Empire District seeks gas rate increase, energy programs

Empire District Electric Co. is seeking to raise its natural gas rates and add three energy-efficiency programs for its customers.

The Joplin-based utility has filed a request with the Missouri Public Service Commission to increase its annual revenues by $2.9 million, or 4.9 percent, according to a news release. The proposed rate increase for the average residential customer is about $4.83 per month.

The additional revenue would recover expenses from operating and maintaining Empire's 1,200-mile gas distribution system, according to the release.

"We have invested more than $6.3 million in new gas infrastructure since we acquired the natural gas operations in June of 2006 and adopted the rate structure that was in place," said Ron Gatz, vice president and chief operating officer of Empire District's gas division, in a news release. "The last time base rates for the gas system were increased was in the summer of 2004."

The proposed rate increase is not related to the cost of purchasing natural gas on the open market, which accounts for about 70 percent of an average gas bill, the release said.

With the rate case filing, the utility also is seeking to add three energy-efficiency programs: an EnergyStar rebate program for residential water heaters and space-heating appliances; an EnergyStar home performance program; and a large commercial audit and rebate program.

The commission may take up to 11 months to make a ruling on the case. New rates may not go into effect until late spring 2010.

Empire District (NYSE: EDE) provides electric, natural gas and water service and has about 215,000 customers in Missouri, Kansas, Oklahoma and Arkansas. Company shares have traded at a 52-week range of $11.92 to $23.48.[[In-content Ad]]