The Empire District Electric Company Files for New Kansas Electric Rates
September 16 2016 - 5:37PM
Business Wire
The Empire District Electric Company (NYSE:EDE) announced today
it has filed a request with the Kansas Corporation Commission (KCC)
for changes in rates for its Kansas customers. The Company is
seeking an annual increase in base rate revenues of approximately
$6.4 million, or about 25.7 percent. If approved by the KCC, a
residential customer using 1,000 kilowatt hours would see a monthly
increase of about $31.85. The Environmental Recovery charge
currently collected for Kansas customers will be discontinued at
the time the new rates are effective.
In the case, the Company has requested continuation of the
Energy Cost Adjustment (ECA), which is adjusted monthly to reflect
the actual cost of fuel and purchased power used to serve
customers. The request also seeks to include Southwest Power Pool
(SPP) and Midwest System Operator transmission costs in the ECA.
Through its participation in the SPP Integrated Marketplace,
established in March 2014, and Empire’s fuel procurement strategy,
the Company has realized fuel and purchased power cost savings of
approximately $1.5 million since 2010, which has been passed on to
Kansas customers through the ECA.
Empire’s last general rate increase in Kansas took effect in
January 2012, using an abbreviated rate case procedure which was
based upon 2009 operational expense levels. Primary drivers for
this case include the $112 million Air Quality Control System
(AQCS) at the Asbury Power Plant, the $168 million combined cycle
generating unit at the Riverton Power Plant, upgrades to financial,
asset and work management software systems, reconstruction related
to the 2014 Baxter Springs tornado, and other reliability and
system improvements to serve customers.
In the coming months, the KCC will perform an extensive 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 eight
months.
In making the announcement, Brad Beecher, President and CEO,
stated, "Since 2011, we have made approximately $670 million in
capital improvements to serve customers which are not yet included
in base rates. The largest of these investments were the Asbury
AQCS and the Riverton Combined Cycle Unit. These projects were the
most economic options for Empire to comply with environmental
mandates related to SO2, mercury and particulate matter. They also
ensure the plants remain in operation, providing locally sourced
energy, jobs and other economic benefits to the region while
lowering emissions and protecting the environment.”
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/20160916005852/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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