KANSAS CITY, Mo., May 31, 2007 (PRIME NEWSWIRE) -- Aquila, Inc. (NYSE:ILA) has received an order from the Missouri Public Service Commission that will raise the monthly electric rates for its Missouri electric customers.
The order affects Aquila customers in the company's Missouri Public Service region (MPS) and customers formerly served by St. Joseph Light & Power (L&P). For the typical customer in the MPS area using 1,000 kilowatts (kwh) a month, their bill will increase approximately $9.73. In the L&P area the monthly increase will be approximately $8.79. These new rates will become effective on May 31.
Aquila had requested the rate increase to pay for new capacity to serve increased demand, ongoing investments in the company's distribution system, rising operating maintenance costs, as well as higher fuel (both natural gas and coal) and purchased power costs. Over the past 25 years, Aquila's typical residential customers' use of electricity has increased 42 percent, and the company customer base has risen 58 percent.
The commission's order also implemented a fuel adjustment law passed by the state legislature in 2005. Under the order, Aquila will be able to recover 95% of its fuel costs not already reflected in rates. However, any adjustment for fuel costs will not be included on customers' bills for at least eight months while actual data is being collected and evaluated. During this time an FAC (Fuel Adjustment Clause) line will appear on bills, but will show a zero charge.
Aquila serves 300,000 electric customers in Missouri. Based in Kansas City, Mo. Aquila also provides electricity and natural gas service to approximately 600,000 customers in Colorado, Iowa, Kansas and Nebraska.
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