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  • 10-Q (Nov 1, 2017)
  • 10-Q (Aug 9, 2017)
  • 10-Q (May 4, 2017)
  • 10-Q (Nov 3, 2016)
  • 10-Q (Aug 4, 2016)
  • 10-Q (May 5, 2016)

 
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Great Plains Energy 10-Q 2017
Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2017
or
[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______to_______
 
 
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, a smaller reporting company or an emerging company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth 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
_
 
 
 
 
 
 
Emerging growth company
_
 
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. _
Kansas City Power & Light Company
 
Large accelerated filer
_
Accelerated filer
_
 
 
 
 
 
 
Non-accelerated filer
X
Smaller reporting company
_
 
 
 
 
 
 
Emerging growth company
_
 
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. _
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 July 31, 2017, Great Plains Energy Incorporated had 215,656,853 shares of common stock outstanding.  On July 31, 2017, 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.
This combined Quarterly Report on Form 10-Q is being filed by Great Plains Energy Incorporated (Great Plains Energy) and Kansas City Power & Light Company (KCP&L).  KCP&L is a wholly owned subsidiary of Great Plains Energy and represents a significant portion of its assets, liabilities, revenues, expenses and operations.  Thus, all information contained in this report relates to, and (where required) is filed by, Great Plains Energy.  Information that is specifically identified in this report as relating solely to Great Plains Energy, such as its financial statements and all information relating to Great Plains Energy's other operations, businesses and subsidiaries, including KCP&L Greater Missouri Operations Company (GMO), does not relate to, and is not filed by, KCP&L.  KCP&L makes no representation as to that information.  Neither Great Plains Energy nor its other subsidiaries have any obligation in respect of KCP&L's debt securities and holders of such securities should not consider Great Plains Energy's or its other subsidiaries' financial resources or results of operations in making a decision with respect to KCP&L's debt securities.  Similarly, KCP&L has no obligation in respect of securities of Great Plains Energy or its other subsidiaries.
This report should be read in its entirety.  No one section of the report deals with all aspects of the subject matter.  It should be read in conjunction with the consolidated financial statements and related notes and with the management's discussion and analysis included in the 2016 Form 10-K for each of Great Plains Energy and KCP&L.




TABLE OF CONTENTS
 
 
 
Page Number
 
 
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 1:
 
Note 2:
 
Note 3:
 
Note 4:
 
Note 5:
 
Note 6:
 
Note 7:
 
Note 8:
 
Note 9:
 
Note 10:
 
Note 11:
 
Note 12:
 
Note 13:
 
Note 14:
 
Note 15:
 
Note 16:
 
Note 17:
 
Note 18:
 
Note 19:
Item 2.
Item 3.
Item 4.
 
 
 
 
 
 
 
 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 
 
 
 
 
 


3


CAUTIONARY STATEMENTS REGARDING CERTAIN FORWARD-LOOKING INFORMATION
Statements made in this report that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to the anticipated merger transaction of Great Plains Energy and Westar Energy, Inc. (Westar), including those that relate to the expected financial and operational benefits of the merger to the companies and their shareholders (including cost savings, operational efficiencies and the impact of the anticipated merger on earnings per share), the expected timing of closing, the outcome of regulatory proceedings, cost estimates of capital projects, redemption of Great Plains Energy convertible preferred stock, dividend growth, share repurchases, balance sheet and credit ratings, rebates to customers, employee issues and other matters affecting future operations. In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Great Plains Energy and KCP&L are providing a number of important factors that could cause actual results to differ materially from the provided forward-looking information. These important factors include: future economic conditions in regional, national and international markets and their effects on sales, prices and costs; prices and availability of electricity in regional and national wholesale markets; market perception of the energy industry, Great Plains Energy and KCP&L; changes in business strategy, operations or development plans; the outcome of contract negotiations for goods and services; effects of current or proposed state and federal legislative and regulatory actions or developments, including, but not limited to, deregulation, re-regulation and restructuring of the electric utility industry; decisions of regulators regarding rates that the Companies can charge for electricity; adverse changes in applicable laws, regulations, rules, principles or practices governing tax, accounting and environmental matters including, but not limited to, air and water quality; financial market conditions and performance including, but not limited to, changes in interest rates and credit spreads and in availability and cost of capital and the effects on derivatives and hedges, nuclear decommissioning trust and pension plan assets and costs; impairments of long-lived assets or goodwill; credit ratings; inflation rates; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of terrorist acts, including, but not limited to, cyber terrorism; ability to carry out marketing and sales plans; weather conditions including, but not limited to, weather-related damage and their effects on sales, prices and costs; cost, availability, quality and deliverability of fuel; the inherent uncertainties in estimating the effects of weather, economic conditions and other factors on customer consumption and financial results; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; delays in the anticipated in-service dates and cost increases of generation, transmission, distribution or other projects; Great Plains Energy's and Westar's ability to successfully manage and integrate their respective transmission joint ventures; the inherent risks associated with the ownership and operation of a nuclear facility including, but not limited to, environmental, health, safety, regulatory and financial risks; workforce risks, including, but not limited to, increased costs of retirement, health care and other benefits; the ability of Great Plains Energy and Westar to obtain the regulatory and shareholder approvals necessary to complete the anticipated merger or the imposition of adverse conditions or costs in connection with obtaining regulatory approvals; the risk that a condition to the closing of the anticipated merger may not be satisfied or that the anticipated merger may fail to close; the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted relating to the anticipated merger; the costs incurred to consummate the anticipated merger; the possibility that the expected value creation from the anticipated merger will not be realized, or will not be realized within the expected time period; difficulties related to the integration of the two companies; the credit ratings of the combined company following the anticipated merger; disruption from the anticipated merger making it more difficult to maintain relationships with customers, employees, regulators or suppliers; the diversion of management time and attention on the anticipated merger; and other risks and uncertainties.
This list of factors is not all-inclusive because it is not possible to predict all factors. Part II Item 1A Risk Factors included in this report, together with the risk factors included in the 2016 Form 10-K for each of Great Plains Energy and KCP&L under Part I Item 1A, should be carefully read for further understanding of potential risks for each of Great Plains Energy and KCP&L. Other sections of this report and other periodic reports filed by each of Great Plains Energy and KCP&L with the Securities and Exchange Commission (SEC) should also be read for more information regarding risk factors. Each forward-looking statement speaks only as of the date of the particular statement. Great Plains Energy and KCP&L undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

4


GLOSSARY OF TERMS 
The following is a glossary of frequently used abbreviations or acronyms that are found throughout this report.
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
Amended Merger Agreement
 
Amended and Restated Agreement and Plan of Merger dated as of July 9, 2017 by and among Great Plains Energy, Westar, Monarch Energy Holding, Inc. and King Energy, Inc.
ARO
 
Asset Retirement Obligation
ASU
 
Accounting Standards Update
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
DOJ
 
Department of Justice
EIRR
 
Environmental Improvement Revenue Refunding
EPA
 
Environmental Protection Agency
EPS
 
Earnings (loss) per common share
ERISA
 
Employee Retirement Income Security Act of 1974, as amended
FASB
 
Financial Accounting Standards Board
FERC
 
The Federal Energy Regulatory Commission
FCC
 
The Federal Communications Commission
FTC
 
Federal Trade 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
Great Plains Energy Board
 
Great Plains Energy Board of Directors
HSR
 
Hart-Scott-Rodino
Holdco
 
Monarch Energy Holding, Inc., a Missouri corporation
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
MD&A
 
Management's Discussion and Analysis of Financial Condition and Results of Operations
MDNR
 
Missouri Department of Natural Resources
MECG
 
Midwest Energy Consumers Group
MEEIA
 
Missouri Energy Efficiency Investment Act

5


Abbreviation or Acronym
 
Definition
 
 
 
Merger Sub
 
King Energy, Inc., a Kansas corporation and wholly owned subsidiary of Holdco
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
NERC
 
North American Electric Reliability Corporation
NPNS
 
Normal purchases and normal sales
NRC
 
Nuclear Regulatory Commission
OCI
 
Other Comprehensive Income
OMERS
 
OCM Credit Portfolio LP
OPC
 
Office of the Public Counsel
Original Merger Agreement
 
Agreement and Plan of Merger dated as of May 29, 2016, by and among Great Plains Energy, Westar and GP Star, Inc.
RCRA
 
Resource Conservation and Recovery Act
RESRAM
 
Renewable Energy Standard Rate Adjustment Mechanism
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
Westar
 
Westar Energy, Inc.
Westar Board
 
Westar Board of Directors
Wolf Creek
 
Wolf Creek Generating Station


6


PART I
ITEM 1. FINANCIAL STATEMENTS

GREAT PLAINS ENERGY INCORPORATED
Consolidated Balance Sheets
(Unaudited)
 
 
 
 
 
June 30
 
December 31
 
2017
 
2016
ASSETS
(millions, except share amounts)
Current Assets
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
6,546.3

 
 
 
$
1,293.1

 
Time deposit
 

 
 
 
1,000.0

 
Receivables, net
 
176.7

 
 
 
166.0

 
Accounts receivable pledged as collateral
 
172.2

 
 
 
172.4

 
Fuel inventories, at average cost
 
89.3

 
 
 
108.8

 
Materials and supplies, at average cost
 
168.5

 
 
 
162.2

 
Deferred refueling outage costs
 
14.2

 
 
 
22.3

 
Interest rate derivative instruments
 
49.2

 
 
 
79.3

 
Prepaid expenses and other assets
 
33.3

 
 
 
55.4

 
Total
 
7,249.7

 
 
 
3,059.5

 
Utility Plant, at Original Cost
 
 

 
 
 
 

 
Electric
 
13,486.5

 
 
 
13,597.7

 
Less - accumulated depreciation
 
5,068.4

 
 
 
5,106.9

 
Net utility plant in service
 
8,418.1

 
 
 
8,490.8

 
Construction work in progress
 
375.6

 
 
 
403.9

 
Plant to be retired, net
 
149.2

 
 
 

 
Nuclear fuel, net of amortization of $188.0 and $172.1
 
53.9

 
 
 
62.0

 
Total
 
8,996.8

 
 
 
8,956.7

 
Investments and Other Assets
 
 

 
 
 
 

 
Nuclear decommissioning trust fund
 
238.4

 
 
 
222.9

 
Regulatory assets
 
1,022.6

 
 
 
1,048.0

 
Goodwill
 
169.0

 
 
 
169.0

 
Other
 
129.9

 
 
 
113.9

 
Total
 
1,559.9

 
 
 
1,553.8

 
Total
 
$
17,806.4

 
 
 
$
13,570.0

 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

7


GREAT PLAINS ENERGY INCORPORATED
Consolidated Balance Sheets
(Unaudited)
 
 
June 30
 
December 31
 
2017
 
2016
LIABILITIES AND CAPITALIZATION
(millions, except share amounts)
Current Liabilities
 
 
 
 
 
 
 
Collateralized note payable
 
$
172.2

 
 
 
$
172.4

 
Commercial paper
 
424.6

 
 
 
334.8

 
Current maturities of long-term debt
 
482.1

 
 
 
382.1

 
Accounts payable
 
181.3

 
 
 
323.7

 
Accrued taxes
 
84.0

 
 
 
33.3

 
Accrued interest
 
92.7

 
 
 
50.8

 
Accrued compensation and benefits
 
49.0

 
 
 
52.1

 
Pension and post-retirement liability
 
3.0

 
 
 
3.0

 
Series B Preferred Stock dividend make-whole provisions
 
57.1

 
 
 

 
Other
 
67.5

 
 
 
32.6

 
Total
 
1,613.5

 
 
 
1,384.8

 
Deferred Credits and Other Liabilities
 
 

 
 
 
 

 
Deferred income taxes
 
1,314.4

 
 
 
1,329.7

 
Deferred tax credits
 
125.5

 
 
 
126.2

 
Asset retirement obligations
 
278.1

 
 
 
316.0

 
Pension and post-retirement liability
 
496.0

 
 
 
488.3

 
Regulatory liabilities
 
307.4

 
 
 
309.9

 
Other
 
88.9

 
 
 
87.9

 
Total
 
2,610.3

 
 
 
2,658.0

 
Capitalization
 
 

 
 
 
 

 
Great Plains Energy shareholders' equity
 
 

 
 
 
 

 
Common stock - 600,000,000 shares authorized without par value
215,782,936 and 215,479,105 shares issued, stated value
 
4,228.6

 
 
 
4,217.0

 
Preference stock - 11,000,000 shares authorized without par value
     7.00% Series B Mandatory Convertible Preferred Stock
       $1,000 per share liquidation preference, 862,500 shares issued and outstanding
 
836.2

 
 
 
836.2

 
Retained earnings
 
953.6

 
 
 
1,119.2

 
Treasury stock - 135,166 and 128,087 shares, at cost
 
(3.9
)
 
 
 
(3.8
)
 
Accumulated other comprehensive loss
 
(3.6
)
 
 
 
(6.6
)
 
Total shareholders' equity
 
6,010.9

 
 
 
6,162.0

 
Long-term debt (Note 10)
 
7,571.7

 
 
 
3,365.2

 
Total
 
13,582.6

 
 
 
9,527.2

 
Commitments and Contingencies (Note 12)
 


 
 
 


 
Total
 
$
17,806.4

 
 
 
$
13,570.0

 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

8


GREAT PLAINS ENERGY INCORPORATED
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
 
 
Three Months Ended
 June 30
 
Year to Date
June 30
 
 
2017
 
2016
 
2017
 
2016
Operating Revenues
 
(millions, except per share amounts)
Electric revenues
 
$
682.6

 
$
670.8

 
$
1,253.3

 
$
1,242.9

Operating Expenses
 
 
 
 
 
 

 
 

Fuel and purchased power
 
157.5

 
142.5

 
284.0

 
278.1

Transmission
 
28.2

 
17.2

 
51.3

 
40.7

Utility operating and maintenance expenses
 
181.7

 
180.4

 
367.1

 
359.8

Costs to achieve the anticipated merger with Westar Energy, Inc.
 
(12.6
)
 
5.0

 
26.8

 
5.0

Depreciation and amortization
 
94.7

 
85.3

 
185.0

 
170.5

General taxes
 
55.5

 
54.5

 
112.6

 
110.8

Other
 
1.1

 
3.6

 
2.6

 
5.8

Total
 
506.1

 
488.5

 
1,029.4

 
970.7

Operating income
 
176.5

 
182.3

 
223.9

 
272.2

Other Income (Expense)
 
 
 
 
 
 
 
 
Non-operating income
 
12.9

 
3.3

 
19.5

 
5.4

Non-operating expenses
 
(3.9
)
 
(4.3
)
 
(7.6
)
 
(7.7
)
Loss on Series B Preferred Stock dividend make-whole provisions
 
(57.1
)
 

 
(57.1
)
 

Total
 
(48.1
)
 
(1.0
)
 
(45.2
)
 
(2.3
)
Interest charges
 
(145.3
)
 
(132.9
)
 
(211.9
)
 
(184.1
)
Income (loss) before income tax (expense) benefit and income from equity investments
 
(16.9
)
 
48.4

 
(33.2
)
 
85.8

Income tax (expense) benefit
 
9.3

 
(17.1
)
 
15.1

 
(28.8
)
Income from equity investments, net of income taxes
 
0.6

 
0.7

 
1.5

 
1.4

Net income (loss)
 
(7.0
)
 
32.0

 
(16.6
)
 
58.4

Preferred stock dividend requirements
 
15.1

 
0.4

 
30.2

 
0.8

Earnings (loss) available for common shareholders
 
$
(22.1
)
 
$
31.6

 
$
(46.8
)
 
$
57.6

 
 
 
 
 
 
 
 
 
Average number of basic common shares outstanding
 
215.5

 
154.6

 
215.4

 
154.5

Average number of diluted common shares outstanding
 
215.5

 
154.8

 
215.4

 
154.9

 
 
 
 
 
 
 
 
 
Basic and diluted earnings (loss) per common share
 
$
(0.10
)
 
$
0.20

 
$
(0.22
)
 
$
0.37

 
 
 
 
 
 
 
 
 
Cash dividends per common share
 
$
0.275

 
$
0.2625

 
$
0.55

 
$
0.525

Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(7.0
)
 
$
32.0

 
$
(16.6
)
 
$
58.4

Other comprehensive income
 
 
 
 
 
 

 
 

Derivative hedging activity
 
 
 
 
 
 

 
 

Reclassification to expenses, net of tax
 
1.4

 
1.4

 
2.8

 
2.8

Derivative hedging activity, net of tax
 
1.4

 
1.4

 
2.8

 
2.8

Defined benefit pension plans
 
 
 
 
 
 
 
 
Amortization of net losses included in net periodic benefit costs, net of tax
 
0.1

 
0.1

 
0.2

 
0.2

Change in unrecognized pension expense, net of tax
 
0.1

 
0.1

 
0.2

 
0.2

Total other comprehensive income
 
1.5

 
1.5

 
3.0

 
3.0

Comprehensive income (loss)
 
$
(5.5
)
 
$
33.5

 
$
(13.6
)
 
$
61.4

The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.


9



GREAT PLAINS ENERGY INCORPORATED
Consolidated Statements of Cash Flows
(Unaudited)
 
 
 
 
 
 
Year to Date June 30
2017
 
 
2016
 
Cash Flows from Operating Activities
(millions)
Net income (loss)
$
(16.6
)
 
 
$
58.4

 
Adjustments to reconcile income (loss) to net cash from operating activities:
 

 
 
 

 
Depreciation and amortization
185.0

 
 
170.5

 
Amortization of:
 

 
 
 

 
Nuclear fuel
15.9

 
 
16.7

 
Other
45.4

 
 
27.9

 
Deferred income taxes, net
(14.4
)
 
 
26.8

 
Investment tax credit amortization
(0.7
)
 
 
(0.7
)
 
Income from equity investments, net of income taxes
(1.5
)
 
 
(1.4
)
 
Fair value impacts of interest rate swaps and dividend make-whole provisions
87.2

 
 
77.0

 
Other operating activities (Note 3)
(18.7
)
 
 
(78.6
)
 
Net cash from operating activities
281.6

 
 
296.6

 
Cash Flows from Investing Activities
 

 
 
 

 
Utility capital expenditures
(247.0
)
 
 
(302.4
)
 
Allowance for borrowed funds used during construction
(3.0
)
 
 
(3.2
)
 
Purchases of nuclear decommissioning trust investments
(13.6
)
 
 
(16.0
)
 
Proceeds from nuclear decommissioning trust investments
12.0

 
 
14.4

 
Proceeds from time deposit
1,000.0

 
 

 
Other investing activities
(19.9
)
 
 
(34.8
)
 
Net cash from investing activities
728.5

 
 
(342.0
)
 
Cash Flows from Financing Activities
 

 
 
 

 
Issuance of common stock
2.7

 
 
1.5

 
Issuance of long-term debt
4,591.1

 
 

 
Issuance fees
(36.4
)
 
 
(51.4
)
 
Repayment of long-term debt
(251.1
)
 
 
(1.1
)
 
Net change in short-term borrowings
89.8

 
 
180.4

 
Net change in collateralized short-term borrowings
(0.2
)
 
 
(1.3
)
 
Dividends paid
(148.7
)
 
 
(81.9
)
 
Purchase of treasury stock
(4.1
)
 
 
(4.9
)
 
Net cash from financing activities
4,243.1

 
 
41.3

 
Net Change in Cash and Cash Equivalents
5,253.2

 
 
(4.1
)
 
Cash and Cash Equivalents at Beginning of Year
1,293.1

 
 
11.3

 
Cash and Cash Equivalents at End of Period
$
6,546.3

 
 
$
7.2

 
The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

10


GREAT PLAINS ENERGY INCORPORATED
Consolidated Statements of Shareholders' Equity
(Unaudited)
 
 
 
 
Year to Date June 30
2017
 
2016
 
Shares
 
Amount
 
Shares
 
Amount
Common Stock
(millions, except share amounts)
Beginning balance
215,479,105

 
$
4,217.0

 
154,504,900

 
$
2,646.7

Issuance of common stock
303,831

 
11.1

 
377,188

 
11.3

Equity compensation expense, net of forfeitures
 
 
2.5

 
 

 
2.0

Unearned Compensation
 

 
 

 
 

 
 

Issuance of restricted common stock
 

 
(2.3
)
 
 

 
(2.8
)
Forfeiture of restricted common stock
 
 
0.6

 
 
 

Compensation expense recognized
 

 
1.2

 
 

 
1.3

Other
 

 
(1.5
)
 
 

 
0.3

Ending balance
215,782,936

 
4,228.6

 
154,882,088

 
2,658.8

Cumulative Preferred Stock

 

 
390,000

 
39.0

Preference Stock
862,500

 
836.2

 

 

Retained Earnings
 

 
 

 
 

 
 

Beginning balance
 

 
1,119.2

 
 

 
1,024.4

Net income (loss)
 

 
(16.6
)
 
 

 
58.4

Dividends:
 

 
 

 
 

 
 

Common stock ($0.55 and $0.525 per share)
 
(118.5
)
 
 

 
(81.1
)
Preferred stock - at required rates
 

 
(30.2
)
 
 

 
(0.8
)
Performance shares
 

 
(0.3
)
 
 

 
(0.5
)
Ending balance
 

 
953.6

 
 

 
1,000.4

Treasury Stock
 

 
 

 
 

 
 

Beginning balance
(128,087
)
 
(3.8
)
 
(101,229
)
 
(2.6
)
Treasury shares acquired
(142,023
)
 
(4.1
)
 
(135,067
)
 
(4.1
)
Treasury shares reissued
134,944

 
4.0

 
108,257

 
2.9

Ending balance
(135,166
)
 
(3.9
)
 
(128,039
)
 
(3.8
)
Accumulated Other Comprehensive Income (Loss)
 
 

 
 

 
 

Beginning balance
 

 
(6.6
)
 
 

 
(12.0
)
Derivative hedging activity, net of tax
 

 
2.8

 
 

 
2.8

Change in unrecognized pension expense, net of tax
 
0.2

 
 

 
0.2

Ending balance
 

 
(3.6
)
 
 

 
(9.0
)
Total Great Plains Energy Shareholders' Equity
 
$
6,010.9

 
 

 
$
3,685.4

The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

11


KANSAS CITY POWER & LIGHT COMPANY
Consolidated Balance Sheets
(Unaudited)
 
 
June 30
December 31
 
2017
2016
ASSETS
(millions, except share amounts)
Current Assets
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
6.0

 
 
 
$
4.5

 
Receivables, net
 
137.4

 
 
 
139.1

 
Related party receivables
 
70.4

 
 
 
67.2

 
Accounts receivable pledged as collateral
 
110.0

 
 
 
110.0

 
Fuel inventories, at average cost
 
63.5

 
 
 
72.9

 
Materials and supplies, at average cost
 
123.4

 
 
 
118.9

 
Deferred refueling outage costs
 
14.2

 
 
 
22.3

 
Refundable income taxes
 

 
 
 
12.7

 
Prepaid expenses and other assets
 
29.7

 
 
 
27.9

 
Total
 
554.6

 
 
 
575.5

 
Utility Plant, at Original Cost
 
 

 
 
 
 

 
Electric
 
10,084.6

 
 
 
9,925.1

 
Less - accumulated depreciation
 
3,958.9

 
 
 
3,858.4

 
Net utility plant in service
 
6,125.7

 
 
 
6,066.7

 
Construction work in progress
 
277.8

 
 
 
300.4

 
Nuclear fuel, net of amortization of $188.0 and $172.1
 
53.9

 
 
 
62.0

 
Total
 
6,457.4

 
 
 
6,429.1

 
Investments and Other Assets
 
 

 
 
 
 

 
Nuclear decommissioning trust fund
 
238.4

 
 
 
222.9

 
Regulatory assets
 
782.0

 
 
 
801.8

 
Other
 
37.2

 
 
 
29.1

 
Total
 
1,057.6

 
 
 
1,053.8

 
Total
 
$
8,069.6

 
 
 
$
8,058.4

 
The disclosures regarding KCP&L included in the accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

12


KANSAS CITY POWER & LIGHT COMPANY
Consolidated Balance Sheets
(Unaudited)

 
 
 
 
 
June 30
 
December 31
 
2017
 
2016
LIABILITIES AND CAPITALIZATION
(millions, except share amounts)
Current Liabilities
 
 
 
 
 
 
 
Collateralized note payable
 
$
110.0

 
 
 
$
110.0

 
Commercial paper
 
171.8

 
 
 
132.9

 
Current maturities of long-term debt
 
381.0

 
 
 
281.0

 
Accounts payable
 
140.4

 
 
 
231.6

 
Accrued taxes
 
71.2

 
 
 
27.0

 
Accrued interest
 
30.8

 
 
 
32.4

 
Accrued compensation and benefits
 
49.0

 
 
 
52.1

 
Pension and post-retirement liability
 
1.6

 
 
 
1.6

 
Other
 
44.4

 
 
 
11.4

 
Total
 
1,000.2

 
 
 
880.0

 
Deferred Credits and Other Liabilities
 
 

 
 
 
 

 
Deferred income taxes
 
1,249.0

 
 
 
1,228.3

 
Deferred tax credits
 
122.3

 
 
 
122.8

 
Asset retirement obligations
 
248.9

 
 
 
278.0

 
Pension and post-retirement liability
 
473.7

 
 
 
465.8

 
Regulatory liabilities
 
197.3

 
 
 
187.4

 
Other
 
71.4

 
 
 
70.6

 
Total
 
2,362.6

 
 
 
2,352.9

 
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
 
913.7

 
 
 
982.6

 
Accumulated other comprehensive loss
 
(1.6
)
 
 
 
(4.2
)
 
Total
 
2,475.2

 
 
 
2,541.5

 
Long-term debt (Note 10)
 
2,231.6

 
 
 
2,284.0

 
Total
 
4,706.8

 
 
 
4,825.5

 
Commitments and Contingencies (Note 12)
 


 
 
 


 
Total
 
$
8,069.6

 
 
 
$
8,058.4

 
The disclosures regarding KCP&L included in the accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

13


KANSAS CITY POWER & LIGHT COMPANY
Consolidated Statements of Comprehensive Income
(Unaudited)
 
 
 
 
 
 
 
Three Months Ended
 June 30
 
Year to Date
June 30
 
 
2017
 
2016
 
2017
 
2016
Operating Revenues
 
(millions)
Electric revenues
 
$
482.7

 
$
475.6

 
$
878.6

 
$
876.5

Operating Expenses
 
 
 
 
 
 

 
 

Fuel and purchased power
 
111.4

 
93.9

 
190.3

 
180.2

Transmission
 
18.8

 
14.9

 
33.1

 
30.3

Operating and maintenance expenses
 
122.2

 
124.0

 
248.6

 
247.7

Costs to achieve the anticipated merger with Westar Energy, Inc.
 
3.9

 

 
11.8

 

Depreciation and amortization
 
68.3

 
61.1

 
133.6

 
122.2

General taxes
 
44.2

 
42.3

 
88.8

 
85.9

Other
 
0.1

 
1.5

 
0.4

 
1.7

Total
 
368.9

 
337.7

 
706.6

 
668.0

Operating income
 
113.8

 
137.9

 
172.0

 
208.5

Other Income (Expense)
 
 
 
 
 
 
 
 
Non-operating income
 
1.7

 
2.6

 
4.2

 
3.9

Non-operating expenses
 
(2.3
)
 
(2.4
)
 
(4.4
)
 
(3.7
)
Total
 
(0.6
)
 
0.2

 
(0.2
)
 
0.2

Interest charges
 
(35.6
)