1. 2007 Kansas Renewable Energy & Energy Efficiency Conference September 26, 2007 Tim Wilson, Planning and Operations Analyst

2. 2 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

3. 3 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.

4. 4 Empire’s Service Territory

5. 5 TME August Generation by Fuel Type *All Renewable Attributes have been sold via RECs

6. 6 Typical Summer Day

7. 7 Summer Day w/ Very Little Wind Generation

8. 8 Typical Night During a “Shoulder” Month

9. 9 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

10. 10 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

11. 11 Elk River and Meridian Way Relative Locations Meridian Way Windfarm Site Elk River Windfarm

12. 12 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

13. 13 Expected 2009 Generation Mix w/ Meridian Way

14. 14 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

15. 15 Questions? Tim Wilson, Planning and Operations Analyst