UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning April 1, 2003 and Ending December 31, 2003
TO THE
U.S.
SECURITIES AND EXCHANGE COMMISSION
OF
Great Plains Energy Services Incorporated
(Exact Name of Reporting Company)
A Subsidiary Service Company
Date of Incorporation April 1, 2003 If not Incorporated, Date of Organization
State or Sovereign Power under which Incorporated or Organized: Missouri
Location of Principal Executive Office of Reporting Company: 1201 Walnut Street,
Kansas City, Missouri 64106
Name,
title, and address of officer to whom correspondence concerning this report should be
addressed:
Lori A. Wright | Controller | 1201 Walnut, Kansas City, Mo 64106 | |||||||||
(Name) | (Title) | (Address) |
Name of Principal Holding Company whose Subsidiaries are served by Reporting
Company: Great Plains Energy Incorporated
1. Time of Filing
Rule 94 provides that on or before the first day of May in each calendar year, each mutual service company and each subsidiary service company as to which the Commission shall have made a favorable finding pursuant to Rule 88, and every service company whose application for approval or declaration pursuant to Rule 88, and every service company whose application for approval or declaration pursuant to Rule 88 is pending shall file with the Commission an annual report on Form U-13-60 and in accordance with the instructions for that form.
2. Number of Copies
Each annual report shall be filed in duplicate. The company should prepare and retain at least one extra copy for itself in case correspondence with reference to the report become necessary.
3. Period Covered by Report
The first report filed by any company shall cover the period from the date the Uniform System of Accounts was required to be made effective as to that company under Rules 82 and 93 to the end of that calendar year. Subsequent reports should cover a calendar year.
4. Report Format
Reports shall be submitted on the forms prepared by the Commission. If the space provided on any sheet of such form is inadequate, additional sheets may be inserted of the same size as a sheet of the form or folded to each size.
5. Money Amounts Displayed
All money amounts required to be shown in financial statements may be expressed in whole dollars, in thousands of dollars or in hundred thousands of dollars, as appropriate and subject to provisions of Regulation S-X (§210.3-01(b)).
6. Deficits Displayed
Deficits and other like entries shall be indicated by the use of either brackets or a parenthesis with corresponding reference in footnotes (Regulation S-X, §210.3-01(c)).
7. Major Amendments or Corrections
Any company desiring to amend or correct a major omission or error in a report after it has been filed with the Commission shall submit an amended report including only those pages, schedules, and entries that are to be amended or corrected. A cover letter shall be submitted requesting the Commission to incorporate the amended report changes and shall be signed by a duly authorized officer of the company.
8. Definitions
Definitions contained in Instruction 01-8 to the Uniform System of Accounts for Mutual Service Companies and Subsidiary Service Companies, Public Utility Holding Company Act of 1935, as amended February 2, 1979 shall be applicable to words or terms used specifically with this Form U-13-60.
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9. Organizational Chart
The service company shall summit with each annual report a copy of its current organization chart.
10. Methods of Allocation
The service company shall summit with each annual report a listing of the currently effective methods of allocation being used by the service company and on file with the Securities and Exchange Commission pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed
The service company shall submit with each annual report a copy of the annual statement supplied to each associate company in support of the amount of compensation for use of capital billed during the calendar year.
12. Collection of Information
The information requested by this form is being collected because rules 93 and 94 of the Public Utility Holding Company Act of 1935 (Act) require it. The Commission uses this information to determine the existence of detriments to interests the Act is designed to protect. The Commission estimates that it will take each respondent fourteen and one-half (14.5) hours to respond to this collection of information. A response to this form is mandatory. Without approval by the Commission, holding companies would be in violation of the Act. The information on this form will not be kept confidential. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number.
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LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or | Page | ||||
Description of Schedules and Accounts | Account Number | Number | |||
Comparative Balance Sheet | Schedule I | 6- | 7 | ||
Service Company Property | Schedule II | 8 | |||
Accumulated Provision for Depreciation and | |||||
Amortization of Service Company Property | Schedule III | 9 | |||
Investments | Schedule IV | 10 | |||
Accounts Receivable from Associate Companies | Schedule V | 11 | |||
Fuel Stock Expense Undistributed | Schedule VI | 12 | |||
Stores Expense Undistributed | Schedule VII | 12 | |||
Miscellaneous Current and Accrued Assets | Schedule VIII | 13 | |||
Miscellaneous Deferred Debits | Schedule IX | 14 | |||
Research, Development or Demonstration Expenditures | Schedule X | 15 | |||
Proprietary Capital | Schedule XI | 16 | |||
Long-Term Debt | Schedule XII | 17 | |||
Current and Accrued Liabilities | Schedule XIII | 18 | |||
Notes to Financial Statements | Schedule XIV | 19 | -20 | ||
Statement of Income | Schedule XV | 21 | -22 | ||
Analysis of Billing Associate Companies | Account 457 | 23 | |||
Analysis of Billing Nonassociate Companies | Account 458 | 24 | |||
Analysis of Charges for Service Associate and | |||||
Nonassociate Companies | Schedule XVI | 25 | |||
Schedule of Expense Distribution by Department or Service Function | Schedule XVII | 26 | |||
Departmental Analysis of Salaries | Account 920 | 27 | |||
Outside Services Employed | Account 923 | 28 | -29 | ||
Employee Pensions and Benefits | Account 926 | 30 | |||
General Advertising Expenses | Account 930.1 | 31 | |||
Miscellaneous General Expenses | Account 930.2 | 32 | |||
4
Rents | Account 931 | 33 | |||
Taxes Other Than Income Taxes | Account 408 | 34 | |||
Donations | Account 426.1 | 35 | |||
Other Deductions | Account 426.5 | 36 | |||
Notes to Statement of Income | Schedule XVIII | 37 | |||
Organization Chart | Attachment | 38 | |||
Methods of Allocation | Attachment | 39 | -40 | ||
Annual Statement of Compensation for Use of Capital Billed | Attachment | 41 |
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Schedule I -
Comparative Balance Sheet
(In Thousands)
Give balance sheet of the Company as of December 31 of the current and prior year.
Account | Assets and Other Debits | As of December 31 | ||||||||||||
2003 | 2002 | |||||||||||||
Service Company Property | ||||||||||||||
101 | Service company property (Schedule II) | $ | - | $ | - | |||||||||
107 | Construction work in progress (Schedule II) | 203 | - | |||||||||||
Total Property | 203 | - | ||||||||||||
108 | Less accumulated provision for depreciation and amortization of | |||||||||||||
service company property (Schedule III) | - | - | ||||||||||||
Net Service Company Property | 203 | - | ||||||||||||
123 | Investments in associate companies (Schedule IV) | - | - | |||||||||||
124 | Other investments (Schedule IV) | - | - | |||||||||||
Total Investments | - | - | ||||||||||||
Current and Accrued Assets | ||||||||||||||
131 | Cash | (200 | ) | - | ||||||||||
134 | Special deposits | - | - | |||||||||||
135 | Working funds | - | - | |||||||||||
136 | Temporary cash investments (Schedule IV) | 200 | - | |||||||||||
141 | Notes receivable | - | - | |||||||||||
143 | Accounts receivable | 181 | - | |||||||||||
144 | Accumulated provision for uncollectible accounts | - | - | |||||||||||
146 | Accounts receivable from associate companies (Schedule V) | 12,737 | - | |||||||||||
152 | Fuel stock expenses undistributed (Schedule VI) | - | - | |||||||||||
154 | Materials and supplies | - | - | |||||||||||
163 | Stores expense undistributed (Schedule VII) | - | - | |||||||||||
165 | Prepayments | 370 | - | |||||||||||
174 | Miscellaneous current and accrued assets (Schedule VIII) | - | - | |||||||||||
Total Current and Accrued Assets | 13,288 | - | ||||||||||||
Deferred Debits | ||||||||||||||
181 | Unamortized debt expense | - | - | |||||||||||
184 | Clearing accounts | - | - | |||||||||||
186 | Miscellaneous deferred debits (Schedule IX) | 2,669 | - | |||||||||||
188 | Research, development, or demonstration expenditures (Schedule X) | - | - | |||||||||||
190 | Accumulated deferred income taxes | - | - | |||||||||||
Total Deferred Debits | 2,669 | - | ||||||||||||
TOTAL ASSETS AND OTHER DEBITS | $ | 16,160 | $ | - | ||||||||||
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Proprietary Capital | ||||||||||||||
201 | Common stock issued (Schedule XI) | $ | 10 | $ | - | |||||||||
211 | Miscellaneous paid-in-capital (Schedule XI) | - | - | |||||||||||
215 | Appropriated retained earnings (Schedule XI) | - | - | |||||||||||
216 | Unappropriated retained earnings (Schedule XI) | - | - | |||||||||||
219 | Accumulated other comprehensive income (loss) (Schedule XI) | (1,884 | ) | - | ||||||||||
Total Proprietary Capital | (1,874 | ) | - | |||||||||||
Long-Term Debt | ||||||||||||||
223 | Advances from associate companies (Schedule XII) | - | - | |||||||||||
224 | Other long-term debt (Schedule XII) | - | - | |||||||||||
225 | Unamortized premium on long-term debt | - | - | |||||||||||
226 | Unamortized discount on long-term debt-debit | - | - | |||||||||||
Total Long-Term Debt | - | - | ||||||||||||
Other Noncurrent Liabilities | ||||||||||||||
228.2 | Accumulated provision for injuries and damages | 163 | - | |||||||||||
228.3 | Accumulated provision for pensions and post retirement benefits | 5,054 | - | |||||||||||
Total Other Noncurrent Liabilities | 5,217 | - | ||||||||||||
Current and Accrued Liabilities | ||||||||||||||
231 | Notes payable | - | - | |||||||||||
232 | Accounts payable | 12,075 | - | |||||||||||
233 | Notes payable to associate companies (Schedule XIII) | - | - | |||||||||||
234 | Account payable to associate companies (Schedule XIII) | 308 | - | |||||||||||
236 | Taxes accrued | (173 | ) | - | ||||||||||
237 | Interest accrued | - | - | |||||||||||
238 | Dividends declared | - | - | |||||||||||
241 | Tax collections payable | 375 | - | |||||||||||
242 | Miscellaneous current and accrued liabilities (Schedule XIII) | 1,773 | - | |||||||||||
Total Current and Accrued Liabilities | 14,358 | - | ||||||||||||
Deferred Credits | ||||||||||||||
253 | Other deferred credits | 235 | - | |||||||||||
255 | Accumulated deferred investment tax credits | - | - | |||||||||||
Total Deferred Credits | 235 | - | ||||||||||||
Accumulated Deferred Income Taxes | ||||||||||||||
282 | Accumulated deferred income taxes-other property | - | - | |||||||||||
283 | Accumulated deferred income taxes-other | (1,776 | ) | - | ||||||||||
Total Accumulated Deferred Income Taxes | (1,776 | ) | - | |||||||||||
TOTAL LIABILITIES AND PROPRIETARY CAPITAL | $ | 16,160 | $ | - | ||||||||||
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For the Year Ended December 31, 2003
Schedule II - Service
Company Property
(In Thousands)
Balance at | Retirement | Balance | |||||||||||||||
Beginning | or | Other | at Close | ||||||||||||||
Description | of Year | Additions | Sales | Changes (1) | of Year | ||||||||||||
Service Company Property | |||||||||||||||||
Account | |||||||||||||||||
301 Organization | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
303 Miscellaneous intangible plant | - | - | - | - | - | ||||||||||||
304 Land and land rights | - | - | - | - | - | ||||||||||||
305 Structures and improvements | - | - | - | - | - | ||||||||||||
306 Leasehold improvements | - | - | - | - | - | ||||||||||||
307 Equipment (2) | - | - | - | - | - | ||||||||||||
308 Office furniture and equipment | - | - | - | - | - | ||||||||||||
309 Automobiles, other vehicles and | - | - | - | - | - | ||||||||||||
related garage equipment | - | - | - | - | - | ||||||||||||
310 Aircraft and airport equipment | - | - | - | - | - | ||||||||||||
311 Other service company property (3) | - | - | - | - | - | ||||||||||||
SUB-TOTAL | - | - | - | - | - | ||||||||||||
107 Construction work in progress (4) | - | 203 | - | - | 203 | ||||||||||||
TOTAL | $ | - | $ | 203 | $ | - | $ | - | $ | 203 | |||||||
(1) Provide an explanation of those changes considered material: N/A | |||
(2) Subacccounts are required for each class of equipment owned. The service company shall provide a listing by | |||
subaccount of equipment additions during the year and the balance at the close of year: N/A | |||
(3) Describe other service company property: N/A | |||
(4) Describe construction work in progress: Cash management system |
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For the Year Ended December 31, 2003
Schedule III
Accumulated Provision for Depreciation and Amortization of Service Company Property
(In
Thousands)
Other | |||||||||||||||||
Balance at | Additions | Changes | Balance | ||||||||||||||
Beginning | Account | Add | at Close | ||||||||||||||
Description | of Year | 403 | Retirements | (Deduct)(1) | of Year | ||||||||||||
Account | |||||||||||||||||
301 Organization | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
303 Miscellaneous intangible plant | - | - | - | - | - | ||||||||||||
304 Land and land rights | - | - | - | - | - | ||||||||||||
305 Structures and improvements | - | - | - | - | - | ||||||||||||
306 Leasehold improvements | - | - | - | - | - | ||||||||||||
307 Equipment | - | - | - | - | - | ||||||||||||
308 Office furniture and fixtures | - | - | - | - | - | ||||||||||||
309 Automobiles, other vehicles | |||||||||||||||||
and related garage equipment | - | - | - | - | - | ||||||||||||
310 Aircraft and airport equipment | - | - | - | - | - | ||||||||||||
311 Other service company property | - | - | - | - | - | ||||||||||||
TOTAL | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
(1) Provide an explanation of those changes considered material: N/A |
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ANNUAL REPORT OF GREAT PLAINS ENERGY SERVICES INCORPORATED
For the Year Ended December 31, 2003
Schedule IV Investments
(In Thousands)
Instructions:
Complete the following schedule concerning investments.
Under Account 124 "Other Investments" state each investment separately, with description, including the name of issuing company, number of shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments," list each investment separately.
Balance at | Balance at | |||||||
Description | Beginning of Year | Close of Year | ||||||
Account | ||||||||
123 Investment in associate companies | $ | - | $ | - | ||||
124 Other investments | - | - | ||||||
136 Temporary cash investments | ||||||||
AIM Government & Agency Portfolio | - | 200 | ||||||
TOTAL | $ | - | $ | 200 | ||||
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ANNUAL REPORT OF GREAT PLAINS ENERGY SERVICES INCORPORATED
For the Year Ended December 31, 2003
Schedule V - Accounts
Receivable from Associate Companies
(In Thousands)
Instructions:
Complete the following schedule listing accounts receivable from each associate company. Where the service company has provided accommodation or convenience payments for associate companies, a separate listing of total payments for each associate company by subaccount should be provided.
Balance at | Balance at | |||||||
Description | Beginning of Year | Close of Year | ||||||
Account | ||||||||
146 Accounts Receivable from Associate Companies | ||||||||
Kansas City Power & Light Company | $ | - | $ | 10,328 | ||||
KLT Inc. (including Strategic Energy, L.L.C.) | - | 873 | ||||||
Home Service Solutions Inc. | - | 560 | ||||||
Worry Free Service, Inc. | - | 61 | ||||||
Innovative Energy Consultants Inc. | - | 19 | ||||||
Great Plains Power Incorporated | - | 118 | ||||||
Great Plains Energy Incorporated | - | 778 | ||||||
TOTAL | $ | - | $ | 12,737 | ||||
Analysis of Convenience or Accommodation Payments:
Total | ||||||||
Payments (1) | ||||||||
Kansas City Power & Light Company | $ | 2,816 | ||||||
Worry Free Service, Inc. | 3 | |||||||
$ | 2,819 | |||||||
(1) Convenience payments relate to security and directors and officers insurance.
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ANNUAL REPORT OF GREAT PLAINS ENERGY SERVICES INCORPORATED
For the Year Ended December 31, 2003
Schedule VI Fuel
Stock Expenses Undistributed
(In Thousands)
Instructions:
Report the amount of labor and expenses incurred with respect to fuel stock expenses during the year and indicate amount attributable to each associate company. Under the section headed "Summary" listed below give an overall report of the fuel functions performed by the service company.
Description | Labor | Expenses | Total | ||||||||
Account 152 Fuel stock expenses undistributed | $ | - | $ | - | $ | - | |||||
TOTAL | $ | - | $ | - | $ | - | |||||
Summary: |
ANNUAL REPORT OF GREAT PLAINS ENERGY SERVICES INCORPORATED
For the Year Ended December 31, 2003
Schedule VII
Stores Expense Undistributed
(In Thousands)
Instructions:
Report the amount of labor and expenses incurred with respect to stores expense during the year and indicate amount attributable to each associate company.
Description | Labor | Expenses | Total | ||||||||
Account 163 Store expense undistributed | $ | - | $ | - | $ | - | |||||
TOTAL | $ | - | $ | - | $ | - | |||||
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For the Year Ended December 31, 2003
Schedule VIII -
Miscellaneous Current and Accrued Assets
(In
Thousands)
Instructions:
Provide detail of items in this account. Items less than $10,000 may be grouped, showing the number of items in each group.
Balance at | Balance at | |||||||
Description | Beginning of Year | Close of Year | ||||||
Account 174 Miscellaneous current and accrued assets | $ | - | $ | - | ||||
TOTAL | $ | - | $ | - | ||||
13
For the Year Ended December 31, 2003
Schedule IX -
Miscellaneous Deferred Debits
(In Thousands)
Instructions:
Provide detail of items in this account. Items less than $10,000 may be grouped, showing the number of items in each group.
Balance at | Balance at | |||||||
Description | Beginning of Year | Close of Year | ||||||
Account 186 Miscellaneous deferred debits | ||||||||
Prepaid pension costs | $ | - | $ | 1,255 | ||||
Prepaid supplemental executive retirement program | - | 104 | ||||||
Prepaid postretirement health and life | - | 429 | ||||||
Intangible pension asset | - | 881 | ||||||
TOTAL | $ | - | $ | 2,669 | ||||
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For the Year Ended December 31, 2003
Schedule X - Research,
Development or Demonstration Expenditures
(In
Thousands)
Instructions:
Provide a description of each material research, development or demonstration project which incurred costs by the service corporation during the year.
Description | Amount | ||||
Account 188 Research, development or demonstration expenditures | $ | - | |||
TOTAL | $ | - | |||
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For the Year Ended December 31, 2003
Schedule XI -
Proprietary Capital
(In
Thousands)
Number of | Par or Stated | Outstanding Close of Period | |||||||||||||||
Account | Class of | Shares | Value | No. of | Total | ||||||||||||
Number | Stock | Authorized | Per Share | Shares | Amount | ||||||||||||
201 | Common stock issued | 100 | $ | - | 1 | $ | 10 | ||||||||||
Instructions:
Classify amounts in each account with brief explanation, disclosing the general nature
of transactions which give rise to the reported amounts.
Description | Amount | |||||||||||||
Account 211 Miscellaneous paid-in-capital | $ | - | ||||||||||||
Account 215 Appropriated retained earnings | - | |||||||||||||
TOTAL | $ | - | ||||||||||||
Instructions:
Give particulars concerning net income or (loss) during the year, distinguishing between compensation for the use
of capital owed or net loss remaining from servicing nonassociates per the General
Instructions of the Uniform of
System of Accounts. For dividends paid during the year in cash
or otherwise, provide rate percentages, amount of
of dividend, date declared and date paid.
Balance at | Net Income | Dividends | Balance at | |||||||||||
Description | Beginning of Year | or (Loss) | Paid | Close of Year | ||||||||||
Account 216 Unappropriated retained earnings | $ | - | - | - | $ | - | ||||||||
TOTAL | $ | - | - | - | $ | - | ||||||||
Balance at | Balance at | |||||||||||||
Description | Beginning of Year | Close of Year | ||||||||||||
Account 219 Accumulated other comprehensive | ||||||||||||||
income (loss) (1) | $ | - | $ | (1,884 | ) | |||||||||
TOTAL | $ | - | $ | (1,884 | ) | |||||||||
(1) At December 31, 2003, GPES recorded a minimum pension liability adjustment of $4.0 million due to lower discount rates and prior years' losses in the market value of plan assets. The adjustment resulted in a charge to accumulated other comprehensive income (loss) of ($3.1 million) or ($1.9 million net of tax).
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For the Year Ended December 31, 2003
Schedule XII -
Long-Term Debt
(In Thousands)
Instructions:
Advances from associate companies should be reported separately for advances on notes, and advances on open accounts. Names of associate companies from which advances were received shall be shown under the class and series of obligation column. For Account 224-Other long-term debt provide the name of the creditor company or organization, terms of obligation, date of maturity, interest rate, and the amount authorized and outstanding.
Terms of | ||||||||||||||||||||||||||
Name | Obligation | Balance at | Balance at | |||||||||||||||||||||||
of | Class & Series | Date of | Interest | Amount | Beginning of | Deductions | Close of | |||||||||||||||||||
Creditor | of Obligation | Maturity | Rate | Authorized | Year | Additions | (1) | Year | ||||||||||||||||||
Account 223 | ||||||||||||||||||||||||||
Advances from | ||||||||||||||||||||||||||
associate | ||||||||||||||||||||||||||
companies | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Account 224 | ||||||||||||||||||||||||||
Other long-term | ||||||||||||||||||||||||||
debt | - | - | - | - | ||||||||||||||||||||||
TOTAL | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
(1) Give an explanation of deductions: N/A
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ANNUAL REPORT OF GREAT PLAINS ENERGY SERVICES INCORPORATED
For the Year Ended December 31, 2003
Schedule XIII
Current and Accrued Liabilities
(In Thousands)
Instructions:
Provide the balance of
notes and accounts payable to each associate company. Give description and
amount of
miscellaneous current and accrued liabilities. Items less than $10,000 may be grouped,
showing the number of items in each group.
Balance at | Balance at | |||||||
Description | Beginning of Year | Close of Year | ||||||
Account 233 Notes payable to associate companies | $ | - | $ | - | ||||
Account 234 Accounts payable to associate companies | ||||||||
Great Plains Energy Incorporated | - | 308 | ||||||
Account 242 Miscellaneous current and accrued liabilities | ||||||||
Accrued vacation | - | 1,772 | ||||||
Miscellaneous | - | 1 | ||||||
TOTAL | $ | - | $ | 1,773 | ||||
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For the Year Ended December 31, 2003
Schedule XIV Notes to Financial Statements
Instructions:
The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference.
Note 1 Summary of Significant Accounting Policies
Organization
Great Plains Energy Services
Incorporated (GPES) is a wholly-owned subsidiary of Great Plains Energy
Incorporated (GPE or Company), a public utility holding company registered with and
subject to the regulation of the Securities and Exchange Commission under the Public
Utility Holding Company Act of 1935 (35 Act). GPES was formed in April 2003 as a service
company under the 35 Act to provide support and administrative services to GPE and certain
of its subsidiaries.
Nature of Operations
GPES provides services at cost. Costs
are ultimately assigned to GPE or one of its subsidiaries based on allocations or cost
assignments developed to reflect the actual cost as closely as practical and to prevent
the subsidization of any company. The charges for services include no compensation for the
use of equity capital.
Basis of Presentation
GPES follows the Uniform System of
Accounts prescribed for public utilities by the Federal Energy Regulatory Commission
modified to include certain service company accounts in accordance with SEC guidance.
GPES financial statements are prepared in conformity with U.S. generally accepted
accounting principles.
Cash and Cash Equivalents
Cash and cash equivalents include
cash on hand and highly liquid investments with original maturities of three months or
less.
Income Taxes
GPE and its subsidiaries file
consolidated federal and consolidated, combined or separate state income tax returns.
Deferred income taxes are recorded using statutory tax rates to reflect the effect of
temporary differences between financial reporting and tax purposes.
Note 2 Common Stock
GPES is authorized to issue 100 shares of no par common stock. GPE holds all of the outstanding GPES common stock. At December 31, 2003, GPES had one share of common stock outstanding.
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Note 3 Related Party Transactions
GPES has entered into service agreements with GPE and its subsidiaries to provide services at cost. At December 31, 2003, GPES associates include:
o | Great Plains Energy Incorporated | ||||
o | Kansas City Power & Light Company | ||||
o | Home Service Solutions Inc. | ||||
o | Worry Free Service, Inc. | ||||
o | Innovative Energy Consultants Inc. | ||||
o | Great Plains Power Incorporated | ||||
o | KLT Inc.(including Strategic Energy, L.L.C.) |
At December 31, 2003, associate company receivables and associate company payables were approximately $12.7 million and $0.3 million, respectively.
Note 4 Pension Plans and Other Employee Benefits
GPEs defined benefit pension plans cover substantially all employees of the Company, including officers. Benefits under these plans reflect the employees compensation, years of service and age at retirement. The funding policy for the pension plans is to contribute amounts sufficient to meet the minimum funding requirements under the Employee Retirement Income Security Act of 1974 plus additional amounts as considered appropriate.
Pension contributions and expenses are allocated to the Companys subsidiaries based on the labor costs of the plan participants. GPES share of pension costs and contributions in 2003 were $2.0 million and $1.9 million, respectively.
Primarily as a result of lower discount rates and prior years losses in the market value of plan assets, the Company recorded an additional minimum pension liability adjustment. The additional minimum pension liability is allocated based on each plans funded status. GPES portion of the additional minimum pension liability at December 31, 2003 was $4.0 million offset by an intangible asset of $0.9 million and other comprehensive income (loss) of $3.1 million ($1.9 million net of tax).
In addition to providing pension benefits, the Company provides certain postretirement health care and life insurance benefits for substantially all retired employees. The cost of postretirement health care and life insurance benefits are accrued during an employees years of service. The Company funds the portion of net periodic postretirement benefit costs that are tax deductible. For postretirement health care plans, contributions and expenses are allocated to the Companys subsidiaries based on the number of plan participants. GPES share of postretirement expenses was approximately $1.3 million in 2003.
20
For the Year Ended December 31, 2003
Schedule XV - Statement
of Income
(In Thousands)
Current | Prior | ||||||||||
Account | Description | Year | Year | ||||||||
Income | |||||||||||
457 | Services rendered to associate companies | $ | 53,983 | $ | - | ||||||
458 | Services rendered to nonassociate companies | - | - | ||||||||
TOTAL INCOME | 53,983 | - | |||||||||
Expense | |||||||||||
506 | Miscellaneous steam power operations | 1,053 | - | ||||||||
507 | Steam power operations-rents | 232 | - | ||||||||
546 | Production turbine operations | 16 | - | ||||||||
557 | Production other expenses | 399 | - | ||||||||
566 | Transmission operations miscellaneous expense | 77 | - | ||||||||
567 | Transmission operations-rents | 229 | - | ||||||||
580 | Distribution operations | 1 | - | ||||||||
583 | Distribution operations-overhead lines | 10 | - | ||||||||
587 | Distribution operations-customer installations | 4 | - | ||||||||
588 | Distribution maintenance miscellaneous expense | 1,206 | - | ||||||||
589 | Distribution operations-rents | 752 | - | ||||||||
591 | Distribution maintenance-structures | 175 | - | ||||||||
901 | Customer accounts-supervision | 27 | - | ||||||||
902 | Meter reading expense | 50 | - | ||||||||
903 | Customer records and collection expense | 1,343 | - | ||||||||
908 | Customer assistance expense | 47 | - | ||||||||
912 | Sales expense | 3 | - | ||||||||
920 | Salaries and wages | 18,635 | - | ||||||||
921 | Office supplies and expenses | 3,454 | - | ||||||||
922 | Administrative expense transferred - credit | 4,933 | - | ||||||||
923 | Outside services employed | 3,307 | - | ||||||||
924 | Property insurance | - | - | ||||||||
925 | Injuries and damages | 812 | - | ||||||||
926 | Employee pensions and benefits | 8,845 | - | ||||||||
928 | Regulatory commission expense | 59 | - | ||||||||
930.1 | General advertising expense | 238 | - | ||||||||
930.2 | Miscellaneous general expense | 1,572 | - | ||||||||
931 | Rents | 2,319 | - | ||||||||
932 | Maintenance of structures and equipment | 1,634 | - | ||||||||
933 | Transportation expense | 52 | - | ||||||||
403 | Depreciation and amortization expense | - | - | ||||||||
408 | Taxes other than income taxes | 1,450 | - | ||||||||
409 | Income taxes | (166 | ) | - | |||||||
410 | Provision for deferred income taxes | - | - |
21
411 | Provision for deferred income taxes - credit | 166 | - | ||||||||
411.5 | Investment tax credit | - | - | ||||||||
417.1 | Nonutility operations | 118 | - | ||||||||
419 | Interest and dividend income | (7 | ) | - | |||||||
426.1 | Donations | 289 | - | ||||||||
426.4 | Civic and political lobbying | 596 | - | ||||||||
426.5 | Other deductions | 32 | - | ||||||||
427 | Interest on long-term debt | - | - | ||||||||
430 | Interest on debt to associate companies | 14 | - | ||||||||
431 | Other interest expense | 7 | - | ||||||||
TOTAL EXPENSE | 53,983 | - | |||||||||
NET INCOME OR (LOSS) | $ | - | $ | - |
22
For the Year Ended December 31, 2003
Analysis of Billing
Associate Companies - Account 457
(In Thousands)
Direct Costs | Indirect Costs | Compensation | Total | |||||||||||
Name of Associate Company | Charged | Charged | For Use of Capital | Amount Billed | ||||||||||
457-1 | 457-2 | 457-3 | ||||||||||||
Kansas City Power & Light Company | $ | 28,662 | $ | 15,773 | $ | - | $ | 44,435 | ||||||
Home Service Solutions Inc. | 287 | 274 | - | 561 | ||||||||||
Worry Free Service, Inc. | 102 | 134 | - | 236 | ||||||||||
Innovative Energy Consultants Inc. | 48 | 17 | - | 65 | ||||||||||
Great Plains Power Incorporated | 144 | 328 | - | 472 | ||||||||||
Great Plains Energy Incorporated | 3,178 | 993 | - | 4,171 | ||||||||||
KLT Inc. (including Strategic Energy, L.L.C.) | 2,123 | 1,920 | - | 4,043 | ||||||||||
TOTAL | $ | 34,544 | $ | 19,439 | $ | - | $ | 53,983 | ||||||
23
ANNUAL REPORT OF GREAT PLAINS ENERGY SERVICES INCORPORATED
For the Year Ended December 31, 2003
Analysis of Billing
Nonassociate Companies Account 458
(In Thousands)
Instructions:
Provide a brief description of the services rendered to each nonassociate company:
Direct Costs | Indirect Costs | Compensation | Total | Excess or | Total | |||||||||||||||
Name of Nonassociate Company | Charged | Charged | For Use of Capital | Cost | Deficiency | Amount Billed | ||||||||||||||
458-1 | 458-2 | 458-3 | 458-4 | |||||||||||||||||
None | ||||||||||||||||||||
24
For the Year Ended December 31, 2003
Schedule XVI - Analysis
of Charges for Service Associate and Nonassociate Companies
(In Thousands)
Instructions:
Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules.
Associate Company Charges | Nonassociate Company Charges | Total Charges for Services | ||||||||||||||||||||||||||||||
Direct | Indirect | Direct | Indirect | Direct | Indirect | |||||||||||||||||||||||||||
Account | Description of Items | Cost | Cost | Total | Cost | Cost | Total | Cost | Cost | Total | ||||||||||||||||||||||
506 | Miscellaneous steam power operations | $ | 1,053 | $ | - | $ | 1,053 | $ | - | $ | - | $ | - | $ | 1,053 | $ | - | $ | 1,053 | |||||||||||||
507 | Steam power operations-rents | 232 | - | 232 | - | - | - | 232 | - | 232 | ||||||||||||||||||||||
546 | Production turbine operations | 16 | - | 16 | - | - | - | 16 | - | 16 | ||||||||||||||||||||||
557 | Production other expenses | 399 | - | 399 | - | - | - | 399 | - | 399 | ||||||||||||||||||||||
566 | Transmission operations misc. expense | 77 | - | 77 | - | - | - | 77 | - | 77 | ||||||||||||||||||||||
567 | Transmission operations-rents | 229 | - | 229 | - | - | - | 229 | - | 229 | ||||||||||||||||||||||
580 | Distribution operations | 1 | - | 1 | - | - | - | 1 | - | 1 | ||||||||||||||||||||||
583 | Distribution operations-overhead lines | 10 | - | 10 | - | - | - | 10 | - | 10 | ||||||||||||||||||||||
587 | Distribution operations-customer installations | 4 | - | 4 | - | - | - | 4 | - | 4 | ||||||||||||||||||||||
588 | Distribution maintenance miscellaneous exp | 1,206 | - | 1,206 | - | - | - | 1,206 | - | 1,206 | ||||||||||||||||||||||
589 | Distribution operations-rents | 752 | - | 752 | - | - | - | 752 | - | 752 | ||||||||||||||||||||||
591 | Distribution maintenance-structures | 175 | - | 175 | - | - | - | 175 | - | 175 | ||||||||||||||||||||||
901 | Customer accounts-supervision | 27 | - | 27 | - | - | - | 27 | - | 27 | ||||||||||||||||||||||
902 | Meter reading expense | 50 | - | 50 | - | - | - | 50 | - | 50 | ||||||||||||||||||||||
903 | Customer records and collection expense | 1,343 | - | 1,343 | - | - | - | 1,343 | - | 1,343 | ||||||||||||||||||||||
908 | Customer assistence expense | 47 | - | 47 | - | - | - | 47 | - | 47 | ||||||||||||||||||||||
912 | Sales expense | 3 | - | 3 | - | - | - | 3 | - | 3 | ||||||||||||||||||||||
920 | Salaries & wages | 12,563 | 6,072 | 18,635 | - | - | - | 12,563 | 6,072 | 18,635 | ||||||||||||||||||||||
921 | Office supplies & expenses | 1,598 | 1,856 | 3,454 | - | - | - | 1,598 | 1,856 | 3,454 | ||||||||||||||||||||||
922 | Administrative exp transferred-credit | 1,793 | 3,140 | 4,933 | - | - | - | 1,793 | 3,140 | 4,933 | ||||||||||||||||||||||
923 | Outside services employed | 1,380 | 1,927 | 3,307 | - | - | - | 1,380 | 1,927 | 3,307 | ||||||||||||||||||||||
924 | Property insurance | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||
925 | Injuries and damages | 615 | 197 | 812 | - | - | - | 615 | 197 | 812 | ||||||||||||||||||||||
926 | Employee pensions & benefits | 5,068 | 3,777 | 8,845 | - | - | - | 5,068 | 3,777 | 8,845 | ||||||||||||||||||||||
928 | Regulatory commission expense | 59 | - | 59 | - | - | - | 59 | - | 59 | ||||||||||||||||||||||
930.1 | General advertising expenses | 224 | 14 | 238 | - | - | - | 224 | 14 | 238 | ||||||||||||||||||||||
930.2 | Miscellaneous general expenses | 1,482 | 90 | 1,572 | - | - | - | 1,482 | 90 | 1,572 | ||||||||||||||||||||||
931 | Rents | 455 | 1,864 | 2,319 | - | - | - | 455 | 1,864 | 2,319 | ||||||||||||||||||||||
932 | Maintenance of structures & equipment | 1,208 | 426 | 1,634 | - | - | - | 1,208 | 426 | 1,634 | ||||||||||||||||||||||
933 | Transportation expense | 29 | 23 | 52 | - | - | - | 29 | 23 | 52 | ||||||||||||||||||||||
403 | Depreciation & amortization expense | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||
408 | Taxes other than income tax | 1,450 | - | 1,450 | - | - | - | 1,450 | - | 1,450 | ||||||||||||||||||||||
409 | Income tax | (166 | ) | - | (166 | ) | - | - | - | (166 | ) | - | (166 | ) | ||||||||||||||||||
410 | Provision for deferred income tax | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||
411 | Provison for deferred income taxes-credit | 166 | - | 166 | - | - | - | 166 | - | 166 | ||||||||||||||||||||||
411.5 | Investment tax credit | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||
417.1 | Nonutility operations | 115 | 3 | 118 | - | - | - | 115 | 3 | 118 | ||||||||||||||||||||||
419 | Interest and dividend income | (7 | ) | - | (7 | ) | - | - | - | (7 | ) | - | (7 | ) | ||||||||||||||||||
426.1 | Donations | 274 | 15 | 289 | - | - | - | 274 | 15 | 289 | ||||||||||||||||||||||
426.4 | Civic and political lobbying | 570 | 26 | 596 | - | - | - | 570 | 26 | 596 | ||||||||||||||||||||||
426.5 | Other deductions | 23 | 9 | 32 | - | - | - | 23 | 9 | 32 | ||||||||||||||||||||||
427 | Interest on long-term debt | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||
430 | Interest on debt to associated companies | 14 | - | 14 | - | - | - | 14 | - | 14 | ||||||||||||||||||||||
431 | Other interest expense | 7 | - | 7 | - | - | - | 7 | - | 7 | ||||||||||||||||||||||
TOTAL EXPENSE | 34,544 | 19,439 | 53,983 | - | - | - | 34,544 | 19,439 | 53,983 | |||||||||||||||||||||||
Compensation for Use of Equity Capital | ||||||||||||||||||||||||||||||||
430 | Interest on debt to associate companies | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||
TOTAL COST OF SERVICE | $ | 34,544 | $ | 19,439 | $ | 53,983 | $ | - | $ | - | $ | - | $ | 34,544 | $ | 19,439 | $ | 53,983 | ||||||||||||||
25
For the Year Ended December 31, 2003
Schedule XVII -
Schedule of Expense Distribution by Department or Service Function
(In Thousands)
Instruction:
Indicate each department or service function. (See Instruction 01-3 General Structure of Accounting System: Uniform System of Accounts).
Corporate | ||||||||||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||||||||
Account | Description of Items | Total | and | Public | Corporate | Corporate | Human | Support | Information | Financial | Admin. | Misc. | ||||||||||||||||||||||||||
Amount | Compliance | Affairs | Finance | Values | Resources | Services | Technology | Services | Services | Services | ||||||||||||||||||||||||||||
506 | Miscellaneous steam power operations | $ | 1,053 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 1,028 | $ | 25 | $ | - | $ | - | $ | - | |||||||||||||||
507 | Steam power operations-rents | 232 | - | - | - | - | - | 68 | 164 | - | - | - | ||||||||||||||||||||||||||
546 | Production turbine operations | 16 | 16 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
557 | Production other expenses | 399 | 208 | - | - | - | 4 | 1 | 162 | - | - | 24 | ||||||||||||||||||||||||||
566 | Transmission operations miscellaneous expense | 77 | 19 | - | - | - | - | 37 | 21 | - | - | - | ||||||||||||||||||||||||||
567 | Transmission operations-rents | 229 | - | - | - | - | - | 1 | 228 | - | - | - | ||||||||||||||||||||||||||
580 | Distribution operations | 1 | - | - | - | - | - | 1 | - | - | - | - | ||||||||||||||||||||||||||
583 | Distribution operations-overhead lines | 10 | - | - | - | - | - | - | 9 | - | - | 1 | ||||||||||||||||||||||||||
587 | Distribution operations-customer installations | 4 | - | - | - | - | - | - | 4 | - | - | - | ||||||||||||||||||||||||||
588 | Distribution maintenance miscellaneous expense | 1,206 | 45 | - | - | - | 8 | 694 | 459 | - | - | - | ||||||||||||||||||||||||||
589 | Distribution operations-rents | 752 | - | - | - | - | - | 32 | 720 | - | - | - | ||||||||||||||||||||||||||
591 | Distribution maintenance-structures | 175 | - | - | - | - | - | 175 | - | - | - | - | ||||||||||||||||||||||||||
901 | Customer accounts-supervision | 27 | - | - | 27 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
902 | Meter reading expense | 50 | - | - | - | - | - | - | 50 | - | - | |||||||||||||||||||||||||||
903 | Customer records and collection expense | 1,343 | - | - | 24 | - | - | 30 | 1,099 | 190 | - | - | ||||||||||||||||||||||||||
908 | Customer assistance expense | 47 | - | - | - | - | 47 | - | - | - | - | - | ||||||||||||||||||||||||||
912 | Sales expense | 3 | - | - | - | - | - | 3 | - | - | - | - | ||||||||||||||||||||||||||
920 | Salaries and wages | 18,635 | 3,885 | 795 | 3604 | 150 | 1,419 | 2,954 | 4,764 | 806 | 41 | 217 | ||||||||||||||||||||||||||
921 | Office supplies and expenses | 3,454 | 544 | 118 | 313 | 43 | 671 | 898 | 741 | 78 | 5 | 43 | ||||||||||||||||||||||||||
922 | Administrative expense transferred-credit | 4,933 | 567 | 29 | 588 | 11 | 114 | 1,421 | 2,016 | 126 | 7 | 54 | ||||||||||||||||||||||||||
923 | Outside services employed | 3,307 | 1,178 | 32 | 710 | 18 | 297 | 712 | 323 | 20 | 1 | 16 | ||||||||||||||||||||||||||
924 | Property insurance | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
925 | Injuries and damages | 812 | 43 | - | 171 | - | 380 | 37 | 95 | 6 | - | 80 | ||||||||||||||||||||||||||
926 | Employee pensions and benefits | 8,845 | 1,656 | 779 | 1447 | 56 | 838 | 1,475 | 2,156 | 322 | 14 | 102 | ||||||||||||||||||||||||||
928 | Regulatory commission expense | 59 | - | - | 1 | - | - | 58 | - | - | - | - | ||||||||||||||||||||||||||
930.1 | General advertising expense | 238 | 4 | 225 | 1 | - | 1 | 3 | 4 | - | - | - | ||||||||||||||||||||||||||
930.2 | Miscellaneous general expense | 1,572 | 448 | 699 | 344 | 1 | 47 | 11 | 9 | 10 | - | 3 | ||||||||||||||||||||||||||
931 | Rents | 2,319 | 397 | 60 | 235 | 13 | 75 | 451 | 1,008 | 49 | 4 | 27 | ||||||||||||||||||||||||||
932 | Maintenance of structures | 1,634 | 74 | 4 | 46 | 3 | 12 | 1,162 | 315 | 10 | 1 | 7 | ||||||||||||||||||||||||||
933 | Transportation expense | 52 | 9 | 6 | 3 | 1 | - | 11 | 22 | - | - | - | ||||||||||||||||||||||||||
403 | Depreciation and amortization expense | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
408 | Taxes other than income taxes | 1,450 | 289 | 15 | 175 | 5 | 52 | 301 | 539 | 34 | 2 | 38 | ||||||||||||||||||||||||||
409 | Income taxes | (166 | ) | - | - | - | - | - | - | - | - | - | (166 | ) | ||||||||||||||||||||||||
410 | Provision for deferred income taxes | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
411 | Provision for deferred income taxes-credit | 166 | - | - | - | - | - | - | - | - | - | 166 | ||||||||||||||||||||||||||
411.5 | Investment tax credit | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
417.1 | Nonutility operations | 118 | - | - | 26 | - | - | 1 | 1 | - | - | 90 | ||||||||||||||||||||||||||
419 | Interest and dividend income | (7 | ) | - | - | - | - | - | - | - | - | - | (7 | ) | ||||||||||||||||||||||||
426.1 | Donations | 289 | 6 | 272 | 2 | - | - | 4 | 4 | - | - | 1 | ||||||||||||||||||||||||||
426.4 | Civic and political lobbying | 596 | 5 | 570 | 3 | - | 1 | 6 | 10 | - | - | 1 | ||||||||||||||||||||||||||
426.5 | Other deductions | 32 | 5 | 25 | - | - | - | 1 | - | - | - | 1 | ||||||||||||||||||||||||||
427 | Interest on long-term debt | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
430 | Interest on debt to associate companies | 14 | - | - | - | - | - | - | - | - | - | 14 | ||||||||||||||||||||||||||
431 | Other interest expense | 7 | - | - | - | - | - | - | - | - | - | 7 | ||||||||||||||||||||||||||
TOTAL EXPENSES | $ | 53,983 | $ | 9,398 | $ | 3,629 | $ | 7,720 | $ | 301 | $ | 3,966 | $ | 11,576 | $ | 14,948 | $ | 1,651 | $ | 75 | $ | 719 | ||||||||||||||||
26
For the Year Ended December 31, 2003
Service Function
Analysis of Salaries - Account 920
(In Thousands)
Departmental Salary Expense | |||||||||||||||||
Included in Amounts Billed to | Number of | ||||||||||||||||
Name of Department | Total | Parent | Other | Non | Personnel | ||||||||||||
Indicate each department or service function | Amount | Company | Associates | Associates | End of Year (1) | ||||||||||||
Corporate development and compliance | $ | 3,886 | $ | 491 | $ | 3,395 | $ | - | 63 | ||||||||
Public affairs | 796 | 196 | 600 | - | 22 | ||||||||||||
Corporate finance | 3,604 | 340 | 3,264 | - | 22 | ||||||||||||
Corporate values | 150 | 1 | 149 | - | 8 | ||||||||||||
Human resources | 1,420 | 8 | 1,412 | - | 26 | ||||||||||||
Support services | 2,954 | 129 | 2,825 | - | 50 | ||||||||||||
Information technology | 4,763 | 82 | 4,681 | - | 132 | ||||||||||||
Financial services | 804 | 20 | 784 | - | 66 | ||||||||||||
Administrative services (2) | 41 | 2 | 39 | - | - | ||||||||||||
Miscellaneous services (2) | 217 | 5 | 212 | - | - | ||||||||||||
TOTAL | $ | 18,635 | $ | 1,274 | $ | 17,361 | $ | - | 389 | ||||||||
(1)
Not rounded to thousands
(2) Labor in administrative services and miscellaneous
services is labor charged to work orders by employees in all other departments.
27
For the Year Ended December 31, 2003
Outside Services
Employed - Account 923
(In Thousands)
Instructions:
Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000 only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.
Relationship | |||||||||||
"A" - Associate | |||||||||||
"NA"- Non | |||||||||||
From Whom Purchased | Address | Associate | Amount | ||||||||
Outside Service - Security | |||||||||||
Allied Security Incorporated | NA | $ | 430 | ||||||||
Other (41) | NA | 20 | |||||||||
SUB-TOTAL | 450 | ||||||||||
Outside Service - Auditing & Tax | |||||||||||
Deloitte & Touche LLP | NA | 328 | |||||||||
Other (3) | NA | 5 | |||||||||
SUB-TOTAL | 333 | ||||||||||
Outside Service - Financial | |||||||||||
William Blair & Company | NA | 311 | |||||||||
Standard & Poor's | NA | 7 | |||||||||
SUB-TOTAL | 318 | ||||||||||
Outside Service - Risk Management | |||||||||||
Morrow Management Services, L.L.C. | NA | 216 | |||||||||
SUB-TOTAL | 216 | ||||||||||
Outside Service - Computer | |||||||||||
Pintlar Technologies | NA | 179 | |||||||||
Institute for Management Studies | NA | 109 | |||||||||
Symantec Corporation | NA | 38 | |||||||||
Meta Group | NA | 27 | |||||||||
Other - Computer (11) | NA | 70 | |||||||||
SUB-TOTAL | 423 | ||||||||||
Outside Service - Legal | |||||||||||
Spencer, Fane, Britt & Browne | NA | 112 | |||||||||
Bioff, Finucane, Coffey & Holland, L.L.P. | NA | 37 | |||||||||
Polsinelli, Shalton & Welte, P.C. | NA | 31 | |||||||||
Skadden, Arps, Slate, Meagher | NA | 40 | |||||||||
Other - Legal (10) | NA | 42 | |||||||||
SUB-TOTAL | 262 | ||||||||||
28
Outside Service - Consulting | |||||||||||
Bridge Strategy Group | NA | 382 | |||||||||
Gould, Nate | NA | 35 | |||||||||
Orman, Gregory J | NA | 51 | |||||||||
Other Consulting (10) | NA | 47 | |||||||||
SUB-TOTAL | 515 | ||||||||||
Outside Service - Human Resources | |||||||||||
Spencer Stuart | NA | 342 | |||||||||
Kelly Services, Inc. | NA | 82 | |||||||||
J. Howard & Associates, Inc. | NA | 32 | |||||||||
MarketSphere Consulting, LLC | NA | 40 | |||||||||
T.I.P. Research Inc. | NA | 50 | |||||||||
Towers Perrin | NA | 36 | |||||||||
Other - Human Resources (24) | NA | 147 | |||||||||
SUB-TOTAL | 729 | ||||||||||
Outside Services - Facility Services | |||||||||||
Victor G. Construction Co. | NA | 29 | |||||||||
Other - Facility Services (8) | NA | 32 | |||||||||
SUB-TOTAL | 61 | ||||||||||
TOTAL | $ | 3,307 | |||||||||
29
For the Year Ended December 31, 2003
Employee Pensions and
Benefits - Account 926
(In Thousands)
Instructions:
Provide a listing of each pension
plan and benefit program provided by the service company. Such
listing should be limited
to $25,000.
Description | Amount | ||||
Educational assistance | $ | 79 | |||
Employee assistance | 39 | ||||
Employee publications and other communications | 160 | ||||
Dental insurance | 322 | ||||
Medical | 2,140 | ||||
Life and accident insurance | 28 | ||||
Long-term disability insurance | 86 | ||||
Other post retirement benefits | 1,342 | ||||
Pension plan | 2,033 | ||||
Savings investment plan | 716 | ||||
Severance pay | 2,177 | ||||
Transfer to construction | (318 | ) | |||
Other | 41 | ||||
TOTAL | $ | 8,845 | |||
30
For the Year Ended December 31, 2003
General Advertising
Expenses - Account 930.1
(In Thousands)
Instructions:
Provide a listing of the amount included in Account 930.1, General Advertising Expenses, classifying the items according to the nature of the advertising and as defined in the account definition. If a particular class includes an amount in excess of $3,000 applicable to a single payee, show separately the name of the payee and the aggregate amount applicable thereto.
Description | Name of Payee | Amount | ||||||
Advertising in newspapers, bill inserts, internet, company | ||||||||
store logo merchandise, sponsorships of service | ||||||||
territory events, labor for corporate communications | American Royal Association | $ | 15 | |||||
and community relations | Bakers Man Productions, LLC | 6 | ||||||
Elcom | 16 | |||||||
Tee Time | 5 | |||||||
Eweb Translator Inc | 7 | |||||||
Xpedx | 7 | |||||||
Other (43) | 47 | |||||||
Payroll | 135 | |||||||
TOTAL | $ | 238 | ||||||
31
For the Year Ended December 31, 2003
Miscellaneous General
Expenses - Account 930.2
(In Thousands)
Instructions:
Provide a listing of the amount included in Account 930.2, Miscellaneous General Expenses, classifying such expenses according to their nature. Payments and expenses permitted by Section 321 (b)(2) of the Federal Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C. §441(b)(2)) shall be separately classified.
Description | Amount | ||||
Board of director's fees and expenses | $ | 318 | |||
Company association dues | 351 | ||||
Investor relations and communications | 663 | ||||
Other | 240 | ||||
TOTAL | $ | 1,572 | |||
32
For the Year Ended December 31, 2003
Rents - Account 931
(In Thousands)
Instructions:
Provide a listing of the amount included in Account 931, Rents, classifying such expenses by major groupings of property, as defined in the account definition of the Uniform System of Accounts.
Type of Property | Amount | ||||
General office equipment | $ | 1,717 | |||
Computer equipment | 602 | ||||
TOTAL | $ | 2,319 | |||
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For the Year Ended December 31, 2003
Taxes Other Than Income
Taxes - Account 408
(In Thousands)
Instructions:
Provide an analysis of Account 408, Taxes Other Than Income Taxes. Separate the analysis into two groups: (1) other than U. S. Government taxes, and (2) U.S. Government taxes. Specify each of the various kinds of taxes and show the amounts thereof. Provide a subtotal for each class of tax.
Kinds of Tax | Amount | ||||
Other than U. S. Government | |||||
Miscellaneous occupational taxes | $ | 39 | |||
State unemployment taxes | 2 | ||||
SUB-TOTAL | 41 | ||||
U. S. Government | |||||
F.I.C.A taxes | 1,408 | ||||
Federal unemployment | 1 | ||||
SUB-TOTAL | 1,409 | ||||
TOTAL | $ | 1,450 | |||
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For the Year Ended December 31, 2003
Donations - Account
426.1
(In Thousands)
Instructions:
Provide a listing of the amount included in Account 426.1, Donations, classifying the expenses by its purpose. The aggregate number and amount of all items of less that $3,000 may be shown in lieu of details.
Name of Recipient | Purpose of Donation | Amount | ||||||
Highwoods Realty Limited Partnership | Community support | $ | 100 | |||||
Greater Kansas City Community Foundation | Community support | 50 | ||||||
Mid America Assistance Coalition | Community support | 20 | ||||||
Kansas City Public Television | Community support | 5 | ||||||
Kansas City Neighborhood Alliance | Community support | 4 | ||||||
Other community support (4) | Community support | 4 | ||||||
Other-payroll | Community support | 73 | ||||||
Overland Park Convention Center | United Way | 4 | ||||||
Other United Way (3) | United Way | 3 | ||||||
Spencer, Fane, Britt & Browne | Low income support | 4 | ||||||
Central School Fund | Educational support | 5 | ||||||
Metropolitan Alliance for Adult Learning | Educational support | 5 | ||||||
Shawnee Indian Mission | Educational support | 5 | ||||||
Other education support (4) | Educational support | 3 | ||||||
Other-Youth support (4) | Youth support | 4 | ||||||
TOTAL | $ | 289 | ||||||
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For the Year Ended December 31, 2003
Other Deductions -
Account 426.5
(In Thousands)
Instructions:
Provide a listing of the amount included in Account 426.5, Other Deductions, classifying such expenses according to their nature.
Description | Name of Payee | Amount | ||||||
Miscellaneous community activities and dues | Various | $ | 32 | |||||
TOTAL | $ | 32 | ||||||
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For the Year Ended December 31, 2003
Schedule XVIII Notes to Statement of Income
Instructions:
The space below is provided for important notes regarding the statement of income or any account thereof. Furnish particulars as to any significant increases in services rendered or expenses incurred during the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference.
See Schedule XIV Notes to Financial Statements
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Organizational Chart
December 31, 2003
Great Plains Energy Incorporated*
President and Chief Executive Officer William H. Downey
Executive Vice President Corporate And Shared Services and Corporate Secretary Jeanie S. Latz
Senior Vice President Finance, Chief Financial Officer and Treasurer Andrea F. Bielsker
General Counsel William G. Riggins
Vice President Public Affairs Brenda Nolte
Vice President Human Resources Andrew B. Stroud, Jr. (1)
Controller Lori A. Wright
* GPES is a statutory closed corporation without a board of directors.
(1) Mr. Stroud left the company in February 2004.
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ANNUAL REPORT OF GREAT PLAINS ENERGY SERVICES INCORPORATED
For the Year Ended December 31, 2003
Methods of Allocation
Construction Work in Progress and Other Balance Sheet Expenditures-All costs incurred by GPES for the benefit of client companies and charged to a construction, undistributed stores expense or clearing account, must be billed to the client company. These costs are billed to the client companies based on the project ID. For example, a charge to a construction work in progress account with a project belonging to the power division will be billed to KCP&L Power Division.
Revenues and Expenses-Revenues and expenses are classified into the following four basic groups for allocation purposes divisional overheads, service company support, direct billings and indirect billings.
1. | Divisional Overheads-These are the miscellaneous costs incurred to provide the infrastructure support to various departments within GPES. These costs include such things as occupancy costs such as building lease costs or depreciation, and general departmental costs such as office supplies used to support GPES. These charges are allocated over the current period direct labor charges of the services provided. For example, the overhead costs of the accounting division are allocated over the direct labor that is charged by accounting personnel to service company support, direct billings and indirect billings. |
2. | Service Company Support-These are costs incurred by GPES to support its own operations. For example, payroll service for GPES personnel are allocated over the current period direct labor charges for direct billings. |
3. | Direct Billings-These are costs incurred by GPES to provide specific services to a specific client company and include the divisional overheads and service company support allocated from above. These costs are billed to the client company based on the owner of the project charged. |
4. | Indirect Billings-These are cost incurred by GPES to provide specific services such as payroll where multiple client companies benefit. These costs will be billed to client companies based on predefined indirect allocation factors. For example, the cost to provide payroll services to a client will be billed based on headcount. The indirect factors are listed below. |
Indirect Billing Factors:
Head Count Ratio
A ratio where the numerator is the headcount of a client and the denominator is the headcount of all clients. These ratios are revised quarterly, based on figures as of March 31, June 30, September 30 and December 31. |
Purchase Order Ratio
A ratio where the numerator is the number of purchase order lines (of selected PO types) created for the client and the denominator is the total combined number of purchase order lines created for all clients. These ratios are developed monthly, using the current month data. |
Invoice Ratio
A ratio where the numerator is the number of voucher lines (of selected types of vouchers) entered for the client and the denominator is the total combined number of voucher lines entered for all clients. These ratios are developed monthly, using the current month data. |
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Square Footage Ratio
A ratio where the numerator is the actual square footage of a client and the denominator is the total square footage of the shared facility. The ratio is revised as necessary. |
PC Ratio
A ratio where the numerator is the number of personal computers assigned to a client and the denominator is the total number of personal computers assigned to all clients. These ratios are revised quarterly, based on figures as of March 31, June 30, September 30 and December 31. |
Total Billing Ratio
A ratio where the numerator is the actual expense charged to a client by the Service Company and the denominator is the total actual expenses charged to all clients by the Service Company. This ratio is revised monthly based upon prior month data. |
Capitalization Ratio
A ratio where the numerator is the total capitalization (total common stockholders equity, preferred stock, and long-term debt) of the Service Company or client, and the denominator is the total combined capitalization (total common stockholders equity, preferred stock, and long-term debt) of the Service Company and clients. This ratio is revised quarterly based upon figures as of March 31, June 30, September 30 and December 31. |
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Annual Statement of Compensation for Use of Capital Billed
Not Applicable
Great Plains Energy Services does not bill its associate client companies for compensation of equity capital.
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Signature Clause
Pursuant to the requirements of the Public Utility Holding Company Act of 1935 and the rules and regulations of the Securities and Exchange Commission issued thereunder, the undersigned company has duly caused this report to be signed on its behalf by the undersigned officer thereunto duly authorized.
Great Plains Energy Services Incorporated | |||
(Name of Reporting Company) | |||
Lori A. Wright, Controller | |||
(Printed Name and Title of Signing Officer) |
By: /s/ Lori A. Wright
Date:
April 29, 2004
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