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/
Great Plains EnergyInvestors:Calvin Girard,
816-654-1777Senior Manager, Investor
Relationscalvin.girard@kcpl.comorMedia:Katie McDonald,
816-556-2365Senior Director, Corporate CommunicationsMedia line:
816-392-9455katie.mcdonald@kcpl.comorWestar
EnergyInvestors:Cody VandeVelde, 785-575-8227Director, Investor
RelationsCody.VandeVelde@westarenergy.comorMedia:Jana Dawson,
785-575-1975Director, Corporate CommunicationsMedia line:
888-613-0003Jana.Dawson@westarenergy.com
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