Empire District Electric to raise its rates by 8.4 percent

The Missouri Public Service Com-mission earlier this month granted Jop-lin-based Empire District Electric Com-pany new rates for its Missouri electric customers.

According to an Empire District news release, the company will increase its permanent rates by 8.4 percent, which will provide Empire with an additional $17.1 million in revenues.

Empire also will collect an interim energy charge of just more than half a cent per kilowatt hour for a two-year period. The interim energy charge is subject to refund, the release stated. The new rates are effective Oct. 2.

Recovery of construction expenses for the State Line Combined Cycle generating unit and the increased cost of the natural gas used to fuel the plant are major components of the rate increase.

But because prices for natural gases and other fuels have been fairly volatile in recent years, setting a firm price for fuel was difficult. For that reason, Em-pire agreed with the commission to make a portion of the increase refundable.

The interim energy charge, which is subject to refund, will be listed on customers' bills as a separate item for two years.

When the two-year period ends in October 2003, the Missouri Public Service Commission staff and the Office of Public Counsel will audit Empire's fuel and purchased power expenses to determine whether refunds are due and how much they will be for each customer.

The release further stated that if a refund is deemed necessary, customers will receive interest equal to the prime rate reported in the Wall Street Journal Oct. 1, 2003. Refunds will be listed as one-time credits on customer bills, or checks will be sent to former customers no longer using Empire services.

The Empire District Electric Company serves approximately 150,000 customers in southwest Missouri, southeast Kansas, northeast Oklahoma and northwest Arkansas.