In Missouri, a joint settlement agreement was filed on November 15, 2011, relating to the Company's request for an Accounting Authority Order associated with the May 22 tornado. If approved by the Missouri Public Service Commission, the agreement will allow Empire to defer actual incremental operating and maintenance expenses associated with the repair, restoration, and rebuilding activities resulting from the tornado. In addition, depreciation related to the capital expenditures will be deferred and a carrying charge will be accrued. In the event that an electric rate request is filed in Missouri by June 1, 2013, a ten-year amortization of the deferral will begin. The settlement does not include deferral of the fixed cost component associated with the reduction in customers served by the Company.
In Kansas, a joint settlement agreement was filed on November 10, 2011, relating to the Company's abbreviated rate case filed on June 17, 2011, requesting recovery of the remaining expenditures for Iatan 1, Iatan 2, and Plum Point generating facilities. If approved by the Kansas Corporation Commission, the settlement will result in an increase in annual revenues of $1.25 million, or approximately 5.2 percent. This will result in a monthly increase of approximately $5.00, for a customer using 1,000 kilowatt hours of electricity.
In making the announcement, Brad Beecher, president and CEO, stated, "If approved by the Kansas Corporation Commission, the new rates will complete the recovery of costs, attributable to Kansas customers, for the largest construction cycle in Empire's history. The additions undertaken over the last several years help to ensure we can continue to provide safe, reliable energy for our customers from a balanced mix of resources."
Beecher adds, "The agreement on the Accounting Authority Order request, if approved by the Missouri Public Service Commission, will provide the opportunity for Empire to moderate the impact to customers of the costs incurred as a result of the May 22 tornado by spreading the recovery over a ten-year period in the future."
Based in Joplin, Missouri, The Empire District Electric Company (NYSE: EDE - News) is an investor-owned utility providing electric, natural gas (through its wholly owned subsidiary The Empire District Gas Company), and water service, with approximately 211,000 customers in Missouri, Kansas, Oklahoma, and Arkansas. A subsidiary of the Company also provides fiber optic services. For more information regarding Empire, visit www.empiredistrict.com.
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements address future plans, objectives, expectations, and events or conditions concerning various matters. Actual results in each case could differ materially from those currently anticipated in such statements, by reason of the factors noted in our filings with the SEC, including the most recent Form 10-K and 10-Q.