Arkansas PSC upholds ruling on merger

The Arkansas Public Service Commission Dec. 12 issued an order to Joplin-based The Empire District Electric Company affirming a previous order issued by the commission's administrative law judge pertaining to Empire's proposed merger with Kansas City-based UtiliCorp United Inc., according to a Dec. 11 Empire press release.

The judge ruled that Empire and UtiliCorp's proposed regulatory plan should not be approved. In addition, the judge stated that he was unable to separate the application for approval of the merger and the plan, and he could therefore not conclude that the merger was consistent with the public interest, which is the standard for approval in Arkansas.

The commission's order initiates a 30-day period in which Empire and UtiliCorp may file a petition for rehearing. The commission must rule on any such petition rehearing within 30 days. Empire and UtiliCorp jointly plan to file a petition for rehearing.

In a Dec. 13 press release, UtiliCorp announced it plans an initial public offering of a portion of its wholly owned Aquila Energy Corporation subsidiary.

UtiliCorp also plans to spin off to UtiliCorp stockholders the remaining shares of Aquila in 2001 in a tax-free distribution.