Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies [Text Block]

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

Great Plains Energy, a Missouri corporation incorporated in 2001, is a public utility holding company and does not own or operate any significant assets other than the stock of its subsidiaries.  Great Plains Energy's wholly owned direct subsidiaries with operations or active subsidiaries are as follows:

• 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 (KCP&L 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 has two active wholly owned subsidiaries, GMO Receivables Company and MPS Merchant Services, Inc. (MPS Merchant).  MPS Merchant has certain long-term natural gas contracts remaining from its former non-regulated trading operations.

Each of Great Plains Energy's and KCP&L's consolidated financial statements includes the accounts of their subsidiaries.  Intercompany transactions have been eliminated.

Great Plains Energy's sole reportable business segment is electric utility.  See Note 16 for additional information.

Basic and Diluted Earnings per Common Share Calculation

To determine basic EPS, preferred stock dividend requirements and net loss attributable to noncontrolling interest are deducted from net income before dividing by the average number of common shares outstanding.  The effect of dilutive securities, calculated using the treasury stock method, assumes the issuance of common shares applicable to performance shares, restricted stock and Equity Units. Great Plains Energy settled the Equity Units in June 2012.

The following table reconciles Great Plains Energy's basic and diluted EPS.

	Three Months Ended June 30				Year to Date June 30
	2013		2012		2013		2012
Income	(millions, except per share amounts)
Net income	$	63.6	$	58.1	$	89.6	$	48.8
Less: net loss attributable to noncontrolling interest	—		—		—		(0.2		)
Less: preferred stock dividend requirements	0.4		0.4		0.8		0.8
Earnings available for common shareholders	$	63.2	$	57.7	$	88.8	$	48.2
Common Shares Outstanding
Average number of common shares outstanding	153.5		139.6		153.4		137.7
Add: effect of dilutive securities	0.3		2.4		0.3		2.9
Diluted average number of common shares outstanding	153.8		142.0		153.7		140.6
Basic EPS	$	0.41	$	0.41	$	0.58	$	0.35
Diluted EPS	$	0.41	$	0.41	$	0.58	$	0.34

Anti-dilutive shares excluded from the computation of diluted EPS are detailed in the following table.

	Three Months Ended June 30		Year to Date June 30
	2013	2012	2013	2012
Performance shares	55,271	—	55,271	—
Restricted stock shares	—	10,617	21,652	10,617

Dividends Declared

In August 2013, Great Plains Energy's Board of Directors (Board) declared a quarterly dividend of $0.2175 per share on Great Plains Energy's common stock.  The common dividend is payable September 20, 2013, to shareholders of record as of August 29, 2013.  The Board also declared regular dividends on Great Plains Energy's preferred stock, payable December 1, 2013, to shareholders of record as of November 7, 2013.

In August 2013, KCP&L’s Board of Directors declared a cash dividend payable to Great Plains Energy of $23 million payable on September 19, 2013.