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#2823
FOR IMMEDIATE RELEASE Contact: Pam Levetzow/Phyllis Desbien
816-556-2926
Tim Metz
Abernathy MacGregor Scanlon
212-371-5999
Kansas City Power & Light Company asks KCC to deny Western
Resources' motion to delay rate adjustment proceeding
Kansas City, Missouri (April 18, 1996) -- Kansas City Power &
Light Company (NYSE: KLT) filed a pleading today with the Kansas
Corporation Commission (KCC) opposing Western Resources Inc's
(NYSE: WR) motion to delay the proceeding in which the Commission
would determine the amount of the rate reductions owed to
Western's customers. Western's basis for the motion is its
unsolicited proposal to merge with KCPL, announced on April 14.
In its pleading, KCPL noted that the effect of Western's motion
would be to delay release of certain important information to the
public, including KCPL shareholders. If granted, the delay
requested by Western would prevent the public from assessing the
merits of Western's unsolicited proposal to merge with KCPL
without knowing the full picture of possible rate reductions for
Western. These rate reductions would affect Western's revenue and
earnings streams and, therefore would be reflected in Western's
share price.
Specifically, the filings, due April 22, which Western is asking
the Commission to delay, will include studies of Western's cost
of providing electric service to KGE and KPL customers. Those
filings will contain the recommendations of the Staff, the
Citizen's Utility Ratepayer Board (CURB), and intervenors
regarding the appropriate rate levels for KGE and KPL, including
recommended rate reductions and the effect of those reductions on
Western's future earnings. In a public hearing in April, CURB
stated that it "will ask for a rollback in rates far in excess of
the $8.7 million" that Western has requested.
Western's request for delay of the filing of these rate
recommendations comes at a crucial time--when KCPL's shareholders
are being asked to vote on a merger with Utilicorp United Inc.
In the pleading filed today, KCPL stated that if the Commission
granted Western's request, the Commission "would be directly
assisting Western in Western's apparent strategy of keeping the
Staff, CURB and intervenor filings from seeing the light of day."
Western has also requested the Commission for authority to
implement, on an interim basis, an $8.7 million annual rate
reduction for KGE customers. Western first proposed this
reduction in August 1995. KCPL is not opposing this interim rate
reduction.
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