Exhibit 99
[KCPL Logo]
FINANCIAL COMMUNITY BRIEFING
February 15, 2000
Four Seasons Hotel, New York
1
CERTAIN FORWARD-LOOKING INFORMATION
Statements made in this report which are not based on historical
facts are forward looking and, accordingly, involve risks and
uncertainties that could cause actual results to differ
materially from those discussed. Any forward-looking statements
are intended to be as of the date on which such statement is
made. In connection with the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, we are
providing a number of important factors that could cause actual
results to differ materially from provided forward-looking
information. These important factors include:
- future economic conditions in the regional, national and
international markets
- state, federal and foreign regulation
- weather conditions
- financial market conditions, including, but not
limited to changes in interest rates
- inflation rates
- increased competition, including, but not limited to,
the deregulation of the United States electric utility
industry, and the entry of new competitors
- ability to carry out marketing and sales plans
- ability to achieve generation planning goals and the
occurrence of unplanned generation outages
- nuclear operations
- ability to enter new markets successfully and
capitalize on growth opportunities in nonregulated
businesses
- adverse changes in applicable laws, regulations or
rules governing environmental (including air quality
regulations), tax or accounting matters
This list of factors may not be all-inclusive since it is not
possible for us to predict all possible factors.
2
KCPL TODAY
3
BUSINESS SCOPE
- - Electric utility generation activities
- - Electric distribution systems and services
- - Nonregulated businesses
- Telecommunications
- Gas production and development
- Energy supply management services
4
OUR OBJECTIVE
- - Double historical earnings growth rate within five years
- improve on traditional historical earnings growth rates
- improve on P/E multiples as result of going-forward
strategies
- - Target annual dividend growth of 2 - 3%
5
TRACK RECORD FOR BUILDING VALUE
[Line Graph]
TOTAL RETURN TO SHAREHOLDERS, INCLUDING REINVESTMENT OF DIVIDENDS
EEI Electric
KCPL Utility Index
1988 $100 $100
1989 $119 $130
1990 $131 $132
1991 $188 $169
1992 $193 $182
1993 $207 $203
1994 $226 $179
1995 $270 $235
1996 $311 $238
1997 $341 $303
1998 $361 $345
Assumes $100 invested on December 31, 1989 in KCPL common stock
and EEI Index.
[end of graph]
6
CORPORATE STRATEGY
7
RESTRUCTURED KCPL
[Organizational Chart]
[box]
HOLDING COMPANY - KCPL
[line down connecting "Holding Company - KCPL" down
to "Transmission/Distribution"]
[box] [box] [box]
GENERATION TRANSMISSION/DISTRIBUTION NONREGULATED BUSINESSES
- KLT Inc.
- HSS Inc.
[line right connecting box [line right connecting box
"Generation" to "Transmission/ "Transmission/Distribution" to
"Transmission/Distribution"] "Nonregulated Businesses"]
[end of chart]
8
WHY SEPARATION MAKES SENSE
- - Enables KCPL to leverage low-cost generation assets in
unregulated environment
- - Allows management to focus on value creation levers within
each business
- - Facilitates growth of business units
9
GENERATION
10
GENERATION
- - KCPL's electric generation business is fundamentally sound
and competitive
- strong asset mix includes baseload, intermediate and
peaking units
- low production costs yield attractive economics
- completion of Hawthorn #5 positions KCPL well in a
deregulating marketplace
11
INVESTING IN INCREASED CAPACITY
- Hawthorn #6 - 141 megawatt unit - July 1999
- Additional capacity scheduled for 2000
- 140 mw combined cycle unit (H9)
- 77 mw single cycle unit (H7)
- 77 mw single cycle unit (H8)
- Hawthorn #5 - 540 megawatt coal-fired unit - scheduled on-
line June 2001
12
LOW COST PROVIDER:
KCPL DELIVERED COAL COST VS. REGIONAL COMPETITORS
[chart]
Cents per MMBtu
---------------------------------------------------
UtiliCorp Ameren KPL KCPL
1990 162 151 133 99.4
1991 148 147 131 97.7
1992 134 149 130 91.5
1993 115 138 112 84.8
1994 102 117 112 84.4
1995 100.7 109.3 112.4 78.6
1996 90.8 103.1 112.1 76.9
1997 95.5 97.4 114.6 76
1998 91.9 91.9 113.5 73.1
[end of chart]
13
LOW COST PROVIDER:
1998 FUEL MIX
[3-D Pie Chart]
Coal Nuclear Oil/gas
69% 29% 2%
$0.81 per MMBtu $0.49 per MMBtu
System Fuel: $0.77 per MMBtu
[end of chart]
14
GENERATION STRATEGY
- - Place all generating assets in separate business unit
- nonregulated status
- focus on competitive cost generation
- enter into purchased power agreement with KCPL
- deregulated status for generation will allow us access
to more markets
15
GENERATION - BENEFITS
- - Take advantage of higher-value market-based opportunities in
a competitive market
- - Capture and keep savings from improved asset management
- - Explore strategic partnerships to gain efficiencies
- - Evaluate selected merchant generation development and joint
ventures
- - Expand affiliate relationships
16
TRANSMISSION AND DISTRIBUTION
17
TRANSMISSION/DISTRIBUITON
- - Currently serves over 455,000 customers
- - 2 - 3% annual customer usage growth rate
- - 1 - 2% annual customer growth rate
- - Diversified customer base
- - Competitive rates
18
GROWING AND DIVERSIFIED TERRITORY:
1998 KWH SALES BY CUSTOMER CLASS
[3-D Pie Chart]
Residential Commercial Industrial Bulk Power/Other
26% 37% 16% 21%
[end of chart]
19
COMPETITIVE RATES
- - KCPL's rates are below national average
- moratorium in place in Missouri until 2002
- stable rates through deregulation
- - Our goal: to be the benchmark against which others will
compete in a deregulated market
20
TRANSMISSION/DISTRIBUTION
STRATEGY
- - Isolate regulated transmission assets to participate in RTO
- - Retain regulated distribution activities in separate business unit
- - Pursue incentive-based rate of return allowance from regulators
21
TRANSMISSION/DISTRIBUTION -
BENEFITS
- - Regulation provides stable cash flow and earnings
- - EBITDA used to fund capital expenditures and support stable
dividend policy
- - Leverage value of customer relationships through third party
marketing alliances
22
KLT INC.
STRATEGIC OVERVIEW
23
CURRENT CORPORATE
STRUCTURE AND HOLDINGS
[Corporate Structure/Organizational Chart]
[box] KLT, INC.
[lines connecting following subsidiaries to "KLT Inc." parent]
[box] KLT ENERGY SERVICES
Strategic Energy, Ltd.
Custom Energy preferred stock
Custom Lighting Services
[box] KLT GAS
Multiple CBM properties
One traditional natural gas property
[box] KLT TELECOM
DTI Holdings
[box] KLT INVESTMENTS
Tax Credits
[box] KLT INVESTMENTS II
Venture Capital
Real Estate
Tax Credits
E-channel
[end of chart]
24
PRINCIPLES OF NEW APPROACH
[Chart]
[circle] Private Equity Disciplined Capital Allocation
Model Incentive-driven Compensation
[down arrow to "KLT Inc." Circle] Focus on Exit
[circle] [circle] [circle]
Focus [right arrow] KLT Inc. [left arrow] Value-Added Opportunities
4 Core Segments Proactive Involvement
New Talent
[arrow up connecting "Commitment to Realizing Value" circle to
"KLT Inc." circle]
[circle]
Commitment to Realizing Value
Communication
Private/Public Offerings
Monetization
[end of chart]
25
BOARD OF DIRECTORS
MEMBER BACKGROUND
- --------------------- ------------------------------------------------
Dr. David Bodde - Professor of Technology and Innovation at
the Bloch School of Business and Public
Administration, University of Missouri-
Kansas City
- Member of KCPL's Board of Directors
Andrew Johnson - President, Fingerhut E-Commerce
- Former SVP Marketing, Fingerhut
- Former SVP Business Development, Fingerhut
James Mitchell - Chairman, IDS Life Insurance Company
- Retired EVP Marketing, American Express
- Retired CEO, IDS Life Insurance Company
Charles Schellhorn - President, Argus Medical Systems
- Vice Chairman, DST Systems
- Former CEO, United Micrographics Systems Inc.
Greg Orman - President, KLT Inc.
- Former Chairman & CEO, Nationwide Electric, Inc.
- Former President, KLT Energy Services, Inc.
Ron Wasson - Chairman of the Board, KLT Inc.
- Former President, KLT Inc.
26
KLT INC. -
GOING FORWARD STRUCTURE
[Corporate Structure/Organizational Chart]
[circle]
KLT Inc.
[connecting line down to first three circles]
[dotted line down to "E-commerce" circle]
[circle] [circle] [circle] [circle]
TELECOMMUNICATIONS NATURAL GAS RETAIL ENERGY E-COMMERCE
DEVELOPMENT SERVICES
- -Digital Teleport -KLT Gas -Strategic Energy
[end of chart]
27
TELECOMMUNICATIONS -
DTI HOLDINGS, INC.
- - St. Louis based telecommunications company that is building
a nationwide fiber network
- 4 Metropolitan Area Networks (MANs)
- Roughly 70 other points of presence (POPs) in secondary
and tertiary
- - Network technology is state of the art
- Self-healing SONET rings
- DWDM equipment
- POPs every 40 miles for local conductivity
- - Local dial tone in Kansas City and St. Louis
- - Net PP&E of $300MM at December 31, 1999
28
DIGITAL TELEPORT, INC.
[map of United States with DTI routes marked]
Includes the following Information:
- Purchased IRU's
- DTI Constructed
- Under Construction
- Swapped
- Leased, Short-Term
29
DTI NETWORK BUILDOUT AND ACQUISITION
Projected Year-End
Network Metrics Current By June 2000 2000
- --------------- ------- ------------ --------
Route Miles
In the ground 8,000 (1) 14,000 (1) 20,000
In the ground & lit 2,000 variable TBD
Fiber Miles
In the ground 218,000 (1) 500,000 (1) TBD
In the ground & lit 144,000 variable TBD
(1) Excludes short-term two fiber lease totaling approximately 2,800 miles
30
RETAIL ENERGY SERVICES - STRATEGIC ENERGY LTD.
- - Pittsburgh based energy management firm with over 100 full-
time employees
- - Currently building a "Virtual Utility" to exploit the large,
deregulating market for electricity
- $210 billion market
- 24 states have enacted legislation or have regulatory
plans in place to allow retail choice
- Pending federal legislation will lead to full choice by 2003
31
RETAIL ENERGY SERVICES -
STRATEGIC ENERGY LTD.
- - Western Pennsylvania pilot extremely successful
- 10% of eligible commercial market and 4% of eligible
industrial market captured
- Numerous association endorsements
- Financially profitable
- - Competitive advantages position Company for success
- - Revenues in 1999 grew from $6 million to $62 million; in
2000, expected to rise to $140 million
32
1999 STRATEGIC ENERGY SELECTED CUSTOMER LIST
Abbott Laboratories
American Home Products
Bayer Corporation
Bell Atlantic
Carnegie Mellon University
Champion International
Chrysler Corporation
Dow Corning Corporation
Eastman Chemical Company
Equity Office Properties Trust
General Growth Management, Inc.
Heinz U.S.A.
Hershey Foods
Hoechst Celanese
IMC Chemical
Ingersoll Rand
J.C. Penney Company, Inc.
Johnson & Johnson
LTV Steel Company
Lucent Technologies
Marathon Oil
Merck & Company, Inc.
Mobil Oil Corporation
National Steel Corporation
Pennsylvania Power & Light Co.
Philips Electronics
Procter & Gamble
Shell Oil
Trammell Crow Co.
Westinghouse Electric
Weyerhauser Company
33
STRATEGIC ENERGY LTD.
GROWTH STRATEGY
- - Invest in Business Development and Regulatory Support
personnel in selected markets
- - Develop alliance relationships with companies that sell
complimentary products
- Natural gas
- ESCOs
- Aggregated billing companies (e.g. Avista Advantage)
- - Develop national relationships with affiliate organizations
- School Intermediate Units
- Manufacturing associations
- Property/facilities management companies
34
STRATEGIC ENERGY LTD.
GROWTH STRATEGY
- - Complete Internet-based system to capture residential customers
- - Leverage existing electrical consulting customers,
particularly those with load optionality
- - Develop supplier relationships in control areas near expansion markets
- - Continue enhancing functionality and performance of Energy
Management Center
35
KLT GAS OVERVIEW
- - Specialist in coal bed methane natural gas production and development
- - Total proven reserves of 248Bcf in over 130,000 acres
- - Current production volume of 42 Mcf/day, growing to 59 Mcf/day by year-end
- - Strong economic model without the risk of traditional natural gas
- - Well defined performance improvement plan in coal bed methane
- - Price protection strategies in place
36
CBM VS. CONVENTIONAL NATURAL GAS
CBM
- - Low up-front finding costs at $.35 mcf
- - Lower drilling related risk (almost no "dry holes")
- - Longer production life (generally 20-30 years)
- - Predictable gas streams
- - Inclining production/cash flow
CONVENTIONAL
- - Finding & development cost at $.90 mcf
- - Moderate to high drilling related risk
- - Shorter production life (generally 8-14 years)
37
KLT GAS -
GOING FORWARD STRATEGY
- - Develop existing properties
- - Selectively acquire additional properties
- - Divest non-performing assets
- - Execute performance improvement plan
- - Grow organizational capabilities
[right-pointing arrow]
Initial Public Offering or Business Combination When Appropriate
38
CONCLUSIONS
- - KLT Inc. is changing
- Focused, performance-oriented approach
- Willingness to monetize when necessary
- Well positioned to create value near-term
- - Building capabilities and disciplines to create value long-term
- - More to come!
39