The Empire District Electric Company (Empire District) is an operating public utility engaged in the generation, purchase, transmission, distribution and sale of electricity in parts of Missouri, Kansas, Oklahoma and Arkansas. The Company operates its businesses as three segments: electric, gas and other. As part of its electric segment, the Company also provides water service to three towns in Missouri. The Empire District Gas Company (EDG) is the Company’s wholly owned subsidiary formed to hold the Missouri Gas assets acquired from Aquila, Inc. Empire District’s other segment consists of fiber optics business. At December 31, 2008, the Company’s principal gas utility properties consisted of approximately 87 miles of transmission mains and approximately 1,113 miles of distribution mains.