Empire District Gas Company announces 10.5 percent lower PGA

JOPLIN, MO -- Oct. 28, 2008 -- The Empire District Gas Company, a wholly owned subsidiary of The Empire District Electric Company, has filed its Winter 2008-'09 Purchased Gas Adjustment with the Missouri Public Service Commission. Empire District has requested the new PGA to be effective Nov. 12, 2008.

For the south system, which includes the communities of Deerfield, Nevada, Leeton, Marshall, Platte City, Henrietta, Lexington, Richmond, Tracy, Weston, Sedalia, Dresden, Clinton, Otterville, and Smithton, the filing reflects a decrease in the PGA of about 10.5 percent compared to the current PGA that has been in place since June 6, 2008. The decrease is the result of 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 $69.

The Purchased Gas Adjustment 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 are pleased to be able to pass these lower prices on to our customers. However, the price of natural gas remains volatile and the potential for price spikes due to extreme weather conditions and production disruptions still exist." Gatz continued, "We encourage customers to conserve energy whenever possible, to take advantage of our residential financing plan for the installation of high efficiency heating equipment and appliances, and to sign up for the Average Payment Plan that smooths out the highs and lows of utility bills throughout the year. For customers who meet income guidelines, assistance with home weatherization may be available through our affiliation with the Community Action Partner-ships.

Information regarding these initiatives may be found at www.empiredistrict.com.

Additional energy efficiency information is available at www.beenergyefficient.org.

Other steps customers may take to manage their energy bills include: lowering the thermostat at night and when away from home; installing additional insulation; adding caulk and weather-stripping to seal doors and windows; changing furnace filters on a regular monthly basis; and having a professional check and service the furnace to ensure it is in good working order.