EmpireDistrict Electric Co. plans to implement an electric rate increasein Arkansas to recover costs associated with the of unit 12 to acombined-cycle unit in Kansas.

In its proposed cost recovery rider, Empire District askedthe state Public Service Commission to approve an increase of approximately$5.75 a month for residential customers using 1,000 kWh of electricity,according to a company release.

Empire District invested $168 million to convert thefacility from a simple-cycle combustion turbine to combined-cycle operation.The 248.8-MW project replaced energy production capacity of two coal-firedunits, which were retiredto comply with the U.S. EPA's new rules.

Empire District Electric is in the middle of a $2.3 billionacquisition byAlgonquin Power & UtilitiesCorp.