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Report on Form 8-K

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): February 9, 2006

 


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)

 

 

 

 

 

 

 

 

 

 

1-707

 

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 February 9, 2006, Great Plains Energy issued a press release announcing 2005 fourth quarter and full year earnings information. 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

 

 

(c) Exhibit No.

 

 

 

99

Press release issued by Great Plains Energy Incorporated on February 9, 2006.

 

 

 

 

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: February 9, 2006
Unassociated Document
                                                                    Exhibit 99
                              Media Contact:        Tom Robinson
                                              816-556-2902

                              Investor Contact:     Todd Allen
                          816-556-2083
 
FOR IMMEDIATE RELEASE

GREAT PLAINS ENERGY ANNOUNCES FULL YEAR
AND FOURTH QUARTER 2005 RESULTS
 
Kansas City, MO, February 9, 2006 - Great Plains Energy Incorporated (NYSE:GXP) today announced full year 2005 earnings available for common shareholders of $160.7 million compared to 2004 earnings of $179.2 million. Earnings per share in 2005 were $2.15, which includes $0.08 per share of dilution, compared to $2.49 in 2004.

Core earnings, which exclude the impact of KLT Gas discontinued operations, mark-to-market gains and losses on energy contracts, and certain unusual items, for the full year 2005 were $161.2 million compared to $176.2 million in 2004. Core earnings per share in 2005 were $2.16 on more shares outstanding compared to $2.44 in 2004. Reported earnings are reconciled to core earnings for the fourth quarter and full year periods in Attachments B & C, respectively.

2005 was characterized by rising fuel costs, coal conservation and the impact of plant outages at Kansas City Power & Light (KCP&L). These factors more than offset the growth in retail revenue due to favorable weather and significantly higher wholesale power prices. The challenging market environment in competitive supply, driven primarily by substantially higher natural gas prices, led to lower margins and volumes at Strategic Energy.

“We have reported earnings today which reflect the successful results in a very challenging year,” said Chairman Michael Chesser. “This success is important as we continue to execute on our strategic intent and seek regulatory treatment in Missouri and Kansas.” Chesser continued, “We are also encouraged by recent progress at Strategic Energy including strong forward sales, lengthening contract durations and improved customer retention.”
 
Fourth quarter 2005 earnings were $29.0 million or $0.39 per share compared to $35.6 million or $0.48 per share in the fourth quarter of 2004. Core earnings in the fourth quarter of 2005 were $42.8 million or $0.57 per share compared to $40.8 million or $0.55 per share in the fourth quarter of 2004. The difference in core earnings resulted primarily from higher retail sales and wholesale prices at KCP&L, offset by lower MWhs delivered at Strategic Energy. Core earnings per share for the fourth quarter of 2005 exclude $0.18 of mark-to-market losses on energy contracts at Strategic Energy.

Kansas City Power & Light

KCP&L’s full year 2005 earnings and core earnings were $145.2 million compared to $150.0 million in 2004. Earnings per share were $1.94 in 2005, which includes $0.08 per share of dilution, compared to $2.08 in 2004.
 
Revenues for the full year 2005 were $1.13 billion compared to $1.09 billion in 2004. Retail revenues were up 6% in 2005 compared to 2004, driven primarily by favorable weather. Normalized for weather variances in both periods, retail revenues grew
 
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approximately 2% over 2004. Wholesale revenues were $192.4 million, close to the 2004 level of $200.2 million. Average wholesale electricity prices for 2005 were up 56% over the 2004 average, largely offsetting a 30% decrease in wholesale volumes due to outages and coal conservation in 2005.

Fuel and purchased power expenses were up 16% compared to last year due to higher prices, as well as the effects of plant outages and coal conservation on fuel mix. Operating expenses were also higher due primarily to outages in 2005. Income taxes were $6.4 million lower than last year primarily due to a lower composite tax rate and lower taxable income.

Fourth quarter 2005 earnings and core earnings were $36.2 million or $0.48 per share compared to $31.6 million or $0.43 per share in the same period of 2004. KCP&L’s fourth quarter 2005 revenues were $272.5 million, up 11% compared to 2004. Retail revenues in the fourth quarter of 2005 rose 4% compared to the same period last year due to favorable weather. Cold weather in December also drove KCP&L’s usage to a new winter peak of 2,563 MW set on December 7, 2005. Wholesale revenues in the quarter were $76.7 million, up 36% from $56.2 million in the same period last year. Average wholesale electricity prices were almost double the fourth quarter of 2004 and 23% higher than the third quarter of 2005. Partially offsetting these high wholesale prices, wholesale MWh volume in the fourth quarter was down 20% compared to last year, driven by coal conservation and higher retail load during the fourth quarter of 2005.

Strategic Energy

Strategic Energy’s full year 2005 earnings were $28.2 million compared to $42.5 million in 2004. Earnings per share were $0.38 in 2005, which includes $0.01 per share of dilution, compared to $0.59 in 2004. Strategic Energy’s core earnings for the full year 2005, which exclude mark-to-market gains and losses on energy contracts, were $26.8 million compared to $41.5 million in 2004. Mark-to-market impacts for the full year 2005 were a gain of $1.4 million. Full year 2005 core earnings per share were $0.36 on more shares outstanding compared to $0.57 last year.

Strategic Energy delivered 19.5 million MWhs in 2005 compared to 20.3 million MWhs in 2004. Retail gross margin per MWh for 2005 was $5.19, which included $0.35 per MWh due to two significant portfolio optimization opportunities, $0.12 per MWh of net mark-to-market gains on energy contracts, $0.13 per MWh from the reversal of a tax reserve and a ($0.42) per MWh impact from SECA charges. This compares to an average retail gross margin per MWh of $6.01 last year, which included $0.08 of net mark-to-market gains on energy contracts.

For the fourth quarter of 2005, Strategic Energy reported a loss of $6.4 million, an $0.08 loss per share, compared to earnings of $10.5 million or $0.14 per share last year. Strategic Energy’s core earnings for the fourth quarter of 2005 were $7.3 million or $0.10 per share compared to earnings of $11.7 million or $0.16 per share in the fourth quarter of 2004. The difference between reported and core earnings during the fourth quarter of 2005 was due to $13.7 million of net mark-to-market losses on energy contracts resulting from falling gas and power prices during the quarter.

Declining gas and power prices in the fourth quarter of 2005 and changing customer perceptions about the longer-term price of electricity combined to improve the competitive
 
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supply environment. 2006 backlog increased from 7.5 million MWhs at the end of the third quarter to 10.4 million MWhs at the end of the fourth quarter of 2005. Backlog for the 2007 to 2010 period increased from 3.6 million MWhs at the end of the third quarter of 2005 to 7.9 million MWhs at the end of the fourth quarter. Overall contract durations associated with new and renewed contracts lengthened to 27 months during the fourth quarter of 2005, compared to 13 months last year. Strategic Energy’s retention rate also improved to 95% during the fourth quarter of 2005 and to 97% including month-to-month customers.

KLT Investments and “Other”

Full year 2005 earnings and core earnings from KLT Investments affordable housing investments were $5.7 million compared to $11.2 million in 2004. Earnings per share were $0.08 in 2005 versus $0.16 in 2004. The lower earnings in 2005 are due to the timing of reductions of affordable housing investments and a decline in available tax credits from the investments.

The “other” category 2005 loss from continuing operations was $16.5 million compared to a loss from continuing operations of $31.8 million in 2004. The loss per share was $0.22 in 2005 versus $0.44 in 2004. On a core earnings basis, the loss in the “other” category was $16.5 million or $0.22 loss per share in 2005 compared to a loss of $26.5 million or $0.37 loss per share in 2004. While not affecting Great Plains Energy’s consolidated earnings, 2005 results in the “other” category reflect a lower loss due to parent company tax allocations to subsidiaries than in 2004. Results in this category during 2005 also reflect the release of tax reserves.

Non-GAAP Financial Measure
Great Plains Energy provides in its earnings releases descriptions of “core earnings” in addition to earnings calculated in accordance with GAAP. Great Plains Energy also provides its earnings guidance in terms of core earnings. Core earnings is a non-GAAP financial measure that differs from GAAP earnings because it excludes the effects of discontinued operations, certain unusual items and mark-to-market gains and losses on energy contracts. Core earnings for historical periods are reconciled to GAAP earnings in Attachments B and C.

The Company believes core earnings provide to investors a meaningful indicator of its results that is comparable among periods because it excludes the effects of discontinued operations, unusual items and mark-to-market gains and losses on energy contracts. These items are excluded from core earnings because they may not be indicative of Great Plains Energy’s prospective earnings potential. Investors should note that this non-GAAP measure involves judgments by management including whether an item is classified as an unusual item. Core earnings is used internally to measure performance against budget and in reports for management and the Board of Directors. Great Plains Energy’s definition of core earnings may differ from similar terms used by other companies.

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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CERTAIN FORWARD-LOOKING INFORMATION -- 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. In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company 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 and the Company; 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 and constraints placed on the Company's actions by the Public Utility Holding Company Act of 1935; adverse changes in applicable laws, regulations, rules, principles or practices governing tax, accounting and environmental matters including, but not limited to, air 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 the Company’s 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 of additional generating capacity; nuclear operations; ability to enter new markets successfully and capitalize on growth opportunities in non-regulated businesses; performance of projects undertaken by the Company’s non-regulated businesses and the success of efforts to invest in and develop new opportunities; and other risks and uncertainties. Other risk factors are detailed from time to time in the Company’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


GREAT PLAINS ENERGY
  
Consolidated Statements of Income
  
(Unaudited)
  
                   
   
Three Months Ended
  
Year to Date
  
   
December 31
  
December 31
  
 
  
2005
  
2004
  
2005
  
2004
  
Operating Revenues
  
(thousands, except per share amounts)
  
Electric revenues - KCP&L
  
$
272,520
  
$
245,620
  
$
1,130,792
  
$
1,090,067
  
Electric revenues - Strategic Energy
    
371,595
   
347,873
   
1,471,490
   
1,370,760
 
Other revenues
    
1,105
   
696
   
2,600
   
3,191
 
Total
    
645,220
   
594,189
   
2,604,882
   
2,464,018
 
Operating Expenses
                          
Fuel
    
47,647
   
44,249
   
207,875
   
179,362
 
Purchased power - KCP&L
    
4,673
   
8,698
   
61,263
   
52,533
 
Purchased power - Strategic Energy
    
365,218
   
316,885
   
1,368,419
   
1,247,522
 
Other
    
87,121
   
87,489
   
327,749
   
324,237
 
Maintenance
    
21,210
   
20,297
   
90,350
   
83,603
 
Depreciation and amortization
    
38,595
   
37,987
   
153,080
   
150,071
 
General taxes
    
25,817
   
24,264
   
109,436
   
102,756
 
Loss on property
    
1,638
   
5,904
   
3,544
   
5,133
 
Total
    
591,919
   
545,773
   
2,321,716
   
2,145,217
 
Operating income
   
53,301
   
48,416
   
283,166
   
318,801
 
Non-operating income
    
4,171
   
2,204
   
19,505
   
6,799
 
Non-operating expenses
    
(1,074
)
  
(1,791
)
  
(16,745
)
  
(15,184
)
Interest charges
    
(20,010
)
  
(27,752
)
  
(73,787
)
  
(83,030
)
Income from continuing operations before income taxes,
                         
minority interest in subsidiaries and loss from equity
                          
investments
    
36,388
   
21,077
   
212,139
   
227,386
 
Income taxes
    
(7,295
)
  
12,822
   
(39,691
)
  
(54,451
)
Minority interest in subsidiaries
    
-
   
1,283
   
(7,805
)
  
2,131
 
Income (loss) from equity investments, net of
                         
income taxes
    
324
   
(457
)
  
(434
)
  
(1,531
)
Income from continuing operations
    
29,417
   
34,725
   
164,209
   
173,535
 
Discontinued operations, net of income taxes
    
(73
)
  
1,228
   
(1,899
)
  
7,276
 
Net income
    
29,344
   
35,953
   
162,310
   
180,811
 
Preferred stock dividend requirements
    
411
   
411
   
1,646
   
1,646
 
Earnings available for common shareholders
  
$
28,933
  
$
35,542
  
$
160,664
  
$
179,165
  
                           
Average number of common shares outstanding
    
74,704
   
74,341
   
74,597
   
72,028
 
                           
Basic and diluted earnings (loss) per common share
                          
Continuing operations
 
$
0.39
  
$
0.46
  
$
2.18
  
$
2.39
  
Discontinued operations
    
-
   
0.02
   
(0.03
)
  
0.10
 
Basic and diluted earnings per common share
  
$
0.39
  
$
0.48
  
$
2.15
  
$
2.49
  
                           
Cash dividends per common share
  
$
0.415
  
$
0.415
  
$
1.66
  
$
1.66
  


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Attachment B
 
                    
GREAT PLAINS ENERGY
  
Consolidated Earnings and Earnings Per Share
  
Three Months Ended December 31
  
(Unaudited)
  
                    
 
  
 
  
 
  
Earnings per Great
  
   
Earnings
  
Plains Energy Share
  
 
  
2005
  
2004
  
2005
  
2004
  
   
(millions)
          
KCP&L
  
$
36.2
  
$
31.6
  
$
0.48
  
$
0.43
  
Strategic Energy
    
(6.4
)
  
10.5
   
(0.08
)
  
0.14
 
KLT Investments
    
3.3
   
3.7
   
0.04
   
0.05
 
Other
    
(3.7
)
  
(11.1
)
  
(0.05
)
  
(0.15
)
Income from continuing operations
    
29.4
   
34.7
   
0.39
   
0.47
 
KLT Gas discontinued operations,
                          
net of income taxes
    
(0.1
)
  
1.3
   
-
   
0.02
 
Preferred dividends
    
(0.3
)
  
(0.4
)
  
-
   
(0.01
)
Earnings available for common shareholders
  
$
29.0
  
$
35.6
  
$
0.39
  
$
0.48
  
                           
Reconciliation of GAAP to Non-GAAP
                          
Earnings available for common shareholders
  
$
29.0
  
$
35.6
  
$
0.39
  
$
0.48
  
Reconciling items
                          
Strategic Energy -- mark-to-market impacts
                         
from energy contracts
    
13.7
   
1.2
   
0.18
   
0.02
 
KLT Gas -- Discontinued operations
    
0.1
   
(1.3
)
  
-
   
(0.02
)
Other -- Worry Free impairment
    
-
   
5.3
   
-
   
0.07
 
Core earnings
  
$
42.8
  
$
40.8
  
$
0.57
  
$
0.55
  
                           
Core earnings
                          
KCP&L
  
$
36.2
  
$
31.6
  
$
0.48
  
$
0.43
  
Strategic Energy
    
7.3
   
11.7
   
0.10
   
0.16
 
KLT Investments
    
3.3
   
3.7
   
0.04
   
0.05
 
Other
    
(4.0
)
  
(6.2
)
  
(0.05
)
  
(0.09
)
Core earnings
  
$
42.8
  
$
40.8
  
$
0.57
  
$
0.55
  

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Attachment C
                    
GREAT PLAINS ENERGY
  
Consolidated Earnings and Earnings Per Share
  
Year to Date December 31
  
(Unaudited)
  
                    
 
  
 
  
 
  
Earnings per Great
  
   
Earnings
  
Plains Energy Share
  
 
  
2005
  
2004
  
2005
  
2004
  
   
(millions)
          
KCP&L
  
$
145.2
  
$
150.0
  
$
1.94
  
$
2.08
  
Strategic Energy
    
28.2
   
42.5
   
0.38
   
0.59
 
KLT Investments
    
5.7
   
11.2
   
0.08
   
0.16
 
Other
    
(14.9
)
  
(30.2
)
  
(0.20
)
  
(0.42
)
Income from continuing operations
    
164.2
   
173.5
   
2.20
   
2.41
 
KLT Gas discontinued operations,
                          
net of income taxes
    
(1.9
)
  
7.3
   
(0.03
)
  
0.10
 
Preferred dividends
    
(1.6
)
  
(1.6
)
  
(0.02
)
  
(0.02
)
Earnings available for common shareholders
  
$
160.7
  
$
179.2
  
$
2.15
  
$
2.49
  
                           
Reconciliation of GAAP to Non-GAAP
                          
Earnings available for common shareholders
  
$
160.7
  
$
179.2
  
$
2.15
  
$
2.49
  
Reconciling items
                          
Strategic Energy -- mark-to-market impacts
                         
from energy contracts
    
(1.4
)
  
(1.0
)
  
(0.02
)
  
(0.02
)
KLT Gas -- Discontinued operations
    
1.9
   
(7.3
)
  
0.03
   
(0.10
)
Other -- Worry Free impairment
    
-
   
5.3
   
-
   
0.07
 
Core earnings
  
$
161.2
  
$
176.2
  
$
2.16
  
$
2.44
  
                           
Core earnings
                          
KCP&L
  
$
145.2
  
$
150.0
  
$
1.94
  
$
2.08
  
Strategic Energy
    
26.8
   
41.5
   
0.36
   
0.57
 
KLT Investments
    
5.7
   
11.2
   
0.08
   
0.16
 
Other
    
(16.5
)
  
(26.5
)
  
(0.22
)
  
(0.37
)
Core earnings
  
$
161.2
  
$
176.2
  
$
2.16
  
$
2.44
  



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Attachment D

GREAT PLAINS ENERGY
  
Summary Income Statement by Segment
  
Three Months Ended December 31, 2005
  
(Unaudited)
  
                 
                                                                                                           Consolidated
 
  
Strategic
  
 
  
                                                                                                                  GPE
KCP&L
  
Energy
  
Other
  
 
(millions)
  
Operating revenues
$
645.2
  
$
272.5
  
$
372.7
  
$
-
  
Fuel
 
(47.7
)
  
(47.7
)
  
-
   
-
 
Purchased power
 
(369.9
)
  
(4.7
)
  
(365.2
)
  
-
 
Other operating expense
  
(134.1
)
  
(115.4
)
  
(15.8
)
  
(2.9
)
Depreciation and amortization
  
(38.6
)
  
(36.8
)
  
(1.8
)
  
-
 
Loss on property
  
(1.6
)
  
(0.6
)
  
(0.1
)
  
(0.9
)
Operating income
  
53.3
   
67.3
   
(10.2
)
  
(3.8
)
Non-operating income (expenses)
  
3.0
   
2.5
   
0.7
   
(0.2
)
Interest charges
  
(20.0
)
  
(16.7
)
  
(1.2
)
  
(2.1
)
Income taxes
  
(7.3
)
  
(16.9
)
  
4.3
   
5.3
 
Loss from equity investments
  
0.4
   
-
   
-
   
0.4
 
Discontinued operations
 
(0.1
)
  
-
   
-
   
(0.1
)
Net income (loss)
$
29.3
  
$
36.2
  
$
(6.4
)
$
(0.5
)
Earnings (loss) per GPE common share
$
0.39
  
$
0.48
  
$
(0.08
)
$
(0.01
)


GREAT PLAINS ENERGY
  
Summary Income Statement by Segment
  
Year to Date December 31, 2005
  
(Unaudited)
  
                 
                                                                                                           Consolidated
 
  
Strategic
  
 
  
                                                                                                                   GPE
KCP&L
  
Energy
  
Other
  
 
(millions)
  
Operating revenues
$
2,604.9
  
$
1,130.8
  
$
1,474.0
  
$
0.1
  
Fuel
 
(207.9
)
  
(207.9
)
  
-
   
-
 
Purchased power
 
(1,429.7
)
  
(61.3
)
  
(1,368.4
)
  
-
 
Other operating expense
  
(527.5
)
  
(458.5
)
  
(53.4
)
  
(15.6
)
Depreciation and amortization
  
(153.1
)
  
(146.5
)
  
(6.4
)
  
(0.2
)
Gain (loss) on property
  
(3.5
)
  
(4.3
)
  
(0.1
)
  
0.9
 
Operating income
  
283.2
   
252.3
   
45.7
   
(14.8
)
Non-operating income (expenses)
  
2.7
   
11.8
   
2.5
   
(11.6
)
Interest charges
  
(73.8
)
  
(61.8
)
  
(3.4
)
  
(8.6
)
Income taxes
  
(39.7
)
  
(49.3
)
  
(16.6
)
  
26.2
 
Minority interest in subsidiaries
  
(7.8
)
  
(7.8
)
  
-
   
-
 
Loss from equity investments
  
(0.4
)
  
-
   
-
   
(0.4
)
Discontinued operations
 
(1.9
)
  
-
   
-
   
(1.9
)
Net income (loss)
$
162.3
  
$
145.2
  
$
28.2
  
$
(11.1
)
Earnings (loss) per GPE common share
$
2.15
  
$
1.94
  
$
0.38
  
$
(0.17
)
More
-Page 9-
Attachment E

GREAT PLAINS ENERGY
  
Consolidated Balance Sheets
  
(Unaudited)
  
           
   
December 31
  
 
  
2005
  
2004
  
ASSETS
  
(thousands)
  
Current Assets
          
Cash and cash equivalents
  
$
98,788
  
$
127,129
  
Restricted cash
    
1,900
   
7,700
 
Receivables, net
   
259,043
   
247,184
 
Fuel inventories, at average cost
    
17,073
   
21,121
 
Materials and supplies, at average cost
    
57,017
   
54,432
 
Deferred income taxes
    
-
   
13,065
 
Assets of discontinued operations
    
4,907
   
749
 
Derivative instruments
    
39,189
   
6,372
 
Other
    
13,001
   
14,485
 
Total
    
490,918
   
492,237
 
Nonutility Property and Investments
              
Affordable housing limited partnerships
    
28,214
   
41,317
 
Nuclear decommissioning trust fund
    
91,802
   
84,148
 
Other
    
17,291
   
32,739
 
Total
    
137,307
   
158,204
 
Utility Plant, at Original Cost
              
Electric
    
4,959,539
   
4,841,355
 
Less-accumulated depreciation
    
2,322,813
   
2,196,835
 
Net utility plant in service
    
2,636,726
   
2,644,520
 
Construction work in progress
    
100,952
   
53,821
 
Nuclear fuel, net of amortization of $115,240 and $127,631
    
27,966
   
36,109
 
Total
    
2,765,644
   
2,734,450
 
Deferred Charges and Other Assets
              
Regulatory assets
    
179,922
   
144,345
 
Prepaid pension costs
    
98,295
   
119,811
 
Goodwill
    
87,624
   
86,767
 
Derivative instruments
    
21,812
   
2,275
 
Other
   
52,204
   
60,812
 
Total
    
439,857
   
414,010
 
Total
  
$
3,833,726
  
$
3,798,901
  


More
-Page 10-
Attachment E continued

GREAT PLAINS ENERGY
  
Consolidated Balance Sheets
  
(Unaudited)
  
           
   
December 31
  
 
  
2005
  
2004
  
LIABILITIES AND CAPITALIZATION
  
(thousands)
  
Current Liabilities
          
Notes payable
  
$
6,000
  
$
20,000
  
Commercial paper
    
31,900
   
-
 
Current maturities of long-term debt
    
1,675
   
253,230
 
EIRR bonds classified as current
   
-
   
85,922
 
Accounts payable
    
231,496
   
199,952
 
Accrued taxes
    
37,140
   
46,993
 
Accrued interest
    
13,329
   
11,598
 
Accrued payroll and vacations
    
36,024
   
32,462
 
Accrued refueling outage costs
    
8,974
   
13,180
 
Deferred income taxes
    
1,351
   
-
 
Supplier collateral
    
1,900
   
7,700
 
Liabilities of discontinued operations
    
64
   
2,129
 
Derivative instruments
    
7,411
   
2,434
 
Other
    
25,658
   
22,497
 
Total
    
402,922
   
698,097
 
Deferred Credits and Other Liabilities
              
Deferred income taxes
    
621,359
   
632,160
 
Deferred investment tax credits
    
29,698
   
33,587
 
Asset retirement obligations
    
145,907
   
113,674
 
Pension liability
    
87,355
   
95,805
 
Regulatory liabilities
    
69,641
   
4,101
 
Derivative instruments
    
7,750
   
112
 
Other
    
65,787
   
84,311
 
Total
    
1,027,497
   
963,750
 
Capitalization
              
Common shareholders' equity
              
Common stock-150,000,000 shares authorized without par value
              
74,783,824 and 74,394,423 shares issued, stated value
    
777,216
   
765,482
 
Unearned compensation
    
(2,088
)
  
(1,393
)
Capital stock premium and expense
    
(30,671
)
  
(32,112
)
Retained earnings
    
488,001
   
451,491
 
Treasury stock-43,376 and 28,488 shares, at cost
    
(1,304
)
  
(856
)
Accumulated other comprehensive loss
    
(7,727
)
  
(41,018
)
Total
    
1,223,427
   
1,141,594
 
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
    
1,140,880
   
956,460
 
Total
    
2,403,307
   
2,137,054
 
Commitments and Contingencies
          
Total
  
$
3,833,726
  
$
3,798,901
  

More
-Page 11
Attachment F

GREAT PLAINS ENERGY
  
Statistical Summary
  
                            
 
  
Three Months Ended
  
Year to Date
  
   
  December 31
  
  December 31
  
 
  
2005
  
 
  
2004
  
2005
  
 
  
2004
  
       
  
  
KCP&L
                           
Retail revenues (millions)
  
$
193.2
        
$
185.2
  
$
924.1
        
$
873.1
  
Wholesale revenues (millions)
  
$
76.7
        
$
56.2
  
$
192.4
        
$
200.2
  
Average non-firm wholesale price per MWh
  
$
62.52
        
$
31.90
  
$
47.82
        
$
30.72
  
Wholesale sales (MWh)
    
1,442
         
1,802
   
4,608
         
6,603
 
Cooling degree days
    
-
         
-
   
1,626
         
1,118
 
Equivalent availability - coal plants
    
88
%
        
85
%
  
82
%
        
84
%
Capacity factor - coal plants
    
77
%
        
81
%
  
76
%
        
80
%
                                       
Strategic Energy
                                     
MWhs delivered
    
4,349
         
5,111
   
19,534
         
20,309
 
Average duration - new and resigned contracts (months)
    
27
         
13
   
17
         
8
 
Average retail gross margins - overall
  
$
1.37
        
$
6.00
  
$
5.19
        
$
6.01
  
Retention rate
    
95
%
        
76
%
  
76
%
        
79
%
Retention rate including month to month customers
    
97
%
        
100
%
  
86
%
        
94
%




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