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JOPLIN, MO, December 7, 2000 - (NYSE:EDE) On Monday, December
4, 2000, The Empire District Electric Company received an order
from the Administrative Law Judge ("ALJ") of the Arkansas
Public Service Commission relating to Empire's proposed merger
with UtiliCorp United Inc. The ALJ ruled that Empire and
UtiliCorp's proposed regulatory plan should not be approved.
In addition, the ALJ stated that he was unable to separate the
application for approval of the merger and the proposed
regulatory plan and he therefore could not conclude that the
merger was consistent with the public interest, the standard
for merger approval in Arkansas. Empire and UtiliCorp jointly
plan to file an objection to the ALJ's decision.
The consummation of the merger is conditioned upon the receipt
of all required regulatory approvals, including the approval of
the Arkansas Public Service Commission and the public utility
regulatory commissions in Missouri, Kansas and Oklahoma, which
are also pending, and upon such approvals becoming final
orders. All other regulatory approvals have been obtained and
have become final orders. The merger agreement provides that
either Empire or UtiliCorp may (but is not required to)
terminate the merger agreement if the Effective Time of the
merger has not occurred by December 31, 2000. It is no longer
possible for all of the required regulatory approvals to be
obtained and become final orders by December 31, 2000, and as a
result it is no longer possible for the Effective Time of the
merger to occur by that date.
