KANSAS CITY, Mo. & TOPEKA, Kan.--(BUSINESS WIRE)--May 4, 2017--
Great Plains Energy Incorporated (NYSE: GXP) and Westar Energy, Inc.
(NYSE: WR) today announced that they have filed a Petition for
Reconsideration with the Kansas Corporation Commission (“Commission” or
“KCC”) regarding its April 19, 2017, Order denying approval of Great
Plains Energy’s acquisition of Westar. The petition requests additional
time until May 31, 2017, to allow further discussions between Great
Plains Energy and Westar to determine if a mutually agreeable revised
transaction might be negotiated that resolves the concerns identified by
the Commission, while preserving meaningful benefits for customers and
shareholders. If the companies are able to reach and announce an
agreement, they will immediately engage with the other parties to the
proceeding in order to address their concerns and set a new procedural
schedule that allows all parties and the Commission adequate time to
review the matter.
“We continue to firmly believe that combining Great Plains Energy and
Westar creates significant value for customers, employees and
communities in Kansas and Missouri as well as for our shareholders.
Since announcing this transaction, we have completed integration
planning, and this work has only reinforced our belief in the value of
this combination,” said Terry Bassham, chairman and chief executive
officer of Great Plains Energy. “By joining our companies, we together
can establish a leading Midwest energy company that creates benefits for
all stakeholders that neither company could achieve on its own.”
“A combination of these two companies and the efficiencies it would
create helps address the headwinds of rising costs for our customers,”
said Mark Ruelle, president and chief executive officer of Westar. “We
are hopeful we can reach a revised agreement that paves the way for the
completion of our transaction and the realization of its many customer
benefits.”
Bassham said, “We have heard the Commission regarding the structure of
the transaction, including its concerns related to purchase price,
capital structure, quantifiable and demonstrable customer benefits, and
staffing levels in Westar’s service territory. Given the unique benefits
resulting from our combination, we believe it is appropriate to explore
whether there is room to work with Westar and directly address these
areas, while maintaining the shareholder value creation opportunity
inherent in this merger. In any case, we would only pursue a revised
agreement if we determined that it delivered more value than Great
Plains was able to achieve on a stand-alone basis.”
About Great Plains Energy
Headquartered in Kansas City, Mo., Great Plains Energy Incorporated
(NYSE: GXP) is the holding company of Kansas City Power & Light Company
and KCP&L Greater Missouri Operations Company, two of the leading
regulated providers of electricity in the Midwest. Kansas City Power &
Light Company and KCP&L Greater Missouri Operations Company use KCP&L as
a brand name. More information about the companies is available on the
Internet at: www.greatplainsenergy.com
or www.kcpl.com.
About Westar Energy
Westar Energy, Inc. (NYSE: WR) is Kansas' largest electric utility. For
more than a century, we have provided Kansans the safe, reliable
electricity needed to power their businesses and homes. Every day our
team of professionals takes on projects to generate and deliver
electricity, protect the environment and provide excellent service to
our nearly 700,000 customers. Westar has 7,800 MW of electric generation
capacity fueled by coal, uranium, natural gas, wind and landfill gas. We
are also a leader in electric transmission in Kansas. Our innovative
customer service programs include mobile-enabled customer care, smart
meter deployment and paving the way for electric vehicle adoption. Our
employees live, volunteer and work in the communities we serve.
For more information about Westar Energy, visit us on the Internet at http://www.WestarEnergy.com.
Westar Energy is on Facebook: www.Facebook.com/westarenergy
and Twitter: www.Twitter.com/WestarEnergy.
Forward-Looking Statements
WESTAR:
Certain matters discussed in this news release regarding Westar are
“forward-looking statements.” The Private Securities Litigation Reform
Act of 1995 has established that these statements qualify for safe
harbors from liability. Forward-looking statements may include words
like “believe,” “anticipate,” “target,” “expect,” “pro forma,”
“estimate,” “intend,” “guidance” or words of similar meaning.
Forward-looking statements describe future plans, objectives,
expectations or goals. Although Westar believes that its expectations
are based on reasonable assumptions, all forward-looking statements
involve risk and uncertainty. The factors that could cause actual
results to differ materially from these forward-looking statements
include those discussed herein as well as (1) those discussed in
Westar’s Annual Report on Form 10-K for the year ended Dec. 31, 2016 (a)
under the heading, “Forward-Looking Statements,” (b) in ITEM 1.
Business, (c) in ITEM 1A. Risk Factors, (d) in ITEM 7. Management's
Discussion and Analysis of Financial Condition and Results of
Operations, and (e) in ITEM 8. Financial Statements and Supplementary
Data: Notes 3, 14 and 16 and (2) other factors discussed in Westar’s
filings with the Securities and Exchange Commission. Any forward-looking
statement speaks only as of the date such statement was made, and Westar
does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date on which
such statement was made.
GXP:
Statements made in this report 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, statements relating to Great Plains
Energy's proposed acquisition of Westar Energy, Inc. (Westar), the
outcome of regulatory proceedings, cost estimates of capital projects
and other matters affecting future operations. In connection with the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995, Great Plains Energy and KCP&L 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 regional, national and
international markets and their effects on sales, prices and costs;
prices and availability of electricity in regional and national
wholesale markets; market perception of the energy industry, Great
Plains Energy and KCP&L changes in business strategy, operations or
development plans; the outcome of contract negotiations for goods and
services; 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 the Companies 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 derivatives and
hedges, nuclear decommissioning trust and pension plan assets and costs;
impairments of long-lived assets or goodwill; 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, including, but not limited to, cyber
terrorism; ability to carry out marketing and sales plans; weather
conditions including, but not limited to, weather-related damage and
their effects on sales, prices and costs; cost, availability, quality
and deliverability of fuel; the inherent uncertainties in estimating the
effects of weather, economic conditions and other factors on customer
consumption and financial results; ability to achieve generation goals
and the occurrence and duration of planned and unplanned generation
outages; delays in the anticipated in-service dates and cost increases
of generation, transmission, distribution or other projects; Great
Plains Energy's ability to successfully manage its transmission joint
ventures or to integrate or restructure the transmission joint ventures
of Westar; the inherent risks associated with the ownership and
operation of a nuclear facility including, but not limited to,
environmental, health, safety, regulatory and financial risks; workforce
risks, including, but not limited to, increased costs of retirement,
health care and other benefits; the ability of Great Plains Energy to
obtain the regulatory approvals necessary to complete the anticipated
acquisition of Westar and the terms of those approvals; the risk that a
condition to the closing of the anticipated acquisition of Westar may
not be satisfied or that the anticipated acquisition may fail to close;
the outcome of any legal proceedings, regulatory proceedings or
enforcement matters that may be instituted relating to the anticipated
acquisition of Westar; the costs incurred to consummate or terminate the
anticipated acquisition of Westar; the possibility that the expected
value creation from the anticipated acquisition of Westar will not be
realized, or will not be realized within the expected time period; the
credit ratings of Great Plains Energy following the anticipated
acquisition of Westar; disruption from the anticipated acquisition of
Westar making it more difficult to maintain relationships with
customers, employees, regulators or suppliers and the diversion of
management time and attention on the proposed transactions; and other
risks and uncertainties.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170504005707/en/
Source: Great Plains Energy Incorporated / Westar Energy, Inc.
Great Plains Energy
Investors:
Calvin Girard,
816-654-1777
Senior Manager, Investor Relations
calvin.girard@kcpl.com
or
Media:
Katie
McDonald, 816-556-2365
Senior Director, Corporate Communications
katie.mcdonald@kcpl.com
Media
line: 816-392-9455
or
Westar Energy
Investors:
Cody
VandeVelde, 785-575-8227
Director, Investor Relations
Cody.VandeVelde@westarenergy.com
or
Media:
Jana
Dawson, 785-575-1975
Director, Corporate Communications
Jana.Dawson@westarenergy.com
Media
line: 888-613-0003
