20 Percent Lower PGA for South System Announced By Empire District Gas Company
The Empire District Gas Company, a wholly owned subsidiary of The Empire District Electric Company (NYSE:EDE), announced today that the Missouri Public Service Commission has approved its Winter 2007-08 Purchased Gas Adjustment (PGA) for the south system. Empire’s south system includes the communities of Clinton, Deerfield, Leeton, Marshall, Nevada, Platte City, Henrietta, Lexington, Richmond, Tracy, Weston, Sedalia, Dresden, Otterville, and Smithton.
The new PGA becomes effective November 3, 2007, and represents approximately a 20 percent decrease 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.
The PGA 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 once again encourage customers to use natural gas efficiently, to take advantage of Empire’s 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.”
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.