UNITED STATES | ||||
SECURITIES AND EXCHANGE COMMISSION | ||||
Washington, D.C. 20549 | ||||
FORM 8-K | ||||
Current Report | ||||
Pursuant to Section 13 or 15(d) of the | ||||
Securities Exchange Act of 1934 | ||||
Date of Report (Date of earliest event reported): | ||||
November 7, 2013 | ||||
Commission File Number | Exact Name of Registrant as Specified in its Charter, State of Incorporation, Address of Principal Executive Offices and Telephone Number | I.R.S. Employer Identification No. | ||
001-32206 | GREAT PLAINS ENERGY INCORPORATED | 43-1916803 | ||
(A Missouri Corporation) | ||||
1200 Main Street | ||||
Kansas City, Missouri 64105 | ||||
(816) 556-2200 | ||||
NOT APPLICABLE | ||||
(Former name or former address, if changed since last report) | ||||
000-51873 | KANSAS CITY POWER & LIGHT COMPANY | 44-0308720 | ||
(A Missouri Corporation) | ||||
1200 Main Street | ||||
Kansas City, Missouri 64105 | ||||
(816) 556-2200 | ||||
NOT APPLICABLE | ||||
(Former name or former address, if changed since last report) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act |
(17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits | |
Exhibit No. | Description |
99.1 | Press release issued by Great Plains Energy Incorporated on November 7, 2013. |
GREAT PLAINS ENERGY INCORPORATED | |
/s/ Kevin E. Bryant | |
Kevin E. Bryant | |
Vice President – Investor Relations and Strategic | |
Planning and Treasurer |
KANSAS CITY POWER & LIGHT COMPANY | |
/s/ Kevin E. Bryant | |
Kevin E. Bryant | |
Vice President – Investor Relations and Strategic | |
Planning and Treasurer |
Exhibit Index | |
Exhibit No. | Description |
99.1 | Press release issued by Great Plains Energy Incorporated on November 7, 2013. |
GREAT PLAINS ENERGY INCORPORATED | |||||||||||||||||
Consolidated Earnings and Earnings Per Share | |||||||||||||||||
Three Months Ended September 30 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Earnings | Earnings per Great | ||||||||||||||||
Plains Energy Share | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Electric Utility | $ | 145.4 | $ | 141.9 | $ | 0.95 | $ | 0.93 | |||||||||
Other | (2.3 | ) | 4.5 | (0.02 | ) | 0.02 | |||||||||||
Net income | 143.1 | 146.4 | 0.93 | 0.95 | |||||||||||||
Less: Net income attributable to noncontrolling interest | — | (0.2 | ) | — | — | ||||||||||||
Net income attributable to Great Plains Energy | 143.1 | 146.2 | 0.93 | 0.95 | |||||||||||||
Preferred dividends | (0.4 | ) | (0.4 | ) | — | — | |||||||||||
Earnings available for common shareholders | $ | 142.7 | $ | 145.8 | $ | 0.93 | $ | 0.95 |
• | Approximately $0.15 from new retail rates which became effective in January 2013; |
• | An estimated $0.08 impact from an increase in weather-normalized retail demand; and |
• | About a $0.01 increase in other margin. |
• | Approximately $0.18 from unfavorable weather with cooling degree days 18 percent below the warmer than normal weather in 2012; |
• | The results for 2012 included a tax benefit of $0.03 due to the release of uncertain tax positions; |
• | $0.02 from certain regulatory items including pension expense trackers and Missouri Energy Efficiency Investment Act (MEEIA) costs, which are offset with new retail rates; |
• | $0.01 from increased operating and maintenance expense at the Wolf Creek nuclear unit; |
• | $0.01 due to an increase in general taxes resulting from higher property taxes; and |
• | Approximately $0.01 from several other factors including increased depreciation that was partially offset by an increase in the equity component of Allowance for Funds Used During Construction (AFUDC). |
GREAT PLAINS ENERGY INCORPORATED | |||||||||||||||||
Consolidated Earnings and Earnings Per Share | |||||||||||||||||
Year to Date September 30 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Earnings | Earnings per Great | ||||||||||||||||
Plains Energy Share | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Electric Utility | $ | 238.5 | $ | 210.2 | $ | 1.55 | $ | 1.45 | |||||||||
Other | (5.8 | ) | (15.0 | ) | (0.04 | ) | (0.10 | ) | |||||||||
Net income | 232.7 | 195.2 | 1.51 | 1.35 | |||||||||||||
Preferred dividends | (1.2 | ) | (1.2 | ) | — | (0.01 | ) | ||||||||||
Earnings available for common shareholders | $ | 231.5 | $ | 194.0 | $ | 1.51 | $ | 1.34 |
• | An approximate $0.40 from new retail rates; |
• | An estimated $0.10 impact from an increase in weather-normalized retail demand; |
• | A $0.10 decrease in interest expense primarily resulting from the maturity of $500 million of 11.875 percent senior notes in July 2012, a lower interest rate on refinanced debt that was underlying Great Plains Energy’s Equity Units and an increase in the debt component of |
• | An estimated $0.05 impact at Wolf Creek primarily resulting from the unplanned outage during the first quarter of 2012. |
• | An estimated impact of $0.24 from less favorable weather driven by a 27 percent decrease in cooling degree days; |
• | Approximately an $0.08 decrease in other margin primarily due to increased purchased power expense and transmission of electricity by others; |
• | $0.07 from certain regulatory items including pension expense trackers, MEEIA costs and solar rebates provided to Missouri customers that were deferred as a regulatory asset in the first quarter 2012 with amortization beginning in the first quarter 2013. These items were offset with new retail rates; |
• | $0.04 due to an increase in general taxes resulting from higher property taxes; |
• | The results for 2012 included a tax benefit of $0.03 due to the release of uncertain tax positions; and |
• | Approximately $0.02 from a variety of other factors including dilution from the issuance of common stock upon the settlement of the Equity Units in June 2012 and increased depreciation partially offset by an increase in the equity component of AFUDC. |
• | A $15.3 million increase in pre-tax gross margin (a non-GAAP financial measure described in Attachment A) due to an estimated $38 million from new retail rates and approximately $20 million from an increase in weather-normalized retail demand. The increase was partially offset by an estimated $44 million due to weather in the third quarter 2013 that was not as warm as it was in 2012; |
• | A $15.9 million increase in pre-tax other operating expenses primarily due to the following: |
◦ | A $6.3 million increase in certain regulatory items including $2.8 million from an increase in pension expense trackers, $2.7 million from increased MEEIA costs and $0.8 million of amortization of the regulatory asset for solar rebates provided to Missouri customers. These increases were offset with new retail rates; |
◦ | A $2.9 million increase in Wolf Creek operating and maintenance expense; and |
◦ | A $2.6 million increase in general taxes resulting from higher property taxes; |
• | A $4.4 million increase in pre-tax depreciation and amortization expense driven by capital additions and higher depreciation rates established in KCP&L’s Kansas rate case which became effective in January 2013; and |
• | A $3.9 million increase in non-operating income and expense driven by a $3.9 million increase in the equity component of AFUDC. |
• | A $48.2 million increase in pre-tax gross margin mainly due to: |
◦ | An estimated $96 million from new retail rates; |
◦ | Approximately $24 million from an increase in weather-normalized retail demand; and |
◦ | The results for 2012 included an estimated $4 million impact from the unplanned outage at Wolf Creek. |
◦ | An estimated $56 million due to second quarter and third quarter 2013 weather that had substantially fewer cooling degree days compared to last year partially offset by a favorable increase in heating degree days during the first quarter 2013; and |
◦ | Approximately $20 million primarily resulting from increased purchased power expense and transmission of electricity by others. Purchased power expense increased primarily due to increased MWh purchases under new wind generation power purchase agreements, which are included in new retail rates. Transmission of electricity by others increased primarily due to Southwest Power Pool base plan funding transmission charges, of which a portion is included in new retail rates; |
• | A $16.9 million increase in pre-tax other operating expenses primarily due to the following: |
◦ | A $17.3 million increase in certain regulatory items including $6.5 million from an increase in pension expense trackers, $5.6 million from increased MEEIA costs and a $5.2 million increase relating to solar rebates provided to Missouri customers that were deferred as a regulatory asset in the first quarter 2012 with amortization beginning in the first quarter of 2013. These increases were offset with new retail rates; |
◦ | A $9.1 million increase in general taxes resulting from higher property taxes; and |
◦ | These increases were partially offset by a $7.1 million decrease in Wolf Creek operating and maintenance expense mostly due to the unplanned outage in 2012; |
• | An $11.9 million increase in pre-tax depreciation and amortization expense driven by capital additions and higher depreciation rates established in KCP&L’s Kansas rate case which became effective in the first quarter 2013; |
• | A $10.8 million increase in non-operating income and expense primarily due to a $8.8 million increase in the equity component of AFUDC; |
• | A $7.6 million decrease in pre-tax interest expense primarily driven by a $13.4 million decrease due to the maturity of $500 million of 11.875 percent senior notes in July 2012 and a $4.1 million increase in the debt component of AFUDC. The decrease was partially offset by an increase in interest expense of $5.5 million relating to intercompany loans from Great Plains Energy to GMO and a $5.1 million increase due to KCP&L’s issuance of $300 million of 3.15 percent senior notes in March 2013 and; |
• | A $9.5 million increase in income tax expense due to higher pre-tax income. |
• | A decrease in after-tax interest expense of $6.0 million as a result of the lower interest rate on the refinanced debt that was underlying the Equity Units; |
• | The results for 2012 included a tax benefit of $4.5 million due to the release of uncertain tax positions related to former GMO non-regulated operations; |
• | A $3.3 million increase in after-tax interest income from intercompany loans from Great Plains Energy to GMO; and |
• | An after-tax loss of $1.8 million on the sale of real estate in 2012. |
Great Plains Energy Incorporated | |||||||||||||||||
Reconciliation of Gross Margin to Operating Revenues | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended | Year to Date | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Operating revenues | $ | 765.0 | $ | 746.2 | $ | 1,907.5 | $ | 1,829.5 | |||||||||
Fuel | (156.6 | ) | (164.7 | ) | (410.0 | ) | (422.1 | ) | |||||||||
Purchased power | (25.7 | ) | (17.9 | ) | (99.4 | ) | (69.5 | ) | |||||||||
Transmission of electricity by others | (13.6 | ) | (9.8 | ) | (37.9 | ) | (25.9 | ) | |||||||||
Gross margin | $ | 569.1 | $ | 553.8 | $ | 1,360.2 | $ | 1,312.0 |