KANSAS CITY, Mo., Feb. 28, 2006 (PRIMEZONE) -- A settlement of Aquila, Inc.'s (NYSE:ILA) steam rate case for seven industrial customers in St. Joseph, Mo., was approved today by the Missouri Public Service Commission.
The settlement agreement raises the industrial customers' rates by 37.5 percent, or a $4.5 million increase in base rates. The new rates become effective on March 6.
"This is a good settlement both for our industrial customers and the company," said Denny Williams, vice president of regulatory affairs for Aquila. "Even with this increase, the steam rates in St. Joseph will remain among the lowest in the Midwest."
In May 2005, the company originally requested a $5 million, or 44.3 percent, increase in rates.
Increasing industrial customer demand for steam and the higher cost of generation fuels, especially natural gas, were the principal reasons for the rate increase. The settlement also includes sharing the costs of fuel used for steam production. The base fuel cost in the new rates will be set at $3.005 per million BTUs (British Thermal Units). If the fuel costs go above or below that rate, Aquila will pass on 80 percent of the increase or decrease to the industrial customers.
Aquila serves 300,000 electric and 46,000 natural gas customers in Missouri. Based in Kansas City, Mo., Aquila provides electricity and natural gas service to 1.3 million customers in Missouri, Kansas, Colorado, Michigan, Minnesota, Iowa and Nebraska.
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