Empire announces 18.6% increase in 2005 revenues

On Feb. 1, the Joplin-based utility filed a request with the Missouri Public Service Commission a 9.6 percent rate increase that would grow annual revenues by $29.5 million. If approved, monthly rates for average residential customers would increase about $11.11 later this year.

As part of the request, Empire is asking to initiate an energy cost recovery mechanism, where any change in fuel or energy costs from the test year level would be recovered through a monthly adjustment to customer bills.

The utility on Feb. 2 reported 2005 revenues of $386.2 million, an 18.6 percent jump from $325.5 million last year.

Earnings, at 92 cents per share for the year and 5 cents for the quarter, were hurt by higher total fuel and purchased power costs, which increased 41.1 percent, or $48.2 million, in 2005.

Net income for the year was $23.8 million, compared to $21.8 million in 2004. For the fourth quarter, net income fell to $1.3 million from $2 million in fourth-quarter 2004.

Increased electric rates in Missouri and Arkansas had the most significant impact on revenues, contributing an estimated $31.4 million. Electric revenue also increased by an estimated $10.5 million from the effect of more favorable weather compared to 2004. Customer growth of 1.9 percent in 2005 increased revenues by about $8.3 million.

Empire also declared a quarterly dividend of 32 cents per share, payable March 15 to shareholders of record March 1.

The investor-owned utility provides electric service to about 157,000 customers in southwest Missouri, southeast Kansas, northeast Oklahoma and northwest Arkansas.