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Empire Electric Energy Efficiency 2013

WHEREAS:

Navigant Consulting recently observed that, "the changes underway in 21st century electric power sector create a level and complexity of risks that is perhaps unprecedented in the industry's history."

In 2008 the Brattle Group projected that the U.S> electric utility industry would need to invest capital at historic levels between 2010 and 2030 to replace aging infrastructure, deploy new technologies, and meet future consumer needs and government policy requirements. In all, Brattle predicted that total industry-wide capital expenditures from 2010 to 2030 would amount to between $1.5 trillion and $2.0 trillion.

In May 2011, a National Academy of Sciences report warned that the risk of dangerous climate change impacts is growing with ever ton of greenhouse gases emitted into the atmosphere. THe report also emphasized that, "the sooner that serious efforts to reduce greenhouse gas emissions proceed, the lower the risks posed by climate change, and the less pressure there will be to make larger, more rapid, and potentially expensive reductions later."

The Tennessee Valley Authority's (TVA) 2011 integrated resource plan, which employed a sophisticated approach to risk management determined that the lowest-cost, lowest-risk strategies were the ones that diversified TVA's resource portfolio by increasing investments in energy efficiency and renewable energy.

In October 2012 the American Council for an Energy Efficient Economy released a report ranking Missouri 43rd among all states in terms of energy efficiency performance.

A 2009 study by McKinsey & Company found that investments in energy efficiency could realistically cut U.S. energy consumption by 23% by 2020. These efficiency gains could save consumers nearly $700 billion.

In 2009 the Missouri General Assembly passed the Missouri Energy Efficiency Investment Act (MEEIA). IN 2010 the Missouri Public Commission (PSC) interpreted MEEIA and issues final rules that remove financial disincentives for regulated utilities to invest in energy efficiency. The rules allow utilities to recover costs of efficiency investments and resulting lost margins.

In 2012 both Ameren Missouri and Kansas City Power and Light - Greater Missouri Operations received approval from the PSC for efficiency programs within the MEEIA framework, investing respectively $145 million and $40 million in efficiency demand side mechanisms over the next three years.

In 2012 Ceres issued a report identifying efficiency as the least coast and least risk energy resource.

The Empire District Electric Company has not disclosed in SEC Filings or other public communications a significant accounting of investments in demand side energy efficiency.

RESOLVED:

Shareholders request a report [reviewed by a board committee of independent directors] on actions the company is taking or could take to reduce risk throughout its energy portfolio by pursuing all cost effective energy efficiency resources. The report should be provided by September 1, 2013 at a reasonable cost and omit propriety information.