Exact
name of registrant as specified in its charter,
|
||||
Commission
|
state
of incorporation, address of principal
|
I.R.S.
Employer
|
||
File
Number
|
executive
offices and telephone number
|
Identification
Number
|
||
001-32206
|
GREAT
PLAINS ENERGY INCORPORATED
|
43-1916803
|
||
(A
Missouri Corporation)
|
||||
1200
Main Street
|
||||
Kansas
City, Missouri 64105
|
||||
(816)
556-2200
|
||||
www.greatplainsenergy.com
|
||||
000-51873
|
KANSAS
CITY POWER & LIGHT COMPANY
|
44-0308720
|
||
(A
Missouri Corporation)
|
||||
1200
Main Street
|
||||
Kansas
City, Missouri 64105
|
||||
(816)
556-2200
|
||||
www.kcpl.com
|
||||
Former
address if changed since last report
|
||||
The
former address of both registrants is:
1201
Walnut Street
|
||||
Kansas
City, Missouri 64106
|
Abbreviation or Acronym
|
Definition
|
|
AFUDC
|
Allowance
for Funds Used During Construction
|
|
ARO
|
Asset
Retirement Obligation
|
|
BART
|
Best
available retrofit technology
|
|
Black
Hills
|
Black
Hills Corporation
|
|
Board
|
Great
Plains Energy Board of Directors
|
|
CAIR
|
Clean
Air Interstate Rule
|
|
CAMR
|
Clean
Air Mercury Rule
|
|
Clean
Air Act
|
Clean
Air Act Amendments of 1990
|
|
CO
2
|
Carbon
Dioxide
|
|
Collaboration
Agreement
|
Agreement
among KCP&L, the Sierra Club and the Concerned
Citizens
of Platte County
|
|
Company
|
Great
Plains Energy Incorporated and its subsidiaries
|
|
DOE
|
Department
of Energy
|
|
ECA
|
Energy
Cost Adjustment
|
|
EIRR
|
Environmental
Improvement Revenue Refunding
|
|
EPA
|
Environmental
Protection Agency
|
|
EPS
|
Earnings
per common share
|
|
ERISA
|
Employee
Retirement Income Security Act of 1974, as amended
|
|
FAC
|
Fuel
Adjustment Clause
|
|
FASB
|
Financial
Accounting Standards Board
|
|
FERC
|
The
Federal Energy Regulatory Commission
|
|
FGIC
|
Financial
Guaranty Insurance Company
|
|
FSS
|
Forward
Starting Swaps
|
|
GAAP
|
Generally
Accepted Accounting Principles
|
|
GMO
|
KCP&L
Greater Missouri Operations Company, a wholly owned subsidiary
of
Great
Plains Energy as of July 14, 2008
|
|
Great
Plains Energy
|
Great
Plains Energy Incorporated and its subsidiaries
|
|
HSS
|
Home
Service Solutions Inc., a wholly owned subsidiary of KLT
Inc.
|
|
ISO
|
Independent
System Operator
|
|
KCC
|
The
State Corporation Commission of the State of Kansas
|
|
KCP&L
|
Kansas
City Power & Light Company, a wholly owned subsidiary
of
Great Plains Energy
|
|
KDHE
|
Kansas
Department of Health and Environment
|
|
KLT
Inc.
|
KLT
Inc., a wholly owned subsidiary of Great Plains Energy
|
|
KW
|
Kilowatt
|
|
kWh
|
Kilowatt
hour
|
|
MAC
|
Material
Adverse Change
|
|
MDNR
|
Missouri
Department of Natural Resources
|
|
MGP
|
Manufactured
gas plant
|
|
MISO
|
Midwest
Independent Transmission System Operator, Inc.
|
|
MPS
Merchant
|
MPS
Merchant Services, Inc., a wholly owned subsidiary of
GMO
|
|
MPSC
|
Public
Service Commission of the State of Missouri
|
|
MW
|
Megawatt
|
|
MWh
|
Megawatt
hour
|
|
Abbreviation or Acronym
|
Definition
|
|
NERC
|
North
American Electric Reliability Corporation
|
|
NO
x
|
Nitrogen
Oxide
|
|
NPNS
|
Normal
Purchases and Normal Sales
|
|
NRC
|
Nuclear
Regulatory Commission
|
|
OCI
|
Other
Comprehensive Income
|
|
PCB
|
Polychlorinated
biphenyls
|
|
PRB
|
Powder
River Basin
|
|
QCA
|
Quarterly
Cost Adjustment
|
|
Receivables
Company
|
Kansas
City Power & Light Receivables Company, a wholly owned
subsidiary
of KCP&L
|
|
RTO
|
Regional
Transmission Organization
|
|
SEC
|
Securities
and Exchange Commission
|
|
Services
|
Great
Plains Energy Services Incorporated, a wholly owned subsidiary
of
Great
Plain Energy
|
|
SIP
|
State
Implementation Plan
|
|
SO
2
|
Sulfur
Dioxide
|
|
SPP
|
Southwest
Power Pool, Inc.
|
|
STB
|
Surface
Transportation Board
|
|
Strategic
Energy
|
Strategic
Energy, L.L.C., a former subsidiary of KLT Energy
Services
|
|
Syncora
|
Syncora
Guarantee Inc.
|
|
T
- Lock
|
Treasury
Lock
|
|
Union
Pacific
|
Union
Pacific Railroad Company
|
|
WCNOC
|
Wolf
Creek Nuclear Operating Corporation
|
|
Westar
|
Westar
Energy, Inc., a Kansas utility company
|
|
Wolf
Creek
|
Wolf
Creek Generating Station
|
|
GREAT PLAINS ENERGY INCORPORATED | ||||||
Consolidated
Balance Sheets
|
||||||
(Unaudited)
|
||||||
September
30
|
December
31
|
|||||
2009
|
2008
|
|||||
ASSETS
|
(millions,
except share amounts)
|
|||||
Current
Assets
|
||||||
Cash
and cash equivalents
|
$ | 16.5 | $ | 61.1 | ||
Funds
on deposit
|
5.4 | 10.8 | ||||
Receivables,
net
|
230.2 | 242.3 | ||||
Fuel
inventories, at average cost
|
90.1 | 87.0 | ||||
Materials
and supplies, at average cost
|
115.4 | 99.3 | ||||
Deferred
refueling outage costs
|
8.1 | 12.4 | ||||
Refundable
income taxes
|
19.1 | 26.0 | ||||
Deferred
income taxes
|
33.7 | 28.6 | ||||
Assets
held for sale (Note 5)
|
16.8 | 16.3 | ||||
Derivative
instruments
|
1.3 | 4.8 | ||||
Prepaid
expenses
|
10.2 | 15.2 | ||||
Total
|
546.8 | 603.8 | ||||
Nonutility
Property and Investments
|
||||||
Affordable
housing limited partnerships
|
13.4 | 13.9 | ||||
Nuclear
decommissioning trust fund
|
109.7 | 96.9 | ||||
Other
|
41.1 | 41.1 | ||||
Total
|
164.2 | 151.9 | ||||
Utility
Plant, at Original Cost
|
||||||
Electric
|
8,766.4 | 7,940.8 | ||||
Less-accumulated
depreciation
|
3,714.4 | 3,582.5 | ||||
Net
utility plant in service
|
5,052.0 | 4,358.3 | ||||
Construction
work in progress
|
1,408.4 | 1,659.1 | ||||
Nuclear
fuel, net of amortization of $123.6 and $110.8
|
71.1 | 63.9 | ||||
Total
|
6,531.5 | 6,081.3 | ||||
Deferred
Charges and Other Assets
|
||||||
Regulatory
assets
|
805.5 | 824.8 | ||||
Goodwill
|
169.0 | 156.0 | ||||
Derivative
instruments
|
8.3 | 13.0 | ||||
Other
|
40.5 | 38.5 | ||||
Total
|
1,023.3 | 1,032.3 | ||||
Total
|
$ | 8,265.8 | $ | 7,869.3 | ||
The
accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
|
1.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
·
|
KCP&L
is an integrated, regulated electric utility that provides electricity to
customers primarily in the states of Missouri and
Kansas. KCP&L has one active wholly owned subsidiary,
Kansas City Power & Light Receivables Company (Receivables
Company).
|
·
|
KCP&L
Greater Missouri Operations Company (GMO) is an integrated, regulated
electric utility that primarily provides electricity to customers in the
state of Missouri. GMO also provides regulated steam service to
certain customers in the St. Joseph, Missouri area. GMO wholly
owns MPS Merchant Services, Inc. (MPS Merchant), which has certain
long-term natural gas contracts remaining from its former non-regulated
trading operations. Great Plains Energy acquired GMO on July
14, 2008. See Note 2 to the consolidated financial statements
for additional information.
|
·
|
Great
Plains Energy Services Incorporated (Services) obtains certain goods and
third-party services for its affiliated companies. On December
16, 2008, Services employees were transferred to
KCP&L.
|
·
|
KLT
Inc. is an intermediate holding company that primarily holds investments
in affordable housing limited
partnerships.
|
Three
Months Ended
|
Year
to Date
|
|||||||||||||||
September
30
|
September
30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Income
|
(millions,
except per share amounts)
|
|||||||||||||||
Income
from continuing operations
|
$ | 78.4 | $ | 104.7 | $ | 137.0 | $ | 112.5 | ||||||||
Less:
net income attributable to noncontrolling interest
|
0.1 | - | 0.2 | - | ||||||||||||
Less:
preferred stock dividend requirements
|
0.4 | 0.4 | 1.2 | 1.2 | ||||||||||||
Income
available for common shareholders
|
$ | 77.9 | $ | 104.3 | $ | 135.6 | $ | 111.3 | ||||||||
Common
Shares Outstanding
|
||||||||||||||||
Average
number of common shares outstanding
|
134.6 | 113.8 | 127.5 | 95.3 | ||||||||||||
Add:
effect of dilutive securities
|
0.3 | 0.1 | 0.1 | - | ||||||||||||
Diluted
average number of common shares outstanding
|
134.9 | 113.9 | 127.6 | 95.3 | ||||||||||||
Basic
EPS from continuing operations
|
$ | 0.57 | $ | 0.92 | $ | 1.07 | $ | 1.17 | ||||||||
Diluted
EPS from continuing operations
|
$ | 0.57 | $ | 0.92 | $ | 1.06 | $ | 1.17 | ||||||||
2.
|
GMO
ACQUISITION
|
Three
Months
|
Year
to
|
|||||||
Ended
|
Date
|
|||||||
September
30, 2008
|
||||||||
(millions, except per share amounts) | ||||||||
Operating
revenues
|
$ | 624.7 | $ | 1,569.7 | ||||
Income
from continuing operations
|
$ | 102.0 | $ | 114.2 | ||||
Net
income
|
$ | 102.3 | $ | 149.2 | ||||
Earnings
available for common shareholders
|
$ | 101.9 | $ | 148.0 | ||||
Basic
and diluted earnings per common share from
|
||||||||
continuing
operations
|
$ | 0.89 | $ | 1.19 | ||||
Basic
and diluted earnings per common share
|
$ | 0.89 | $ | 1.56 | ||||
3.
|
SUPPLEMENTAL
CASH FLOW INFORMATION
|
Great
Plains Energy Other Operating Activities
|
||||||||
Year
to Date September 30
|
2009
|
2008
|
||||||
Cash
flows affected by changes in:
|
(millions)
|
|||||||
Receivables
|
$ | 7.9 | $ | 9.8 | ||||
Fuel
inventories
|
(3.1 | ) | (0.9 | ) | ||||
Materials
and supplies
|
(16.1 | ) | (2.7 | ) | ||||
Accounts
payable
|
(122.2 | ) | (1.4 | ) | ||||
Accrued
taxes
|
85.7 | 116.4 | ||||||
Accrued
interest
|
1.9 | 19.2 | ||||||
Deferred
refueling outage costs
|
4.3 | (8.8 | ) | |||||
Accrued
plant maintenance costs
|
2.2 | 1.2 | ||||||
Fuel
adjustment clauses
|
3.1 | (5.6 | ) | |||||
Pension
and post-retirement benefit obligations
|
43.0 | 6.3 | ||||||
Allowance
for equity funds used during construction
|
(29.6 | ) | (14.3 | ) | ||||
Deferred
acquisition costs
|
- | (13.2 | ) | |||||
Forward
Starting Swaps settlement
|
(79.1 | ) | - | |||||
T-Lock
settlement
|
- | (41.2 | ) | |||||
Other
|
10.1 | (31.7 | ) | |||||
Total
other operating activities
|
$ | (91.9 | ) | $ | 33.1 | |||
Cash
paid during the period:
|
||||||||
Interest
|
$ | 162.8 | $ | 50.9 | ||||
Income
taxes
|
$ | 4.7 | $ | 19.0 | ||||
Non-cash
investing activities:
|
||||||||
Liabilities
assumed for capital expenditures
|
$ | 56.8 | $ | 73.5 | ||||
KCP&L
Other Operating Activities
|
||||||||
Year
to Date September 30
|
2009
|
2008
|
||||||
Cash
flows affected by changes in:
|
(millions)
|
|||||||
Receivables
|
$ | 6.7 | $ | 9.5 | ||||
Fuel
inventories
|
0.6 | (5.7 | ) | |||||
Materials
and supplies
|
(11.4 | ) | (3.4 | ) | ||||
Accounts
payable
|
(49.3 | ) | 12.6 | |||||
Accrued
taxes
|
96.4 | 102.1 | ||||||
Accrued
interest
|
18.9 | 12.5 | ||||||
Deferred
refueling outage costs
|
4.3 | (8.8 | ) | |||||
Pension
and post-retirement benefit obligations
|
51.5 | - | ||||||
Allowance
for equity funds used during construction
|
(22.6 | ) | (14.3 | ) | ||||
Kansas
Energy Cost Adjustment
|
(0.2 | ) | (5.5 | ) | ||||
Forward
Starting Swaps settlement
|
(79.1 | ) | - | |||||
T-Lock
settlement
|
- | (41.2 | ) | |||||
Other
|
17.1 | (33.3 | ) | |||||
Total
other operating activities
|
$ | 32.9 | $ | 24.5 | ||||
Cash
paid during the period:
|
||||||||
Interest
|
$ | 44.0 | $ | 40.7 | ||||
Income
taxes
|
$ | - | $ | 4.0 | ||||
Non-cash
investing activities:
|
||||||||
Liabilities
assumed for capital expenditures
|
$ | 55.2 | $ | 67.4 | ||||
4.
|
RECEIVABLES
|
September
30
|
December
31
|
||||
2009
|
2008
|
||||
Great
Plains Energy
|
(millions)
|
||||
Customer
accounts receivable - billed
|
$ 63.7
|
$ 61.3
|
|||
Customer
accounts receivable - unbilled
|
67.2
|
69.9
|
|||
Allowance
for doubtful accounts
|
(3.4
|
) |
(3.5)
|
||
Other
receivables
|
102.7
|
114.6
|
|||
Total
|
$ 230.2
|
$ 242.3
|
|||
KCP&L
|
|||||
Customer
accounts receivable - billed
|
$ 5.2
|
$ 15.5
|
|||
Customer
accounts receivable - unbilled
|
44.8
|
41.7
|
|||
Allowance
for doubtful accounts
|
(2.1
|
) |
(1.2)
|
||
Intercompany
receivables
|
16.5
|
28.5
|
|||
Other
receivables
|
81.1
|
77.1
|
|||
Total
|
$ 145.5
|
$ 161.6
|
|||
Receivables | Consolidated | |||||||||||
Three
Months Ended September 30, 2009
|
KCP&L
|
Company | KCP&L | |||||||||
(millions)
|
||||||||||||
Receivables
(sold) purchased
|
$ | (354.2 | ) | $ | 354.2 | $ | - | |||||
Gain
(loss) on sale of accounts receivable
(a)
|
(4.5 | ) | 4.4 | (0.1 | ) | |||||||
Servicing
fees
|
0.9 | (0.9 | ) | - | ||||||||
Fees
to outside investor
|
- | (0.4 | ) | (0.4 | ) | |||||||
Cash
flows during the period
|
||||||||||||
Cash
from customers transferred to Receivables Company
|
(352.5 | ) | 352.5 | - | ||||||||
Cash
paid to KCP&L for receivables purchased
|
348.1 | (348.1 | ) | - | ||||||||
Servicing
fees
|
0.9 | (0.9 | ) | - | ||||||||
Interest
on intercompany note
|
0.1 | (0.1 | ) | - | ||||||||
Receivables | Consolidated | |||||||||||
Year
to Date September 30, 2009
|
KCP&L
|
Company | KCP&L | |||||||||
(millions)
|
||||||||||||
Receivables
(sold) purchased
|
$ | (892.0 | ) | $ | 892.0 | $ | - | |||||
Gain
(loss) on sale of accounts receivable
(a)
|
(11.3 | ) | 11.0 | (0.3 | ) | |||||||
Servicing
fees
|
2.4 | (2.4 | ) | - | ||||||||
Fees
to outside investor
|
- | (0.9 | ) | (0.9 | ) | |||||||
Cash
flows during the period
|
||||||||||||
Cash
from customers transferred to Receivables Company
|
(880.3 | ) | 880.3 | - | ||||||||
Cash
paid to KCP&L for receivables purchased
|
869.3 | (869.3 | ) | - | ||||||||
Servicing
fees
|
2.4 | (2.4 | ) | - | ||||||||
Interest
on intercompany note
|
0.3 | (0.3 | ) | - | ||||||||
Receivables | Consolidated | |||||||||||
Three
Months Ended September 30, 2008
|
KCP&L
|
Company | KCP&L | |||||||||
(millions)
|
||||||||||||
Receivables
(sold) purchased
|
$ | (372.6 | ) | $ | 372.6 | $ | - | |||||
Gain
(loss) on sale of accounts receivable
(a)
|
(4.7 | ) | 4.5 | (0.2 | ) | |||||||
Servicing
fees
|
1.0 | (1.0 | ) | - | ||||||||
Fees
to outside investor
|
- | (0.6 | ) | (0.6 | ) | |||||||
Cash
flows during the period
|
||||||||||||
Cash
from customers transferred to Receivables Company
|
(363.8 | ) | 363.8 | - | ||||||||
Cash
paid to KCP&L for receivables purchased
|
359.3 | (359.3 | ) | - | ||||||||
Servicing
fees
|
1.0 | (1.0 | ) | - | ||||||||
Interest
on intercompany note
|
0.8 | (0.8 | ) | - | ||||||||
Receivables | Consolidated | |||||||||||
Year
to Date September 30, 2008
|
KCP&L
|
Company | KCP&L | |||||||||
(millions)
|
||||||||||||
Receivables
(sold) purchased
|
$ | (896.2 | ) | $ | 896.2 | $ | - | |||||
Gain
(loss) on sale of accounts receivable
(a)
|
(11.3 | ) | 10.9 | (0.4 | ) | |||||||
Servicing
fees
|
2.4 | (2.4 | ) | - | ||||||||
Fees
to outside investor
|
- | (1.9 | ) | (1.9 | ) | |||||||
Cash
flows during the period
|
||||||||||||
Cash
from customers transferred to Receivables Company
|
(873.9 | ) | 873.9 | - | ||||||||
Cash
paid to KCP&L for receivables purchased
|
863.0 | (863.0 | ) | - | ||||||||
Servicing
fees
|
2.4 | (2.4 | ) | - | ||||||||
Interest
on intercompany note
|
1.6 | (1.6 | ) | - | ||||||||
(a) Any net gain (loss) is the result of the timing difference inherent in collecting receivables and | ||||||||||||
over the life of the agreement will net to zero. |
5.
|
ASSETS
HELD FOR SALE
|
6.
|
NUCLEAR
PLANT
|
September
30
|
December
31
|
||||
2009
|
2008
|
||||
Decommissioning
Trust
|
(millions)
|
||||
Beginning
balance
|
$ 96.9
|
$ 110.5 | |||
Contributions
|
2.8
|
3.7 | |||
Earned
income, net of fees
|
2.2
|
3.3 | |||
Net
realized gains/(losses)
|
(6.4)
|
(8.2) | |||
Net
unrealized gains/(losses)
|
14.2
|
(12.4) | |||
Ending
balance
|
$ 109.7
|
$ 96.9 | |||
September
30
|
December
31
|
|||||||||||||||
2009
|
2008
|
|||||||||||||||
Fair
|
Unrealized |
Fair
|
Unrealized | |||||||||||||
Value
|
Gains/(Losses) |
Value
|
Gains/(Losses) | |||||||||||||
(millions)
|
||||||||||||||||
Equity
securities
|
$ | 42.8 | $ | 6.5 | $ | 34.6 | $ | (5.3 | ) | |||||||
Debt
securities
|
63.7 | 3.4 | 59.9 | 1.0 | ||||||||||||
Other
|
3.2 | - | 2.4 | - | ||||||||||||
Total
|
$ | 109.7 | $ | 9.9 | $ | 96.9 | $ | (4.3 | ) | |||||||
Three
Months
|
Year
to
|
|||||||
Ended
|
Date
|
|||||||
September
30, 2009
|
||||||||
(millions)
|
||||||||
Realized
Gains
|
$ | 0.5 | $ | 1.2 | ||||
Realized
Losses
|
(0.9 | ) | (7.6 | ) | ||||
7.
|
REGULATORY
MATTERS
|
Current
Estimate
|
Previous
Estimate
|
|||||||||||
Range
|
Range
|
Change
|
||||||||||
(millions)
|
||||||||||||
Great
Plains Energy's 73% share of Iatan No. 2
|
$
1,153
|
-
|
$
1,201
|
$
1,125
|
-
|
$
1,201
|
$ 28
|
-
|
$ -
|
|||
KCP&L's
55% share of Iatan No. 2
|
868
|
-
|
904
|
847
|
-
|
904
|
21
|
-
|
-
|
|||
Great
|
||||||||||||||
September
30, 2009
|
KCP&L
|
GMO
|
Plains
Energy
|
|||||||||||
Regulatory
Assets
|
(millions)
|
|||||||||||||
Taxes
recoverable through future rates
|
$ | 71.7 | $ | 22.1 |
(a)
|
$ | 93.8 | |||||||
Loss
on reacquired debt
|
5.4 |
(b)
|
0.3 |
(b)
|
5.7 | |||||||||
Cost
of removal
|
7.0 | - | 7.0 | |||||||||||
Asset
retirement obligations
|
22.9 | 12.4 | 35.3 | |||||||||||
Pension
settlements
|
14.7 |
(c)
|
- | 14.7 | ||||||||||
Pension
and post-retirement costs
|
391.1 |
(d)
|
82.2 |
(d)
|
473.3 | |||||||||
Deferred
customer programs
|
33.4 |
(e)
|
5.0 | 38.4 | ||||||||||
Rate
case expenses
|
5.4 |
(f)
|
1.3 |
(f)
|
6.7 | |||||||||
Skill
set realignment costs
|
6.5 |
(g)
|
- | 6.5 | ||||||||||
Under-recovery
of energy costs
|
1.8 |
(h)
|
49.3 |
(h)
|
51.1 | |||||||||
Acquisition
transition costs
|
29.1 | 22.0 | 51.1 | |||||||||||
St.
Joseph Light & Power acquisition
|
- | 3.2 |
(h)
|
3.2 | ||||||||||
Storm
damage
|
- | 5.2 |
(h)
|
5.2 | ||||||||||
Derivative
instruments
|
- | 3.9 |
(h)
|
3.9 | ||||||||||
Other
|
8.0 |
(i)
|
1.6 |
(i)
|
9.6 | |||||||||
Total
|
$ | 597.0 | $ | 208.5 | $ | 805.5 | ||||||||
Regulatory
Liabilities
|
||||||||||||||
Emission
allowances
|
$ | 86.3 | $ | 0.9 | $ | 87.2 | ||||||||
Asset
retirement obligations
|
31.9 | - | 31.9 | |||||||||||
Pension
|
- | 34.2 | 34.2 | |||||||||||
Cost
of removal
|
- | 62.0 |
(j)
|
62.0 | ||||||||||
Other
|
6.3 | 12.3 | 18.6 | |||||||||||
Total
|
$ | 124.5 | $ | 109.4 | $ | 233.9 | ||||||||
(a)
|
In
GMO’s most recent rate case, GMO agreed not to seek recovery of the
regulatory asset for previously flowed-through tax benefits on cost of
removal timing deductions, which resulted in GMO recording a $28.9 million
decrease in the regulatory asset, offset by deferred taxes of $11.1
million and goodwill of $17.8
million.
|
(b)
|
Amortized
over the life of the related new debt issuances or the remaining lives of
the old debt issuances if no new debt was
issued.
|
(c)
|
$8.1
million not included in rate base and amortized through
2012.
|
(d)
|
Represents
the funded status of the pension plans more than offset by related
liabilities. Also represents financial and regulatory
accounting method differences not included in rate base that will be
eliminated over the life of the pension
plans.
|
(e)
|
$11.7
million not included in rate base.
|
(f)
|
$5.3
million at KCP&L and $1.3 million at GMO not included in rate base and
amortized over various periods.
|
(g)
|
$3.3
million not included in rate base and amortized through
2017.
|
(h)
|
Not
included in rate base.
|
(i)
|
Certain
insignificant items are not included in rate base and amortized over
various periods.
|
(j)
|
Estimated
cumulative net provision for future removal
costs.
|
Great | ||||||||||||
December
31, 2008
|
KCP&L
|
GMO
|
Plains Energy | |||||||||
Regulatory
Assets
|
(millions)
|
|||||||||||
Taxes
recoverable through future rates
|
$ | 71.6 | $ | 46.8 | $ | 118.4 | ||||||
Loss
on reacquired debt
|
5.7 | 0.3 | 6.0 | |||||||||
Cost
of removal
|
9.6 | - | 9.6 | |||||||||
Asset
retirement obligations
|
21.1 | 12.0 | 33.1 | |||||||||
Pension
settlements
|
18.0 | - | 18.0 | |||||||||
Pension
and post-retirement costs
|
417.6 | 63.0 | 480.6 | |||||||||
Deferred
customer programs
|
22.6 | 0.4 | 23.0 | |||||||||
Rate
case expenses
|
2.9 | 0.6 | 3.5 | |||||||||
Skill
set realignment costs
|
7.5 | - | 7.5 | |||||||||
Under-recovery
of energy costs
|
1.6 | 52.0 | 53.6 | |||||||||
Acquisition
transition costs
|
25.5 | 17.6 | 43.1 | |||||||||
St.
Joseph Light & Power acquisition
|
- | 3.6 | 3.6 | |||||||||
Storm
damage
|
- | 6.4 | 6.4 | |||||||||
Derivative
instruments
|
- | 9.7 | 9.7 | |||||||||
Other
|
5.4 | 3.3 | 8.7 | |||||||||
Total
|
$ | 609.1 | $ | 215.7 | $ | 824.8 | ||||||
Regulatory
Liabilities
|
||||||||||||
Emission
allowances
|
$ | 86.5 | $ | 1.0 | $ | 87.5 | ||||||
Asset
retirement obligations
|
22.7 | - | 22.7 | |||||||||
Pension
|
- | 25.0 | 25.0 | |||||||||
Cost
of removal
|
- | 58.1 | 58.1 | |||||||||
Other
|
6.6 | 9.5 | 16.1 | |||||||||
Total
|
$ | 115.8 | $ | 93.6 | $ | 209.4 | ||||||
8.
|
PENSION
PLANS AND OTHER EMPLOYEE BENEFITS
|
Great
Plains Energy
|
|||||||||||||||||
Pension
Benefits
|
Other
Benefits
|
||||||||||||||||
Three
Months Ended September 30
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Components
of net periodic benefit costs
|
(millions)
|
||||||||||||||||
Service
cost
|
$ | 7.3 | $ | 5.8 | $ | 1.1 | $ | 0.5 | |||||||||
Interest
cost
|
11.8 | 10.7 | 2.0 | 1.7 | |||||||||||||
Expected
return on plan assets
|
(8.1 | ) | (11.0 | ) | (0.4 | ) | (0.3 | ) | |||||||||
Prior
service cost
|
1.0 | 1.3 | 1.9 | 0.9 | |||||||||||||
Recognized
net actuarial loss (gain)
|
9.1 | 8.1 | (0.1 | ) | 0.1 | ||||||||||||
Transition
obligation
|
- | - | 0.3 | 0.3 | |||||||||||||
Net
periodic benefit costs before
|
|||||||||||||||||
regulatory
adjustment
|
21.1 | 14.9 | 4.8 | 3.2 | |||||||||||||
Regulatory
adjustment
|
(7.2 | ) | (0.8 | ) | - | (0.1 | ) | ||||||||||
Net
periodic benefit costs
|
$ | 13.9 | $ | 14.1 | $ | 4.8 | $ | 3.1 | |||||||||
Great
Plains Energy
|
||||||||||||||||
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||
Year
to Date September 30
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Components
of net periodic benefit costs
|
(millions)
|
|||||||||||||||
Service
cost
|
$ | 21.8 | $ | 14.8 | $ | 3.1 | $ | 1.3 | ||||||||
Interest
cost
|
35.4 | 26.6 | 6.2 | 3.9 | ||||||||||||
Expected
return on plan assets
|
(24.1 | ) | (27.1 | ) | (1.2 | ) | (0.7 | ) | ||||||||
Prior
service cost
|
3.0 | 3.4 | 5.2 | 2.3 | ||||||||||||
Recognized
net actuarial loss (gain)
|
27.3 | 24.2 | (0.3 | ) | 0.4 | |||||||||||
Transition
obligation
|
- | - | 1.0 | 0.9 | ||||||||||||
Settlement
charge
|
0.1 | - | - | - | ||||||||||||
Net
periodic benefit costs before
|
||||||||||||||||
regulatory
adjustment
|
63.5 | 41.9 | 14.0 | 8.1 | ||||||||||||
Regulatory
adjustment
|
(20.3 | ) | (3.1 | ) | (0.2 | ) | (0.1 | ) | ||||||||
Net
periodic benefit costs
|
$ | 43.2 | $ | 38.8 | $ | 13.8 | $ | 8.0 | ||||||||
KCP&L
|
||||||||||||||||
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||
Three
Months Ended September 30
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Components
of net periodic benefit costs
|
(millions)
|
|||||||||||||||
Service
cost
|
$ | 8.3 | $ | 5.7 | $ | 0.8 | $ | 0.3 | ||||||||
Interest
cost
|
13.1 | 10.3 | 1.5 | 1.3 | ||||||||||||
Expected
return on plan assets
|
(9.2 | ) | (10.5 | ) | (0.2 | ) | (0.2 | ) | ||||||||
Prior
service cost
|
1.2 | 1.3 | 0.8 | 0.6 | ||||||||||||
Recognized
net actuarial loss
|
10.3 | 8.0 | 0.1 | 0.1 | ||||||||||||
Transition
obligation
|
- | - | 0.2 | 0.3 | ||||||||||||
Net
periodic benefit costs before
|
||||||||||||||||
regulatory
adjustment
|
23.7 | 14.8 | 3.2 | 2.4 | ||||||||||||
Regulatory
adjustment
|
(11.6 | ) | (2.4 | ) | 0.1 | (0.1 | ) | |||||||||
Net
periodic benefit costs
|
$ | 12.1 | $ | 12.4 | $ | 3.3 | $ | 2.3 | ||||||||
KCP&L
|
||||||||||||||||
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||
Year
to Date September 30
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Components
of net periodic benefit costs
|
(millions)
|
|||||||||||||||
Service
cost
|
$ | 21.8 | $ | 14.6 | $ | 2.3 | $ | 1.1 | ||||||||
Interest
cost
|
34.6 | 26.0 | 4.6 | 3.5 | ||||||||||||
Expected
return on plan assets
|
(24.1 | ) | (26.4 | ) | (0.8 | ) | (0.6 | ) | ||||||||
Prior
service cost
|
3.1 | 3.4 | 2.3 | 2.0 | ||||||||||||
Recognized
net actuarial loss
|
27.2 | 23.9 | 0.2 | 0.4 | ||||||||||||
Transition
obligation
|
- | - | 0.6 | 0.9 | ||||||||||||
Net
periodic benefit costs before
|
||||||||||||||||
regulatory
adjustment
|
62.6 | 41.5 | 9.2 | 7.3 | ||||||||||||
Regulatory
adjustment
|
(25.7 | ) | (4.6 | ) | 0.1 | (0.1 | ) | |||||||||
Net
periodic benefit costs
|
$ | 36.9 | $ | 36.9 | $ | 9.3 | $ | 7.2 | ||||||||
9.
|
EQUITY
COMPENSATION
|
Three Months Ended |
Year
to Date
|
|||||||||||||||
September 30 |
September
30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Great
Plains Energy
|
(millions)
|
|||||||||||||||
Compensation
expense
|
$ | 1.7 | $ | 2.0 | $ | 4.2 | $ | 6.9 | ||||||||
Income
tax benefits
|
0.5 | 0.6 | 1.0 | 2.1 | ||||||||||||
KCP&L
|
||||||||||||||||
Compensation
expense
|
1.2 | 1.7 | 2.8 | 4.7 | ||||||||||||
Income
tax benefits
|
0.4 | 0.5 | 0.5 | 1.6 | ||||||||||||
Performance
|
Grant
Date
|
||||||
Shares
|
Fair
Value*
|
||||||
Beginning
balance
|
314,511 | $ | 28.47 | ||||
Performance
adjustment
|
(88,056 ) | ||||||
Granted
|
196,431 | 14.35 | |||||
Amendment
effect
|
(101,589 ) | 29.28 | |||||
Forfeited
|
(22,995 ) | 26.72 | |||||
Ending
balance
|
298,302 | 19.12 | |||||
* weighted-average
|
`
|
||||||||
Nonvested
|
Grant
Date
|
|||||||
Restricted
stock
|
Fair
Value*
|
|||||||
Beginning
balance
|
458,796 | $ | 30.54 | |||||
Amendment
effect
|
106,443 | 14.39 | ||||||
Granted
and issued
|
266,651 | 14.50 | ||||||
Vested
|
(173,962 ) | 31.27 | ||||||
Forfeited
|
(38,072 ) | 28.81 | ||||||
Ending
balance
|
619,856 | 20.77 | ||||||
* weighted-average
|
Exercise
|
||||||||
Stock
Options
|
Shares
|
Price*
|
||||||
Beginning
balance
|
520,829 | $ | 76.10 | |||||
Exercised
|
(2,758 | ) | 10.94 | |||||
Forfeited
or expired
|
(211,090 | ) | 139.95 | |||||
Outstanding
and exercisable at September 30, 2009
|
306,981 | 32.78 | ||||||
* weighted-average
|
Outstanding
and Exercisable Options
|
||||||||||||
Weighted
Average
|
||||||||||||
Remaining
|
Weighted
|
|||||||||||
Exercise
|
Number
of
|
Contractual
Life
|
Average
|
|||||||||
Price
Range
|
Shares
|
in
Years
|
Exercise
Price
|
|||||||||
$ 9.21 - $11.64 | 59,598 | 0.2 | $ | 11.56 | ||||||||
$ 23.91 - $27.73 | 225,679 | 2.2 | 24.56 | |||||||||
$ 121.90 - $181.11 | 13,876 | 0.8 | 150.67 | |||||||||
$ 221.82 - $251.86 | 7,828 | 1.6 | 222.23 | |||||||||
Total
|
306,981 | 1.7 | ||||||||||
Share
|
Grant
Date
|
|||||||
Units
|
Fair
Value*
|
|||||||
Beginning
balance
|
7,588 | $ | 27.94 | |||||
Issued
|
13,635 | 19.29 | ||||||
Ending
balance
|
21,223 | 22.38 | ||||||
* weighted-average
|
10.
|
SHORT-TERM
BORROWINGS AND SHORT-TERM BANK LINES OF
CREDIT
|
11.
|
LONG-TERM
DEBT
|
September
30
|
December
31
|
||||||||||
Year
Due
|
2009
|
2008
|
|||||||||
KCP&L
|
(millions)
|
||||||||||
General
Mortgage Bonds
|
|||||||||||
4.90%*
EIRR bonds
|
2012-2035 | $ | 158.8 | $ | 158.8 | ||||||
7.15%
Series 2009A
|
2019 | 400.0 | - | ||||||||
4.65%
EIRR Series 2005
|
2035 | 50.0 | - | ||||||||
5.125%
EIRR Series 2007A-1
|
2035 | 63.3 | - | ||||||||
5.00%
EIRR Series 2007A-2
|
2035 | 10.0 | - | ||||||||
5.375%
EIRR Series 2007B
|
2035 | 73.2 | - | ||||||||
Unamortized
discount
|
(0.4 | ) | - | ||||||||
Senior
Notes
|
|||||||||||
6.50%
Series
|
2011 | 150.0 | 150.0 | ||||||||
5.85%
Series
|
2017 | 250.0 | 250.0 | ||||||||
6.375%
Series
|
2018 | 350.0 | 350.0 | ||||||||
6.05%
Series
|
2035 | 250.0 | 250.0 | ||||||||
Unamortized
discount
|
(1.8 | ) | (1.8 | ) | |||||||
EIRR
Bonds
|
|||||||||||
4.65%
Series 2005
|
- | 50.0 | |||||||||
5.125%
Series 2007A-1
|
- | 63.3 | |||||||||
5.00%
Series 2007A-2
|
- | 10.0 | |||||||||
5.375%
Series 2007B
|
- | 73.2 | |||||||||
4.90%
Series 2008
|
2038 | 23.4 | 23.4 | ||||||||
Other
|
2018 | 3.5 | - | ||||||||
Current
maturities
|
(0.2 | ) | - | ||||||||
Total
KCP&L
|
1,779.8 | 1,376.9 | |||||||||
GMO
|
|||||||||||
First
Mortgage Bonds
|
|||||||||||
9.44%
Series
|
2010-2021 | 13.5 | 14.6 | ||||||||
Pollution
Control Bonds
|
|||||||||||
5.85%
SJLP Pollution Control
|
2013 | 5.6 | 5.6 | ||||||||
0.344%
Wamego Series 1996
|
2026 | 7.3 | 7.3 | ||||||||
2.133%
State Environmental 1993
|
2028 | 5.0 | 5.0 | ||||||||
Senior
Notes
|
|||||||||||
7.625%
Series
|
2009 | 68.5 | 68.5 | ||||||||
7.95%
Series
|
2011 | 137.3 | 137.3 | ||||||||
7.75%
Series
|
2011 | 197.0 | 197.0 | ||||||||
11.875%
Series
|
2012 | 500.0 | 500.0 | ||||||||
8.27%
Series
|
2021 | 80.9 | 80.9 | ||||||||
Fair
Value Adjustment
|
92.8 | 117.5 | |||||||||
Medium
Term Notes
|
|||||||||||
7.16%
Series
|
2013 | 6.0 | 6.0 | ||||||||
7.33%
Series
|
2023 | 3.0 | 3.0 | ||||||||
7.17%
Series
|
2023 | 7.0 | 7.0 | ||||||||
Other
|
2009 | 0.3 | 1.1 | ||||||||
Current
maturities
|
(69.9 | ) | (70.7 | ) | |||||||
Total
GMO
|
1,054.3 | 1,080.1 | |||||||||
Other
Great Plains Energy
|
|||||||||||
6.875%
Senior Notes
|
2017 | 100.0 | 100.0 | ||||||||
10.00%
Equity Units Subordinated Notes
|
2042 | 287.5 | - | ||||||||
Unamortized
discount
|
(0.4 | ) | (0.4 | ) | |||||||
Total
Great Plains Energy excluding current maturities
|
$ | 3,221.2 | $ | 2,556.6 | |||||||
* Weighted-average
interest rates at September 30, 2009.
|
Three Months Ended |
Year
to Date
|
|||||||||||||||
September
30
|
September
30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(millions)
|
||||||||||||||||
KCP&L
|
$ | 0.5 | $ | 0.4 | $ | 1.5 | $ | 1.2 | ||||||||
Other
Great Plains Energy
|
0.8 | 0.3 | 1.7 | 0.6 | ||||||||||||
Total
Great Plains Energy
|
$ | 1.3 | $ | 0.7 | $ | 3.2 | $ | 1.8 | ||||||||
12.
|
COMMON
SHAREHOLDERS’ EQUITY
|
13.
|
COMMITMENTS
AND CONTINGENCIES
|
14.
|
LEGAL
PROCEEDINGS
|
15.
|
RELATED
PARTY TRANSACTIONS AND
RELATIONSHIPS
|
September
30
|
December
31
|
|||||||
2009
|
2008
|
|||||||
(millions)
|
||||||||
Receivable
from GMO
|
$ | 16.2 | $ | 23.7 | ||||
Receivable
from Services
|
0.3 | 4.8 | ||||||
Payable
to Great Plains Energy
|
(26.2 | ) | (1.2 | ) | ||||
Payable
to MPS Merchant
|
(3.4 | ) | (3.4 | ) | ||||
16.
|
DERIVATIVE
INSTRUMENTS
|
September 30 | December 31 | |||||||||||||||
2009
|
2008
|
|||||||||||||||
Notional
|
Notional
|
|||||||||||||||
Contract
|
Fair
|
Contract
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Great
Plains Energy
|
(millions)
|
|||||||||||||||
Swap
contracts
|
||||||||||||||||
Cash
flow hedges
|
$ | - | $ | - | $ | 0.7 | $ | (0.2 | ) | |||||||
Non-hedging
derivatives
|
- | - | 46.2 | (7.4 | ) | |||||||||||
Futures
contracts
|
||||||||||||||||
Cash
flow hedges
|
3.9 | 0.2 | 4.5 | 0.6 | ||||||||||||
Non-hedging
derivatives
|
29.7 | (0.8 | ) | - | - | |||||||||||
Forward
contracts
|
||||||||||||||||
Non-hedging
derivatives
|
249.7 | 9.6 | 317.3 | 7.8 | ||||||||||||
Option
contracts
|
||||||||||||||||
Non-hedging
derivatives
|
2.0 | - | 28.2 | 0.2 | ||||||||||||
Anticipated
debt issuance
|
||||||||||||||||
Forward
starting swap
|
- | - | 250.0 | (80.1 | ) | |||||||||||
KCP&L
|
||||||||||||||||
Swap
contracts
|
||||||||||||||||
Cash
flow hedges
|
- | - | 0.7 | (0.2 | ) | |||||||||||
Future
contracts
|
||||||||||||||||
Cash
flow hedges
|
3.9 | 0.2 | 4.5 | 0.6 | ||||||||||||
Anticipated
debt issuance
|
||||||||||||||||
Forward
starting swap
|
- | - | 250.0 | (80.1 | ) | |||||||||||
Great
Plains Energy
|
||||||||
Balance
Sheet
|
Asset
Derivatives
|
Liability
Derivatives
|
||||||
September
30, 2009
|
Classification
|
Fair
Value
|
Fair
Value
|
|||||
Derivatives
Designated as Hedging Instruments
|
(millions)
|
|||||||
Commodity
contracts
|
Derivative
instruments
|
$ 0.3
|
$ 0.1
|
|||||
Derivatives
Not Designated as Hedging Instruments
|
||||||||
Commodity
contracts
|
Derivative
instruments
|
10.1
|
1.3
|
|||||
Total
Derivatives
|
$ 10.4
|
$ 1.4
|
||||||
KCP&L
|
||||||||
Balance
Sheet
|
Asset
Derivatives
|
Liability
Derivatives
|
||||||
September
30, 2009
|
Classification
|
Fair
Value
|
Fair
Value
|
|||||
Derivatives
Designated as Hedging Instruments
|
(millions)
|
|||||||
Commodity
contracts
|
Derivative
instruments
|
$ 0.3
|
$ 0.1
|
|||||
Derivatives
in Cash Flow Hedging Relationship
|
||||||||||
Gain
(Loss) Reclassified from
|
||||||||||
Accumulated
OCI into Income
|
||||||||||
(Effective
Portion)
|
||||||||||
Amount
of Gain
|
||||||||||
(Loss)
Recognized
|
||||||||||
in
OCI on Derivatives
|
Income Statement | |||||||||
Great
Plains Energy
|
(Effective
Portion)
|
Classification |
Amount
|
|||||||
Three
Months Ended September 30, 2009
|
(millions)
|
(millions)
|
||||||||
Interest
rate contracts
|
$ | - |
Interest
charges
|
$ | (2.1 | ) | ||||
Commodity
contracts
|
(0.6) |
Fuel
|
(1.1 | ) | ||||||
Income
tax benefit (expense)
|
0.2 |
Income
tax benefit (expense)
|
1.1 | |||||||
Total
|
$ | (0.4) |
Total
|
$ | (2.1 | ) | ||||
Year
to Date September 30, 2009
|
||||||||||
Interest
rate contracts
|
$ | 1.0 |
Interest
charges
|
$ | (5.6 | ) | ||||
Commodity
contracts
|
(0.9) |
Fuel
|
(1.1 | ) | ||||||
Income
tax benefit (expense)
|
- |
Income
tax benefit (expense)
|
2.6 | |||||||
Total
|
$ | 0.1 |
Total
|
$ | (4.1 | ) | ||||
KCP&L
|
||||||||||
Three
Months Ended September 30, 2009
|
||||||||||
Interest
rate contracts
|
$ | - |
Interest
charges
|
$ | (2.2 | ) | ||||
Commodity
contracts
|
(0.6) |
Fuel
|
(1.1 | ) | ||||||
Income
tax benefit (expense)
|
0.2 |
Income
tax benefit (expense)
|
1.3 | |||||||
Total
|
$ | (0.4) |
Total
|
$ | (2.0 | ) | ||||
Year
to Date September 30, 2009
|
||||||||||
Interest
rate contracts
|
$ | 1.0 |
Interest
charges
|
$ | (5.3 | ) | ||||
Commodity
contracts
|
(0.9) |
Fuel
|
(1.1 | ) | ||||||
Income
tax benefit (expense)
|
- |
Income
tax benefit (expense)
|
2.5 | |||||||
Total
|
$ | 0.1 |
Total
|
$ | (3.9 | ) | ||||
Derivatives
in Regulatory Account Relationship
|
||||||||
Gain (Loss) Reclassified from | ||||||||
Regulatory Account | ||||||||
Amount
of Gain (Loss)
|
||||||||
Recognized
on Regulatory
|
||||||||
Account
on Derivatives
|
Income Statement |
|
||||||
Great
Plains Energy
|
(Effective
Portion)
|
Classification |
Amount
|
|||||
Three
Months Ended September 30, 2009
|
(millions)
|
(millions)
|
||||||
Commodity
contracts
|
$ (0.2)
|
Fuel |
$ (10.9)
|
|||||
Total
|
$ (0.2)
|
Total |
$ (10.9)
|
|||||
Year
to Date September 30, 2009
|
||||||||
Commodity
contracts
|
$ (11.1)
|
Fuel |
$ (17.0)
|
|||||
Total
|
$ (11.1)
|
Total |
$ (17.0)
|
|||||
Great
Plains Energy
|
KCP&L
|
|||||||||||||||
September
30
|
December
31
|
September
30
|
December
31
|
|||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(millions)
|
||||||||||||||||
Current
assets
|
$ | 13.2 | $ | 13.7 | $ | 13.2 | $ | 13.7 | ||||||||
Current
liabilities
|
(87.1 | ) | (94.6 | ) | (83.5 | ) | (90.5 | ) | ||||||||
Deferred
income taxes
|
28.7 | 31.5 | 27.4 | 29.9 | ||||||||||||
Total
|
$ | (45.2 | ) | $ | (49.4 | ) | $ | (42.9 | ) | $ | (46.9 | ) | ||||
Three Months Ended |
Year
to Date
|
|||||||||||||||
September
30
|
September
30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Great
Plains Energy
|
(millions)
|
|||||||||||||||
Fuel
expense
|
$ | 1.1 | $ | (1.6 | ) | $ | 1.1 | $ | (2.3 | ) | ||||||
Interest
expense
|
2.1 | 0.9 | 5.6 | 2.0 | ||||||||||||
Income
tax benefit (expense)
|
(1.1 | ) | 0.3 | (2.6 | ) | 0.1 | ||||||||||
Loss
from discontinued operations
|
||||||||||||||||
Purchased
power expense
|
- | - | - | (106.1 | ) | |||||||||||
Income
tax benefit (expense)
|
- | - | - | 43.8 | ||||||||||||
OCI
|
$ | 2.1 | $ | (0.4 | ) | $ | 4.1 | $ | (62.5 | ) | ||||||
KCP&L
|
||||||||||||||||
Fuel
expense
|
$ | 1.1 | $ | (1.6 | ) | $ | 1.1 | $ | (2.3 | ) | ||||||
Interest
expense
|
2.2 | 0.8 | 5.3 | 1.6 | ||||||||||||
Income
tax benefit (expense)
|
(1.3 | ) | 0.3 | (2.5 | ) | 0.3 | ||||||||||
OCI
|
$ | 2.0 | $ | (0.5 | ) | $ | 3.9 | $ | (0.4 | ) | ||||||
17.
|
FAIR
VALUE MEASUREMENTS
|
Fair
Value Measurements Using
|
||||||||||||||||||||
Description
|
September
30
2009
|
Netting
(c)
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
|||||||||||||||
KCP&L
|
(millions)
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||
Derivative
instruments
(a)
|
$ | - | $ | (0.3 | ) | $ | 0.3 | $ | - | $ | - | |||||||||
Nuclear
decommissioning trust
(b)
|
||||||||||||||||||||
Equity
securities
|
42.8 | - | 42.8 | - | - | |||||||||||||||
Debt
securities
|
||||||||||||||||||||
U.S.
Treasury
|
21.4 | - | 21.4 | - | - | |||||||||||||||
U.S.
Agency
|
8.9 | - | - | 6.1 | 2.8 | |||||||||||||||
State
and local obligations
|
4.4 | - | - | 4.0 | 0.4 | |||||||||||||||
Corporate
bonds
|
22.7 | - | - | 22.7 | - | |||||||||||||||
Mortgage
backed securities
|
5.6 | - | - | 0.2 | 5.4 | |||||||||||||||
Foreign
governments
|
0.7 | - | - | 0.7 | - | |||||||||||||||
Other
|
1.2 | - | - | 1.2 | - | |||||||||||||||
Total
Nuclear Decommissioning Trust
|
107.7 | - | 64.2 | 34.9 | 8.6 | |||||||||||||||
Total
|
107.7 | (0.3 | ) | 64.5 | 34.9 | 8.6 | ||||||||||||||
Liabilities
|
||||||||||||||||||||
Derivative
instruments
(a)
|
- | (0.1 | ) | - | 0.1 | - | ||||||||||||||
Total
|
$ | - | $ | (0.1 | ) | $ | - | $ | 0.1 | $ | - | |||||||||
Other
Great Plains Energy
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Derivative
instruments
(a)
|
$ | 9.6 | $ | (0.5 | ) | $ | 0.5 | $ | 5.3 | $ | 4.3 | |||||||||
SERP
rabbi trust
(b)
|
||||||||||||||||||||
Equity
securities
|
0.2 | - | 0.2 | - | - | |||||||||||||||
Debt
securities
|
6.8 | - | - | 6.8 | - | |||||||||||||||
Total
SERP rabbi trust
|
7.0 | - | 0.2 | 6.8 | - | |||||||||||||||
Total
|
16.6 | (0.5 | ) | 0.7 | 12.1 | 4.3 | ||||||||||||||
Liabilities
|
||||||||||||||||||||
Derivative
instruments
(a)
|
- | (1.3 | ) | 1.3 | - | - | ||||||||||||||
Total
|
$ | - | $ | (1.3 | ) | $ | 1.3 | $ | - | $ | - | |||||||||
Great
Plains Energy
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Derivative
instruments
(a)
|
$ | 9.6 | $ | (0.8 | ) | $ | 0.8 | $ | 5.3 | $ | 4.3 | |||||||||
Nuclear
decommissioning trust
(b)
|
107.7 | - | 64.2 | 34.9 | 8.6 | |||||||||||||||
SERP
rabbi trust
(b)
|
7.0 | - | 0.2 | 6.8 | - | |||||||||||||||
Total
|
124.3 | (0.8 | ) | 65.2 | 47.0 | 12.9 | ||||||||||||||
Liabilities
|
||||||||||||||||||||
Derivative
instruments
(a)
|
- | (1.4 | ) | 1.3 | 0.1 | - | ||||||||||||||
Total
|
$ | - | $ | (1.4 | ) | $ | 1.3 | $ | 0.1 | $ | - | |||||||||
18.
|
TAXES
|
Three
Months Ended
|
Year
to Date
|
|||||||||||||||
September 30 | September 30 | |||||||||||||||
Great
Plains Energy
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Current
income taxes
|
(millions)
|
|||||||||||||||
Federal
|
$ | 16.1 | $ | 30.3 | $ | (1.3 | ) | $ | 10.6 | |||||||
State
|
1.1 | (5.3 | ) | (2.6 | ) | 1.0 | ||||||||||
Foreign
|
- | - | 1.2 | - | ||||||||||||
Total
|
17.2 | 25.0 | (2.7 | ) | 11.6 | |||||||||||
Deferred
income taxes
|
||||||||||||||||
Federal
|
(5.8 | ) | 3.5 | (13.6 | ) | (13.1 | ) | |||||||||
State
|
4.0 | 9.3 | 8.8 | 40.5 | ||||||||||||
Total
|
(1.8 | ) | 12.8 | (4.8 | ) | 27.4 | ||||||||||
Noncurrent
income taxes
|
||||||||||||||||
Federal
|
7.7 | (1.7 | ) | 6.8 | (0.4 | ) | ||||||||||
State
|
0.9 | (1.0 | ) | 0.8 | (0.7 | ) | ||||||||||
Foreign
|
0.6 | - | (1.9 | ) | - | |||||||||||
Total
|
9.2 | (2.7 | ) | 5.7 | (1.1 | ) | ||||||||||
Investment
tax credit
|
||||||||||||||||
Deferral
|
12.2 | 11.5 | 28.4 | 63.0 | ||||||||||||
Amortization
|
(0.6 | ) | (0.6 | ) | (1.7 | ) | (1.3 | ) | ||||||||
Total
|
11.6 | 10.9 | 26.7 | 61.7 | ||||||||||||
Total
income tax expense
|
36.2 | 46.0 | 24.9 | 99.6 | ||||||||||||
Less: taxes
on discontinued operations
|
||||||||||||||||
Current
tax expense
|
- | 0.1 | - | 25.8 | ||||||||||||
Deferred
tax expense (benefit)
|
0.6 | - | (1.4 | ) | 4.5 | |||||||||||
Noncurrent
income tax expense
|
- | - | - | 0.9 | ||||||||||||
Income
tax expense on continuing operations
|
$ | 35.6 | $ | 45.9 | $ | 26.3 | $ | 68.4 | ||||||||
Three
Months Ended
|
Year
to Date
|
|||||||||||||||
September
30
|
September
30
|
|||||||||||||||
KCP&L
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Current
income taxes
|
(millions)
|
|||||||||||||||
Federal
|
$ | 41.4 | $ | 37.7 | $ | 51.9 | $ | 3.1 | ||||||||
State
|
5.0 | 1.6 | 6.9 | 1.9 | ||||||||||||
Total
|
46.4 | 39.3 | 58.8 | 5.0 | ||||||||||||
Deferred
income taxes
|
||||||||||||||||
Federal
|
(34.8 | ) | (15.8 | ) | (49.6 | ) | (37.4 | ) | ||||||||
State
|
(1.0 | ) | 2.6 | - | 33.8 | |||||||||||
Total
|
(35.8 | ) | (13.2 | ) | (49.6 | ) | (3.6 | ) | ||||||||
Noncurrent
income taxes
|
||||||||||||||||
Federal
|
3.6 | (2.9 | ) | 2.9 | (2.3 | ) | ||||||||||
State
|
0.4 | (0.4 | ) | 0.4 | (0.3 | ) | ||||||||||
Total
|
4.0 | (3.3 | ) | 3.3 | (2.6 | ) | ||||||||||
Investment
tax credit
|
||||||||||||||||
Deferral
|
12.2 | 11.5 | 28.4 | 63.0 | ||||||||||||
Amortization
|
(0.4 | ) | (0.4 | ) | (1.1 | ) | (1.1 | ) | ||||||||
Total
|
11.8 | 11.1 | 27.3 | 61.9 | ||||||||||||
Total
|
$ | 26.4 | $ | 33.9 | $ | 39.8 | $ | 60.7 | ||||||||
Great
Plains Energy
|
Income
Tax Expense
|
Income
Tax Rate
|
||||||||||||||
Three
Months Ended September 30
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
(millions)
|
||||||||||||||||
Federal
statutory income tax
|
$ | 39.9 | $ | 52.7 | 35.0 | % | 35.0 | % | ||||||||
Differences
between book and tax
|
||||||||||||||||
depreciation
not normalized
|
(2.4 | ) | (1.2 | ) | (2.1 | ) | (0.8 | ) | ||||||||
Amortization
of investment tax credits
|
(0.6 | ) | (0.6 | ) | (0.5 | ) | (0.4 | ) | ||||||||
Federal
income tax credits
|
(1.9 | ) | (2.1 | ) | (1.7 | ) | (1.4 | ) | ||||||||
State
income taxes
|
4.0 | 2.0 | 3.5 | 1.3 | ||||||||||||
Changes
in uncertain tax positions, net
|
0.8 | 0.8 | 0.6 | 0.6 | ||||||||||||
GMO
transaction costs
|
- | (1.6 | ) | - | (1.0 | ) | ||||||||||
Other
|
(4.2 | ) | (4.1 | ) | (3.5 | ) | (2.8 | ) | ||||||||
Total
|
$ | 35.6 | $ | 45.9 | 31.3 | % | 30.5 | % | ||||||||
Great
Plains Energy
|
Income
Tax Expense
|
Income
Tax Rate
|
||||||||||||||
Year
to Date September 30
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
(millions)
|
||||||||||||||||
Federal
statutory income tax
|
$ | 57.1 | $ | 63.3 | 35.0 | % | 35.0 | % | ||||||||
Differences
between book and tax
|
||||||||||||||||
depreciation
not normalized
|
(8.6 | ) | (2.5 | ) | (5.3 | ) | (1.4 | ) | ||||||||
Amortization
of investment tax credits
|
(1.7 | ) | (1.3 | ) | (1.0 | ) | (0.7 | ) | ||||||||
Federal
income tax credits
|
(6.5 | ) | (7.1 | ) | (4.0 | ) | (3.9 | ) | ||||||||
State
income taxes
|
5.4 | 2.9 | 3.3 | 1.6 | ||||||||||||
Rate
change on deferred taxes
|
- | 19.3 | - | 10.7 | ||||||||||||
Changes
in uncertain tax positions, net
|
(72.5 | ) | 0.2 | (44.5 | ) | 0.1 | ||||||||||
GMO
transaction costs
|
- | (1.9 | ) | - | (1.0 | ) | ||||||||||
Valuation
allowance
|
56.5 | - | 34.6 | - | ||||||||||||
Other
|
(3.4 | ) | (4.5 | ) | (2.0 | ) | (2.6 | ) | ||||||||
Total
|
$ | 26.3 | $ | 68.4 | 16.1 | % | 37.8 | % | ||||||||
KCP&L
|
Income
Tax Expense
|
Income
Tax Rate
|
||||||||||||||
Three
Months Ended September 30
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
(millions)
|
||||||||||||||||
Federal
statutory income tax
|
$ | 32.2 | $ | 41.2 | 35.0 | % | 35.0 | % | ||||||||
Differences
between book and tax
|
||||||||||||||||
depreciation
not normalized
|
(3.0 | ) | (1.7 | ) | (3.2 | ) | (1.4 | ) | ||||||||
Amortization
of investment tax credits
|
(0.4 | ) | (0.4 | ) | (0.4 | ) | (0.3 | ) | ||||||||
Federal
income tax credits
|
(1.6 | ) | (1.9 | ) | (1.8 | ) | (1.6 | ) | ||||||||
State
income taxes
|
3.0 | 2.6 | 3.2 | 2.2 | ||||||||||||
Changes
in uncertain tax positions, net
|
(0.1 | ) | 0.1 | (0.1 | ) | 0.1 | ||||||||||
Parent
company tax benefits
(a)
|
- | (1.5 | ) | - | (1.3 | ) | ||||||||||
Other
|
(3.7 | ) | (4.5 | ) | (4.0 | ) | (3.9 | ) | ||||||||
Total
|
$ | 26.4 | $ | 33.9 | 28.7 | % | 28.8 | % | ||||||||
KCP&L
|
Income
Tax Expense
|
Income
Tax Rate
|
||||||||||||||
Year
to Date September 30
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
(millions)
|
||||||||||||||||
Federal
statutory income tax
|
$ | 52.0 | $ | 59.3 | 35.0 | % | 35.0 | % | ||||||||
Differences
between book and tax
|
||||||||||||||||
depreciation
not normalized
|
(6.8 | ) | (3.0 | ) | (4.6 | ) | (1.8 | ) | ||||||||
Amortization
of investment tax credits
|
(1.1 | ) | (1.1 | ) | (0.7 | ) | (0.6 | ) | ||||||||
Federal
income tax credits
|
(5.8 | ) | (6.8 | ) | (3.9 | ) | (4.0 | ) | ||||||||
State
income taxes
|
4.8 | 3.9 | 3.2 | 2.3 | ||||||||||||
Rate
change on deferred taxes
|
- | 20.3 | - | 12.0 | ||||||||||||
Changes
in uncertain tax positions, net
|
- | (0.5 | ) | - | (0.3 | ) | ||||||||||
Parent
company tax benefits
(a)
|
- | (6.7 | ) | - | (3.9 | ) | ||||||||||
Other
|
(3.3 | ) | (4.7 | ) | (2.2 | ) | (2.9 | ) | ||||||||
Total
|
$ | 39.8 | $ | 60.7 | 26.8 | % | 35.8 | % | ||||||||
(a)
The
tax sharing agreement between Great Plains Energy and its subsidiaries was
modified on
|
||||||||||||||||
July 14, 2008. As part of the new agreement, parent company tax
benefits are no longer allocated
|
||||||||||||||||
to
KCP&L or other subsidiaries.
|
Great
Plains Energy
|
KCP&L
|
|||||||||||||||
September 30 | December 31 | September 30 | December 31 | |||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(millions)
|
||||||||||||||||
Beginning
balance
|
$ | 97.3 | $ | 21.9 | $ | 17.6 | $ | 19.6 | ||||||||
Additions
for current year tax positions
|
3.4 | 5.3 | 2.9 | 3.8 | ||||||||||||
Additions
for prior year tax positions
|
7.5 | 2.6 | 3.2 | 2.6 | ||||||||||||
Additions
for GMO prior year tax positions
|
11.9 | 77.0 | - | - | ||||||||||||
Reductions
for prior year tax positions
|
(1.1 | ) | (0.8 | ) | (0.7 | ) | (0.7 | ) | ||||||||
Settlements
|
(76.7 | ) | (8.5 | ) | (2.1 | ) | (7.5 | ) | ||||||||
Statute
expirations
|
- | (0.2 | ) | - | (0.2 | ) | ||||||||||
Foreign
currency translation adjustments
|
(0.6 | ) | - | - | - | |||||||||||
Ending
balance
|
$ | 41.7 | $ | 97.3 | $ | 20.9 | $ | 17.6 | ||||||||
19.
|
SEGMENTS
AND RELATED INFORMATION
|
Three
Months Ended
|
Electric
|
|
Great
Plains
|
|||||||||
September
30, 2009
|
Utility |
Other
|
Energy
|
|||||||||
(millions)
|
||||||||||||
Operating
revenues
|
$ | 587.7 | $ | - | $ | 587.7 | ||||||
Depreciation
and amortization
|
(77.9 | ) | - | (77.9 | ) | |||||||
Interest
charges
|
(38.6 | ) | (10.4 | ) | (49.0 | ) | ||||||
Income
tax benefit (expense)
|
(42.2 | ) | 6.6 | (35.6 | ) | |||||||
Loss
from equity investments
|
- | (0.2 | ) | (0.2 | ) | |||||||
Discontinued
operations
|
- | 0.8 | 0.8 | |||||||||
Net
income (loss) attributable to Great Plains Energy
|
83.9 | (4.8 | ) | 79.1 | ||||||||
Year
to Date
|
Electric |
|
Great
Plains
|
|||||||||
September
30, 2009
|
Utility |
Other
|
Energy
|
|||||||||
(millions)
|
||||||||||||
Operating
revenues
|
$ | 1,487.4 | $ | - | $ | 1,487.4 | ||||||
Depreciation
and amortization
|
(220.3 | ) | - | (220.3 | ) | |||||||
Interest
charges
|
(113.6 | ) | (19.6 | ) | (133.2 | ) | ||||||
Income
tax benefit (expense)
|
(55.5 | ) | 29.2 | (26.3 | ) | |||||||
Loss
from equity investments
|
- | (0.4 | ) | (0.4 | ) | |||||||
Discontinued
operations
|
- | (2.3 | ) | (2.3 | ) | |||||||
Net
income attributable to Great Plains Energy
|
134.1 | 0.4 | 134.5 | |||||||||
Three
Months Ended
|
Electric |
|
Great
Plains
|
||||||||||
September
30, 2008
|
Utility |
Other
|
Energy
|
||||||||||
(millions)
|
|||||||||||||
Operating
revenues
|
$ | 593.6 | $ | - | $ | 593.6 | |||||||
Depreciation
and amortization
|
(65.4 | ) | - | (65.4 | ) | ||||||||
Interest
charges
|
(27.0 | ) | 3.4 | (23.6 | ) | ||||||||
Income
tax benefit (expense)
|
(46.0 | ) | 0.1 | (45.9 | ) | ||||||||
Loss
from equity investments
|
- | (0.3 | ) | (0.3 | ) | ||||||||
Discontinued
operations
|
- | 0.3 | 0.3 | ||||||||||
Net
income attributable to Great Plains Energy
|
102.5 | 2.5 | 105.0 | ||||||||||
Year
to Date
|
Electric |
|
Great
Plains
|
|||||||||
September
30, 2008
|
Utility |
Other
|
Energy
|
|||||||||
(millions)
|
||||||||||||
Operating
revenues
|
$ | 1,226.2 | $ | - | $ | 1,226.2 | ||||||
Depreciation
and amortization
|
(166.4 | ) | - | (166.4 | ) | |||||||
Interest
charges
|
(63.7 | ) | (11.9 | ) | (75.6 | ) | ||||||
Income
tax benefit (expense)
|
(72.8 | ) | 4.4 | (68.4 | ) | |||||||
Loss
from equity investments
|
- | (1.1 | ) | (1.1 | ) | |||||||
Discontinued
operations
|
- | 35.0 | 35.0 | |||||||||
Net
income attributable to Great Plains Energy
|
127.4 | 20.1 | 147.5 | |||||||||
20.
|
DISCONTINUED
OPERATIONS
|
Three
Months Ended
|
Year
to Date
|
|||||||||||||||
September
30
|
September
30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(millions)
|
||||||||||||||||
Revenues
|
$ | - | $ | - | $ | - | $ | 667.4 | ||||||||
Income
from operations before income taxes
(a)
|
$ | - | $ | - | $ | - | $ | 182.4 | ||||||||
Gain
(loss) on disposal before income taxes
|
1.4 | 0.4 | (3.7 | ) | (116.2 | ) | ||||||||||
Total
income (loss) on discontinued operations
|
||||||||||||||||
before income taxes | 1.4 | 0.4 | (3.7 | ) | 66.2 | |||||||||||
Income
tax benefit (expense)
|
(0.6 | ) | (0.1 | ) | 1.4 | (31.2 | ) | |||||||||
Income
(loss) from discontinued operations,
|
||||||||||||||||
net of income taxes | $ | 0.8 | $ | 0.3 | $ | (2.3 | ) | $ | 35.0 | |||||||
(a) Year to date September 30, 2008, amount include $189.1 million of unrealized net gains related to derivatives | ||||||||||||||||
contracts. |
21.
|
SUBSEQUENT
EVENTS
|
22.
|
NEW
ACCOUNTING STANDARDS
|
Current
Estimate
|
Previous
Estimate
|
|||||||||||
Range
|
Range
|
Change
|
||||||||||
(millions)
|
||||||||||||
Great
Plains Energy's 73% share of Iatan No. 2
|
$
1,153
|
-
|
$
1,201
|
$
1,125
|
-
|
$
1,201
|
$ 28
|
-
|
$ -
|
|||
KCP&L's
55% share of Iatan No. 2
|
868
|
-
|
904
|
847
|
-
|
904
|
21
|
-
|
-
|
|||
Three
Months Ended
|
Year
to Date
|
|||||||||||
September
30
|
September
30
|
|||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||
(millions)
|
||||||||||||
Operating
revenues
|
$ | 587.7 | $ | 593.6 | $ | 1,487.4 | $ | 1,226.2 | ||||
Fuel
|
(118.1 | ) | (109.7 | ) | (302.5 | ) | (222.7 | ) | ||||
Purchased
power
|
(46.1 | ) | (69.3 | ) | (140.9 | ) | (138.3 | ) | ||||
Other
operating expenses
|
(194.4 | ) | (179.6 | ) | (561.3 | ) | (458.5 | ) | ||||
Depreciation
and amortization
|
(77.9 | ) | (65.4 | ) | (220.3 | ) | (166.4 | ) | ||||
Operating
income
|
151.2 | 169.6 | 262.4 | 240.3 | ||||||||
Non-operating
income and expenses
|
12.0 | 4.9 | 34.5 | 17.3 | ||||||||
Interest
charges
|
(49.0 | ) | (23.6 | ) | (133.2 | ) | (75.6 | ) | ||||
Income
tax expense
|
(35.6 | ) | (45.9 | ) | (26.3 | ) | (68.4 | ) | ||||
Loss
from equity investments
|
(0.2 | ) | (0.3 | ) | (0.4 | ) | (1.1 | ) | ||||
Income
from continuing operations
|
78.4 | 104.7 | 137.0 | 112.5 | ||||||||
Income
(loss) from discontinued operations
|
0.8 | 0.3 | (2.3 | ) | 35.0 | |||||||
Net
income
|
79.2 | 105.0 | 134.7 | 147.5 | ||||||||
Less:
Net income attributable to noncontrolling interest
|
(0.1 | ) | - | (0.2 | ) | - | ||||||
Net
income attributable to Great Plains Energy
|
79.1 | 105.0 | 134.5 | 147.5 | ||||||||
Preferred
dividends
|
(0.4 | ) | (0.4 | ) | (1.2 | ) | (1.2 | ) | ||||
Earnings
available for common shareholders
|
$ | 78.7 | $ | 104.6 | $ | 133.3 | $ | 146.3 | ||||
Three
Months Ended
|
Year
to Date
|
|||||||||||
September
30
|
September
30
|
|||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||
(millions)
|
||||||||||||
Operating
revenues
|
$ | 587.7 | $ | 593.6 | $ | 1,487.4 | $ | 1,226.2 | ||||
Fuel
|
(118.1 | ) | (109.7 | ) | (302.5 | ) | (222.7 | ) | ||||
Purchased
power
|
(46.1 | ) | (70.3 | ) | (140.9 | ) | (139.3 | ) | ||||
Other
operating expenses
|
(191.1 | ) | (179.4 | ) | (550.5 | ) | (447.1 | ) | ||||
Depreciation
and amortization
|
(77.9 | ) | (65.4 | ) | (220.3 | ) | (166.4 | ) | ||||
Operating
income
|
154.5 | 168.8 | 273.2 | 250.7 | ||||||||
Non-operating
income and expenses
|
10.2 | 6.7 | 30.0 | 13.2 | ||||||||
Interest
charges
|
(38.6 | ) | (27.0 | ) | (113.6 | ) | (63.7 | ) | ||||
Income
tax expense
|
(42.2 | ) | (46.0 | ) | (55.5 | ) | (72.8 | ) | ||||
Net
income
|
$ | 83.9 | $ | 102.5 | $ | 134.1 | $ | 127.4 | ||||
Three
Months Ended
|
Year
to Date
|
|||||||||||||||
September
30
|
%
|
September
30
|
%
|
|||||||||||||
2009
|
2008
|
Change
(a)
|
2009
|
2008
|
Change
(a)
|
|||||||||||
Retail
revenues
|
(millions)
|
(millions)
|
||||||||||||||
Residential
|
$ | 243.3 | $ | 243.3 |
NM
|
$ | 594.2 | $ | 448.7 |
NM
|
||||||
Commercial
|
219.0 | 215.5 |
NM
|
569.4 | 459.0 |
NM
|
||||||||||
Industrial
|
48.9 | 49.0 |
NM
|
128.5 | 102.7 |
NM
|
||||||||||
Other
retail revenues
|
3.9 | 3.9 |
NM
|
12.3 | 9.0 |
NM
|
||||||||||
Fuel
recovery mechanism under (over) recovery
|
12.3 | (6.5 | ) |
NM
|
26.8 | 10.8 |
NM
|
|||||||||
Total
retail
|
527.4 | 505.2 |
NM
|
1,331.2 | 1,030.2 |
NM
|
||||||||||
Wholesale
revenues
|
49.4 | 77.9 |
NM
|
123.1 | 175.7 |
NM
|
||||||||||
Other
revenues
|
10.9 | 10.5 |
NM
|
33.1 | 20.3 |
NM
|
||||||||||
Electric
utility revenues
|
$ | 587.7 | $ | 593.6 |
NM
|
$ | 1,487.4 | $ | 1,226.2 |
NM
|
||||||
Three
Months Ended
|
Year
to Date
|
|||||||||||||||
September
30
|
%
|
September
30
|
%
|
|||||||||||||
2009
|
2008
|
Change
(a)
|
2009
|
2008
|
Change
(a)
|
|||||||||||
Retail
MWh sales
|
(thousands)
|
(thousands)
|
||||||||||||||
Residential
|
2,401 | 2,459 |
NM
|
6,621 | 5,020 |
NM
|
||||||||||
Commercial
|
2,780 | 2,818 |
NM
|
8,035 | 6,563 |
NM
|
||||||||||
Industrial
|
824 | 855 |
NM
|
2,348 | 1,882 |
NM
|
||||||||||
Other
retail MWh sales
|
26 | 27 |
NM
|
86 | 62 |
NM
|
||||||||||
Total
retail
|
6,031 | 6,159 |
NM
|
17,090 | 13,527 |
NM
|
||||||||||
Wholesale
MWh sales
|
1,708 | 1,756 |
NM
|
3,962 | 3,839 |
NM
|
||||||||||
Electric
utility MWh sales
|
7,739 | 7,915 |
NM
|
21,052 | 17,366 |
NM
|
||||||||||
(a)
Not meaningful due to the acquisition of GMO on July 14,
2008.
|
||||||||||||||||
Three
Months Ended
|
Year
to Date
|
|||||||||||||||
September
30
|
%
|
September
30
|
%
|
|||||||||||||
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
|||||||||||
Net
MWhs Generated by Fuel Type
|
(thousands)
|
(thousands)
|
||||||||||||||
Coal
|
5,398 | 5,683 |
NM
(a)
|
14,160 | 12,718 |
NM
(a)
|
||||||||||
Nuclear
|
1,137 | 1,215 | (6 | ) | 3,489 | 2,759 | 26 | |||||||||
Natural
gas and oil
|
164 | 229 |
NM
(a)
|
282 | 283 |
NM
(a)
|
||||||||||
Wind
|
74 | 93 | (19 | ) | 265 | 308 | (14 | ) | ||||||||
Total
Generation
|
6,773 | 7,220 |
NM
(a)
|
18,196 | 16,068 |
NM
(a)
|
||||||||||
(a)
Not meaningful due to the acquisition of GMO on July 14,
2008.
|
||||||||||||||||
·
|
Great
Plains Energy’s funds on deposit decreased $5.4 million due to MPS
Merchant closing positions with counterparties and reduced cash collateral
requirements due to issuing a
guarantee.
|
·
|
Great
Plains Energy’s electric utility plant increased $825.6 million primarily
due to the following projects placed in service, in addition to normal
plant activity:
|
·
|
$536.7
million for the Iatan No. 1 environmental project and certain common
costs; and
|
·
|
Great
Plains Energy’s construction work in process decreased $250.7 million
primarily due to $637.1 million of electric utility projects placed in
service as described above, partially offset by a $295.7 million increase
related to KCP&L’s Comprehensive Energy Plan projects, $36.7 million
related to GMO’s 18% share of Iatan No. 2 and $43.6 million related to a
KCP&L wind project, in addition to normal
activity.
|
·
|
Great
Plains Energy’s notes payable and commercial paper decreased $48.0 million
and $342.2 million, respectively, primarily due to repayment with proceeds
from the following:
|
·
|
KCP&L’s
issuance of $400.0 million of 7.15% Mortgage Bonds Series
2009A,
|
·
|
Great
Plains Energy’s issuance of $287.5 million of Equity Units and $161.0
million of common stock, and
|
·
|
Great
Plains Energy’s sale of $50.0 million of common stock under a Sales Agency
Financing Agreement with BNY Mellon Capital Markets,
LLC.
|
·
|
Great
Plains Energy’s accounts payable decreased $186.9 million primarily due to
the timing of cash payments, including KCP&L’s Comprehensive Energy
Plan projects and GMO’s Sibley SCR project, and decreases related to lower
natural gas and purchased power
prices.
|
·
|
Great
Plains Energy’s accrued taxes increased $56.5 million primarily due to an
increase in property tax accruals due to the timing of tax
payments.
|
·
|
Great
Plains Energy’s derivative instruments – current liabilities decreased
$86.2 million primarily due to the settlement of FSS simultaneously with
KCP&L’s issuance of $400.0 million of 7.15% Mortgage Bonds Series
2009A in March 2009.
|
·
|
Great
Plains Energy’s deferred tax credits increased $26.7 million due to
recognition of $28.4 million of advanced coal credits. See Note
18 to the consolidated financial statements for additional information on
the advanced coal credits.
|
Three
Months Ended
|
Year
to Date
|
|||||||||||
September
30
|
September
30
|
|||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||
(millions)
|
||||||||||||
Operating
revenues
|
$ | 395.5 | $ | 423.7 | $ | 997.8 | $ | 1,056.3 | ||||
Fuel
|
(70.5 | ) | (79.6 | ) | (183.3 | ) | (192.6 | ) | ||||
Purchased
power
|
(19.8 | ) | (31.3 | ) | (58.6 | ) | (100.3 | ) | ||||
Other
operating expenses
|
(140.0 | ) | (133.5 | ) | (400.8 | ) | (401.2 | ) | ||||
Depreciation
and amortization
|
(59.3 | ) | (51.4 | ) | (166.1 | ) | (152.4 | ) | ||||
Operating
income
|
105.9 | 127.9 | 189.0 | 209.8 | ||||||||
Non-operating
income and expenses
|
8.4 | 6.5 | 22.4 | 13.0 | ||||||||
Interest
charges
|
(22.3 | ) | (16.6 | ) | (62.7 | ) | (53.3 | ) | ||||
Income
tax expense
|
(26.4 | ) | (33.9 | ) | (39.8 | ) | (60.7 | ) | ||||
Net
income
|
$ | 65.6 | $ | 83.9 | $ | 108.9 | $ | 108.8 | ||||
Three
Months Ended
|
Year
to Date
|
|||||||||||||||||
September
30
|
%
|
September
30
|
%
|
|||||||||||||||
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
|||||||||||||
Retail
revenues
|
(millions)
|
(millions)
|
||||||||||||||||
Residential
|
$ | 152.8 | $ | 163.4 | (7 | ) | $ | 365.5 | $ | 368.8 | (1 | ) | ||||||
Commercial
|
156.9 | 160.5 | (2 | ) | 409.8 | 404.0 | 1 | |||||||||||
Industrial
|
31.0 | 31.4 | (1 | ) | 81.2 | 85.1 | (5 | ) | ||||||||||
Other
retail revenues
|
2.7 | 2.7 | (1 | ) | 7.9 | 7.8 | - | |||||||||||
Kansas
ECA (over) under recovery
|
(0.3 | ) | (11.8 | ) | (98 | ) | 1.2 | 5.5 | (79 | ) | ||||||||
Total
retail
|
343.1 | 346.2 | (1 | ) | 865.6 | 871.2 | (1 | ) | ||||||||||
Wholesale
revenues
|
47.3 | 72.4 | (35 | ) | 117.8 | 170.2 | (31 | ) | ||||||||||
Other
revenues
|
5.1 | 5.1 | (4 | ) | 14.4 | 14.9 | (4 | ) | ||||||||||
KCP&L
revenues
|
$ | 395.5 | $ | 423.7 | (7 | ) | $ | 997.8 | $ | 1,056.3 | (6 | ) | ||||||
Three
Months Ended
|
Year
to Date
|
|||||||||||||||||
September
30
|
%
|
September
30
|
%
|
|||||||||||||||
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
|||||||||||||
Retail
MWh sales
|
(thousands)
|
(thousands)
|
||||||||||||||||
Residential
|
1,486 | 1,634 | (9 | ) | 4,001 | 4,195 | (5 | ) | ||||||||||
Commercial
|
1,971 | 2,082 | (5 | ) | 5,687 | 5,827 | (2 | ) | ||||||||||
Industrial
|
508 | 542 | (6 | ) | 1,418 | 1,569 | (10 | ) | ||||||||||
Other
retail MWh sales
|
20 | 22 | (2 | ) | 64 | 57 | 12 | |||||||||||
Total
retail
|
3,985 | 4,280 | (7 | ) | 11,170 | 11,648 | (4 | ) | ||||||||||
Wholesale
MWh sales
|
1,642 | 1,630 | 1 | 3,816 | 3,713 | 3 | ||||||||||||
KCP&L
electric MWh sales
|
5,627 | 5,910 | (5 | ) | 14,986 | 15,361 | (2 | ) | ||||||||||
Three
Months Ended
|
Year
to Date
|
|||||||||||||||||
September
30
|
%
|
September
30
|
%
|
|||||||||||||||
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
|||||||||||||
Net
MWhs Generated by Fuel Type
|
(thousands)
|
(thousands)
|
||||||||||||||||
Coal
|
3,970 | 4,340 | (9 | ) | 10,226 | 11,375 | (10 | ) | ||||||||||
Nuclear
|
1,137 | 1,215 | (6 | ) | 3,489 | 2,759 | 26 | |||||||||||
Natural
gas and oil
|
147 | 172 | (15 | ) | 215 | 226 | (5 | ) | ||||||||||
Wind
|
74 | 93 | (19 | ) | 265 | 308 | (14 | ) | ||||||||||
Total
Generation
|
5,328 | 5,820 | (8 | ) | 14,195 | 14,668 | (3 | ) | ||||||||||
|
|||||||||
Exposure
|
|||||||||
Before
Credit
|
Credit
|
Net
|
|||||||
Rating
|
Collateral
|
Collateral
|
Exposure
|
||||||
External
rating
|
(millions)
|
||||||||
Investment
grade
|
$ | 0.8 | $ | - | $ | 0.8 | |||
Non-investment
grade
|
- | - | - | ||||||
No
external rating
|
23.0 | 2.0 | 21.0 | ||||||
Total
|
$ | 23.8 | $ | 2.0 | $ | 21.8 | |||
Exhibit
Number
|
Description of Document
|
|
12.1
|
Computation
of Ratio of Earnings to Fixed Charges.
|
|
31.1.a
|
Rule
13a-14(a)/15d-14(a) Certifications of Michael J.
Chesser.
|
|
31.1.b
|
Rule
13a-14(a)/15d-14(a) Certifications of Terry Bassham.
|
|
32.1
|
Section
1350 Certifications.
|
Exhibit
Number
|
Description of Document
|
|
10.2.1
|
*
|
Amendment
dated as of July 9, 2009 to Receivables Sale Agreement dated as of July 1,
2005 among Kansas City Power & Light Receivables Company, Kansas City
Power & Light Company, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New
York Branch and Victory Receivables Corporation (Exhibit 10.4 to Form 8-K
filed July 13, 2009).
|
10.2.2
|
Amendment
and Waiver dated as of September 25, 2009 to the Receivables Sale
Agreement dated as of July 1, 2005 among Kansas City Power & Light
Receivables Company, Kansas City Power & Light Company, The Bank of
Tokyo-Mitsubishi UFJ, Ltd., New York Branch and Victory Receivables
Corporation.
|
|
12.2
|
Computation
of Ratio of Earnings to Fixed Charges.
|
|
31.2.a
|
Rule
13a-14(a)/15d-14(a) Certifications of Michael J.
Chesser.
|
|
31.2.b
|
Rule
13a-14(a)/15d-14(a) Certifications of Terry Bassham.
|
|
32.2
|
Section
1350 Certifications.
|
GREAT
PLAINS ENERGY INCORPORATED
|
|
Dated: October
29, 2009
|
By:
/s/Michael J.
Chesser
|
(Michael
J. Chesser)
|
|
(Chief
Executive Officer)
|
|
Dated: October
29, 2009
|
By:
/s/Lori A.
Wright
|
(Lori
A. Wright)
|
|
(Principal
Accounting Officer)
|
KANSAS
CITY POWER & LIGHT COMPANY
|
|
Dated: October
29, 2009
|
By:
/s/ Michael J.
Chesser
|
(Michael
J. Chesser)
|
|
(Chief
Executive Officer)
|
|
Dated: October
29, 2009
|
By:
/s/Lori A.
Wright
|
(Lori
A. Wright)
|
|
(Principal
Accounting Officer)
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Great Plains Energy
Incorporated;
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report:
|
|
4.
|
The
registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
(c)
|
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
5.
|
The
registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
|
October
29, 2009
|
/s/
Michael J. Chesser
|
|
Michael
J. Chesser
Chairman
of the Board and Chief Executive
Officer
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Great Plains Energy
Incorporated;
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report:
|
|
4.
|
The
registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
(c)
|
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
5.
|
The
registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
|
October
29, 2009
|
/s/
Terry Bassham
|
|
Terry
Bassham
Executive
Vice President – Finance and Strategic Development and Chief Financial
Officer
|
|
|
/s/
Michael J. Chesser
|
|
Name:
Title:
|
Michael
J. Chesser
Chairman
of the Board and Chief Executive Officer
|
Date:
|
October
29, 2009
|
/s/
Terry Bassham
|
|
Name:
Title:
|
Terry
Bassham
Executive
Vice President – Finance and Strategic Development and Chief
Financial Officer
|
Date:
|
October
29, 2009
|
|
The Bank of
Tokyo-Mitsubishi UFJ, Ltd., New York Branch,
as the
Agent
|
|
By: /s/
Van Dusenbury
|
|
Title:
Senior Vice President
|
|
Victory
Receivables Corporation
|
|
By: /s/
Frank B. Bilotta
|
|
Title: President
|
|
Kansas
City Power & Light Receivables
Company
|
|
By: /s/
James P. Gilligan
|
|
Title: President
|
|
Kansas
City Power & light Company
|
|
By: /s/
Michael W. Cline
|
|
Title: VP
– Investor Relations &
Treasurer
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Kansas City Power
& Light Company;
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report:
|
|
4.
|
The
registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
(c)
|
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
5.
|
The
registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
|
October
29, 2009
|
/s/
Michael J. Chesser
|
|
Michael
J. Chesser
Chairman
of the Board and Chief Executive
Officer
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Kansas City Power
& Light Company;
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report:
|
|
4.
|
The
registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
(c)
|
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
5.
|
The
registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
|
October
29, 2009
|
/s/
Terry Bassham
|
|
Terry
Bassham
Chief
Financial Officer
|
|
|
/s/ Michael J. Chesser | |
Name:
Title:
|
Michael
J. Chesser
Chairman
of the Board and Chief Executive Officer
|
Date:
|
October
29, 2009
|
|
|
/s/
Terry Bassham
|
|
Name:
Title:
|
Terry
Bassham
Chief
Financial Officer
|
Date:
|
October
29, 2009
|