The Empire District Electric Company Announces Stipulation and Agreement in Missouri Rate Case
June 21 2016 - 01:05PM
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. The agreement, if approved by the
MPSC, allows an annual increase in base revenues of about $20.4
million or 4.46 percent. A residential customer using 1,000
kilowatt-hours per month will see an increase of approximately
$7.60 per month. This includes an increase in the monthly
residential customer charge of $0.48. If approved, new rates are
expected to become effective in mid-September.
The primary driver for the case was the conversion of the
Company’s Riverton Unit 12 natural gas combustion turbine to
combined cycle operation. The conversion replaced the production
capacity lost with the recent retirement of two coal-fired
generating units at Riverton. The conversion will result in higher
generating efficiency and lower emissions. The upgrade was
developed as part of the Company’s least-cost plan to comply with
Mercury Air Toxics Standards (MATS) mandated by the Environmental
Protection Agency. The project was placed into service on May 1,
2016 at a total project cost of approximately $168 million
excluding AFUDC.
The agreement filed today calls for the Fuel Adjustment Charge
(FAC) to remain in effect. The agreed upon level of fuel and
purchased power (FPP) cost included in base rates is $24.15 per
megawatt-hour, compared to $26.84 per megawatt-hour in the
Company’s current rates. This reflects current FPP costs which are
lower than those built into current rates.
In addition, a tracking mechanism for non-labor operating and
maintenance expenses for the Riverton 12 Combined Cycle Unit will
be established and tracking of pension and other post-employment
benefit expenses will continue.
Annual funding for the Low Income Weatherization Program will
increase from $225,000 to $250,000. The Company’s current level of
funding for energy efficiency programs will continue through the
end of 2016. A new portfolio of programs will be examined during
the next several months in preparation for an expected launch in
early 2017.
The agreement also provides for the cost of state mandated
incentives to customers for private solar installations to be
included in rates and amortized over a ten year period.
According to Brad Beecher, President and CEO, “We are pleased
all parties were able to come to a unanimous agreement in this
case. We are proud of the work completed at our Riverton Power
Plant which will ensure we are able to continue to deliver safe,
reliable and environmentally responsible energy for our customers
well into the future.” Beecher added, “The base revenues
established by this agreement are lower than our request primarily
due to continued lower fuel and purchased power costs. As a result
of this stipulation, our 2016 earnings guidance of $1.26 to $1.44
per share, which was updated February 26, 2016, remains
unchanged.”
Based in Joplin, Missouri, The Empire District Electric Company
(NYSE:EDE) is an investor-owned 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 also provides fiber optic services. For more information
regarding Empire, visit www.empiredistrict.com.
The updated earnings guidance range assumes 30-year average
weather, overall system energy growth of less than 1%, increased
operating costs driven by a partial year of service from the
Riverton 12 combined cycle conversion, an October 1, 2016 effective
date for new Missouri electric customer rates as a result of the
aforementioned agreement, and the expected incurrence of certain
transaction costs associated with the proposed Agreement and Plan
of Merger with Liberty Utilities, a subsidiary of Algonquin Power
& Utilities Corp. Other factors that may impact earnings
include variations in customer growth and usage projections and
unanticipated or unplanned events that may impact operating and
maintenance costs. The effects of assumptions and other factors
evaluated for the purpose of providing guidance are not necessarily
independent of one another, and the combination of effects can
cause individual impacts smaller or larger than the indicated
guidance range.
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, earnings, 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 10-Q.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160621006316/en/
The Empire District Electric CompanyMEDIA COMMUNICATIONSJulie Maus,
417-625-5101Director of Corporate
Communicationsjmaus@empiredistrict.comorINVESTOR RELATIONSDale Harrington,
417-625-4222Secretary & Director of Investor
Relationsdharrington@empiredistrict.com
Empire Electric (NYSE:EDE)
Historical Stock Chart
From Feb 2024 to Mar 2024
Empire Electric (NYSE:EDE)
Historical Stock Chart
From Mar 2023 to Mar 2024