The Empire District Electric Company Announces New Missouri Electric Rates.

JOPLIN, Mo. -- The Empire District Electric Company (NYSE:EDE) today announced that the Missouri Public Service Commission (MPSC) has issued an order in the rate case filed by the Company on February 1, 2006.

As part of the order, which provides for rates to go into effect January 1, 2007, the MPSC approved a return on equity of 10.9 percent for Empire, eliminated the Interim Energy Charge that was put into place in March 2005, and included fuel costs in the base rates. They did not approve a fuel adjustment mechanism for Empire.

The order issued by the Commission contains two components. The first component provides an addition to base rates, which the Commission has reported is approximately $20 million. The second component is an amortization that provides Empire additional cash through rates, which allows Empire to begin recovery of costs associated with its current generation expansion. This expansion, which is a part of the Company's long-range plan to ensure future reliability, includes the facilities at the Riverton Power Plant and Iatan 2 Power Plant, as well as environmental improvements at the Asbury Power Plant and at Iatan 1.

Because of the complexity of the two components in the case, the aggregate impact of the new rates to customers and to Empire was not immediately available. Empire's regulatory staff is working with the staff of the MPSC to develop rates that encompass all aspects of the order. The impact to customer bills will be known next week.

In making the announcement, Bill Gipson, president and CEO, stated, "The recovery of our costs is paramount in our ability to provide reliable electric power service to our consumers. Our electric customer base continues to expand. We are investing hundreds of millions of dollars to meet the needs of our customers, and we need a firm financial profile to do so."

Based in Joplin, Missouri, The Empire District Electric Company (NYSE:EDE) is an investor-owned, regulated utility providing electricity, natural gas (through its wholly owned subsidiary The Empire District Gas Company) and water service, with approximately 215,000 customers in Missouri, Kansas, Oklahoma and Arkansas. The Company also provides fiber optic, internet, and customer information software services.

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.