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Investment Merits
Great Plains Energy (NYSE: GXP) operates two primary businesses, a regulated utility, Kansas City Power & Light (KCP&L), and an unregulated competitive supplier of electricity, Strategic Energy. Through this combination we strive to deliver stability, a strong dividend, and an average annual EPS growth rate of 2% to 4% to our shareholders over the 2005-2010 time horizon of our Comprehensive Energy Plan. .
KCP&L serves over 500,000 customers in Kansas and Missouri and operates 8 plants and 25 generating units, with over 4,000 Megawatts of generating capacity. Customer prices are very competitive regionally and lower than the national average. KCP&L reported revenues of $1.14 billion and core earnings of $1.80 per GXP share during 2006. The service area has generally grown by approximately 2% annually. To serve this growth in the years ahead, KCP&L has outlined the Comprehensive Energy Plan and is working with regulators, customers, members of the community and other interested parties on implementation. The plan is designed to meet the future needs of our customers and community, while maintaining attractive financial performance for investors.
Strategic Energy is a national competitive electricity supplier serving customers in California, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania and Texas. During 2006, Strategic Energy reported revenue of $1.53 billion and core earnings of $0.30 per GXP share. Strategic Energy provides long-term growth potential in a rapidly expanding market in the years to come.
For a more detailed description of Great Plains Energy's main business, read the Company Overview. Also read Great Plains Energy's Strategic Intent.
Strategic Intent
Great Plains Energy’s Strategic Intent was launched in 2004 and articulates the Company’s mission to demonstrate leadership in supplying and delivering electricity and energy solutions to meet customers’ needs.
Five key areas measure the Company's progress:
- Achievement of top-tier operating performance
- Implementation of KCP&L Comprehensive Energy Plan
- Success in the competitive supply business through Strategic Energy
- Realization of Great Plains Energy’s "Winning Culture"
- Development and strengthening of relationships with our communities
 TOP-TIER
OPERATING PERFORMANCE:
Great Plains Energy’s Strategic Intent is grounded
in a solid foundation that includes a fleet of
regulated power plants that are top-tier in
operating performance and total cost, a delivery
system that provides industry-leading reliability,
and a competitive supply business that is recognized
for customer satisfaction and retention.
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 COMPREHENSIVE ENERGY PLAN:
- Construction of the Iatan 2 high efficiency 850MW
coal-fired plant, of which KCP&L will own
approximately 465MW, scheduled to be in service in
2010
- Construction of 100MW of wind generation completed in September 2006 and included in rates in January 2007
- Environmental upgrades at existing power plants to
improve the air quality in the region, beginning
with upgrades at the La Cygne 1 plant in 2007
- Investments in demand management, distributed
generation, customer efficiency and affordability
programs, as well as transmission and distribution
improvements
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 SUCCESS IN THE COMPETITIVE SUPPLY BUSINESS THROUGH STRATEGIC ENERGY:
Through its consultative approach and innovative products, Strategic Energy is positioned to continue its positive momentum in new sales and backlog growth, providing Great Plains Energy the opportunity for future earnings growth in unregulated competitive supply business.
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 WINNING CULTURE:
The Strategic Intent is evident by the hard work of thousands of individuals and represents the type of company Great Plains Energy strives to be, both now and in the future. Engineering a winning culture by focusing on workforce talent and development is the key to sustaining excellent performance across the Company and creating shareholder value over the long-term.
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 DEVELOPMENT AND STRENGTHENING OF RELATIONSHIPS WITH OUR COMMUNITIES:
Great Plains Energy fosters strong relationships with the communities it serves in order to improve the economic and social well being of these communities through carefully targeted financial support and partnerships. By collaborating with community leaders, these resources are being aimed where they will have the most impact, such as at-risk youth, environment, economic, and civic efforts. These are the foundations that build constructive long-term relationships with community leaders, legislators and regulators.
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