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Empire District Gas Company Announces 20 Percent Lower Purchased Gas Adjustment Filing for South System

Posted on: Wednesday, 24 October 2007, 18:00 CDT

The Empire District Gas Company, a wholly owned subsidiary of The Empire District Electric Company (NYSE:EDE), announced today that it has filed its Winter 2007-08 Purchased Gas Adjustment (PGA) with the Missouri Public Service Commission. Empire District has requested the new PGA to be effective November 3, 2007.

For the south system, which includes the communities of Clinton, Deerfield, Leeton, Marshall, Nevada, Platte City, Henrietta, Lexington, Richmond, Tracy, Weston, Sedalia, Dresden, Otterville, and Smithton, the filing reflects a decrease in the PGA of about 20 percent compared to the current PGA that has been in place since November 2006. The decrease is the result of Empire's effort to diversify suppliers and overall lower wholesale natural gas prices.

For a residential customer in the south system using 600 Ccf (Ccf=100 cubic feet of gas) during the winter heating season of November through March, this will be a decrease of about $117.00.

The Purchased Gas Adjustment is the cost Empire District Gas Company pays to purchase natural gas on the open market, plus the cost of transportation and storage services necessary to move the gas to Empire District's service territory where it is delivered to customers. The PGA also reflects any under-collection or over-collection of actual costs incurred in the previous period. Empire District does not earn a profit from the price of gas, only on its delivery. The PGA, or cost of gas, typically accounts for about two-thirds to three-fourths of a winter bill.

In making the announcement, Ron Gatz, vice president and chief operating officer -- gas, stated, "We are pleased to be able to pass these lower prices on to our customers. However, the price of natural gas remains volatile and the potential for price spikes due to extreme weather conditions and production disruptions still exist."

Gatz continued, "We encourage customers to conserve energy whenever possible, to take advantage of our residential financing plan for the installation of high efficiency heating equipment and appliances, and to sign up for the Average Payment Plan that smoothes out the highs and lows of utility bills throughout the year. Information regarding these initiatives may be found on our Web site at www.empiredistrict.com."

Other steps customers may take to manage their energy bills include:

lowering the thermostat at night and when away from home;

installing additional insulation;

adding caulk and weather-stripping to seal doors and windows;

changing furnace filters on a regular monthly basis; and

having a professional check and service the furnace to ensure it is in good working order.

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 also provides fiber optic services.

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.

Source: Business Wire

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