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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
For Year Ended 1994
Statement by Holding Company Claiming
Exemption Under Rule U-3A-2 from the
Provisions of the Public Utility Holding
Company Act of 1935
Kansas City Power & Light Company
(Name of Company)
Kansas City Power & Light Company ("KCPL") hereby files with the
Securities and Exchange Commission ("SEC"), pursuant to Rule 2, its statement
claiming exemption as a holding company from the provisions of the Public
Utility Holding Company Act of 1935; however, pursuant to an application
currently on file with the SEC seeking reclassification of its subsidiary Wolf
Creek Nuclear Operating Corporation ("WCNOC"), KCPL hereby reserves the right
to assert that WCNOC is not a Public Utility for purposes of the Act, and that
KCPL is not, by virtue of its ownership interest in WCNOC, required to seek or
file an exemption under the Act as a public utility holding company. KCPL
makes this filing at this time in order to preserve all rights it may have under
the Act.
1. KCPL is a Missouri corporation whose principal executive offices are
located at 1201 Walnut, Kansas City, Missouri 64106. KCPL's principal business
consists of the generation, transmission, distribution and sale of electricity.
KCPL provides retail electric service to over 424,000 customers in a 4,700
square mile area located in all or portions of 23 counties in western Missouri
and eastern Kansas and sells electricity at wholesale to twelve customers.
KCPL has three subsidiaries. WCNOC, a Delaware corporation, incorporated
on April 14, 1986 to operate and maintain the Wolf Creek Generating Station
("Wolf Creek") for the benefit of the station owners. Wolf Creek and WCNOC are
each owned by KCPL and two non-affiliated electric utilities, Kansas Gas and
Electric Company ("KG&E"), a wholly-owned subsidiary of Western Resources, and
Kansas Electric Power Cooperative ("KEPCo") (collectively, the "Wolf Creek
Owners") in the following percentages: KCPL, 47%, KG&E, 47%, and KEPCo, 6%.
WYMO Fuels, Inc., a wholly-owned Missouri corporation, was organized on
August 5, 1976, for the acquisition and development of coal properties. KLT
Inc., a wholly-owned Missouri corporation, was organized on November 3, 1992,
to invest through several KLT companies in non-regulated, energy-related
enterprises.
2. The electric generating stations of KCPL and their locations are as
follows:
Estimated
1995
Year Megawatt(mw)
Unit Completed Capacity Fuel
Existing Units
Base Load......Wolf Creek 1985 548(a) Nuclear
Iatan 1980 469(a) Coal
LaCygne 2 1977 331(a) Coal
LaCygne 1 1973 341(a) Coal
Hawthorn 5 1969 457 Coal/Gas
Montrose 3 1964 161 Coal
Montrose 2 1960 152 Coal
Montrose 1 1958 150 Coal
Peak Load......Northeast 13 and 14(b) 1976 112 Oil
Northeast 17 and 18(b) 1977 108 Oil
Northeast 15 and 16(b) 1975 111 Oil
Northeast 11 and 12(b) 1972 99 Oil
Grand Avenue (two units) 1929 & 1948 64 Gas
_______________
(a) Company's share of jointly-owned unit.
(b) Combustion turbines.
KCPL owns the Hawthorn (Jackson County, Missouri), Montrose (Henry County,
Missouri), and Northeast (Jackson County, Missouri) generating stations; 50% of
LaCygne 1 and LaCygne 2 Units (Linn County, Kansas); 70% of the Iatan Unit
(Platte County, Missouri); and 47% of the Wolf Creek Station (Coffey County,
Kansas). KCPL also owns two Grand Avenue turbine-generators (Jackson County,
Missouri).
KCPL owns transmission and distribution facilities used in the sale of
electric energy to customers through its service territory. Its transmission
system is interconnected with systems of other utilities to permit direct
interchange transactions with other power suppliers in Kansas, Missouri, Iowa,
Nebraska and Minnesota. KCPL is a member of the MOKAN Power Pool, which is a
contractual arrangement among eleven utilities in Western Missouri and Kansas
which interchange energy, share reserve capacity and provide emergency and
standby services to each other.
KCPL owns approximately 1,700 overhead pole miles of transmission lines and
approximately 8,900 overhead pole miles and 2,900 underground trench miles of
distribution lines. Approximately 800 overhead pole miles of such transmission
lines, 4,200 pole miles of overhead distribution lines and 1,500 trench miles of
underground distribution lines are located in the State of Kansas. KCPL has all
franchises necessary to operate within the territory from which substantially
all of its gross operating revenue is derived.
Subsidiaries:
None of the subsidiaries own the type of property required by Item 2.
3. (a)-(d)
Claimant:
Electric Energy Sold During 1994
Missouri Kansas Total
(Mwh) (Mwh) (Mwh)
Retail 7,581,352 3,978,628 11,559,980
Wholesale 34,312 53,022 87,334
During 1994, KCPL purchased 524,690 Mwh of electric energy from
outside the State of Missouri, and had bulk power sales of 1,038,524
Mwh outside the State of Missouri.
Subsidiaries:
None of the subsidiaries has sales or purchases of electric energy.
4. (a)-(e)
None.
S I G N A T U R E
The above-named claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 27th day of February, 1995.
KANSAS CITY POWER & LIGHT COMPANY
(Name of claimant)
\s\Jeanie Sell Latz
Jeanie Sell Latz
Vice President-Law
Corporate Seal
Attest:
\s\Mark C. Sholander
Assistant Corporate Secretary
Name, title and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Jeanie Sell Latz
Vice President
Kansas City Power & Light Company
1201 Walnut
Kansas City, Missouri 64106
Exhibit A
Attached is a copy of the 1994 Consolidated Statements of
Income, Consolidated Balance Sheets, and Consolidated Statements of
Retained Earnings for KCPL and its subsidiaries with WCNOC, WYMO
Fuels, Inc., and KLT Inc. handled as follows:
1) WCNOC is the operating agent for Wolf Creek and is owned 47%
by KCPL. KCPL's $47 investment in WCNOC is carried in Investments
and Non-utility Property on the consolidated balance sheet. All of
Wolf Creek assets are owned by KCPL, KG&E and KEPCo ("Owners").
Since WCNOC is operating solely as an agent of the Owners, KCPL
classifies, in its consolidated financial statements, the payables,
expenses and receipts (if any) incurred by WCNOC as if such items
had been incurred by KCPL. WCNOC has no revenue or income.
Payment for expenses is made from checking accounts owned and
funded by the Owners.
2) WYMO Fuels, Inc. is an inactive corporation. KCPL's Balance
Sheet Account - Investments and Non-utility Property includes
$792,511 representing the remaining investment in WYMO Fuels, Inc.
Such investment represents the tax benefits applicable to the cost
of fixed assets written off for book purposes but not for tax
purposes. This investment is carried on an equity basis and is
considered immaterial for consolidation purposes when compared to
KCPL's $2.8 billion balance sheet.
3) KLT Inc. is included in the financial statements on a
consolidated basis. KLT Inc.'s revenues and expenses are
classified under Other Income and Deductions and Interest Charges
in the Consolidated Statements of Income because it is not an
electric utility. KLT Inc.'s assets and results of operations
represent less than 5% of consolidated assets and net income.
Because neither KLT Inc. nor any of its subsidiaries generate,
transmit or distribute energy, consolidating financial statements
are not included.
KANSAS CITY POWER & LIGHT COMPANY
CONSOLIDATED STATEMENTS OF INCOME
Year Ended December 31
1994 1993 1992
(Thousands)
ELECTRIC OPERATING REVENUES $868,272 $857,450 $802,668
OPERATING EXPENSES
Operation
Fuel 135,106 130,117 130,032
Purchased power 33,929 31,403 21,868
Other 202,304 184,633 175,937
Maintenance 72,468 78,550 81,163
Depreciation 94,361 91,110 88,768
Taxes
Income 70,949 69,502 51,691
General 96,362 95,659 92,461
Amortization of:
MPSC rate phase-in plan 0 7,072 7,072
Deferred Wolf Creek costs 13,102 13,102 13,102
Total 718,581 701,148 662,094
OPERATING INCOME 149,691 156,302 140,574
OTHER INCOME AND DEDUCTIONS
Allowance for equity funds
used during construction 2,087 2,846 1,073
Miscellaneous (4,159) (2,486) 2,595
Income taxes 4,572 1,549 (505)
Total 2,500 1,909 3,163
INCOME BEFORE INTEREST CHARGES 152,191 158,211 143,737
INTEREST CHARGES
Long-term debt 43,962 50,118 54,266
Short-term notes 1,170 750 2,749
Miscellaneous 4,128 4,113 2,173
Allowance for borrowed funds
used during construction (1,844) (2,542) (1,785)
Total 47,416 52,439 57,403
YEARLY RESULTS
Net income 104,775 105,772 86,334
Preferred stock
dividend requirements 3,457 3,153 3,062
Earnings available for
common stock 101,318 102,619 83,272
Average number of common
shares outstanding 61,903,437 61,908,726 61,908,726
Earnings per common share $1.64 $1.66 $1.35
Cash dividends per
common share $1.50 $1.46 $1.43
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
KANSAS CITY POWER & LIGHT COMPANY
CONSOLIDATED BALANCE SHEETS
December 31 December 31
1994 1993
ASSETS (Thousands)
UTILITY PLANT, at original cost
Electric $3,330,478 $3,240,384
Less-Accumulated depreciation 1,092,436 1,019,714
Net utility plant in service 2,238,042 2,220,670
Construction work in progress 57,294 67,766
Nuclear fuel, net of amortization of
$66,773,000 and $ 76,722,000 40,806 29,862
Total 2,336,142 2,318,298
REGULATORY ASSET - DEFERRED WOLF CREEK COSTS 18,752 29,118
REGULATORY ASSET - RECOVERABLE TAXES 120,000 122,000
INVESTMENTS AND NONUTILITY PROPERTY 98,429 28,454
CURRENT ASSETS
Cash and cash equivalents 20,217 1,539
Special deposits 0 60,118
Receivables
Customer accounts receivable 24,513 29,320
Other receivables 22,604 19,340
Fuel inventories, at average cost 16,570 14,550
Materials and supplies, at average cost 44,953 44,157
Prepayments 5,138 4,686
Deferred income taxes 1,444 3,648
Total 135,439 177,358
DEFERRED CHARGES
Regulatory Assets
Settlement of fuel contracts 16,625 20,634
KCC Wolf Creek carrying costs 6,839 9,575
Other 27,909 31,899
Other deferred charges 10,262 17,732
Total 61,635 79,840
Total $2,770,397 $2,755,068
LIABILITIES
CAPITALIZATION
Common stock-authorized 150,000,000 shares
without par value-61,908,726 shares issued -
stated value $449,697 $449,697
Retained earnings 426,738 418,201
Capital stock premium and expense (1,736) (1,747)
Common stock equity 874,699 866,151
Cumulative preferred stock 89,000 89,000
Cumulative redeemable preferred stock 1,596 1,756
Long-term debt 798,470 733,664
Total 1,763,765 1,690,571
CURRENT LIABILITIES
Notes payable to banks 1,000 4,000
Commercial paper 31,000 25,000
Current maturities of long-term debt 33,419 134,488
Accounts payable 73,486 59,421
Dividends payable 423 423
Accrued taxes 24,684 27,800
Accrued interest 12,209 15,575
Accrued payroll and vacations 19,594 20,127
Accrued refueling outage costs 2,120 7,262
Other 7,221 8,531
Total 205,156 302,627
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes 644,139 627,819
Deferred investment tax credits 82,840 87,185
Other 74,497 46,866
Total 801,476 761,870
COMMITMENTS AND CONTINGENCIES
Total $2,770,397 $2,755,068
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
KANSAS CITY POWER & LIGHT COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31
1994 1993 1992
(thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $104,775 $105,772 $86,334
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 94,361 91,110 88,768
Amortization of:
Nuclear fuel 10,136 8,705 9,583
Deferred Wolf Creek costs 13,102 13,102 13,102
MPSC rate phase-in plan 0 7,072 7,072
Other 9,608 8,234 5,921
Deferred income taxes (net) 20,524 25,502 23,979
Deferred investment tax credits (net) (4,345) (4,345) (4,521)
Allowance for equity funds used
during construction (2,087) (2,846) (1,073)
Cash flows affected by changes in:
Receivables 1,543 (10,245) 2,848
Fuel inventories (2,020) 6,075 (859)
Materials and supplies (796) 1,106 654
Accounts payable 14,065 (17,741) 4,838
Accrued taxes (3,116) 7,936 2,404
Accrued interest (3,366) 2,626 488
Wolf Creek refueling outage
accrual (5,142) (5,338) 12,600
Pension and postretirement benefit
obligations 32,203 1,905 (2,753)
Other operating activities (2,860) 4,514 4,352
Net cash provided by operating
activites 276,585 243,144 253,737
CASH FLOWS FROM INVESTING ACTIVITIES
Construction expenditures (124,965) (129,199) (129,559)
Allowance for borrowed funds used
during construction (1,844) (2,542) (1,785)
Purchases of investments (67,560) (7,351) (2,396)
Other investing activities 5,624 7,657 (2,193)
Net cash used in investing
activities (188,745) (131,435) (135,933)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of long-term debt 133,793 324,846 134,750
Issuance of preferred stock 0 0 50,000
Retirement of long-term debt (170,170) (271,480) (143,230)
Retirement of preferred stock 0 0 (13,000)
Special deposit for the
retirement of debt 60,118 (60,118) 0
Premium on reacquired stock and
long-term debt 0 (4,077) (2,321)
Increase (decrease) in short-term
borrowings 3,000 (4,000) (53,000)
Dividends paid (96,238) (93,556) (91,277)
Other financing activities 335 (1,913) 274
Net cash used in financing
activities (69,162) (110,298) (117,804)
NET INCREASE IN CASH AND CASH
EQUIVALENTS 18,678 1,411 0
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR 1,539 128 128
CASH AND CASH EQUIVALENTS
AT END OF YEAR $20,217 $1,539 $128
CASH PAID DURING THE YEAR FOR:
Interest, net of amount capitalized $48,246 $47,361 $55,223
Income taxes $53,720 $40,141 $32,995
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
CONSOLIDATED STATEMENTS OF PREFERRED STOCK AND LONG-TERM DEBT
December 31
1994 1993
CUMULATIVE PREFERRED STOCK (thousands)
$100 Par
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
No Par
4.80%* - 500,000 shares issued 50,000 50,000
Total $89,000 $89,000
CUMULATIVE REDEEMABLE PREFERRED STOCK
$100 Par
4.00% - 15,957 and 17,557 shares issued $1,596 $1,756
LONG-TERM DEBT (EXCLUDING CURRENT MATURITIES)
First Mortgage Bonds
5.875% series due 2007 $0 $21,940
General Mortgage Bonds
Medium-Term Notes due 1996-2008, 6.82% and
6.78% weighted average rate at December 31 395,500 378,750
5.25%* Environmental Improvement Revenue
Refunding Bonds due 2012-23 158,768 122,846
Guaranty of Pollution Control Bonds
5.75% series due 2003 0 13,742
4.31%* due 2015-17 196,500 196,500
Subsidiary Obligations
Notes due 2000-04, 8.38% weighted average
rate at December 31 47,702 0
Unamortized Discount 0 (114)
Total $798,470 $733,664
* Variable rate securities, weighted average rate as of December 31, 1994
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
Year Ended December 31
1994 1993 1992
(thousands)
Beginning Balance $418,201 $405,985 $411,161
Net Income 104,775 105,772 86,334
522,976 511,757 497,495
Premium on Reacquired Preferred Stock 0 0 233
Dividends Declared:
Preferred Stock, at required rates 3,384 3,169 2,747
Common Stock - $1.50, $1.46 and $1.43
per share 92,854 90,387 88,530
Ending Balance $426,738 $418,201 $405,985
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
[ARTICLE] OPUR3 [MULTIPLIER] 1000
Exhibit C
Not applicable.