KCC Authorizes KCP&L Rate Increase Request

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Kansas Corporation Commission Recognizes Needed Investments, Authorizes 6.7% Increase 
 
Kansas City, Mo. (Dec. 13, 2012) — The Kansas Corporation Commission (KCC) today released its order regarding KCP&L's Kansas rate increase request. The order calls for a 6.7% increase in revenue. KCP&L originally requested a 12.9% increase in revenue.
 
The Commission recognized KCP&L needs to make significant investments at two of its generating facilities: Spearville Wind Energy Facility and LaCygne Generating Station. These investments will support our ability to meet federal and state environmental and renewable mandates, and they will enable KCP&L to supply affordable and reliable electricity to our customers for decades to come.
 
We're currently reviewing the order to fully understand its implications. While we agree with some parts of the order, our greatest concern is the allowed return on equity percentage (ROE).  
 
One of the ways a utility like KCP&L provides reliable service at a lower cost to customers is by attracting investors. Those investors prefer to invest in utilities that are authorized to earn a fair and competitive ROE. The ROE granted today—which is the authorized amount the company can earn, not a guaranteed amount—is materially below the national average and recently allowed ROEs regionally. An ROE below the national average will make it more difficult to attract the capital the company needs to complete the significant required investments in Kansas.
 
About KCP&L: 
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 and KCP&L Greater Missouri Operations 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.