On Your Side: Missouri regulators approve Empire Electric rate increase tied to service improvements
SPRINGFIELD, Mo. (KY3) — The Missouri Public Service Commission approved a rate agreement Wednesday that requires Empire District Electric Company to improve customer service and billing before implementing rate increases.
The commission voted to approve proposed agreements between commission staff, Midwest Energy Consumers Group, Renew Missouri Advocates, and Empire District Electric Company, which operates as Liberty.
The order establishes specific billing and customer service metrics that Empire must meet before receiving the opportunity to implement changes to customer rates.
Rate increase reduced, tied to performance
Under the order, Empire has the opportunity to increase annual operating revenues for electric distribution services by up to $97 million. Empire had requested an increase in annual operating revenues of $152.8 million.
The rate changes will be phased in based on satisfactory improvements measured by customer service and billing metrics. The increase will commence upon the commission’s approval of its staff’s recommendation, indicating the company has met the required billing and customer service metrics for three consecutive months.
The rate increase will be phased in over three years, with approximately one-third of the increase implemented each consecutive year:
- Year 1: approximately $32.3 million increase
- Year 2: approximately $64.6 million increase
- Year 3: $97 million increase
Commission cites persistent service issues
The order reflects the commission’s concern with persistent issues the company has experienced with billing and customer service since implementing its Customer First system in April 2024.
“Addressing the customer service and billing issues is a priority for the Commission. Staff’s opinion was that the implementation of Customer First compromised Empire’s ability to provide safe and reliable service at just and reasonable rates,” the commission stated in its order.
The commission said authorizing a rate increase before addressing customer service and billing issues would result in unjust and unreasonable rates.
Additional requirements
Empire will engage an independent third-party auditor to conduct external audits including customer billing accuracy and timeliness and customer service and satisfaction levels across all channels.
The company will also forgive $8.5 million in customer arrears through a targeted relief initiative. Empire will work with stakeholders to design a program that uses the funds effectively.
Regulatory law requires the commission to allow companies to recover prudently incurred costs such as fuel to generate electricity, building and maintaining transmission lines and equipment, and personnel to safely provide utility service.
Commissioners said evidence in the case record affirmed that the agreement meets the legal requirement to recover costs while requiring needed improvements in billing and customer service before the company receives any revenue increase.
To report a correction or typo, please email digitalnews@ky3.com. Please include the article info in the subject line of the email.
Copyright 2026 KY3. All rights reserved.