Empire District gets unanimous approval for rate increase

The Missouri Public Service Commission last week gave unanimous approval to an electric rate increase case filed by Joplin-based Empire District Electric Co. (NYSE: EDE).

With a 5-0 vote, the PSC approved an increase that would add roughly $27.5 million in annual revenues to Empire District's bottom line, according to a news release. The rate increase goes into effect April 1 for the company's approximately 149,500 Missouri customers across Greene and 15 other counties.

“We approved the agreement because it was unanimous in nature, including the support of the consumer advocate,” PSC Chairman Kevin Gunn said in a news release, referring to approval by the Midwest Energy Consumer's Group, as well as the Office of the Public Counsel and the Missouri Department of Natural Resources.

With the rate increase, residential customers using 1,000 kilowatt hours per month would see an increase of roughly $7.74 on their bills.

Under the terms of the agreement, Empire District agreed not to implement any general rate increases prior to Oct. 1, 2014, the release said.

Empire District originally sought an increase of $30.7 million in operating revenues when it filed the case in July 2012. According to the Joplin Tri-State Business Journal, Empire District lowered the amount after meetings with objecting industrial groups.

The revised rate includes an increase in depreciation rates; the continuation of its current fuel adjustment mechanism; and the continuation of tracking mechanisms for expenses related to employee pension, retiree health care, vegetation management and the operation of three power plants, according to JTBJ.[[In-content Ad]]