By Debby Woodin

dwoodin@joplinglobe.com

A proposed rate increase of nearly 20 percent for Missouri customers of Empire District Electric Co. comes at a bad time because of stagnant wages and retirement pay, and high unemployment, area residents testified Monday night at a public hearing.

The area’s electric utility has embarked on the largest expansion project in its 100-year history, and that comes with what customers Monday night described as a hefty price tag. The proposed increase may seem particularly expensive because Empire customers had benefited for 20 years from a relatively low-cost contract with a power supplier that could not be renewed after this year.

To replace that purchased power and meet increasing demands, Empire five years ago received approval from the Missouri Public Service Commission to become a joint owner in and purchase power from the coal-fired Plum Point generating plant at Osceola, Ark. That is costing $88 million. The company also has invested $60 million in environmental renovations at its Iatan Unit 1 plant near Kansas City.

Empire has filed a rate increase request with the state regulator, the PSC, that would increase revenue by $68.17 million for the projects. That would raise electric rates 19.6 percent, the company said, or about $19.21 per month on 1,000 kilowatt-hours of electricity.

Empire received approval to embark on the plan five years ago from the PSC as the lowest cost alternative to replace purchased power it had for 20 years that will not be available after this year.

And, the work and corresponding cost increases aren’t over. Empire will file another rate case associated with its shared construction of another generating plant, Iatan 2, near Kansas City, hearing participants were told Monday night.

Objections

The bulk of concerns expressed Monday night were from retirees whose Social Security benefits are frozen and who do not expect to receive an increase for two, or perhaps even three, years.

Maurice Filson said Empire made a profit of $41 million last year and is turning to customers like him to keep up that level of profit. “Has Empire given any action or thoughts of its top executives having a pay adjustment?” Filson asked, receiving audience applause.

“I know a business has to make a profit, but $40-some million when people have to worry about whether to buy groceries or pay their electric” is a burden, said Howard Blackburn, of Joplin. He suggested that the company reactivate hydroelectric power and use water as its power source to generate electricity.

Not all of the customers are retirees living on fixed wages.

Roger Ball, of Joplin, said he can afford the increase, but he thinks Empire is asking that the investment be repaid too quickly. He suggested that the company stretch it over a longer period in order to reduce the impact on rates.

“My main concern with Empire, though, is they have not taken care of customer service,” he said. He said he has experienced difficulty in getting the company to trim or take out trees that interfere with power lines. He said one tree on his block has been marked three times for trimming or removal, but the work was never done.

A number of those who spoke said state regulators should be more stringent with utility companies.

“I’ve never heard of them being turned down” on a rate hike, said David Gilbreth, of Joplin. “Why can’t they pay their bills and not expect remuneration like other companies?”

“Every time Empire puts in a rate request, they get it,” said Richard Bourne, of Carl Junction, who also complained that the company is not keeping trees along power lines trimmed.

Gary Powers, of Joplin, said he meant no disrespect to the PSC, but that it needs “to get a dictionary and look up the word ‘no.’”

Joplin’s mayor, Gary Shaw, said Empire is a good corporation that cooperates with the city on projects, but that he also must represent the residents of the city who face tough economic times. “Most of these people haven’t had a raise themselves in four of five years,” he said on behalf of many of Joplin’s workers.

The city has officially intervened in the case and will have attorneys present for the company’s hearing before the PSC in early May.

In all, 17 people testified during a two-hour session Monday night in Corley Auditorium at Missouri Southern State University in Joplin.

Empire response

Emily Stanley, spokeswoman for the company, said the company increased its spending on tree cutting by $6 million in the past year. Customers who have concerns about a tree may call 800-206-2300 and talk to the company’s vegetation management division, she said.

She said the company worked with the PSC to create a power purchasing program, and that the PSC had previously signed off on proceeding with it, “saying it was the best fit for the needs of our customers and our shareholders.”

Empire will work with customers to try to identify ways to help them with the cost, Stanley said.

“We understand this is something they don’t look forward to, but we do offer programs for our customers to help them with usage, offer payment plans and energy rebates, and work with local agencies such as the Economic Security Corporation for weatherization and other programs to ease our customers’ burdens,” she said.





Second hearing



A second public hearing conducted by the PSC will begin with a question-and-answer session at 11:30 a.m. today, followed by the formal hearing at noon. That hearing, too, will take place in Corley Auditorium at Webster Hall at MSSU.