KCP&L files rate increase requests in Missouri and Kansas

Friday, KCP&L filed rate increase requests with the Missouri Public Service Commission and the Kansas Corporation Commission to increase base rates for electric service in all five of its service areas. The requests will raise a typical residential customer's rates approximately 16.2%, translating to a $12.27 monthly increase. The requests, which are subject to regulatory approval, would take effect in late summer of 2009. The two public utility subsidiaries of Great Plains Energy Incorporated (NYSE: GXP), KCP&L and Aquila, operate using the KCP&L brand name.

The rate requests vary in each of KCP&L's service jurisdictions and include recovery for investments on environmental upgrades at KCP&L's Iatan 1 and Sibley power plants, Crossroads generation and transmission resources and energy efficiency programs made under KCP&L's Comprehensive Energy Plan. The requests also seek recovery of increased operating costs. Changes in generation fuel costs are not included in this rate increase request for customers served in KCP&L's Kansas service territory and in the areas formerly served by Aquila. For these customers, adjustments for increases and decreases in the cost of fuel will be determined in separate fuel cost proceedings.

"In 2005 we began a collective journey with customers and communities to form our Comprehensive Energy Plan with a goal of ensuring clean, affordable and reliable electricity for years to come," said Michael Chesser, Great Plains Energy Chairman and CEO. "Committing then to high-efficiency coal generation, wind power, energy efficiency and environmental upgrades was the right call. Those investments, many of which are now completed or nearing completion, address the challenges facing our industry and are helping provide our customers with greater control over their energy use, maintain our region's low-cost energy advantage and improve our environment."

Since 2005, the cost of energy has increased substantially. In addition to the environmental plant upgrades, other factors driving the rate requests include labor, raw materials and gasoline costs. KCP&L is implementing a plan to mitigate upward cost pressures and aggressively manage operational cost increases. A cornerstone of this plan is the acquisition of Aquila.

Through ongoing operational savings realized through KCP&L's integration with Aquila, the rate increases KCP&L is seeking from customers are significantly lower than they would have otherwise been as stand alone companies.

The Aquila transaction is expected to yield more than $500 million in customer savings by 2017.

The company has also been focused on achieving top-tier status in operating efficiency and was recently ranked among the top 15 utilities nationwide in customer satisfaction by J.D. Power & Associates.

As part of its rate request, KCP&L is seeking regulatory approval for measures aimed at helping customers affected by the proposed rate increases. KCP&L is filing an Economic Relief Pilot Program in both Kansas and Missouri. The Pilot Program will provide monthly financial assistance to qualified lower-income customers. In addition, KCP&L is increasing its weatherization efforts throughout its service territory and expanding its menu of energy efficiency programs, giving customers more control over their energy use.

"We do not relish requesting a rate increase during these difficult economic times," said Chesser. "However, these requests are approximately $23 million less than they would have been, as a direct result of operational savings realized from our acquisition of Aquila. We will continue to focus on keeping our costs as low as possible and providing ways for customers to have greater control over their electricity use and bills."