The Empire District Gas Company Seeks New Natural Gas Rates

JOPLIN, Mo.--(BUSINESS WIRE)--The Empire District Gas Company (EDG), a wholly owned subsidiary of The Empire District Electric Company (NYSE: EDE), announced today that it has filed a request with the Missouri Public Service Commission (MPSC) to increase annual revenues by approximately $2.9 million, or about 4.9 percent. The proposed increase for residential customers is approximately $4.83 per month.

The proposed rate change will help Empire recover expenses associated with operating and maintaining its 1,200-mile gas distribution system. The proposed increase is not related to the Purchased Gas Adjustment (PGA), the cost the Company pays to purchase natural gas on the open market. The PGA accounts for about 70 percent of an average gas bill for a residential customer. Empire makes no profit on the PGA, which was reduced in mid-May this year and in November 2008.

"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 - gas. “The last time base rates for the gas system were increased was in the summer of 2004.”

Gatz continued, “Empire has several programs in place to assist customers with their energy needs including,

• a low-income weatherization program that is administered by local Community Action Agencies,
• the Average Payment Plan that calculates a customer’s expected annual service charges and divides it into equal payments making budgeting energy expenses easier,

• Project Help, an assistance program created to meet the emergency, energy-related expenses of elderly and/or disabled residents in Empire’s gas service area,
• a residential purchase plan that provides loans for gas heating equipment and appliances, plus
• a Web site, www.empiredistrict.com, where details of these programs and suggestions for improving your home’s efficiency may be found.”

With this rate case filing, Empire is seeking to add three additional energy efficiency programs to assist customers. These include,

• an ENERGY STAR® rebate program for residential water heaters and space heating appliances,
• an ENERGY STAR home performance program, and
• a large commercial audit and rebate program.

The MPSC may take up to 11 months to issue a ruling on the proposal. As a result, the new rates may not go into effect until late spring 2010.

Based in Joplin, Missouri, The Empire District Electric Company (NYSE: EDE) is an investor-owned, regulated utility providing electricity, natural gas (through its wholly owned subsidiary The Empire District Gas Company), and water service, with approximately 215,000 customers in Missouri, Kansas, Oklahoma, and Arkansas. A subsidiary of the company 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 Form 10-Q.

The Empire District Gas Company
MEDIA COMMUNICATIONS
Emily Stanley, 417-625-5180
Corporate Communications Coordinator
estanley@empiredistrict.com
or
INVESTOR RELATIONS
Jan Watson, 417-625-5108
Secretary – Treasurer
jwatson@empiredistrict.com