Exhibit 10(l)  SUMMARY
OF THE EMPIRE DISTRICT ELECTRIC COMPANY ANNUAL
INCENTIVE PLAN  Our annual incentive plan is the
short-term component of our incentive compensation package.  Under this individualized annual plan, each
executive officer can earn additional cash compensation based on performance
measured against short-term tactical goals that lend support to our long-term
vision, goals and strategies. A set of metrics and corresponding performance
measures relevant to each executives area is developed from the broad
corporate goals and key business strategies at the beginning of the calendar
year.  One or more performance measures
are developed for each metric.  Each
performance measure is assigned a percentage weighting.  The weightings of each performance measure
sum up to 100%.  While corporate goals
and key business strategies have a long-term, multi-year perspective, the
metrics developed from them are short-term in perspective, focusing on the
operating conditions and circumstances of a particular year.  Each executive officer provides the President
and CEO a set of proposed metrics and performance measures for each new
calendar year.  The President and CEO
evaluates the proposed metrics and performance measures and makes any necessary
modifications.  The President and CEO
presents the proposed annual metrics and performance measures for himself and
all other executive officers to the Compensation Committee each new calendar
year.  The Compensation Committee reviews
his recommendations for consistency, measurability, and equity relative to
individual responsibilities and, together with their assessment of near-term
Company objectives, makes any necessary adjustments to individual annual
incentive plans before approving.  Once metrics, performance measures
and weightings are determined, total target Annual Cash Incentive amounts are
calculated for each executive officer with consideration given to our total
cash compensation philosophy.  Performance
levels above and below the target level of performance are also determined for
each performance measure.  A threshold
level of performance indicates a minimum (below target) level of expected
performance.  A maximum level of performance
indicates a higher (above target) level of expected performance.  Greater incentive compensation is payable if
the maximum level of performance is achieved. 
An incentive compensation award at the threshold level of performance is
equal to 50% of the target level award. 
At the maximum level of performance, the incentive compensation award is
equal to 200% of the target level award. 
When performance levels are between the threshold and maximum
performance levels, the amount of incentive compensation award is interpolated.  If an executive does not perform at least at
a threshold level of performance with regard to any particular individual
performance measure, no incentive compensation is awarded with respect to that
performance measure.  Each executive officers
performance against his/her individual annual incentive plan is reviewed by the
President and CEO with the Compensation Committee following the conclusion of
the calendar year.  The President and CEO
recommends incentive payments reflective of performance against each executive
officers individual annual incentive plan during the calendar year.  The Compensation Committee considers his
recommendations, makes any appropriate adjustments and determines the amount of
annual cash incentive earned by each executive. 
The Compensation Committee independently appraises the performance of
the President and CEO, and determines his incentive award accordingly.