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): | ||||
February 26, 2014 | ||||
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 February 26, 2014. |
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 February 26, 2014. |
GREAT PLAINS ENERGY INCORPORATED | |||||||||||||||||
Consolidated Earnings and Earnings Per Share | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Earnings | Earnings per Great | ||||||||||||||||
Plains Energy Share | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Electric Utility | $ | 257.1 | $ | 216.6 | $ | 1.67 | $ | 1.47 | |||||||||
Other | (6.9 | ) | (16.7 | ) | (0.04 | ) | (0.11 | ) | |||||||||
Net income | 250.2 | 199.9 | 1.63 | 1.36 | |||||||||||||
Preferred dividends | (1.6 | ) | (1.6 | ) | (0.01 | ) | (0.01 | ) | |||||||||
Earnings available for common shareholders | $ | 248.6 | $ | 198.3 | $ | 1.62 | $ | 1.35 |
• | An estimated $0.46 from new retail rates; |
• | An approximate $0.18 impact from an increase in weather-normalized retail demand; |
• | A $0.09 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 Allowance for Funds Used During Construction (AFUDC). The decrease was partially offset by Kansas City Power & Light Company’s (KCP&L) issuance of $300 million of 3.15 percent senior notes in March 2013 and KCP&L Greater Missouri Operations Company’s (GMO) issuance of $350 million of senior notes with a weighted average coupon of 4.15 percent in August 2013; and |
• | An estimated $0.03 impact at the Wolf Creek nuclear unit primarily resulting from an unplanned outage during the first quarter of 2012 partially offset by higher operating and maintenance expenses in 2013. |
• | An estimated impact of $0.20 from less favorable weather driven by a 27 percent decrease in cooling degree days; |
• | Approximately a $0.10 decrease in other margin primarily due to increased purchased power and transmission expense; |
• | $0.09 from certain regulatory items including pension expense trackers, Missouri Energy Efficiency Investment Act (MEEIA) costs and solar rebates provided to Missouri customers |
• | $0.07 due to an increase in general taxes resulting from higher property taxes; and |
• | The results for 2012 included a tax benefit of $0.03 due to the release of uncertain tax positions. |
GREAT PLAINS ENERGY INCORPORATED | |||||||||||||||||
Consolidated Earnings and Earnings Per Share | |||||||||||||||||
Three Months Ended December 31 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Earnings | Earnings per Great | ||||||||||||||||
Plains Energy Share | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Electric Utility | $ | 18.6 | $ | 6.4 | $ | 0.12 | $ | 0.04 | |||||||||
Other | (1.1 | ) | (1.7 | ) | (0.01 | ) | (0.01 | ) | |||||||||
Net income | 17.5 | 4.7 | 0.11 | 0.03 | |||||||||||||
Preferred dividends | (0.4 | ) | (0.4 | ) | — | — | |||||||||||
Earnings available for common shareholders | $ | 17.1 | $ | 4.3 | $ | 0.11 | $ | 0.03 |
• | An estimated $0.07 impact from an increase in weather-normalized retail demand; |
• | Approximately $0.06 from new retail rates which became effective in January 2013; and |
• | About $0.04 from favorable weather driven by a 22 percent increase in heating degree days. |
• | $0.02 due to an increase in general taxes resulting from higher property taxes; |
• | $0.02 from increased operating and maintenance expense at Wolf Creek; |
• | About a $0.02 decrease in other margin; |
• | Approximately $0.02 from several factors, including depreciation, that was partially offset by an increase in the equity component of AFUDC; and |
• | $0.01 from MEEIA costs, which are offset by new retail rates. |
• | A $86.7 million increase in pre-tax gross margin (a non-GAAP financial measure described in Attachment A) mainly due to: |
◦ | An estimated $111 million primarily from new retail rates; |
◦ | Approximately $42 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 $47 million due to second quarter and third quarter 2013 weather that had substantially fewer cooling degree days compared to last year partially offset by first and fourth quarter 2013 weather that had an increase in heating degree days; and |
◦ | Approximately $23 million primarily resulting from increased purchased power and transmission expense. 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 expense increased primarily due to Southwest Power Pool base plan funding transmission charges, of which a portion is included in new retail rates; |
• | A $39.7 million increase in pre-tax other operating expenses primarily due to the following: |
◦ | A $22.0 million increase in certain regulatory items including $8.3 million from increased MEEIA costs, $7.6 million from an increase in pension expense trackers and a $6.1 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 by new retail rates; and |
◦ | A $15.3 million increase in general taxes resulting from higher property taxes. |
• | The 2012 results were impacted by a $4.3 million deferral to a regulatory asset for recovery in rates beginning in January 2013 for an organizational realignment and voluntary separation program. The deferral was a result of KCP&L’s rate case order issued in December 2012 by the Kansas Corporation Commission (KCC); |
• | A $17.4 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; |
• | A $21.8 million increase in non-operating income and expense primarily due to a $12.8 million increase in the equity component of AFUDC and $4.2 million of expense in 2012 from the accounting effect of GMO’s rate case order issued in January 2013 by the Missouri Public Service Commission (MPSC); |
• | A $6.8 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 |
• | A $13.4 million increase in income tax expense primarily due to higher pre-tax income. |
• | A $38.5 million increase in pre-tax gross margin primarily due to: |
◦ | Approximately $18 million from an increase in weather-normalized retail demand; |
◦ | An estimated $15 million from new retail rates; and |
◦ | Approximately $9 million due to weather in the fourth quarter 2013 that was colder than 2012; |
• | A $22.8 million increase in pre-tax other operating expenses primarily due to the following: |
◦ | A $6.2 million increase in general taxes resulting from higher property taxes; |
◦ | A $4.7 million increase in certain regulatory items including $2.7 million from increased MEEIA costs, $1.1 million from an increase in pension expense trackers, and $0.9 million of amortization of the regulatory asset for solar rebates provided to Missouri customers. These increases were offset by new retail rates; and |
◦ | A $4.7 million increase in Wolf Creek operating and maintenance expense; |
• | The 2012 results were impacted by a $4.3 million deferral to a regulatory asset for recovery in rates beginning in January 2013 for the organizational realignment and voluntary separation program; |
• | A $5.5 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; |
• | A $11.0 million increase in non-operating income and expense primarily due to a $4.0 million increase in the equity component of AFUDC and $4.2 million of expense in 2012 from the accounting effect of GMO’s rate case order issued in January 2013 by the MPSC; and |
• | A $3.9 million increase in income tax expense primarily due to higher pre-tax income. |
• | A decrease in after-tax interest expense of $8.1 million as a result of the lower interest rate on the refinanced debt that was underlying the Equity Units and the maturity of Great Plains Energy’s $250 million of 2.75 percent senior notes in August 2013; |
• | 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 $2.3 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 | ||||||||||||||||
December 31 | December 31 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(millions) | |||||||||||||||||
Operating revenues | $ | 538.8 | $ | 480.4 | $ | 2,446.3 | $ | 2,309.9 | |||||||||
Fuel | (129.5 | ) | (117.4 | ) | (539.5 | ) | (539.5 | ) | |||||||||
Purchased power | (26.5 | ) | (24.5 | ) | (125.9 | ) | (94.0 | ) | |||||||||
Transmission | (15.3 | ) | (9.5 | ) | (53.2 | ) | (35.4 | ) | |||||||||
Gross margin | $ | 367.5 | $ | 329.0 | $ | 1,727.7 | $ | 1,641.0 |