Empire strikes deal with Missouri plant

Empire will own 12 percent, representing about 100 megawatts, of the proposed 850-megawatt plant, scheduled for completion in 2010. Empire is expected to pay $168 million in the deal.

Fellow co-owners include Kansas City Power & Light, with 54.71 percent; Aquila Inc., with 18 percent; Missouri Joint Municipal Electric Utility Commission, with 11.76 percent; and Kansas Electric Power Cooperative, with 3.53 percent.

Kansas City Power & Light will manage the construction and operations of Iatan 2.

“We are undertaking a large building program consisting of Iatan 2 and the Plum Point Energy Station in Arkansas,” said Brad Beecher, vice president and chief operating officer of electric at Empire, in a news release. “This building program has become necessary to meet the ever-increasing needs of our growing customer base.”

Empire in March agreed to pay about $87 million for ownership of 50 megawatts of the 665-megawatt Plum Plant station near Osceola, Ark. That plant also is expected to open in 2010.

The investor-owned utility serves approximately 162,000 customers in southwest Missouri, southwest Kansas, northeast Oklahoma and northwest Arkansas.

Stock offering

Empire District Electric Co. also recently announced that it plans to sell 3.3 million shares of its common stock in a public offering. Empire plans to grant the underwriters an option to purchase up to 495,000 shares to cover any over-allotments.

UBS Investment Bank is the sole book-running manager. A.G. Edwards & Sons Inc., Jefferies & Co. Inc. and Stifel, Nicolaus & Co. Inc. are the co-managing underwriters.

Shares (NYSE: EDE) closed June 14 at $20.80, compared to a 52-week range of $19.25-$25.01.