkansas. A subsidiary of the company provides fiber optic services. For more information regarding Empire, visit www.empiredistrict.com.
Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements address future plans, objectives, expectations, and events or conditions concerning various matters. Actual results in each case could differ materially from those currently anticipated in such statements, by reason of the factors noted in our filings with the SEC, including the most recent Form 10-K.