EX-99 2 ex_99.htm EXHIBIT 99 PRESS RELEASE Unassociated Document
Exhibit 99
 

Media Contact:
  
Tom Robinson
   
816-556-2902
     
Invester Contact:
  
Todd Allen
   
816-556-2083
 
 

GREAT PLAINS ENERGY ANNOUNCES SECOND QUARTER FINANCIAL RESULTS
Increasing 2006 Core Earnings Guidance
 
Kansas City, MO, August 2, 2006 - Great Plains Energy Incorporated (NYSE:GXP) today announced core earnings of $41.7 million or $0.54 per share in the second quarter of 2006, compared to $23.6 million or $0.32 per share in the second quarter of 2005. Reported earnings were $37.2 million or $0.48 per share, compared to second quarter 2005 earnings of $21.5 million or $0.29 per share. Core earnings exclude net mark-to-market gains and losses on energy contracts and other items. Reported earnings are reconciled to core earnings in attachments B and C.

Strategic Energy’s core earnings in the second quarter of 2006 were higher than last year, with improved gross margins more than offsetting lower delivered volumes. Higher core earnings in the second quarter of 2006 compared to the same quarter last year were also driven by weather-driven retail revenue, higher wholesale prices and lower purchased power expense that more than offset higher fuel costs at Kansas City Power & Light (KCP&L).

For the first six months of 2006, core earnings were $66.1 million or $0.87 per share, compared to $40.5 million or $0.54 per share for the same period last year. Reported earnings for the first six months were $34.7 million or $0.46 per share, compared to $41.3 million or $0.55 per share for same period last year. Year to date core earnings growth was largely driven by the same factors that drove increased earnings in the second quarter, including gross margin improvements at Strategic Energy, and favorable weather, higher wholesale prices and lower purchased power expense at KCP&L.

“Great Plains Energy’s operating performance in the first half of 2006, particularly at Strategic Energy, has led to an increase in our core earning guidance for the year by $0.10 cents per share,” said Chairman Mike Chesser. Chesser continued, “KCP&L has experienced new winter and summer peaks in the last few quarters, underscoring the growing demand for electricity and need for our Comprehensive Energy Plan.”

Great Plains Energy is increasing 2006 core earnings guidance to a range of $1.85 to $2.10, compared to the previous range of $1.75 to $2.00 (see table G). The company is increasing Strategic Energy’s segment guidance to $0.26 to $0.32 per share, compared to the previous guidance range of $0.16 to $0.22.
 
Kansas City Power & Light

KCP&L core earnings were $38.9 million or $0.51 per share in the second quarter of 2006, compared to $29.1 million or $0.39 per share last year. Reported earnings were $35.8 million or $0.47 per share, compared to second quarter 2005 reported earnings of $29.1 million or $0.39 per share.
 
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Revenues for the second quarter of 2006 were $290.9 million, compared to $272.1 million for the second quarter last year. Retail revenue increased by $9.9 million to $241.8 compared to last year due primarily to 53% warmer than normal weather. Wholesale revenues in the second quarter 2006 also increased to $46.2 million, up $8.9 million compared to the second quarter last year. The increase in wholesale revenues was driven by a 23% increase in average wholesale prices. Wholesale volumes rose slightly as the absence of last year’s Wolf Creek refueling outage was largely offset by higher retail usage and coal conservation measures, as well as planned and unplanned outages. Included among these outages was the planned installation of the new Hawthorn 5 transformer in late June, which returned the unit to its full 563MW net capacity.

Higher fuel prices, increased fuel usage and an unfavorable fuel mix compared to last year led to a 25% increase in fuel costs in the second quarter of 2006. The higher fuel costs more than offset the benefit of lower purchased power expense. The regulatory accounting treatment of pension costs, which was implemented retroactively in the third quarter of 2005, positively impacted earnings, excluding the pension settlement charges related to the skill set realignment, by $1.6 million for the three months ended June 30, 2006 compared to the same period last year.

Year to date June 30, 2006, KCP&L’s core earnings were $56.7 million, compared to $39.9 million in the first half of 2005. Reported year to date earnings were $47.8 million, compared to $39.9 million last year. The increase in core earnings during the first half of 2006 was largely attributable to the same factors that drove the core earnings increase in the second quarter, as well as the absence of costs resulting from the 2005 ice storm.

During the second quarter of 2006, progress on KCP&L’s Comprehensive Energy Plan projects continued. The remaining permits required for construction of Iatan 2 were issued, and the co-owners signed the co-ownership agreement. Construction is anticipated to begin later this year. The 100MW wind facility is currently under construction and remains on schedule for completion in Fall 2006. The LaCygne 1 environmental retrofit project is on track for completion in the first half of 2007.

Strategic Energy

Strategic Energy core earnings, which exclude net mark-to-market gains and losses on energy contracts, were $5.4 million or $0.07 per share in the second quarter, compared to $2.2 million or $0.03 per share in the same period last year. Reported earnings were $4.2 million or $0.05 per share, compared to earnings of $3.7 million or $0.05 per share in the second quarter of 2005. The increase in core earnings was driven by improved average retail gross margins, primarily due to the absence of transitional SECA charges, which more than offset lower delivered volumes compared to the second quarter last year. Strategic Energy’s delivered volumes decreased to 3.9 million MWhs during the second quarter, compared to 5.2 million MWhs last year, reflecting the challenging sales environment experienced during much of 2004 and 2005.

Strategic Energy continues to benefit from successful marketing efforts and a more favorable sales environment in several states. Total backlog at Strategic Energy continued to increase, growing 40% in the second quarter of 2006 compared to the same period last year to 25.7
 
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million MWhs. New sales volume rose to 7.6 million MWhs in the second quarter of 2006, compared to 3.9 million MWhs in the same period in 2005. Delivered volume during the first six months, combined with 2006 backlog, totaled 16.1 million MWhs at the end of the second quarter, compared to 13.8 million MWhs at the end of first quarter. Average contract durations of 16 months in the second quarter of 2006 compared favorably to 14 months in the same quarter last year, but were slightly lower than the 18 months reported in the first quarter of 2006.

Average retail gross margin per MWh in the second quarter of 2006 was $5.32. Excluding $2.0 million in net mark-to-market losses on energy contracts, average retail gross margin per MWh was $5.84, compared to an average retail gross margin per MWh, excluding net mark-to-market gains on energy contracts, of $3.33 last year. The year over year difference in gross margin per MWh reflects a $2.22 net SECA impact. Average retail gross margin on new sales during the second quarter of 2006 was $3.74, which excludes potential portfolio optimization benefits.

KLT Investments and “Other”

Second quarter 2006 core earnings from KLT Investments were $1.4 million or $0.02 per share, compared to a loss of $2.5 million or $0.03 per share in the second quarter of 2005. In the first six months of 2006, core earnings were $2.1 million or $0.03 per share, compared to $0.5 million or $0.01 per share last year. For both the quarter and year to date periods, the increases are attributable to the timing of reductions in affordable housing investments partially offset by a decline in available tax credits from the investments.

In the second quarter of 2006 the “other” category loss was $4.0 million compared to a loss of $5.2 million in the same period last year on a core earnings basis. The loss per share was $0.06 in the second quarter of 2006 versus $0.07 in the second quarter of 2005. Year to date, the “other” category loss was $8.3 million or $0.11 per share on a core earnings basis, compared to $12.0 million or $0.17 per share in the first six months of 2005.

Non-GAAP Financial Measure
Great Plains Energy provides in its earnings releases descriptions of “core earnings” in addition to earnings calculated in accordance with GAAP. Great Plains Energy also provides its earnings guidance in terms of core earnings. Core earnings is a non-GAAP financial measure that differs from GAAP earnings because it excludes the effects of discontinued operations, certain unusual items and mark-to-market gains and losses on energy contracts. Core earnings for historical periods are reconciled to GAAP earnings in Attachments B and C.

The Company believes core earnings provide to investors a meaningful indicator of its results that is comparable among periods because it excludes the effects of discontinued operations, certain unusual items and mark-to-market gains and losses on energy contracts. These items are excluded from core earnings because they may not be indicative of Great Plains Energy’s prospective earnings potential. Investors should note that this non-GAAP measure involves judgments by management, including whether an item is classified as an unusual item. Core earnings is used internally to measure performance against budget and in reports for management and the Board of Directors. Great Plains Energy’s definition of core earnings may differ from similar terms used by other companies.

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Great Plains Energy Incorporated (NYSE:GXP) headquartered in Kansas City, MO, is the holding company for Kansas City Power & Light Company, a
leading regulated provider of electricity in the Midwest, and Strategic Energy L.L.C., a competitive electricity supplier. The Company's web site is www.greatplainsenergy.com.


CERTAIN FORWARD-LOOKING INFORMATION -- Statements made in this release that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements regarding projected delivered volumes and margins, the outcome of regulatory proceedings, cost estimates of the comprehensive energy plan and other matters affecting future operations. In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company is providing a number of important factors that could cause actual results to differ materially from the provided forward-looking information. These important factors include: future economic conditions in the regional, national and international markets, including but not limited to regional and national wholesale electricity markets; market perception of the energy industry and Great Plains Energy; changes in business strategy, operations or development plans; effects of current or proposed state and federal legislative and regulatory actions or developments, including, but not limited to, deregulation, re-regulation and restructuring of the electric utility industry; decisions of regulators regarding rates KCP&L can charge for electricity; adverse changes in applicable laws, regulations, rules, principles or practices governing tax, accounting and environmental matters including, but not limited to, air and water quality; financial market conditions and performance including, but not limited to, changes in interest rates and in availability and cost of capital and the effects on pension plan assets and costs; credit ratings; inflation rates; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of terrorist acts; increased competition including, but not limited to, retail choice in the electric utility industry and the entry of new competitors; ability to carry out marketing and sales plans; weather conditions including weather-related damage; cost, availability, quality and deliverability of fuel; ability to achieve generation planning goals and the occurrence and duration of unplanned generation outages; delays in the anticipated in-service dates and cost increases of additional generating capacity; nuclear operations; ability to enter new markets successfully and capitalize on growth opportunities in non-regulated businesses and the effects of competition; application of critical accounting policies, including, but not limited to, those related to derivatives and pension liabilities; workforce risks including compensation and benefits costs; performance of projects undertaken by non-regulated businesses and the success of efforts to invest in and develop new opportunities and other risks and uncertainties. Other risk factors are detailed from time to time in the Company’s most recent quarterly report on Form 10-Q or annual report on Form 10-K filed with the Securities and Exchange Commission. This list of factors is not all-inclusive because it is not possible to predict all factors.
 
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Attachment A
GREAT PLAINS ENERGY
  
Consolidated Statements of Income
  
(Unaudited)
  
                   
   
Three Months Ended
  
Year to Date
  
   
June 30
  
June 30
  
 
  
2006
  
2005
  
2006
  
2005
  
Operating Revenues
  
(thousands, except per share amounts)
Electric revenues - KCP&L
  
$
290,891
  
$
272,083
  
$
531,281
  
$
505,298
  
Electric revenues - Strategic Energy
    
350,506
   
359,172
   
668,518
   
670,488
 
Other revenues
    
707
   
466
   
1,490
   
1,049
 
Total
    
642,104
   
631,721
   
1,201,289
   
1,176,835
 
Operating Expenses
                          
Fuel
    
56,197
   
44,803
   
103,597
   
86,293
 
Purchased power - KCP&L
    
8,570
   
16,797
   
13,687
   
28,287
 
Purchased power - Strategic Energy
    
329,347
   
338,836
   
655,105
   
616,702
 
Skill set realignment costs
   
5,123
   
-
   
14,516
   
-
 
Other
    
79,650
   
84,375
   
155,885
   
164,270
 
Maintenance
    
24,899
   
20,552
   
47,489
   
49,910
 
Depreciation and amortization
    
39,250
   
38,241
   
78,196
   
76,103
 
General taxes
    
27,764
   
26,566
   
55,408
   
52,422
 
Gain on property
    
(696
)
  
(994
)
  
(597
)
  
(1,513
)
Total
    
570,104
   
569,176
   
1,123,286
   
1,072,474
 
Operating income
   
72,000
   
62,545
   
78,003
   
104,361
 
Non-operating income
    
3,904
   
9,847
   
6,889
   
11,771
 
Non-operating expenses
    
(1,311
)
  
(9,657
)
  
(3,452
)
  
(10,972
)
Interest charges
    
(17,816
)
  
(18,386
)
  
(35,139
)
  
(35,873
)
Income from continuing operations before income
                         
taxes, minority interest in subsidiaries and loss
                     
from equity investments
    
56,777
   
44,349
   
46,301
   
69,287
 
Income taxes
    
(18,831
)
  
(9,805
)
  
(10,201
)
  
(15,096
)
Minority interest in subsidiaries
    
-
   
(8,693
)
  
-
   
(7,805
)
Loss from equity investments, net of income taxes
    
(289
)
  
(344
)
  
(579
)
  
(689
)
Income from continuing operations
    
37,657
   
25,507
   
35,521
   
45,697
 
Discontinued operations, net of income taxes
   
-
   
(3,606
)
  
-
   
(3,606
)
Net income
    
37,657
   
21,901
   
35,521
   
42,091
 
Preferred stock dividend requirements
    
412
   
412
   
823
   
823
 
Earnings available for common shareholders
  
$
37,245
  
$
21,489
  
$
34,698
  
$
41,268
  
                           
Average number of common shares outstanding
    
76,997
   
74,592
   
75,834
   
74,515
 
                           
Basic and diluted earnings (loss) per common share
                
Continuing operations
 
$
0.48
  
$
0.34
  
$
0.46
  
$
0.60
  
Discontinued operations
    
-
   
(0.05
)
  
-
   
(0.05
)
Basic and diluted earnings per common share
  
$
0.48
  
$
0.29
  
$
0.46
  
$
0.55
  
                           
Cash dividends per common share
  
$
0.415
  
$
0.415
  
$
0.83
  
$
0.83
  
 
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Attachment B
 
GREAT PLAINS ENERGY
  
Consolidated Earnings and Earnings Per Share
  
Three Months Ended June 30
  
(Unaudited)
  
                    
 
  
 
  
 
  
Earnings per Great
  
   
Earnings
  
Plains Energy Share
  
 
  
2006
  
2005
  
2006
  
2005
  
   
(millions)
          
KCP&L
  
$
35.8
  
$
29.1
  
$
0.47
  
$
0.39
  
Strategic Energy
    
4.2
   
3.7
   
0.05
   
0.05
 
KLT Investments
    
1.4
   
(2.5
)
  
0.02
   
(0.03
)
Other
    
(3.8
)
  
(4.8
)
  
(0.05
)
  
(0.06
)
Income from continuing operations
    
37.6
   
25.5
   
0.49
   
0.35
 
KLT Gas discontinued operations,
                          
net of income taxes
    
-
   
(3.6
)
  
-
   
(0.05
)
Preferred dividends
    
(0.4
)
  
(0.4
)
  
(0.01
)
  
(0.01
)
Earnings available for common shareholders
  
$
37.2
  
$
21.5
  
$
0.48
  
$
0.29
  
                           
Reconciliation of GAAP to Non-GAAP
                          
Earnings available for common shareholders
  
$
37.2
  
$
21.5
  
$
0.48
  
$
0.29
  
Reconciling items
                          
KCP&L - skill set realignment costs
    
3.1
   
-
   
0.04
   
-
 
Strategic Energy - mark-to-market impacts
                         
from energy contracts
    
1.2
   
(1.5
)
  
0.02
   
(0.02
)
Other - skill set realignment costs
    
0.2
   
-
   
-
   
-
 
KLT Gas - discontinued operations
    
-
   
3.6
   
-
   
0.05
 
Core earnings
  
$
41.7
  
$
23.6
  
$
0.54
  
$
0.32
  
                           
Core earnings
                          
KCP&L
  
$
38.9
  
$
29.1
  
$
0.51
  
$
0.39
  
Strategic Energy
    
5.4
   
2.2
   
0.07
   
0.03
 
KLT Investments
    
1.4
   
(2.5
)
  
0.02
   
(0.03
)
Other
    
(4.0
)
  
(5.2
)
  
(0.06
)
  
(0.07
)
Core earnings
  
$
41.7
  
$
23.6
  
$
0.54
  
$
0.32
  
 
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Attachment C
GREAT PLAINS ENERGY
  
Consolidated Earnings and Earnings Per Share
  
Year to Date June 30
  
(Unaudited)
  
                       
 
  
 
  
 
  
Earnings per Great
  
   
Earnings
  
Plains Energy Share
  
 
  
2006
  
2005
  
 
  
2006
  
2005
  
   
(millions)
             
KCP&L
  
$
47.8
  
$
39.9
        
$
0.63
  
$
0.54
  
Strategic Energy
    
(6.7
)
  
16.5
         
(0.09
)
  
0.22
 
KLT Investments
    
2.1
   
0.5
         
0.03
   
0.01
 
Other
    
(7.7
)
  
(11.2
)
    
(0.10
)
  
(0.16
)
Income from continuing operations
    
35.5
   
45.7
         
0.47
   
0.61
 
KLT Gas discontinued operations,
                                
net of income taxes
    
-
   
(3.6
)
        
-
   
(0.05
)
Preferred dividends
    
(0.8
)
  
(0.8
)
        
(0.01
)
  
(0.01
)
Earnings available for common shareholders
  
$
34.7
  
$
41.3
    
$
0.46
  
$
0.55
  
                                 
Reconciliation of GAAP to Non-GAAP
                                
Earnings available for common shareholders
  
$
34.7
  
$
41.3
        
$
0.46
  
$
0.55
  
Reconciling items
                                
KCP&L - skill set realignment costs
    
8.9
   
-
         
0.12
   
-
 
Strategic Energy - mark-to-market impacts
                               
from energy contracts
    
22.3
   
(4.4
)
        
0.29
   
(0.06
)
Other - skill set realignment costs
    
0.2
   
-
         
-
   
-
 
KLT Gas - discontinued operations
    
-
   
3.6
         
-
   
0.05
 
Core earnings
  
$
66.1
  
$
40.5
    
$
0.87
  
$
0.54
  
                                 
Core earnings
                                
KCP&L
  
$
56.7
  
$
39.9
        
$
0.75
  
$
0.54
  
Strategic Energy
    
15.6
   
12.1
         
0.20
   
0.16
 
KLT Investments
    
2.1
   
0.5
         
0.03
   
0.01
 
Other
    
(8.3
)
  
(12.0
)
        
(0.11
)
  
(0.17
)
Core earnings
  
$
66.1
  
$
40.5
    
$
0.87
  
$
0.54
  
                                 
 
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Attachment D
 
GREAT PLAINS ENERGY
  
Summary Income Statement by Segment
  
Three Months Ended June 30, 2006
  
(Unaudited)
  
                   
Consolidated
  
 
  
Strategic
  
 
  
 
  
GPE
  
KCP&L
  
Energy
  
Other
  
   
(millions)
  
Operating revenues
  
$
642.1
  
$
290.9
  
$
351.2
  
$
-
  
Fuel
   
(56.2
)
  
(56.2
)
  
-
   
-
 
Purchased power
   
(337.9
)
  
(8.6
)
  
(329.3
)
  
-
 
Skill set realignment costs
    
(5.1
)
  
(4.9
)
  
-
   
(0.2
)
Other operating expense
    
(132.3
)
  
(116.7
)
  
(13.4
)
  
(2.2
)
Depreciation and amortization
    
(39.3
)
  
(37.3
)
  
(2.0
)
  
-
 
Gain on property
    
0.7
   
0.7
   
-
   
-
 
Operating income
    
72.0
   
67.9
   
6.5
   
(2.4
)
Non-operating income (expenses)
    
2.6
   
1.6
   
1.0
   
-
 
Interest charges
    
(17.8
)
  
(15.0
)
  
(0.6
)
  
(2.2
)
Income taxes
    
(18.9
)
  
(18.7
)
  
(2.7
)
  
2.5
 
Loss from equity investments
    
(0.3
)
  
-
   
-
   
(0.3
)
Net income (loss)
  
$
37.6
  
$
35.8
  
$
4.2
  
$
(2.4
)
Earnings (loss) per GPE common share
  
$
0.48
  
$
0.47
  
$
0.05
  
$
(0.04
)
                           
 
GREAT PLAINS ENERGY
  
Summary Income Statement by Segment
  
Year to Date June 30, 2006
  
(Unaudited)
  
                   
 
Consolidated
  
 
  
Strategic
  
 
  
 
 GPE
  
KCP&L
  
Energy
  
Other
  
   
(millions)
  
Operating revenues
  
$
1,201.3
  
$
531.3
  
$
670.0
  
$
-
  
Fuel
   
(103.6
)
  
(103.6
)
  
-
   
-
 
Purchased power
   
(668.8
)
  
(13.7
)
  
(655.1
)
  
-
 
Skill set realignment costs
    
(14.5
)
  
(14.2
)
  
-
   
(0.3
)
Other operating expense
    
(258.8
)
  
(228.1
)
  
(25.9
)
  
(4.8
)
Depreciation and amortization
    
(78.2
)
  
(74.3
)
  
(3.9
)
  
-
 
Gain on property
    
0.6
   
0.6
   
-
   
-
 
Operating income (loss)
    
78.0
   
98.0
   
(14.9
)
  
(5.1
)
Non-operating income (expenses)
    
3.4
   
2.3
   
1.9
   
(0.8
)
Interest charges
    
(35.1
)
  
(29.9
)
  
(0.9
)
  
(4.3
)
Income taxes
    
(10.2
)
  
(22.6
)
  
7.2
   
5.2
 
Loss from equity investments
    
(0.6
)
  
-
   
-
   
(0.6
)
Net income (loss)
  
$
35.5
  
$
47.8
  
$
(6.7
)
$
(5.6
)
Earnings (loss) per GPE common share
  
$
0.46
  
$
0.63
  
$
(0.09
)
$
(0.08
)
 
More
-Page 9-
 
Attachment E
 
GREAT PLAINS ENERGY
  
Consolidated Balance Sheets
  
(Unaudited)
  
           
   
June 30
  
December 31
  
 
  
2006
  
2005
  
ASSETS
  
(thousands)
  
Current Assets
              
Cash and cash equivalents
  
$
96,176
  
$
103,068
  
Restricted cash
    
-
   
1,900
 
Receivables, net
   
290,330
   
259,043
 
Fuel inventories, at average cost
    
29,912
   
17,073
 
Materials and supplies, at average cost
    
58,193
   
57,017
 
Deferred income taxes
    
31,469
   
-
 
Assets of discontinued operations
    
-
   
627
 
Derivative instruments
    
14,944
   
39,189
 
Other
    
18,184
   
13,001
 
Total
    
539,208
   
490,918
 
Nonutility Property and Investments
              
Affordable housing limited partnerships
    
25,440
   
28,214
 
Nuclear decommissioning trust fund
    
94,991
   
91,802
 
Other
    
16,284
   
17,291
 
Total
    
136,715
   
137,307
 
Utility Plant, at Original Cost
              
Electric
    
5,049,618
   
4,959,539
 
Less-accumulated depreciation
    
2,392,022
   
2,322,813
 
Net utility plant in service
    
2,657,596
   
2,636,726
 
Construction work in progress
    
219,646
   
100,952
 
Nuclear fuel, net of amortization of $123,062 and $115,240
    
41,355
   
27,966
 
Total
    
2,918,597
   
2,765,644
 
Deferred Charges and Other Assets
              
Regulatory assets
    
205,195
   
179,922
 
Prepaid pension costs
    
83,514
   
98,295
 
Goodwill
    
88,139
   
87,624
 
Derivative instruments
    
4,281
   
21,812
 
Other
   
45,526
   
52,204
 
Total
    
426,655
   
439,857
 
Total
  
$
4,021,175
  
$
3,833,726
  
 
More
-Page 10-
 
Attachment E continued

GREAT PLAINS ENERGY
  
Consolidated Balance Sheets
  
(Unaudited)
  
           
   
June 30
  
December 31
  
 
  
2006
  
2005
  
LIABILITIES AND CAPITALIZATION
  
(thousands)
  
Current Liabilities
              
Notes payable
  
$
-
  
$
6,000
  
Commercial paper
    
82,400
   
31,900
 
Current maturities of long-term debt
    
389,902
   
1,675
 
Accounts payable
    
215,926
   
231,496
 
Accrued taxes
    
61,458
   
37,140
 
Accrued interest
    
13,680
   
13,329
 
Accrued payroll and vacations
    
29,385
   
36,024
 
Accrued refueling outage costs
    
14,996
   
8,974
 
Deferred income taxes
    
-
   
1,351
 
Supplier collateral
    
-
   
1,900
 
Liabilities of discontinued operations
    
-
   
64
 
Derivative instruments
    
50,067
   
7,411
 
Other
    
24,601
   
25,658
 
Total
    
882,415
   
402,922
 
Deferred Credits and Other Liabilities
              
Deferred income taxes
    
608,070
   
621,359
 
Deferred investment tax credits
    
28,175
   
29,698
 
Asset retirement obligations
    
153,697
   
145,907
 
Pension liability
    
89,667
   
87,355
 
Regulatory liabilities
    
73,899
   
69,641
 
Derivative instruments
    
27,127
   
7,750
 
Other
    
63,602
   
65,787
 
Total
    
1,044,237
   
1,027,497
 
Capitalization
              
Common shareholders' equity
              
Common stock-150,000,000 shares authorized without par value
              
80,267,216 and 74,783,824 shares issued, stated value
    
890,425
   
744,457
 
Retained earnings
    
458,291
   
488,001
 
Treasury stock-45,680 and 43,376 shares, at cost
    
(1,367
)
  
(1,304
)
Accumulated other comprehensive loss
    
(43,020
)
  
(7,727
)
Total
    
1,304,329
   
1,223,427
 
Cumulative preferred stock $100 par value
              
3.80% - 100,000 shares issued
    
10,000
   
10,000
 
4.50% - 100,000 shares issued
    
10,000
   
10,000
 
4.20% - 70,000 shares issued
    
7,000
   
7,000
 
4.35% - 120,000 shares issued
    
12,000
   
12,000
 
Total
    
39,000
   
39,000
 
Long-term debt
    
751,194
   
1,140,880
 
Total
    
2,094,523
   
2,403,307
 
Commitments and Contingencies
 
Total
  
$
4,021,175
  
$
3,833,726
  
 
More
-Page 11-
 
Attachment F
GREAT PLAINS ENERGY
  
Statistical Summary
  
                        
 
  
 
  
Three Months Ended
  
Year to Date
  
       
June 30
  
 June 30
  
 
  
 
  
2006
  
2005
  
2006
  
2005
  
KCP&L
                   
Retail revenues (millions)
        
$
241.8
  
$
231.9
  
$
431.0
  
$
421.4
  
Wholesale revenues (millions)
        
$
46.2
  
$
37.3
  
$
93.7
  
$
76.4
  
Average non-firm wholesale price per MWh
        
$
47.02
  
$
38.37
  
$
48.68
  
$
36.49
  
Wholesale MWh sales (thousands)
          
1,078
   
1,038
   
2,182
   
2,248
 
Cooling degree days
          
571
   
448
   
571
   
448
 
Equivalent availability - coal plants
          
80
%
  
82
%
  
80
%
  
80
%
Capacity factor - coal plants
          
71
%
  
78
%
  
71
%
  
76
%
                                 
Strategic Energy
                       
Average retail gross margin per MWh
        
$
5.32
  
$
3.87
  
$
1.76
  
$
5.43
  
Change in fair value related to non-hedging energy
                               
contracts and from cash flow hedge ineffectiveness
  
0.52
   
(0.54
)
  
4.97
   
(0.80
)
Average retail gross margin per MWh without fair
                               
value impacts 1
$
5.84
  
$
3.33
  
$
6.73
  
$
4.63
  
                                 
MWhs delivered (thousands)
          
3,974
   
5,136
   
7,636
   
9,761
 
MWhs delivered plus current year backlog (thousands)
          
N/A
   
N/A
   
16,090
   
18,679
 
Average duration - new and resigned contracts (months)
          
16
   
14
   
17
   
14
 
MWh sales (thousands)
          
7,560
   
3,918
   
14,862
   
6,887
 
Retention rate
          
54
%
  
69
%
  
52
%
  
71
%
Retention rate including month to month customers
          
65
%
  
83
%
  
63
%
  
81
%
1This is a non-GAAP financial measure that differs from GAAP because it excludes the impact of unrealized fair value gains
or losses. Management believes this measure is more reflective of average retail gross margins on MWhs delivered due
to the non-cash nature and volatility of changes in fair value related to non-hedging energy contracts and from cash flow
hedge ineffectiveness. Management and the Board of Directors use this as a measurement of Strategic Energy's
  
   realized retail gross margin per delivered MWH, which are settled upon delivery at contracted prices.  
 
More
-Page 12-
 
Attachment G
 
GREAT PLAINS ENERGY
2006 Core Earnings Guidance
 
 
 
 
 
 
 
 
 
   
Previous Range
  
Revised Range
Kansas City Power & Light
$ 1.74
-
$ 1.89
 
$ 1.74
-
 $ 1.89
                 
Strategic Energy
   0.16
-
  0.22
 
   0.26
-
  0.32
                 
KLT Investments
   0.06
-
  0.07
 
  0.06
-
  0.07
                 
Other 1
   (0.21)
-
 (0.18)
 
  (0.21)
-
  (0.18)
                 
Consolidated core EPS 2, 3
$ 1.75
-
$ 2.00
 
$ 1.85
-
$ 2.10
                 
1
Other includes Home Service Solutions, Holding Company costs and other miscellaneous items
                 
2
Core earnings is a non-GAAP financial measure that differs from GAAP earnings because it excludes
 
the effects of discontinued operations, certain unusual items and mark-to-market gains and losses
 
on energy contracts. The Company believes core earnings provide to investors a more meaningful
 
indicator of its results that is comparable among periods because it excludes the effects of items that
 
may not be indicative of Great Plains Energy’s prospective earnings potential.
    
                 
3
Great Plains Energy is unable to reconcile its core earnings guidance to GAAP earnings per share
 
because we do not predict the future impact of unusual items and mark-to-market gains or losses on
 
energy contracts. The impact of these items could be material to our operating results in accordance
 
with GAAP.
              
###