KANSAS CITY, Mo., July 3, 2006 (PRIMEZONE) -- Aquila, Inc. today filed a request with the Missouri Public Service Commission for electrical rate increases in the company's Missouri Public Service and St. Joseph Light & Power territories. Reasons for the request include increasing prices in the natural gas and coal markets, increased customer usage and continued customer growth. The request also proposes implementation of a fuel adjustment law passed in 2005 by the Missouri legislature.
Aquila's typical residential customer uses 42 percent more electricity annually than in 1983, and the company's number of customers served is up 58 percent since 1983.
In Aquila's Missouri Public Service (MPS) region, the proposal would increase monthly bills $21.19 for the typical residential customer using 1,000 kilowatt-hours of electricity a month. The request is for an increase of 22 percent, or $94.5 million, for the company's 235,500 electric customers in the MPS service area. The increase will impact all classes of customers, including residential, commercial and industrial.
Elements of the proposal for Aquila's MPS region:
-- $46.8 million for new capacity to serve increased demand -- $28.5 million for fuel and purchased power costs -- $11.8 million for electric system investments -- $7.4 million for system and operating maintenance
For the typical St. Joseph-area residential customer, the company's proposal would increase bills $16.09 a month. The request is for an increase of 22.1 percent, or $24.4 million, for Aquila's 64,500 customers in its SJLP service area. This increase also would impact all classes of customers.
Elements of the proposal for Aquila's SJLP region:
-- $14.4 million for fuel and purchased power costs -- $6.7 million for electric system investments -- $3.3 million for system and operating maintenance
Within the case Aquila also is proposing implementation of the fuel adjustment law passed by the legislature in 2005, to allow Aquila to adjust rates on a quarterly basis to more readily reflect fuel costs. The Missouri Public Service Commission will review all such adjustments. Also proposed are additional efficiency programs from the company to help make energy more affordable. These include energy audits, rebates and weatherization resources.
It normally takes approximately 11 months to receive approval from the Commission before customers are affected by new rates. In the regulatory process for Missouri utilities, it typically takes more than two years from the time a utility incurs costs before those costs are recovered in customers' rates.
Aquila serves 300,000 electric customers in Missouri. Based in Kansas City, Mo. Aquila provides electricity and natural gas service to 1 million customers in Missouri, Kansas, Colorado, Iowa and Nebraska.
The Aquila, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1753