Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-707
KANSAS CITY POWER & LIGHT COMPANY
(Exact name of registrant as specified in its charter)
Missouri 44-0308720
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1201 Walnut, Kansas City, Missouri 64106-2124
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (816) 556-2200
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes (X) No ( )
The number of shares outstanding of the registrant's Common stock at July 28,
1995 was 61,902,083 shares.
PART I - FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
KANSAS CITY POWER & LIGHT COMPANY
CONSOLIDATED BALANCE SHEETS
(thousands of dollars)
June 30 December 31
1995 1994
ASSETS
UTILITY PLANT, at original cost
Electric $3,344,454 $3,330,478
Less-accumulated depreciation 1,113,874 1,092,436
Net utility plant in service 2,230,580 2,238,042
Construction work in progress 62,386 57,294
Nuclear fuel, net of amortization of
$73,915 and $66,773 42,451 40,806
Total 2,335,417 2,336,142
REGULATORY ASSET - DEFERRED WOLF CREEK COSTS 13,569 18,752
REGULATORY ASSET - RECOVERABLE TAXES 120,000 120,000
INVESTMENTS AND NONUTILITY PROPERTY 136,893 98,429
CURRENT ASSETS
Cash and cash equivalents 21,301 20,217
Receivables
Customer accounts receivable 24,197 24,513
Other receivables 19,328 22,604
Fuel inventories, at average cost 19,314 16,570
Materials and supplies, at average cost 45,620 44,953
Prepayments 5,490 5,138
Deferred income taxes 4,095 1,444
Total 139,345 135,439
DEFERRED CHARGES
Regulatory assets
Settlement of fuel contracts 14,816 16,625
KCC Wolf Creek carrying costs 5,471 6,839
Other 24,589 27,909
Other deferred charges 11,749 10,262
Total 56,625 61,635
Total $2,801,849 $2,770,397
LIABILITIES
CAPITALIZATION
Common stock-authorized 150,000,000 shares
without par value-61,908,726 shares issued -
stated value $449,697 $449,697
Retained earnings 419,220 426,738
Capital stock premium and expense (1,725) (1,736)
Common stock equity 867,192 874,699
Cumulative preferred stock 89,000 89,000
Cumulative redeemable preferred stock 1,436 1,596
Long-term debt 837,564 798,470
Total 1,795,192 1,763,765
CURRENT LIABILITIES
Notes payable to banks 0 1,000
Commercial paper 14,000 31,000
Current maturities of long-term debt 43,288 33,419
Accounts payable 38,322 73,486
Dividends payable 423 423
Accrued taxes 55,019 24,684
Accrued interest 13,047 12,209
Accrued payroll and vacations 20,487 19,594
Accrued refueling outage costs 8,147 2,120
Other 7,643 7,221
Total 200,376 205,156
DEFERRED CREDITS
Deferred income taxes 641,008 644,139
Deferred investment tax credits 73,402 82,840
Other 91,871 74,497
Total 806,281 801,476
COMMITMENTS AND CONTINGENCIES
Total $2,801,849 $2,770,397
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
KANSAS CITY POWER & LIGHT COMPANY
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Year to Date Twelve Months Ended
June 30 June 30 June 30
1995 1994 1995 1994 1995 1994
(thousands of dollars)
ELECTRIC OPERATING REVENUES $ 205,305 $ 223,108 $ 404,211 $ 422,403 $ 850,080 $ 880,150
OPERATING EXPENSES
Operation
Fuel 33,045 35,331 67,764 73,340 129,530 143,893
Purchased power 7,586 8,065 14,318 14,547 33,700 33,565
Other 49,039 56,451 93,484 115,013 180,775 209,202
Maintenance 22,500 20,114 43,178 38,930 76,716 79,331
Depreciation 24,215 23,451 48,354 46,782 95,933 92,746
Taxes
Income 11,923 16,521 23,540 23,269 71,220 64,606
General 22,681 23,779 46,538 47,247 95,653 95,645
Amortization of:
MPSC rate phase-in plan 0 0 0 0 0 3,536
Deferred Wolf Creek costs 3,275 3,275 6,551 6,551 13,102 13,102
Total 174,264 186,987 343,727 365,679 696,629 735,626
OPERATING INCOME 31,041 36,121 60,484 56,724 153,451 144,524
OTHER INCOME AND DEDUCTIONS
Allowance for equity funds
used during construction 505 639 740 1,112 1,715 2,707
Miscellaneous (3,457) (2,008) 3,111 (1,885) 837 (3,263)
Income taxes 4,110 1,324 3,774 1,403 6,943 2,407
Total 1,158 (45) 7,625 630 9,495 1,851
INCOME BEFORE INTEREST CHARGES 32,199 36,076 68,109 57,354 162,946 146,375
INTEREST CHARGES
Long-term debt 12,890 10,387 25,223 20,767 48,418 44,294
Short-term notes 471 398 1,091 736 1,525 1,065
Miscellaneous 639 1,131 1,257 2,319 3,066 4,504
Allowance for borrowed funds
used during construction (497) (616) (1,045) (1,135) (1,754) (2,396)
Total 13,503 11,300 26,526 22,687 51,255 47,467
PERIOD RESULTS
Net income 18,696 24,776 41,583 34,667 111,691 98,908
Preferred stock
dividend requirements 1,022 835 2,048 1,642 3,863 3,193
Earnings available for
common stock 17,674 23,941 39,535 33,025 107,828 95,715
Average number of common
shares outstanding 61,902 61,902 61,902 61,905 61,902 61,907
Earnings per common share $0.29 $0.38 $0.64 $0.53 $1.74 $1.55
Cash dividends per
common share $0.38 $0.37 $0.76 $0.74 $1.52 $1.48
<F1>
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
KANSAS CITY POWER & LIGHT COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(thousands of dollars)
Year to Date Twelve Months Ended
June 30 June 30
1995 1994 1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 41,583 $ 34,667 $111,691 $ 98,908
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 48,354 46,782 95,933 92,746
Amortization of:
Nuclear fuel 7,142 5,425 11,853 11,065
Deferred Wolf Creek costs 6,551 6,551 13,102 13,102
MPSC rate phase-in plan 0 0 0 3,536
Other 4,065 5,136 8,537 9,341
Deferred income taxes (net) (5,782) 4,007 10,735 6,834
Deferred investment tax credit
amortization and reversals (9,438) (2,173) (11,610) (4,345)
Allowance for equity funds used
during construction (740) (1,112) (1,715) (2,707)
Cash flows affected by changes in:
Receivables 3,592 (12,741) 17,876 (15,836)
Fuel inventories (2,744) (334) (4,430) 4,818
Materials and supplies (667) (873) (590) (773)
Accounts payable (35,164) (17,131) (3,968) (1,561)
Accrued taxes 30,335 6,834 20,385 6,617
Accrued interest 838 (3,816) 1,288 (3,173)
Wolf Creek refueling outage
accrual 6,027 6,225 (5,340) 12,387
Pension and postretirement benefit
obligations 651 30,574 2,280 30,906
Other operating activities (3,269) 1,616 (7,745) 603
Net cash provided by operating
activites 91,334 109,637 258,282 262,468
CASH FLOWS FROM INVESTING ACTIVITIES
Construction expenditures (52,046) (62,453) (114,558) (130,888)
Allowance for borrowed funds used
during construction (1,045) (1,135) (1,754) (2,396)
Purchases of investments (23,098) (22,647) (68,011) (24,777)
Other investing activities 3,636 4,392 4,868 12,724
Net cash used in investing
activities (72,553) (81,843) (179,455) (145,337)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of long-term debt 82,382 48,955 167,220 140,801
Repayment of long-term debt (33,419) (117,170) (86,419) (156,650)
Special deposits 0 60,118 0 0
Net change in short-term borrowings (18,000) 33,000 (48,000) 1,000
Dividends paid (49,101) (47,427) (97,912) (94,781)
Other financing activities 441 699 77 (1,055)
Net cash used in financing
activities (17,697) (21,825) (65,034) (110,685)
NET CHANGE IN CASH AND CASH
EQUIVALENTS 1,084 5,969 13,793 6,446
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 20,217 1,539 7,508 1,062
CASH AND CASH EQUIVALENTS AT END
OF PERIOD $21,301 $7,508 $21,301 $7,508
CASH PAID DURING THE PERIOD FOR:
Interest, net of amount capitalized $24,885 $25,186 $47,945 $47,977
Income taxes $13,649 $23,143 $44,226 $53,505
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
KANSAS CITY POWER & LIGHT COMPANY
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(thousands of dollars)
Year to Date Twelve Months Ended
June 30 June 30
1995 1994 1995 1994
Beginning balance $426,738 $418,201 $405,441 $401,314
Net income 41,583 34,667 111,691 98,908
468,321 452,868 517,132 500,222
Dividends declared 49,101 47,427 97,912 94,781
Ending balance $419,220 $405,441 $419,220 $405,441
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.
KANSAS CITY POWER & LIGHT COMPANY
Notes to Consolidated Financial Statements
In management's opinion, the consolidated interim financial statements
reflect all adjustments (which include only normal recurring adjustments)
necessary to present fairly the results of operations for the interim periods
presented. These statements and notes should be read in connection with the
financial statements and related notes included in the Company's 1994 annual
report filed with the Securities and Exchange Commission on Form 10-K.
1. CAPITALIZATION
A subsidiary of the Company, KLT Inc., entered into a long-term revolving
line of credit agreement totaling $65 million. The agreement expires in 1998
and is collateralized by the capital stock of KLT Inc.'s direct subsidiaries.
As of June 30, 1995, $9 million had been borrowed against this line of credit.
During 1995, KLT Investments Inc. financed approximately $15 million of
affordable housing limited partnership investments. These notes have interest
rates ranging from 8.2% to 9.6% and maturity dates through 2004. As of June
30, 1995, KLT Investments had subscribed for an additional $8 million
investment in these partnerships. The subscriptions, which are reflected in
the Consolidated Balance Sheets as Investments and Nonutility Property with the
related liabilities in Deferred Credits - Other, include $3 million which were
converted to notes from July 1 through August 1, 1995 and $5 million to be
converted by October 1, 1995.
From December 31, 1994 to June 30, 1995, the amount of Medium-Term Notes
(Notes) outstanding has increased by $29 million. As of June 30, 1995,
$98 million of Notes remained available for issuance under a shelf
registration.
2. COMMITMENTS AND CONTINGENCIES
ENVIRONMENTAL MATTERS
Interstate Power Company of Dubuque, Iowa (Interstate) filed a lawsuit in
1989 against the Company in the Federal District Court for the District of Iowa
seeking from the Company contribution and indemnity under the Superfund law for
cleanup costs of hazardous substances at the site of a demolished gas
manufacturing plant in Mason City, Iowa. The plant was operated by the Company
for very brief periods of time before it was demolished in 1952. The site and
all other properties the Company owned in Iowa were sold to Interstate in 1957.
The Company estimates the cleanup could cost up to $10 million. The Court has
set the issue of the allocation of cleanup costs among the parties for trial in
September 1995. Based upon an evaluation of available information from on-
going site investigation and assessment activities, including the costs of
those activities, management believes its share of the estimated cleanup costs
will be between $1 and $4 million.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
REGULATION AND COMPETITION
The electric utility industry is undergoing fundamental changes in
response to increasing competition. To achieve its desired market position in
this changing environment, the Company is continually modifying its business
processes to operate more efficiently and cost effectively, and is developing
energy related businesses through its subsidiary, KLT Inc. To take advantage
of opportunities presented through increased competition, the Company may
consider various business strategies including partnerships, acquisitions,
combinations, additions to or dispositions of service territory, and
restructuring of wholesale and retail businesses.
The National Energy Policy Act of 1992 (NEPA) gave the Federal Energy
Regulatory Commission (FERC) the authority to require electric utilities to
provide wholesale transmission line access (wholesale wheeling) to independent
power producers (IPPs) and other utilities. Although NEPA prohibits FERC from
ordering retail wheeling (allowing retail customers to select a different power
producer and use the transmission facilities of the host utility to deliver the
energy), it does not prevent the state commissions from doing so. The state
commissions however, may be preempted by other provisions of the Federal Power
Act or relevant provisions of state laws.
Although the Missouri Public Service Commission (MPSC) and the Kansas
Corporation Commission (KCC) have not changed regulatory policy relating to
mandated wholesale or retail competition, certain other state commissions are
actively planning the transition to a competitive environment. If retail
wheeling were allowed or mandated, the competition would present growth
opportunities for low-cost energy producers and risks for higher-cost producers
with large industrial customers able to select less expensive providers. The
loss of major customers could result in under-utilized assets (stranded
investment) placing a costly burden on the remaining customer base or
shareholders if those costs are not recovered from the departing customers as
part of the charge for their transmission service. The Company believes it is
positioned well and has a diverse customer mix with approximately 16% of total
sales derived from industrial customers as compared to the utility average of
approximately 35%. Its industrial rates are competitively priced compared to
the regional average and its rate structure allows flexibility in setting
rates. In addition, long-term contracts are in place or under negotiation for
a significant portion of the Company's industrial sales.
Increased competition could also force utilities to change accounting
methods. Financial Accounting Standards Board (FASB) Statement No. 71-
Accounting for Certain Types of Regulation, applies to regulated entities whose
rates are designed to recover the costs of providing service. An entity's
operations could cease to meet the requirements of FASB 71 for various reasons,
including a change in regulation or a change in the competitive environment for
a company's regulated services. For those operations no longer meeting the
requirements of regulatory accounting, regulatory assets would be written off
and other assets adjusted and evaluated for impairment. In a competitive
environment, asset recoverability would be determined using market-based rates
which could be lower than traditional cost-based rates. The Company has not
had direct competition for retail electric service in its service territory
although there has been competition in the bulk power market and between
alternative fuels. The Company's regulatory assets will be maintained as long
as it continues to meet the requirements of FASB 71.
NON-REGULATED OPPORTUNITIES
KLT Inc. was formed in 1992 as a holding company to pursue non-regulated,
energy related business ventures to supplement the growth from electric utility
operations. As of June 30, 1995, the consolidated assets of KLT Inc. totaled
approximately $124 million, including capital contributions from Kansas City
Power & Light Company of $37 million. Management anticipates total subsidiary
assets of up to $800 million within the next five to ten years, consisting of
approximately $200 million in capital investment from Kansas City Power & Light
Company and the remainder through subsidiary borrowings.
RESULTS OF OPERATIONS
Three month period: three months ended June 30, 1995 compared
to three months ended June 30, 1994
Six month period: six months ended June 30, 1995 compared
to six months ended June 30, 1994
Twelve month period: twelve months ended June 30, 1995
compared to twelve months ended June 30,
1994
EARNINGS OVERVIEW
Weather continued to be milder than normal during the second quarter of
1995. Based on a statistical relationship between kwh sales and the
differences in actual and normal temperatures, the Company estimates the effect
of abnormal weather on each period was as follows:
Three Month Six Month Twelve Month
Period Period Period
1995 1994 1995 1994 1995 1994
Estimated effects
of abnormal weather
on EPS $(0.06) $ 0.02 $(0.08) $ 0.02 $(0.18) $(0.07)
EPS for the three month period decreased to $0.29 from $0.38 reflecting
milder weather, decreased bulk power sales, lower priced industrial sales and
several unplanned costs. Unplanned costs during the second quarter of 1995
included repairs of the June storm damage, increased fuel costs due to an
inventory adjustment, an extended coal plant maintenance outage and the
Company's share of Wolf Creek Generating Station's (Wolf Creek) voluntary early
retirement program costs. Savings associated with Wolf Creek's early
retirement program are expected to offset program costs in less than two years.
EPS for the 1994 three months ended includes a $0.10 charge for the Company's
voluntary retirement plan.
EPS for the six month period increased to $0.64 from $0.53 and EPS for the
twelve month period increased to $1.74 from $1.55. In addition to the $0.24
EPS impact of the early retirement program on the six months ended June 30,
1994, reduced by a $0.02 adjustment during the fourth quarter of 1994, EPS for
the 1995 periods were positively affected by a gain of $0.08 realized from the
sale of unit train cars during the first quarter of 1995. These increases were
offset by the effects of the milder weather and other EPS reductions discussed
above.
KILOWATT (KWH) SALES AND OPERATING REVENUES
Sales and revenue data:
(revenues in millions)
Increase (Decrease) From Prior Year
Three Month Six Month Twelve Month
Period Period Period
KWH Revenues KWH Revenues KWH Revenues
Retail Sales:
Residential (8)% $(5) (3)% $(4) (2)% $(7)
Commercial (6)% (5) (1)% (1) 1 % (3)
Industrial - % (2) 2 % (4) 2 % (9)
Other (5)% - (5)% - (5)% -
Total Retail (5)% (12) (1)% (9) - % (19)
Sales for Resale:
Bulk Power Sales (28)% (6) (22)% (8) (15)% (9)
Other (23)% - (26)% (1) (30)% (2)
Total Operating
Revenues $(18) $(18) $(30)
During April and May of 1995, the classification of approximately 600 net
commercial customers was changed to industrial to more appropriately reflect
their business operations. The subsequent effect of this change resulted in
the reclassification of approximately $1.4 million (20 million kwh sales) from
commercial to industrial sales. Prior periods have not been restated.
Effective January 1, 1994, Missouri retail rates were reduced 2.66%, or
approximately $12.5 million annually, resulting from the end of the Wolf Creek
rate phase-in amortization. Approximately two-thirds of the Company's retail
sales are to Missouri customers. Other tariffs have not changed materially
since 1988. However, the amortization of the Regulatory Asset-Deferred Wolf
Creek Costs ends in 1996 and may result in future rate adjustments.
Milder weather decreased retail kwh sales and revenues for all three
periods despite continued customer growth in all sectors. Decreases in
industrial revenues reflect customized long-term sales contracts with major
industrial customers. Long-term contracts are in place or under negotiation
for a significant portion of the Company's industrial sales. These contracts
are designed to enhance the Company's competitive position and improve overall
power generating efficiencies and load factors, while boosting consumption and
providing short-term and long-term capacity savings.
Bulk power sales vary with generating unit and purchased power
availability, fuel costs and the requirements of other electric systems. A
combination of conditions in 1994 allowed the Company to benefit from record
bulk power sales in that year.
Total revenue per kwh sold varies with changes in the mix of kwh sales
among customer classifications and the effect on certain classifications of
declining price per kwh as usage increases. An automatic fuel adjustment
provision applies to less than 1% of revenues.
Future kwh sales and revenues per kwh will be affected by national and
local economic conditions, weather conditions and customer conservation
efforts. Competitive forces, including alternative sources of energy such as
natural gas, cogeneration, IPPs and other electric utilities, may also affect
future sales and revenues.
FUEL AND PURCHASED POWER
Combined fuel and purchased power expenses decreased for all three periods
due to reduced total kwh sales and lower delivered coal costs. These decreases
are partially offset by $2 million additional costs resulting from the
difference between coal inventory adjustments during 1995 and 1994.
The Company's delivered coal cost is about two-thirds that of the regional
average. Reduced freight rates during the 1995 periods and favorable spot
market conditions during the twelve month period contributed to the lower
delivered coal costs. Spot market purchases allowed the Company to acquire
coal at prices below long-term contract rates. However, due to increasing
demand for low-sulfur coal, the Company is again securing a larger percentage
of coal through medium-term agreements.
The savings from lower delivered coal costs are partially offset by an
increase in the cost of nuclear fuel. Despite this increase, the price of
nuclear fuel averaged only 44% the price of coal over the twelve months ended
June 30, 1995. During the twelve months ended June 30, 1994, the price of
nuclear fuel averaged 37% the price of coal. Coal accounts for approximately
75% of generation and nuclear fuel about 25%.
For the twelve month period, lower replacement power expenses associated
with accrued Wolf Creek refueling and maintenance outages also contributed to
lower combined fuel and purchased power expenses. Replacement power expenses
decreased $2 million for the twelve month period reflecting Wolf Creek's 47 day
outage in 1994, a plant record.
The Company has entered into capacity purchase contracts to provide a cost-
effective alternative to constructing new capacity. These purchases partially
offset the decreases in purchased power from reduced kwh sales.
OTHER OPERATION AND MAINTENANCE EXPENSES
Combined other operation and maintenance expenses for the three, six and
twelve month periods decreased primarily due to the costs and subsequent
savings from the 1994 voluntary early retirement program. These decreases were
partially offset by the Company's $2 million share of Wolf Creek's voluntary
early retirement program recorded during the second quarter of 1995. Similar
to the Company's program, this charge is expected to be recovered within two
years through reduced salaries and benefits. The second quarter of 1995 also
included unplanned costs for repair expenses associated with June storm damage
and the extension of a coal plant maintenance outage. The timing of the
Company's normal maintenance program also caused fluctuations in maintenance
expense.
The Company continues to place increased emphasis on new technologies,
improved methods and cost control. Processes are being changed to provide
increased efficiencies and improved operations. Through the use of cellular
technology, a majority of customer meters will be read automatically by the end
of 1996. These types of changes have allowed the Company to assimilate work
performed by those who elected to participate in the early retirement program.
INCOME TAXES
The Company reached a settlement with the Internal Revenue Service (IRS)
regarding issues arising from an audit of the 1985 through 1988 tax returns.
Based on an internal calculation of the federal and state liabilities under the
terms of the settlement, management transferred approximately $10 million from
deferred income taxes and investment tax credits to accrued taxes.
Accelerated tax depreciation on Wolf Creek's original construction costs
ended in 1995. This deduction reduced the Company's prior years' tax payments
by approximately $30 million per year.
OTHER INCOME AND DEDUCTIONS
The six and twelve months ended June 30, 1995, include an $8 million gain
recorded from the sale of steel unit train cars which were replaced by leased
aluminum train cars. Aluminum cars are lighter-weight and offer more coal
capacity contributing to lower delivered coal prices. The current periods also
reflect charitable contributions provided to local organizations during the
second quarter of 1995.
During the first two quarters of 1995 the Company accrued tax credits of
$2 million representing one-half of the total expected 1995 credits related to
existing investments in affordable housing partnerships. Non-taxable increases
in the cash surrender value of corporate-owned life insurance contracts also
affect the relationship between miscellaneous income and income taxes.
INTEREST CHARGES
The increases in interest expense during all three periods reflect higher
average levels of long-term debt outstanding as well as higher weighted-average
interest rates. The higher average level of outstanding debt is due to
subsidiary investments in affordable housing partnerships. The tax benefits
provided by these investments essentially offset the related increase in
interest expense for the 1995 periods.
ENVIRONMENTAL MATTERS
See Note 2 to the Consolidated Financial Statements-Commitments and
Contingencies-Environmental Matters for a discussion of costs of compliance
with environmental laws and regulations and a potential liability (which the
Company believes is not material to its financial condition or results of
operations) for cleanup costs under the Superfund law.
WOLF CREEK
Wolf Creek is one of the Company's principal generating facilities
representing approximately 18% of accredited generating capacity. The plant's
operating performance has remained strong, contributing approximately 25% of
the Company's annual kwh generation while operating on average above 80% of
capacity over the last three years. It has the lowest fuel cost of any of the
Company's generating units. The plant's next refueling and maintenance outage
is scheduled for the spring of 1996.
An extended shut-down of Wolf Creek could have a substantial adverse
effect on the Company's business, financial condition and results of
operations. Higher replacement power and other costs would be incurred as a
result. Although not expected, an unscheduled plant shut-down could be caused
by actions of the Nuclear Regulatory Commission reacting to safety concerns at
the plant or other similar nuclear facilities. If a long-term shut-down
occurred, the state regulatory commissions could consider reducing rates by
excluding Wolf Creek investment from rate base.
Ownership and operation of a nuclear generating unit exposes the Company
to potential retrospective assessments and property losses in excess of
insurance coverage.
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Company held its Annual Meeting on May 2, 1995. The
following directors were elected by cumulative voting to hold
office until the next Annual Meeting of Shareholders in 1996:
Abstentions
(Withheld Authority)
Votes Cast to Vote for All
For Directors
David L. Bodde 55,919,390 426,624
William H. Clark 55,956,442 426,624
Robert J. Dineen 56,060,324 426,624
Arthur J. Doyle 55,892,033 426,624
W. Thomas Grant II 55,911,326 426,624
Drue Jennings 56,132,548 426,624
George E. Nettels, Jr. 56,110,108 426,624
Linda Hood Talbott 56,071,349 426,624
Robert H. West 56,120,486 426,624
The appointment of Coopers & Lybrand as independent auditors
was also ratified by the following vote:
For 55,615,739
Against 282,978
Abstentions 547,241
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) By-laws of the Company as amended June 15, 1995.
(b) No reports on Form 8-K have been filed for the quarter ended
June 30, 1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
KANSAS CITY POWER & LIGHT COMPANY
Dated: August 3, 1995 /s/Drue Jennings
(Drue Jennings)
(Chief Executive Officer)
Dated: August 3, 1995 /s/Neil Roadman
(Neil Roadman)
(Principal Accounting Officer)