Exact name of registrant as specified in its charter, | ||||
Commission | state of incorporation, address of principal | I.R.S. Employer | ||
File Number | executive offices and telephone number | Identification Number | ||
001-32206 | GREAT PLAINS ENERGY INCORPORATED | 43-1916803 | ||
(A Missouri Corporation) | ||||
1200 Main Street | ||||
Kansas City, Missouri 64105 | ||||
(816) 556-2200 | ||||
000-51873 | KANSAS CITY POWER & LIGHT COMPANY | 44-0308720 | ||
(A Missouri Corporation) | ||||
1200 Main Street | ||||
Kansas City, Missouri 64105 | ||||
(816) 556-2200 |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | |||||||||||||
Great Plains Energy Incorporated | Yes | X | No | _ | Kansas City Power & Light Company | Yes | X | No | _ | ||||
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). | |||||||||||||
Great Plains Energy Incorporated | Yes | X | No | _ | Kansas City Power & Light Company | Yes | X | No | _ | ||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. | |||||||||||||
Great Plains Energy Incorporated | Large accelerated filer | X | Accelerated filer | _ | |||||||||
Non-accelerated filer | _ | Smaller reporting company | _ | ||||||||||
Kansas City Power & Light Company | Large accelerated filer | _ | Accelerated filer | _ | |||||||||
Non-accelerated filer | X | Smaller reporting company | _ | ||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | |||||||||||||
Great Plains Energy Incorporated | Yes | _ | No | X | Kansas City Power & Light Company | Yes | _ | No | X | ||||
On May 2, 2016, Great Plains Energy Incorporated had 154,716,914 shares of common stock outstanding. On May 2, 2016, Kansas City Power & Light Company had one share of common stock outstanding and held by Great Plains Energy Incorporated. | |||||||||||||
Kansas City Power & Light Company meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format. |
TABLE OF CONTENTS | |||
Page Number | |||
Item 1. | |||
Note 1: | |||
Note 2: | |||
Note 3: | |||
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Note 7: | |||
Note 8: | |||
Note 9: | |||
Note 10: | |||
Note 11: | |||
Note 12: | |||
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Note 14: | |||
Note 15: | |||
Note 16: | |||
Note 17: | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. | |||
Abbreviation or Acronym | Definition | |
AEPTHC | AEP Transmission Holding Company, LLC, a wholly owned subsidiary of American Electric Power Company, Inc. | |
AFUDC | Allowance for Funds Used During Construction | |
ASU | Accounting Standards Update | |
Board | Great Plains Energy Board of Directors | |
CCRs | Coal combustion residuals | |
Clean Air Act | Clean Air Act Amendments of 1990 | |
CO2 | Carbon dioxide | |
Company | Great Plains Energy Incorporated and its consolidated subsidiaries | |
Companies | Great Plains Energy Incorporated and its consolidated subsidiaries and KCP&L and its consolidated subsidiaries | |
DOE | Department of Energy | |
EIRR | Environmental Improvement Revenue Refunding | |
EPA | Environmental Protection Agency | |
EPS | Earnings per common share | |
ERISA | Employee Retirement Income Security Act of 1974, as amended | |
FASB | Financial Accounting Standards Board | |
FERC | The Federal Energy Regulatory Commission | |
GAAP | Generally Accepted Accounting Principles | |
GMO | KCP&L Greater Missouri Operations Company, a wholly owned subsidiary of Great Plains Energy | |
GPETHC | GPE Transmission Holding Company LLC, a wholly owned subsidiary of Great Plains Energy | |
Great Plains Energy | Great Plains Energy Incorporated and its consolidated subsidiaries | |
KCC | The State Corporation Commission of the State of Kansas | |
KCP&L | Kansas City Power & Light Company, a wholly owned subsidiary of Great Plains Energy, and its consolidated subsidiaries | |
KCP&L Receivables Company | Kansas City Power & Light Receivables Company, a wholly owned subsidiary of KCP&L | |
kWh | Kilowatt hour | |
MATS | Mercury and Air Toxics Standards | |
MD&A | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
MDNR | Missouri Department of Natural Resources | |
MEEIA | Missouri Energy Efficiency Investment Act |
Abbreviation or Acronym | Definition | |
MGP | Manufactured gas plant | |
MPS Merchant | MPS Merchant Services, Inc., a wholly owned subsidiary of GMO | |
MPSC | Public Service Commission of the State of Missouri | |
MW | Megawatt | |
MWh | Megawatt hour | |
NAV | Net Asset Value | |
NPNS | Normal purchases and normal sales | |
NRC | Nuclear Regulatory Commission | |
OCI | Other Comprehensive Income | |
RCRA | Resource Conservation and Recovery Act | |
SEC | Securities and Exchange Commission | |
SERP | Supplemental Executive Retirement Plan | |
SPP | Southwest Power Pool, Inc. | |
TCR | Transmission Congestion Right | |
TDC | Transmission Delivery Charge | |
Transource | Transource Energy, LLC and its subsidiaries, 13.5% owned by GPETHC | |
WCNOC | Wolf Creek Nuclear Operating Corporation | |
Wolf Creek | Wolf Creek Generating Station |
GREAT PLAINS ENERGY INCORPORATED | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(Unaudited) | ||||||||||||
March 31 | December 31 | |||||||||||
2016 | 2015 | |||||||||||
ASSETS | (millions, except share amounts) | |||||||||||
Current Assets | ||||||||||||
Cash and cash equivalents | $ | 7.8 | $ | 11.3 | ||||||||
Funds on deposit | 3.8 | 2.1 | ||||||||||
Receivables, net | 108.1 | 147.7 | ||||||||||
Accounts receivable pledged as collateral | 175.0 | 175.0 | ||||||||||
Fuel inventories, at average cost | 112.1 | 118.4 | ||||||||||
Materials and supplies, at average cost | 157.8 | 155.7 | ||||||||||
Deferred refueling outage costs | 14.3 | 19.2 | ||||||||||
Refundable income taxes | 1.1 | 3.8 | ||||||||||
Prepaid expenses and other assets | 31.1 | 31.0 | ||||||||||
Total | 611.1 | 664.2 | ||||||||||
Utility Plant, at Original Cost | ||||||||||||
Electric | 13,260.0 | 13,189.9 | ||||||||||
Less - accumulated depreciation | 5,003.7 | 4,943.7 | ||||||||||
Net utility plant in service | 8,256.3 | 8,246.2 | ||||||||||
Construction work in progress | 377.0 | 347.9 | ||||||||||
Nuclear fuel, net of amortization of $200.8 and $192.5 | 61.3 | 68.3 | ||||||||||
Total | 8,694.6 | 8,662.4 | ||||||||||
Investments and Other Assets | ||||||||||||
Nuclear decommissioning trust fund | 204.8 | 200.7 | ||||||||||
Regulatory assets | 992.9 | 979.1 | ||||||||||
Goodwill | 169.0 | 169.0 | ||||||||||
Other | 70.7 | 63.2 | ||||||||||
Total | 1,437.4 | 1,412.0 | ||||||||||
Total | $ | 10,743.1 | $ | 10,738.6 |
GREAT PLAINS ENERGY INCORPORATED | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(Unaudited) | ||||||||||||
March 31 | December 31 | |||||||||||
2016 | 2015 | |||||||||||
LIABILITIES AND CAPITALIZATION | (millions, except share amounts) | |||||||||||
Current Liabilities | ||||||||||||
Notes payable | $ | 15.0 | $ | 10.0 | ||||||||
Collateralized note payable | 175.0 | 175.0 | ||||||||||
Commercial paper | 288.3 | 224.0 | ||||||||||
Current maturities of long-term debt | 1.1 | 1.1 | ||||||||||
Accounts payable | 220.9 | 352.9 | ||||||||||
Accrued taxes | 66.7 | 31.6 | ||||||||||
Accrued interest | 59.1 | 44.7 | ||||||||||
Accrued compensation and benefits | 41.0 | 41.4 | ||||||||||
Pension and post-retirement liability | 3.4 | 3.4 | ||||||||||
Other | 28.8 | 31.6 | ||||||||||
Total | 899.3 | 915.7 | ||||||||||
Deferred Credits and Other Liabilities | ||||||||||||
Deferred income taxes | 1,171.7 | 1,158.8 | ||||||||||
Deferred tax credits | 124.7 | 125.1 | ||||||||||
Asset retirement obligations | 276.4 | 275.9 | ||||||||||
Pension and post-retirement liability | 465.2 | 455.2 | ||||||||||
Regulatory liabilities | 294.2 | 284.4 | ||||||||||
Other | 77.3 | 82.9 | ||||||||||
Total | 2,409.5 | 2,382.3 | ||||||||||
Capitalization | ||||||||||||
Great Plains Energy common shareholders' equity | ||||||||||||
Common stock - 250,000,000 shares authorized without par value 154,841,256 and 154,504,900 shares issued, stated value | 2,655.6 | 2,646.7 | ||||||||||
Retained earnings | 1,009.6 | 1,024.4 | ||||||||||
Treasury stock - 130,310 and 101,229 shares, at cost | (3.8 | ) | (2.6 | ) | ||||||||
Accumulated other comprehensive loss | (10.5 | ) | (12.0 | ) | ||||||||
Total | 3,650.9 | 3,656.5 | ||||||||||
Cumulative preferred stock $100 par value | ||||||||||||
3.80% - 100,000 shares issued | 10.0 | 10.0 | ||||||||||
4.50% - 100,000 shares issued | 10.0 | 10.0 | ||||||||||
4.20% - 70,000 shares issued | 7.0 | 7.0 | ||||||||||
4.35% - 120,000 shares issued | 12.0 | 12.0 | ||||||||||
Total | 39.0 | 39.0 | ||||||||||
Long-term debt (Note 9) | 3,744.4 | 3,745.1 | ||||||||||
Total | 7,434.3 | 7,440.6 | ||||||||||
Commitments and Contingencies (Note 10) | ||||||||||||
Total | $ | 10,743.1 | $ | 10,738.6 |
GREAT PLAINS ENERGY INCORPORATED | |||||||
Consolidated Statements of Comprehensive Income | |||||||
(Unaudited) | |||||||
Three Months Ended March 31 | 2016 | 2015 | |||||
Operating Revenues | (millions, except per share amounts) | ||||||
Electric revenues | $ | 572.1 | $ | 549.1 | |||
Operating Expenses | |||||||
Fuel | 90.6 | 107.6 | |||||
Purchased power | 45.0 | 45.4 | |||||
Transmission | 23.5 | 20.9 | |||||
Utility operating and maintenance expenses | 179.4 | 171.5 | |||||
Depreciation and amortization | 85.2 | 79.8 | |||||
General taxes | 56.3 | 52.7 | |||||
Other | 2.2 | 1.1 | |||||
Total | 482.2 | 479.0 | |||||
Operating income | 89.9 | 70.1 | |||||
Non-operating income | 2.1 | 6.0 | |||||
Non-operating expenses | (3.4 | ) | (3.7 | ) | |||
Interest charges | (51.2 | ) | (47.3 | ) | |||
Income before income tax expense and income from equity investments | 37.4 | 25.1 | |||||
Income tax expense | (11.7 | ) | (6.5 | ) | |||
Income from equity investments, net of income taxes | 0.7 | 0.3 | |||||
Net income | 26.4 | 18.9 | |||||
Preferred stock dividend requirements | 0.4 | 0.4 | |||||
Earnings available for common shareholders | $ | 26.0 | $ | 18.5 | |||
Average number of basic common shares outstanding | 154.4 | 154.0 | |||||
Average number of diluted common shares outstanding | 155.0 | 154.4 | |||||
Basic and diluted earnings per common share | $ | 0.17 | $ | 0.12 | |||
Cash dividends per common share | $ | 0.2625 | $ | 0.245 | |||
Comprehensive Income | |||||||
Net income | $ | 26.4 | $ | 18.9 | |||
Other comprehensive income | |||||||
Derivative hedging activity | |||||||
Reclassification to expenses, net of tax | 1.4 | 1.4 | |||||
Derivative hedging activity, net of tax | 1.4 | 1.4 | |||||
Defined benefit pension plans | |||||||
Amortization of net losses included in net periodic benefit costs, net of tax | 0.1 | 0.1 | |||||
Change in unrecognized pension expense, net of tax | 0.1 | 0.1 | |||||
Total other comprehensive income | 1.5 | 1.5 | |||||
Comprehensive income | $ | 27.9 | $ | 20.4 |
GREAT PLAINS ENERGY INCORPORATED | |||||||
Consolidated Statements of Cash Flows | |||||||
(Unaudited) | |||||||
Three Months Ended March 31 | 2016 | 2015 | |||||
Cash Flows from Operating Activities | (millions) | ||||||
Net income | $ | 26.4 | $ | 18.9 | |||
Adjustments to reconcile income to net cash from operating activities: | |||||||
Depreciation and amortization | 85.2 | 79.8 | |||||
Amortization of: | |||||||
Nuclear fuel | 8.3 | 4.9 | |||||
Other | 12.8 | 12.4 | |||||
Deferred income taxes, net | 12.0 | 6.5 | |||||
Investment tax credit amortization | (0.4 | ) | (0.4 | ) | |||
Income from equity investments, net of income taxes | (0.7 | ) | (0.3 | ) | |||
Other operating activities (Note 2) | (16.3 | ) | (22.4 | ) | |||
Net cash from operating activities | 127.3 | 99.4 | |||||
Cash Flows from Investing Activities | |||||||
Utility capital expenditures | (133.6 | ) | (217.9 | ) | |||
Allowance for borrowed funds used during construction | (1.4 | ) | (2.7 | ) | |||
Purchases of nuclear decommissioning trust investments | (10.5 | ) | (11.8 | ) | |||
Proceeds from nuclear decommissioning trust investments | 9.7 | 11.0 | |||||
Other investing activities | (17.9 | ) | (9.1 | ) | |||
Net cash from investing activities | (153.7 | ) | (230.5 | ) | |||
Cash Flows from Financing Activities | |||||||
Issuance of common stock | 0.7 | 0.8 | |||||
Issuance fees | (0.2 | ) | — | ||||
Repayment of long-term debt | (1.1 | ) | (15.1 | ) | |||
Net change in short-term borrowings | 69.3 | 183.7 | |||||
Dividends paid | (40.9 | ) | (38.2 | ) | |||
Purchase of treasury stock | (4.9 | ) | (1.4 | ) | |||
Other financing activities | — | 0.5 | |||||
Net cash from financing activities | 22.9 | 130.3 | |||||
Net Change in Cash and Cash Equivalents | (3.5 | ) | (0.8 | ) | |||
Cash and Cash Equivalents at Beginning of Year | 11.3 | 13.0 | |||||
Cash and Cash Equivalents at End of Period | $ | 7.8 | $ | 12.2 |
GREAT PLAINS ENERGY INCORPORATED | |||||||||||||
Consolidated Statements of Common Shareholders' Equity | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended March 31 | 2016 | 2015 | |||||||||||
Shares | Amount | Shares | Amount | ||||||||||
Common Stock | (millions, except share amounts) | ||||||||||||
Beginning balance | 154,504,900 | $ | 2,646.7 | 154,254,037 | $ | 2,639.3 | |||||||
Issuance of common stock | 336,356 | 10.0 | 122,420 | 3.2 | |||||||||
Equity compensation expense, net of forfeitures | 0.8 | 0.3 | |||||||||||
Unearned Compensation | |||||||||||||
Issuance of restricted common stock | (2.8 | ) | (2.0 | ) | |||||||||
Compensation expense recognized | 0.6 | 0.5 | |||||||||||
Other | 0.3 | — | |||||||||||
Ending balance | 154,841,256 | 2,655.6 | 154,376,457 | 2,641.3 | |||||||||
Retained Earnings | |||||||||||||
Beginning balance | 1,024.4 | 967.8 | |||||||||||
Net income | 26.4 | 18.9 | |||||||||||
Dividends: | |||||||||||||
Common stock ($0.2625 and $0.245 per share) | (40.5 | ) | (37.8 | ) | |||||||||
Preferred stock - at required rates | (0.4 | ) | (0.4 | ) | |||||||||
Performance shares | (0.3 | ) | (0.2 | ) | |||||||||
Ending balance | 1,009.6 | 948.3 | |||||||||||
Treasury Stock | |||||||||||||
Beginning balance | (101,229 | ) | (2.6 | ) | (91,281 | ) | (2.3 | ) | |||||
Treasury shares acquired | (134,484 | ) | (4.0 | ) | (50,899 | ) | (1.3 | ) | |||||
Treasury shares reissued | 105,403 | 2.8 | 47,085 | 1.2 | |||||||||
Ending balance | (130,310 | ) | (3.8 | ) | (95,095 | ) | (2.4 | ) | |||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Beginning balance | (12.0 | ) | (18.7 | ) | |||||||||
Derivative hedging activity, net of tax | 1.4 | 1.4 | |||||||||||
Change in unrecognized pension expense, net of tax | 0.1 | 0.1 | |||||||||||
Ending balance | (10.5 | ) | (17.2 | ) | |||||||||
Total Great Plains Energy Common Shareholders' Equity | $ | 3,650.9 | $ | 3,570.0 |
KANSAS CITY POWER & LIGHT COMPANY | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(Unaudited) | ||||||||||||
March 31 | December 31 | |||||||||||
2016 | 2015 | |||||||||||
ASSETS | (millions, except share amounts) | |||||||||||
Current Assets | ||||||||||||
Cash and cash equivalents | $ | 2.5 | $ | 2.3 | ||||||||
Funds on deposit | 1.4 | 0.5 | ||||||||||
Receivables, net | 101.2 | 129.2 | ||||||||||
Related party receivables | 57.4 | 65.8 | ||||||||||
Accounts receivable pledged as collateral | 110.0 | 110.0 | ||||||||||
Fuel inventories, at average cost | 78.6 | 83.5 | ||||||||||
Materials and supplies, at average cost | 116.6 | 114.6 | ||||||||||
Deferred refueling outage costs | 14.3 | 19.2 | ||||||||||
Refundable income taxes | 0.9 | 79.0 | ||||||||||
Prepaid expenses and other assets | 28.0 | 27.1 | ||||||||||
Total | 510.9 | 631.2 | ||||||||||
Utility Plant, at Original Cost | ||||||||||||
Electric | 9,686.2 | 9,640.4 | ||||||||||
Less - accumulated depreciation | 3,772.1 | 3,722.6 | ||||||||||
Net utility plant in service | 5,914.1 | 5,917.8 | ||||||||||
Construction work in progress | 264.7 | 246.6 | ||||||||||
Nuclear fuel, net of amortization of $200.8 and $192.5 | 61.3 | 68.3 | ||||||||||
Total | 6,240.1 | 6,232.7 | ||||||||||
Investments and Other Assets | ||||||||||||
Nuclear decommissioning trust fund | 204.8 | 200.7 | ||||||||||
Regulatory assets | 742.8 | 732.4 | ||||||||||
Other | 19.3 | 17.6 | ||||||||||
Total | 966.9 | 950.7 | ||||||||||
Total | $ | 7,717.9 | $ | 7,814.6 |
KANSAS CITY POWER & LIGHT COMPANY | |||||||||||
Consolidated Balance Sheets | |||||||||||
(Unaudited) | |||||||||||
March 31 | December 31 | ||||||||||
2016 | 2015 | ||||||||||
LIABILITIES AND CAPITALIZATION | (millions, except share amounts) | ||||||||||
Current Liabilities | |||||||||||
Collateralized note payable | $ | 110.0 | $ | 110.0 | |||||||
Commercial paper | 85.8 | 180.3 | |||||||||
Accounts payable | 175.9 | 258.8 | |||||||||
Accrued taxes | 49.5 | 25.6 | |||||||||
Accrued interest | 42.3 | 32.4 | |||||||||
Accrued compensation and benefits | 41.0 | 41.4 | |||||||||
Pension and post-retirement liability | 2.0 | 2.0 | |||||||||
Other | 11.7 | 12.6 | |||||||||
Total | 518.2 | 663.1 | |||||||||
Deferred Credits and Other Liabilities | |||||||||||
Deferred income taxes | 1,143.8 | 1,132.6 | |||||||||
Deferred tax credits | 123.6 | 123.8 | |||||||||
Asset retirement obligations | 239.5 | 239.3 | |||||||||
Pension and post-retirement liability | 443.5 | 433.4 | |||||||||
Regulatory liabilities | 165.8 | 164.6 | |||||||||
Other | 61.0 | 61.6 | |||||||||
Total | 2,177.2 | 2,155.3 | |||||||||
Capitalization | |||||||||||
Common shareholder's equity | |||||||||||
Common stock - 1,000 shares authorized without par value | |||||||||||
1 share issued, stated value | 1,563.1 | 1,563.1 | |||||||||
Retained earnings | 904.2 | 879.6 | |||||||||
Accumulated other comprehensive loss | (8.2 | ) | (9.6 | ) | |||||||
Total | 2,459.1 | 2,433.1 | |||||||||
Long-term debt (Note 9) | 2,563.4 | 2,563.1 | |||||||||
Total | 5,022.5 | 4,996.2 | |||||||||
Commitments and Contingencies (Note 10) | |||||||||||
Total | $ | 7,717.9 | $ | 7,814.6 |
KANSAS CITY POWER & LIGHT COMPANY | |||||||
Consolidated Statements of Comprehensive Income | |||||||
(Unaudited) | |||||||
Three Months Ended March 31 | 2016 | 2015 | |||||
Operating Revenues | (millions) | ||||||
Electric revenues | $ | 400.9 | $ | 370.4 | |||
Operating Expenses | |||||||
Fuel | 61.5 | 74.8 | |||||
Purchased power | 24.8 | 21.9 | |||||
Transmission | 15.4 | 13.4 | |||||
Operating and maintenance expenses | 123.7 | 118.3 | |||||
Depreciation and amortization | 61.1 | 56.5 | |||||
General taxes | 43.6 | 40.2 | |||||
Other | 0.2 | — | |||||
Total | 330.3 | 325.1 | |||||
Operating income | 70.6 | 45.3 | |||||
Non-operating income | 1.3 | 4.4 | |||||
Non-operating expenses | (1.3 | ) | (1.7 | ) | |||
Interest charges | (35.3 | ) | (31.5 | ) | |||
Income before income tax expense | 35.3 | 16.5 | |||||
Income tax expense | (10.7 | ) | (3.3 | ) | |||
Net income | $ | 24.6 | $ | 13.2 | |||
Comprehensive Income | |||||||
Net income | $ | 24.6 | $ | 13.2 | |||
Other comprehensive income | |||||||
Derivative hedging activity | |||||||
Reclassification to expenses, net of tax | 1.4 | 1.4 | |||||
Derivative hedging activity, net of tax | 1.4 | 1.4 | |||||
Total other comprehensive income | 1.4 | 1.4 | |||||
Comprehensive income | $ | 26.0 | $ | 14.6 |
KANSAS CITY POWER & LIGHT COMPANY | ||||||||||
Consolidated Statements of Cash Flows | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended March 31 | 2016 | 2015 | ||||||||
Cash Flows from Operating Activities | (millions) | |||||||||
Net income | $ | 24.6 | $ | 13.2 | ||||||
Adjustments to reconcile income to net cash from operating activities: | ||||||||||
Depreciation and amortization | 61.1 | 56.5 | ||||||||
Amortization of: | ||||||||||
Nuclear fuel | 8.3 | 4.9 | ||||||||
Other | 8.4 | 7.4 | ||||||||
Deferred income taxes, net | 10.4 | 10.3 | ||||||||
Investment tax credit amortization | (0.2 | ) | (0.2 | ) | ||||||
Other operating activities (Note 2) | 75.8 | 60.2 | ||||||||
Net cash from operating activities | 188.4 | 152.3 | ||||||||
Cash Flows from Investing Activities | ||||||||||
Utility capital expenditures | (83.2 | ) | (181.8 | ) | ||||||
Allowance for borrowed funds used during construction | (0.9 | ) | (2.1 | ) | ||||||
Purchases of nuclear decommissioning trust investments | (10.5 | ) | (11.8 | ) | ||||||
Proceeds from nuclear decommissioning trust investments | 9.7 | 11.0 | ||||||||
Other investing activities | (8.6 | ) | (6.6 | ) | ||||||
Net cash from investing activities | (93.5 | ) | (191.3 | ) | ||||||
Cash Flows from Financing Activities | ||||||||||
Issuance fees | (0.2 | ) | — | |||||||
Repayment of long-term debt | — | (14.0 | ) | |||||||
Net change in short-term borrowings | (94.5 | ) | 65.7 | |||||||
Net money pool borrowings | — | (12.6 | ) | |||||||
Net cash from financing activities | (94.7 | ) | 39.1 | |||||||
Net Change in Cash and Cash Equivalents | 0.2 | 0.1 | ||||||||
Cash and Cash Equivalents at Beginning of Year | 2.3 | 2.7 | ||||||||
Cash and Cash Equivalents at End of Period | $ | 2.5 | $ | 2.8 |
KANSAS CITY POWER & LIGHT COMPANY | |||||||||||||
Consolidated Statements of Common Shareholder's Equity | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended March 31 | 2016 | 2015 | |||||||||||
Shares | Amount | Shares | Amount | ||||||||||
(millions, except share amounts) | |||||||||||||
Common Stock | 1 | $ | 1,563.1 | 1 | $ | 1,563.1 | |||||||
Retained Earnings | |||||||||||||
Beginning balance | 879.6 | 726.8 | |||||||||||
Net income | 24.6 | 13.2 | |||||||||||
Ending balance | 904.2 | 740.0 | |||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Beginning balance | (9.6 | ) | (14.9 | ) | |||||||||
Derivative hedging activity, net of tax | 1.4 | 1.4 | |||||||||||
Ending balance | (8.2 | ) | (13.5 | ) | |||||||||
Total Common Shareholder's Equity | $ | 2,459.1 | $ | 2,289.6 |
• | 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 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. |
Three Months Ended March 31 | 2016 | 2015 | |||||
Income | (millions, except per share amounts) | ||||||
Net income | $ | 26.4 | $ | 18.9 | |||
Less: preferred stock dividend requirements | 0.4 | 0.4 | |||||
Earnings available for common shareholders | $ | 26.0 | $ | 18.5 | |||
Common Shares Outstanding | |||||||
Average number of common shares outstanding | 154.4 | 154.0 | |||||
Add: effect of dilutive securities | 0.6 | 0.4 | |||||
Diluted average number of common shares outstanding | 155.0 | 154.4 | |||||
Basic and diluted EPS | $ | 0.17 | $ | 0.12 |
Three Months Ended March 31 | 2016 | 2015 | |||
Performance shares | 372,093 | — |
Great Plains Energy Other Operating Activities | |||||||
Three Months Ended March 31 | 2016 | 2015 | |||||
Cash flows affected by changes in: | (millions) | ||||||
Receivables | $ | 39.7 | $ | 17.8 | |||
Fuel inventories | 6.3 | (12.1 | ) | ||||
Materials and supplies | (2.1 | ) | 1.0 | ||||
Accounts payable | (120.4 | ) | (88.0 | ) | |||
Accrued taxes | 38.0 | 34.5 | |||||
Accrued interest | 14.4 | 16.6 | |||||
Deferred refueling outage costs | 4.9 | (15.6 | ) | ||||
Pension and post-retirement benefit obligations | 23.7 | 16.0 | |||||
Allowance for equity funds used during construction | (0.9 | ) | (3.3 | ) | |||
Fuel recovery mechanisms | (4.6 | ) | 8.7 | ||||
Other | (15.3 | ) | 2.0 | ||||
Total other operating activities | $ | (16.3 | ) | $ | (22.4 | ) | |
Cash paid during the period: | |||||||
Interest | $ | 33.3 | $ | 27.4 | |||
Income taxes | $ | 0.1 | $ | 0.1 | |||
Non-cash investing activities: | |||||||
Liabilities accrued for capital expenditures | $ | 24.7 | $ | 38.7 |
KCP&L Other Operating Activities | |||||||
Three Months Ended March 31 | 2016 | 2015 | |||||
Cash flows affected by changes in: | (millions) | ||||||
Receivables | $ | 36.5 | $ | 29.7 | |||
Fuel inventories | 4.9 | (11.6 | ) | ||||
Materials and supplies | (2.0 | ) | 0.9 | ||||
Accounts payable | (75.5 | ) | (43.3 | ) | |||
Accrued taxes | 102.2 | 73.3 | |||||
Accrued interest | 9.9 | 12.1 | |||||
Deferred refueling outage costs | 4.9 | (15.6 | ) | ||||
Pension and post-retirement benefit obligations | 23.9 | 16.2 | |||||
Allowance for equity funds used during construction | (0.6 | ) | (2.7 | ) | |||
Fuel recovery mechanisms | (14.3 | ) | (2.2 | ) | |||
Other | (14.1 | ) | 3.4 | ||||
Total other operating activities | $ | 75.8 | $ | 60.2 | |||
Cash paid during the period: | |||||||
Interest | $ | 22.2 | $ | 16.4 | |||
Non-cash investing activities: | |||||||
Liabilities accrued for capital expenditures | $ | 16.5 | $ | 34.8 |
March 31 | December 31 | |||||||||
2016 | 2015 | |||||||||
Great Plains Energy | (millions) | |||||||||
Customer accounts receivable - billed | $ | 2.1 | $ | 3.4 | ||||||
Customer accounts receivable - unbilled | 45.2 | 71.6 | ||||||||
Allowance for doubtful accounts - customer accounts receivable | (4.5 | ) | (3.8 | ) | ||||||
Other receivables | 65.3 | 76.5 | ||||||||
Total | $ | 108.1 | $ | 147.7 | ||||||
KCP&L | ||||||||||
Customer accounts receivable - billed | $ | 1.2 | $ | 2.8 | ||||||
Customer accounts receivable - unbilled | 41.4 | 58.8 | ||||||||
Allowance for doubtful accounts - customer accounts receivable | (2.0 | ) | (1.8 | ) | ||||||
Other receivables | 60.6 | 69.4 | ||||||||
Total | $ | 101.2 | $ | 129.2 |
March 31 2016 | December 31 2015 | ||||||||||
Decommissioning Trust | (millions) | ||||||||||
Beginning balance January 1 | $ | 200.7 | $ | 199.0 | |||||||
Contributions | 0.8 | 3.3 | |||||||||
Earned income, net of fees | 1.1 | 3.4 | |||||||||
Net realized gains | — | 0.7 | |||||||||
Net unrealized gains (losses) | 2.2 | (5.7 | ) | ||||||||
Ending balance | $ | 204.8 | $ | 200.7 |
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||
Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value | Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||||||||||||
Equity securities | $ | 90.9 | $ | 48.8 | $ | (2.6 | ) | $ | 137.1 | $ | 89.6 | $ | 47.9 | $ | (2.1 | ) | $ | 135.4 | |||||||||||||||||||||||||||
Debt securities | 61.4 | 4.0 | (0.1 | ) | 65.3 | 59.6 | 2.6 | (0.5 | ) | 61.7 | |||||||||||||||||||||||||||||||||||
Other | 2.4 | — | — | 2.4 | 3.6 | — | — | 3.6 | |||||||||||||||||||||||||||||||||||||
Total | $ | 154.7 | $ | 52.8 | $ | (2.7 | ) | $ | 204.8 | $ | 152.8 | $ | 50.5 | $ | (2.6 | ) | $ | 200.7 |
Three Months Ended March 31 | 2016 | 2015 | |||||
(millions) | |||||||
Realized gains | $ | 0.7 | $ | 1.4 | |||
Realized losses | (0.7 | ) | (0.6 | ) |
Pension Benefits | Other Benefits | |||||||||||||||
Three Months Ended March 31 | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Components of net periodic benefit costs | (millions) | |||||||||||||||
Service cost | $ | 10.5 | $ | 11.3 | $ | 0.7 | $ | 0.8 | ||||||||
Interest cost | 13.2 | 12.6 | 1.5 | 1.7 | ||||||||||||
Expected return on plan assets | (12.3 | ) | (12.9 | ) | (0.8 | ) | (0.7 | ) | ||||||||
Prior service cost | 0.2 | 0.2 | 0.3 | 0.8 | ||||||||||||
Recognized net actuarial (gain)/loss | 13.0 | 12.8 | (0.4 | ) | — | |||||||||||
Net periodic benefit costs before regulatory adjustment | 24.6 | 24.0 | 1.3 | 2.6 | ||||||||||||
Regulatory adjustment | (1.0 | ) | (3.2 | ) | 1.5 | 1.4 | ||||||||||
Net periodic benefit costs | $ | 23.6 | $ | 20.8 | $ | 2.8 | $ | 4.0 |
Three Months Ended March 31 | 2016 | 2015 | |||||||||
Great Plains Energy | (millions) | ||||||||||
Equity compensation expense | $ | 3.7 | $ | (0.2 | ) | ||||||
Income tax benefit | 1.5 | — | |||||||||
KCP&L | |||||||||||
Equity compensation expense | $ | 2.5 | $ | (0.1 | ) | ||||||
Income tax benefit | 1.0 | — |
Performance Shares | Grant Date Fair Value* | |||||||||
Beginning balance January 1, 2016 | 609,010 | $ | 25.60 | |||||||
Granted | 225,204 | 31.41 | ||||||||
Earned | (306,953 | ) | 24.22 | |||||||
Performance adjustment | 99,553 | 24.16 | ||||||||
Ending balance March 31, 2016 | 626,814 | 28.13 |
Nonvested Restricted Stock | Grant Date Fair Value* | |||||||||
Beginning balance January 1, 2016 | 231,508 | $ | 24.78 | |||||||
Granted and issued | 95,218 | 29.42 | ||||||||
Vested | (69,219 | ) | 22.59 | |||||||
Ending balance March 31, 2016 | 257,507 | 27.09 |
March 31 | December 31 | |||||||||||
Year Due | 2016 | 2015 | ||||||||||
KCP&L | (millions) | |||||||||||
General Mortgage Bonds | ||||||||||||
2.47% EIRR bonds(a) | 2017-2035 | $ | 110.5 | $ | 110.5 | |||||||
7.15% Series 2009A (8.59% rate)(b) | 2019 | 400.0 | 400.0 | |||||||||
Senior Notes | ||||||||||||
5.85% Series (5.72% rate)(b) | 2017 | 250.0 | 250.0 | |||||||||
6.375% Series (7.49% rate)(b) | 2018 | 350.0 | 350.0 | |||||||||
3.15% Series | 2023 | 300.0 | 300.0 | |||||||||
3.65% Series | 2025 | 350.0 | 350.0 | |||||||||
6.05% Series (5.78% rate)(b) | 2035 | 250.0 | 250.0 | |||||||||
5.30% Series | 2041 | 400.0 | 400.0 | |||||||||
EIRR Bonds | ||||||||||||
0.17% Series 2007A and 2007B(c) | 2035 | 146.5 | 146.5 | |||||||||
2.875% Series 2008 | 2038 | 23.4 | 23.4 | |||||||||
Unamortized discount and debt issuance costs | (17.0 | ) | (17.3 | ) | ||||||||
Total KCP&L excluding current maturities(d) | 2,563.4 | 2,563.1 | ||||||||||
Other Great Plains Energy | ||||||||||||
GMO First Mortgage Bonds 9.44% Series | 2017-2021 | 5.7 | 6.8 | |||||||||
GMO Senior Notes | ||||||||||||
8.27% Series | 2021 | 80.9 | 80.9 | |||||||||
3.49% Series A | 2025 | 125.0 | 125.0 | |||||||||
4.06% Series B | 2033 | 75.0 | 75.0 | |||||||||
4.74% Series C | 2043 | 150.0 | 150.0 | |||||||||
GMO Medium Term Notes | ||||||||||||
7.33% Series | 2023 | 3.0 | 3.0 | |||||||||
7.17% Series | 2023 | 7.0 | 7.0 | |||||||||
Great Plains Energy Senior Notes | ||||||||||||
6.875% Series (7.33% rate)(b) | 2017 | 100.0 | 100.0 | |||||||||
4.85% Series | 2021 | 350.0 | 350.0 | |||||||||
5.292% Series | 2022 | 287.5 | 287.5 | |||||||||
Current maturities | (1.1 | ) | (1.1 | ) | ||||||||
Unamortized discount and premium, net and debt issuance costs | (2.0 | ) | (2.1 | ) | ||||||||
Total Great Plains Energy excluding current maturities(d) | $ | 3,744.4 | $ | 3,745.1 |
(a) | Weighted-average interest rates at March 31, 2016 |
(b) | Rate after amortizing gains/losses recognized in other comprehensive income (OCI) on settlements of interest rate hedging instruments |
(c) | Variable rate |
(d) | At March 31, 2016, and December 31, 2015, does not include $50.0 million and $21.9 million of secured Series 2005 Environmental Improvement Revenue Refunding (EIRR) bonds because the bonds were repurchased in September 2015 and are held by KCP&L |
2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||
(millions) | |||||||||||||||
Great Plains Energy | $ | 99.6 | $ | 45.5 | $ | 20.6 | $ | 98.9 | $ | 151.9 | |||||
KCP&L | 83.8 | 30.1 | 14.4 | 87.3 | 130.0 |
March 31 | December 31 | |||||||||
2016 | 2015 | |||||||||
(millions) | ||||||||||
Net receivable from GMO | $ | 39.7 | $ | 50.0 | ||||||
Net receivable from Great Plains Energy | 17.7 | 15.8 |
March 31 | December 31 | ||||||||||||||
2016 | 2015 | ||||||||||||||
Notional Contract Amount | Fair Value | Notional Contract Amount | Fair Value | ||||||||||||
Great Plains Energy | (millions) | ||||||||||||||
Non-hedging derivatives | |||||||||||||||
Futures contracts | $ | 30.9 | $ | (5.3 | ) | $ | 26.6 | $ | (5.7 | ) | |||||
Forward contracts | 13.2 | 2.9 | 15.6 | 3.1 | |||||||||||
Transmission congestion rights | 2.3 | (0.2 | ) | 5.6 | (0.5 | ) | |||||||||
KCP&L | |||||||||||||||
Non-hedging derivatives | |||||||||||||||
Futures contracts | $ | 1.5 | $ | (0.2 | ) | $ | 0.9 | $ | (0.1 | ) | |||||
Transmission congestion rights | 1.7 | (0.1 | ) | 4.1 | (0.4 | ) |
Great Plains Energy | |||||||||||||
Balance Sheet | Asset Derivatives | Liability Derivatives | |||||||||||
March 31, 2016 | Classification | Fair Value | Fair Value | ||||||||||
Derivatives Not Designated as Hedging Instruments | (millions) | ||||||||||||
Commodity contracts | Other | $ | 3.4 | $ | 6.0 | ||||||||
December 31, 2015 | |||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||
Commodity contracts | Other | $ | 3.3 | $ | 6.4 |
KCP&L | |||||||||||||
Balance Sheet | Asset Derivatives | Liability Derivatives | |||||||||||
March 31, 2016 | Classification | Fair Value | Fair Value | ||||||||||
Derivatives Not Designated as Hedging Instruments | (millions) | ||||||||||||
Commodity contracts | Other | $ | 0.2 | $ | 0.5 | ||||||||
December 31, 2015 | |||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||
Commodity contracts | Other | $ | 0.2 | $ | 0.7 |
Great Plains Energy | |||||||||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||||||||||||||
Description | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Financial Position | Net Amounts Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral | Net Amount | |||||||||||||||||||||||||||||
March 31, 2016 | (millions) | ||||||||||||||||||||||||||||||||||
Derivative assets | $ | 3.4 | $ | (0.5 | ) | $ | 2.9 | $ | — | $ | — | $ | 2.9 | ||||||||||||||||||||||
Derivative liabilities | 6.0 | (5.8 | ) | 0.2 | — | — | 0.2 | ||||||||||||||||||||||||||||
December 31, 2015 | |||||||||||||||||||||||||||||||||||
Derivative assets | $ | 3.3 | $ | (0.2 | ) | $ | 3.1 | $ | — | $ | — | $ | 3.1 | ||||||||||||||||||||||
Derivative liabilities | 6.4 | (5.9 | ) | 0.5 | — | — | 0.5 |
KCP&L | |||||||||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||||||||||||||
Description | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Financial Position | Net Amounts Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral | Net Amount | |||||||||||||||||||||||||||||
March 31, 2016 | (millions) | ||||||||||||||||||||||||||||||||||
Derivative assets | $ | 0.2 | $ | (0.2 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Derivative liabilities | 0.5 | (0.4 | ) | 0.1 | — | — | 0.1 | ||||||||||||||||||||||||||||
December 31, 2015 | |||||||||||||||||||||||||||||||||||
Derivative assets | $ | 0.2 | $ | (0.2 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Derivative liabilities | 0.7 | (0.3 | ) | 0.4 | — | — | 0.4 |
Great Plains Energy | ||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||
Three Months Ended March 31 | 2016 | 2015 | ||||||
Location of Loss | (millions) | |||||||
Electric revenues | $ | (0.4 | ) | $ | (5.2 | ) | ||
Fuel | (1.9 | ) | (0.5 | ) | ||||
Purchased power | (0.2 | ) | (0.1 | ) | ||||
Regulatory asset | (6.2 | ) | (6.3 | ) | ||||
Total | $ | (8.7 | ) | $ | (12.1 | ) |
KCP&L | ||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||
Three Months Ended March 31 | 2016 | 2015 | ||||||
Location of Gain (Loss) | (millions) | |||||||
Electric revenues | $ | (0.4 | ) | $ | (5.2 | ) | ||
Fuel | 0.4 | 0.2 | ||||||
Regulatory asset | (0.2 | ) | (1.4 | ) | ||||
Total | $ | (0.2 | ) | $ | (6.4 | ) |
Description | March 31 2016 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
KCP&L | (millions) | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Nuclear decommissioning trust (a) | |||||||||||||||||||||||
Equity securities | $ | 137.1 | $ | 137.1 | $ | — | $ | — | |||||||||||||||
Debt securities | |||||||||||||||||||||||
U.S. Treasury | 29.2 | 29.2 | — | — | |||||||||||||||||||
U.S. Agency | 1.8 | — | 1.8 | — | |||||||||||||||||||
State and local obligations | 3.2 | — | 3.2 | — | |||||||||||||||||||
Corporate bonds | 30.8 | — | 30.8 | — | |||||||||||||||||||
Foreign governments | 0.3 | — | 0.3 | — | |||||||||||||||||||
Cash equivalents | 2.4 | 2.4 | — | — | |||||||||||||||||||
Total nuclear decommissioning trust | 204.8 | 168.7 | 36.1 | — | |||||||||||||||||||
Self-insured health plan trust (b) | |||||||||||||||||||||||
Equity securities | 0.8 | 0.8 | — | — | |||||||||||||||||||
Debt securities | 5.1 | — | 5.1 | — | |||||||||||||||||||
Cash and cash equivalents | 8.6 | 8.6 | — | — | |||||||||||||||||||
Total self-insured health plan trust | 14.5 | 9.4 | 5.1 | — | |||||||||||||||||||
Derivative instruments (c) | 0.2 | — | — | 0.2 | |||||||||||||||||||
Total | $ | 219.5 | $ | 178.1 | $ | 41.2 | $ | 0.2 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative instruments (c) | 0.5 | 0.2 | — | 0.3 | |||||||||||||||||||
Total | $ | 0.5 | $ | 0.2 | $ | — | $ | 0.3 | |||||||||||||||
Other Great Plains Energy | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Derivative instruments (c) | $ | 3.2 | $ | 0.3 | $ | 2.6 | $ | 0.3 | |||||||||||||||
SERP rabbi trusts (d) | |||||||||||||||||||||||
Equity securities | 0.1 | 0.1 | — | — | |||||||||||||||||||
Total | $ | 3.3 | $ | 0.4 | $ | 2.6 | $ | 0.3 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative instruments (c) | 5.5 | 5.4 | — | 0.1 | |||||||||||||||||||
Total | $ | 5.5 | $ | 5.4 | $ | — | $ | 0.1 | |||||||||||||||
Great Plains Energy | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Nuclear decommissioning trust (a) | $ | 204.8 | $ | 168.7 | $ | 36.1 | $ | — | |||||||||||||||
Self-insured health plan trust (b) | 14.5 | 9.4 | 5.1 | — | |||||||||||||||||||
Derivative instruments (c) | 3.4 | 0.3 | 2.6 | 0.5 | |||||||||||||||||||
SERP rabbi trusts (d) | 0.1 | 0.1 | — | — | |||||||||||||||||||
Total | $ | 222.8 | $ | 178.5 | $ | 43.8 | $ | 0.5 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative instruments (c) | 6.0 | 5.6 | — | 0.4 | |||||||||||||||||||
Total | $ | 6.0 | $ | 5.6 | $ | — | $ | 0.4 |
Description | December 31 2015 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
KCP&L | (millions) | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Nuclear decommissioning trust (a) | |||||||||||||||||||||||
Equity securities | $ | 135.4 | $ | 135.4 | $ | — | $ | — | |||||||||||||||
Debt securities | |||||||||||||||||||||||
U.S. Treasury | 26.4 | 26.4 | — | — | |||||||||||||||||||
U.S. Agency | 1.8 | — | 1.8 | — | |||||||||||||||||||
State and local obligations | 4.0 | — | 4.0 | — | |||||||||||||||||||
Corporate bonds | 29.2 | — | 29.2 | — | |||||||||||||||||||
Foreign governments | 0.3 | — | 0.3 | — | |||||||||||||||||||
Cash equivalents | 3.6 | 3.6 | — | — | |||||||||||||||||||
Total nuclear decommissioning trust | 200.7 | 165.4 | 35.3 | — | |||||||||||||||||||
Self-insured health plan trust (b) | |||||||||||||||||||||||
Equity securities | 1.1 | 1.1 | — | — | |||||||||||||||||||
Debt securities | 7.3 | — | 7.3 | — | |||||||||||||||||||
Cash and cash equivalents | 5.2 | 5.2 | — | — | |||||||||||||||||||
Total self-insured health plan trust | 13.6 | 6.3 | 7.3 | — | |||||||||||||||||||
Derivative instruments (c) | 0.2 | — | — | 0.2 | |||||||||||||||||||
Total | $ | 214.5 | $ | 171.7 | $ | 42.6 | $ | 0.2 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative instruments (c) | 0.7 | 0.1 | — | 0.6 | |||||||||||||||||||
Total | $ | 0.7 | $ | 0.1 | $ | — | $ | 0.6 | |||||||||||||||
Other Great Plains Energy | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Derivative instruments (c) | $ | 3.1 | $ | — | $ | 2.7 | $ | 0.4 | |||||||||||||||
SERP rabbi trusts (d) | |||||||||||||||||||||||
Equity securities | 0.1 | 0.1 | — | — | |||||||||||||||||||
Total | $ | 3.2 | $ | 0.1 | $ | 2.7 | $ | 0.4 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative instruments (c) | 5.7 | 5.6 | — | 0.1 | |||||||||||||||||||
Total | $ | 5.7 | $ | 5.6 | $ | — | $ | 0.1 | |||||||||||||||
Great Plains Energy | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Nuclear decommissioning trust (a) | $ | 200.7 | $ | 165.4 | $ | 35.3 | $ | — | |||||||||||||||
Self-insured health plan trust (b) | 13.6 | 6.3 | 7.3 | — | |||||||||||||||||||
Derivative instruments (c) | 3.3 | — | 2.7 | 0.6 | |||||||||||||||||||
SERP rabbi trusts (d) | 0.1 | 0.1 | — | — | |||||||||||||||||||
Total | $ | 217.7 | $ | 171.8 | $ | 45.3 | $ | 0.6 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative instruments (c) | 6.4 | 5.7 | — | 0.7 | |||||||||||||||||||
Total | $ | 6.4 | $ | 5.7 | $ | — | $ | 0.7 |
(a) | Fair value is based on quoted market prices of the investments held by the fund and/or valuation models. |
(b) | Fair value is based on quoted market prices of the investments held by the trust. Debt securities classified as Level 2 are comprised of corporate bonds, U.S. Agency, state and local obligations, and other asset-backed securities. |
(c) | The fair value of derivative instruments is estimated using market quotes, over-the-counter forward price and volatility curves and correlations among fuel prices, net of estimated credit risk. Derivative instruments classified as Level 1 represent exchange traded derivative instruments. Derivative instruments classified as Level 2 represent non-exchange traded derivative instruments valued using pricing models for which observable market data is available to corroborate the valuation inputs. Derivative instruments classified as Level 3 represent non-exchange traded derivative instruments valued using pricing models for which observable market data is not available to corroborate the valuation inputs and TCRs valued at the most recent auction price in the SPP Integrated Marketplace. |
(d) | At March 31, 2016, and December 31, 2015, the Supplemental Executive Retirement Plan (SERP) rabbi trusts also included $16.2 million and $16.6 million, respectively, of fixed income funds valued at net asset value (NAV) per share (or its equivalent) that are not categorized in the fair value hierarchy. The fixed income fund invests primarily in intermediate and long-term debt securities, can be redeemed immediately and is not subject to any restrictions on redemptions. |
Great Plains Energy | |||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||
Derivative Instruments | |||||||
2016 | 2015 | ||||||
(millions) | |||||||
Net asset (liability) at January 1 | $ | (0.1 | ) | $ | 3.5 | ||
Total realized/unrealized gains (losses): | |||||||
included in electric revenue | (0.4 | ) | (5.2 | ) | |||
included in purchased power expense | (0.2 | ) | (0.1 | ) | |||
included in non-operating income | 1.2 | 2.1 | |||||
included in regulatory asset | — | (2.0 | ) | ||||
Purchases | (0.3 | ) | 0.2 | ||||
Settlements | (0.1 | ) | 0.3 | ||||
Net asset (liability) at March 31 | $ | 0.1 | $ | (1.2 | ) | ||
Total unrealized losses relating to assets and liabilities still on the consolidated balance sheet at March 31: | |||||||
included in electric revenue | $ | — | $ | (1.5 | ) | ||
included in non-operating income | — | (0.1 | ) | ||||
included in regulatory asset | — | (2.0 | ) |
KCP&L | |||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||
Derivative Instruments | |||||||
2016 | 2015 | ||||||
(millions) | |||||||
Net asset (liability) at January 1 | $ | (0.4 | ) | $ | 3.1 | ||
Total realized/unrealized gains (losses): | |||||||
included in electric revenue | (0.4 | ) | (5.2 | ) | |||
included in regulatory asset | — | (1.4 | ) | ||||
Purchases | (0.3 | ) | (0.4 | ) | |||
Settlements | 1.0 | 3.1 | |||||
Net liability at March 31 | $ | (0.1 | ) | $ | (0.8 | ) | |
Total unrealized losses relating to assets and liabilities still on the consolidated balance sheet at March 31: | |||||||
included in electric revenue | $ | — | $ | (1.5 | ) | ||
included in regulatory asset | — | (1.4 | ) |
Great Plains Energy | ||||||||||||||||||
Gains and Losses on Cash Flow Hedges(a) | Defined Benefit Pension Items(a) | Total(a) | ||||||||||||||||
(millions) | ||||||||||||||||||
Three Months Ended March 31, 2016 | ||||||||||||||||||
Beginning balance January 1 | $ | (10.1 | ) | $ | (1.9 | ) | $ | (12.0 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | 1.4 | 0.1 | 1.5 | |||||||||||||||
Net current period other comprehensive income | 1.4 | 0.1 | 1.5 | |||||||||||||||
Ending balance March 31 | $ | (8.7 | ) | $ | (1.8 | ) | $ | (10.5 | ) | |||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||
Beginning balance January 1 | $ | (15.8 | ) | $ | (2.9 | ) | $ | (18.7 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | 1.4 | 0.1 | 1.5 | |||||||||||||||
Net current period other comprehensive income | 1.4 | 0.1 | 1.5 | |||||||||||||||
Ending balance March 31 | $ | (14.4 | ) | $ | (2.8 | ) | $ | (17.2 | ) |
KCP&L | ||||||
Gains and Losses on Cash Flow Hedges(a) | ||||||
(millions) | ||||||
Three Months Ended March 31, 2016 | ||||||
Beginning balance January 1 | $ | (9.6 | ) | |||
Amounts reclassified from accumulated other comprehensive loss | 1.4 | |||||
Net current period other comprehensive income | 1.4 | |||||
Ending balance March 31 | $ | (8.2 | ) | |||
Three Months Ended March 31, 2015 | ||||||
Beginning balance January 1 | $ | (14.9 | ) | |||
Amounts reclassified from accumulated other comprehensive loss | 1.4 | |||||
Net current period other comprehensive income | 1.4 | |||||
Ending balance March 31 | $ | (13.5 | ) |
Great Plains Energy | ||||||||||
Details about Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Income Statement | ||||||||
Three Months Ended March 31 | 2016 | 2015 | ||||||||
(millions) | ||||||||||
Gains and (losses) on cash flow hedges (effective portion) | ||||||||||
Interest rate contracts | $ | (2.3 | ) | $ | (2.3 | ) | Interest charges | |||
(2.3 | ) | (2.3 | ) | Income before income tax expense and income from equity investments | ||||||
0.9 | 0.9 | Income tax benefit | ||||||||
$ | (1.4 | ) | $ | (1.4 | ) | Net income | ||||
Amortization of defined benefit pension items | ||||||||||
Net losses included in net periodic benefit costs | $ | (0.2 | ) | $ | (0.2 | ) | Utility operating and maintenance expenses | |||
(0.2 | ) | (0.2 | ) | Income before income tax expense and income from equity investments | ||||||
0.1 | 0.1 | Income tax benefit | ||||||||
$ | (0.1 | ) | $ | (0.1 | ) | Net income | ||||
Total reclassifications, net of tax | $ | (1.5 | ) | $ | (1.5 | ) | Net income |
KCP&L | ||||||||||
Details about Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Income Statement | ||||||||
Three Months Ended March 31 | 2016 | 2015 | ||||||||
(millions) | ||||||||||
Gains and (losses) on cash flow hedges (effective portion) | ||||||||||
Interest rate contracts | $ | (2.3 | ) | $ | (2.3 | ) | Interest charges | |||
(2.3 | ) | (2.3 | ) | Income before income tax expense | ||||||
0.9 | 0.9 | Income tax benefit | ||||||||
Total reclassifications, net of tax | $ | (1.4 | ) | $ | (1.4 | ) | Net income |
Great Plains Energy | |||||||
Three Months Ended March 31 | 2016 | 2015 | |||||
Current income taxes | (millions) | ||||||
Federal | $ | (0.1 | ) | $ | 0.5 | ||
State | 0.2 | (0.1 | ) | ||||
Total | 0.1 | 0.4 | |||||
Deferred income taxes | |||||||
Federal | 9.7 | 5.1 | |||||
State | 2.3 | 1.4 | |||||
Total | 12.0 | 6.5 | |||||
Investment tax credit amortization | (0.4 | ) | (0.4 | ) | |||
Income tax expense | $ | 11.7 | $ | 6.5 |
KCP&L | |||||||
Three Months Ended March 31 | 2016 | 2015 | |||||
Current income taxes | (millions) | ||||||
Federal | $ | 0.4 | $ | (5.7 | ) | ||
State | 0.1 | (1.1 | ) | ||||
Total | 0.5 | (6.8 | ) | ||||
Deferred income taxes | |||||||
Federal | 8.4 | 8.3 | |||||
State | 2.0 | 2.0 | |||||
Total | 10.4 | 10.3 | |||||
Investment tax credit amortization | (0.2 | ) | (0.2 | ) | |||
Income tax expense | $ | 10.7 | $ | 3.3 |
Great Plains Energy | |||||
Three Months Ended March 31 | 2016 | 2015 | |||
Federal statutory income tax rate | 35.0 | % | 35.0 | % | |
Differences between book and tax depreciation not normalized | 0.5 | (0.7 | ) | ||
Amortization of investment tax credits | (0.9 | ) | (1.4 | ) | |
Federal income tax credits | (8.0 | ) | (10.0 | ) | |
State income taxes | 4.2 | 3.3 | |||
Other | — | (0.7 | ) | ||
Effective income tax rate | 30.8 | % | 25.5 | % |
KCP&L | |||||
Three Months Ended March 31 | 2016 | 2015 | |||
Federal statutory income tax rate | 35.0 | % | 35.0 | % | |
Differences between book and tax depreciation not normalized | 0.4 | (0.5 | ) | ||
Amortization of investment tax credits | (0.7 | ) | (1.6 | ) | |
Federal income tax credits | (7.8 | ) | (15.2 | ) | |
State income taxes | 3.9 | 3.7 | |||
Other | (0.5 | ) | (1.7 | ) | |
Effective income tax rate | 30.3 | % | 19.7 | % |
Three Months Ended March 31, 2016 | Electric Utility | Other | Eliminations | Great Plains Energy | |||||||||||||||||||
(millions) | |||||||||||||||||||||||
Operating revenues | $ | 572.1 | $ | — | $ | — | $ | 572.1 | |||||||||||||||
Depreciation and amortization | (85.2 | ) | — | — | (85.2 | ) | |||||||||||||||||
Interest (charges) income | (49.1 | ) | (10.1 | ) | 8.0 | (51.2 | ) | ||||||||||||||||
Income tax (expense) benefit | (13.1 | ) | 1.4 | — | (11.7 | ) | |||||||||||||||||
Net income (loss) | 29.0 | (2.6 | ) | — | 26.4 | ||||||||||||||||||
Three Months Ended March 31, 2015 | Electric Utility | Other | Eliminations | Great Plains Energy | |||||||||||||||||||
(millions) | |||||||||||||||||||||||
Operating revenues | $ | 549.1 | $ | — | $ | — | $ | 549.1 | |||||||||||||||
Depreciation and amortization | (79.8 | ) | — | — | (79.8 | ) | |||||||||||||||||
Interest (charges) income | (45.3 | ) | (10.0 | ) | 8.0 | (47.3 | ) | ||||||||||||||||
Income tax (expense) benefit | (7.9 | ) | 1.4 | — | (6.5 | ) | |||||||||||||||||
Net income (loss) | 20.9 | (2.0 | ) | — | 18.9 |
Electric Utility | Other | Eliminations | Great Plains Energy | ||||||||||||||||||||
March 31, 2016 | (millions) | ||||||||||||||||||||||
Assets | $ | 11,090.6 | $ | 48.3 | $ | (395.8 | ) | $ | 10,743.1 | ||||||||||||||
Capital expenditures (a) | 133.6 | — | — | 133.6 | |||||||||||||||||||
December 31, 2015 | |||||||||||||||||||||||
Assets | $ | 11,045.5 | $ | (51.1 | ) | $ | (255.8 | ) | $ | 10,738.6 | |||||||||||||
Capital expenditures (a) | 677.1 | — | — | 677.1 |
• | a $37.8 million increase in gross margin driven by new retail rates, new cost recovery mechanisms and an increase in Missouri Energy Efficiency Investment Act (MEEIA) throughput disincentive; partially offset by milder weather; |
• | a $7.9 million increase in utility operating and maintenance expenses driven by an increase in Wolf Creek operating and maintenance expenses primarily due to increased refueling outage amortization and an increase in equity compensation expense; |
• | a $5.4 million increase in depreciation and amortization expense driven by capital additions; |
• | a $3.6 million increase in general taxes driven by higher property taxes and an increase in gross receipts taxes due to an increase in retail revenue; |
• | a $3.9 million decrease in non-operating income driven by a decrease in the equity component of AFUDC; |
• | a $3.9 million increase in interest charges primarily due to an increase in interest expense in 2016 related to KCP&L's issuance of $350 million of 3.65% Senior Notes in August 2015 and a decrease in the debt component of AFUDC; and |
• | a $5.2 million increase in income tax expense primarily due to an increase in pre-tax income. |
Three Months Ended March 31 | 2016 | 2015 | ||||||
(millions) | ||||||||
Operating revenues | $ | 572.1 | $ | 549.1 | ||||
Fuel | (90.6 | ) | (107.6 | ) | ||||
Purchased power | (45.0 | ) | (45.4 | ) | ||||
Transmission | (23.5 | ) | (20.9 | ) | ||||
Gross margin (a) | 413.0 | 375.2 | ||||||
Other operating expenses | (237.9 | ) | (225.3 | ) | ||||
Depreciation and amortization | (85.2 | ) | (79.8 | ) | ||||
Operating income | 89.9 | 70.1 | ||||||
Non-operating income and expenses | (1.3 | ) | 2.3 | |||||
Interest charges | (51.2 | ) | (47.3 | ) | ||||
Income tax expense | (11.7 | ) | (6.5 | ) | ||||
Income from equity investments | 0.7 | 0.3 | ||||||
Net income | 26.4 | 18.9 | ||||||
Preferred dividends | (0.4 | ) | (0.4 | ) | ||||
Earnings available for common shareholders | $ | 26.0 | $ | 18.5 |
(a) | Gross margin is a non-GAAP financial measure. See explanation of gross margin below. |
• | a $37.8 million increase in gross margin driven by: |
• | an estimated $29 million increase due to new retail rates and an estimated $17 million increase due to new cost recovery mechanisms for KCP&L in Missouri effective September 29, 2015, and in Kansas effective October 1, 2015; |
• | a $4.9 million increase in MEEIA throughput disincentive; and |
• | an estimated $17 million decrease due to milder weather driven by a 16% decrease in heating degree days. |
• | an $11.8 million increase in other operating expenses primarily due to: |
• | a $2.7 million increase in Wolf Creek operating and maintenance expenses primarily due to increased refueling outage amortization; |
• | a $3.9 million increase in equity compensation expense; and |
• | a $3.7 million increase in general taxes driven by higher property taxes and higher gross receipts taxes due to an increase in retail revenues. |
• | a $5.4 million increase in depreciation and amortization expense due to capital additions; |
• | a $3.5 million decrease in non-operating income and expenses driven by a $2.4 million decrease in the equity component of AFUDC primarily due to a lower average construction work in progress in 2016; |
• | a $3.8 million increase in interest charges primarily due to a $3.1 million increase in interest expense in 2016 related to KCP&L's issuance of $350 million of 3.65% Senior Notes in August 2015 and a $1.3 million decrease in the debt component of AFUDC; and |
• | a $5.2 million increase in income tax expense primarily driven by increased pre-tax income. |
Three Months Ended March 31 | 2016 | 2015 | ||||||
(millions) | ||||||||
Operating revenues | $ | 572.1 | $ | 549.1 | ||||
Fuel | (90.6 | ) | (107.6 | ) | ||||
Purchased power | (45.0 | ) | (45.4 | ) | ||||
Transmission | (23.5 | ) | (20.9 | ) | ||||
Gross margin (a) | 413.0 | 375.2 | ||||||
Other operating expenses | (236.3 | ) | (224.5 | ) | ||||
Depreciation and amortization | (85.2 | ) | (79.8 | ) | ||||
Operating income | 91.5 | 70.9 | ||||||
Non-operating income and expenses | (0.3 | ) | 3.2 | |||||
Interest charges | (49.1 | ) | (45.3 | ) | ||||
Income tax expense | (13.1 | ) | (7.9 | ) | ||||
Net income | $ | 29.0 | $ | 20.9 |
(a) | Gross margin is a non-GAAP financial measure. See explanation of gross margin under Great Plains Energy's Results of Operations. |
Revenues and Costs | % | MWhs Sold | % | ||||||||||||||||
Three Months Ended March 31 | 2016 | 2015 | Change (c) | 2016 | 2015 | Change | |||||||||||||
Retail revenues | (millions) | (thousands) | |||||||||||||||||
Residential | $ | 226.2 | $ | 225.2 | — | 2,076 | 2,288 | (9 | ) | ||||||||||
Commercial | 231.5 | 221.4 | 5 | 2,553 | 2,661 | (4 | ) | ||||||||||||
Industrial | 50.7 | 47.3 | 7 | 765 | 751 | 2 | |||||||||||||
Other retail revenues | 5.3 | 5.0 | 5 | 29 | 29 | (2 | ) | ||||||||||||
Provision for rate refund | (6.6 | ) | — | N/M | N/A | N/A | N/A | ||||||||||||
Energy efficiency (MEEIA)(a) | 12.8 | 6.6 | 94 | N/A | N/A | N/A | |||||||||||||
Total retail | 519.9 | 505.5 | 3 | 5,423 | 5,729 | (5 | ) | ||||||||||||
Wholesale revenues | 36.8 | 28.6 | 29 | 2,356 | 1,173 | 101 | |||||||||||||
Other revenues | 15.4 | 15.0 | 3 | N/A | N/A | N/A | |||||||||||||
Operating revenues | 572.1 | 549.1 | 4 | 7,779 | 6,902 | 13 | |||||||||||||
Fuel | (90.6 | ) | (107.6 | ) | (16 | ) | |||||||||||||
Purchased power | (45.0 | ) | (45.4 | ) | (1 | ) | |||||||||||||
Transmission | (23.5 | ) | (20.9 | ) | 13 | ||||||||||||||
Gross margin (b) | $ | 413.0 | $ | 375.2 | 10 | ||||||||||||||
(a) Consists of recovery of program costs of $8.0 million and $6.7 million for the three months ended March 31, 2016, and 2015, respectively, that have a direct offset in utility operating and maintenance expenses and recovery of throughput disincentive of $4.8 million and $(0.1) million for the three months ended March 31, 2016, and 2015, respectively. | |||||||||||||||||||
(b) Gross margin is a non-GAAP financial measure. See explanation of gross margin under Great Plains Energy's Results of Operations. | |||||||||||||||||||
(c) N/M - not meaningful |
• | an estimated $29 million increase due to new retail rates and an estimated $17 million increase due to new cost recovery mechanisms for KCP&L in Missouri effective September 29, 2015, and in Kansas effective October 1, 2015; |
• | a $4.9 million increase in MEEIA throughput disincentive; and |
• | an estimated $17 million decrease due to milder weather driven by a 16% decrease in heating degree days. |
• | a $2.7 million increase in Wolf Creek operating and maintenance expenses primarily due to increased refueling outage amortization; |
• | a $3.9 million increase in equity compensation expense; and |
• | a $3.7 million increase in general taxes driven by higher property taxes and higher gross receipts taxes due to an increase in retail revenues. |
• | Great Plains Energy's receivables, net decreased $39.6 million primarily due to seasonal decreases in customer accounts receivable. |
• | Great Plains Energy's commercial paper increased $64.3 million primarily due to borrowings for general corporate purposes. |
• | Great Plains Energy's accounts payable decreased $132.0 million primarily due to the timing of cash payments. |
• | Great Plains Energy's accrued taxes increased $35.1 million primarily due to the timing of property tax payments. |
Three Months Ended March 31 | 2016 | 2015 | |||||||
(millions) | |||||||||
Operating revenues | $ | 400.9 | $ | 370.4 | |||||
Fuel | (61.5 | ) | (74.8 | ) | |||||
Purchased power | (24.8 | ) | (21.9 | ) | |||||
Transmission | (15.4 | ) | (13.4 | ) | |||||
Gross margin (a) | 299.2 | 260.3 | |||||||
Other operating expenses | (167.5 | ) | (158.5 | ) | |||||
Depreciation and amortization | (61.1 | ) | (56.5 | ) | |||||
Operating income | 70.6 | 45.3 | |||||||
Non-operating income and expenses | — | 2.7 | |||||||
Interest charges | (35.3 | ) | (31.5 | ) | |||||
Income tax expense | (10.7 | ) | (3.3 | ) | |||||
Net income | $ | 24.6 | $ | 13.2 |
(a) | Gross margin is a non-GAAP financial measure. See explanation of gross margin under Great Plains Energy's Results of Operations. |
Revenues and Costs | % | MWhs Sold | % | ||||||||||||||||
Three Months Ended March 31 | 2016 | 2015 | Change(c) | 2016 | 2015 | Change | |||||||||||||
Retail revenues | (millions) | (thousands) | |||||||||||||||||
Residential | $ | 141.8 | $ | 138.0 | 3 | 1,209 | 1,333 | (9 | ) | ||||||||||
Commercial | 174.0 | 164.8 | 6 | 1,784 | 1,878 | (5 | ) | ||||||||||||
Industrial | 32.3 | 29.0 | 11 | 446 | 426 | 5 | |||||||||||||
Other retail revenues | 3.3 | 3.0 | 8 | 22 | 22 | (3 | ) | ||||||||||||
Provision for rate refund | 0.1 | — | N/M | N/A | N/A | N/A | |||||||||||||
Energy efficiency (MEEIA)(a) | 7.9 | 3.7 | N/M | N/A | N/A | N/A | |||||||||||||
Total retail | 359.4 | 338.5 | 6 | 3,461 | 3,659 | (5 | ) | ||||||||||||
Wholesale revenues | 34.7 | 25.5 | 36 | 2,253 | 1,062 | N/M | |||||||||||||
Other revenues | 6.8 | 6.4 | 7 | N/A | N/A | N/A | |||||||||||||
Operating revenues | 400.9 | 370.4 | 8 | 5,714 | 4,721 | 21 | |||||||||||||
Fuel | (61.5 | ) | (74.8 | ) | (18 | ) | |||||||||||||
Purchased power | (24.8 | ) | (21.9 | ) | 13 | ||||||||||||||
Transmission | (15.4 | ) | (13.4 | ) | 15 | ||||||||||||||
Gross margin (b) | $ | 299.2 | $ | 260.3 | 15 |
(a) | Consists of recovery of program costs of $4.6 million and $3.3 million for the three months ended March 31, 2016, and 2015, respectively, that have a direct offset in operating and maintenance expenses and recovery of throughput disincentive of $3.3 million and $0.4 million for the three months ended March 31, 2016, and 2015, respectively. |
(b) | Gross margin is a non-GAAP financial measure. See explanation of gross margin under Great Plains Energy's Results of Operations. |
(c) | N/M - not meaningful |
• | an estimated $29 million increase due to new retail rates and an estimated $17 million increase due to new cost recovery mechanisms for KCP&L in Missouri effective September 29, 2015, and in Kansas effective October 1, 2015; |
• | a $2.9 million increase in MEEIA throughput disincentive; and |
• | an estimated $11 million decrease due to milder weather driven by a 16% decrease in heating degree days. |
• | a $2.7 million increase in Wolf Creek operating and maintenance expenses primarily due to increased refueling outage amortization; |
• | a $2.6 million increase in equity compensation expense; and |
• | a $3.4 million increase in general taxes driven by higher property taxes and higher gross receipts taxes due to an increase in retail revenues. |
Nominee | Votes For | Votes Withheld | Broker Non-Votes |
Terry Bassham | 119,963,049 | 4,332,586 | 18,338,202 |
David L. Bodde | 122,728,684 | 1,566,951 | 18,338,202 |
Randall C. Ferguson, Jr. | 122,796,584 | 1,499,051 | 18,338,202 |
Gary D. Forsee | 123,010,916 | 1,284,719 | 18,338,202 |
Scott D. Grimes | 123,241,838 | 1,053,797 | 18,338,202 |
Thomas D. Hyde | 123,195,176 | 1,100,459 | 18,338,202 |
James A. Mitchell | 122,755,511 | 1,540,124 | 18,338,202 |
Ann D. Murtlow | 122,753,201 | 1,542,434 | 18,338,202 |
John J. Sherman | 123,242,599 | 1,053,036 | 18,338,202 |
Votes For | Votes Against | Abstentions | Broker Non-Votes |
118,927,877 | 4,602,736 | 765,022 | 18,338,202 |
Votes For | Votes Against | Abstentions | Broker Non-Votes |
116,075,129 | 7,475,567 | 744,939 | 18,338,202 |
Votes For | Votes Against | Abstentions |
141,356,406 | 911,482 | 365,949 |
• | Expands the scope of the option and SAR repricing prohibitions, including an express prohibition of exchanges of underwater stock options or SARs for other types of LTIP awards unless approved by shareholders. Eliminates Limited Stock Appreciation Rights as a form of LTIP award and adds “other stock-based awards” and “substitute awards” as new forms of LTIP awards. An “other stock-based award” is an award of Company shares or payment of cash that is valued in whole or in part by reference to, or is otherwise based on, Company shares, other property, or achievement of performance measures and that is not otherwise a listed type of an LTIP award. A “substitute award” is an award granted in substitution for stock or stock-based awards held by a current or former employee or a non-employee director of another entity acquired by the Company in a purchase transaction or merger. Extends the period pursuant to which LTIP awards may be granted from May 1, 2021 to May 3, 2026. |
• | Expands the eligible business criteria pursuant to which “performance-based compensation” under Code Section 162(m) may be based. |
• | Expands the Committee's ability to accelerate a LTIP award from only upon a participant's death, disability, retirement, change in control or termination of employment following a change in control to also include special circumstances determined by the Committee at the time of grant or anytime thereafter. |
• | Expands the Committee's ability to change the methodology used in determining “Fair Market Value”. |
• | Reduces the minimum restricted/exercise period with respect to restricted stock, RSUs and SARs from three years to one year, with certain exceptions. |
• | The foregoing description of the changes made to the Amended LTIP is not complete and is qualified in its entirety by reference to the Amended and Restated Long-Term Incentive Plan, included as Appendix A to the Company's proxy statement filed on March 24, 2016. |
Exhibit Number | Description of Document | Registrant | ||
10.1 | + | Form of 2016 three-year Performance Share Agreement | Great Plains Energy KCP&L | |
10.2 | + | Form of 2016 Restricted Stock Agreement | Great Plains Energy KCP&L | |
10.3 | + | Great Plains Energy Incorporated Long-Term Incentive Plan Awards Standards and Performance Criteria Effective as of January 1, 2016 | Great Plains Energy KCP&L | |
10.4 | + | Great Plains Energy Incorporated, Kansas City Power and Light Company and KCP&L Greater Missouri Operations Company Annual Incentive Plan amended effective as of January 1, 2016 | Great Plains Energy KCP&L | |
31.1 | Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham. | Great Plains Energy | ||
31.2 | Rule 13a-14(a)/15d-14(a) Certification of Kevin E. Bryant. | Great Plains Energy | ||
31.3 | Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham. | KCP&L | ||
31.4 | Rule 13a-14(a)/15d-14(a) Certification of Kevin E. Bryant. | KCP&L | ||
32.1 | * | Section 1350 Certifications. | Great Plains Energy | |
32.2 | * | Section 1350 Certifications. | KCP&L | |
101.INS | XBRL Instance Document. | Great Plains Energy KCP&L | ||
101.SCH | XBRL Taxonomy Extension Schema Document. | Great Plains Energy KCP&L | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | Great Plains Energy KCP&L | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | Great Plains Energy KCP&L | ||
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document. | Great Plains Energy KCP&L | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | Great Plains Energy KCP&L | ||
GREAT PLAINS ENERGY INCORPORATED | ||
Dated: | May 5, 2016 | By: /s/ Terry Bassham |
(Terry Bassham) | ||
(Chief Executive Officer) | ||
Dated: | May 5, 2016 | By: /s/ Steven P. Busser |
(Steven P. Busser) | ||
(Principal Accounting Officer) |
KANSAS CITY POWER & LIGHT COMPANY | ||
Dated: | May 5, 2016 | By: /s/ Terry Bassham |
(Terry Bassham) | ||
(Chief Executive Officer) | ||
Dated: | May 5, 2016 | By: /s/ Steven P. Busser |
(Steven P. Busser) | ||
(Principal Accounting Officer) |
1. | Performance Share Award. The Company hereby grants to the Grantee an Award of ___ Performance Shares for the three-year period ending December 31, 2018 (the “Award Period”). The Performance Shares may be earned based upon the Company’s performance as set forth in Appendix A. |
2. | Terms and Conditions. The Award of Performance Shares is subject to the following terms and conditions: |
a. | The Performance Shares shall be credited with a hypothetical cash credit equal to the per share dividend paid on the Company’s common stock as of the date any such dividend was paid during the entire Award Period, and not just the period of time after the Grant Date. At the end of the Award Period and provided the Performance Shares have not been forfeited in accordance with the terms of the Plan, the Grantee shall be paid, in a lump sum cash payment, the aggregate amount of such hypothetical dividend equivalents. |
b. | No Company common stock will be delivered under this or any other outstanding awards of performance shares until either (i) the Grantee (or the Grantee’s successor) has paid to the Company the amount that must be withheld under federal, state and local income and employment tax laws or (ii) the Grantee and the Company have made satisfactory provision for the payment of such taxes. The Company shall first withhold such taxes from the cash portion, if any, of the Award. To the extent the withheld cash portion of the Award is insufficient to satisfy fully the Company's tax withholding obligation and unless otherwise elected by the Grantee or not permitted by the Compensation and Development Committee |
c. | The Company will, to the full extent permitted by law, have the discretion based on the particular facts and circumstances to require that the Grantee reimburse the Company for all or any portion of any awards if and to the extent the awards reflected the achievement of financial results that were subsequently the subject of a restatement, or the achievement of other objectives that were subsequently found to be inaccurately measured, and a lower award would have occurred based upon the restated financial results or inaccurately measured objectives. The Company may, in its discretion, (i) seek repayment from the Grantee; (ii) reduce the amount that would otherwise be payable to the Grantee under current or future awards; (iii) withhold future equity grants or salary increases; (iv) pursue other available legal remedies; or (v) any combination of these actions. The Company may take such actions against any Grantee, whether or not such Grantee engaged in any misconduct or was otherwise at fault with respect to such restatement or inaccurate measurement. The Company will not, however, seek reimbursement with respect to any awards paid more than three years prior to such restatement or the discovery of inaccurate measurements, as applicable. |
d. | Except as otherwise specifically provided herein, the Award of Performance Shares is subject to and governed by the applicable terms and conditions of the Plan, which are incorporated herein by reference. |
3. | Amendment. This Agreement may be amended only in the manner provided by the Company evidencing both parties’ agreement to the amendment. This Agreement may also be amended, without prior notice to Grantee and without Grantee’s consent prior to any Change in Control by the Committee if the Committee in good faith determines the amendment does not materially adversely affect any of Grantee’s rights under this Agreement. |
4. | Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior agreements or understandings between the parties relating thereto. |
GREAT PLAINS ENERGY INCORPORATED | |
By: _____________________________________ | ________________________________________ |
_______________ | |
Grantee | |
[Date] |
Objectives | Weighting (Percent) | Threshold (50%) | Target (100%) | Stretch (150%) | Superior (200%) |
Total Shareholder Return (TSR) versus EEI Index1 (Interpolation applicable) | 100% | 30th Percentile | 50th Percentile | 70th Percentile | 90th Percentile |
1. | Restricted Stock Award. The Company hereby grants to the Grantee an Award of ____ shares of Restricted Stock subject to the restrictions provided herein. |
2. | Terms and Conditions. The Award of Restricted Stock is subject to the following terms and conditions: |
a. | The Restricted Stock granted hereunder will be held in book entry and may not be sold, transferred, pledged, hypothecated or otherwise transferred other than as provided in the Plan. The restrictions will terminate on _____ (the “Restriction Period”). If Grantee’s employment terminates for any reason before the end of the Restriction Period, the Restricted Stock (and any additional shares attributable to reinvested dividends) will be forfeited. |
b. | Dividends with respect to the Restricted Stock shall be paid and reinvested during the period under the Company’s Dividend Reinvestment and Direct Stock Purchase Plan. Such reinvested dividends shall be subject to the same restrictions as the Restricted Stock. |
c. | No Company common stock will be released from the restrictions under this or any other outstanding awards of restricted stock until either (i) the Grantee (or the Grantee’s successor) has paid to the Company the amount that must be withheld under federal, state and local income and employment tax laws or (ii) the Grantee and the Company have made satisfactory provision for the payment of such taxes. Unless otherwise elected by |
d. | The Company will, to the full extent permitted by law, have the discretion based on the particular facts and circumstances to require that the Grantee reimburse the Company for all or any portion of any awards if and to the extent the awards reflected the achievement of financial results that were subsequently the subject of a restatement, or the achievement of other objectives that were subsequently found to be inaccurately measured, and a lower award would have occurred based upon the restated financial results or inaccurately measured objectives. The Company may, in its discretion, (i) seek repayment from the Grantee; (ii) reduce the amount that would otherwise be payable to the Grantee under current or future awards; (iii) withhold future equity grants or salary increases; (iv) pursue other available legal remedies; or (v) any combination of these actions. The Company may take such actions against the Grantee, whether or not the Grantee engaged in any misconduct or was otherwise at fault with respect to such restatement or inaccurate measurement. The Company will, however, not seek reimbursement with respect to any awards paid more than three years prior to such restatement or the discovery of inaccurate measurements, as applicable. |
e. | Except as otherwise specifically provided herein, the Award of Restricted Stock is subject to and governed by the applicable terms and conditions of the Plan, which are incorporated herein by reference. |
3. | Amendment. This Agreement may be amended only in the manner provided by the Company evidencing both parties’ agreement to the amendment. This Agreement may also be amended, without prior notice to Grantee and without Grantee’s consent prior to any Change in Control by the Committee if the Committee in good faith determines the amendment does not materially adversely affect any of Grantee’s rights under this Agreement. |
4. | Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior agreements or understandings between the parties relating thereto. |
GREAT PLAINS ENERGY INCORPORATED | |
By: ________________________________ | By: ________________________________ |
_________________ Grantee | |
Dated: ______ |
Objective | Weighting (Percent) | Threshold (50%) | Target (100%) | Stretch (150%) | Superior (200%) |
Total Shareholder Return (TSR) versus EEI Index 1 (Interpolation applicable) | 100% | 30th Percentile | 50th Percentile | 70th Percentile | 90th Percentile |
1. | I have reviewed this quarterly report on Form 10-Q of Great Plains Energy Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 5, 2016 | /s/ Terry Bassham |
Terry Bassham Chairman, President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Great Plains Energy Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 5, 2016 | /s/Kevin E. Bryant |
Kevin E. Bryant Senior Vice President - Finance and Strategy and Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Kansas City Power & Light Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 5, 2016 | /s/ Terry Bassham | ||
Terry Bassham Chairman, President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Kansas City Power & Light Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 5, 2016 | /s/ Kevin E. Bryant |
Kevin E. Bryant Senior Vice President - Finance and Strategy and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Terry Bassham | |
Name: Title: | Terry Bassham Chairman, President and Chief Executive Officer |
Date: | May 5, 2016 |
/s/Kevin E. Bryant | |
Name: Title: | Kevin E. Bryant Senior Vice President - Finance and Strategy and Chief Financial Officer |
Date: | May 5, 2016 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Terry Bassham | |
Name: Title: | Terry Bassham Chairman, President and Chief Executive Officer |
Date: | May 5, 2016 |
/s/ Kevin E. Bryant | |
Name: Title: | Kevin E. Bryant Senior Vice President - Finance and Strategy and Chief Financial Officer |
Date: | May 5, 2016 |
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