f8kratecasedeck.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 9,
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.
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Item
7.01
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Regulation
FD Disclosure
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On
September 9, 2008, Great Plains Energy will conduct a webcast regarding the
recently filed KCP&L and KCP&L GMO rate cases. A copy of the
presentation slides to be used in the webcast is attached hereto as Exhibit
99.1. The presentation is scheduled for 2:00 p.m. Eastern Time
on September 9, 2008. A webcast link and the presentation slides will be made
available on Great Plains Energy’s website at www.greatplainsenergy.com.
The
information under Item 7.01 and in Exhibit 99.1 hereto is being furnished and
shall not be deemed filed for the purpose of Section 18 of the Securities
Exchange Act of 1934, as amended. The information under Item 7.01 and
Exhibit 99.1 hereto shall not be incorporated by reference into any registration
statement or other document pursuant to the Securities Act of 1933, as amended,
unless otherwise indicated in such registration statement or other
document.
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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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September
9, 2008, Investor Presentation on 2008 Rate Case Filings webcast slides
(furnished and not deemed filed for the purpose of Section 18 of the
Securities Exchange Act of 1934, as
amended).
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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/
Terry Bassham
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Terry
Bassham
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Executive
Vice President- Finance & Strategic Development and Chief Financial
Officer
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KANSAS
CITY POWER & LIGHT COMPANY
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/s/
Terry Bassham
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Terry
Bassham
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Chief
Financial Officer
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Date:
September 9, 2008
irdeckratecase.htm
Exhibit
99.1
Great
Plains Energy
Investor
Presentation on 2008 Rate
Case Filings
September
9, 2008
1
Statements made
in this presentation 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, Kansas City Power & Light Company
(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.
Forward Looking
Statement
Great
Plains Energy
Investor
Presentation on 2008 Rate
Case Filings
September
9, 2008
Terry
Bassham, CFO
Executive Vice President
Finance & Strategic
Development
3
Business
Week July 24, 2008
Missouri and
Kansas Rates Below
National Average
4
• 2006 rate cases
for KCP&L included 100 MW of new wind generation in rate base
• KCP&L 2007
cases included La Cygne Unit 1 SCR in rate base
• KCP&L
reached settlements in Kansas in both 2006 and 2007
> Energy
cost adjustment approved in 2007 case
> Energy
efficiency rider approved in 2007 case
• MPS and L&P
2007 cases included Fuel Adjustment Clause for 95%
recoverability
of fuel costs over base amount
Recent Rate Case
Outcomes
5
• Requested ROE
reasonable based on extensive cost of capital analysis
• Capital
structure based on Great Plains Energy consolidated capital
structure
> Excludes
short-term debt
> Per the Aquila transaction approval,
Kansas filing excludes Aquila cap structure
impact
and synergies
Summary of Rate
Cases
6
Requested
Capital Structure - Missouri
Requested
Capital Structure - Kansas
Note
*1: Cost
of debt varies by case as follows:
KCPL
MO- 6.32%, GMO MPS- 6.851%, GMO L&P (electric and steam)-
7.634%
Requested
Capital Structure
7
$1.0
$4.3
$1.5
KCP&L
GMO
$2.8
KCP&L
$2.4
$1.1
$2.3
Rate
Cases Filed
8/5/2008
KCP&L
Historical Rate Base
Aquila
(KCP&L GMO)
Historical
Rate Base
Rates
Effective
1/1/2007
Rates
Effective
1/1/2008
Rates
Effective
5/31/2007
Rates
Effective
3/1/2006
Projected
Combined Rate Base
March
31, 2009
(in
billions)
Rate Base
Growth
8
Spearville
Wind Energy Facility
ü 100MW completed
on schedule and under budget
LaCygne
ü Phase
1: Unit 1 SCR -
Completed on schedule, under budget, and
performing
per specification
• Phase
2:
Unit 1 -
bag
house and scrubber environmental upgrades:
> Project
Definition Report completed in Q3 2007
> Evaluating
upgrade of Unit 2 at the same time
Iatan
Unit 1
ü Expected to be
in-service early 2009
Iatan
Unit 2 Construction
• Expected to be
in-service summer 2010.
Comprehensive
Energy Plan
9
70%
30%
CEP Breakdown
• Rate increase
of 17.5% or $71.6 million based on test year base revenues
of
approximately $409 million (excluding fuel expense recovered
through
the
energy cost adjustment mechanism)
• Utilizes
calendar 2007 test year with April 30, 2009 true-up of plant; rates
effective
July 5, 2009
• No synergy
amounts required to be shared in this filing
Docket
number 09-KCPE-246-RTS
KCP&L (KS)
Rate Case
10
66%
34%
CEP Breakdown
• Rate increase
of 17.5% or $101.5 million based on test year base revenues
of
approximately $580 million
• Utilizes
calendar 2007 test year, with update based on October 31, 2008
financials
and true-up as of April 30, 2009
• Synergies from
Aquila transaction begin to flow to customers
Docket
number ER-2009-0089
KCP&L (MO)
Rate Case
11
• The amount of
the GMO (MPS) rate increase is 14.4% or $66.0 million
based
on test year revenue of approximately $460 million
• Continuation of
fuel adjustment clause
Docket
number ER-2009-0090
KCP&L GMO
(MPS) Rate Case
12
• 13.6% rate
increase or $17.1 million based on test year revenues of
approximately
$125 million
• Continuation of
fuel adjustment clause
Docket
number ER-2009-0090
KCP&L GMO
(L&P Electric) Rate Case
13
• Requested rate
increase of 7.7%
or $1.3 million based on test
year
base revenue of approximately $17 million
• Requesting to
continue the Quarterly Cost Adjustment (QCA) for
fuel,
but proposing to change the base amounts included in the
tariff
and to modify the recovery adjustment to reflect 100%
recovery
of the incremental costs
Docket
number ER-2009-0091
KCP&L GMO
(L&P Steam) Rate Case
14
Applications
filed
with MPSC
Sept. 5,
2008
Staff
conducts audit
of entire operations
Now
- - March 2009
Update
of revenue
requirement model
based on Oct. 31,
2008. Submitted
approx.
Jan. 1, 2009
Staff
and interveners
file
March
2009
Rebuttal
testimony
March
2009
Pre-hearing
conference
April
2009
True-up
of revenue
requirement model
based on April 30,
2009 &
submitted
early June
2009
Hearings
May
2009
Briefs
June
2009
Decision
July
2009
Rates
implemented
August
5, 2009
Projected
Missouri Regulatory Timeline
Great
Plains Energy
Investor
Presentation on 2008 Rate
Case Filings
September
9, 2008
