Great Plains Energy Completes Acquisition of AquilaNew KCP&L signage is displayed at former Aquila facilities. (Photo: Business
July 14 2008 - 2:05PM
Business Wire
Great Plains Energy (NYSE: GXP) today announced the completion of
its acquisition of Aquila, Inc. (NYSE: ILA). Beginning today,
Aquila's Missouri electric utility business will operate under the
brand name of Great Plains Energy's subsidiary, KCP&L. "Today
is an important day for our region," announced Michael Chesser,
Chairman and Chief Executive Officer of Great Plains Energy. "Our
acquisition of Aquila will create significant savings for both
Aquila and KCP&L customers. In today's rising-cost environment,
this transaction is just one part of our plan to maintain
affordable energy prices for the customers and communities we
serve." Families, businesses and communities are all facing the
impact of higher oil prices, food prices and raw material costs.
Utilities face these same cost pressures. Savings resulting from
the integration of KCP&L and Aquila operations are expected to
generate approximately $198 million of customer savings by 2013 and
$547 million by 2017. These savings will be passed on to customers
and will help reduce future rate increases. With the addition of
Aquila's 300,000 Missouri electric utility customers in adjacent
service territories, the companies will provide electric service to
approximately 800,000 residential and business customers in 47
counties in Missouri and Kansas. Customers should experience
seamless service during the integration of Aquila and KCP&L.
One change all customers will notice is the new KCP&L logo,
which was publicly unveiled today as part of the beginning of the
newly integrated operations of the companies. The design of the
logo was created to convey movement and energy, reflecting our
innovative and proactive approach to meeting tomorrow's energy
needs. In connection with the transaction, KCP&L hired
approximately 900 Aquila employees, raising the number of employees
at KCP&L to nearly 3,100. "We are proud to welcome Aquila's
employees and customers to the KCP&L family," Chesser said.
"The integration of KCP&L and Aquila operations creates a solid
platform of customer, community and shareholder value and is a
critical part of our plan to provide clean, affordable and reliable
energy to our region for generations to come." It is important to
note new customer contact information, effective immediately: -0-
*T To report emergencies or outages: 1-888-LIGHT-KC (544-4852) For
service-related needs or billing questions: Metropolitan Kansas
City: (816) 471-KCPL (5275) Toll-free: 1-888-471-KCPL (5275) *T
Complete account- and service-related assistance, outage reporting
and bill payment information are also available online at
www.kcpl.com. For more information about the acquisition, please
visit www.oneregionalutility.com. As a result of the acquisition,
each outstanding share of Aquila's common stock was converted into
the right to receive 0.0856 of a share of Great Plains Energy
common stock and $1.80 in cash. Immediately prior to the Aquila
acquisition, Black Hills Corporation (NYSE: BKH) acquired from
Aquila its electric utility in Colorado and natural gas utility
properties in Colorado, Kansas, Nebraska and Iowa for approximately
$909 million in cash, after estimated closing adjustments. Aquila
shareholders holding physical stock certificates will receive share
exchange instructions in the next few weeks. FORWARD-LOOKING
STATEMENTS Statements made in this release 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 regarding projected delivered volumes and margins, the
outcome of regulatory proceedings, cost estimates of the
Comprehensive Energy Plan and other matters affecting future
operations. In connection with the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, the registrants
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 the regional, national and international markets,
including but not limited to regional and national wholesale
electricity markets; market perception of the energy industry,
Great Plains Energy and KCP&L changes in business strategy,
operations or development plans; 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 KCP&L 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 pension plan
assets and costs; 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; increased competition including, but not limited
to, retail choice in the electric utility industry and the entry of
new competitors; ability to carry out marketing and sales plans;
weather conditions including weather-related damage; cost,
availability, quality and deliverability of fuel; ability to
achieve generation planning goals and the occurrence and duration
of planned and unplanned generation outages; delays in the
anticipated in-service dates and cost increases of additional
generating capacity and environmental projects; nuclear operations;
ability to enter new markets successfully and capitalize on growth
opportunities in non-regulated businesses and the effects of
competition; workforce risks including retirement compensation and
benefits costs; performance of projects undertaken by non-regulated
businesses and the success of efforts to invest in and develop new
opportunities; the ability to successfully complete merger,
acquisition or divestiture plans (including the integration of
Aquila and KCP&L operations and the timing and amount of
resulting synergies and savings), and other risks and
uncertainties. Other risk factors are detailed from time to time in
Great Plains Energy's most recent quarterly report on Form 10-Q or
annual report on Form 10-K filed with the Securities and Exchange
Commission. This list of factors is not all-inclusive because it is
not possible to predict all factors. Great Plains Energy (NYSE:
GXP) today announced the completion of its acquisition of Aquila,
Inc. (NYSE: ILA). Beginning today, Aquila�s Missouri electric
utility business will operate under the brand name of Great Plains
Energy�s subsidiary, KCP&L. �Today is an important day for our
region,� announced Michael Chesser, Chairman and Chief Executive
Officer of Great Plains Energy. �Our acquisition of Aquila will
create significant savings for both Aquila and KCP&L customers.
In today�s rising-cost environment, this transaction is just one
part of our plan to maintain affordable energy prices for the
customers and communities we serve.� Families, businesses and
communities are all facing the impact of higher oil prices, food
prices and raw material costs. Utilities face these same cost
pressures. Savings resulting from the integration of KCP&L and
Aquila operations are expected to generate approximately $198
million of customer savings by 2013 and $547 million by 2017. These
savings will be passed on to customers and will help reduce future
rate increases. With the addition of Aquila�s 300,000 Missouri
electric utility customers in adjacent service territories, the
companies will provide electric service to approximately 800,000
residential and business customers in 47 counties in Missouri and
Kansas. Customers should experience seamless service during the
integration of Aquila and KCP&L. One change all customers will
notice is the new KCP&L logo, which was publicly unveiled today
as part of the beginning of the newly integrated operations of the
companies. The design of the logo was created to convey movement
and energy, reflecting our innovative and proactive approach to
meeting tomorrow�s energy needs. In connection with the
transaction, KCP&L hired approximately 900 Aquila employees,
raising the number of employees at KCP&L to nearly 3,100. �We
are proud to welcome Aquila�s employees and customers to the
KCP&L family,� Chesser said. �The integration of KCP&L and
Aquila operations creates a solid platform of customer, community
and shareholder value and is a critical part of our plan to provide
clean, affordable and reliable energy to our region for generations
to come.� It is important to note new customer contact information,
effective immediately: To report emergencies or outages:
1-888-LIGHT-KC (544-4852) � For service-related needs or billing
questions: Metropolitan Kansas City: (816) 471-KCPL (5275)
Toll-free: 1-888-471-KCPL (5275) Complete account- and
service-related assistance, outage reporting and bill payment
information are also available online at www.kcpl.com. For more
information about the acquisition, please visit
www.oneregionalutility.com. As a result of the acquisition, each
outstanding share of Aquila�s common stock was converted into the
right to receive 0.0856 of a share of Great Plains Energy common
stock and $1.80 in cash. Immediately prior to the Aquila
acquisition, Black Hills Corporation (NYSE: BKH) acquired from
Aquila its electric utility in Colorado and natural gas utility
properties in Colorado, Kansas, Nebraska and Iowa for approximately
$909 million in cash, after estimated closing adjustments. Aquila
shareholders holding physical stock certificates will receive share
exchange instructions in the next few weeks. FORWARD-LOOKING
STATEMENTS Statements made in this release 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 regarding projected delivered volumes and margins, the
outcome of regulatory proceedings, cost estimates of the
Comprehensive Energy Plan and other matters affecting future
operations. In connection with the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, the registrants
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 the regional, national and international markets,
including but not limited to regional and national wholesale
electricity markets; market perception of the energy industry,
Great Plains Energy and KCP&L changes in business strategy,
operations or development plans; 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 KCP&L 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 pension plan
assets and costs; 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; increased competition including, but not limited
to, retail choice in the electric utility industry and the entry of
new competitors; ability to carry out marketing and sales plans;
weather conditions including weather-related damage; cost,
availability, quality and deliverability of fuel; ability to
achieve generation planning goals and the occurrence and duration
of planned and unplanned generation outages; delays in the
anticipated in-service dates and cost increases of additional
generating capacity and environmental projects; nuclear operations;
ability to enter new markets successfully and capitalize on growth
opportunities in non-regulated businesses and the effects of
competition; workforce risks including retirement compensation and
benefits costs; performance of projects undertaken by non-regulated
businesses and the success of efforts to invest in and develop new
opportunities; the ability to successfully complete merger,
acquisition or divestiture plans (including the integration of
Aquila and KCP&L operations and the timing and amount of
resulting synergies and savings), and other risks and
uncertainties. Other risk factors are detailed from time to time in
Great Plains Energy�s most recent quarterly report on Form 10-Q or
annual report on Form 10-K filed with the Securities and Exchange
Commission. This list of factors is not all-inclusive because it is
not possible to predict all factors.
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