
	Three Months Ended						Year to Date
	June 30						June 30
Great Plains Energy	2011			2010			2011			2010
Current income taxes	(millions)
Federal	$	2.7		$	(0.1	)	$	3.8		$	(0.9	)
State		(4.7	)		1.5			(4.0	)		2.3
Foreign		(0.1	)		0.4			(0.4	)		0.4
Total		(2.1	)		1.8			(0.6	)		1.8
Deferred income taxes
Federal		32.3			30.9			28.9			34.7
State		11.4			3.3			7.4			4.2
Total		43.7			34.2			36.3			38.9
Noncurrent income taxes
Federal		(19.0	)		4.7			(18.0	)		5.5
State		(2.0	)		0.5			(1.9	)		0.7
Foreign		(0.1	)		(0.3	)		0.2			-
Total		(21.1	)		4.9			(19.7	)		6.2
Investment tax credit
Deferral		-			(8.3	)		-			(4.1	)
Amortization		(0.7	)		(0.6	)		(0.8	)		(1.1	)
Total		(0.7	)		(8.9	)		(0.8	)		(5.2	)
Income tax expense	$	19.8		$	32.0		$	15.2		$	41.7


	Three Months Ended						Year to Date
	June 30						June 30
KCP&L	2011			2010			2011			2010
Current income taxes	(millions)
Federal	$	1.3		$	21.6		$	2.4		$	37.8
State		0.2			4.1			0.5			7.2
Total		1.5			25.7			2.9			45.0
Deferred income taxes
Federal		23.2			4.4			19.9			(10.0	)
State		4.7			(0.5	)		4.5			(2.2	)
Total		27.9			3.9			24.4			(12.2	)
Noncurrent income taxes
Federal		(11.5	)		0.4			(10.6	)		0.9
State		(1.2	)		0.1			(1.1	)		0.2
Total		(12.7	)		0.5			(11.7	)		1.1
Investment tax credit
Deferral		-			(8.3	)		-			(4.1	)
Amortization		(0.5	)		(0.3	)		(0.5	)		(0.7	)
Total		(0.5	)		(8.6	)		(0.5	)		(4.8	)
Income tax expense	$	16.2		$	21.5		$	15.1		$	29.1

Income Tax Expense (Benefit) and Effective Income Tax Rates

Income tax expense (benefit) and the effective income tax rates reflected in the financial statements and the reasons for their differences from the statutory federal rates are detailed in the following tables.


Great Plains Energy	Income Tax Expense						Income Tax Rate
Three Months Ended June 30	2011			2010			2011		2010
	(millions)
Federal statutory income tax	$	22.1		$	33.7		35.0	%	35.0	%
Differences between book and tax
depreciation not normalized		1.1			(2.5	)	1.6		(2.6	)
Amortization of investment tax credits		(0.7	)		(0.6	)	(1.1	)	(0.6	)
Federal income tax credits		(3.8	)		(2.2	)	(6.0	)	(2.3	)
State income taxes		2.6			3.6		4.1		3.7
Changes in uncertain tax positions, net		(1.6	)		(0.3	)	(2.5	)	(0.3	)
Valuation allowance		0.2			-		0.3		-
Other		(0.1	)		0.3		-		0.4
Total	$	19.8		$	32.0		31.4	%	33.3	%


Great Plains Energy	Income Tax Expense						Income Tax Rate
Year to Date June 30	2011			2010			2011		2010
	(millions)
Federal statutory income tax	$	21.4		$	44.2		35.0	%	35.0	%
Differences between book and tax
depreciation not normalized		1.9			(5.1	)	3.0		(4.0	)
Amortization of investment tax credits		(0.8	)		(1.1	)	(1.4	)	(0.9	)
Federal income tax credits		(6.8	)		(4.1	)	(11.1	)	(3.3	)
State income taxes		3.0			4.5		4.9		3.5
Medicare Part D subsidy legislation		-			2.8		-		2.2
Changes in uncertain tax positions, net		(1.3	)		-		(2.2	)	-
Valuation allowance		(2.2	)		-		(3.6	)	-
Other		-			0.5		0.4		0.5
Total	$	15.2		$	41.7		25.0	%	33.0	%


KCP&L	Income Tax Expense						Income Tax Rate
Three Months Ended June 30	2011			2010			2011		2010
	(millions)
Federal statutory income tax	$	17.4		$	24.4		35.0	%	35.0	%
Differences between book and tax
depreciation not normalized		0.8			(2.0	)	1.6		(2.9	)
Amortization of investment tax credits		(0.5	)		(0.3	)	(1.0	)	(0.5	)
Federal income tax credits		(3.7	)		(2.2	)	(7.6	)	(3.1	)
State income taxes		1.8			2.4		3.8		3.4
Changes in uncertain tax positions		0.4			-		0.9		-
Other		-			(0.8	)	(0.2	)	(1.1	)
Total	$	16.2		$	21.5		32.5	%	30.8	%


KCP&L	Income Tax Expense						Income Tax Rate
Year to Date June 30	2011			2010			2011		2010
	(millions)
Federal statutory income tax	$	18.4		$	33.8		35.0	%	35.0	%
Differences between book and tax
depreciation not normalized		1.6			(4.1	)	3.0		(4.3	)
Amortization of investment tax credits		(0.5	)		(0.7	)	(0.9	)	(0.7	)
Federal income tax credits		(6.7	)		(4.1	)	(12.9	)	(4.3	)
State income taxes		2.0			3.1		3.9		3.2
Medicare Part D subsidy legislation		-			2.8		-		2.9
Changes in uncertain tax positions		0.4			-		0.8		-
Other		(0.1	)		(1.7	)	(0.3	)	(1.7	)
Total	$	15.1		$	29.1		28.6	%	30.1	%

Uncertain Tax Positions

At June 30, 2011, and December 31, 2010, Great Plains Energy had $24.9 million and $42.0 million, respectively, of liabilities related to unrecognized tax benefits. Of these amounts, $15.1 million and $17.3 million, respectively, at June 30, 2011, and December 31, 2010, is expected to impact the effective tax rate if recognized. The $17.1 million decrease in unrecognized tax benefits is primarily due to a decrease of $18.4 million related to the settlement of the IRS audit for Great Plains Energy’s 2006-2008 tax years. The tax benefit recognized related to the 2006-2008 IRS audit was offset by an increase of $16.4 million in deferred income tax liabilities, which resulted in an increase to net income of $2.0 million.

At June 30, 2011, and December 31, 2010, KCP&L had $7.3 million and $19.1 million, respectively, of liabilities related to unrecognized tax benefits. Of these amounts, $0.3 million at June 30, 2011, and December 31, 2010, is expected to impact the effective tax rate if recognized. The $11.8 million decrease in unrecognized tax benefits is primarily due to a decrease of $12.1 million related to the settlement of the IRS audit for Great Plains Energy’s 2006-2008 tax years. The tax benefit recognized related to the 2006-2008 IRS audit was mostly offset by an increase in deferred income tax liabilities, which resulted in an insignificant impact to net income.

The following table reflects activity for Great Plains Energy and KCP&L related to the liability for unrecognized tax benefits.


	Great Plains Energy						KCP&L
	June 30			December 31			June 30			December 31
	2011			2010			2011			2010
	(millions)
Beginning balance	$	42.0		$	51.4		$	19.1		$	20.9
Additions for current year tax positions		0.7			2.7			-			1.3
Additions for prior year tax positions		0.6			2.1			0.6			1.5
Reductions for prior year tax positions		(18.7	)		(10.6	)		(12.4	)		(1.6	)
Settlements		-			(3.8	)		-			(2.9	)
Statute expirations		-			(0.3	)		-			(0.1	)
Foreign currency translation adjustments		0.3			0.5			-			-
Ending balance	$	24.9		$	42.0		$	7.3		$	19.1

Great Plains Energy and KCP&L recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in non-operating expenses. At June 30, 2011, and December 31, 2010, accrued interest related to unrecognized tax benefits for Great Plains Energy was $6.0 million and $6.7 million, respectively. Amounts accrued for penalties with respect to unrecognized tax benefits were $1.1 million at June 30, 2011, and December 31, 2010. KCP&L had accrued interest related to unrecognized tax benefits of $0.3 million and $1.4 million at June 30, 2011, and December 31, 2010, respectively. Amounts accrued for penalties with respect to unrecognized tax benefits for KCP&L are insignificant.

The Companies are unable to estimate the amount of unrecognized tax benefits that may be recognized in the next twelve months.