KANSAS CITY, Mo. & TOPEKA, Kan.--(BUSINESS WIRE)--May 23, 2017--
Today the Kansas Corporation Commission (“Commission” or “KCC”) denied
the Petition for Reconsideration filed jointly by Great Plains Energy
Incorporated (NYSE: GXP) and Westar Energy, Inc. (NYSE: WR) regarding
the Commission’s April 19, 2017, Order denying approval of Great Plains
Energy’s acquisition of Westar Energy.
Great Plains Energy and Westar continue to work in a timely manner to
explore the possibility of a revised transaction. If a new agreement to
combine is reached, the companies would file a new application under a
new docket. While the companies have made progress, it will take more
time to evaluate whether a new deal is possible.
“It is important for all parties to the case to have adequate time and
ability in which to review any revised proposal,” said Terry Bassham,
Great Plains Energy chairman and chief executive officer. “If we move
forward, any revised transaction would have to be materially better than
our standalone plan for both shareholders and customers, and it would
have to have a high likelihood of success.”
Since filing the petition, the companies have had discussions with KCC
staff and CURB, and agree that if a new agreement can be forged between
the companies, a new application with the KCC would be the appropriate
procedure to follow.
“If we reach an agreement, we agree a new KCC application would be the
best route,” said Mark Ruelle, Westar Energy president and chief
executive officer. “The KCC staff and CURB have indicated they would
discuss a procedural schedule following a review of a new application to
determine whether the 300 days allowable will be necessary to review the
revised transaction. From Great Plains Energy’s and Westar’s
perspective, we believe the work we did in the earlier docket could
shorten the new schedule to fewer than the 300 days allowable.”
“We’ve learned a tremendous amount during the past few months of
integration planning work and would be able to share that information if
we reach an agreement and file a new application,” Bassham said. “We
understand how important it is to get this right for our customers,
investors, employees and our Kansas communities.”
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
As Kansas’ largest electric utility, Westar Energy, Inc. (NYSE:WR)
provides customers the safe, reliable electricity needed to power their
businesses and homes. We have 7,800 MW of electric generation capacity
that includes renewables and traditional power sources with half the
electricity supplied to our more than 700,000 customers from emissions
free sources – nuclear, wind and solar – with a third coming from
renewables. We are a leader in electric transmission in Kansas
coordinating a network of lines and substations that supports one of the
largest consolidations of wind energy in the nation. Our employees live,
volunteer and work in the communities we serve.
For more information about Westar Energy, visit us at www.WestarEnergy.com.
Forward-Looking Statements
WESTAR:
Certain matters discussed in this news release 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 Energy 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 the company'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; (2) those discussed in the company's Quarterly
Report on Form 10-Q filed May 9, 2017, (a) under the heading,
"Forward-Looking Statements," (b) in ITEM 2. Management's Discussion and
Analysis of Financial Condition and Results of Operations and (c) in
Part I, Financial Information, ITEM 1. Financial Statements: Notes 3, 11
and 12 and (d) in ITEM 1A. Risk Factors; and (3) other factors discussed
in the company's filings with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date such statement
was made, and the company 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/20170523006546/en/
Source: Great Plains Energy
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
Media
line: 816-392-9455
katie.mcdonald@kcpl.com
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
Media
line: 888-613-0003
Jana.Dawson@westarenergy.com
