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Globe/T. Rob Brown Workers use a scissor-jack forklift to deliver construction materials Tuesday at the site of Missouri American Water Co.’s new chemical-feed system at its water-treatment plant in Joplin. The project is part of a $44 million upgrade at the local utility operation.

Area residents feel pinch of utility prices

Christie Barnhart, Missouri American communications manager, said the utility tried to soften the blow by requesting a 25 percent increase for the entire coverage area. The Missouri Public Service Commission instead authorized district-specific increases that raised rates as little as $2 a month in St. Charles or as much as nearly $10.50 a month in Joplin.

That hike is supposed to pay for the first phase of a $44 million project to upgrade the Joplin water-treatment plant. It was the first general rate increase for Missouri American since August 2000.

The most recent increase does not include the construction that now is under way at the Joplin plant. Missouri American will file for another rate increase in the next couple of years to pay for the project’s second phase.

Electric

Empire District Electric Co. raised its rates in January 2007 by nearly 10 percent. It raised the bill of the average residential customer, using 1,000 kilowatt-hours of electricity a month, by $8.20. The utility is requesting another rate increase, of $9.75 a month, associated with the January 2007 ice-storm costs. The PSC conducted a public hearing Tuesday night on that request, and another public hearing is scheduled for 11:30 a.m. today at Missouri Southern State University’s Webster Hall in Joplin.

Empire reported a $400,000 loss during the fourth quarter of 2007, citing another catastrophic ice storm in December 2007 and problems with its Asbury generator. Together, the company said, the two ice storms increased Empire’s 2007 maintenance costs by $5.4 million. The utility has not yet announced how it plans to recoup the costs of the December ice storm.

Empire had reported earnings of $33.2 million for 2007, and it recently amended its covenant to allow the company to pay dividends to its investors even if the company doesn’t have positive retained earnings. At the time Empire requested the amendment, Amy Bass, Empire spokeswoman, said the company didn’t know if it would end up with negative retained earnings, but it wanted to make the change just in case.

Natural gas

Missouri Gas Energy raised its flat residential service rate by $3.60 a month a year ago. That cost is not associated with the price of natural gas, which makes up 70 percent of a customer’s bill. MGE’s monthly service charge is now $24.62. The company’s 2007-08 fluctuating winter gas rate was its lowest winter rate since 2003. Jason Fulp, community affairs representative, said the company will re-evaluate its winter rates again this year.

According to the Missouri Department of Natural Resources, natural-gas futures are up 26 percent since last year. Propane prices are up 38 percent a gallon compared with last year’s figures. A gallon of propane last March was $1.66; this year, it is $2.29.

Melissa Dunson is the business writer for The Joplin Globe.

Gasoline



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