ML20035B377
| ML20035B377 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek |
| Issue date: | 12/31/1992 |
| From: | Jennings D KANSAS CITY POWER & LIGHT CO. |
| To: | |
| Shared Package | |
| ML20035B374 | List: |
| References | |
| NUDOCS 9304010256 | |
| Download: ML20035B377 (36) | |
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KANSAS CITY POWER & LIGHT COMPANY Contents [" On C n m n wk c 1mestment Highlights of the Year. 3 l letter to Shareholders. 4 Financial Statements. .12 Notes to Financial Statements .18 ~ Report ofIndependent Accountants .23 ~ ~ Management's Discussion and Analysis .24 m Summary of Opemtions and Financial Data. .28 Electric Statistics. .29 E E E E E' ~ m Company Officers and Board of Directors .30 Shareholder Information .31 EEE k Generating Capacity & the McKan Pool. .32 '2 [,] "" 1993 AnnualMeeting of Shareholders Date Tuesday, May4,1993 Time: 10:00 a.m. Market Prux Per Share long lerm ikbt o m,,,, Interest Expense location: Folly Theater 52s s. 300 West Twelfth Street Kansas City, Missouri 5 a Shareholders of record on March 1,1993, are eligible to vote at the meeting and will be mailed a notice of l ~ l' meeting, proxy statements and form of proxy. j CORPORATE OITICES w E_ m-1201 Walnut Kansas City, Missouri 64106-2124 MAILINGADDRESS
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~ ~ $2D P.O. Box 418679 Kansas City, Missouri 641419679 nE 89 ) 90 si s2 sii se so si s2 I eiE3im
Lk TO OUR STOCKilOI.DERS: q 4 P"-' ~ 7 ^ f ur 1992 results display the influence ofIwo significant factors: B The adverse impact on camings per share of abnonnally mih! weather that prevailalIluuughout the region. and E lhe otherw ise outstan ling perfomunce of [ s irtually all other aspects of Company operations. .T S ~I Our camings per share were 51.35, compared fra-n with 51.58 in 1991 (adiusted for the May 1992 two-for-one - m ;- stock sphu. lhe mild wrather's impact reduced camings by an estimated 35c per share. Retail electric revenues of S741.9 million w cre down 4.5Ci from last year on sales of 10.7 billion kilowatt-hours. Based upon records kept since 1935. the summer cf 1992 was the second coolest on recortl, surpassed oniv p' - inu:xNs Nos; .UtdRMN OF WE 90ARD [ hy 1950. AND PRESHMAT: While overall sales were down, sales to indus-trial customers incirased 5.99 os er last year, res caling malest growth in the regional economy despite the elkets of national nression. And though lagging historical trends, the addition of 3.200 new customers was encouraging. In May, stockholders appan ed an increase in authori/ed shares of common stock, enabling among other things the implementation of a two-for-one stock split. That same month, the Ikurd of Directors declared an increase of approsimately 3G in the common stock dis idend, to an indicated annual rate of $1.44 per share. l
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KANSAS CITY POWER & LlG11TCOMPANY liighlights of the Year )tarEndedDecember31 Percent 1992 1991 Increase (Decrease) TotalOpemting Revenues f(KKrs) S 802,668 5 825,101 (1.7) Net /neor,e t(rrrs) 86,334 5 103,893 (16.9) thrnings Availablefor Commor- ((mmh) S 83,272 5 97,870 (l4.9) ArcrageNumber rifShara* Itr Common Share:* 61,908,726 61,908,726 Ihrnings S 1.35 5 1.58 (14.6) I>iridends 5 1.43 5 1.37 4.4 Rook falue 5 13.79 5 13.90 (.8) lear.endStock Price S 22% 5 23 % (4.2) Return on lear.cnd Common IQuity ("b) 9.8 11.4 (l4.0) IlicidendItryout (*b) 106 87 21.8 Construction ikpenditures ((KKn) S 129,559 5 122,447 5.8 12ectric Plant ((rrrs) S 3.133,059 5 3,060,333 2.4 SelectedStatistics i(MWfs) RetailKilowart-hourSales frak lisad-Summer (kw) 10,658,908 11,052,269 (3.6) 2,624 2,751 (4.6) JVak load-II *nter (k w) i 1,687 1,674 .8 Number of Retail Customers (aretage) 416,052 413,426 .6 Number ofStockholders 32,553 30,698 6.0 Capitaliuition(r total >** o Commonikuity 49.3 49.9 IVeferredStock 5.2 2.6 11mg-term lhht 45.5 47.7 ' Prior year amounts have been restated to reflect the May 1992 two-for-one common stock split.
- Exclusive of long-term debt and preferred stock included in current liabilities.
ket.ul Electne Customers Year-End n,u. 1992 fuel Mix % e }. Coal 71.19 1 1 n l-Nuclear 28.6% i ~ t H Natural Gas.2% { I 0 21. 1 % a[ i l p a J, s,, oc I D
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h <,y e continued to enjoy strong cash now from operations for the year, pros iding 2.8 times , m d_D h hossatened j cos erage of common stock dividend requirements and to take p' asustmeenannenE q Jj advantage of low er interest rates in reducing the 1992 average q s.. messamassem*I 3, rate on long-tenn debt to 6.639. That rate has declined con-z.., y m - > L, amm== emes'*1 'l sistently from 8.329 in 14S9 to 89 in 1990. and to 7.539 in Inisessanamwer i 1991. Over the past five yean, total long-tema debt has been
- 8Mf " S: d reduced nearly 259. from S1.079.5 million to 5814.7 million.
Y ';V metas. fi ~ ?? >] while annual interest expense on long-tenn debt has declined m 1 from 589.7 million in 1987, to 554.3 million in 1992. 4 Meanw hile, our credit ratings have regained a solid A status. 7 One of our most significant operating %r expenses-s) stem fuel costs-mmained among the low est 2 ~ in the region at 83e per million Btu. Wolf Cwek Generating fl Station our on!v nuclear unit (of which we own 479 ). qy recorded average nuclear fuel costs of 32c per million Blu. w hile our fossil-fuel plants (essentia!!y coal) psted average costs of 51.03 per million Btu. Generating plant perfonnance >{ " M. cegam, amesma j was again commendable averaging 839 avadability for the "7 igyecarnanimurmo j year. Wolf Crtek overcame a delayed first quarter retum to k, assennem - msamen f sen ice f rom a 1991 rcfue;ing outage, finishing the year with (seshhusesmuw ] an as erage 86G availability. The unit is scheduled for u g ) amemminotmeces : 1 refueling again commencing in Mawh 1993. p[,t [ m ***( y Over the past five years the Company has 3 l[", i added nearly 23.(00 retail customers and seen its tot d annual p g retail electric revenues grow by 554 million. Meanw hile, total employment has remained essentially flat. revealing EE9 productivity gains so essemial in a more competitive emiron-ment. Cost containment ellons. coupled with enhanced cus-tomer sen ice. have yielded pleasing results. Electric sen ice r,tes have remained stable, actually declining on an innation-adjusted basis. KCPlls total retum to sto.kholders for the five V, years ended 1992 was 1629 compared with 1249 for the eel 1(0 Electnc Utility Index. and 1(Fi for the S&P 5(n h 4Egelst.., h, a + = ll MMM (h [dGae s"ecnonum ]. S. iU w. Fggggggggg 4
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7p t. y ;- '- n 5c 7 l' Me n $[ T b espite this perfonnance ' I record. we reali/c the change undenva) in our industr) repm-sents a significant challenge. In Octolvr. the Pmsident signed the complex and far-maching Energy Policy Act of IW2. thus codifying policies aimed at encountging greater competition, heightened envininmental pnitection and energy conservation. 1 Significant among the Act's sweeping pmvisions are those 1 that pnimote the growth of independent pow er prulueers, pn>- side for expanded use of high voltage tninsmission facilities by nonewning systems. and direct the implementation of measures to reduce kilowatt-hour consumption by all cus-tomen. We has e anticipated these changes and hase attempted [ to prepare ourselves for the opportunnies they repmsent. h In onjer to meet our goal of being the regional h,& energy suppher of choice. we have stressed prudent. cost-eilectise management of all our f acilities striving for impaned i .,-"1' availabihties and life extension. We hase forced new relation-IE ships with customers. including partnership arrangements where mutually beneficial and have stressed cost containment with our employees in order to keep naes stable. We have car-ned on inx;oent and open dialogue with regulators and public policy leaders in onler to keep them apprised of our plans. We legan last year a pncess to " benchmark" g our Ley measures of perfomiance and cost causation thniugh-qli[ out the Company. and took steps to tvtter link rrformance S J
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"tr in Nos ember, the lhurd of Directon authori/cd the fi>mution of a wholly antned subsidiary-KLT inc.- thniugh w hich the Company w ill punue investment in non-mgulated sentures such as new power generation facilities. "%.[:3 - encip) management and [vu et quaht) impnnement consultine senices, and other activities that complement our tnich..tional core business. We continue to investigate and analy/c opportuni-Jk ties that ofler the pnispects for economies of scale, simngthened s4 and enlarged markets. impnnni customer service and thus an !t T increase in sh tLhokler value. 1 A
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K ANSAS CITY POWER & l.lGHT CO\\1PANY Italance Sheets December 31 Assris 1992 1991 Crility lalant, at originalcar Electric ... _ _ -(thousandtj _ _ ~ S3,133,059 53,060,333 (Voics 1, 7and #1 Irss-Accumulated depreciation 948,266 _ 891,782 Net utility plant in service 2,184,793 2,168,551 Construction work in progress 65,%5 57,706 Nuclear fuel, net of amortimtion of 578,735,000 and 569.152,(XX) _ 34.,210 __ 27,060 Total 2,284,968 2,253,317 Regulatory.4sset-Deferred Ilbif Crcck Cmis 1%1e 1) 39,484 Regulatory.1 oct - Recovemide hes (Aote 1) 49,550 94,(KK) 99,(KK) Investments and Nonatility /*roperty 27,570 17,394 Currcut 4ssets Cash 128 128 Receisables Customer accounts receivable (Note 4/ 14,372 20.324 Other receivables 24,043 20,939 f uel inventories, at average cost 20,625 19,766 Materials and supp!ies, at average cost 45,263 45,917 Prepa3 ments 12,968 8.165 Deferred income taxes _ 5,553 _ 1,655 Total 122,952 116,894 sk:ferred Charges Regulatory Assets (Note 11 Settlement of fuel contracts 25,751 29,982 KCC Wolf Creek carrying costs 12,311 15,N7 MPSC rate phase-in plan 7,072 14,144 Other 26,798 14,816 Other deferred charges 6,01_7 4.595 Total 77,949 78,584 Total 52.646,923 52,615,039 The accompanying Notes to Iinancial Statements are an integral part of these statements. __-_--- E3e_ e
K ANSAS CITY POWT.R & l.lGilT COMPANY December 31 + LIAminu s 1992 1991 (timusands) Capitalir.arion (Notes 6 and 7) Common stock--authorized 150,(K10,(XX) (sce statements) shares without par value-61,908.726 shares issued and outstanding-stated value S 449,697 5 449,697 Retained earnings 405,985 411,161 i __ fg9) Capital stock premium and expense _ (1_,75N1 ( Common Stock Equiry 853,924 860,229 Cumulative preferred stock 89,(KK) 39,000 Cumulative preferred stock (redeemable) 1,916 2,076 Long-term debt 788,209 _ 822,680 Total 1,733,049 1,723,985 Current Liabilitics Notes payable to banks (Note 5) 34,(KK) l Commercial paper (Note 51 33,(KK) 52,000 l Current maturities oflong-term debt 26,500 Preferred stock (Note 6) 13,(KK) Accounts payable 77,162 72,324 Dividends declared 423 680 Accrued taxes 19,864 17,460 Accrued interest 12,949 12,461 Accrued payroll and vacations 18,04. 15,169 Accrued refueling outape costs (Note Il 12,6(K) Other 7.631 7,444 Total 208,173 224,538 Dc/ccred credits and Deferred income taxes 576,222 553,345 thhcr Liabilitics Deferred imestment tax credits 91,530 96,051 Other ._ _ _37,949 _ _17,120 Total 705,701 666,516 Commitments and Contingencies (Yole.1) Total S24,46,923 52,615,039
- EEle
r. K ANSAS CITY POWER & LIGHT CON 1PANY Statements of Income lear Ended Deeernber31 1992 1991 1990 (thouumd>J Operating /tcunues Electric 5 802,668 5 825.101 5 812,912 Steam heat ___ 2,658 Total 802,668 825,101 815,570 Operating Etpemes Operation Fuel 130,032 132.100 136,849 Purchased power 21,868 22,226 15,421 0:her 175,937 162,548 148,444 N1aintenance 81,163 80,922 79,467 Depreciation 88,768 86,795 85,020 Tases (See statements) Income 51,691 61,871 65,040 General 92,461 88,525 83,564 Amortization of N1PSC rate phase-in plan (Note 1) 7,07.' 7.072 7,072 Deferred Wolf Creek costs (Note l) ,._ 13,102 _ 11,734 _ 10,366 Total 662,094 653,793 631,243 operating /ncome 140,574 171,308 184,327 other income and Allowance for equity funds used Deductions during construction 1.073 539 126 Deferred Wolf Creek carrying costs (Note l) "'91 1,489 Niiscellaneous 2.595 (3,529) (15,952) Income taxes (505) 1,593 7,978 Total 3,163 (906) (6,359) Incorne Ikfore Interest Charges 143,737 170,402 177,968 Interest charges long-term debt 54,266 63,057 68,853 Short-term notes 2,749 3,299 6,199 N1iscellaneous 2,173 2,665 2,492 Allowance for borrowed funds used during construction . _ _ 1,785 ) _ (2,512) ( __ 2,308) ( Total 57,403 66,509 75,236 lear /> Icesula Net income 86,334 103,893 102,732 Preferred stock dividend requirements 3.062 6,023 6,360 Earnings asailable for common stock S 83,272 S ___ 97,870 5 96,372 Average number of common shares outstanding' 61,908,726 61,908,726 61,899,526 Earnings per common share
- S 1.35 5
1.58 5 1.56 Cash dividends per common share
- S 1,43 5
1.37 5 1.31
- Prior year amounts have been restated to reflect the h1av 1992 two-for-one common stock split.
The accompanying Notes to itinancial Statements are an imegral part of these statements. l
- IZ"> _
KANSAS CITY POWER & LIGIIT COMPANY 4 Statements of Cash Flows learEnded December 31 1992 1991 1990 (thousands) Cash nows /~ nim Net income S 86,334 5103,893 5102,732 Operating Actiriries Adjustments to reconcile net income to net cash prosided by operating activities: Depreciation 88,768 86,795 85,020 Amortization of nuclear fuel 9,583 6,199 8,391 Deferred income taxes (net) 23,979 28,064 28,255 Investment tax credit (net) (4,521) (7,(09) (3,276) Deferred Wolf Creek costs and amortization 13,102 10,943 8,877 MPSC rate phase-in plan amortization 7,072 7.072 7,072 Other amortizations 5,921 5,147 3,631 Allowance for equity funds used during construction __ 1,073) _ _ j$39) (126) ( Total 229,165 240,565 240,576 Cash flows affected by changes in: Receivables 2,848 13,636 s.. V>4) Fuelinventories (859) 137 2,893 Materials and supplies 654 i98) 2,129 Accounts payable 4,838 2,861 2,566 Accrued taxes 2,404 2,995 549 Accrued interest 488 (1,244) (1,239) Wolf Creek refueling outage accrual 12,600 Settlement of fuel contracts (8,578) (939) Other operating activities _ 1.,599 _ 2,175 _ 2,401 Net cash provided by operating activities 253,737 252,449 242,872 Cash nows f rom Construction expenditures (129,559) (122,447) (92,558) Imnring Activitics Allowance for borrowed funds used during construction (1,785) (2,512) (2,308) Other investing activities (4,589) (5,404) 2,290 Net cash used in investing activities (135,933) (130,363) (92,576) Cash nows Irom Issuance oflong-term debt 134,750 135,250 nnancing Activitics issuance of preferred stock 50,(KK) Retirement oflong-term debt (143,230) (163,215) (68,345) Retirement of preferred stock (13,000) (40,000) Premium on reacquired stock and long-term debt (2,321) (5,516) Increase (decrease)in short-term borrowings (53,(KK)) 42,5(O 5,600 Dividends declared (91,277) (90,232) (87,442) Other financing activities 274 (879) (113) Net cash used in financing activities (117,804) (122,092) (150,303) Nel decrease in cash (6) (4) Cash at beginning of year 128 134 138 Cash at end of year S 128 5 128 5 134 Cash paid during the year for: 1 Interest (net of amount capitalized) S 55,123 5 66,290 5 74,844 income taxes 5 32,995 5 37,117 5 28,600 The accompanying Notes to Financial Statements are an integral part of these statements. l
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KANSAS CITY POWER & L1GIIT COMPANY Statements of Tnes = mm liur EndedDewmber31 1992 1991 19(X) Comp (ments of Income Tax Espense _. _ (rhouw, du Current /.r Ib.mble Federal 5 28,081 5 33,667 5 27,324 State _.4,657 5,55_6 _ _4,759 Total 32,738 39,223 32,983 D<ferred Federal (net) 20,488 23,696 24,013 State (net) 3,491 . _ 4,3_68 _ _4,242 Total 23,979 28,0M 28,255 Imestment 7hr Cmiit Provision 60 1,413 Amortization .__ 4,581 ) _ (7,009) _ 4,689) ( ( Total (4,521) (7,009) (3,276) 'Iotal income tax expense 52,1% 60,278 57,062 Lcn: Income taxes applicable to other income and deductions 505 (1,593) (7.978) Income tax expense applicable to operating income S 51,691 5 61,871 5_ 65,040 Deferred Income Tn Espense Depreciation differences 5 29,136 5 30,270 5 30,683 Deferred Wolf Creek costs amortization (2,363) (2,363) (2,363) Wolf Creek refueling outage accrual (4,725) Other 1,931 157 (65) Total 5 23,979 5 28,064 SJ8,255 GeneralTas Expense Property and real estate 5 44,300 5 38,803 5 35,666 Gross receipts 39,232 41,223 39,637 Other 8,929 8,499 S,261 Total i 92.461 5 885?S S_ 83.564 The accompanying Notes to Financial Statements are an integral part of these statements. m'.2 1 l l =um
- EED i
KANSAS CITY POWER & LIGIII COMPANY Statements of Cumulatise Preferred Stock & long-Term Debt December 31 1992 1991 Cumulatise Preferrvd stock (excludmg currera portion) {voic 6) rihowaniuj $1(#1 Par s alue 3.80ro - 100,000 shares issued 5 10,(MX) S 10,(X0 4.50ro - 100,000 shares issued 10,(KMP 10,(KO 4.2000 - 70.000 shares issued 7,(Kkl 7,000 4.3500 - 120,(K0 shares issued 12,003 12,0(0 3.44r '- 500,(KO shares issued _ 50,0(Kl NoPar o Total 5 89,(KK) 5 39,(KO Cumulatise Preferred Stock (Redeemabic)(Note 61 SB/(/ Par salue 4ro - 19,157 and 20,757 shares issued 5 I,916 5 2,076 I Amg-Term Debt (excludme current maturities) {p' ore ;') /irst Afortgage Bondi 10%Co series due 1993*
- S 5 7,500 9.46Co series due 1994" 60,000 60,000 4%ro series due 1995 15,000 15,0(X) 5%ro series due 1997 30,000 30,(00 63ro series due 1998 25,000 25,(KX) 7%ro series due 1999 26,000 26,000 9%ro series due 20CK) 35,000 7%ro series due 2001 27,000 27,00()
l 7%8o series due 2002 30,000 30,000 8%ro series due 2006 40,(00 8%Fo series due 2006 30,000 30,0(K) 5%Co series duc 2007" 21,940 21,940 5%ro series due 2007" 20,000 20,(XX) 8%ro serics due 2007 30,000 30,000 9%Co series due 2008 25,000 6%ro series " A" due 2008" 9,200 6%ro series "B" due 2008" 21,800 12ro series due 2013" 11,980 11,980 Afedium.7erm Notes 7.20ro series B due 19941hru 200(P" 131,000 135,250 7.43 ro series C due 2004 tbru 2007"* 89,000 4 lor
- series due 2017" 31,000 o
Aforrrage Bonds Guaranty of1%Ilution ControlBonds 5%ro serles due 2003 13,980 14,210 3.36re series " A" due 2015' 56,500 56,500 3.5200 series "B" due 2015' 50,000 50,000 3.42ro series " A" due 2017* 50,000 50,000 3.51 ro series "B" due 2017* 40,000 40,000 Baniwer's Acceptances 11,000 Unamorti:ed Premium and Disco : int (net) _ _ _t 191 > . _ _ (700) 70tal S788,209 5822,680
- Variable interest / dividend rate is as of December 31,1992.
" Pledged in support of pollution comrol bonds or ather agreements. "* Secured by Mortgage Bonds-the interest rates are on a weighted average basis. The accompanying Notes to Financial Statements are an integral part of these statements. l
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KANSAS CITY POWTR & LIGHT COMPANY ~ Statements of Retained Earnings har EndedDecember31 1992 1991 1990 (thousands) Beginning Balance S411,161 5399,294 53S4,0N Net income 86,334 103,893 102,732 497,495 503,187 486,736 233 1,794 /*remium on Reacquired Preferred Stock._.-_ - __.-- ---_ -.- - -_.- - Diridends neelared Preferred stock 2,747 5,417 6,359 (at required rates) Common stock-51.31 per share 81,083 51.37 per share 84,815 51.43 per share 88.530 91,277 90,232 87,442 Ending Balance Wore 61 S405,985 5411,161 $3_99,294 { The accompanying Notes to Financial Statements are an integral part of these statements. Notes to Financial Statements
- 1. SL:MMARY OF SIGNIlICANT ACCOlWTING POI.lCIES Corporation Commission (KCC). Annual composite rates were approximately 2.9% during the last three years.
System of Accounts The Company charges to maintenance expense the repairs of The accouming records of the Company are maintained in property and replacement and renewals ofitems determined to be accordance with the Uniform System of Accounts prescribed by the Federal Energv Regulatory Commission (FERC) and generally s than unin ohmpeny, mept for such costs which are charged to ekanng accounn and rehnkeho dms o,wanng, con-accepted accounting principles. Unconsolidated subsidiaries are struction and other accounts. The costs of renewals and better-not material. ments of units of property are charged to the utility plant accounts. 1:tilit3 Plant Property units retired or otheruise disposed of in the normal Utility plant is stated at historical costs of construction. These course of business are charged to accumulated depreciation, along costs include taxes, payroll.related costs including pensions and with removal costs, net of salvage. The amounts of maintenance other fringe benefits and an allowance for funds used during and depreciation expense other than those set forth in the construction. Statemems of Income are not significant. Allowance for funds 1 sed During Construction ( AFDC) Nuclear Plant Decommissioning Costs AFDC includes the cost of borrowed funds used for construction The MPSC in 1986 and the KCC in 1985 estimated in 1985 purposes and a reasonable rate upon other (equity) funds. The dollars the cost of decommissioning the Wolf Creek Generating allowance for borrowed funds represents an allocation ofimert,t Station (Wolf Creek) to be 5103.3 million and 5140 million, costs to construction, w hile the allowance for equity funds is a non-respectively. In 1989, the KCC increased their estimated cost of cash item of income. AFDC is charged to construction work in decommissioning Wolf C1eek to 5206 million in 1988 dollars and in progress during the period of construction. When a construction 1992, the M PSC i icreased their estimated cost to 5347 million in project is placed in service, the related AFDC becomes a part of the 1990 dotars. The corresponding increases in funding and expense original cost of the completed plant which is used to establish rates commenced during 1990 and 1992 for the respective estimates. Put-for utility charges under established regulatory rate practices. The suant to MPSC and KCC requirements, thejurisdictional portions rates used to compute gross AFDC are compounded semi-annually of the Company's 47% share of these costs are being recovered and and averaged 6.6% for 1992,7.7% for 1991, and 9.0% for 1990-charged to operating expense over the life of the plant and placed in Depreciation and Maintenance an external trust fund to be used only for the physical decommis-Depreciation is computed on a straight-line basis pursuant to si ning of W If Creek which is not expected to occur prior 10 2025. l depreciation raws ordered to be used for jurisdictional property by The investment in the trust fund was 510.6 million and 57.8 mil-h.on at December 31,1992 and 1991, respectively. Such amounts are i 1he Missouri Public Service Commission (MPSC) and the Kansas l l 1
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KANSAS CITY POWER & LIGitT COMPANY reflected under imesiments and Nonutility Propert3 on the rals and the corresponding amonization of these deferrals Balance Sheets with the related liabilities for decommissioning over five years began on January 1,1989. l included in Deferred Credits.Other. Other l Other regulatory assets include premium on redeemed debt, Nuclear Inel deferral of costs to decommission and decontaminate the fed-The cost of nuclear fuelis amortized to fuel expense based on eral uranium enrichment facilities and other costs. the quantity of heat produced for the generation of electric energy. Fair Value of FinancialInstruments Under the Nuclear Waste Policy Act of 1982, the Department of The stated value of financialinstruments as of December 31, Energy (DOE)is responsible for the permanent disposal of spent nuclear fuel. The Company currently pays to the DOE, for future 1992 approximated fair market value. The fair mat Let values were permanent disposal senices, a quanerly fee of one mill per determined based on quoted marLet prices for the securities or for Lilowatt-hour of net nuclear generation. The disposal costs are similar types of securities as of December 31,1992 or wrre based on cha*ged to fuel expense and recosered through rates. Such disposal the Company's incremental borrowing rates for similar types of services may not be available prior to 2010 although an interim debt if quotes were not available on the Company's long-term debt. facilit) may be available earlier. Wolf Creek has an on-site spent Resenne Ihtognition nuclear fuel storage facility which, under current regulatory guide-The Company utilizes cycle billing and accrues the amount of lines, can proside space until approximately 2006 for the temporary revenue for sales unb!!!ed at the end of each reporting period. storage of spent nuclear fuel. The Company belieses additional Income Taxes temporary storage space can be constructed or obtained, as The Company has adopted Financial Accounting Standards necessart. Board (FASB) Statement No 96 w hich requires establishment of Regulator) Assets deferred tax liabilities and assets, as appropriate, for all temporary Certain costs are recorded as regulatory assets u hen a rate order differences caused when the tax basis of an asset or liability differs allows the deferral and inclusion of the amonization in rates or f rom that reported in the financial statements. Also, the deferred w ben it is probable, based on historical regu!atory precedent, that tax assets and liabilities created as a result of these temporary future rates established by the regulators will recos er amonization dif ferences must be determined using the tax rates scheduled by the of such costs. If subsequent recover) is not permitted, any unamor-tax law to be in effect when the temporary dif ferences rever:,e. In tized balance, net of tax, will be charged to expense at that time. 1992, the FASB i, sued Statement No.109 which supersedes FASB Deferred Wolf Creek Costs 96 and is eff ecthe for 1993. The effects of adopting l ASB 109 in Orders from the KCC and MPSC provided for continuance 1993 will not be material. of construction accouming for ratemaking purposes subse. The asset, Regulatory Asset-Recoverable Taxes, created as a quent to the September 3,1985 commercial in-senice date of resuh of FASB 96, reflects primarily the future revenue require-Wolf Creek to September 30,1985 and May 5,1986, respec-ments necessary to recover the tax benefits of existing temporary tively. Also authorized was the deferral of cenain other carry-differences flowed thmugh to the ratepayers in the past. ing costs. These deferrals are being amortized and recovered Ahhough the Company has calculated its deferred tax assets and in rates oser an approximate 10-year period. liabilities pursuant to Statement No. 96, operating income taxes were recorded in accordance with ratemaking principles. Reemerablelaxes The following table shows the reconciliation of the federal statu-See Income Taxes for discussion. tory income tax rate to the ef fective income tax rate reflected in the Settlement of fuel C4mtracts income statements: The Company has deferred the cost incuned to terminate certain coal purchase contracts. These costs a:e being amor-tized through the rear 2002-Federal statutory income tax rate 34.0 % 34.0 % 34.0 % Dif ferences between book and tax KCC Wolf CntL Carrying Costs depreciation not normalized 1.7 1.8 1.7 On May 30,1989, the KCC approsed a Stipulation and Amortization of im estment tax credit (3.3) (4.3) (2.9) State income taxes 3.9 4.0 3.7 Agreement which, among other things, extended the Wolf Other M L2 W Creek depreciable life from 30 to 40 years, and authorized the Effective income tax rate 37.7% 36.7% 35g% Company to cease on June 30,1989 the accrual of carrying i costs on 314 mw of alleged excess capacity and to accrue car-If the application of FASB 96 were reflected in the Statements of rying costs on the cumulathe deferred asset through June 30, income, net income w ould remain the same. 199L The reccwery and corresponding amonization of this investment tax credits have been deferred w hen utilized and are deferral over six years began on July 1,199L being amortized to income oset the remaining senice lises of the MP3C Rate Phase-in Plan related propenies. The MP5C's 1966 Wolf Creek rate phase-in plan resuhed in deferral of a cash recovery of a portion of the cost of equity and the carrying costs on the deferral. Recovery of such defer-i O
K ANSAS CITY pow 1R & LIGitT COMPANY Accrued Refueling Outage Cests-Change in Accounting Principle (a) Plan assets are im'ested in insurance contracts, corporate The Company changed, effective January 1992, hs method of bonds, equity securities, U.S. Gos ernment securities, notes, . mongages and short-term investments. accountine for the incrememal costs to be incurred durine sched-uled Wolf' Creek refueling outages. Instead of expeusine these (b) Based on chscount rates of 6% to S.5% and rates ofincrease in future salary lesels of 5% to 6 o. costs as incurred, the Company is accruing forecasted outage costs evenly (monthly) over the unit's operating cycle which normally C p nents of pr visions for pensions (in thousands): lasts approximately IE months. The Company believes this method 1992 1991 1990 of accounting will produce a more meaningful presentation of Senice cost 5 7,301 5 6,162 5 6,208 yearly results of operations than the prior method. Since the Interest cost on projected accrual began on January 15,1992, w hen Wolf Creek returned on_ benefit obligation 17,903 16,617 15,757 A a eturn on plan line after the last refueling outage, there is no cumulath e ef feet for (24,541) (45,542) 1,088 the change in accounting principle. The pro f orma effects on prior Other 3,653 27,026 (18,416) periods, which are not material to the Statements of Income, Total Pension Expense 5 4,316 5 4.263 would has e increased net income by 531 million for 1991 (50.05 -~ 5 4,637 per share) and 53.0 million for 1990 (50.05 per share). Because I ong-term rates of return on plan assets of 8% to 8.5% were used. thete was no refueling outage in 1992, the effect of this change on Long-term Incentise Plan 1992 operations increased operation, maintenance and replace-1n 1992, the sharebolders adopted a 10-year long-Term Incen-ment power costs by a total of 512.6 mdlion and, after taxes, tise Plan for of6cers and Ley employees. Awards issued under the decreased net income by 57.8 million (50.13 per share). The next Plan cannot exceed 3 million common stock shares. During 1992, refueling outage is scheduled to begin in N! arch 1993. the Company granted opnons to purchase 66,000 shares of com-Reclassifications mon stock at the then marLet price of 521.625 per share. The Certain reclassifications has e been made to previously issued recipients of stock options are entitled to receis e accumulated disi-financial statements in order to conform with the 1992 dends as though reinvested if the options are exercised and if the presentation. mat Let price at the time of exercise equals or exceeds the grant price. Fifty percent of the options can be exercised on or after
- 2. PENSION AND LONG-TER51 June b,1993 with the remaining exercisable on or after June 8, INCENTIVE PLANS 1994. Under the assumption that all shares will eventuaDy be exer-Pension Plans cised, an expense of 50.2 million for accumulated dividends and The Company has defineJ benefit pension plans for all its regn.
the change in stock price since date of grant has been recorded as a lar employees, including officers, providing for benefits upon 1992 operating expense, retirement, normally at age 65. In accordance with the Employee
- 3. CON 1%11T51ENTS AND CONTINGENCIES Retirement Income Security Act of 1974 (ERIS A), the Company has satis 6ed at least its minimum funding requirements. Benefits Nuclear Liabilio and Insurance under these plans reflect the emplo)ee's compensation, years of The Price-Anderson Act currently limits the public liability to service and age at retirement.
57.807 billion, including attorney costs, of nuclear reactor owners Provisions for pensions are determined under the rules f r claims that could atise from a nuclear incident. Accordingly, h! e Company and the other owners of Wolf Creek haveliability prescribed b) FASB 87. The foUowing is the funded status of the plans: enemaMW amnt wM mnhMe masum p#C"",'C' 3 3 available commercialinsurance of 5200 mi!Iion and Secondary 1992 1991 Financial Protection (SFPJ. The SFP coverage is funded by a man-datory program of deferred premiams assessed against all owmers mueauv Accumulated Benefn Obligation: of licensed reactors for any nuclear incident anywhere in the coun-ny. The max mum assessment per reactor is 563 million (529.6 mil-No - ested 1 n, mp n a e), a whatge of 5%, per incident. The Total 5179,147 5160.130 owners of Wolf Creek are jointly and ses eraHy liable for these Determination of Plan Assets charges, payable at a rate not to exceed $10 million (54.7 Ini!! ion, less Obligations: Company's share) per incident per year. Fair value of plan assets (a) 5272.001 5251,535 The owners of Wolf Creek also hase property damage, decon-Projected benefit obligation (b) _241,902 212,655 tamination and decommissioning insurance for loss resulting from Difference 5 30,099 5 3SMO damage to the Wolf Creek facilities in the amount of 52.625 bil-Reconciliation of D;fference: lion. Nuclear insurance pools provide 51.3 billion of coverage. Contributions to trusts Nuclear Electric Insurance Limited (NEIL) provides 51.325 billion. in the es ent of an accident, insurance proceeds must first be used d liabilit) (4 ) ( ) Unamortized transition amount 18,828 20399 for reactor stabilization and site decontamination. The remaining Unrecognized net gain i1,194 21,852 proceeds from the 52.625 bi!! ion insurance cos erage (51.234 hil-Unrecognized prior service cost (4,101) (4,529) lion, Company's share), if any, can be used for property damage Diffcrence 5 30.099 5 38.880 up to 51,0O miUion (Company's share), premature decommission-1
- CD*
KANS% CITY POW L R & LIGilT COMPANY ing costs up to 5117 million (Companyi sharelin excess of funds necessary to meet edsting and future emironmentallaws and repu-presiously collected for decommissioning (as discussed in Note 1) lations gmerning water and air quahty, including cat bon diodde with the remaining 547 million (Company's sharc) available for (CO ) emissions, harrdous waste handling and disposal, toxic either propeny damage or premature decommissioning costs. substances and the effects of electromagnetic fields (EMD could The owners of Wolf Creek has e also procured eura expense require substantial changes to the Company's operations or facili-insurance from NEIL Under both the NEIL property and extra ties. Also any tax on emissions such as CO; or energy could signifi-expense policies, the Company is subject to retroacth e assessment cant!) affect costs. The costs of compliance with environmental if NElL losses, with respect to each po!ic) year, exceed the accu-laws and regulations are normally reemerable through the mulated funds as ailable to the insurer under that policy. The esti-ratemaking process. mated maximum retroactn e assessments for the Company's share Interstate Power Company (lmerstate) filed a complaint in 1989 under the policies total approximately 58 mi!! ion per year. against the Company under the Federal Superfund law seeLing in the es ent of a catastrophic loss at Wolf Creek, the amount of indemnity and contribution for cleanup costs, estimated to be insurance available may not be adequate for propert> damages and 51 million to 510 million, at an lowa site sold by the Company to extra expenses incun ed. Uninsured losses, to the extent not recos - Imerstate in 1957. The Company acquired a gas manufacturing cred through rates, would be assumed by the Company and could plant on the site in 1932 and allegedly operated it for very brief hase a material advene ef f ect on the Company's financial periods of time before demolishing it in 1952. condition. The Company belines that it has seseral meritorious defenses Nuclear i nel Commitments against this action and has asserted them in its proceedings, includ-At December 31,1992, % olf Creet's nuclear fuel commitments ing the fact that the 1957 sales documents include a clause indem-(Company's share) wcre approdmatch 520 million for uranium nifying the Company from and against all claims and damages concentrates through 1997,5139 million for enrichment throuch arising after the sale. As well, the Company is seeLing contribution ~ 2014 and 550 milhon for fabrication thiough 2014. r indemnity for these cleanup costs, to the extent that the Company is found liable, from other parties to the lawsuit. las Matters A hearing to determine if the Company should shair in the costs The Company's federalincome tax returns for the years 1955 of cleanup was completed in April 1992; the decision on this part through 19M are presemly under examination by the lmernal Rn e. of the caseis expected to be receised within the next year. If the nue Senice (IRSL in 1992, the IRS issued Roenue Agem's Reports Company is unsuccessful on the issues of liability, the Company induding proposed income Tax Examination Changes for ibe years belines that its allocated share of the cleanup costs would not be 1955 through 19S8. The Reports indade proposed adjustments material to the financial condition of the Company. which would reduce the Company's Wolf Creek investment tax g, credit (lTC) by 25% or approdmaid3 520 million and tax depreaa-The Company has emeted into,in the normal course of business, tion by 23% or a;,;,rodmaidy 5170 mil!;on. These amounts mdude a 6 of come the contmuing effect of the adjustmems through December 31, Under long-term contractual arrangements, the Company's share 1992. These adjustments, principa!!>, are based upon the IRS's of urchased coal during thelast three years totaled approximatdy contemion that fi) certain start-up and testing costs, which the 521 million in 1992 and 1991 and 52S million in 1990. The Com-Company considers to be costs of the plant, should be treated as licensing costs w hich do not qualify for ITC or accelerated depreci- '. h of purchase commitments in 1992 dollars under the s remaining term of the coal contracts is approximately 5125 million. ation, and (ii) certain cooling and generating f acilines should not The Company also purchases coal on the spot marLet. qualify for ITC or accderated depreciation. Under leases the Company incurred tental expense during the lf the IRS were to proall on all of these proposed adjustments. W h.p of pdady 513 million to $17 million per year. the Company would be obhgated to make cash paymems, calcu-Rental commitments under leases for railroad cars, computer lated through Deceraber 31,1992, of approximatdy 590 million f.or additiona! federal and state income taxes and 540 mdlion for cor- - buildings and similar items are approximatdy 5122 mil-1 on oser the remaining life of the leases with payments during each respondmg imerest. Aher off sets for deferred income taxes, these of the next fne years rangine from a high of 517 million in 1993 to pay ments woulJ reduce net mcome by approdmatdy 525 million 58 mD! ion in 1997. Caphal bases are not material to the Ccmpany Based upon their interpretation of appheabk tax principles and and are induded in the amounts discussed abose. In addition, the the tax treatment of sumlar costs and f acilities with respect to other Company has a transmission line lease whh another utility plams, it is the opinion of management and outside tax counsel u hereby, with ERC approsal, the rental paymems under this lease that the IRS's proposed Wolf Crecie adjustments are substanually can be increased by the lessor, ahet which the Company is entitled oventated. The Compam has filed a protest with tlye appeals dui-l to caned the lease if the Company is able to secure an ahernative sion of the IRS. Management bdieves that any adiaonal taxes, transmission path. bial commitmems under this lease, not together with interest, which will result from the fmal resolution of nduded above, are $1.9 million per year and approximate!) 562 these manet s uill not be material to the Company % fmancial mHhon mer the remaining life of the lease if the lease is not l con 6aon. caneded. Ernironmental Matters The Company has entered into contracts to purchase capacity The Companyi operations must comply with federal, state and through May 2(00 from other utilities. Such obligations increase local emi:onmental law s and regulations. Compliance programs each comract year from 510.6 milhon in 1993 for 395 mw to 516.1 l eCE*
K ANSAS CITY POWER A LIGHT COMPANY mimon in 194 for 450 mu. For contract years IN6 to 1999, the in April 1992, the Company iuued 550 million, Cumulatite No cost is $13.7 minion per year for 300 mu of capacity. Par Preferred Sto;L, Auction Series A, stated salue of $100 pet share. The 50.9 rnilhon in costs awociated with this iwue were
- 4. 5Ai 1: Ol' ACCOtlN1S lll:Cl.1\\ Allt.l:
charged to capual stock premium and espcnse. In 19s9, the Company emered imo an agreement u hh a finanaal The inued Cumulathe Preferred Stock of 591 mdlion may be inuitution m sen with limited recourse, an unJa ided imerest in redetmed at the option of the Company at prices w hich,in the designated accounts recchaNe Accoums recehab!c sold under this aggregate, total 591 mi!! ion. agmmem totakd 560 minion as of December 31,1992 anJ 1991 Scheduled mandatory sinking fund requirements for outstanding and 550 t iHion as of December 31,1990. Coss awociated with the redeemable 4% Cumulathe Preferred Stock are 5160A0 per year. sale of custome accoums recchable of 52.6 minion,53.5 mimon At December 31,1992, the Company had authorized 409,157 and 54.4 m uion for 1992.1991 and 1990. respective!), are includeJ shares of Cumulative P:eferred Stock at a par value of 5100 per in other mcome and Jeduaionomner!!ancous-share,1.572A0 shares of Cumuhtise No Par Preferred Stock and
- 5. 5110lt F-1 tiltM llORitOWINGS II AOBO shares of Preference Stock without par value.
If an3 dhidends on its preferred stock are not declared and paid The(ompany bonous shon-te:m tunds hom banks and w hen schedukd, the Compam could not declare or pay dividends through the sale of commercial paper as needed. t nder m nima! ca its common stock or acqu[re any shares thereof for considera-fee arrangemems. the Company has confinned Icnk Enevo!-credt tion. If the amount cf any such unpaid dividends equals four or totakng 5175 rrimon, which were not bornmed against as of more tu!! quanetly dividends, the holders of preferred stock, soting D"mbe' 21' 19C~ as a singk class, could ele;I re;nesentatives on the Company s
- 6. COMMON STOCK I QlTI Y, Pittil.l(RI.D STOCK Burd of Dnem AN D ltl:DI.l A1 AHI 1: Plti i I: Rill:D SlOCK
,,ONG,.II RM DI HI s.. On May 5,1992, the Company's common shareholders a;, prosed l'irst Mortgage Honds an amendment to the Restated Arncles of C onsohdahon mcreasing the number of. authorized shares of common stock r. rom 60DO.0t0 I.he Company cannot issue adi..nonalI_trst Mortgage Bonds aut hon. zed by the Indenture of. Mongage and Deed of Trust dated to 150,0r0DM..and a t wo-for-one common smcl sph.t. One ad6-tional share et. common sto;L was inued on May.y9.199, for each as of December 1,1946, as scpplememed, as long as any of the shn m.ued and outuanine on May 13,199_,. the rnord date for Mongage Bonds (discussed below ) are out uanding. Substannally theuoa. spht. I.he (.ompany meurred 50., m:!.uon of costs Juring an of the (,ompany,. un_ats plant is pledged under the terms of the 190 rela ed to this wo.L spht which was charged to capital sto.L
- nem
- tm anJ expense. A!! share anJ per share da,a has been Mortgage Bonds resteed to reflect the stock sphi The Company is authorized to issue Mortgage Bonds under the The Company purchased common sto.L in 19w u hich was dis General Mortgage Indemure and Deed of Trust dated December 1.
Iributed to the empio3cei 401(L) plan in 1990. The diherena 1986, as supplemented. The amount of additional bonds u hich beturen Ihe purchase pri.e of these hares and marLet value at ihe may beissued is subject to eenain restrictive protisions of the tirne of dntrAtion was chargeJ to capital nock premium anJ General Mongage Indemure. I he General Mangage Indenture es. pense along u th the gam en ctiremem ef prefened stoci for conuitute a mangage hen upon substamially a!! of the Company's sintmp fund reau s a us. utility plam and is junior to the ben of the Firu Mongage. ReuineJ ea nings at December 31.1992 inc!aved 515 r"" ion 1 he Company pledged Mangage Bonds in the amount of 5550 w hich was not atailb!e fm cab dmJends on common uo.L unde , dihon to secure the outstanding 5239 mi iion (includmg 519 mH-Ine pres nions of the Indentu e of Monpage se,':nng Firu Mon-hon recoTed as cunem maturation oflong-term debt) and the page Bondt uniwurd 5311 miHion of Me6cm-Term Notes as of December 31, Der - 1991, the Company scaa;uneJ and reined the 53350 1942. In January 1993,512 mUbon of aditional Notes were issued. shares of the 5133 and MOF0 shues of the 52.20 Cumulathe No wheduled Matunties Pat Prefe"ed Stock with a comb.med stated salue of 540 mu, hon. ~' 1 he follou ing pah.unon connol bond series hate smLine f.und 1he toulcon of this narsaction included a So, nnu...n premum ofahs.h 5_,.9 milhN uas chxce.4. aca.mst capnal uock prenuum reautrements u hich begin in tarious yean: 5 3.%. in 1989,5 4..in 2 19 0 and 5. % in 1995. and expense and 51.5 mh..on was charged against rained earmngs. In I ebrury 194.,.. the Company redeemed and reared Ihe 1.he appregme amount of maturities and sinking fund require-130M.M sh: *es of N - _. _,%. C.umuh!he Preic red StocL una a par mems dring each of the next fhe years for the long-term debt out-i uanding as of December 31,1992 s. 526.5 m:.!! ion in 1993. 5119.5 u,ue e,i 513 m,, on. T.he cost of redeeming th s stoct m.cluJed a m mUhon m 1941. 545.0 m.! bon.m 1995,517.3 mim.on m 1996 and pa num et 50.,., m W.on which was,hrged aga:nu m u.ncu 530.B Id. hon in 199 4 carne n
K ANSAS CITY POWER & LIGilT COMPANY
- 8. JOINTLY-OWNED ELECilllC UTILITY PLAN 1S IILPOilT 01 INDLPENDENT ACCOUNT AN1S The Company has, u-der joint ou nership agreements u ith other 70 the.5;ockholders and Board of Directors utilities. undivided interests at December 31,1992 in utility plants Kamas City her d Licht Company; as follows tin millions of dollars):
We hase aud. d the accompanying balance sheets and state-ac Wolf Creek La C3gne latan ments of cumulatise preferred stock and long-term debt of Kansas Unii Units l' nit City Power & 1 ight Company as of December 31.1992 and 1991, Company's share 47 % 50 % 70 % and the related statemems of income, taxes, retained earnings, and Utility plant in service 51,315 5264 5247 cash Dous for each of the three years in the period ended Decem-Nudear fue!in service 5 y bn 31,19c These 1manaal natenwnts are the respomibWty of Spent nuclear fuel 5 53 the Company's management. Our responsibility is to express an Estimated accumulated depreciation opinion on these financial statements based on our audits. (Production plant only) 5 237 5144 5105 We conducted our audits in accordance with generath accepted Accumulated amortization auditing standards. Those standards require that we plan and per-(Nudear fueD 5 ,9 term the audit to obtain tensonable assurance about whether the Company's accredited capacity-mu 532 678 469 fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the Each participant must proside its own financing. The Com-amoums and disclosures m.the financial statements. An audit also pans s share of direct expenses is included m.the correspondm.-e meludes assessing the accouming principles used and s.iemficant operatinc expenses on the Statements of Income. estimates made by management, as ne!! as evaluating the oserall
- 9. QU AllTLitLY OPLitATING ltl>ULTS financial Matement presentation. We beliese that our audits pro-(UNAUDITED) s ide a rea(onable basi 3 for our opinion.
In our opinion, the financial statements teferred to abose 1st 2nd 3rd 4th pmem f irh, m.au material respects.the f_mana. l posnion of a Quarter Quarter Quarter Quarter Kansas City Power i Light Company as of December 31,1992 1992 and 1991, and Ihe results of its operations and its cash flows for Operating resenues 5160,022 5196,505 5229,425 5196,716 cach of the three years in the period ended December 31,1992,in Operating income 5 23.795 5 34,351 5 50,638 5 31,799 conf armit) with genera!h accepted accounting principles. Net income 5 F.321 5 21,335 5 38,044 5 18,634 As d:scussed in Note I to the financial statements, the Com- "I ""E o on hare 5 .12 5 .33 5 .60 5 .29 refueling outage costs in 199. 1991 Operating resenues 5161,551 5208,575 5254,392 5160,253 Operating income 5 35,131 5 45,522 5 66,627 5 24,028 ~ ~~ Net income 5 17,728 5 28.833 5 49.633 5 7.699 i N* Earnirgs per common share 5 .26 5 .44 5 78 5 .10 The business of the Company is subject to seasonal fluctuations January 2J,. Missouri Kansas Cuv 1993 with peak periods occurring during summer months. See Manage-l ment's Disansion and Anah sis of I~inancial Condition and Results of Operatior>s for discussion of items affecting quarterly tesults such as Wolf Creek tefueling ou: ages and accruah and the abnorma!!y cool 1992 summer season. l l l
- (25
KANSAS CITY POWER & LIGIIT COMPANY M AN AG131tNI'5 D15Cl% ION AND AN AI.V51N Ol'1 IN A NCI AI. CONillTION AND Ri>UllS Ol'OPLRATIONN hw h Sales and Operating Rnenues programs, increased competition and retention of large industrial customen could af fect Lw h sales. Alternathe sources of electric-5 ales and rnenue data: Increase 4 Decrrasci ity, such as cogeneration, could affect retention of and future Irom Prior Trar sales to large indust rial customers. 1992 1991 The Company sold the steam heat system in March 1990 result-hwh Enenues hwh Rnenues mg m nummal steam heat revenues for 1990 and the elimination of steam heat resenues in subsequent years. m,mu om,% Retail sdes: fuel Cosh ( ^#"F# #
- I"
- E""i!!i n TU decreased Io 50.83 in ladustrial 5.9 %
3 3.7 % 2 IW2 from SR92 m. 1991 and W m. 199R Other i.3 % (.7)S Aserage nudear fuel cost per million UTU, induding disposal lotal retail saic-( 3 M, (34) U% 59 cost s, w as 50.32 in 1992, 50.30 in 1991 and 50.29 in 1940. The Sales for resa'e: capacity factor at Wolf Creek Generating Station (Wolf Creell Bu!L power sales 51.2 % 12 (39.0J% (17) Other (5.M S (3.91% was 65% in 1992,59% in 1991 and 79% in 1990. The capacity br 1990 reflect s a 68 day ref ueling outage. During the first Tota! sales C2) 12 steam heat anJ other g g7399 ggg gg,s capacity was reduced to approximatelv resenues C) 50% to assure adequate fud for full-power operation during the-Total ope:ating te.enues 5 C2) 5 10 sumnwr season. In September 1991, the unit was brought down ~~ for a scheduled refueling. The outage was extended through A milJer than normal caohng season adsenel aflected yeanend for a total of 103 days in 1991 and 14 days in 1992 to 3 resiJemial and cornmercial sales in IW2 in contrast to the warmer accommodate additional motor-operated vah e testing performed than normal cooling season of 1991. Ba ed on the Company's in response to a Nuclear Regulatory Commission (NRC) industry-records 01 cooling degree day abose 65'I' which date ba L w ide generic letter. In February 1992, a forced outage occurred to 1935,Ihe summer of IW2 was the second coolest on record. and during restart, a noise was heard in the containment building. 1950 being the coelest summer. The weather condition., a cre the 1 he unit remained off-line for a total of 37 days to investigate and primary cause of the sariances in residemia! and commercial determine the cause of the noise and make minor modifications sales for IW2 anJ IW1 although both years aho reflect loaJ before it was returned to sen ice. Wolf Creek has since operated at growib. Industrial L w h sdes wminued to increase eser prior or near full capacity. 3ean and teficct mcreased large atomer usage in 1he sted. Aserage f uel cost per million BTLI for fossit plants was 51.03 in amo manubctming. gram procew ng and plastic comainer 1992,51.05 in 1991 and 51.06 in 1990. The 1992 lower cost reflects p'oJaction secton. decreased coal prices and freight rates. INL power sales hac been alfected by the Company's system Because Wolf Creek's fuel costs are lower than any other requhemenn, requirenab of or her deciric s3 stem s and as aih biht) Company unit, the combined nudear and fossil m erage fuel cost of generatirp unia-is higher u hene'.er the unit is down for refueling or operates below Trif fs did not iharn e m dera!!3 Juring ihe last three rean. the prior period's average capacity. Cha u es in total retenac per tw h are due to changes in the mis of Ef feetite January 1992,in accordance with the change in L a h sales among customer dassifications and the ettect on asounting principle, the Company started accruing to fuel certam cMfications of declinmg prit e per Lw h as L w h usage expense the estimated replacemem power costs to be incurred mcreases. Onl3 the Company's a holesa:e rate schedules ahich do during the scheduled spring 1993 Wolf Creek refueling outage. nm indade buil power sales, tomain f uel adjustment pretisions; t berage fuel cost, as discussed abose, does not indude this u hoinale resenues a. count for less than 1% of the Company's accrual.) res en uet 1 he led of I u h sale m the f uture u i!) depend upon w cather ""P""#"" 0 "f# " ## Inerrase (Deerrase) conJitions customer censen ation c!forn, competing fue! sources 3 rom Prior Year and the oke!all econom) of the Compan3\\ sen iJe area. bales to p industrial customers such as sted and auto manufacturers are aiso atitcieJ b t he national economy. I uture retail L w h sales u i!! 3 &mion for customers and be peuthd> aflected by the 3.200 increase in the number of bu!L power sales 53 5 (S) custemen during 1992.1 he lesel of bati power sales in the future terage fuel cost (13) 8 wi!! depend upon the mailabilia of ceneratine unia, f uelcosn, Wolf Creek refuding outage accrual 6 requnements c.f other electric sy stenh. and the Compami miem Coal phricalimemory adjustment _2 (3) ' ~ t eam r ement s. Tmal 5 C) 5W Also, issues facing Ihe deenic utiht) injustry in pencialauch %dading a 52 million drop in fuel costs because of the sale of as deregulanon. Iransmioion ac ew del and-side management the steam $3 stem.
K ANSAS CITY POWER & 1-.lGi!T COMr'ANY Purthased Power General laws Purchased power for 1992 decreased only slightly from 1991 as 1 he increase in pencral taxes for IW2 is due primari!) to the new the mild ucather forced power prices dou n making it more eco-Kansas school fmance legislation that increased the Company's nomical at times to purchase power than to operate a higher cost property tax expense oter 1991 by $4 million. The Company esii. per mi! lion 111 U pencrating unit to meet peal loads. Purchased mates this legislation willincrease its property tax expense oser power for 1991 reCects lower availability of generating units and 1991 by 55 minion in 1993 and 56 million in 1994. In addition, higher Company system regmrements. The lesel of purchased pcneral taxes aho increased tpproximately $1 nullion due to higher power in the fut ure will depend upon asailability of generating property assessments and tax rates, offset by a decrease of 52 mil-units f ucl costs requirements of other electric systems and 1bc hon in gross receipts taxes due to lower billed retenues in areas sub-Company's s> stem requirements. ject to tax. A new Kansas propeny tax classification amendment See Note 3 to the financial Statements-Commitments and will further increase the Company's property taxes by an esumated Contingencievfor commitmems under connaets to purchase $2 milhon beginning in 1993. capacity. Ihe 1991 increase in rencral taxes over 19W relates primarily to an increase of 51.6 million in gro's receipts taxes resulting from Other Operation l.apenses higher bdled resenues in areas subject to tax and an increase of 53.1 Other operanon ex;>enses increased in 1992 and 1991 partialh m:! hon in property and real estate taxes due to higher properts due to increases in oserall leve.n of pencral and administratise auessments and tax ratex openses of. 57 < mdlion in 1992 and 55.9 milhon in 1991 reGectmp increased wares costs of sarious employee benefits and other Other income and Deductions ef fects of inGation. In addition, other production operation Miset:laneous and Income Taxes-1 hh reDects a decrease to net expenses at Wolf Creet mcreased 52.8 million in 1992 reflecting the income m 1990 primarily because of Ihe expeming in the fourth $2.6 milhon accrual for estimated incremental opcrating expenses quarter of 19W the costs awoaated with the ter minateJ tender to be incurred during the next refueling outare. Wolf Creek of f er for Kansas Gas and I'lecuic Company (KG&l~)in the amount expenses for 1992 also include the effects of the 37 day forced out-of 512.9 million before taxes and 581 milhon af ter taxes (50.13 per are and 14 days of the extended ref uehng outare that began in share).1his decrease to net income was partial!> offset by the sale 1991.190Juetion operation expenses at Wolf Creek for 1991 in March 1990 of the downtow n Kansas Cii), Mmouri steam vs-increased by 54.2 milhon oser 1990 mainly resuking f tom 103 days tem at a profit atter taxes of $2 6 mdhon. Aho included in miscel-of the extended re!uehng outage compared to 68 days for the laneous income and deductions are administratne fees associated 1990 ourage. The nmt refueling outare is schediJed to begin in uith the sale of customer accounts receivable of 52.6 milhon,53.5 Manh lu93. milhon and 54 4 million for 1992,1991 and 1990, respecthely. Production operation ex;v:nses at the Company's fouil plants for Gains from the sale of miscellaneous property and ather contract 1992 were approximately equal to 1991 and increased 51.6 minion settlements of 54 4 million are aho included in miseeDaneous oser 19%. ior 1992. l Maintenance Interest Charges l Maimenance expenses at Wolf Crect for 1992. excluding ihe 54.0 1he dahnes in long-term imerest c) pense for lW2 and 1991 milhon accrual for estimated incremental maimenance egenses to reflect lower interest rates on s ariabic rate debt and the retirement, be incurred durir,p the next retuelmy outage, decreased by 55.3 mil. repayment or refinancing of debt.1he average balance of lony. hon from 1991 w hah had increased by 50.9 million oser 1991 term debt includmg current matunties declined compared to the Mainter.ance expcases for 1992 indude the effects of a 37 day ptior year by SIM milhon in 1992 and 523.1 milhon in 1991. forced outage at Wolf Crect and 14 days of the extended 1W1 1 he decline in shon-1erm imerest expeme reDects the decreasing ref ueling outage w hereas 1991 maimenance expeme includes 103 imerest rates since 1990. The aserage daily outstanding balance of days of the ref uchng outage compared to 68 day of the 1990 shon-term debt wn 559] mi!! ion in 1992. 549.8 mdhon in 1991 and ref uchny outape-570 4 milhon in 1990. Of fsetting Ihe decrease 5 at Wolf Creek for 1992, fowil plant maimenar.ce increased by 53.3 mil! ion mainly due to boiler Nened 5tmL Dhidend Requirements oserhauh. The 1991 !auil plant renerming unit maimenam e was 1 he decrease in 1992 prefened stock dhidend requirements approximatch equal to the amount incurred in 1990. re0xa the December M and Iebruary 1992 retirements of higher ~ rate prefened stock, partiaH) of f set by the Apri! 1992 iuuance of locome laxes sariaNe rate prefened stock. The decreases in operating income taxes for 1992 and 1991 are due to decreases in income subject to tat in addition. imestmem tM ered;t (IIC) amorn/a!!on increased 523 mhhon in the founh quaner of 1991 to f uhy amonize presiously utuind llc on nuJear fuel aheady burned. O
KANSAS CITY POWER & LIGHT COMPANY 4 Earnings per hhare lucrease Increase 1992 IDecrease) 1991 (Decrease) 1990 Earnings per Share (EPS) 51.35 5 (.23) 51.58 5.02 SL56 ltems affecting comparability of EPS: Estimated effects of abnormal ueather' (.35) (.46) .11 .14 (.03) 1991-1992 extended Mo!f Creek refueling outage costs in excess of forecasted amounts (.02) .07 (.09) (.09) 1992 forced Wolf Creet outage (.05) (.05) Terminated tender offer costs .13 (.13) Decreased innrest expense, accounts receivable sales-administratise fees and pre!ctre disidends 16 .10 J Other" .05 f.26) EPS change 5 (.23) 5.02
- The estimated ef feet of abnormal weather is based on a statistical relationship betw een sales and the dif ferences in actual and nor mal temperatures for the year.
"The 5.05 increase from 1991 to 1992 is primarily due to gains from the sale of property and other contract settle-ments. The 5.26 decrease from 1990 to 1991 was caused by increased purchase power, red Ard t>ulk pow er sales, effects of inflation and other increases in operating expenses partially offset by load growth. Projected Construction Expenditures Construction expenditures, exch; ding AFDC, were 5129.6 the Company estimates the cost of nudear fuel per million BTU million in 1992 and are projected for the next fis e s cars as follows: after the next refueling in the spring of 1993 will continue to be ~ approximately one-third the cost of coal. It is anticipated that by Construction Expenditures 19% the cost of nuclear fuel will increase in relation to coal to be 1993 1994 1995 1996 la97 Total abour one-half the cost of coal. m.s w An extended shut-down of the unit could have a substantial Generating ads erse effect on the Company's business and financial condition. facilities 5 43.2 5 56.7 ! MO 5 45.7 5 97.4 5311.0 Although not expected, an abnormal shut-down at the plant could Nu f el 5.8 21.' 21.8 9.4 20.6 79.3 be caused by activities at the plant or by actions of the NRC facilities 12.2 8.7 10.0 10.9 8.0 49.g reactmg to safety concerns at the plant or other similar nuclear Distribution and facilities. If a long-term shut-down occurred, the state regulatory general commissions could consider reducing rates by exduding Wolf facihties <6.8 57.7 59.6 63.0 66.0 323.1 Creek investment from rate base. Total 513S.0 5144.8 5159.4 5129.0 5192.0 5763.2 Emironmental Matters The abo e expenditures for generating facilities indude 580.0 On October 27,1999, Congress approved the Clean Air Act [ million !or three new 90 mw and tw o new 144 mw gas-fired Amendments of 1990. Two parts of thelegislation affeet the utility I combustion turbines, the first of w hich is scheduled to be industry. The Company estimates that tota' 'apital expenditures completed in 199S. The other four units are scheduled to be resultine from the acid rain provisions will be $ 15.6 million for the completed between 1999 and 2000. Generating facilities als installation of continuous emission monitoring equipment and low include 510 8 million beginning in 1996 for a new 500 mw (250 mw, NOx burners. The Company has spent 52.3 million as of Decem-Company's share) coal-fired generating unit tentatively scheduled ber 31,1992 and has included the remaining 513.3 million in the to be in service by 2002. fis e year projected construction expenditures. The other utility-The timing of constrt ction and cost estimates are subject t continual review and acljustment. Actual constructionrelated provision calls for a study cf certain air toxins. Based on the outcome of these studies, regulation of air toxins, including expenditures mas vary sippficantly from these estimates. mucury, could be required. The Company cannot, at this time, Wolf Creek predict the likelihood of any such regulations or compliance costs. Wolf Creci epresems approximately I;re of the Company's Provisions in the Clean Air Act Amendments require the Com-generating capacity and 26re of the Company's generation during pany to make payments to state environmemal regulatory agencies the last three years and has the lowest fuel cost of any of the to fund administration of certain provisions of the Amendments. Company's generating facilities. Wolf Creek's assets and operating The 1993 obligation will be approximately 51 million to fund the s expenses represent appr oximately 50ro and 20re of the Company's Mbsouri and Kansas implementation plans. total assets and operating expenses, respectis ely. Operating See Note 3 to the Financial Statements-Emironmental Matters-expenses dering the last three 3 ears at Wolf Creek induding for discussion of costs of compliance with emironmemallaws and normalized outage costs, has e increased at a rate greater than regulations and a potential liability, u hich the Company believes is inflation and the rate of increase in total other Company expenses. not material to its financial condition, for cleanup costs under the Curremly no major equipment rep!acements are anticipa ed and Federal Superfund law. l
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KANSAS CITY POWER & l.lGIIT COMPANY Energ3 Polic3 Act of 1992 The Company's capital structure at Decemb r 31,1992 p. ;!ud-On October 24,1992, President Bush signed into law the Energy ing current maturities oflong-term debt) consisted of 48.5% com-Polig Act of 1992 (Act). The provisions of this Act hase created mon stock equity,5.2% prefened stock and 46.3% lortg,erm debt. many opportunities and challenges for the Company u hich is The Com;3anyi goal is to maintain a capital structure in w hich the cominuing to study and eva!uate the effects of this Act on its percemages of common stock equity and long-term debt are operations: approximately equal. The Company currently uses an acceleraad depreciation method
- The amendmems to the Pubhe Utih.tv Holdinc Company Act for tax purposes. The accelerated depreciation on W. lf Creek plant o
(PL.HCA) ru..l simplif the organization of m. dependent 3 has reduced the Company.s tax payments during the last three years power producers (called exempt wholesale generators (EM.G)) bs appro(imately 530 million per year. Accelerated depreciation on encaced exclusn.elv in generating electneny for sale at w hole-Nolf Creek ends in 1994. sale. The Company is currently imesticatine the possibility of comtruction and operation of an Lu.G;. See N.ote 3 to the Financial Statements-Tax Matters-for discus-sion of the Compam,s federalincome tax returns ior the years 1985
- The Act allows FERC. to order, upon appb. canon, access to through 1940 which are presemly under audit by the Internal unlity transmission facib..
. ues. Ahhour. he Compam already nt Revenue Sen Ac. prosides such transmission service. the Company recentiv In order to take adsantage of the potential benefits mherent m filed an open access transmission service tariff for approtal a larger energy sy; stem, the C,ompany micht incur addinonal debt and or issue addinonal equity to finance system growth or new
- 1 he income tax rate on external nuclear decomm.issiorung grow th opportunities, through business combinations or ether trust funds has been reduced and certain investment restric-msestments su;h as an exempt w holesale generator.
tions for the funds have been removed. These changes could sase the Company as much as 51 million in centributions to Mw Accounting Mandards the fund per year. A special assessment against utilities with Fnancial Accounting Standards Board (FASB) Statement nuclear plants was established for future costs to decommis-No.106 Employers' Accounting for Postretirement Benefits Other sion and decomaminate the federal uranium enrichment f acil-Than Pensions-issued in December 1990, establishes standards of ities. This assessment to the Company wil! be approximately financial accounting and reporting for the Company's medical and 50.7 mt!! ion per > car for 15 years. A 510 mi!! ion liabihty and life insurance benefits provided to retirees. FASB 106 requires, corresponding regulator 3 asset :iave been recorded on the among other things, that the cost of providing these benefits be Balance Sheet. recognized as a labor cost over a period of time prior to the
- The Act mandates f urther studies of the potential heahh employee's retirement rather than after the employee retires. This ef fccts from utilizmg Y..cca Moumain as a site for a high Statement is effective for fkcal years beginning after December 15, loel nuclear waste storage facihty and of the effect on the 1992 and will be adopted by the Compam in 1993. The current emironment and human heshh of greenhouse tases and to el of these benefits, w hich is collected through rates and charged electromagnetic fields.
to experne as paid (pay-as-you-go), is approximately 51 mil l ion per
- The Act established a wide range of programs to foster and year. The accumulated postretirement benefit obligation (transition encourage the efficient utilization of resources such as obligation) under FASB 106 was app:otimately 524 million at electricity, including provisions targeted at dnelopment of December 31,1992 and will be amortized over 20 years starting in electric vehicles.
1993. FASB 106 requires yearly accrual of a service cost, amortiza-tion of this transition oblication, and interest on this obligation. Cap. ital Requirements and la.gmdits .The 1993 net increase to expense will be approximately 52.4 million The Company current!y estimates that n will be able to meet the (51.5 m.l: ion af ter tates). i proiected construction expenditures throuch 1991 and a s.!cmficant portion of the remaining years with imernaH -generated funds. It is 3 anticipated that funds for maturing debt and preferred stock through 1997, including preferred sto.L and long-term debt sinking fund obligations, totaling 5:39.9 mi!! ion wiu be provided from operations, refinancings or short<erm debt. As of December 31, 1992, the Company had 5311.0 million of registered but unissued Medium-Term Notes as well as unused lines of credit of 5175 million. Uncertainties u hich affect the degra to which these capital requirements will be met with funds provided from operations include such items as the effect of inflation on operating expemes, thelevel of Lwh sales, regulatory actions, complian:e with future environmemal regulations, availabihty of the Company's generat-ing units and the leve! of bu!L power sales with other utilities. h
KANSW'. CITY POWER & LIGilT COMPANY Suanmar3 of Operations and l'inancial Data Summar3 of Larnings 1992 1991 19M 1989 1988 1982 Operating Rcrenues (f##6 / 5 802,668 5 825,101 5 S15,570 5 790,216 5 791,650 5 525,766 Operating Erpense.s (Ours/* 662,094 653,793 _ 631,243 __ _602,685. _ 61_l,406 447,843 Operating /ncome ((UT3/
- 140,574 171,308 184,327 187,531 180,244 77,923 Other/ncomeandDeductionm#V6/
- 3,163
_ _ (906) f6,359), _6_,477 _ ____15,267 _}6.0L IncomebcforcInterest Chagc5 6(#6) 143,737 170,402 177,968 194,008 195,511 113,949 Interest Chages ((06) 57,403 _ _ 66,509 _ 75,236 85,390 _ 89,856 _ __ 33,008 Net Income ((((Ps/ 86,334 103,893 102,732 108,618 105,655 80,941 Pnferred and Prcference Stock D!iidend Requirements (((#6/ 3,062 6,023 6,360 6,359 6,681 18,193 Applicab/c to Common Stock ((K(Tsj 5 83,272 5 97,870 5 96.372 5_. 102,259 5. 98,974 5 _62,748 Arcrage Sharcs Outstanding" 61,908,726 61,408,726 61,899,526 61,854,514 61,878,398 45,020,736 Dirnings per Common Sharr" 5 1.35 5 1.58 5 1.56 5 1.65 5 1.60 5 1.39 Return on kar-end Common Equity 9.N ro 11.4r0 11.3ro 12.2 ro 12.2r, i j,7r, Cash Diridends per Sharc'* 5 1.43 5 1.37 5 1.31 5 1.25 5 1.17 5 1.00 Capitalization Data ((KXfs)"* Common StocA L uity 5 K53,924 5 S60,229 5 851,282 5 835,917 5 810,801 5 535,192 7 Pnferred Stock 5 89,(MM) 5 52,000 5 92,000 5 92,000 5 92,000 5 112,000 Pnferred Stoc k (Redecmab/c) 5 1,916 5 2,076 5 2.236 5 2,396 5 2,556 5 56,316 Pnference Sun k (Redeemable) 5 - 5 - 5 - 5 - 5 5 50.000 L ong-term Dcht S N14,709 5 822,680 5 850,409 5 918,654 5 992,897 5 767,616 Other Data and Ibtios Construction Erpenditunu (((#6/ 5 129.559 5 122,447 5 92,558 5 103,169 5 95,022 5 153,160 + Total Assets (((k6) 5 2,646,923 5 2,615,039 5 2,598,h59 5 2,620,826 5 2,647,415 5 1,792,227 Book l' !ucper Share" 5 13.79 5 13.90 5 13.75 5 13.50 5 13.10 5 10.98 a Common Stock Equity Ratio 49.3re 49.9r, go,;re 46.;r, 43,9re 36.Oro (()(FlfffQff bl()[k ffj((*
- High 5
24', 5 23'; 5 18 5 184 5 16% 5 9% Low 5 19% 5 17% 5 14% 5 144 5 12% 5 74 Ratio of Dirnmgs to Thed Chaves 3.12 3.22 2.96 2.92 2.75 2.62
- Reclauifications hase been made to prior year amounts to conform with current year presentation.
" Prior year amounts have been restated to reflect the May 1992 two-for-one co.1 mon stock split.
- Capitalization data includes amounts to be redeemed or purchased anJ current maturities.
A ecDe i
KANSAS CITY POWER & LIGHT COMPANY Electric Statistics I'lectric Sak s htatistics 1992 1991 1990 1989 1988 1982 Revenua (000'sl Residential 5 258,124 5 291,579 5 273,0S0 5 255,913 5 266,745 5 160,364 Commercial 351,024 355,750 347,087 332,150 326,716 203,904 Industrial 118,389 114,979 112,999 110,413 112,699 86,953 Other . 14,316 14,193 1_4,035 _13,971 _ _13,716 9,702 Total retail 741.853 776,501 747,201 712,447 719,876 460,923 Bulk power 48,058 35,839 52.862 57,209 55,114 40,137 Other sales for resalc _4,319 _ _. 4,535 _._ 4,756 5,174 _ 4,826 12,631 Tota: 794,230 816,875 804,819 774,830 779,816 513,691 Other elec'rie res enues _ 8,438 ._ 8,226 _ 8,093 ._ 7,93_6 _ 3,652 2.24_8 Total 5 802,668 5 825.101 5 812,912 5 782,766 5 _ 783,468 5 515,939 Sala in Kilowatt-hours (000's) Residential 3.172,611 3,613,751 3,334,828 3,165,473 3,251,764 2,378,647 Commercial 4,944,285 5,072,586 4,871,569 4,699,160 4,554,053 3,339,673 Industrial 2,429,883 2,294,734 2,213.465 2,162,396 2,229,379 1,959,431 Other 72,129 _ 71,l_98 71,694 72,075.__. 71. 539 ___ _.68,282 Total retail 10,658.908 11,052,269 10,491,556 10,099,104 10,106,735 7,746,033 Bulk power 2,940,905 1,945,182 3,187,751 3,528,919 2,841,579 1,515,852 Other sales for resale 102,971 109,327 113,799 120,509 113,605 _ 325,997 Total 13,702,784 13,106,778 13,793,106 13,748,532 13,061,919 9,587,882 AverageNumber of Customers Residential 365,069 362.878 359,875 356,609 351,199 306,756 Commercial 48,522 48,042 47,551 46,857 46,316 40,065 Industrial 2,328 2,372 2,400 2,452 2,479 2,476 Other 133 134.__ 132 133 _ _ 132 _ 131 Total retail 416.052 413,426 409,958 406,051 400,126 349,428 Bulk power 24 23 23 22 22 20 Other sales for resale _ 12 ____ 12 13 12 _ _ 11 ._ 13 Total 416,088 413,461 409,994 406,085 400,159 349,461 ^L ResidentialSales Average kwh per customer 8,690 9,959 9,267 8,877 9.259 7,754 Average revenue per Lw h-cents 8.136 8.069 S.189 8.085 8.203 6,742 Load Statistia Generated (net)-L w h (000's) 13,416,669 12,922,963 13,836,091 13,764,615 12,706,839 9,138,284 Purchased-kw h (000's) _ 924,107 _ _ 880.545._ _ 675.507 _666,827 1,05],228 987,065 Total-kw h (00(rs) 14.340,776 13,803.508 14,511.598 14,431,442 13,760,067 10,125,349 Maximum net hourly demand in megawatts-Winter 1,687 1,674 1,680 1,829 1,573 1,315 -Summer 2,624 2,751 2,711 2,541 2,656 2,167 Net Fenerating capability in megawatts (summer) 3,089 3,090 3,048 3,025 2,992 2,774 Net capacity in megawatts (sold) purchased-summer 306 231 186 81 36 B!u per net Lw h generated 10,632 10,637 10,774 10,674 10,797 11,138 Numberofemployen December 31 2.782 2,881 2,857 2,873 2,863 2,957 December 31-Adjusted' 3,181 3,276 3,243 3,251 3,214 2,720
- Excludes employees alkeated to other participating companies at 12 Cygne and latan stations and includes employees alk>cated from Wolf Creek, l
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- K ANSAS CITY POWER & LIGliT COMPANY Compan3 Officers
- DRUE JENNINGS,46 f RANK L. BRANCA,45 TURNER WillTE,43 Chairman of the Board Vice Pasident-EUmer Supph' Vice President-Communications &
s and Pnaident 1989 hh:rketing Cil ARLES R. COLE,46 BERNARD J. BE AUDOIN, 52 Vice President-Customer Senices JOHN J. DI.STEfANO,43 Senior i ur President-1inance and lho Tirasurer yg 999,, 1989 Cl ufl'inancial Officer Vice President-Envimnmentaland JEANIE SELL LATZ,41 SAMUFL P. COWLEY,58 Research Senices Corporate Secretary Senior Vice l'residem-Corporate A[ fain 19M 1991 und ChiefInal Officer M ARCUS JACKSON,41 NEIL ROADMAN,47 jg77 Vice President-Amer Production Contmiler RONALD G. WASSON,48 1939 1980 WILI I AM 11. MILLER,58" M ARK C. SHOLANDER,47 a hc Vice President-1fuman Resounts General Counsel jgg3 1980 1986
- l..isung includes age, title and year promoted to officer.
l
- Mr. Miller retired, effecuve l
Irbruary 2,1993. Board of Directors DRUE JENNINGS* W. THOM AS GRANT 11 DR. LINDA 1100D TALBOTT Chairman of the Board President and Chici becutive Officer, President. The Clearinghousefor and Pnsident Seafield Capital Corporation Ahdcontment Itmndations - diventfied in suramt, financial and -information eschangefor WlLLi AM i1. CLARN* !aboratory services company philanthmpic activities President, I 'rban Iraeue of ~ Grrater Kansa City GEORGE E. NETTELS. JR. ROBERT H. WEST * -community sen ice apemy Chairman of the Board, Chairman of the Board and Chief Ahdwest Ahnerah, Inc. Etecutive Officer, ROBER E. J. D1NEEN* - construction mineralpmcessing Butler A!amtfacturing Company President and Chief Executive O[fic er-and ciuarry opemtwns -supplier of non-trsidential building The Afarley Company President, lanipa Resource systems, specialty components and -divenified mamtfacturmg A uociates, Inc. construction services and service company -mined land reclamation operation AR1 HUR J. DOYLE* GEORGE A. RUSSELL Retired Chairman of th? Board Pnsident, University ofAlissouri
KANSAS CITY POWER & LIGilT COMPANY Corporate Information SH AREliOLDER RELATIONS DUPLICATE MAILINGS lORM 10 K For shareholder information or assis-If you are receising dupheate mailings, Copies of the Compan3's 1992 annual tance with your account, please call or your stock may be registered in different report filed with the Securities and write the Shareholder Relations ways. For awistance in consolidating I;uhange Commiwion on Form 10-K Department at the address below. your accounts or eliminating duplicate will be prmided at no charge to any Kansas City Power & Light Company mailings, please contact United shareholder or beneficial on ner of Shareholder Relations Department Missouri Bank. shares of the Compan3's stock upon " "I """ '"4 ""*' I" P.O. Box 415679 INVESTOR RELATIONS Kansas City, MO 64141-9679 Members of the financial community .icanie Sell Lati 816-556-2053. seeking corporate information may Corponite Secretar3 CHANGE OF ADDRESS contact lmestor Relations at Kansas Cit) Power & Light Co. To report a change of address, use the 816-556-2312. P.O. Hos 418679 anm Ch3, MO W146W form attached to your dividend check TRAN5FER AGENT AND or send written notification to Share-STOCK REGISTRAR holder Relations. For Common and Preferred Stock DIRECT DEPOSIT OF United Missouri Bank, n.a. DIVIDEND PROGRAM Securities 1ransfer Dhision To have your dividends deposited P.O. Box 4HM4 directly to your financial institution, Kansas City, MO 64141-0064 contact Shareholder Relations or 816-860-7786 United Missouri Bank for an enrollment form. 1MO.Yl:AR COMMON STOCK lllSTORY I The Company's common stock price range and dhidends paid per share were as follows: 1992 1991 Dividends Paid High low liigh Low 1993 1992 1991 Quarter j First 23% 19% 18s 17 % 50.36 50.35 50.335 Second 22M 20% 19% 17% 0.36 0.335 Third 248 211. 22 ; 18% 0.36 0.35 Fourth 23 S 21% 23 % 21 0.36 0.35 A!! common siwk daw n ficcis the tw& for-one spht of common stock on May 29. lW2. EXCHANGE LISTING AND SlOCK SYMBOL PREFERRED.TIOCK DIVIDENDS Common stock is listed on the New Yor k Stock E>, change (NYSE) Quarterly dividends on Preferred Stock and the Midwest Stock Exchange, were declared in cach quarter of 1992 and 1991 as follows: NYSE Ticker Symbol: KLT Cumulative Preferred Stock Nu nber of Common stockholders: 31,687 at December 31,1992. Sen.es Amount All dividends paid by the Company in 1992 were determined to 3.80ro 50.95 he dividend income and no portion was considered 4.00ro 1.00 a return of capital. 4.20re 1.05 4.35 re 1.0875 4.50ro 1 125 i O
K ANSAS CITY POWER & LIGIIT COMi%NY 2 GENERATING CAPACITY AND Tile MOK AN POOL The Company's 1992 total available capacity was 3,395 megawatts, induding 3,089 mw of installed generating capacity plus 306 mw of net capacity purchases. Its 1992 system peak load was 2,C4 mw and resuhed in a capacity magin of about 22.7%, the equivalent of a reserve maqin of 29.4%. In addition to being a member of the Southwest Power Pool, a regional reliability council, KCPL is one of 11 members of the MOKAN Pool formed in 1%2 to share reserve capacity, coordinate planning for additional generating units and expand transmission lines. Transmission connections with numerous utilities in Missouri, Kansas, Nebraska, Iowa and Minnesota enhance the Company's system reliability. Kansas City is a Ley cemer in the interconnected system which enables regional and interregional bulk Imcr transactions among electric utility systems. I i l i l w eC3e
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