The Empire District Electric Company Announces New Missouri Electric Rates

JOPLIN, Mo.--(Business Wire)--
The Empire District Electric Company (NYSE:EDE) today announced
that the Missouri Public Service Commission (MPSC) has issued an Order
in the rate case filed by the Company on October 1, 2007. The Company
had asked for an annual increase in revenues of approximately $34.7
million or 10.11 percent.

The Order results in a net increase in revenue of approximately
$22.0 million, or 6.7 percent, and is based on a 10.8 percent return
on equity. We anticipate the rates will go into effect by September 1,
2008.

With this case, the MPSC authorized a fuel adjustment for Empire's
Missouri customers. The MPSC established a base rate for the recovery
of fuel and purchased power expenses used to supply energy. Going
forward, the fuel adjustment will be modified twice a year with
Commission approval. If the fuel expense is less than the base,
customers will see a credit. If the fuel expense is higher, customers
will see an additional charge. This will be listed as a separate item
and allows customers a more immediate view of what impact fuel
expenses are having on their bill.

The Order contains two components. The first component provides an
addition to base rates, which the Commission has reported is
approximately $27.7 million. The second component is an amortization
that provides Empire additional cash through rates during the current
construction cycle. This construction, which is a part of the
Company's long-range plan to ensure reliability, includes the
facilities at the Riverton Power Plant and Iatan 2 Power Plant, as
well as environmental improvements at the Asbury Power Plant and at
Iatan 1. The second component related to regulatory amortization has
been adjusted downward by $5.7 million. The regulatory amortization is
now approximately $4.5 million.

The Commission also approved the Stipulation and Agreements
providing for the recovery of deferred expenses for the 2007 ice
storms and continuation of the pension and other post-retirement
employee benefits trackers. The Commission also approved incorporation
of the Staff's base fuel and purchased power figure of approximately
$32.50 per megawatt hour, and established a two-way tracker for the
cost of compliance with the vegetation and infrastructure reliability
rules. The new rates will allow recovery of the capital additions for
the 150-megawatt generating unit at the Riverton Power Plant, the
selective catalytic reduction system at the Asbury Power Plant, and
the 2007 ice storms.

For a residential customer using 1,000 kilowatt-hours monthly, the
impact of the new base rates will be about $6.13 per month.

Bill Gipson, President and CEO, will host a conference call today,
Thursday, July 31, 2008, at 4:00 p.m. Eastern Time to discuss the
Missouri rate case. To phone in to the conference call, parties in the
United States should dial 1-800-240-2430, any time after 3:45 p.m.
Eastern Time. The presentation can also be accessed from Empire's
website at www.empiredistrict.com. A replay of the call will be
available for two weeks by dialing 1-800-405-2236 and entering
passcode 11118164#. Forward-looking and other material information may
be discussed during the conference call.

Based in Joplin, Missouri, The Empire District Electric Company
(NYSE:EDE) is an investor-owned utility providing electric, natural
gas (through its wholly owned subsidiary The Empire District Gas
Company) and water service, with approximately 215,000 customers in
Missouri, Kansas, Oklahoma, and Arkansas. A subsidiary of the Company
also provides fiber optic services.

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
and 10-Q.

The Empire District Electric Company
Media Communications:
Amy Bass, 417-625-5114
Director of Corporate Communications
abass@empiredistrict.com
or
Investor Relations
Jan Watson, 417-625-5108
Secretary - Treasurer
jwatson@empiredistrict.com

Copyright Business Wire 2008