If approved, rate updates would include federal tax cut savings and
several customer experience enhancements.
KCP&L and KCP&L-Greater Missouri Operations Company (KCP&L-GMO),
subsidiaries of Great Plains Energy Incorporated (NYSE: GXP), recently
requested rate updates for their Missouri customers. The requests will
update rates for several customer experience enhancements, including
technology and green initiatives. Additionally, the companies are asking
to pass along to customers 100% of the savings resulting from the Tax
Cut and Jobs Act. This will result in approximately $65 million in
savings for customers in Missouri. KCP&L will make a similar request for
Kansas customers later this spring.
Once savings from the Tax Cut and Jobs Act are taken into account, KCP&L
is requesting approximately a 1% rate increase to its base rates for
KCP&L-Missouri customers. For KCP&L-GMO customers, the company is
requesting approximately a 0.3% rate decrease to its base rates.
Additionally, the companies have asked the Commission to continue
reflecting fuel and purchased power increases and decreases in its Fuel
Adjustment Clauses (FAC) on customer bills. KCP&L’s and KCP&L-GMO’s FACs
in Missouri get reset in each rate update proceeding. In this rate
update case, the FAC will result in an additional 1% increase for
KCP&L-Missouri customers and slightly more than a 3% increase for
KCP&L-GMO customers.
The rate update process takes approximately 11 months in Missouri, so
any resulting rate changes would be expected to be effective in late
December 2018. If the rate update is approved as filed, the average
residential customer* living in the KCP&L-Missouri area would see an
approximately $3 per month change and an approximately $2 per month
change for customers in the KCP&L-GMO area. To better understand the
areas impacted by this rate update request, please visit www.kcpl.com/servicearea.
Customer-Focused Enhancements
In the last few years, KCP&L has worked to bring innovative energy
solutions to its customers. Many of these solutions allow customers the
flexibility to manage and receive information about their energy usage
in a way that fits their needs, whether in-person, online or over the
phone. One notable project that provides this for customers is KCP&L’s new
customer information system, which will be launched later in 2018.
This system and its related technologies ensure improved, consistent
and more efficient customer communications. In other words, customers
want to hear from KCP&L in helpful and relevant ways; these new systems
help meet that customer need. The new customer information system
includes cyber security upgrades to protect customers’ personal
information.
“We know our customers want information about programs and services that
help them save money as well as tools that help them make informed
decisions about their energy usage,” said Terry Bassham, KCP&L President
and CEO. “These technology enhancements deliver what customers want: The
information they need, when and where they want it.”
Sustainability Investments
In addition to technology enhancements, KCP&L is also investing in
sustainable ways to deliver electricity to customers. One such project
is the KCP&L Clean Charge Network, KCP&L’s electric vehicle charging
program. This network has made the region the fastest growing for
electric vehicle adoption in the country. Additionally, the Clean Charge
Network is making the air cleaner for everyone living and working in the
area.
KCP&L is also requesting several additional ways for customers to power
their homes and businesses with renewable energy. Today, approximately
17% of KCP&L’s generation capacity comes from renewable sources like
wind and solar and nearly 43% of the energy used to meet KCP&L’s retail
energy demand is carbon-free. If approved, the proposed Renewable Energy
and Solar Subscription programs would provide customers with options to
directly subscribe to receive renewable energy to offset the energy they
use each month.
“Our customers expect renewable energy to be a part of how we power
their lives,” said Bassham. “Whether it’s electric vehicles or
delivering new ways to access renewable energy, we are committed to
sustainable solutions to meet our customers’ energy needs, now and into
the future.”
Customer Assistance
Most of the customer bill impact of the costs associated with these
investments is largely offset by the federal tax savings. However, KCP&L
offers several resources to help customers who struggle to pay their
electricity bill and partners with community agencies as well. Visit our
billing and payment options online or contact KCP&L at 1-888-471-5275 to
discuss available payment options.
For more information on this rate update request, visit www.kcpl.com/MORates.
* An average KCP&L-MO residential customer is defined as using 1,037
kWh per month in the summer and 684 kWh per month in the winter. An
average KCP&L-GMO residential customer is defined as using 1,154 kWh per
month in the summer and 749 kWh per month in the winter.
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.
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 relating to the anticipated
merger transaction of Great Plains Energy and Westar Energy, Inc.
(Westar), including those that relate to the expected financial and
operational benefits of the merger to the companies and their
shareholders (including cost savings, operational efficiencies and the
impact of the anticipated merger on earnings per share), the expected
timing of closing, the outcome of regulatory proceedings, cost estimates
of capital projects, dividend growth, share repurchases, balance sheet
and credit ratings, rebates to customers, employee issues 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, KCP&L and
Westar; 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 that 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 and Westar's ability to successfully manage and integrate their
respective transmission joint ventures; 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 and Westar to obtain the regulatory approvals necessary to
complete the anticipated merger or the imposition of adverse conditions
or costs in connection with obtaining regulatory approvals; the risk
that a condition to the closing of the anticipated merger may not be
satisfied or that the anticipated merger may fail to close; the outcome
of any legal proceedings, regulatory proceedings or enforcement matters
that may be instituted relating to the anticipated merger; the costs
incurred to consummate the anticipated merger; the possibility that the
expected value creation from the anticipated merger will not be
realized, or will not be realized within the expected time period;
difficulties related to the integration of the two companies; the credit
ratings of the combined company following the anticipated merger;
disruption from the anticipated merger making it more difficult to
maintain relationships with customers, employees, regulators or
suppliers; the diversion of management time and attention on the
anticipated merger; and other risks and uncertainties.
This list of factors is not all-inclusive because it is not possible to
predict all factors. Additional risks and uncertainties are detailed
from time to time in Great Plains Energy’s and KCP&L’s quarterly reports
on Form 10-Q and annual report on Form 10-K filed with the Securities
and Exchange Commission. Each forward-looking statement speaks only as
of the date of the particular statement. Great Plains
Energy and KCP&L undertake no obligation to publicly update or revise
any forward-looking statement, whether as a result of new information,
future events or otherwise.
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