QUOTE AND NEWS
DailyFinance  Mar 19  Comment 
SUGAR LAND, TX -- (Marketwired) -- 03/19/14 -- Written by John Egan for Industrial Info Resources (Sugar Land, Texas) -- Kansas City Power & Light Company (KCP&L) (Kansas City, Missouri), a unit of Great Plains Energy Incorporated (NYSE:GXP)...
StreetInsider.com  Feb 26  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Great+Plains%2C+Inc.+%28GXP%29+Tops+Q4+EPS+by+2c%2C+Offers+Guidance/9221318.html for the full story.
StreetInsider.com  Feb 11  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Dividends/Great+Plains+Energy+%28GXP%29+Declares+%240.23+Quarterly+Dividend%3B+3.7%25+Yield/9150719.html for the full story.
Cloud Computing  Jan 8  Comment 
Ameren Missouri will soon replace a manual crew callout process with the Software-as-a-Service ARCOS Suite, which automatically calls and assembles crews to restore power. Electric utilities such as Kansas City Power & Light have installed the...
StreetInsider.com  Nov 19  Comment 
UPGRADES BofA/Merrill Lynch raises Great Plains Energy (NYSE: GXP) from Underperform to Buy. Citi raises Qiagen NV (Nasdaq: QGEN) from Sell to Neutral. Ascendiant Capital moves Hydrogenics (Nasdaq: HYGS) from Neutral to Strong Buy. Rockville...
Benzinga  Nov 19  Comment 
Benzinga  Nov 19  Comment 
In a report published Tuesday, Bank of America analyst Brian Chin upgraded the rating on Great Plains Energy (NYSE: GXP) from Underperform to Buy, and raised the price target from $23.00 to $27.00. In the report, Bank of America noted, “We...
StreetInsider.com  Nov 19  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Upgrades/BofAMerrill+Lynch+Upgrades+Great+Plains+Energy+%28GXP%29+to+Buy/8902448.html for the full story.
Benzinga  Nov 18  Comment 
In a report published Friday, Goldman Sachs analyst Michael Lapides maintained a Neutral rating on Great Plains Energy (NYSE: GXP) and raised the price target from $23.00 to $24.00. In the report, Goldman Sachs says "We update our 2013/14/15/16...
StreetInsider.com  Nov 7  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Great+Plains%2C+Inc.+%28GXP%29+Reports+In-Line+Q3+EPS%3B+Raises+Midpoint+of+FY13+EPS+Outlook/8862076.html for the full story.
StreetInsider.com  Nov 5  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Dividends/Great+Plains+Energy+%28GXP%29+Raises+Quarterly+Dividend+5.7%25+to+%240.23%3B+3.9%25+Yield/8847164.html for the full story.




 
TOP CONTRIBUTORS

Great Plains Energy (NYSE:GXP) is a regulated electric and gas utility that supplies energy to 821,000 retail customers in Missouri and Kansas.[1] It is the parent company of Kansas City Power and Light (KCP&L), which accounts for 100% of Great Plains' revenue. The company has a generating capacity of 6000 megawatts.[2] 82% of Great Plains’ generating capacity is based on coal and natural gas, making the company vulnerable to swings in fossil fuel prices and carbon emissions legislation.[3] 17% of the company's energy comes from nuclear power.[4]

Company Overview

Business Segment

  • Kansas City Power & Light Company: KCP&L is a regulated electric utility that generates and distributes electricity to 821,000 customers in 24 counties in western Missouri and eastern Kansas. KCP&L’s retail revenue accounts for 81% of its total operating revenue, while wholesale and bulk power sales account for the rest. Its customers include approximately 724,000 residences, 95,000 commercial firms, and 2,300 industrials, municipalities, and other electric utilities. KCP&L has over 6000 MW of generating capacity. The addition of its new coal-fired plant in Iatan in 2010 will added 435 MW to KCP&L’s generating capacity. With 98% of KCP&L’s electricity supply originating in the Powder River Basin, a localized catastrophe has the potential to cause far-reaching disruptions, although the acquisition of Aquila will geographically diversify Great Plains’ power supply.

Business Growth

FY 2009 (ended December 31, 2009)[5]

  • Net revenue increased 18% to $2 billion.
  • Net income fell 3% to $150 million.

Trends and Forces

Rising Fuel Costs Pose Risk to Great Plains Energy’s Margins

Great Plains’ regulated status makes it difficult to pass on increases in fuel costs to its customers. As a result, increases in fuel prices cut into the company’s profit margins.

Coal: 80% of KCP&L's generating capacity is based on coal.[4] KCP&L's reliance on coal and other fossil fuels is poised to increase as demand increases, making the company vulnerable to swings in coal prices and carbon emissions legislation.

Nuclear: The cost of uranium hexafluoride and conversion services to Great Plains remained relatively stable through 2009 due to contracts already in place. Afterwards through 2018, the company expects an increase in the price of nuclear fuel due to greater market demand. Even with this anticipated increase, however, the cost of nuclear fuel per MWh is expected to remain less than the cost of other fuel sources per MWh.

Government Regulation of Retail Electricity Prices Promotes Stable Revenue Outlook

Great Plains Energy’s subsidiaries have legal monopolies over retail electricity in its areas of service in Missouri and Kansas, bringing stability to the company’s operating outlook through a guaranteed customer base. However, Great Plains’ regulated status also makes it more difficult for the company to adjust retail prices based on swings in the cost of fuel since regulators must approve changes in electricity rates. Kansas retail rates contain an Energy Cost Adjustment provision which provides for a firm profit margin in the event fuel costs rise. Missouri retail rates do not contain such a provision, so a rise in fuel costs would adversely affect Great Plain’s net income until regulators authorize an increase in rates.

No legislation authorizing retail choice of electricity has been introduced in Missouri and Kansas for several years.

Competition

Although Great Plains is the sole retail electricity utility in its areas of operation in Missouri and Kansas, it still competes with other energy companies and technologies. For example, customers have the ability to install other sources of energy, such as installing their own solar panels. KCP&L also competes with other power suppliers in the wholesale power market in surrounding areas where it does not have a statutory monopoly. The company’s wholesale power revenue accounted for 17% of its total revenue over the last three years.

References

  1. GXP 2009 10-K "General" pg. 6
  2. GXP 2009 10-K "Power Supply" pg. 7
  3. GXP 2009 10-K "Regulation" pg. 7
  4. 4.0 4.1 GXP 2009 10-K "Fuel" pg. 7
  5. GXP 2009 10-K "Selected Financial Data" pg. 26
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki