Boston, MA 09/02/2014 (wallstreetpr) – In order to make alterations to the rates for Missouri electric customers, The Empire District Electric Company (NYSE:EDE) filed its request with Missouri Public Service Commission. The company looks forward to get an annual hike in base rate related revenues worth around $24.3 million and valued at approximately 5.5%. In case MPSC gives its nod to company’s request, there would be an increase on monthly basis of around $9.87 in bills of residential customer making use of 1000 kilowatt hours.
Cost of AQCS Installation Driving Need for Price Hike
What is seen as a most important factor for increasing price is the cost involved in Air Quality Control System installation at Asbury Power Plant. However, there are a few more factors included in this request for price hike and these include maintenance of new contract which covers Riverton 12 gas fired generating unit, increase in operating costs, and increase in property taxes as well as climbing Regional Transmission Organization charges.
Other Factors Involved
Explaining all costs involved, the President and CEO of The Empire District Electric Company (NYSE:EDE), Brad Beecher said that the cost of installing AQCS at Asbury Power Plant costs anywhere from $112 to $130 million.
He further explained that it also carries cost of powder activated carbon injection system, fabric filter as well as scrubber. All these features shall enable plant to suffice and stand up to requirements of Environmental Protection Agency rules governing air quality, entitled as Mercury Air Toxic Standards. Also, there were other factors involved and these included lower debt cost as well as reduced expenses associated with vegetation management.
Fuel Adjustment Clause Use Demanded
The Empire District Electric Company (NYSE:EDE) is also demanding from MPSC, the use of Fuel Adjustment Clause (FAC). This shall enable the company to adjust the bills of its customers, at least two times every year, i.e., on June 1 and December 1.