Newly formed Evergy initially will serve
customers under familiar Westar, KCP&L brands
Today, Great Plains Energy Incorporated (NYSE: GXP), which
serves customers as KCP&L, and Westar Energy, Inc., (NYSE: WR)
received final regulatory approval from the Kansas Corporation
Commission (KCC) and Missouri Public Service Commission (MPSC) to
combine. The stock-for-stock merger of equals creates a holding
company of approximately $15 billion equity value, which will be
named Evergy, Inc. (NYSE: EVRG). Its principal business will be
conducted by the operating companies known today as Westar and
KCP&L.
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“As neighbors, KCP&L and Westar have served customers in
Kansas and Missouri for more than 100 years. This merger allows us
to be even more efficient as we continue providing excellent
customer service while maintaining competitive prices,” said Terry
Bassham, chairman and chief executive officer of Great Plains
Energy, who will be president and CEO of Evergy. “We appreciate
that regulators and shareholders recognize the value in combining
the companies.”
The companies anticipate a closing date in early June,
concluding a two-year effort to combine the two companies.
The utilities have guaranteed more than $100 million in customer
bill credits with $29 million upfront for Missouri customers
and $75 million for Kansas customers over the first five years
after the merger closes. In addition, once currently pending rate
reviews are resolved, the companies have agreed to fix their base
rates for up to five years in Kansas as a result of the merger.
“Customers will benefit from bringing together two innovative
teams of employees who are active in the communities we serve and
take pride in providing excellent customer service. The increased
scale and efficiency will deliver savings not possible without the
merger,” Bassham said.
Introducing Evergy
The companies selected Evergy, Inc. (Evergy) as the name to
represent their combined identity. Evergy is a blend of “ever” and
“energy,” capturing the history of its predecessors as reliable,
enduring sources of energy for the communities they serve and its
vision to continue far into the future.
For the immediate future, the company will continue to serve its
customers under the familiar Westar and KCP&L brand names.
Contact information, billing and account information, program
enrollment and outage reporting will remain the same for customers
of KCP&L and Westar.
Financial strength
Evergy is expected to maintain a strong balance sheet and solid
investment grade credit profile. In addition to customer benefits,
merger efficiencies are expected to provide attractive total
shareholder returns through earnings and dividend growth. The
company expects to rebalance its capital structure by repurchasing
about 60 million shares of its common stock over a two-year period.
More information on the company’s plan to rebalance its capital
structure will be provided on Evergy’s August earnings webcast.
Serving customers
The combined company will serve approximately 1.6 million
customers, with a little under 1,000,000 in Kansas and 600,000 in
Missouri. In addition, the combined company will own, operate and
maintain more than 51,000 miles of distribution lines and 13,000
megawatts of generation.
With corporate headquarters in Kansas City, Mo., and operational
headquarters in both Kansas City, Mo., and Topeka, Kan., Evergy
will be the parent of Westar Energy and of KCP&L and KCP&L
Greater Missouri Operations Company, which were previously part of
Great Plains Energy.
Together, the company will employ about 5,000 employees across
Kansas and Missouri. Company executives will be located in Topeka,
Wichita, and Kansas City, and will continue to be engaged in these
communities and throughout the combined service territory.
Affordable, clean energy
With its focus on renewables, Evergy will meet nearly half of
the energy needs for the homes and businesses it serves with energy
from zero-emission sources. Nearly one-third will come from
renewable energy, making Evergy one of the largest wind energy
providers in the nation. In addition, the company is developing
more ways to support customers and communities with energy
efficiency and additional renewable energy programs.
Continued community commitment
KCP&L and Westar have long-standing traditions of supporting
the communities they serve. Evergy has committed to maintain that
support. Employees currently serve on more than 300 community,
charitable and volunteer boards. In addition, the companies and
their employees donate more than 35,000 hours and millions of
dollars to community and charitable organizations annually.
To learn more about the transaction, visit www.kcpl.com/westar
or, after close, www.evergyinc.com.
About Great Plains Energy
Headquartered in Kansas City, Mo., Great Plains Energy
Incorporated (NYSE: GXP) is the holding company of Kansas City
Power & Light Company and KCP&L Greater Missouri Operations
Company, two of the leading regulated providers of electricity in
the Midwest. Kansas City Power & Light Company and KCP&L
Greater Missouri Operations Company use KCP&L as a brand name.
More information about the companies is available on the internet
at www.greatplainsenergy.com or www.kcpl.com.
About Westar Energy
Westar Energy, Inc. (NYSE: WR) is Kansas' largest electric
utility. For more than a century, we have provided Kansans the
safe, reliable electricity needed to power their businesses and
homes. Every day our team of professionals takes on projects to
generate and deliver electricity, protect the environment and
provide excellent service to our nearly 700,000 customers. Westar
has 7,200 MW of electric generation capacity fueled by coal,
uranium, natural gas, wind, sun and landfill gas. We are also a
leader in electric transmission in Kansas. Our innovative customer
service programs include mobile-enabled customer care, expanding
use of smart meters and paving the way for electric vehicle
adoption. Our employees live, volunteer and work in the communities
we serve. For more information about Westar Energy, visit us on the
Internet at http://www.WestarEnergy.com.
Forward-Looking Statements
Statements made in this press release 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 Westar
Energy, Inc. (Westar Energy) and Great Plains Energy Incorporated
(Great Plains Energy), 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,
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,
Evergy, Inc. (Evergy), Westar Energy and Great Plains Energy 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, Evergy, Great Plains Energy,
KCP&L, and Westar Energy; 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; 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 imposition of
adverse conditions or costs in connection with obtaining regulatory
approvals necessary to complete the anticipated merger; 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 anticipated 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. Additional risks and uncertainties
are discussed in the joint proxy statement/prospectus and other
materials that Great Plains Energy, Westar Energy and Evergy file
with the Securities and Exchange Commission (SEC) in connection
with the anticipated merger. Other risk factors are detailed from
time to time in quarterly reports on Form 10-Q and annual reports
on Form 10-K filed by Great Plains Energy and Westar Energy with
the SEC. Each forward-looking statement speaks only as of the date
of the particular statement. Evergy, Westar Energy and Great Plains
Energy undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180524006453/en/
Great Plains EnergyInvestorsCalvin Girard,
816-654-1777Senior Manager, Investor
Relationscalvin.girard@kcpl.comorMediaCourtney Hughley,
816-590-8973Senior Manager, Corporate
CommunicationsCourtney.Hughley@kcpl.comorGreat Plains Energy media
line:816-392-9455orWestar EnergyInvestorsCody
VandeVelde, 785-575-8227Director, Investor
RelationsCody.VandeVelde@westarenergy.comorMediaGina Penzig,
785-575-8089Media Relations
ManagerGina.Penzig@westarenergy.comorMedia line: 888-613-0003
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