Great Plains Energy Reports Second Quarter 2015 Results
“The economy in our service territory continues on a positive path and
customer demand growth is in line with our full year expectations,” said
“Our service territory was impacted by severe weather during the early summer months including a storm that led to the largest customer outage that we’ve experienced since 2002,” continued Bassham. “Despite difficult conditions, our employees worked quickly and safely to restore power to over 150,000 customers. These efforts demonstrate our commitment to providing safe, reliable and cost-effective power to our customers.”
Great Plains Energy Second Quarter:
Consolidated Earnings and Earnings Per Share | ||||||||||||||||||
Three Months Ended June 30 | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Earnings per Great | ||||||||||||||||||
Earnings | Plains Energy Share | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
(millions) | ||||||||||||||||||
Electric Utility | $ | 46.4 | $ | 54.7 | $ | 0.30 | $ | 0.36 | ||||||||||
Other | (2.0 | ) | (2.6 | ) | (0.02 | ) | (0.02 | ) | ||||||||||
Net income | 44.4 | 52.1 | 0.28 | 0.34 | ||||||||||||||
Preferred dividends | (0.4 | ) | (0.4 | ) | - | - | ||||||||||||
Earnings available for common shareholders | $ | 44.0 | $ | 51.7 | $ | 0.28 | $ | 0.34 | ||||||||||
On a per-share basis, favorable drivers for the second quarter 2015 compared to the same period in 2014 included the following:
-
$0.03 decrease in operating and maintenance expense, including$0.02 due to lower operating and maintenance expense at the Wolf Creek nuclear unit relating to the planned 2014 mid-cycle maintenance outage and a decrease in refueling outage amortization; -
An estimated
$0.02 impact from an increase in weather-normalized retail demand; and -
Approximately a
$0.01 increase from new retail rates inKansas that became effective inJuly 2014 .
The factors above were more than offset by the following:
-
An approximate
$0.06 impact from weather with cooling degree days 15 percent below the second quarter 2014; -
$0.03 decrease in the Allowance forFunds Used During Construction (AFUDC); and -
$0.03 increase in depreciation and amortization.
Great Plains Energy Year-to-Date:
GREAT PLAINS ENERGY INCORPORATED | ||||||||||||||||||
Consolidated Earnings and Earnings Per Share | ||||||||||||||||||
Year to Date June 30 | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Earnings per Great | ||||||||||||||||||
Earnings | Plains Energy Share | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
(millions) | ||||||||||||||||||
Electric Utility | $ | 67.3 | $ | 80.8 | $ | 0.43 | $ | 0.52 | ||||||||||
Other | (4.0 | ) | (4.9 | ) | (0.03 | ) | (0.03 | ) | ||||||||||
Net income | 63.3 | 75.9 | 0.40 | 0.49 | ||||||||||||||
Preferred dividends | (0.8 | ) | (0.8 | ) | - | - | ||||||||||||
Earnings available for common shareholders | $ | 62.5 | $ | 75.1 | $ | 0.40 | $ | 0.49 | ||||||||||
On a per-share basis, favorable drivers for the first six months of 2015 versus 2014 were the following:
-
$0.09 decrease in operating and maintenance expense, including$0.06 due to lower operating and maintenance expense at Wolf Creek relating to the planned 2014 mid-cycle maintenance outage and a decrease in refueling outage amortization in addition to a$0.01 decrease in distribution operating and maintenance expense; -
Approximately a
$0.02 increase from new retail rates inKansas ; and -
An estimated
$0.01 impact from an increase in weather-normalized retail demand.
The factors above were more than offset by the following:
-
An approximate
$0.11 impact from weather with both heating and cooling degree days significantly lower than the first half of 2014; -
$0.05 increase in depreciation and amortization. -
$0.04 decrease in AFUDC; and -
$0.01 from other items.
Electric Utility Segment Second Quarter:
The Electric Utility segment, which includes
Key drivers influencing the segment results included the following:
-
A
$4.8 million increase in gross margin primarily due to:-
$7.5 million increase for recovery of program costs under the Missouri Energy Efficiency Act (MEEIA), which have a direct revenue offset in utility operating and maintenance expense; -
An estimated
$6 million from an increase in weather-normalized retail demand; and -
$3.0 million from new retail rates inKansas .
The gross margin factors above were partially offset by an estimated$14 million from unfavorable weather;
-
-
A
$1.4 million increase in other operating expenses primarily due to a$7.5 million increase in MEEIA program costs, which have a direct offset in revenue. The increase was partially offset by a$6.1 million decrease in Wolf Creek operating and maintenance expense related to the planned 2014 mid-cycle maintenance outage and lower refueling outage amortization; -
A
$7.9 million increase in depreciation and amortization expense driven by capital additions; and -
A
$4.3 million decrease in non-operating income and expense primarily attributable to a decrease in the equity component of AFUDC.
Overall retail MWh sales were down 3.3 percent compared to the 2014
period with the decrease driven by weather. On a weather-normalized
basis, retail MWh sales increased an estimated 1.2 percent, net of MEEIA
impacts, compared to the second quarter 2014. The unfavorable weather
impact in the second quarter 2015, when compared to normal, was
approximately
Electric Utility Segment Year-to-Date:
Year-to-date net income for the Electric Utility segment was
Key drivers influencing the segment results included the following:
-
A
$6.9 million decrease in gross margin due to an estimated$27 million from the impact of unfavorable weather, partially offset by the following:-
$11.5 million increase for recovery of program costs under MEEIA, which have a direct offset in utility operating and maintenance expense; -
$6.0 million from new retail rates inKansas ; and -
An estimated
$3.0 million from an increase in weather-normalized retail demand;
-
-
A
$7.9 million decrease in other operating expenses primarily due to:-
$14.5 million decrease in Wolf Creek operating and maintenance expense related to the planned 2014 mid-cycle maintenance outage and lower refueling outage amortization; and -
$3.3 million decrease in distribution operating and maintenance expense.
The decreases in the other operating expenses above were partially offset by an$11.5 million increase in MEEIA program costs, which have a direct offset in revenue;
-
-
A
$13.2 million increase in depreciation and amortization expense driven by capital additions; -
A
$5.4 million decrease in non-operating income and expense primarily attributable to a decrease in the equity component of AFUDC; and -
A
$4.3 million decrease in income tax expense primarily due to lower pre-tax income.
Overall retail MWh sales were down 3.8 percent in the quarter compared
to the 2014 period with the decrease driven by weather. On a
weather-normalized basis, retail MWh sales increased an estimated 0.6
percent, net of MEEIA impacts, compared to the 2014 period. The
unfavorable weather impact in the first six months of 2015, when
compared to normal, was approximately
Other Category Second Quarter and Year-to-Date:
Results for the Other category primarily include unallocated corporate
charges, GMO non-regulated operations and preferred dividends. For the
second quarter 2015, the Other category recorded a loss of
For the first six months of 2015, the Other category recorded a loss of
Regulatory Update:
Earnings Webcast Information:
An earnings conference call and webcast is scheduled for
A live audio webcast of the conference call, presentation slides, supplemental financial information, and the earnings press release will be available on the investor relations page of Great Plains Energy’s website at www.greatplainsenergy.com. The webcast will be accessible only in a “listen-only” mode.
The conference call may be accessible by dialing (888) 353-7071
(U.S./
A replay and transcript of the call will be available later in the day
by accessing the investor relations section of the Company’s website. A
telephonic replay of the conference call will also be available through
About
Headquartered in
Forward-Looking Statements:
Statements made in this 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, the outcome of regulatory proceedings,
cost estimates of capital projects and other matters affecting future
operations. In connection with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995,
This list of factors is not all-inclusive because it is not possible to
predict all factors. Other risk factors are detailed from time to time
in Great Plains Energy’s and KCP&L’s quarterly reports on Form 10-Q and
annual report on Form 10-K filed with the
Attachment A
Gross margin is a financial measure that is not calculated in accordance
with generally accepted accounting principles (GAAP). Gross margin, as
used by
Great Plains Energy Incorporated | ||||||||||||||||||
Reconciliation of Gross Margin to Operating Revenues | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Year to Date | |||||||||||||||||
June 30 | June 30 | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
(millions) | ||||||||||||||||||
Operating revenues | $ | 609.0 | $ | 648.4 | $ | 1,158.1 | $ | 1,233.5 | ||||||||||
Fuel | (99.9 | ) | (115.4 | ) | (207.5 | ) | (250.6 | ) | ||||||||||
Purchased power | (48.8 | ) | (79.1 | ) | (94.2 | ) | (124.5 | ) | ||||||||||
Transmission | (20.3 | ) | (18.7 | ) | (41.2 | ) | (36.3 | ) | ||||||||||
Gross margin | $ | 440.0 | $ | 435.2 | $ | 815.2 | $ | 822.1 | ||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20150806006647/en/
Source:
Great Plains Energy
Investors:
Tony
Carreño, 816-654-1763
Director, Investor Relations
anthony.carreno@kcpl.com
or
Media:
Courtney
Hughley, 816-556-2414
Communications Manager
courtney.hughley@kcpl.com