Empire Electric poised to take over local Aquila gas service

Empire District Electric Company Manager of Community Relations Rick Hendricks was in Nevada Tuesday meeting with City Manager Craig Hubler and other city officials.

Hendricks said the purpose of the visit was to meet with future customers and see what their interests and concerns are, prior to the company's purchase of Aquila's gas services in the area.

"The purchase hasn't gone through yet," Hendricks said. "We're just waiting for permission from the Missouri Public Service Commission to complete the sale. That should go through in the middle of the year. We're figuring on closing the sale June 1."

The announced sale price for Aquila's gas division was $84 million. The assets will be transferred to The Empire District Gas Company, a newly formed, wholly owned subsidiary of the Empire District Electric Company. Aquila will continue to provide local electric service in its current Vernon County service area.

"There will be some adjustments to the price depending on accounts receivables," Hendricks said.

The sale will affect 44 communities and approximately 48,500 customers in northwest, north central, and west central Missouri.

Hendricks said The Empire District Electric Company was widely recognized as a leader in the industry.

"Empire is recognized in the electric industry as one of the best run electric companies in the country," Hendricks said. "That exact same philosophy of business is the exact same philosophy that will come to the gas company. Empire is a company that cares about its customers."

Empire is also seeking approval from the Commission to adopt the existing Commission-approved Aquila gas tariffs, including the base rates and purchased gas adjustment.

In addition, Empire is asking that new certificates of convenience and necessity be issued authorizing the provision of natural gas service in the involved service areas.

Based in Joplin, The Empire District Electric Company is an investor-owned utility providing electric service to approximately 157,000 customers in southwest Missouri, southeast Kansas, northeast Oklahoma, and northwest Arkansas.