Agreement in Principle Reached in Missouri Electric Rate Case.

Business Editors

JOPLIN, Mo.--(BUSINESS WIRE)

Oct. 21, 2002-The Empire District Electric Company (NYSE:EDE) announced today that it has reached an agreement in principle for the settlement of all issues in the case with the parties involved in the Company's request for new electric rates which is pending before the Missouri Public Service Commission. The parties in agreement include the Commission Staff, the Office of the Public Counsel, and the intervener, Praxair, Inc. Details will be released if, and when, the agreement is reduced to writing and filed with the Commission.

Based in Joplin, Missouri, The Empire District Electric Company (NYSE:EDE) is an investor-owned utility providing electric service to approximately 150,000 customers in southwest Missouri, southeast Kansas, northeast Oklahoma, and northwest Arkansas. The Company also provides monitored security, fiber optic service, wireless Internet service, close-tolerance custom manufacturing and decorative lighting, as well as water service in three incorporated communities in Missouri.

Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements address future plans, objectives, expectations, and events or conditions concerning various matters. Actual results in each case could differ materially from those currently anticipated in such statements, by reason of the factors noted in our filings with the SEC, including the most recent Form 10-K and Form 10-Q.