Empire seeks electric rate increase

The utility said the increase would result in a monthly increase of approximately $9.75 for a residential customer using 1,000 kilowatt hours of electricity.

Empire is also asking the PSC to implement a fuel adjustment clause.

Bill Gipson, Empire’s president and CEO, said in a news release that the company made the request to recover costs of reconstruction work after January’s ice storm and more than $135 million in capital improvements – such as a new 150-megawatt generating unit at the Riverton (Kan.) Power Plant and the construction of a selective catalytic reduction system at the Asbury Power Plant.

In explaining the fuel adjustment clause request, Gipson said in the release, “Continued volatility in fuel and purchased energy costs have compelled us to seek implementation of a (fuel adjustment clause). We believe employing a (fuel adjustment clause) achieves an equitable balance, ensuring financial stability for the company while providing more timely savings to customers in the event fuel and energy cost decrease.”

The PSC will study Empire’s finances and conduct hearings before deciding whether to approve the request. Empire said it anticipates that any new rates would not become effective until fall 2008.

Shares of Empire (NYSE: EDE) Monday afternoon were trading at $23.07, or 48 cents higher for the day. The 52-week range for Empire shares is $21.09 to $26.13.