The Empire District Electric Company Files for New Missouri and Oklahoma Electric Rates
October 16 2015 - 4:46PM
Business Wire
The Empire District Electric Company (NYSE:EDE) announced today
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 base rate revenues of
approximately $33.4 million, or about 7.3 percent. If approved by
the MPSC, a residential customer using 1,000 kilowatt hours would
see a monthly increase of about $12.54.
The most significant factor driving the rate request is the cost
associated with the conversion of the Riverton Unit 12 natural gas
combustion turbine to combined cycle operation. The conversion
replaces the production capacity of retiring coal-fired generators
at Riverton and carries a cost of between $165 and $175 million.
Scheduled to be complete in early to mid-2016, the project consists
of a new heat recovery steam generator, steam turbine generator,
auxiliary boiler, cooling tower and other balance of plant
equipment. The conversion was necessary to comply with Mercury Air
Toxics Standards (MATS) mandated by the Environmental Protection
Agency.
Other factors in the case include increased transmission
expense, administrative and maintenance expense and costs incurred
as a result of a mandated solar rebate program. The request also
reflects cost-savings for customers resulting from revised
depreciation rates and lower average interest costs.
In the coming months, the MPSC will perform an audit of Empire’s
operations, hold public hearings, and conduct an evidentiary
hearing. Any new rates granted would take effect at the conclusion
of this process, typically in approximately 11 months, or
late-summer 2016.
In this same filing, the Company is asking to continue the use
of the Fuel Adjustment Clause (FAC). The FAC provides for
semi-annual adjustments to customers’ bills, based on the varying
costs of fuel and purchased power used to serve customers. The
proposed FAC adjustment for the semi-annual period beginning
December 1, 2015, coupled with adjustments reflected on customers’
bills over the previous 12 months, will result in a cumulative
monthly reduction of $3.46 for a customer using 1,000 kilowatt
hours.
In making the announcement, Brad Beecher, president and CEO,
stated, "The Riverton Combined Cycle Unit was the most economic
option to replace the coal units at Riverton and comply with MATS.
This new configuration captures the exhaust heat from the existing
natural gas unit and uses it to power a new steam turbine. This
highly efficient process will help us hold down fuel costs for
customers while lowering emissions and protecting the
environment.”
A corresponding filing will also be made with the Oklahoma
Corporation Commission (OCC) using the Missouri proposed tariffs.
An administrative rule providing rate reciprocity to any electric
company who serves less than ten percent of its total customers
within the State of Oklahoma took effect in August 2015. The rule
is intended to provide cost savings for customers related to rate
case expenditures. As a result, future Commission approved
increases in Missouri rates will be effective for Empire’s Oklahoma
customers subject to approval of the OCC.
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
218,000 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 and Form 10-Q.
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version on businesswire.com: http://www.businesswire.com/news/home/20151016006040/en/
The Empire District Electric CompanyMEDIA COMMUNICATIONSJulie Maus,
417-625-5101Director of Corporate
Communicationsjmaus@empiredistrict.comorINVESTOR RELATIONSDale Harrington,
417-625-5222Director of Investor
Relationsdharrington@empiredistrict.com
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