News Release

For more information contact: Jesse Borjon, 785-271-3269

Thursday, December 22, 2011

KCC Approves Empire Settlement
$1.25 million rate increase to go into effect January 1

Topeka, KS – The Kansas Corporation Commission (KCC) has approved a Stipulation and Agreement reached by the Empire District Electric Company, KCC staff, and the Citizens' Utility Ratepayer Board (CURB), granting Empire a $1.25 million rate increase. The new rates go into effect on January 1. An average regular, residential customer using 1,000 kWh's will see an increase of $5.14 or 6.9% per month on their base rates.

Empire sought the increase for recovery of the remaining investment in new generation facilities as well as the costs to operate the new plants that were incurred between the dates the plants were placed into operation and the date new rates would be effective. This recovery reflects the updates to Iatan 1 AQCS, Plum Point, and Iatan 2.

The Commission regulates public utilities including home telephone, natural gas, electric and water companies, as well as motor carriers, oil and gas pipeline, and oil and gas producers. The Commission's regulatory oversight of public utilities primarily pertains to rates and terms of service. In order to ensure that customers of regulated utilities are provided sufficient and efficient service at just and reasonable rates - utilities may not change their rates without Commission approval.

A complete copy of Empire's application, supporting testimony, and the stipulation and agreement is available at http://estar.kcc.ks.gov/estar/portal/kcc/page/Dockets/portal.aspx.