SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
June 3, 1994
ST. JOSEPH LIGHT & POWER COMPANY
(Exact name of registrant as specified in its charter)
State of Missouri 1-3576 44-0419850
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification
incorporation or No.)
organization)
520 Francis Street, P. O. Box 998,
St. Joseph, Missouri 64502-0998
(Address of principal executive offices)
Registrant's telephone number, including area code
(816) 233-8888
(Former name or former address, if changed since last
report) Not applicable<PAGE>
ST. JOSEPH LIGHT & POWER COMPANY
ITEM 5. OTHER EVENTS
On June 3, 1994, the Missouri Public Service
Commission (MPSC) approved a stipulated agreement
which allows St. Joseph Light & Power Company (the
Company) to increase annual electric revenues by $2.15
million, or 3.1 percent, effective June 15, 1994.
The agreement requires the Company to recognize
pension expense on an accrual basis in accordance with
Statement of Financial Accounting Standards (SFAS)
No. 87 for rate setting and financial reporting purposes.
In response to the MPSC Order, the Company will
record a one-time adjustment reducing pension expense
by approximately $5.6 million, thus eliminating a
regulatory liability for pension credits established as a
result of the 1993 MPSC rate order. This adjustment will
increase the second quarter 1994 earnings (net of tax) by
approximately $3.5 million.
The stipulated agreement also provides that other post-
employment benefits (OPEB) will now be recognized on
an accrual basis for rate setting purposes, in accordance
with SFAS No. 106. OPEB costs had previously been
recognized in rates on a pay-as-you-go basis.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(C.) Exhibits
99 News release date June 3, 1994.
<PAGE>
ST. JOSEPH LIGHT & POWER COMPANY
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
ST. JOSEPH LIGHT & POWER COMPANY
(Registrant)
L. J. Stoll
Vice President-Finance, Treasurer
and Assistant Secretary
(Duly Authorized Officer)
Dated June 9, 1994
Exhibit 99
St. Joseph Light and Power Company
520 Francis Street
Post Office Box 998
St. Joseph, MO 64502-0998
News Release
For immediate release June 3, 1994
The Missouri Public Service Commission (PSC) today approved a stipulated
agreement among the parties involved in the request by St. Joseph Light &
Power Co. to increase electric prices.
Parties to the agreement are the company, the PSC staff, the Office of
Public Counsel, the city of Maryville and a group of business intervenors.
"Under the agreement, Light & Power would increase annual electric
revenues by $2.15 million, or 3.1 percent," Jerry Musil, manager, Public
Affairs for the company, said. In November 1993, the company had
requested a $5.5 million, or 7.9 percent increase.
"With this change, the bill of a residential general-use electric customer
using 650 kilowatt-hours of electricity a month will increase $1.48, to $45.76
a month," he said.
A typical customer who heats and cools with electricity uses an average of
25,700 kilowatt-hours annually. The bill for these customers will increase
$3.42 a month to about $90.
The changes will be effective with electric usage on and after June 15.
This is the first general electric price increase for the company since 1981.
Since that time, there have been three price reductions.
Even with this increase, Light & Power's prices are among the lowest in
Missouri, the region and the country. "For a customer who heats and cools
with electricity," Musil said, "Light and Power's prices are about 30 percent
lower than the average price of other regional investor-owned utilities.
"Increasing fuel costs, income taxes and the loss of two large industrial
customers were instrumental in our request to increase electric prices."
Company President Terry F. Steinbecker noted the additional revenue
would allow the company to continue providing quality service at still very
reasonable prices.
"Competitive prices are essential in the future for electric utilities, and the
agreement means the company can continue providing excellent service
while meeting its increased costs," he said.
Light and Power serves more than 60,000 electric customers in 10 northwest
Missouri counties.
Contact: Jerry Musil
816-387-6236 (office)
816-233-5980 (home)
