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Unassociated Document

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 8-K
 
Current Report
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
 
Date of Report (Date of earliest event reported):  August 1, 2007
 

 
Commission
File Number
  
 
Registrant, State of Incorporation,
Address and Telephone Number
  
I.R.S. Employer
Identification
Number
         
         
001-32206
  
GREAT PLAINS ENERGY INCORPORATED
  
43-1916803
   
(A Missouri Corporation)
    
   
1201 Walnut Street
    
   
Kansas City, Missouri  64106
    
   
(816) 556-2200
    
         
   
NOT APPLICABLE
    
(Former name or former address,
if changed since last report)
         
         
000-51873
  
KANSAS CITY POWER & LIGHT COMPANY
  
44-0308720
   
(A Missouri Corporation)
    
   
1201 Walnut Street
    
   
Kansas City, Missouri  64106
    
   
(816) 556-2200
    
         
   
NOT APPLICABLE
    
   
(Former name or former address,
if changed since last report)
    

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[  ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
 
(17 CFR 240.14d-2(b))
   
[  ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
Great Plains Energy Incorporated (Great Plains Energy) and Kansas City Power & Light Company (KCP&L) (the Registrants) are separately furnishing this combined Current Report on Form 8-K (Report).  Information contained herein relating to an individual Registrant is furnished by such registrant on its own behalf.  Each Registrant makes representations only as to information relating to itself.

Item 2.02
Results of Operations and Financial Condition

On August 1, 2007, Great Plains Energy issued a press release announcing second quarter 2007 earnings information and revised 2007 earnings guidance.  A copy of the press release is attached to this report on Form 8-K as Exhibit 99.

The press release contains information regarding Great Plains Energy’s reportable segments, including the KCP&L reportable segment.  Accordingly, this report is also being furnished on behalf of KCP&L.

The information, including the exhibit attached hereto, in this report is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 
Item 9.01
Financial Statements and Exhibits
   
(d) Exhibit No.
  
   
99
Press release issued by Great Plains Energy Incorporated on August 1, 2007.




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
GREAT PLAINS ENERGY INCORPORATED
   
 
/s/ Terry Bassham
 
Terry Bassham
 
Executive Vice President- Finance & Strategic Development and Chief Financial Officer

 
KANSAS CITY POWER & LIGHT COMPANY
   
 
/s/ Terry Bassham
 
Terry Bassham
 
Chief Financial Officer


Date: August 1, 2007


Unassociated Document
 
 
 
 
Exhibit 99

    Media Contact:       Matt Tidwell
                                    816-556-2902

    Investor Contact:     Todd Allen
                                    816-556-2083
 

GREAT PLAINS ENERGY ANNOUNCES SECOND QUARTER FINANCIAL RESULTS
Adjusting 2007 Core Earnings Guidance

Kansas City, MO, August 1, 2007– Great Plains Energy Incorporated (NYSE:GXP) today announced second quarter 2007 earnings of $25.1 million or $0.29 per share on more shares outstanding, compared to $38.0 million or $0.49 per share in the second quarter of 2006.  Core earnings were $36.3 million or $0.42 per share on more shares outstanding, compared to second quarter 2006 core earnings of $42.5 million or $0.55 per share.  Reported earnings are reconciled to core earnings in attachments B and C.

“On May 9th, KCP&L experienced a pipe rupture at Iatan 1 which resulted in two fatalities.  In response, we took a great deal of care to ensure that all of our generating units were safe to operate.  The repair and precautionary work on Iatan 1 resulted in an 18-day outage,” said Chairman and CEO Mike Chesser.

“We continued in the second quarter, however, to make great progress on our long-term plan.  During the quarter we completed the LaCygne 1 environmental upgrades on-time and under budget, continued the Iatan 2 construction on schedule, and continued to progress with the approval process and integration planning with Aquila.  Finally, we received news that we received the 2007 Edison Award for innovation and leadership from the Edison Electric Institute,” continued Chesser.

Compared to the second quarter a year ago, core earnings in the second quarter of 2007 were reduced by higher purchased power expense, primarily due to the Iatan outage, unfavorable weather, and higher operating expenses at Kansas City Power & Light (KCP&L).  These impacts were partially offset by higher wholesale sales, the 2007 rate increases and customer growth.  While delivered volumes at Strategic Energy increased, core earnings were down due to lower average retail gross margins per MWh and higher bad debt expense compared to the second quarter of 2006.  Also, dilution from the FELINE PRIDES issuance in February and the May 2006 common stock issuance reduced Great Plains Energy’s core earnings per share by $0.05 compared to the second quarter last year.

For the first six months of 2007, reported earnings were $48.1 million or $0.57 per share on more shares outstanding, compared to $36.5 million or $0.48 per share for the same period last year.  Core earnings for the first six months were $25.3 million or $0.30 per share on more shares outstanding, compared to $67.9 million or $0.89 per share last year.  The decrease in year to date core earnings was driven primarily by plant outages, as well as a first quarter resettlement at Strategic Energy.

Based on the year to date operating results at KCP&L, Great Plains Energy is adjusting its full year 2007 core earnings guidance to a range of $1.60 to $1.75 per share, down from the previous range of $1.65 to $1.85 (see attachment G).
 
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Kansas City Power & Light

KCP&L reported earnings of $36.5 million or $0.43 per share in the second quarter of 2007, compared to $36.6 million or $0.48 per share last year.  Core earnings were $36.5 million or $0.43 per share, compared to second quarter 2006 core earnings of $39.7 million or $0.52 per share.  The decrease in core earnings compared to the second quarter last year was attributable to higher purchased power expense resulting from unplanned outages, higher fuel prices, and higher depreciation and pension expense.

Revenues for the second quarter of 2007 were $319.1 million, compared to $290.9 million for the second quarter last year.  Retail revenue increased by $15.0 million to $256.8 million compared to last year due primarily to rate increases and customer growth, offset somewhat by weather that was 29% cooler than the second quarter of 2006.  Wholesale revenues in the second quarter 2007 also increased to $58.5 million, up $12.3 million compared to the second quarter last year.  The increase in wholesale revenues was driven by a 26% increase in wholesale volumes, partially offset by slightly lower wholesale prices.

During the second quarter, purchased power expense increased 165% primarily due to unscheduled outages at baseload generating units.  Operating expenses in the second quarter were also higher than last year due to higher fuel prices, increased depreciation expense, and the increased level of pension costs in KCP&L’s rates effective January 1, 2007.  These items offset the benefit of higher retail and wholesale revenues.

Year to date June 30, 2007, KCP&L’s reported earnings were $38.6 million or $0.46 per share, compared to $49.6 million or $0.65 per share in the first half of 2006.  Core earnings year to date were $38.6 million or $0.46 per share, compared to $58.5 million or $0.77 per share last year.  The year over year change in core earnings during the first half of 2007 was primarily driven by outages at baseload generating units, and higher operating expenses.

Strategic Energy

Strategic Energy reported earnings were a loss of $6.5 million or $0.08 per share in the second quarter, compared to earnings of $4.2 million or $0.05 per share in the same period last year.  Core earnings, which exclude net mark-to-market gains and losses on energy contracts, were $3.9 million or $0.04 per share, compared to $5.4 million or $0.07 per share in the second quarter of 2006.  The decrease in core earnings compared to last year was driven primarily by lower average retail gross margins per MWh and higher bad debt expense, partially offset by lower employee-related expenses.

During the second quarter, revenue increased 38% to $486 million driven by higher delivered volumes that rose to 5.1 million MWhs, up 1.2 million MWhs from last year.  Total backlog at Strategic Energy continued to increase in the second quarter of 2007, growing 42% to 36.7 million MWhs compared to the same period last year.  New sales volume also rose to 8.1 million MWhs in the second quarter of 2007, compared to 7.6 million MWhs in the same period in 2006.  Delivered volume during the first six months, combined with 2007 backlog, totaled 19.5 million MWhs at the end of the second quarter, compared to 17.2 million MWhs at the end of first quarter.

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Average retail gross margin per MWh in the second quarter of 2007 was $1.03.  Excluding net mark-to-market losses on energy contracts, average retail gross margin per MWh was $4.49 in the second quarter of 2007 compared to $5.84 last year.  Average contract duration of 15 months in the second quarter of 2007 was down slightly compared to 16 months in the same quarter last year and 18 months reported in the first quarter of 2007.

Year to date June 30, 2007, Strategic Energy’s reported earnings were $20.6 million or $0.24 per share, compared to a loss of $6.7 million or $0.09 per share in the first half of 2006.  Core earnings year to date were a loss of $3.0 million or $0.04 per share, compared to core earnings of $15.6 million or $0.20 per share last year.  The year over year decrease in core earnings during the first half of 2007 was primarily attributable to lower gross margins per MWh at Strategic Energy due to small customer attrition and a resettlement in the first quarter, as well as higher bad debt expense.

Other

In the second quarter of 2007, the “other” category reported earnings were a loss of $4.9 million or $0.06 per share, compared to a loss of $2.8 million or $0.04 per share last year.  Core earnings were a loss of $4.1 million or $0.05 per share, compared to a loss of $2.6 million or $0.04 per share in the second quarter of 2006.  The greater core earnings loss in the “other” category is primarily attributable to a decline in available tax credits from affordable housing investments and overall higher expenses at the holding company, including $1.4 million of labor expenses related to the Aquila transaction that would otherwise be reflected in the KCP&L segment.  Year to date June 30, 2007, the “other” category loss was $11.1 million or $0.13 per share on a reported basis and $10.3 million or $0.12 per share on a core earnings basis.  This compares to a loss of $6.4 million or $0.08 per share on a reported basis and $6.2 million or $0.08 per share on a core earnings basis in the first six months of 2006.  Year to date June 30, 2007, includes $2.1 million of labor expenses related to the Aquila transaction.

Non-GAAP Financial Measure
Core earnings is a non-GAAP financial measure that differs from GAAP earnings because it excludes the effects of certain unusual items and mark-to-market gains and losses on energy contracts.  Great Plains Energy believes core earnings provides to investors a meaningful indicator of its results that is comparable among periods because it excludes the effects of items that may not be indicative of Great Plains Energy’s prospective earnings potential.  Core earnings is used internally to measure performance against budget and in reports for management and the Board of Directors.  Investors should note that this non-GAAP measure involves judgments by management, including whether an item is classified as an unusual item, and Great Plains Energy’s definition of core earnings may differ from similar terms used by other companies.  The impact of these items could be material to operating results presented in accordance with GAAP.  Great Plains Energy is unable to reconcile core earnings guidance to GAAP earnings per share because it does not predict the future impact of unusual items and mark-to-market gains or losses on energy contracts.

Great Plains Energy Incorporated (NYSE:GXP) headquartered in Kansas City, MO, is the holding company for Kansas City Power & Light Company, a leading regulated provider of electricity in the Midwest, and Strategic Energy L.L.C., a competitive electricity supplier.  The Company's web site is www.greatplainsenergy.com.

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Information Concerning Forward-Looking Statements -- Statements made in this release that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made.  Forward-looking statements include, but are not limited to, statements regarding projected delivered volumes and margins, the outcome of regulatory proceedings, cost estimates of the comprehensive energy plan and other matters affecting future operations.  In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Great Plains Energy is providing a number of important factors that could cause actual results to differ materially from the provided forward-looking information.  These important factors include: future economic conditions in the regional, national and international markets, including but not limited to regional and national wholesale electricity markets; market perception of the energy industry, Great Plains Energy and KCP&L; changes in business strategy, operations or development plans; effects of current or proposed state and federal legislative and regulatory actions or developments, including, but not limited to, deregulation, re-regulation and restructuring of the electric utility industry; decisions of regulators regarding rates KCP&L can charge for electricity; adverse changes in applicable laws, regulations, rules, principles or practices governing tax, accounting and environmental matters including, but not limited to, air and water quality; financial market conditions and performance including, but not limited to, changes in interest rates and in availability and cost of capital and the effects on pension plan assets and costs; credit ratings; inflation rates; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of terrorist acts; increased competition including, but not limited to, retail choice in the electric utility industry and the entry of new competitors; ability to carry out marketing and sales plans; weather conditions including weather-related damage; cost, availability, quality and deliverability of fuel; ability to achieve generation planning goals and the occurrence and duration of unplanned generation outages; delays in the anticipated in-service dates and cost increases of additional generating capacity; nuclear operations; ability to enter new markets successfully and capitalize on growth opportunities in non-regulated businesses and the effects of competition; workforce risks including compensation and benefits costs; performance of projects undertaken by non-regulated businesses and the success of efforts to invest in and develop new opportunities; the ability to successfully complete merger, acquisitions or divestiture plans (including the acquisition of Aquila, Inc., and Aquila’s sale of assets to Black Hills Corporation); and other risks and uncertainties.  Other risk factors are detailed from time to time in Great Plains Energy’s most recent quarterly report on Form 10-Q or annual report on Form 10-K filed with the Securities and Exchange Commission.  This list of factors is not all-inclusive because it is not possible to predict all factors.




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Attachment A
 
 
Consolidated Statements of Income
  
(Unaudited)
  
                         
   
Three Months Ended
    
Year to Date
  
   
June 30
    
June 30
  
         
As Adjusted
          
As Adjusted
  
   
2007
    
2006
    
2007
    
2006
  
Operating Revenues
 
  
(thousands, except per share amounts)
  
Electric revenues - KCP&L
  
$
319,143
    
$
290,891
    
$
574,795
    
$
531,281
  
Electric revenues - Strategic Energy
 
    
485,002
      
350,506
      
892,987
      
668,518
  
Other revenues
    
483
      
707
      
1,122
      
1,490
  
Total
    
804,628
      
642,104
      
1,468,904
      
1,201,289
  
Operating Expenses
 
                                
Fuel
    
57,952
      
55,297
      
110,616
      
101,797
  
Purchased power - KCP&L
 
    
22,751
      
8,570
      
39,106
      
13,687
  
Purchased power - Strategic Energy
 
    
479,791
      
329,347
      
821,349
      
655,105
  
Skill set realignment costs
 
    
-
      
5,123
      
-
      
14,516
  
Operating expenses - KCP&L
 
    
74,020
      
64,810
      
147,661
      
127,240
  
Selling, general and administrative - non-regulated
 
    
19,963
      
14,842
      
42,678
      
28,519
  
Maintenance
    
23,145
      
24,548
      
52,979
      
46,507
  
Depreciation and amortization
 
    
45,819
      
39,250
      
90,861
      
78,196
  
General taxes
    
26,909
      
27,764
      
54,781
      
55,408
  
(Gain) loss on property
 
    
8
       (696 )    
11
       (597 )
Other
    
2
      
-
      
156
      
10
  
Total
    
750,360
      
568,855
      
1,360,198
      
1,120,388
  
Operating income
 
    
54,268
      
73,249
      
108,706
      
80,901
  
Non-operating income
 
    
2,100
      
3,904
      
6,873
      
6,889
  
Non-operating expenses
 
     (946 )     (1,311 )     (3,649 )     (3,452 )
Interest charges
     (17,914 )     (17,816 )     (39,613 )     (35,139 )
Income before income taxes and loss from equity investments
 
    
37,508
      
58,026
      
72,317
      
49,199
  
Income taxes
     (11,564 )     (19,301 )     (22,628 )     (11,291 )
Loss from equity investments, net of income taxes
     (350 )     (289 )     (729 )     (579 )
Net income
    
25,594
      
38,436
      
48,960
      
37,329
  
Preferred stock dividend requirements
    
411
      
412
      
823
      
823
  
Earnings available for common shareholders
  
$
25,183
    
$
38,024
    
$
48,137
    
$
36,506
  
                                 
Average number of common shares outstanding
 
    
85,556
      
76,997
      
84,192
      
75,834
  
                                 
Basic and diluted earnings per common share
 
  
$
0.29
    
$
0.49
    
$
0.57
    
$
0.48
  
                                 
Cash dividends per common share
  
$
0.415
    
$
0.415
    
$
0.83
    
$
0.83
  

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Attachment B
 
 
 
Consolidated Earnings and Earnings Per Share
 
  
Three Months Ended June 30
  
(Unaudited)
  
             
               
Earnings per Great
 
  
   
Earnings
    
Plains Energy Share
  
         
As Adjusted 
 
        
As Adjusted 
 
   
2007 
  
2006 
  
2007 
  
2006 
   
(millions)
              
KCP&L
  
$
36.5
    
$
36.6
    
$
0.43
    
$
0.48
  
Strategic Energy
 
     (6.5 )    
4.2
       (0.08 )    
0.05
  
Other
     (4.4 )     (2.4 )     (0.05 )     (0.03 )
Net income
    
25.6
      
38.4
      
0.30
      
0.50
  
Preferred dividends
     (0.5 )     (0.4 )     (0.01 )     (0.01 )
Earnings available for common shareholders 
$
25.1
    
$
38.0
    
$
0.29
    
$
0.49
  
                                 
Reconciliation of GAAP to Non-GAAP
                                
Earnings available for common shareholders
 
  
$
25.1
    
$
38.0
    
$
0.29
    
$
0.49
  
Reconciling items
 
                                
KCP&L - skill set realignment costs
 
    
-
      
3.1
      
-
      
0.04
  
Strategic Energy - mark-to-market impacts 
 
                              
from energy contracts
 
    
10.4
      
1.2
      
0.12
      
0.02
  
Other - merger transition non-labor costs
 
    
0.8
      
-
      
0.01
      
-
  
Other - skill set realignment costs
    
-
      
0.2
      
-
      
-
  
Core earnings
  
$
36.3
    
$
42.5
    
$
0.42
    
$
0.55
  
                                 
Core earnings
 
                                
KCP&L
  
$
36.5
    
$
39.7
    
$
0.43
    
$
0.52
  
Strategic Energy
 
    
3.9
      
5.4
      
0.04
      
0.07
  
Other
     (4.1 )     (2.6 )     (0.05 )     (0.04 )
Core earnings
  
$
36.3
    
$
42.5
    
$
0.42
    
$
0.55
  



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Attachment C
 
 
                         
GREAT PLAINS ENERGY
  
Consolidated Earnings and Earnings Per Share
 
  
Year to Date June 30
  
(Unaudited)
  
             
               
Earnings per Great
 
  
   
Earnings
    
Plains Energy Share
  
         
As Adjusted
 
          
As Adjusted
 
  
   
2007
    
2006
    
2007
    
2006
  
   
(millions)
              
KCP&L
  
$
38.6
    
$
49.6
    
$
0.46
    
$
0.65
  
Strategic Energy
 
    
20.6
       (6.7 )    
0.24
       (0.09 )
Other
     (10.2 )     (5.6 )     (0.12 )     (0.07 )
Net income
    
49.0
      
37.3
      
0.58
      
0.49
  
Preferred dividends
     (0.9 )     (0.8 )     (0.01 )     (0.01 )
Earnings available for common shareholders 
$
48.1
    
$
36.5
    
$
0.57
    
$
0.48
  
                                 
Reconciliation of GAAP to Non-GAAP
                                
Earnings available for common shareholders
 
  
$
48.1
    
$
36.5
    
$
0.57
    
$
0.48
  
Reconciling items
 
                                
KCP&L - skill set realignment costs
 
    
-
      
8.9
      
-
      
0.12
  
Strategic Energy - mark-to-market impacts 
 
                              
from energy contracts
 
     (23.6 )    
22.3
       (0.28 )    
0.29
  
Other - merger transition non-labor costs
 
    
0.8
      
-
      
0.01
      
-
  
Other - skill set realignment costs
    
-
      
0.2
      
-
      
-
  
Core earnings
  
$
25.3
    
$
67.9
    
$
0.30
    
$
0.89
  
                                 
Core earnings
 
                                
KCP&L
  
$
38.6
    
$
58.5
    
$
0.46
    
$
0.77
  
Strategic Energy
 
     (3.0 )    
15.6
       (0.04 )    
0.20
  
Other
     (10.3 )     (6.2 )     (0.12 )     (0.08 )
Core earnings
  
$
25.3
    
$
67.9
    
$
0.30
    
$
0.89
  

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Attachment D
 
 
GREAT PLAINS ENERGY
  
Summary Income Statement by Segment
 
  
Three Months Ended June 30, 2007
  
(Unaudited)
  
             
 
  
Consolidated
    
 
    
Strategic
 
    
 
  
 
  
GPE
    
KCP&L
    
Energy
    
Other
  
   
(millions)
 
  
Operating revenues
  
$
804.6
    
$
319.1
    
$
485.5
    
$
-
  
Fuel
     (57.9 )     (57.9 )    
-
      
-
  
Purchased power
 
     (502.5 )     (22.7 )     (479.8 )    
-
  
Other operating expense
 
     (144.0 )     (124.6 )     (14.5 )     (4.9 )
Depreciation and amortization
     (45.9 )     (43.8 )     (2.1 )    
-
  
Operating income (loss)
 
    
54.3
      
70.1
       (10.9 )     (4.9 )
Non-operating income (expenses)
 
    
1.1
      
0.2
      
1.0
       (0.1 )
Interest charges
 
     (17.9 )     (16.7 )     (0.7 )     (0.5 )
Income taxes
     (11.6 )     (17.1 )    
4.1
      
1.4
  
Loss from equity investments
     (0.3 )    
-
      
-
       (0.3 )
Net income (loss)
  
$
25.6
    
$
36.5
    
$
 (6.5 )  
$
 (4.4 )
Earnings (loss) per GPE common share
  
$
0.29
    
$
0.43
    
$
 (0.08 )  
$
 (0.06 )



GREAT PLAINS ENERGY
  
Summary Income Statement by Segment
 
  
Year to Date June 30, 2007
  
(Unaudited)
  
             
 
  
Consolidated
    
 
    
Strategic
 
    
 
  
 
  
GPE
    
KCP&L
    
Energy
    
Other
  
   
(millions)
  
Operating revenues
 
  
$
1,468.9
    
$
574.8
    
$
894.1
    
$
-
  
Fuel
     (110.6 )     (110.6 )    
-
      
-
  
Purchased power
 
     (860.4 )     (39.1 )     (821.3 )    
-
  
Other operating expense
 
     (298.3 )     (254.9 )     (35.0 )     (8.4 )
Depreciation and amortization
     (90.9 )     (86.8 )     (4.1 )    
-
  
Operating income (loss)
 
    
108.7
      
83.4
      
33.7
       (8.4 )
Non-operating income (expenses)
 
    
3.2
      
2.3
      
2.2
       (1.3 )
Interest charges
 
     (39.6 )     (34.9 )     (1.5 )     (3.2 )
Income taxes
     (22.6 )     (12.2 )     (13.8 )    
3.4
  
Loss from equity investments
     (0.7 )    
-
      
-
       (0.7 )
Net income (loss)
  
$
49.0
    
$
38.6
    
$
20.6
    
$
 (10.2 )
Earnings (loss) per GPE common share
  
$
0.57
    
$
0.46
    
$
0.24
    
$
 (0.13 )

More
-Page 9-
Attachment E
 
 
 
Consolidated Balance Sheets
  
(Unaudited)
  
             
   
June 30
    
December 31
  
   
2007
    
2006
  
ASSETS
  
(thousands)
  
Current Assets
            
Cash and cash equivalents
  
$
43,715
    
$
61,823
  
Restricted cash
    
249
      
-
  
Receivables, net
    
411,044
      
339,399
  
Fuel inventories, at average cost
 
    
41,276
      
27,811
  
Materials and supplies, at average cost
 
    
61,513
      
59,829
  
Deferred refueling outage costs
 
    
9,839
      
13,921
  
Refundable income taxes
    
22,048
      
9,832
  
Deferred income taxes
    
24,932
      
39,566
  
Derivative instruments
    
6,068
      
6,884
  
Other
    
14,604
      
11,717
  
Total
    
635,288
      
570,782
  
Nonutility Property and Investments
 
                
Affordable housing limited partnerships
 
    
20,242
      
23,078
  
Nuclear decommissioning trust fund
 
    
108,541
      
104,066
  
Other
    
14,755
      
15,663
  
Total
    
143,538
      
142,807
  
Utility Plant, at Original Cost
 
                
Electric
    
5,383,993
      
5,268,485
  
Less-accumulated depreciation
    
2,526,676
      
2,456,199
  
Net utility plant in service
 
    
2,857,317
      
2,812,286
  
Construction work in progress
 
    
294,060
      
214,493
  
Nuclear fuel, net of amortization of $111,740 and $103,381
    
52,623
      
39,422
  
Total
    
3,204,000
      
3,066,201
  
Deferred Charges and Other Assets
 
                
Regulatory assets
 
    
429,096
      
434,392
  
Goodwill
    
88,139
      
88,139
  
Derivative instruments
    
38,222
      
3,544
  
Other
    
37,921
      
29,795
  
Total
    
593,378
      
555,870
  
Total
  
$
4,576,204
    
$
4,335,660
  

More
-Page 10-
Attachment E continued
 
 
GREAT PLAINS ENERGY
  
Consolidated Balance Sheets
  
(Unaudited)
  
             
   
June 30
    
December 31
  
   
2007
    
2006
  
LIABILITIES AND CAPITALIZATION
  
(thousands)
  
Current Liabilities
            
Notes payable
 
  
$
36,000
    
$
-
  
Commercial paper
 
    
317,575
      
156,400
  
Current maturities of long-term debt
 
    
534
      
389,634
  
EIRR bonds classified as current
    
145,853
      
144,742
  
Accounts payable
 
    
357,454
      
322,724
  
Accrued taxes
    
37,087
      
24,106
  
Accrued interest
    
16,660
      
14,082
  
Accrued compensation and benefits
 
    
22,327
      
33,266
  
Pension and post-retirement liability
 
    
1,037
      
1,037
  
Derivative instruments
    
55,033
      
91,482
  
Other
    
21,314
      
25,520
  
Total
    
1,010,874
      
1,202,993
  
Deferred Credits and Other Liabilities
                
Deferred income taxes
    
632,193
      
622,847
  
Deferred investment tax credits
    
27,749
      
28,458
  
Asset retirement obligations
 
    
93,382
      
91,824
  
Pension and post-retirement liability
 
    
189,927
      
176,189
  
Regulatory liabilities
 
    
118,450
      
114,674
  
Derivative instruments
    
6,683
      
61,146
  
Other
    
75,115
      
49,103
  
Total
    
1,143,499
      
1,144,241
  
Capitalization
 
                
Common shareholders' equity
 
                
Common stock-150,000,000 shares authorized without par value
                
86,145,091 and 80,405,035 shares issued, stated value
    
1,056,155
      
896,817
  
Retained earnings
 
    
468,970
      
493,399
  
Treasury stock-72,553 and 53,499 shares, at cost
     (2,218 )     (1,614 )
Accumulated other comprehensive income (loss)
    
4,400
       (46,686 )
Total
    
1,527,307
      
1,341,916
  
Cumulative preferred stock $100 par value
                
3.80% - 100,000 shares issued
    
10,000
      
10,000
  
4.50% - 100,000 shares issued
    
10,000
      
10,000
  
4.20% - 70,000 shares issued
    
7,000
      
7,000
  
4.35% - 120,000 shares issued
    
12,000
      
12,000
  
Total
    
39,000
      
39,000
  
Long-term debt
    
855,524
      
607,510
  
Total
    
2,421,831
      
1,988,426
  
Commitments and Contingencies
 
                
Total
  
$
4,576,204
    
$
4,335,660
  



More
-Page 11-
Attachment F
 
 
 
Statistical Summary
  
                
   
  Three Months Ended  
    
  Year to Date  
  
   
  June 30  
    
  June 30  
  
   
2007
      
2006
    
2007
      
2006
  
KCP&L 
                          
 Retail revenues (millions) 
$
256.8
      
$
241.8
    
$
473.7
      
$
431.0
  
 Wholesale revenues (millions) 
$
58.5
      
$
46.2
    
$
92.7
      
$
93.7
  
 Average non-firm wholesale price per MWh 
$
43.09
      
$
47.02
    
$
41.91
      
$
48.68
  
 Wholesale MWh sales (thousands) 
  
1,362
        
1,078
      
2,248
        
2,182
  
 Cooling degree days 
  
406
        
571
      
406
        
571
  
 Equivalent availability - coal plants 
  
74
  
%
     80  %  
72
  
%
     80
%
 Capacity factor - coal plants 
  
70
  
%
     71    %  
68
  
%
     71
%
                                     
Strategic Energy
  
                                
 Average retail gross margin per MWh 
$
1.03
      
$
5.32
    
$
7.73
      
$
1.76
  
 Change in fair value related to non-hedging energy 
                                  
 contracts and from cash flow hedge ineffectiveness 
  
3.46
        
0.52
       (4.30 )      
4.97
  
 Average retail gross margin per MWh without fair 
                                  
 value impacts 1 
$
4.49
      
$
5.84
    
$
3.43
      
$
6.73
  
                                     
 MWhs delivered (thousands) 
  
5,059
        
3,974
      
9,266
        
7,636
  
 MWhs delivered plus current year backlog (thousands) 
N/A
      
N/A
      
19,522
        
16,090
  
 Average duration - new and resigned contracts (months) 
  
15
        
16
      
16
        
17
  
 MWh sales (thousands) 
  
8,117
        
7,560
      
15,576
        
14,862
  
 Retention rate 
  
40
  
%
     54    %  
47
  
%
     52
%
 Retention rate including month to month customers 
  
49
  
%
     65    %  
57
  
%
     63
%
1This is a non-GAAP financial measure that differs from GAAP because it excludes the impact of unrealized fair value gains or 
 
 
 
 losses. Management believes this measure is more reflective of average retail gross margins on MWhs delivered due to the 
 non-cash nature and volatility of changes in fair value related to non-hedging energy contracts and from cash flow hedge 
 ineffectiveness. Management and the Board of Directors use this as a measurement of Strategic Energy's realized average 
 retail gross margin per delivered MWh, which are settled upon delivery at contracted prices.          



More
-Page 12-
Attachment G
 
 
          
2007 Core Earnings Guidance
 
          
 
 
Previous Range
 
Revised Range
Kansas City Power & Light
 
  
 $   1.92 
 -
 $   2.04
  
 $    1.87 
 -
 $    1.94
                  
Strategic Energy
  
      0.07 
 -
      0.13
  
       0.07 
 -
      0.13
                  
Other 1
 
 
     (0.34)
 -
      (0.32)
 
     (0.34)
 -
      (0.32)
                  
Consolidated Core EPS 2
 
 
 $   1.65 
 -
  $   1.85
 
 $    1.60 
 -
 $    1.75
1  Other includes Home Service Solutions, Holding Company costs and other miscellaneous items. 
 
2  Core earnings is a non-GAAP financial measure that differs from GAAP earnings because it excludes the effects of
 
 
certain unusual items and mark-to-market gains and losses on energy contracts.  Great Plains Energy believes core earnings provide to investors a meaningful indicator of its results that is comparable among periods because it excludes the effects of items that may not be indicative of Great Plains Energy’s prospective earnings potential.  Core earnings is used internally to measure performance against budget and in reports for management and the Board of Directors.  Investors should note that this non-GAAP measure involves judgments by management, including whether an item is classified as an unusual item, and Great Plains Energy’s definition of core earnings may differ from similar terms used by other companies.  The impact of these items could be material to operating results presented in accordance with GAAP.  Great Plains Energy is unable to reconcile core earnings guidance to GAAP earnings per share because it does not predict the future impact of unusual items and mark-to-market gains or losses on energy contracts.
 


 
 
 
 
 
###