2007 Kansas Renewable Energy &

Energy Efficiency ConferenceSeptember 26, 2007

Tim Wilson, Planning and Operations Analyst

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Utility Perspective on Meridian Way Windfarm

General Information on Empire District Electric Co. Empire’s Current Generation Mix Load vs. Generation Graphs w/ Current Wind PPA

► Typical Summer Day► Summer Day with Very Little Wind Generation► Typical Night During a “Shoulder” Month

Why Meridian Way?► Empire’s 2006 Integrated Resource Plan (IRP)► Can Empire Integrate More Wind into its System?► Closing Thoughts

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Empire District Electric Company

Based in Joplin, Missouri, The Empire District Electric Company (NYSE: EDE) is an investor-owned, regulated utility providing electricity, 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. Certain subsidiaries of the Company also provide fiber optic and Internet services.

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Empire’s Service Territory

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TME August Generation by Fuel TypeOther, 2.1%Spot Purchase,

7.2%

*Wind PPA 8.3%

Hydro, 1.1%

Combined Cycle,

15.1%

Simple Cycle CT,

2.7% Coal, 63.5%

Coal

Simple Cycle CT

Combined Cycle

Hydro

Wind PPA's

Spot Purchase

Other

*All Renewable Attributes have been sold via RECs

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Typical Summer Day

0

200

400

600

800

1000

1200

1 3 5 7 9 11 13 15 17 19 21 23

Hour

(MW)

Wind

Peaking

Intermediate

Baseload

EDE Load

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Summer Day w/ Very Little Wind Generation

0

200

400

600

800

1000

1200

1 3 5 7 9 11 13 15 17 19 21 23

Hour

(MW)

Wind

Peaking

Intermediate

Baseload

EDE Load

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Typical Night During a “Shoulder” Month

0

100

200

300

400

500

600

700

800

1 3 5 7 9 11 13 15 17 19 21 23

Hour

(MW) Wind

Minimum Generation

EDE Load

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Why Meridian Way?? Empire’s 2006 Integrated Resource Plan

(IRP) Results►Goal: 100 MW of Additional Wind Energy►Request For Proposals (RFP)

● Wind Energy Resources Post 2007● Cost Effective Pricing● Suitably Located

►What is “Suitably Located”?● Location Diversity From Existing Windfarm● Transmission Upgrades

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Why Meridian Way?? (Cont’d)

RFP Evaluation►Most Economical►Ready for Construction by end of ‘08

Horizon’s Meridian Way Windfarm►“Suitable Location”

●Location Diversity: Yes●Transmission Upgrades: TBD

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Elk River and Meridian WayRelative Locations

Meridian Way Windfarm Site

Elk River Windfarm

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Can Empire Integrate More Wind into its System?

We Believe the Answer is Yes – But it Will Not Always be Easy

Empire Currently Has Two Aero-Derivative Gas Turbines Totaling 100MW►Quick Start Jet Engines►Can be Used as Backup Generation if Wind Drops

Unexpectedly All Wind PPA’s Were Evaluated in Conjunction

with another 50 MW Aero-Derivative Gas Turbine

SPP Imbalance Market

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Expected 2009 Generation Mix w/ Meridian Way

Spot Purchase,

6.4%

Wind PPA 15.2%

Hydro, 1.1%

Combined Cycle,

15.2%

Simple Cycle CT,

2.8%

Coal, 59.2%

Coal

Simple Cycle CT

Combined Cycle

Hydro

Wind PPA's

Spot Purchase

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Closing Thoughts Empire Believes in Having a Balanced Mix

of Generation Options (Don’t Put All of Your Eggs in One Basket)

Wind is an Integral Part of that Mix Additional Wind Benefits

►Hedge Against Volatile Natural Gas Prices►Future Renewable Portfolio Standard (RPS)►Carbon Regulation

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Questions?

Tim Wilson, Planning and Operations Analyst