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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract]  
Fair value of assets and liabilities
The following tables include Great Plains Energy's and KCP&L's balances of financial assets and liabilities measured at fair value on a recurring basis. The fair values below are gross values before netting arrangements and netting of cash collateral.
 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.
Unobservable inputs reconciliation
The following tables reconcile the beginning and ending balances for all Level 3 assets and liabilities measured at fair value on a recurring basis.
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
)