The Empire District Electric Company Files for New Missouri Electric Rates.

JOPLIN, Mo. -- The Empire District Electric Company (NYSE:EDE) announced today that it has filed a request with the Missouri Public Service Commission (MPSC) for changes in rates for its Missouri electric customers. The Company is seeking an annual increase in revenues of approximately $29.5 million or 9.63 percent. If approved, a residential customer using 1,000 kilowatt hours of electricity would experience a monthly increase of approximately $11.11.

With this case, Empire is also asking to initiate an energy cost recovery mechanism (ECR), which will allow the Company to recover actual fuel and energy costs. Any increase or decrease in fuel or energy costs from the test year level will be recovered through a monthly adjustment to the customer's bill. Under the current method of recovery, base rates include the historical (not actual) cost of fuel, and the customer pays this rate until another rate case is completed. With the ECR, customers would pay only the actual cost of fuel and energy. They would benefit immediately when prices for fuel drop.

In making the announcement, Bill Gipson, President and CEO, stated: "We are seeking these changes in our Missouri rates primarily to allow us to recover our actual fuel and purchased power costs. We have encountered extremely volatile and escalating natural gas prices since our last rate case. The cost of energy we purchase for our customers has also been higher due to coal delivery issues in our region."

After today's filing with the MPSC, an extensive audit of Empire's operations, a public hearing, and an evidentiary hearing will be held. Any new rates approved as a result of this request are not expected to be effective until late 2006 or early 2007.

Based in Joplin, Missouri, The Empire District Electric Company (NYSE:EDE) is an investor-owned utility providing electric service to approximately 157,000 customers in southwest Missouri, southeast Kansas, northeast Oklahoma, and northwest Arkansas. The Company also provides fiber optic and Internet services, customer information software services, and has an investment in close-tolerance, custom manufacturing. Empire provides 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.