Agreement Requires Customer Service And Billing Improvements Before Rate Changes, Subsequent Rate Adjustments To Be Phased-In Over Three Years
JEFFERSON CITY, Mo. — On Wednesday, January 14, 2026, the Missouri Public Service Commission (PSC) voted to approve proposed Agreements and a Supplemental Agreement between the Staff of the Commission, Midwest Energy Consumers Group, Renew Missouri Advocates d/b/a Renew Missouri, and the Empire District Electric Company d/b/a Liberty.
In its Order, the Commission accepted the terms of the Agreements which establish specific billing and customer service metrics that Empire is required to meet prior to receiving the opportunity to implement changes to customer rates.
The Order adopted today reflects the Commission’s concern with the persistent issues the Company has experienced with billing and customer service and the Commission’s ongoing expectations for measurable improvement in these areas.
“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 agrees and finds that authorizing an increase in rates prior to the customer service and billing issues being addressed would result in unjust and unreasonable rates.
“The Commission finds that a rate increase, delayed until certain customer service and billing metrics are met, is a just and reasonable outcome necessary to support Empire’s safe and adequate service while taking into account both the billing and customer service failings that customers have endured since April 2024, and Empire’s investors.”
Regulatory law requires the Commission to allow companies to recover prudently incurred costs, such as fuel to generate electricity, building and maintaining transmission lines to carry electricity to customers and equipment and personnel to safely and adequately provide utility service.
Commissioners said evidence in the case record affirmed that the agreement meets the legal requirement to recover costs – while at the same time requiring needed improvements in billing and customer service before the Company could receive any revenue increase.
Highlights of the Order
- Reduced Rate Increase. 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.
- Rate Changes will be Phased-In Based on Satisfactory Improvements, Measured by Customer Service and Billing Metrics. The increase would commence upon the Commission’s approval of its Staff’s recommendation indicating the Company has met required billing and customer service metrics for a period of three consecutive months. At that time, the rate increase will be phased-in over a period of three years with approximately one-third of the increase being implemented each consecutive year, the total allowable increase collected per year is as follows:
o Year 1 – recovering approximately $32.3 million increase;
o Year 2 – recovering approximately $64.6 million increase;
o Year 3 – recovering $97 million increase.
- External Audit. Empire will engage an independent third-party auditor to conduct external audits to include, but not be limited to, customer billing accuracy and timeliness and customer service and satisfaction levels across all channels.
- Customer Arrearage Forgiveness Program. The Company will forgive $8.5 million in customer arrears through a targeted relief initiative. The Company will work collaboratively with stakeholders to design a creative and impactful program that facilitates the funds being used in the most meaningful and effective way.
Visit the PSC’s website at www.psc.mo.gov to learn more about the Commission and to view recent news releases and video of select proceedings.
# # #
Case No.: ER-2024-0261
