ST. JOSEPH, Mo., June 29, 2006 (PRIMEZONE) -- Ivan Vancas, vice president of Missouri electric operations for Aquila, Inc., met today with area community and legislative leaders to discuss the company's plan to file for a rate increase on Monday, July 3. Vancas indicated the main driver in this case is the cost of fuel needed for producing electricity to serve the increasing customer demand and the growing communities.
"We feel it's important to meet with community leaders and discuss the components of this case. It is critical there is an understanding of why energy costs are rising and what Aquila is doing to minimize the impact on customers," Vancas told the community leaders.
At the meeting in St. Joseph, Vancas outlined the company's plan to formally file with the Missouri Public Service Commission for a $24.4 million rate increase affecting the 64,500 customers in its SJLP service area. If approved, the proposed increase will raise bills by an average of $16.09 per month for a typical residential customer using 833 kilowatt-hours of electricity. Vancas indicated that 91 cents of every dollar paid by customers is used to support utility operations.
In addition to rising fuel costs, many communities that Aquila serves continue to grow. Customers in the SJLP area have increased 23 percent since 1983. In addition the individual demand for power is rising as people make greater use of computers and continue to purchase additional electronic devices. By 2015, average residential electric use is projected to be 73 percent higher than in 1983.
"Aquila is working hard to keep costs low and customers can take steps to control their energy use also," Vancas said.
Within the case Aquila also is proposing additional efficiency programs to help make energy more affordable. These include energy audits, rebates and weatherization resources.
Based in Kansas City, Mo., Aquila serves 300,000 electric customers in Missouri. Aquila provides electricity and natural gas delivery service to 1.2 million customers in Missouri, Kansas, Colorado, Iowa, Nebraska and Minnesota.
The Aquila, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1753