f8kratecases.htm
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SECURITIES
AND EXCHANGE COMMISSION
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Washington,
D.C. 20549
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FORM
8-K
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Current
Report
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Pursuant
to Section 13 or 15(d) of the
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Securities
Exchange Act of 1934
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Date
of Report (Date of earliest event reported): September 5,
2008
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Commission
File
Number
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Registrant,
State of Incorporation,
Address
and Telephone Number
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I.R.S.
Employer
Identification
Number
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001-32206
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GREAT
PLAINS ENERGY INCORPORATED
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43-1916803
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(A
Missouri Corporation)
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1201
Walnut Street
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Kansas
City, Missouri 64106
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(816)
556-2200
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NOT
APPLICABLE
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(Former
name or former address,
if
changed since last report)
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000-51873
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KANSAS
CITY POWER & LIGHT COMPANY
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44-0308720
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(A
Missouri Corporation)
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1201
Walnut Street
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Kansas
City, Missouri 64106
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(816)
556-2200
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NOT
APPLICABLE
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(Former
name or former address,
if
changed since last report)
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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:
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[ ]
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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[ ]
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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[ ]
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange
Act
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(17
CFR 240.14d-2(b))
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[ ]
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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This
combined Current Report on Form 8-K is being filed by Great Plains Energy
Incorporated (Great Plains Energy) and Kansas City Power & Light Company
(KCP&L). KCP&L is a wholly owned subsidiary of Great Plains
Energy and represents a significant portion of its assets, liabilities,
revenues, expenses and operations. Thus, all information contained in
this report relates to, and is filed by, Great Plains
Energy. Information that is specifically identified in this report as
relating solely to Great Plains Energy, such as its financial statements and all
information relating to Great Plains Energy’s other operations, businesses and
subsidiaries, including Aquila, Inc., which does business as KCP&L Greater
Missouri Operations Company (KCP&L GMO) does not relate to, and is not filed
by, KCP&L. KCP&L makes no representation as to that
information. Neither Great Plains Energy nor KCP&L GMO has any
obligation in respect of KCP&L’s debt securities and holders of such
securities should not consider Great Plains Energy’s or KCP&L GMO’s
financial resources or results of operations in making a decision with respect
to KCP&L’s debt securities. Similarly, KCP&L has no
obligation in respect of securities of Great Plains Energy or KCP&L
GMO.
On
September 5, 2008, Great Plains Energy issued a press release announcing that
KCP&L filed requests to increase its retail electric rates with the Missouri
Public Service Commission (MPSC) and the Kansas Corporation Commission, and that
KCP&L GMO filed a request to increase its retail electric and steam rates
with the MPSC. A copy of the press release is attached to this Report
as Exhibit 99.1.
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Item
9.01
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Financial
Statements and Exhibits
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(d) Exhibit
No.
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99.1
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Press
release issued by Great Plains Energy Incorporated on September 5,
2008.
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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.
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GREAT
PLAINS ENERGY INCORPORATED
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/s/
Lori A. Wright
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Lori
A. Wright
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Vice
President and Controller
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KANSAS
CITY POWER & LIGHT COMPANY
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/s/
Lori A. Wright
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Lori
A. Wright
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Vice
President and Controller
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Date:
September 5, 2008
ex_99.htm
Exhbit 99.1
KCP&L
FILES RATE INCREASE REQUESTS
IN
MISSOURI AND KANSAS
Company
asks for recovery of investments made to maintain the region’s low-cost energy
advantage and improve air quality
Kansas
City, Mo. (Sept. 5, 2008) – KCP&L today filed rate increase requests
with the Missouri Public Service Commission (MPSC) and the Kansas Corporation
Commission (KCC) to increase base rates for electric service in all five of its
service areas. The requests will raise a typical residential customer’s rates
approximately 16.2%, translating to a $12.27 monthly increase. The
requests, which are subject to regulatory approval, would take effect in late
summer of 2009. The two public utility subsidiaries of Great Plains Energy
Incorporated (NYSE: GXP), KCP&L and Aquila, operate using the KCP&L
brand name.
The rate requests
vary in each of KCP&L’s service jurisdictions and include recovery for
investments on environmental upgrades at KCP&L’s Iatan 1 and Sibley power
plants, Crossroads generation and transmission resources and energy efficiency
programs made under KCP&L’s Comprehensive Energy Plan (CEP). The
requests also seek recovery of increased operating costs. Changes in
generation fuel costs are not included in this rate increase request for
customers served in KCP&L’s Kansas service territory and in the areas
formerly served by Aquila. For these customers, adjustments for
increases and decreases in the cost of fuel will be determined in
separate fuel cost proceedings.
“In 2005 we
began a collective journey with customers and communities to form our
Comprehensive Energy Plan with a goal of ensuring clean, affordable and reliable
electricity for years to come,” said Michael Chesser, Great Plains Energy
Chairman and CEO. “Committing then to high-efficiency coal
generation, wind power, energy efficiency and environmental upgrades was the
right call. Those investments, many of which are now completed or
nearing completion, address the challenges facing our industry and are helping
provide our customers with greater control over their energy use, maintain our
region’s low-cost energy advantage and improve our environment.”
Since 2005, the
cost of energy has increased substantially. In addition to the
environmental plant upgrades, other factors driving the rate requests include
labor, raw materials and gasoline costs. KCP&L is implementing a
plan to mitigate upward cost pressures and aggressively manage operational cost
increases. A cornerstone of this plan is the acquisition of
Aquila. Through ongoing operational savings realized through
KCP&L’s integration with Aquila, the rate increases KCP&L is seeking
from customers are significantly lower than they would have otherwise been as
stand alone companies.
The Aquila
transaction is expected to yield more than $500 million in customer savings by
2017. The company has also been focused on achieving top-tier status
in operating efficiency and was recently ranked among the top 15 utilities
nationwide in customer satisfaction by J.D. Power & Associates.
As
part of its rate request, KCP&L is seeking regulatory approval for measures
aimed at helping customers affected by the proposed rate
increases. KCP&L is filing an Economic Relief Pilot Program
in both Kansas and Missouri. The Pilot Program will provide monthly
financial assistance to qualified lower-income customers. In
addition, KCP&L is increasing its weatherization efforts throughout its
service territory and expanding its menu of energy efficiency programs, giving
customers more control over their energy use.
“We do not relish
requesting a rate increase during these difficult economic times,” said
Chesser. “However, these requests are approximately $23 million less
than they would have been, as a direct result of operational savings realized
from our acquisition of Aquila. We will continue to focus on keeping
our costs as low as possible and providing ways for customers to have greater
control over their electricity use and bills.”
The total amount of
the rate increase request is $257.5 million, broken out as follows:
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Rate
Jurisdiction**
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Rate Increase
(including amortization)
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Rate Increase
Percentage
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Monthly
Increase For Typical Residential Customer
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GMO
(MPS)
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$66.0
million
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14.4%
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$12.58
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GMO
(L&P)
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$17.1
million
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13.6%
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$10.03
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GMO
(Steam)
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$1.3
million
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7.7%
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KCP&L
(MO)
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$101.5
million
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17.5%
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$13.89
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KCP&L
(KS)
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$71.6
million
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17.5%
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$12.57
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Total
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$257.5
million
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16.2%
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$12.27
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**Rate
Jurisdiction Areas:
GMO (MPS):
Represents the area served by former Aquila’s Missouri Public Service
division
GMO (L&P):
Represents the area served by former Aquila’s St. Joseph Light & Power
division
GMO (Steam): Former
St. Joseph Light & Power steam customers
KCP&L (MO):
KCP&L Missouri customers (not in former Aquila service
territory)
KCP&L (KS):
KCP&L Kansas customers
About
The Companies:
Headquartered in
Kansas City, Mo., Great Plains Energy Incorporated (NYSE: GXP) is the holding
company of Kansas City Power & Light Company and Aquila, Inc. (doing
business as KCP&L Greater Missouri Operations Company), two of the leading
regulated providers of electricity in the Midwest. Kansas City Power
& Light and Aquila use KCP&L as a brand name. More
information about the companies is available on the Internet at: http://www.greatplainsenergy.com
or www.kcpl.com.
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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, 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, the registrants are 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, KCP&L and Aquila,
which is doing business as KCP&L Greater Missouri Operations Company
(KCP&L GMO); 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 and KCP&L GMO 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 credit
spreads 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 planned and unplanned generation outages;
delays in the anticipated in-service dates and cost increases of additional
generating capacity and environmental projects; nuclear operations; workforce
risks, including retirement compensation and benefits costs; the ability to
successfully integrate KCP&L and KCP&L GMO operations and the timing and
amount of resulting synergy savings; and other risks and
uncertainties. Other risk factors are detailed from time to time in
Great Plains Energy’s and KCP&L’s most recent quarterly reports on Form 10-Q
or annual reports 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.
Great
Plains Energy Contacts:
Investors: Ellen
Fairchild, director of investor relations, 816-556-2083,
ellen.fairchild@kcpl.com
Media: Katie
McDonald, manager of external communications, 816-556-2365,
katie.mcdonald@kcpl.com
