ML20116N732
| ML20116N732 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 12/31/1984 |
| From: | Doyle A KANSAS CITY POWER & LIGHT CO. |
| To: | |
| Shared Package | |
| ML20116N716 | List: |
| References | |
| NUDOCS 8505070328 | |
| Download: ML20116N732 (32) | |
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8505070320 050503
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ON THE COVER TABLE OF CONTENTS Bathed in the gold of an eastern Kansas Financialand Statistical sunrise. the Wolf Creek reactor building
- Highlights symbolizes the bright future which nuclear energy will share m meeting the latter to Shareholders 2*
electnc service requirements of our Welcome to Wolf Creek customers. The plant, now undergoing ,
final tests. is scheduled for commercial Financialand Corporate Review operation by late summer. This annual report features a status review of Wolf Report of Operations 91 Creek-the largest investment in produc- Kansas City Pursues tion facilities in Company history. Wolf its Destiny 12-1 Creek willbegin supplyin:t electricity t our customers in the midst of unprece- F MS m m W2 dented levels of business expansion and Management's Discussion and commercial construction in Metropohtan Analysis of FinancialCondi-Kansas City. as highlighted in a special report on pages 1215. tion and Results of Operations 24,2 Supplementary Financial Information 26,2 Eleven. year Summaries of Financialand Selected StatisticalData 28,2 Stockholderinformation 3 Board of Directors and Officers 3 The Company 3 1985 ANNUAL MEETING The 1985 Annual Meeting of Stock-holders is scheduled for Tuesday, April 23,1985, at 10.00 a m., in the 4th floor auditorium of the Company's ofhees at 1330 Italtimore Avenue, Kansas City, Missouri. Shareholders of record on Abreh 4,1985, are eligible to vote at the meeting and will be mailed a notice of meeting, proxy statement an.
form of proxy.
CORPORATE OmCES 1330!!altimore Avenue Kansas City, Missouri 64105 (816)556 2200 This report. including the financial
. statements contained herein. has been prepared for the generalinformation w .
shatehdiers of Kansas City Power &
Ught Compmy;and is not intended tt induce. or for use in connection wah, any sale. offer for sale. or sohcstation at an offer to buy.any securities of the t
Company.
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. FINANCIAL AND STATISTICAL HIGHLIGHTS I%rcent increase 1984 1983 (Decrease)
Total operatmg revenues i(XXhl $ 583,414 $ 562,543 3.7 Larnings available for .
common i(XXh) $ 129,524 $ 104,911 23.5 Average number of shares 28,887,407 25,278,388 14.3 per common share: )
Earnings $ 4.48 $ 4.15 80 t hs idends $ 2.33 $ 2.17 7.4 Ikiok value $ 25.29 $ 23.53 7.5 Net Af DC* $ 3.74 5 3 03 23.4 thudend p.nout vi,1 52 52 -
Gin truction expenditures ,(XXh' $ 277,072 5 182,547 51.8 Electue and steam heat planti (XXhl $ 1,332,177 5 1,362.537 (2.2)
Gm truction work m progrew ,(XXhl $ 1,315,418 S 959,423 37.1 Retuin on veJr end common equit v ("n' 17.2 15.7 9.6 Cepitalization i o" totall Common equity 37.5 39.5 l' referred .ind preference stock 11.0 12.7 Long term debt 51.5 47.8 Scl;cted Stati% tics Kilowatt hour sales i(XXh' 8,807,576 8,736,379 .8 peak load-summer ikw1 2,297,000 2.324.000 (l.21 l'eak hud-wmter ikwi 1,388,000 1,43MXX) i33' f uel mis /\.'
Coal 98.2 97.2 (hl .5 7 Natural gas 1.3 2.1 Ascrage fuel cost
,5 nulhon Btut $ 1.491 S 1.53; l2.9)
Numher of emplovces 2,8 38 2,939 13.41 Number of stockhoklers 53,324 53,445 1.21
' Ahante for fund u ed dunng constmction net of amuted deferred income taset 1984 IN llRIEF e wolf Creek construction urtuallt = Generating units set availability and colnpIeted- receipt of low pok er efflCienCY records lit eiise f rom NRC now espectett = Liectric heat connections nurpass c.ub .itarch l98, nurketing goals o Rate requests mdude alternative four-
= senior management reabgnment
\ ear pilJse lfi Jfid redliced resti!ClltlJ! g,g. g.
electne space heating rates
.Wh'ri Oforiipain establhlles IllifildnitarfJn excecils $2 giHion lunit and Ascrage l'.n I'l.m
To OUR SHAREHOLDERS F rom the corporate viewpoint- Costs. When commercial, the Compant dramaticallt improved en ranne or that of the dvnamic territorv we will need Missouri and Kansas retail resuhs at our ba cload ual tued pLmts i.erve-1984 was a year of growing rate increases of about 5287 million. or Average utiit availabilite euceded .' 0 ;
excitement.The fever of enthususm about 52% incluJmg about 5100 md- a 12.vear record-wcll above our 7E for the future of the Kansas City Met. hon to cover the athhoonal tax burdens. goal and actual 1983 availabil tv of ropolltJn Area was fueled by a succes- As a one-time rate increase, that is not 72% ()ur total u stem lic.it rate. a mea-sion of new JnnotinCements of record ptibliClv or polltlCJlly acceptable. In ure of Unit operating efficienCv. Nb ConstrilClion and revitall!.ltion. Com- Current TJte flhngs, the Company has the best smce 196E With record high mercul arkt indthtrial proleCis Linder- proposed as an altern.ltise, a fourTear unit availabihtV a low heat rate and Alv, on drawing boards of planned flow phase in of some 53;0 mdimn of rate relatnch low wal co t* our 1984 ott c\cect! 27 million sqtiare feet. Maior increases on a schedule of about 25"o m mtem hourly mien hance sales to concentranons of thn estimated over the first year and 14"o,8on and 5"o m other utihties were double 190 letch
$2 bilhon of priate capital develop- each of the following three vcars If and an all time high. T hese remarkaNe ment are in downtowll Kansas City Jnd accepted the Company has committed 1984 results wcre accompinhed at sliblirbJn Johnson Countv. Kansas to a moratonum on anv additmnal rate lower operating and mamtenante w ts Oltr corporate pulse aho (Knc kened increase cffectne dunng tlut phase-m tw fewer emplovces workme with less a% Wolf Creek construction progressed period. Our ute hhngs base engendercJ overtime, as compared to 19s3 aihi wJs virtuJllv complete bv s car end oppihition from severJl new Inters enob Allt Kipating t he need f or greatet 1984.We eXpcCt to recene eJrly next Kecognl:Ing that even the phased- tic \ibiht v in annual coal supphe af ter mont h. March 196 it s low-power oper- m rates woulti have a ,enous atherse Wolf Creek n on hne and concerned tlut J!ing bcense f rom the Nuclear Regula. impact im our trulv needy customers. Congre s might aJopt 'aud ram' legola toIS Commission ant!Illello.hling hill our lloard has authori:ed the estab- tion our purchawme llepartment in 19s Ulmmence shortiv thereatter With a inhment of a ilumanitanan Fund to took a hantace of a presaihne sort sn month schedule from fuel had we help our indigent customers w ho qual- marka in low sultur aulin wwmn e ilow c\pect Wolf Creek to be feath for ifE avoid dbcontinuance of electnC pow ler Rnerliasin b\ le tructunni d commercial opeutmn (W late summer. SerWce IW pJvmg up to half of their cut or ot.r coal supph wntutts l'nder At this time.ue know of no reason w hv dehnquent electne bills The Com- the new inanecment the deinered ou tilJt sclieduIe is not Jchies able. panti annual contributions. to be made costs o Haw timrn and Wnno es u ah houch delau Coutd occur d on ng test. from stockholder funds wdl be based tions lus e been reduml and uruHe mg or from pohtical or ot her events on he amount of ute mcrease gunted .innuah unoties of hm sultur oul uill bevond the Comp.mn, wn:rol and couhl aggregate S IO mdhon mer a be.iudable for ihar opcunon tinouch We believe here n reason to sav: 10 year period. ~T he Compant w ill 1999. We iiow hase in plate long ta m
' Wolf Creek is one of the betttI nucicJr Cncourage other pnute and pubhc wn- cont uc t s w Mh c\ptunon dato non powcr prmects m thn Nanon?Its deugn inbutions to the iund w hich w ill be 1996:hrough mu tor loww*t wa! tm h.h been JdoptcJ in ihe b.isn for i ng- .htmmistered bv an independent char- c.h h of our baschuJ wal tocd umt .mJ IJihls flht prcssuri:cd hght w ater reac itable organi:ation cucpt la C\gne nint I w hh h h.i an tor. Its wnst ruction pt riod ot 94 months As of lanturv 1.19M KCpti rates operatmg wet suuHs r all thos unn-h one of the sliottest for wntemporarv here about h"o belliw the Jser. ige of M wIllIn IC be supphed with low u!!U notlear umt bemg buih m thn countrv large U 5 metropohtan areas ened by aultromihe powda Rner Ba m thu- 1 and its dirrentiv estlm.if ed wst of less regtlIated CIcLinc tittlities As ures of hopt tulh asoidine t he imp.h t ot .u, l tilan b2 NIO per kdowatt h well below some of thee of ber Mtems mGease. ' add r.Un"leghlanon (betr aveuge Wst Irankh.we b.ne a our alreadv f.nouble companson n Wnh Wolt Cru L tueme ur , o ,
grcJt deaI nt pnde m WoII freck. c\peded to impune shghtiv befof e our our ettident Out tned up.ian duoni l Imt ulk. u w di proude about Is"o Wolf Creek ute mcreases bewmc on peak penods and the.n.nlabin to of our etem apaan .md ,ome 2% cffectne later thn scar ~1 hereaf ter. our etem of lower w t an non ,
to.Do of our t thtomCti annlul KCpti cIednc utes are c\pC(ted to be mentalh .lacruHe uul ihac hou'd l C!ctinc energt nCeds Nuclear and uul- and remam abme-but not far abme be den gre. net opport umth tm o't ined capaan. plus t he ticuNe long that metropohtan .ncoge untd the etem sales bs ACpl p.unt utu h a ih l unge opnons ullul for m our early 1990s With our long term nuclear upacitv nurems of nachbonne unh l KCI'LAN. w ill meet our untomeri fuel wsts stabih:cd at less tlun lulf the ticuhunk dunne the not deul u.u- '
growlug reolltfernents (linHIRh the Illin dirrent cost of t!cIncrol coal titir Oct alhe t'l tile CJilV.n.nlJI"Ilt s n't of the conton w nhout wstiv new stuibes mdware ilut begmnme m the n.noul ca .md it In tonc low u t m gdk ut tne ( .lp.h lt s addilit ith carh l990s. NCpli rates w ill ret titll hl pl
- ef s h C alCa CICL t r h it s N TpIh d With l'Wir b.n file bedi pudllbital once JgJin beltiw that IUCtitipeditail the sp.h C liCJt file requitemcut sit i9i!\
m our utes dunng Woll Crecki ught. .neuge and st.n below toi ihe E.ot out ontoma poor to losi \
sc.it wnstrut tmn almost a third ol our rcnutnder of the tentun. ucmlh.mt upt uni m los al h i.L ' d bl -l bdth Hi sb.tre lif it % till.ll t ost k 11! dllCr sdeu! s eah ist dCdh ated t(Hblith !H Hi ut bh I tv tilh d 'l' t: 4 h pit w nt ihe urn mg (lurges on our cfforts lw our empimec m wtCm .idhnon of the lutlh t numbo . t nw I'"u slurc ot its labor and nutetul power Opeutions 1951 produmi t u tomen m .' i s C.u l lu nk t o r n.
i The AT&TTbwn Pavihon begins to takeits place in the -
Downtown skyline as viewed
^
from the 29th floorof the .-m - .
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i marketingeffortsof ouremplos ces m m _ e" -
Commercial Operations. more than 20"o ,K ~4- - 4 .gg{ , **
, y of the new residentialconnectswereall elect ric. lly s car-end 1984, more t han I
- t. .
li g
U }r an of the new maior commercial proi- it ecis announcing heating system prefer-ences had selected electric heating.
s g3 "Ql j Totakeadvantageof thistrendand ' * ,
) because ou r systenn inc remental ene r- i o pnductmn costs will decrease with f v.
~
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j We!f CreckiIow er nuclear fuel cost. the [
- Company has requested. in it s Miwouri g~
! .ind KJnsas rate filing % Jpproval of re- . l%
, ducnons m our residennal space heat-mcrates to3 2;c er
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r kw h from the cur- ) 4 rent 34?c in Missouri and 3 '4c in K.m- yed ,
M sas T he.hhhtion of electric space heat-mg an ott peak w mter load. w di imprine .
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[5 8 4 l Dur annual ss stem load factor and resuh gg m.3, i m biwer rates for all our customers March 19s4 challenged our emplov- The Compami 1.900 bargaming tions from net AFDC wcre S3 '4 and 1 ces in Transmiwinn& Dorribunon umt emplovees represented by three $303 in Mas 1984 the lhurd mcreased Oper'atiolis I her fJced alhi met that II4.W Loc.ils contintie to mirk without the common stock da idend to S2 36
- challenge unh thstintthin. A devastat- cont ract s T he contract covenng the per share on an annual bass it wa the I
lilR tce stof m struck the breadth of our T A D emplovces terminated m 24th mercase m 26 scars.
- s stem athl knocked out eIectnC ser- October 19N2 and timse covering the with s3"oot our 19s4 reported I
s Re to Heath hJlt of our clotomers. llv CleriCJI alhI power plant empbnces earnnigs represen!Cd bs AIIK a tmn
.im me.lsure. the storni damage w n the espired last luh. L liitoit uitatelv. otir cash itetii our maiorconcern oser-l worst ever espenenced bv the Com- abihtv to teach a contract agreement shadow mgallcurrent accomph hments i p.nn. It put our storm Restoranon plan with cath of the I ocah now appears to and results a the need for siemtiant to a sescle test. Whde it took nme das s be tied to a pension dnpute w hich the and prompt rate relict rollow mg < om tt I restore all scis Ice. we are co!M illced locals h.ne put before the M RB and mercial operation of Wolt Creck. We flut the restoralloti w.ls Jn ollistanding the courts. We cJnnot piedict w hen or anticip.lte ihat w e w ill be put to the test i Ja omplnbment. T he Mlwoun pubhc how thn situanon w di be resobed. of prm mgandiusnts mgouresen l l \ M h e Colnmiulon. af ter linestiga- Wolf Creek concludes more th.m thought, act and expendit ure. F oi t hs l
) tlon, gase the Colnpain bleh niarks for tw o decades of large construction out- sake of lower rates m the short term our l Its testorallun citort. We Jre proud of Ln s for generatmg plants F rom a record regulaton mav be urged to apph retrr I t he performalite of our repair forces b277 milbon cash requirement in 1954, spect h e s own and second Rueu us and
{ alhi glatcrul to the publK w ho dn. our cointruction a budXcted to drop to thcu piedetcwors but we behesc w e
{ pl.ncd patience donng the ordeal With 5113 mdhon m 195;, S'9 mdhon m 1986 h.n e taken the correct course - one
! ome 21lx K)Imes down ue wcre Ss3 milhon m 1987 and S69 milhon m w hich will enable u to cononue to blcwed IhJt there wcre 110 electne.IIin- 19hM We e%pect toimance 198; require- pros Ide Jdeq tute athl t chable elet Int j luiics to Itur cn1plovees the respoikhiig merits tbrough asailable cre.ht lines scn n e to our c tatornen at the low est l ndd foices or io ehe pubht.u ho acre imm mternally generated f unds and f mm reasonable cost mer the long term I
nude anare of the dancer bs a constant common took nsued under our streant tit public safets inewages dBldelhlIcilnestment p!Jn Icituals2t)1945 Af ter a long cainp.ugii 1.nt fall. the hital 19s 1 kw h s. des were up lew f or the Board of threcton
.hwoun voters dcteated hv .m mer- than I"o compared to the rccord sdes ot u helming Iwo to one malgin J so- IVS3 donng h hh h the et onotmc l ullcd proposition 'If on the Nmember rctmcry surged md seasonal tempera s gM m non b.db a app,m a ihe m easure imes -,e ai C=mn i hanan sem r 'l uould h.ac.hhersch affected the Com m 1984 was mdustnal kw h sdes wint h N p.on s abihn to use its sh.ne of Wolf were up ll 4"o w nh contmoed unpone Clunman of the Bo.ud and hc Mcm l f u k I he hoposHHin was dogmsed ment m gent ral nunhtat tuHnt.hinin l
a .1 IJtc pn ttalit tu inc.htlic but w.n KCpl k per slule callllitRs in 195 I pubht h rcscaled as a rcterendum ut te S I 18 based upon .N o nulhon f m_, um uu, --, waam o, .~,_im,e ou, s,.ma m er ,,_
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,! WELCOME To WOLF CREEK i I
, Eunng 1984.Our %If Creek \
K t'pl filed requests for 52"b nuclear proleCt moved steadllv through to help mdigent customers auHd dis-increases in retail electne rates m Mis- l complenon of construction and preop- contmuance of electric senice bv pav. crational tests headmg toward commer- souri and Kansas to reflect the antici- ing up to half of the dehnquent bdl. pared conunercial operation of Wolf cui operanon by late summer. plant Annualcontributions bv KCplof 3 8 of Creek. The proposed rates are designed constructmn was virtuallv complete bv one percent of equivalent "one-time" to produce 5287 million in additional sear-end. The NRC is expected to issue authon:ed Wolf Creek rate mcreases m earlv March a low-power heense for annual revenue in the first full Year i subsequent to the effective date of the wdl be made fmm stockholder funds , Wh Creek. w hich w ill enable fuel The contnbutions will bexm when the
; lodding to ConlmenCe. Its planned con- increases. This total includes a S195 mcreased rates go mto effect and w dl i tuillion revenue increase in Missouri struction schedule is the shortest for :ind $92 million in Kansas. contmue until a total of Sl0 milhon is UticleJr plant s currentiv bemg built. reached or 10 s cars lias clarsed.
KansaE first Hic}cJr p} ant, Jn 1.150- T he %If Creek rate mcreases are y mu unit. is owned bv KCpt and K.msas g expected to push our residential elec- 'j C,as and llectne CompJnv. cach h ith a j tncity pnces shghtlvabme the national i r% hare and K.msas Electnc power . aserage for metropohtan cines ontd Cooperante. Inc. with the renuming ' the early 1990s At that time. our rates i 6"o. KCpts share of the planti net are projected to drop back and stav capacitv athusted for stat ron require- .\ below the aserage for the rest of this IUents is 325 mw. F p s q,
' centun: A lanuary 1985 surver placed "f y k ' Sescral nulestones nurked %If Crecki construtnon progress m 1984
[, Aii our residential bilhng for 750 kwh at S;4 08. about h"o below the 558.75 and carh 1985 /g 3 ?< , s average for 51 large U.S. metropohtan areas. For the same companson a vear i Atonne Safetv and Licensing floard _- - I apprm.d of the Emergenct Shcher and ~I ' ago KCpti bill w as 3"o below the aver- ' Esacuation p'an came in luiv. T be NRC ' age. The suner meluded cities with l ) anewed the plan in Nmember during a / populations of about 2500m or more j f Ull sc.lle d!ill and simulauon i4 cmcr- sened bv regulated utihnes-McHcv conditlons at the plant site. N- , i
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Initial conclusions indicated the plan 7% . " W olf CreckhCapacitv wdienable l }
,' our baseload generatmg n stem to meet I kof ked smoothh and with no uolanon - !
or serlotis deficiencv. ' ' I customerielectne demands w ith ade-Successful completion of the last quate reserve margins through the earlv in order to case the unpact on
- three maior preoperanonal milestones 1990s Current long-range plannmg customers from the higher "one-time" durmg 19sa pases the was for fuelload indicates no need for new generatmg increases. the Compant has proposed capacitv additions untd atter the vear and low pow er operanon They I an alternatne four vear phase in of Mn meluded tests to contirm the mtegnts those propmed rate mcreases. Under or the reactor sewel and priman Elf Creekk low energt cost this option, rates would increase about j
coo}Jnt loop. to check out plant sys. enlunces the opportunitt to improvi-2;"o in the first year. producmg 5144 j- tems under operating temperatures Jnd our system load factor bv supportmg an mdlion m additional annual resenue, piewures.and to sents the abihtv of Subsequent increases of about 14"o.or expansion of tile winter electric heating tile coiltJmnlent buildmg to u ithstand 597 mdhon, would become effective load. As a funher mcennte for pcten-i high mternal pressure. tul heatmg customers we base pro-the second tear. 8"n, or 563 mdhon the 4 Aho dunng the s ear. 38 reactor pmed a reduchon in residentul electne
- third, and 5"o or S46 milhon in the last operators completed extensne NRC heanng pnces m Miwoun and K.msas i vear. If the propo ed phase-in plan is required trainmg. successfolk pawed to A2;c ku h These rates are presentic accepted and such rates are pernutted strmeent NRC administered test and to bewmc effecove the Compain has 3 4'c m Miwoun and 3 ac m Kansas were ht eilsed to operate the planti publia comnutted to a moratorium about lult the nomul residential rates icas t nr. The asailabihts ot Llt Creek and o" other rate mereases during the four-on the cunent construenon sche- scar renod. our most etticient coal t'ned mut to dule, the Compam i estmuted cost is meet our baseload a stem energs
) Two other custotner progranis hl.4 bilhon, including the allowarac for requircinent s w di prm ide additiona! j were aho Jewloped bs KCpt m 1981 tunds u ed dunng construttmn 1he operatmg econonnes bv nuk mg .n.nla An Ascrage par plan implemented m ble t he capacitt of lower cost coal f ued l Pl.mt s etmuted tool cost of about
- Aucust. penmts residennal t ustomers S2 9 bdhon or lew tlun 52 6no kw, to pac electne bdh based on a rolhne umts for mtennedure loads su mes m I wmpares famrabh w nh the mdustn t ustomer usace p!.umed or forced out 12 month.ncraec Aho m Apul the JkMee or about 62 900 kw for nuclear poard autbori!cd .i iIHm.unl. nun l Und aces and mcreased ott e stem mter I piants currenth under casiistruction c!ungC sa!c' l
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l FINANCIAL AND CORPORATE REVIEW i l l E lectricity sales in 1984 exceeded placement of $25 milhon 7 year bonds the previous year hv .8% with customer continue to indicate intrea ing builder }i usage as folkm s: 13.5% series in October; and $25 mil-support for electnc hear mg u stems. i Eusti honn mao hon of 7-vear bonds 13.48% series m During 1984, a special New Home i i October as collateral under a loan i 1 " ino ca e agreement wnh twu foreign banks. Seminar was successfulh piloted with to.sa 19e txuca a the Home lluilders The workshops xc iacnoat mwn A totalof 590 million in floating i Commer-
! 'i9 x .n rate monthlv denund pollution contnd focused on energt efhcient bmkime techmques heat pumps and high etti-inNmal other
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.vo on0 .n m 10 ai e revenue bonds was sold through the City of 11orhngton. Kansas,includmg ciency apphances and are bemg con-tmued in 1985 S40 million of Series 1984 issued in unAt oom s uw0 x October and S;0 million of Senes Customer sunevs show that improved homeow ner awarenss or :he 198411in December. Ikith nuture in :
The resniential dechne is attnbuted benehts of electne heat resulted nom i to milder sununer and wmter tempera
- 2014. New stock issued thmugh the advertismg and mfornunon rmgrams t tures in contrast to weather extremes Dividend Reinvestment and Stock mcludmg Company di plau at home
{ espenenced in 19S3. hales to mdustnal exhibinons A spect.d Emrer sale
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i customers continued to follow an uP- advertismg camp.ngn drew wide prcad I tum in the hical manufacturing customer attention to speual clet tut I l econonw. , heatmg rates i t 9 9
- Impnwed kwh sales, rate mcreases l For the second consecutne scar cffective in mid.1983 and the allowance , , the nwketing rrogram ha, cuecded it-i for funds used dunng construction , , , e i goal of electne heat connec tions w uh a
! were reflected in the Company's ! revenues and camingC 1984 total of 2.101 wcllabmc the 140 ! l g target. Of these. I '81 were new home i g e ' [e e s n Inou e Jnd JpJTtmerit in fa!!Jtion and 323 JN IN t wo# 4 . k represented replacement o tem tor m 'a""x - eusting dwelhngs l tES$ay S " $ T he wase et new commtitialand for sommon tesidennal con truction m the nwoo ( moc TI ' ej politan ared contnbuted to 4' ink of 5129 U J 51n1911 j LJf mnD [Yr 23 ; Y Q #" M j W y -. new load m 19hl mcludme b ; nns of wmmon hare 5 J Js 5 4I; sn \], { [ glgg((Jg f)gjggg \t'ah a eletni.n to
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;cr hare i iN 5 A ni 23 4 date of heatmg e tem fot le than half of the 27 million square lett ni 1
Continuing inCrCJses lit the amount mJior commercial prolet ! inh'h s d in ! of construcnon work in progress and Purchase Man and Employees stock the current buildific boom eketrit heat higher AFDC rates caused the nse m n enher the deu mn or nong phta Ow nership Nan prmided funds of net AFDCand as contnbution to 523.4 nulhon. ence of deselopers for some n nulhon , earnings per share. square feet. In December 1984, the Companvs Buildmg off. peak electricity i total capitahration reached $2 bilhon Qhe compam i 1984 annual
- usage is the pnmary goal of our aggres-and consisted of 37.5% conunon equav. stockhohlen meetmg ua held fue Jx site marketing program to expand 11% preferred and preference stock and Arn! 24.198L with bliof the h. ires
! 51.5% long term debt. residential and commercial winter represented m per on or bv pmn At heating load. the meetmg sharehohler re elected 11 heverJI finJnCings m 1984 con- A comprehensive residennal mar-threctors and appnned the appomt tinued to provide fleubihty for chang- keting plan promotes the heat pump and aik! on heat pump as efhcient cmt- ment of Arthur Andenen A Co a-ing mJfket condinons. Effective May mdependem pubhc accountann for
- effectwe attematives to natural gas 1984,a renegonation of the Company's 1984. The 19M annual met t mg is
) heat. Maior appheations are for new InternJ!ional loan Jgreement increased xheduled for ruesJ.n Arn!B IC i home heatmg and coohng and for the amount of Lunxiollar funds avada- replacement of aging. wom or meffi.
Approsimatels 2'"o of Ihe Coin ble to the Company to $200 milhon panti 53 300 stot khohlen are enmlk ' j cient heatmg and toohng sntemt from 5100 nulhon T he new agreement m the Dnidend Renne tment anJ espires m 1988 Heat pump sales and techmcal assistance n provided through sescral Stock Purcha e Man l'ndei the Iw l A pnvare placement of $12 H 75
- cooperanve programs wnh the Home nonne Retmen i.n As t of 161 shn Cumulante No Par Preferred stock m holden m.n deter mmme tae ou the amount of $10 mdhon was bnah cd City limhlers Assouation of Greater Kansas renne reddnidend or up
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- and the lleJt pump Dealers Asso m June l bree St nes of lint Mortgage annualh or Si ;00 to
- Mint ictum-Bonds were issued S;0 million of 5- ciation A grow mg number of electn-j cally heated homes m the Hirine untd thes ell the stot k lin Is ns n scar bonds 14% es ne in fulv;a pnvate limklersNpnng and fall homes ioun ci.d tas ircatment espire at thc endi't FM
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_ _ _ . - -_ . . _ _ . _ . _ _ - - - . _ . _ _ _ _ . _ _ _ - . _ .-- -.~_- _ - .-~_,_,.A_____n, M' ORT OF Ol'ER,\Til)NS i 4 i Encrating tunt pertorn).Inte in I 19w4 contmued to imprme m citroence because of Iheir inahthts to med flaw Ihorn .un! Mi c.m ' ! cmioion stand. nh without maior and productn ttt the re uh oi hith espendnuto r .ur pollution control tnc lanuan 1 i .
! long range and hort term programs to icdin c thosc u at s f or I ; '
upgrJde p}B sicJl radhtles perso.inel equipment itec. use lengths and espen dehunoorlou oh ; Ane icpJ!r'* hou!d be TcQuMcd m order peltolMLmce alid mJnagelflellt shtems. to Operate thoe four units in a con utal wmmt nte m Apr!! 41 the aine tilne, oper.l!!ng and niaiii- N ah 's lh t hcIlc M - t
'cIldlic e costs u cre Jl%o reduced tiriuous reliable and afe maniicr. .dl ilprh Mi'ntf - : . ! h ele It.t trcd in pl.aC at the end of 19M 19s' at a d< ln, rsJ.
Ihe becloJJ generatnig unit were - Ihe coinpain plans tai retire the lo thanfin le 1c.a:,
.nal}ab}c for wr\ Ice Jn .n crace ett Wo cictttN generators at Citat1d A\ciule of the tirne. the highot leul f ri 12 rii*C li lids J 2fI s A2 ual- T ins pertorm.m6 e eu ceded ihe station. now a\ailable for peakm.e once worr.h unh m 's <
{' \ car % goal and the 190.ncrace Wolt t icek i m operation i he plant- O cm mat: u " . - boders w di cont moe to generarc tc.on
.n.nlaN1 ti of '2"o. 'Iotal utem heat hed uith low u'rm s 'n t.o tcam he.it customert f ate- J meeure of plant ettidencV Mmc thwch tw b .
beed upon the.unount of heat occded I .dI 8't (bc I i'rnplY t i to produte a kdonatt hour -- we
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k 8 the19 M }cw}ot10%7 III[Ikkh lA h sulfur toa} Supph d [ ' i. peacntage pomt redut tion m utem Midh.n CoJ! M: .L- ' heat rate repre ents an appro\nnate , Mida.n Mua u. L, i 51 ; mdhon reducn in m sotem fuel Indlh'll b Cl t l !los ! h a j s s
- uwts Ascraec betload omt upaNht\ m ?tm la t narcawd to 'l 'S u til aNac ths 0;". ctns a m u u m -
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; This shsteruns scene of L e laden branches and 16-hour. around the<h k shttts. to reruar the broken ekctrsc hnes prcrhtes a shmpse of the worst darna.te ent expertenced to the Com-i wndespread destructson etsJ testoratton c hal- ponys system 1 lenses kit by the Afarch is M ne storm. These l crews Ibelow and nsht) we te amons 356 warkms 1
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_ m.r_- A.,,.m_A _.mm e __m..mm.,, a L.a_u ,m,-..,.m . , , - l 1 i En ice storm labeled the most 1. llobert Miller, N), became the iternard I. Iteaudom 14, was named !
! danugmg m Company hntort, struck Compann chief operanng othcer.1)ur- ute president of imante Mr. Itcaudom Kansas Cit v March 18,198 4. lce dam- ing his 37+ ear carcer with the com ioined the Company in IWO f rom the l f act' internipted electne wrvice to niore pany, Mr. Miller, an erigineer, was New England Electnc ssstein where ht i 3
than IN)(n)of the Compann 361tX)0 apiminted uce president of engineenng was direttor of ewnormc planmne IL 3 ubtomers and full power restoration in 19'l, adminntration m 197H, trans- had been strung as the Compam s l { ret}lltred nearlY nme dJv% mission and dht nbution SDtems director of a rporafC planmng.ind , I he nLlwive repJlr ettort produced opCrations in 1981 Jnd senior vice pres- finance. Incredible stJtht to. T he largest work- ident m 1983 Hn new assignment adds lames L. Ilocan ;1. ute pron!cnt force ewr awembled bv the Company responsiNlity for system power opera- of engmeenng iomed KCPL m 19;4 tatkkd the huge chalknges lef t h the tmns including operation of all gener. fin expenence mtludo sanous man i j low of 236 mam arcuits 6% broken atmg plants agement ivsinons m the engmtenng . [Mdes and 2](XX)dow11Cd wirei mant du blon, most recentiv .h wnior dirct soll energi:cd. Ilowewr. the most sig- .wr ,g ,. ~ ' t 9- yA tor of engmcenng i nthc.lill stathtlC Eb tilat no one Eh **# . Ie( [duin ll. Mcllunles lr $% Ab i P named uce president of tran nuuton l miered m an electncal accident. m _, wn _ ,c p,~ m _, anskered a fecord 205(X5) calls it kf g ' ama a ,,,semsm__, ms career with the Comrant began m j tnnes pc.ikmg at more th.m 2(XX)an - w b* 1 '
- 19;; He preuoush sened as enior l l lour. \ome 3(XI office JnJ other non- f e'
- diretfor of transminion and dntribu-
{ llVId emplosch Opecialh tr.ilnCd to 4 , tion 4 stenb operath.ns esahute storm damage, rromptiv made j p~ . . _ l s nua' msrcs tions and rcrorted actual . n L ibor contracts with litLW Lotal i danuee on urcuit m.ips lhe T 6 D I - 1613 reprewntme t k neal emrlowe-da nion a winbled a repair force of 4 ' and littW local .412 powcr plant l i more than t.N4). mcluihng bo ttom toponJmg contractors and neigh-d< workerv espned lunc 30 lo t .md wben negonations reached an imr b e-
*M #-.. the Compam unplementod n<w werk borine utIhtlo As routhi the ch>ck '
iOtor it hiil contillued ulnicT most dith- .
# k. Miles I he 1.ht tolltr.h t w ith }l0 W cult conshtions our customen dw 4_ v y local int Onenne tran mn ion and t pl.ned a great deal ot panent e .md - ilntnbunon emplowo tununnJ in suppor t. . -
dtober l942 wllen liigotlatit'n-reat hed an impane and Ihe Compam E ricune \cptember 1,1981.i rea. i hese shif ts wcre occ.nioned by implemented new work rules Waec ilgnniellt ill the Compath '% wHlor Inall- the Augu%t retirement of Donald I incre lws Itif Cmpb6eO in thiIt' cal 3
.'gement estabibhed liew posillo'h arid Mc Phee, senior vite presiJent of I164 uitit were pl.hed itito ctra t uiti
! lillluded the apjUmtment oI three ncW 4 stem power optrJtion% conclud lateraIh h the Comp.nh on dtoh r
\ he proh! Cuts ing J 3h WJr cJrt er it) eligilicerillg. 25 IW2,.llid Nowmber 2h le I lpuis C. II,bmtlucit $6. Ab 11.lmed tolbtrLiction and electrlC Utillty Currcnth, Nice ilit re.iw j'nipotil-
] j twulttw \lle prohkHI .ind tillCI operations IIC iollied t he CoinparlV offerCd h the Comp.lln would ph6il l titulit1.11 tilther. A 37 sc.ir utcran of tii 1936.itter wning as superin .iti addit ion.il ;"o f or all b. ire.iiiiin e tinit pubht unhty scrute. Mr itasmuwen tendent for construuion of Mon. emplowewitcune with cwomon et a toinol KUpl in 1960.1% awl (Jnt nuri- t row units l Jnd 2. lie mn elected iiew l.ihir writt.ht aint it ter iotah
.igel of f ato lle w.h clected \ Re prot' \ ice proldent in 1969 and to his 1 Ib I .llid 412. Jiul 3 ;"e f or 1 ot al 1013 do 01 in 19'I. II.h bCVH J Incmbe! ol tlic linal lMnt it) 19M3 ln lih role, Mr. clietiIW hily l. l%5 llire.iinille titut lloard of I)ncetors sintc 1%I .ind was Mt thet led the wnstruuion emplown h.nc watinued to work
- named sonor ute prohknt of im.mte ellotts.md the operanon of the unkt the Compam s nupk mented alul tolon4 rt t in 19%2 lic h.h f Dpon powcf pl.ints bmll h the Comp,Un wotk f ules w hile negotutlon h.nv sl!'ilit\ lll .lli arc.h cu ept Inini.lli os er ibrec decado (iiiitirined iii .in t ttoit tii re.h li .ierce trourto. and reposh to Arthur I ment with c.h h ii the tluce locah 1%nle.th.urman pronkot and chief k c%Ltillw ollher I
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KANSAS CfrY PURSUES ITS DESTINY A new Kansas City is emerging. the heart of the freeway h>op.Construc-i Unprecedented commercial expansion tion work is well underway on the $155 .
,(
and revitali:ation throughout the seven<ounty, bi. state Metropolitan million AT&T Town pavilion ofhce and retail complex featuring a 38+ tory f~ j me Arc. has gathered momentum from its l- M' tower.Groundbreaking is scheduled .
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beginnings about 20 months ago.The this year for One Kansas City place, a 1 4 ., . i array of maior projects-some finished, 40 story office tower.ind shopping but most underway or on the drawing arcade. The proposed $90 milhon proi-
.g[.,
f a boards-now exceeds 27 inilhon square feet and an estimated pnce tag of well ect would be the tallest buildingin Kansas City Alsoimposmg are Two y,
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p ., - ) . ,, over $2 bilhon in private imrstment. pcnhing Square,a $63 million office This rebirth ignores political and geographical boundaries. Destlopment headquarters for p.iyless Cashways, Inc., ty
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River .ind scores of city hmits. it com- ance Company, bemg built in the bmes exciting new buikimgs with the south penmeter. Ar" l
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EA preservation of valued older buildmgs, More than 30 Downtown renovation 'h J f. demomtrating respect for the citn proiccts are either underway or com-P' "'l t .
.l 1.y' robmt hentage it capitah:es on the pleted which would present architec- ..' .i d well planned freeway system w hich turally signihcant turn of the<entury i
provides linkages and direct access buildmxs. Included in the $100 milhon 1$.'4 E. ,e l' for the area's 1.3 milhon people, and laborforceof 688JXn effort h rehabihtation of 'Ir,ft" buildings in ihe hhtoric garment dntnct into " '1[ r
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Municipal tunsdatiom are planmng apartments with combined hymg' this growth so that Metropohtan Kan- working quarten, and restoration of sas City will m.iint.iin its reputation as ofhce buddmgs and renewal of older - + -
.. 2, "One of the few livable citict'in the neighborhoods, such as Quahty ihil in ..,,,'J.-
' <- ' M ~4 procco, vnionary commitments are creating a new kind of city that can the west penmeter, the home to nuny wealthy f.imihes in the pre 1900 era. '.
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3 accommodate grow th without lming its The second nugnet for expamion is -A clurm. Indeed, Kansas City is aggres- the Country Club pla:a, a SS-acre .
.- bg shely punuingits potential as one of elegant commercial /residentul environ- ) t W .?
the important cities ohhc world. ** ment wme 30 bhicks much ef Down.
,N d.'r "o > ^Ut}d/f While construction crancs punctuate town Onginally built in the 1920s and the Metropolitan sky, more th.m 9% renowned as the rution's hnt shopping
'4 5 #'
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+
.dmmt equally between proiccts in lackson County, Masouri, and lohmon than 5400 rmlhon in gutential develop-ment activity, more than fullof w hah AgL ' M g ?* '
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County, Kamat Almut $900 milhon of is under comtruction The largest ' the totalimrstment a concentrated proicct h One Main pla:4. a $ 140 withm the Downtown corc arca and mdhon, threc ofhcc center and hotel gs ' Eb.I 5
. 4i h tA penmeter. romplex with the hnt pluse to be s The revitah:ation is fulhlhng 'Dow ntown 2fxX)." the long r.inge blue.
comnleted m 1981 Incre.ned attention from developen '4 A+ - k""h,. ,!_v., , O ]$ pnnt which calls for remforcing the h being focmed on the Northland area i6 s q@? . core arcai role as a center for hnancial, in platte and Clay counties in Mmoun commercial, retail, ctiltural and whitor het ween Dow ntown and the K.imas Ar.har, ruraltr, nn. r:t . ' tb activities it recogni:es that a thriving City Intenut ional Airport. Esec ut n e '"rner"h tom o - i Downtown provido Imth lobs and Ihlls. Inc., w ith hve m.nor commercial '/,0,hl,"l,.'ll,l"n"j,j,1,", [l suitabic hving accommodationt deselopments in Metropoht.m Kan as rernrarc u ,rero#r 1hirteen nutor proiects have been Citv, has conin,I of wme Mn).wres m bl' rn=l tl+ c = t ' ' - annoutRed for the Downtown arcJ 10 the connecting i 29 corndor T he hnt (' l,{'""f " ll/,$'O ; of w hich are in s.inom stages of con. ofhte, retall and w archome structures rn, ,.s., u , AIRKlion. T hC two IJrgest proleCes ale Jrc undCrway witb rOldenti.d proNcts hic.ited on dugonal sqture bloc ks in planned for IVM start up. l .' I
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! a More than a billion dollarsin com- o Im ~'~ "
i mercial projects is tied to Northeast Johnson County, Kansas, an arca which M;V. has enjoyed spectacular growth over the 5 l last decade.The common denominators w* :
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- behind this activity have been out- * '~
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g 35 which has opened up prime develop- i i 5 r mental corridors. The wooded, rolling \ - hills of the south suburbs are especially \ [ suitable for the modern office / park con- \ -
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cept.The forerunner was Corporate l Woods, begun on a 300-acre tract in l the early 1970s.With completion of .
; twu more buildings in 1985, the ,
s complex will have 200f 29 structures ! L I ; planned with a total 1.6 million square s feet. Its success has sened as catalyst f." ,,, ; - j for private and entrepreneurial protects 2- ; now dominating thelandscapein mind , a boggling numbers. Some of the most imaginative i planned environments announced in the current expansion effort include - the S250 million,1.5 million square-
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foot Town Centre Calleria;the $150 million Northgate;the $65 million ; Financial pla:a with its first phase now -- i>cing built;and the $55 million _ Clenwood place with its first office tower occupied in 1984. O j The area-wide commercial expansion '" "-
! activity has also sparked residential 6- '
development. Building permits for - r more than 10,000 residential uruts were 1 issued in 1984 in the Kansas City area, : i* the largest number ever recorded. _ About half of these werein Johnson i County communities. _ _ . . _ 3 Arix>ng proiects in the corri&>r 1 By any measurement, the current s urh fr mthec untryclub i' & f expansion scenario is the most signifi-Pla:a toI-435is this rinuktn * \ s@- 33
) cant in Kansas City's 132 year history.
office buddmvabove).one of four companion structures.
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' Vitality into both the central city and ^"*d*^" heated resulences ekctricaDy w. s s :
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in the 1984 Fancorade of ' suburban areas.It also has positive h implications for electricity. Homes. Residentialconnec- ] W;~ G y -' .~ 3
o"5 ""ched 8.5694mts m , KL.pt's flexible @ng-range plan is 1984. highest in recent years.
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f custemers without the need for costly " I new capacity additions until beyond the year 2000. Kansas City will have a i P f reliab'c power supply to serve as a _j g growt.n vitamin for orderly expansion j as it seeks its destiny. 'S g Q 9 m 1
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Kansas CnylbwerO Light Cornpany STATEMENIS OFINCOME Year Ended December 31 1984 1983 1982 tthousands) Operating Revenues Electric - $ 570,558 $ 553,370 $ 475,802 Steam heat 12,856 9,173 9,827 Total 583,414 562,543 485,629 Operating Expenses Operation . Fuel 172,333 160,653 149,868 l Interchange power (net) (14,566) 1,MS (20,906) l Other 83,057 81,078 79,012 Maintenance 57,092 53,358 62,496 { Depreciation 47,561 46,319 45,215 Taxes (See statemeras) Income 69,568 61,962 39,946 Cencral 55,741 53,345 52,075 Total 470,786 458,060 407,706 OperatingIncome 112,628 104,483 77,923 OtherIncome and Allowance forequityfunds Deductions used duringconstruction 78,415 53,809 36,089 Miscellaneous-net ofincome taxes (4,293) 25 (63) Total 74,122 53,834 36,026 Income Before Interest Charges ' 186,750 158,317 113,949 Interest Charges long-term debt 86,643 70,126 65,260 l Short-term notes 3,343 4,332 6,021 Miscellaneous 1,273 1,271 1,397 Allowance forborrowed funds used during construction-credit (55,950) (43,893) (39,670) Total 35,309 31,836 33,008 Yearly Results Netincome 151,441 126,481 80,941 Preferred and preference stock j dividend requirements 21,917 21,570 18,193 Eammgs available forcommon stock $ 129,524 $ 104,911 $ 62,748 Average numberof common shares outstanding 28,887,407 25,278,388 22,510,368 Earnings percommon share $ 4.48 $ 4.15 $ 2.79 Cash dividends percommon share $ 2.33 $ 2.17 5 2.01 The accompanying Notes to Financial Statements are an integral part of these statements. , 1 t l l6
knsos Oty 1%wer b Lisht Cornpany BAIANCE SHEETS December 31 1984 1983 ASSm <thmundo Utility Plant Electric $ 1,327,410 $ 1,357,477 at originalcost Steam heat 4,767 5,060 (Notes 5 and 6) Total 1,332,177 1,362,537 Icss-Reserves for depreciation 423,653 452,174
~
Net utility plant in service 908,524 910,363 Construction work in progress 1,315,418 959,423 Total 2,223,942 1,869,786 Investments and Nonutility Property 12,566 16,854 Construction Funds Held by Trustee 16,292 21,345 Current Assets Cash 3,190 2,916 Temporary cash investments and special deposits 7,196 281 Receivables Customer accounts receivable,less reserves of $1,028,000 and $1,348,000 39,028 38,969 Accrued unbilled revenues 18,195 22,332 Other receivables 9,290 11,785 Fuelinventories, at average cost 45,680 45,280 Materials and supplies, at average cost 26,423 24,015 Prepayments 1,110 1,388 Total 150,212 146,966 Deferred Charges 21,590 16,064 Total $ 2,424,602 $ 2,071,015 IlABILITIES Capitalization Common stock-authorized 60,000,000 (See statements) shares without par value-29,725,405 and 28,320,580 shares outstanding-stated value $ 424,891 $ 401,534 Retained earmngs (Note 3) 322,135 259,915 Capital surplus 4,708 4,824 Total 751,734 666,273 Cumulative preferred stock 112,000 112,000 Cumulative preferred stock (redeemable) 65,996 56,156 Cumulative preference stock (redeemable) 41,667 45.833 Iong-term debt 1,032,117 805,644 Total 2,003,514 1,685,906 Current Liabilities Notes payable to banks (Note 2) - 27,000 Current maturities of long-term debt 16,000 - Accounts payable 40,954 47,067 Dividends declared 5,551 5,399 Accrued taxes 9,668 9,796 Deferred income taxes 8,721 10,841 Accmed interest 17,126 11,298 Accrued payroll and vacations 9,488 9,674 Other 3,350 4,253 Total 110,858 125,328 Dcierred Credits Deferred income taxes 204,052 172,089 Deferred imestment tax credits 104,464 85,811 Other _ _ _ _ 1,714 1,881 Total 310,230 259,781 Canunitments and Contmgencies (Note 7) Total $ 2,424,602 $ 2,071,015 l'
Kartws City Mnvrt Q 14hr Comruny STAT 1MENTS OF TAXES Year Ended December 31 1984 1983 1982 INCOMETAX EXPENSE nlwundu Total income tax expense was less than the amount computed by applying the statutory federalincome tax rate of 46% to income before taxes. The reasons for these differences are as follows-Taxes computed at statutory rate on income beforeincome taxes $ 101,867 $ 86,574 $ 55,491 Increase (decrease) in taxes resulting from-Allowanceforequityfunds used during construction (36,071) (24,752) (16,6G1) Differences between book and tax depreciation not normalized 1,446 1,359 1,142 Removalcosts (908) (2,510) (1,080) Amortization of investment tax credit (2,580) {2,134) (2,181) State income taxes 3,792 3,496 2,088 Other 2,462 (310) 832 Totalincome tax expense $ 70,008 $ 61,723 $ 39,691 COMPONENIS OFINCOMETAX EXPENSE Currently Payable Federal $ 6,537 $ 3,798 $ 921 State 3,691 3,594 1,135 Total 10,228 7,392 2,056 Deferred Federal (net) 35,367 30,775 28,862 Stateinct) 3,332 2,880 2,731 Total 38,699 33,655 31,593 InvestmentTaxCredit Provision 23,661 22,810 8,223 Amortization (1,580) (2,134) (2,181) Total 21,081 20,676 6,042 l Totalincome tax cxpense 70,008 61,723 39,o91 Lese: Income taxes applicable to other income and deductions 440 (239) (255) Income tax expense applicable to operatingincome $ 69,568 $ 61,962 $ 39,946 DEFERREDINCOMETAX EXPENSE Depreciation differences $ 7,569 $ 8,852 $ 8,468 Debt component of AFDC 26,325 21,159 19,5G3 Repair allowance 1,362 (824) (810) Unbilled revenues (1,994) 1,201 1,559 Taxes and pension costs capitali:ed 3,719 3,134 2,165 Other 1,718 130 708 Total S 38,699 $ 33,655 $ 31,593 CENERALTAX EXPENSE Property and realestate $ 19,290 $ 18,954 $ 20,924 Gross receipts 31,243 29,413 26,479 Other 5,208 4,978 4,672 Total $ 55,741 $ 53,345 $ 52,075 The accompanying Notes to Financial Statements are an integral part of these statements. i l
Kansas Ory I%wer O Lssht Countwny i STATEMENIS OF SOURGS OF FUNDS FOR CROSS PROPERTY ADDmON Year Ended December 31 1984 1983 1982 trinmu,nho Funds Provided Net income From Operations $ 151,441 $ 126,481 5 80,941 less dividends declared 89,221 76,968 64,495 Total 62,220 Items not requiring current use 49,513 16,446 offunds Depreciation " 47,561 46,319 45,215 Deferred income taxes (net)- non<urrent portion 40,819 32,438 29,977 Imestment tax credit (net) 21,081 20,676 Allowance forfunds used during 6,G42 construction (AFDC) (134,365) (97,702) (75,759) Total 37,316 51,244 21,921 Funds Provided From Issuance oflong-term debt OutsideSources 207,409 185,469 45,003 Construction funds held by trustee 5,053 Issuance of preferred stock (21,345) - 10,000 - 55,080 Issuance of common stock (1,404,825, 3,951,980and 3,723,774 shares, respectively) 23,357 81,614 57,561 Increase (decrease) in borrowings underloan agreements 35,000 154,000) 2,000 Retirement oflong-term debt Preference stock sinking fund (35,006) - (4,166) (4,167) Decreasein short term borrowings (27,000) (31,500) (30,600) Total 249,653 121,065 129,G44 Decrease (Increase) (Exclusive of short-term borrowings In Working Capital andcurrent maturities) (6,716) 13,908 Other 5,980 (3,181) (3,670) (3,785) 7btal Funds Used for Gross Property Additions 277,072 182,547 153,160 AFDC net of related deferredincome taxes included in utility plant (including a reclassificationin 1983, Note 1) 125,607 122,089 53,878 Gross Fmmiy Additions
$ 402,679 $ 301,636 $ 207,038 Decrease (Increace) Cash In Working Capital Temporarycash investments (274) $ (1,000) $ 5,265 and specialdeposits (6,915) (119) 20 Receivables 6,573 (4,714) (8,424)
Fuelimentories Materials and supplies (4001 8,838 (5,370) (2,4081 (1,169) Accounts payable (77) (6,113? 1,787 12,793 Accrued and current deferred income taxes (2,248) 5,564 190 Accruedinterest 5,828 Other 3,392 46 (759) 1,329 1,537 Total $ (6,716) $ 13,908 $ 5,980
n !
- Kansas ory lbwer O Uzhr cornpany I STAHMENTS OF CUMULATIVE PREFERRED AND PREFERENCE STOCK AND IDNG-TERM DEBT i December 31 l 1984 1983 CUMULATIVE PREFERRED STOCK (Note 4) trhouunao I
$100 Par Value 3.80%-100,000 shares $ 10,000 $ 10,000 4.50%-100,000 shares 10,000 10,000 4.20%- 70,000 shares 7,000 7,000
- 4.35%-120,000 shares 12,000 12,000 7.72%-130,000 shares '
13,000 13,000
, No Par $10.70 -200,000 shares 20,000 20,000
; $ 2.33 -800,000 shares 20,000 20,000
$ 2.20 -800,000 shares 20,000 20,000 I
Total $ 112,000 $ 112,000 CUMUIATIVE PREFERRED STOCK (REDEEMABLE) (Note 4)
$100 Par Value 4% -31,957 and 33,557 shares $ 3,196 $ 3,356 No Par $17.05 -228,000 shares 22,800 22,800
$13.25 -300,000 shares 30,000 30,000
$12.875 -100,000 shares 10,000 -
Total $ 65,996 $ 56,156 CUMUIATIVE PREFERENCE STOCK (REDEEMABLE) (Note 4) No Par $ 8.00 -166,666 and 208,333 shares $ 16,667 $ 20,833
$12.75 -250,000 shares 25,000 25,000 Total $ 41,667 $ 45,833 LONG-TERM DEBT (excluding current maturities) (Note 5)
First Mortgage Bonds 3%% series due 1985 $ -
$ 16,000 14 % sciies due 1989 50,000 -
5% series due 1990 20,000 20,000 13%% series due 1991 25,000 - 13.48% series due 1991* 25,000 - 10%% series due 1993* 7,500 7,500 9.2% series due 1994* 60,000 60,000 4%% series due 1995 15,000 15,000 5%% series due 1997 30,000 30,000 6M% series due 1998 25,000 25,000 7%% series due 1999 26,000 26,000 9%% series due 2000 35,000 35,000 7%% series due 2001 27,000 27,000 7%% series due 2002 30,000 30.000 8%% series due 2006 40,000 40,000 8%% series due 2006 30,000 30,000 5%% series due 2007* 21,940 21,940 5%% series due 2007* 20,000 20,000 8%% series due 2007 30,000 30,000 9%% series due 2008 25,000 25,000 6%% series *X due 2008* 9,200 9,200 6%% series "B" due 2008* 21,800 21,800 19.% series due 2009 50,000 50,000 16%% series due 2011 50,000 50,000 13 % series due 2013 60,000 60,000 12% series due 2013* 11,980 11,980 Control Bonds- 5%% series due 2003 15,000 15,000 Variable rate series (% at December 31,1984): 6.40% series due 2013 43,000 43,000 6.40% series due 2014 40,000 - 6.45% series "B" due 2014 50,000 - I.can Agreements 75,000 40,000 Nuclear Fuel Lease (9.64% at December 31,1984) 65,401 47,992 Unamortized Premium (1,704) [1,768) and Discount (net) Total $ 1,032,117 $ 805,644
- Pledged in support of pollution control bonds or other agreements
Kansas City nwer o thht company STAHMENTS OF RETAINED EARNINGS YearEnded December 31 1984 1983 1982 Ithousands) hi==i== Balance $ 259,915 $ 210,402 4 193,956 NetIncesne 151,441 126,481 80,941 411,356 336,883 274,897 Dividends Declared Preferred and preference stock (at required annualrates) ' 11,991 21,598 19,502 Cnmman stock-
$2.01 per share 44,993
$2.17 per share 55,370
$233 per share 67,130 89,221 76,968 64,495 EndingBalance(Note 3) $ 322,135 $ 259,915 $ 210,402 The accompanying Notes to Financial Statements are an integral part of these statements.
NOTES TO FINANCIAL STATEMENTS L Su = ==-y of Signi&==t Accounting Policies n the normal course of business are charged to the reserws for System ofAccounts:The accounting records of the Company depreciation, along with removal costs, net of salvage. are maintained in accordance with the Uniform System of The amounts of maintenance and depreciation expense other Accounts prescribed by the Federal Energy Regulatory Com-than those set forth in the Statements ofIncome are not signif-mission (FERC) and generally accepted accounting principles. cant. Rents and lease payments for railroad cars, computer Utility Plant: Utility plant is stated at historical costs of con- equipment, buildings and similar items are also not significant. struction.These costs include taxes, payroll related costs DeferredCharges Costs,suchas thoseincurredformajor including pensions and other fringe benefits, and an allowance forfunds used duringconstruction. storms, are recorded as deferred charges when it is probable (likely), based on historical regulatory precedent, that future Allowance forFunds UsedDuring Construction (AFDC): rates established by the regulators will recoveramortization of AFDC includes the cost of borrowed funds used for construc- such costs.The incremental cost, $5.3 million, of the 1984 ice tion purposes and a reasonable rate upon other (equity) funds. storm has been deferred with amonization over five years stan-The allowance for borrowed funds represents an allocation of ing in April 1984. Deferred charges also included $5 million of interest costs to construction, while the allowance for equity other costs which for regulatory purposes are included in rate funds is a non< ash item ofincome. AFDC is charged to con- base. struction work in progress during the period of construction. Retirement Plans The Company has pension plans for allits When a construction protect is placed in service, the related regular employees, including officers, providing for benefits AFDC becomes a part of the original cost of the completed plant upon retirement, normally at age 65. Under the requirements of which is used to establish rates for utility charges under estab-the Employee Retirement Income Security Act of 1974 (ERISA) lished regulatory rate practices.The rates used to compute AFDC, before associated deferred income taxes, are com-the Company is obligated to fund the benefits of the plans.The ) Company's policy is to fund pension costs accrued.1.iability for pounded semi-annually and averaged 12.2% for 1984,12.1% for past service costs is not significant. The annual costs of the 1983and 12.1%for 1982. plans were $6.9 million in 1984,59.2 million in 1983 and $93 Depreciation and Main tenance: Provisions for depreciation are million in 1982.The decrease in 1984 costs resulted from the computed on a straight-line ' oasis pursuant to rates ordered by Company's decision to reduce the funding of the pension plan the Missouri Public Service Commission (MPSC). Approximate for collecta e bargaining employees because of expiration of the l annual composite rates were 3.61 % in 1984,3.62% in 1983 and collective bargaining agreements. Funding in 1984 met the 3.61%in 1982. minimum contribution required by ERISA. The Company charges to maintenance expense the repairs of At the annual valuation date of October 1, the actuarial present property and replacement and renewals of items determined to value of accumulated plan benefits was approximately $ 135 be less than units of property, except for such costs which are million for 1984 and 5126 million for 1983, including 57 million charged to clearic ; accounts and redistributed to various oper- and $6 million of non. vested benefits, respectively. Plan net as-ating, construction and other xcounts.The costs of renewals sets were approxunately $ 160 million for 1984 and $ 148 million and betterments of units of property are charged to the utility for 1983. Rates of retum of 6% to 7% were assumed in deter-plant accounts. Property units retired or otherwise disposed of miningbenefits.
.I
Revenue Recognition:The Company utilizes cycle billing and 3.Dividertd Restrictions accrues the amount of revenue for sales unbilled at the end of Retained eamings at December 31,1984, included $12 million each reponingperiod. which was not available for cash dividends on common stock Income Taxes:The Company generally normalizes the effects . under the provisions of the Indenture of Mongage. of the use of accelerated tax depreciation methods. Deferred income taxes have been provided for the differences between 4. Preferred and Redeemable Preferred book and tax depreciation except for the effect of accelerated and Preference Stock depreciation on Missouri propeny acquired prior to 1972. The outstanding Cumulative Preferred Stock of $112 million Accelerated depreciation methods include the use of the Asset may be redeemed at the option of the Comnany at prices which Depreciation Range System and Accelerated Cost Recovery in the aggregate total $122 million, excpt that the $10.70 System which permit shoner lives. Taxes deferred on propeny series mzy not be redeemed at the arrent redemption price of additions for cenain prior years are now being restored to $110.70 prior to June 1,1985Arough a refunding, directly or mcome as the timing differences reverse. indirectly, by or in anticiption of the incurring of any debt or The tax effect of the interest component of AFDC is normal- the issuance of prefers:d stock which has interest or dividend ized and the related accumulated deferred income taxes are costs to the Company lower than 10.84% credited to construction work in progress rather than deferred g g mcome taxes on the balance sheet.This procedure was fol-g ,
, f (Redeemable) may be redeemed, m.whole or m. pan, ratably lowed for all jurisdictions until lune 1983 when, in connection fr m each of the holders of the outstanding shares, at times and with a rate order, the Missouri Public Service Commission prices specified in the purchase agreement for the m, dividual required the Company to no longer credit deferred income issue. Redemption and sinking fund dates and amounts are as taxes against construction work in progress on the Missouri f 11 ws:
jurisdictional ponion of Wolf Cieck unit costs and to reclassify such xcumulated balance ($32 million at December 31,1982) g,',j, P 3 ,,,,ismia ,,,,,a from construction work in progress to deferred income taxes D,te imtui cumnt imitsi on the balance sheet. senes imed Date Pnce Date Pnce shares The Company normalizes for all jurisdictions the tax effects of cumularm Prefe=d pension costs, payroll taxes and propeny taxes which are capi- 4% 1948 cumnity sio22s cumnity siot2sia! i.6ao talized on the books but deducted currently for income tax purposes.The effects of the current deduction of removal costs sits 7s "lE i984 c,',98'
,gy g 1988 Q lll 'L M 106 1989 ioo 33.332 are flowed through. cumuistive Preference The tax effect of the cumulative net amount ofincome tax $ l7$ d's $3i currench l9ss g jjgei timing differences for which deferred income taxes have not (a) May be satisfied by open market purchases m. lieu of been provided is approximately $40 million at Dec:mber 31, 1984. These amounts are being recovered through allowed smking fund redemption.
revenues as the timing differences reverse. (b) Company has non<umulative option to redeem up to 11,400 additional shares each year at $110 per share plus dividends. Investment tax credits have been deferred when utilized and are being amonized to income over the service liws of the (c) The $13.25 and $12.75 series may not be refunded prior to related propenies. At December 31,1984, the Company had August 31,1987, and June 1,1985, respectively, through unused and unrecorded imestment tax credits of approxi- refunding at an interest cost or dividend rate which is less mately $29 million, which will be available to reduce Federal than the dividend rate of such series. income taxes payable through 1999. (d) Company has an option to purchase each year an additional Subsidiary:The Company has a whollyewned subsidiary, 60,000 shares beginning in 1988 up to a maximum of WYMO Fuels Inc.,(WYMO) organized for the acquisition and 150,000 of such additional shares. development of coal propenies.The Company has accounted (e) Company has non-cumulative option to redeem up to l for its investment in WYMO under the equity method and has 41,667 additional shares each year at $100 per share plus I not prepared consolidated fmancial statements because the - dividends. effect of consolidation upon the accompanping fmancial state- . l ments would not be significant.The 1984 net income of the At December 31,1984, the Company had authorized 551,957 1 Company has been reduced by $4 million to reflect the losses shares of Cumulative Preferred Stock at a par value of $100 per on WYMO's books resulting from the write down of WYMO's share,4,000,000 shares of Cumulative No Par Preferred Stock assets to management's current estimate of market value. and 4,000,000 shares of Cumulative Preference Stock without i par value. 2.Short-Term Borrowings Scheduled redemption and sinking fund requirements for out-The Company borrows short term funds from banks and standing redeemable preferred and preference stock for the I through the sale of commercial paper as needed between next five years are as follows: 1985 through 1987, $8.5 million financings. Under minimal fee arrargements the Company has each year, $15.7 million for 1988, and $ 14.9 million for 1989. bank linesof-credit of $150 million which are back-up for such borrowings.
i I if any dividends on its preferred or preference stock are not interest and related costs as the fuel is consumed in the plant.
- declared and paid when scheduled, the Company could not The Company is capitalizing the cost, including related interest declare or pay dividends on its common stock or acquire any costs, of trie leased nuclear fuel for both book and rate making
< shares thereof for consideration. If the amount of any such purposes.
unpaid dividends equals four or more full quarterly dividends, the holders of prefened or preference stock, as the case may be, . Scheduled Maturities: The aggregate amount of maturities voting by the classes prescribed for this purpose, could elect and sinking fund requirements during the next fiw yea 2s of representatives on the Company's Board of Directors. long-term debt outstanding at December 31,1984, (exclusiw of ( the loan agreements, which the Company expects will be i S.% Term Debt extended, and the nuclear fuel leasel is $16 million in 198', and i $50.2 million in 1989. L First Mongage Bonds: The amount of First Mongage Bonds I authorized by the Indenture of Mortgage and Deed of Trust 6. Jointly Owned Electric Utility Plants dated as of December 1,1946, as supplemented,is unlimited.
%e amount of additional bonds which may be issued is sub- The Company has, under joint ownership agreements with ject to certain restrictive provisions of the Indenture. Substan- other utilities, undivided interests at December 31,1984, in cially all of the Company's utility plant is pledged under the utility plants as follows-terms of the Indenture.The following Pollution Control Bond w,if creek ucune in.o unit units unii series have sinkmg fund irquirements beginning in various cono.ny. . hare cot sous 70 o 5 years: 5%% in 1997,5%% in 1998,6%% "A"in 1999,6%% *B*in irmn,ono 1999 and SK%in 1989. utihty plant in iemce -
s240 sua utihty plant under constructa s1.260 sI - Loan Agreements The Company has a loan agreement, Nuclear fuelin process s 21 - - expiring June 30,1988, with a group of intemational banks which provides for the use of unsecured funds up to $200 E*Qcd'cc"","I'$r'""" c , i , - s 80 se comp,ny. .cc,caitea c.p. city-mw sis 6sa 469 million at interest rates adjusted quarterly based on the three-month london Inter-Bank Offered Rate. At December 31,1984, Each panicipant must provide its own financing.The Com-
$75 million at interest rates rangmg from 103% to 11.7% was panys share of direct expenses is included in the corresponding outstanding. operating expenses on the Statements of Income.
He Company has a financing arrangement with a bank, expir- 7. Conunitmenta and Contingencies-ing January 16,1987, which enables the Company to borrow up Nuclear Plant to $50 million by collaterahzing its coal and fuel oil imentories at rates based upon the current bankers acceptance discount At December 31 1984, Wolf Creek's nuclear fuel commitments rate plus an acceptance charge. No loans were outstanding at (Company's shad) were approximately $40 million for uranium December 31,1984. concentrates through 1997, $175 million for enrichment through 2014, and $40 million for fabrication through 2005. Nuclear fue1 Lease: The Company has a lease expiring in i April 1989 which provides for the financing cf the costs of up If, after Wolf Creek is found to be fully operational and used for service, the Company does not receive substantial and to $80 million of the Company's nuclear fuel.The lessor will I timely rate increases through either a one time annual revenue obtain, through the issuance of commercial paper backed by increase or as an altemative an appropriate phase-in plan, the
> letters of credit from commercial banks, or from revolving Company's financial condition would be adversely affected.
credit loans, the necessary funds to purchase the fuel and ! make interest payments when due. The Company is obligated See Management's Discussion for additional information i, to reimburse the lessor for all expenditures for nuclear fuel, regarding Wolf Creek. i AUDrrORS' REPORT 1 0 Tb the Stockholders and the Board of Directors of Kansas City Power & Light Company 4 ! We haw examined the balance sheets and statements of cumulative preferred and preference stock and long-term debt of Kansas l City Ibwer & Light Company la Missouri corporation) as of December 31,1984 and 1983, and the related statements of income. . g taxes, retained eamings and sources of funds forgross propeny additions for each of the three years in the period ended December l 31,1984. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such j tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
): In our opinion, the financial statements referred to above present fairly the financial position of Kansas City Ibwer & Light Company as of December 31,1984 and 1983, and the results of its operations and the sources of its funds for gross property
[ additions for each of the three years in the period ended December 31,1984,in conformity with generally accep principles applied on a consistent basis. i ARTHUR ANDERSEN & CO. Kansas City, Missouri k' January 28,1985. 2%
a Lmsas Ory Power O Lisht Company MANAGEMENTS DISCUSSION AND ANAIXSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS . l l KWHSalesandOperatingRevenues The components of change in fuci costs: l Incue(Decrwel , Kwh sales increased .8% in 1984 and increased 8.2% in 1983 FmmPnorYear compared with the prior year.The 1984 increase reflects continu- 1984 1983 ationof therevivalinthelocalmanufacturingeconomypar-tially offset by mild summer temperatures causing a reduction
. (millions)
Generationforcustomersand in residential usage, and the loss of a wholesale customer which 8l 8i decreased other sales. In addition, rewnues were positively g'"r' c l impacted by the Missouri retail electric rate increase of $23.1 Total $ 12 $ 11 i' million effective July 1983 and the Kansas retail electric rate increase of $16.1 million effective April 1983.The 1983 sales increase reflects higher residential usage due primarily to P* InterchangePower(Net) longed summer and winter temperature extremes and an InterchanEC P *er(net) of $14.6 million in 1984 and $20.9 uptum in the local manufacturing economy. In accordance with million in 1982 resulted from interchange sales exceeding new rate case procedures, the Company reclassified municipal mterchange purchases. In 1983 purchases exceeded sales by $ 13 firm power sales from interchange power to other sales.This million because of power purchases made necessary by the hot change accounted for a 13.4% ($2 million) increase in other weather and record sales. Also, purchases were made when kwhsalesfor1983 compared to 1982. power was available at costs lower than the costs of operating Salesandrevenuedata: certain of the Company's available units.The change in increase (Decrease) interchange power from 1982 to 1983 also reflects termination FmmPriorYear on May 31,1982, of a capacity sale agreement with another util-1984 1983 ity.The change in interchange sales from 1983 to 1984 was due KWH Revenues KWH Revenues primarily to improved availability of the Com~pany's generating (millions) units.The level of interchange sales in the future will depend (millions) Kwhsales upon the Company's system requirements and other factors Residential 13.4l% $ (3) 143 % $ 39 such as fuel costs, maintenance requirements and the availabil-Q]ial y y j 23 ity of generating units to the Company and potential purchas-ingutihties. Other (3 1.11 (6) 21.4 7 Total .8 % 17 8.2% 76 Maintenance Steam heat and otherrevenues 4 1 Repair of the distribution system damaged by various storms 5 77 caused maintenance expense and deferred charges (see Note 1 Total 5 21 of the Notes to Financial Statements) to increase in 1984 The components of change in revenues applicable to compared to 1983. Maintenance expense decreased 14.6% in kwhsales: 1983 compared to 1982 reflecting less maintenance required at Increase (Decrease) several generating stations and changes in the operating status From PriorYur of certain units to summer peaking, emergency use, or inactive 1984 1983 reserve. Rewnues InterestExpense Kwh sales, 55 5 40 Interest expense continues to increase because of greater amounts of outstandinglong-term debt.While the 1984
'"'[c$r owr t pt e ghfuel 4 increase also represented higher rates ofinterest applicable to adit.stmentclauses (3) variable rate long-term debt, the 1983 increase was moderated Ton! $ 17 5 76 l by lower market rates on the variable rate long-term debt and decreased interest on short term notes.
FuelCosts The average fuel cost per million Btu decreased to $1.491 in Other Incorne and Ded uctions-Miscellaneous 1984 from $ 1.535 in 1983.The 1984 decrease reflects the The 1984 miscellaneous-net ofincome taxes reflects a $4 reduced price of coal for the Iatan generating unit resulting million decrease because of the write down of the Company's from negotiating a famrable 20 year coal contract and increased investment inits subsidiary. availability of and generation by La Cygne I which has histori- l cally had the lowest average fuel cost per million Btu.The Net AFDC i average cost increased to $1.535 in 1983 from $1389 in 1982 Net AFDC represents the effect upon the Company's net reflecting the higher prices for coal, freight and natural gas.The income of capitalized allowance for funds used during con-1983 increase also reflects the unavailability of La Cygne I due struction (AFDC) and is equal to allowance for equity funds toa maWoverhad used during construction, plus allowance for borrowed funds used during construction,less deferred income taxes on the borrowed funds component. n l
%e continuing increase in the amount of construction work in %e Company will request in the near future that the progress at Wolf Creek and higher AFDC rates caused net Nuclear Regulatory Commission (NRC) issue an operating AFDC to rise 41% in 1984 and 36% in 1983. Monthly net AFDC license for fuel loading and low power testing at Wolf will continue to increase until Wolf Creek is found to be fully Creek. The Company anticipates that the NRC will issue operationalandusedforservice.
this license promptly and the fuel loading would be com-pleted within a few weeks thereafter.The Company cur-rently estimates that commercial operation of Wolf Creek Net AFDC made a significant contribution to camings per will commence approximately six months after fuel commonshareasfollows: loading. 1984 1983 1982 NetAFDC(millions) $108D $76.5 $563 In view of the numerous and diverse problems currently Net AFDCPerShare 5 3.74 53m 5 2.50 impacting nuclur units, no assurance can be ginn that Wolf Earnings PerShare(EPS) $ 4.48 5 4.15 $ 2.79 Creek will be immune from a delay in commercial operation NetAFDCPerShareasaPercent because of actions by the Nuclear Regulatory Commission, EP ex udingnet AFDC $ . litigation, delay of start-up events, or other events beyond the
$ 1. $.
Company,s control. Any delay in commercial operation of Eammgs per share, excluding net AFDC, decreased from 1983 to Wolf Creek would result in an increase in its total cost. No long 1984 primarily due to milder 1984 temperatures and increased delays are currently expected as evidenced by the current status interest expense.The increase from 1982 to 1983 reflects of Wolf Creek and the fact that a basically identical nuclear unit mainly an upturn in the economy, rate increases, and extreme built in Missouri by another utility has received a full power winterand sununerweather. license and has achieved 100% of rated capacity.The cost of the other unit is comparable to Wolf Creek's estimated cost. He Company's electric utility plant and rescrves for depre. CapitalRequirements andLiquidity ciation decreased in 1984 because the Hawthorn I through 4 It is expected that 1985 construction expenditures will be met generating units were retired.The four tmits were built over partially through the utilization of available credit under loan 30 years ago and were retired because they could not be agreements and short-term borrowings and the issuance of operated without significant and costly repairs. The $68 million common stock under the Company's dividend reinvestment cost of the units was removed from both electric utility plant and stock purchase plan. lt is anticipated that funds for the and reservesfordepreciation. remaining 1985 to 1988 capital needs including retirements of Projected Construction Expenditures maturing long-term debt and redemption of preferred and pref-creace stock pursuant to sinking fund obligations will be pro-Projected four-year construction expenditures, excluding videdfrom operations. AFDC,are: Uncertainties which affect the degree to which capital Construction Expenditures requirements will be met by funds provided from operations 1985 1986 1987 1988 Total include such items as the Company's ability to receive adequate Generating (rnillions) rate increases, the impact ofinflation on operating expenses, the fxilities $ 55.7 $11.1 $10D $ 9.4 $ 86.2 level of kwh sales, and the level ofinterchange transactions Nuclearfuel 20.8 12.7 18.5 14.1 66.1 with otherutilities. aci t 16.2 18D 17.2 4D 55.4 The Company has pending retail rate increase applications in Distribution and Missouri and Kansas which should be decided in 1985. Both generalfxilities 41.4 37.6 37.6 41.7 1583 states have legislation which permits the regulatory commis-Total $134.1 $79.4 $833 $69.2 $366D sions to phase-in rate relief. Further, both commissions may defer or deny rate recognition of costs which are, among other The timing of construction and cost estimates are subject to things, determined to have been incurred in whole or part due continuing review and adiustments. Actual construction to lack of efficiency or prudence or have resulted in excess expenditures may vary from such estimates. capacity.The Company's financial condition would be adversely affected ifinadequate, inappropriate or untimely rate relief WolfCreekNuclearPlant isgranted. The Company's 47% share of Wolf Creek's construction costs . . through December 31,1984, excluding nuclear fuel, was $ 1.26 See Supplementary Financial Information for Financial Data billion, including $382 million of AFDC.The Company's share AdiustedforChangmgPrices. of the estimated $2.9 billion total Wolf Creek construction costs, excluding nuclearfuel,is $1.4 billion. 1
. . . _ _ _ . .- _ ..1. . _ .
knus Ory hower D Lhht Company SUPPLEMENTARY FINANCIAL INFORMATION 1 I 1 QUARTliRLY OPERATING RESULTS lst 2nd 3rd 4th Quarter Quarter Quarter Quarter 1983 1984 - 1983 1984 1983 1984 1983 1984 tthouurut4 Operating revenues $134,659 $114,533 $142,638 $124,795 $172,432 $185,853 $133,685 $137,362 Operatingincome $ 23,600 $ 16,296 $ 25,246 $ 21,127 $ 38,717 $ 42,453 $ 25,065 $ 24,607 Net income $ 32,910 $ 20,429 5 34,560 $ 25,512 $ 49,483 $ 47,857 $ 34,488 $ 32,683 Earnings per common share $ .97 $ .62 $ 1.02 $ .82 $ 1.51 $ 1.71 $ .98 $ 1.00 The business of the Company is subject to seasonal fluctuations with peak periods occurring during summer months. 1984 FINANCIAL DATA ADJUSTED IOR CHANGING PRICES (Thousands) Year Ended December 31,1984 Current Cost Average 1984 Dollars
$ 199,002 Net income before book depreciation of $47,561 118,453 Adjusted depreciation
$ 80,549 Income'
$ (7,G33!(a)
Adinstment to net recoverable value of plant 47,660 Cain from decline in purchasing power of net amounts owed S 40,627 Net (a) At December 31,1984, current cost of plant net of accumulated depreciation was $3,696,000 while historical cost or n recoverable through depreciation was $2,226,000. m
l 1 CERTAIN FINANCIAL DATA ADJUSTID IOR CHANGING PRICES (in Thousands of Average 1984 DoEars)
. Year Ended December 31 1984 1983 1982 1981 1980 Average consumer price index (national) 311.1 298.4 289.1 272.4 246.8 4
Generalinformation Operating revenues $583,414 $586,485 $522,585 $538,727 $562,154 Gain from decline in purch: sing power of net amounts owed $ 47,660 $ 41,838 $ 39,928 $ 92,229 $ 128,825 Cash dividends declared per common share $ 2.33 $ 2.27 $ 2.16 $ 2.15 $ 2.26 Market price per common share at year <nd $ 19.60 $ 19.22 $ 19.68 $ 16.21 5 16.25 Current cost information income' $ 80,549 $ 61,293 $ 15,361 $ 17,130 $ 15,439 Income (loss)* per common share $ 2.03 $ 1.53 $ (0.1 91 $ 0.07 $ (0.0!i Adjustment to net recoverable value of plant $ (7,033) $ 3,213 $ 9,838 $ (67,661) $(122,019) Net assets at year-end at net recowrable cost $741,250 $682,957 $569,419 $507,610 $511,499 CExcluding adjustment to net recoverable cost. Notes to the Financial Data Adjusted for Changing Prices The information presented above is supplied in accordance Since regulation limits a recovery of fuel costs in base rate with the requirements of FASB statements on " Financial schedules to actual costs, fuel inventories are effectively Reporting and Changing Prices," for the purpose of providing monetary assets and hase, therefore, not been restated from cenain information about the effects of changing prices. It their historical cost in rominal dollars. Also, preferred stock should be viewed as an estimate of the approximate effect of has been treated as a monetary item. inflation, rather than as a precise measure. Since only historical costs are deductible for income tax pur-Current cost amounts reflect the changes in specific prices of poses, income tax expense has not been adjusted. plant from the date the plant was acquired to the present. Under the ratemaking prescribed by the regulatory commis-The current cost of plant was determined by indexing the sions to which the Company is sub;ect, only the historical surviving plant by the Handy-Whitman Index of Public Utility cost of plant is recoverable in revenues as depreciation. Construction Costs. Since utility plant is not expected to be Therefore, the excess of the cost of plant stated in terms of replaced precisely in kind, current cost does not necessarily current costs that exceeds the historical cost of plant is not represent the replacement cost of the Company's productive presently recowrable in rates as depreciation, and is reflected capacity. 'Ihe current year's provision for depreciation on as an adjustment to net recoverable value of plant.To properly current cost amounts of depreciable plant was determined by reflect the economics of rate regulation in the determination applying the Company's composite depreciation rate to the of income, the reduction of net plant to net recoverable cost i average, depreciable plant amount calculated on a current has been offset by the gain from the decline in purchasing cost basis. power of net amounts owed. l l
m l Kenses City Ptmr7 b Light Company l
; ELEVEN-YEAR SUMMARIES OF FINANCIAL AND SELECITD STABSBCAL DATA I l l
l l l Samsamervef Earningo 3904 1983 1982 1981 1900 1979 1978 1977 19'6 1975 19'4 oyerseens i SOUW l' Electric 8 870,544 8 551370 8 475.802 8 465.825 8 44a182 8 365D84 5 311787 8 266D53 8 234.297 8 207A13 8 170.249 I 5 essa bear 12A86 9.173 9A27 5.886 5383 5191 4 876 4A09 ' 1.867 2.505 IJ99 lbtal 988A14 561543 485,629 471Jil 445.965 37a875 318463 270462 137.164 210J18 172Dt8 Opersedes Empemmeo100(Td Operaten 348A84 143D76 307,974 laQ474 174461 184134 135.450 l14510 91945 83.555 58 837 Maumenance 87A92 53J58 62.496 54J05 524a0 54J15 30,359 29.496 22.275 19.194 14 550 Dur-r- 47J61 46Ji9 45,215 44.9.2 41/ 13 34A68 31174 34356 24429 21.867 20.648 Tames W 49,544 61.962 39.946 45,577 42488 9.569 24137 18.455 19541 16.495 15.204 Central 56J41 53345 52D75 51.% 8 47.9 % 41.914 38.511 35.519 31.822 28.537 25.207 Total 478J06 458DhD 407J06 377.226 359.118 326,800 263431 224J36 191,512 169 648 134 446 Opereenag inemen f00(TW 112,628 304.483 77.923 94.185 86A47 44D75 55.032 46J26 45652 40470 37A02 OeherIm mme med Dcd scenenem0(TW pn=.--a far equsty funds used disin8 censtructum 7 eat $ 53.809 36D89 29D73 19J75 19,467 11543 7,592 3.983 1119 511 Maecellaneous inett (4J98) 25 5 31 327 11221 304 18741 13 91 185 1J15 642 Total 74,122 53.834 36D26 294G) 19.653 19171 11469 7,553 4.168 3 834 I,153 teemme befo#w Imererese Changee f00tTW 186J50 158.317 113.949 123.885 106.500 63 846 66J01 49820 53.879 44304 3sf55 amaseene Changes m0(TW I. ant erran debt 86448 7al26 65,260 55132 48A64 40412 32,217 26A56 21553 19.968 17,884 Shortierus soars 8,544 4,331 6D2l 3.896 4J81 1408 1,969 ID66 412 ID85 1392 bescellanraus 1,173 I,271 IJ97 14489 7,151 1486 341 268 155 201 12a Alkmsenceforborvowedfunds send dunat emstructum-cmd t 158,990) 143 8931 094701 124 3781 122.997) (19.211) (la7501 15.9041 14D221 0 3561 (ID62) Total 88Je9 31A3e 33D08 44139 37199 27.295 23J77 21286 20,198 17.900 18.542 Ameaume before Camalasive Refeet fotATW 161,441 126.481 80.941 79.146 68J01 36,553 42.924 31.5f3 29,622 26604 20,213 i Cumulative EHeee of Chames im Revemos Rossomissem 00(7W -- - - - - 7.202 - - - - - 98se lesamme OO(TW 1$1,441 126.441 80,941 79,146 68J01 43,753 42,924 31,593 29,622 26404 20.213 Frederved and reefessase Sesek Dividend Requironomen f00(TW 11,917 11.570 18.193 13147 11418 10.573 8119 7.545 5.124 4D19 2.842 appsa..a s-enr-sammk f00(TW $ 129,514 8 104.911 8 62J48 8 65.397 8 56.283 8 11.180 8 34.205 8 240sa 5 24.49s 8 22385 8 17J'l EnredageFWr e- Share S 4.48 8 415 8 1 79 8 3.22 8 191 8 2DI S 2J6 C 1 95 8 Ile 8 2.41 8 195 Ranmaeiparadage se Flaed Charose 1 37 3 43 162 215 180 1 99 3D1 218 3 04 3.09 282 Reenra em h Bgaity 17J% 151 % 111 % 442% 13.2% 7IPlb 103 % 83% 10 0 % 105% 92% Capnealieselam Dass e temok Equie7 f00(TW 8 151,784 5 666.273 $ 535,192 8 459,313 8 414,852 8 373.224 8 327.260 8 282.106 8 244.938 8 215.512 8 188.M6 Awrase shares autssandin8 38A87,847 25.278,388 22,510,368 20J('2J23 19J73455 16.514.110 14.466.481 I2J24.179 10,817J04 9,370M4 8.920M8 Cash dmdende per share 8 2.63 8 117 8 2DI $ l.84 8 119 8 IJ6 8 111 8 164 8 136 5 1 51 8 147 Feederved esmok f00(TW 8 112Ase $ Il2D00 $ 112400 $ 112400 $ I12.000 $ 112D00 $ Il2D00 $ 112A10 8 91000 $ 72400 5 51D00 Dmdend mlunesients f00(TW 8 Sale 8 8.414 8 8.414 8 8.414 8 8.414 8 8.414 8 8.414 5 7,372 8 4.945 8 3.834 8 2450 Aurage dmdend rate 75% 73% 73% 73% 75% 73% 73% 7.4% 61% 60% 51% Pseforsed teesh pedessmabasii00(TW S 65,996 5 56.156 8 56J16 8 3.676 8 3A36 5 3.996 8 4,156 8 4Jte 8 4.476 8 4M6 8 4J96 Dmernd requiresients d00(TW S 8477 8 7,997 5 4.592 8 148 8 153 8 859 8 166 8 173 8 179 8 185 5 192 Aurage dmdend rate 14.1 % 14.2% 147% 40% 406 4(Pb 4D% 4D% 40% 404 40% FuefesommeSesek Ph"-) f00(TW $ 4tA47 8 45 833 8 50D00 8 50,000 8 50400 8 15400 8 25400 - - - - Dm*nd requerennents f00(TW 8 4 Ate 8 5.159 8 5.187 8 5.187 8 1851 8 2.000 $ 139 - - - - Awemge dmdend rate 38J0% 10J9% 1038% 10 30% 973% 8D0% SD0% - - - - M 1_ Debe (amelodies servene mmenriedselmues 8 1A48,117 8 e05444 8 767A16 5 662D5a 8 612.477 8 588.876 8 503D44 8 436J72 8 384.118 8 343J38 8 324341 trwense en debt f00(TW $ 86443 5 70.126 8 65.260 8 55.232 3 48.864 8 40412 8 32.217 8 26.856 5 2J.553 8 19.96a 8 17.884 Astrage intnest rate 949% 913% 940% 8 88 % 8.27% 738% 6.98 % 4 78 % 6J5% 6 12 % 588% i Othee Desa and n==4== Utaht7 Plant-Gmss additens f00(TW 8 402479 8 304436 8 207A38 8 373.418 8 156.867 8 234.818 8 188J21 8 168.285 8 126Dl4 8 89 818 8 461.179 Total Assetsf00aW $ SA14A41 8 2D71015 8 IJ91227 8 IAl7J81 8 1,538.978 8 IJ91A38 8 1,166J60 $ IDD8.814 8 841.502 8 736,510 $ 662.592 Book valur per shere 8 tsJ9 8 23 53 $ 21 96 8 2125 8 21.12 8 21J0 8 1190 8 2115 8 21 64 8 21.29 8 Alli Cassmon 5tock tqun71tstio 37.9% 39 5% 36D% 35 7% 36 1 % 3474 33 7% 34 2% 138% 355% 33 1% Connaean Stock Pnce Hath 8 30% $ 22 % $ 18 % $ 16 % $ 15 % S 18 % 8 19% $ 21 % 8 20 8 17% 5 18 %
!aw $ 14 % $ 16% $ 14 % 8 13 8 12% 8 14 % 8 16 8 18 % 8 16% $ 12 % $ 10 %
1 l
)
Eleserie talsa saamisaise 1984 1983 1982 1981 1980 19M 1978 1977 1976 1975 1974 Ravammes 00(Ts Resulennal 8 196415 $ 199.713 $ 16Q364 8 154.916 8 161.973 $ 121.170 $ 111,972 8 94343 8 84.202 8 79,507 8 62J14 Commercial 241A08 127,286 203904 192.526 176,505 148.120 124D83 107J38 94J06 81416 6a.273 kulustnal 186A16 91963 86.953 94.168 SQ821 76.956 64,489 SQ914 41105 34.478 afl.927 Publu stet and highway hshnna 11A04 IID15 9416 9432 8,325 7D43 6.228 4398 SA88 5,205 4.506 Pubhe authanews-pouer and hghnns 97 09 86 82 75 69 74 65 60 56 55 Ohrr electru utahtes 11,754 17478 12,631 11648 ,10.634 9.994 SJ69 6186 5315 3J65 2.968 Total 6%ept 549/44 473.554 463472 438,337 363,352 312.208 264444 132.876 206.427 169.043 Oilmv electne sewaurs 3409 3 626 1248 1.153 1.845 IJ32 1.579 1.409 f.421 IJ86 1,206 Total $ 570,548 S 553370 $ 475.a02 3 465.825 5 44Q182 8 365D84 8 311787 $ 266D53 $ 234297 8 207.813 5 170.249 s-Salesim Klamment Isauro f0017W Resulential 24tSAde 2Ji9D62 2,378.647 2,345446 2.689.467 2,254.962 1465J82 1.284.029 2,191859 2J0Q432 2D70,855 Cannemal 8,$79Jte 1498.936 A339473 1251,235 AM8,185 &l83J10 A382475 408Q589 2Aa9.888 1846D31 2.651 A17 andustnal 2.271 4 47 2D39J36 1,959.431 2,326.664 1141.924 2,381204 2,302.619 2,147,363 1,980330 IJ68J08 I.952.711 Pubis stat and hashway hghrms 67Je7 4 744 % 625 % 308 67,172 % 561 4 248 68,286 4 814 65.260 65.276 Pubiu aut:, .~ r-, and hshnna 1A87 1,563 IA57 1,634 1493 1.876 2J10 2J02 2457 2,914 3.513 Otherelectnc unhtes 24e475 41Q338 325.997 327D22 355.154 328D72 136.916 317.516 302.842 264.497 235 488 lbtal GASF,876 SJ36379 8472A10 8J18.509 8.591595 8.218385 8358.950 '.9[Il485 7,436.290 7.247.442 69796N) Average Nuenber of Custessere Residential 315,307 309.909 306J56 J04613 301.417 298.413 193.402 288,376 284.296 281J08 278.973 Comunctual deAte 44550 4Q065 39J58 38.984 38J72 38J13 38343 38D24 37Jo9 J7,575 Industnal 2 Ale 2,488 2,476 2 359 2.215 1942 2,121 2D84 2.065 2.049 2D63 Pubis street andlushway h&h uns 123 120 120 122 123 lu 123 112 125 126 128 Pubir authontus-power and hahres 11 Il 11 11 Il 11 12 Il 11 11 12 Other electnc etthers 17 19 13 13 14 14 16 16 15 13 13 Total 30eJ91 353.097 349 441 346.876 342.764 M9.075 M43a7 328.952 324 1 % 321 616 318764
. g,g,,
Awesse kwh per custaner e.317 SJ74 7J54 7J00 8.923 7,556 e.404 7,920 7J17 8.166 7,423 Averase vewnur per kwh-cents 7,489 7345 6742 6 604 6D23 5373 4541 4087 3 138 3 456 3009 I.aed Statistice Genersed ineti-kwh 00tTW IeJSke84 9,191332 9.138.284 14762,fL10 IQ095A01 7,535.591 5,581,224 8.44189 7A67.221 7,203J48 7,225,580 Purchased-kwh e0017s 12 Ate 12.559 11,146 IID51 11J61 79.993 211.991 188D82 194.250 19Qi98 161.600 Interchangedinetl-kwh 00(Tal (68U481 193 436 (539 9331 (1.908J'91 1902,5011 B.196,104 218.421 (182.6951 164.936 463.542 169 272 Total-kwh l00(Ts 9,518A7e 9397327 8.609497 s.864 702 9.205D61 s.811 688 9Dil A16 8451576 SD26.407 FA57.488 7,556.452 94saunues art hourly demand an kalowatts twinter! IJet,000 1.435/110 1,315400 1,304DII) 1.299D00 1J17/110 1.286JII) I,235D00 1.165D00 I.1611110 1.106.300 Manunum net hourly dernand m kaluwertsisummert 1,297 Ass 2J24400 2167D00 112.3,000 2,198.000 1.964400 2D97D00 1,9e0D00 1,920D00 1,902J00 1,907.200 Net sencratmg capalmhty in kilowarta isumunert 2,477A00 2,&34,000 2J74D00 2,884D00 2.838,000 2,5M000 2,56Q000 2475D00 2.361D00 2,B4D00 1224D00 Net capacuy is kilowerts isold purchasedisummert 151A00 4tD00 - (200D001 1150D001 - 95/11) Il0lD[Ill ll8D00 1(I)D[Il 148D00 stu per met hwb sencrated teJ56 14874 II,138 11.119 11,158 IIAM II,266 II,518 11331 11,585 llJ64 EW Data Salanes and essrs outTo S 92,95e $ 89.246 8 87,907 8 a0.239 5 73,602 5 68.465 8 54493 5 5&3a0 5 49444 5 45J05 8 38 614 Itasens and benehts ED(TW !! 377 15D60 14.473 12J59 I I A'O 9.947 6A61 FA78 7.132 6487 53%8
$ 146,317 3 104J06 8 102,380 $ 92.998 8 85.272 $ 78.412 5 61.554 8 64.258 5 56776 8 51192 $ 43972 Ninnberaf empinteeg December 31 SAa8 2,939 2.957 2,928 2.856 2,868 2J26 2,572 2,512 1484 2,477 Emiployes Doea- Adiesene Selanes and wspes s0tTW S 44,906 8 81D54 8 8Ql94 $ 72427 5 4 469 8 62.569 5 49J55 5 51J86 8 4 498 5 42J48 5 36.272 mensanns and tenrhis 00(Tsl 12.398 11792 11281 11410 IQ751 9282 & 287 7359 6354 6 174 5087 i 8 97,136 $ 94 850 $ 93.475 $ 84.237 8 77.220 $ 71.851 3 56D42 8 59.073 $ 53.245 8 48 922 3 41359 Number alemployeeg December 31 TASS 2J08 2J20 2,694 2,628 2459 2,577 2,414 2.382 1J79 2375 . *Exdudes data 7 elated to etnployees albcated to othe7 parrkipants in lointlycwned umts operated by KCPL
STOCKHOLDER INFORMATION DIVIDENDS AND STOCK PRICES TRANSFER AGENTS AND REGISTRARS Common Stock Price Range Common Stock D84 9 83 Manufacturers Hanover Trust Company Quarter High Iow High Law Securityholder Relations Dept. First $20% $16% $19h $18% 450 West 33rd Street Second 18 % 14 % 20 % 18 % New York, New York 10015 Third 18 % 14 % 21 % 18 Fourth United Missouri Bank of Kansas City, NA 20 % 17% 22% 16% Stock Transfer Dept' Common stock is listed on the New York Stock Exchange PO. Box 64 and the Midwest Stock Exchange. Kansas City, Missouri 64141 Common Stock Dividends Preferred Stock Common Stock dividends were declared as follows: United Missouri Bank of Kansas City, NA Quarter D85 D84 D83 Stock Transfer Dept. First $0.590 $0.560 $0.527 EO. Box 64 Second 0.590 0.527 Kansas City, Missouri 64141 Third 0.590 0.560 Fourth 0.590 0.560 Preference Stock and $17.05 Preferred Stock Kansas City Power & Light Company Preferred and Preference Stock Dividends Quarterly dividends on Preferred and Preference Stock 1330 Baltimore Avenue Kansas City, Missouri 64141 were declared in each quarter of 1984 and 1983 as (cllows: Cumulative Cumulative No Par Pmferred Stock ANNUAL REPORT ON FORM 10-K Preferred Stock Copies of the Company's annual report to the Sernes Amount Series Amount Securities and Exchange Commission on Form 3.80% $0.95 $10.70 $2.675
.00% 25 10-K will be provided without charge to any shareholder or beneficial owner of shares of the 435% 1.0875 17.05 4.2625 Company's stock upon written request to 4.50 % 1.125 Samuel E Cowley, Senior Vice President and 13.25 3.3125 7.72% 1.93 Secretary, Kansas City Power & Light Company, 1330 Baltimore Avenue, Kansas City, Missouri 64105.
Cumulative Pufennce Stock Series Ammant DIVIDEND REINVESTMENT AND
$8m $2m STOCK PURCHASE PLAN 12.75 3.1875 A Dividend Reinvestment and Stock Purchase Plan is available to all KCPL stockholders. Under the plan, share-Quarterly dividends on Cumulative Preferred Stock issued holders may invest in new common shares through automatic in 1984 were declared as follows, -
remvestment of dividends on common, preferred or prefer-ence stock and/or invest cash m amounts up to $1,000 quar-0""*
- terly. All stock purchases are free of brokerage commissions.
1984 $ 2.8 5 -
$2. 5 $3.2 75 St ek is purchased with reinvested dividends at a five percent discount from market price or with cash at market price.
All dividends paid by the Company in 1984 were deter- Under the Economic Recovery Tax Act of 1981, shareholders mined to be dividend income and no portion was considered may defer federal income taxes on reimested dividends of up a return of capital. to $750 annually ($1,500 for joint retums) until they sell the stock. The tax benefit is available through 1985. A prospec-tus for the plan is available by writing to the Secretary of the Company. m
r BOARD OF DIRECTORS - COMPANY OFFICERS"
- ARTHUR J.DOYLE* ROBERT H. WEST
- ARTHUR J. DOYLE,61 i Chairman of the Board, President, Chief Operating Officer Chairman of the Board,
+ President and Chief Executive Officer and Director President and Chief Executive t Butler Manufacturing Company Officer,1973 WILLIAM H. CLARK -manufacturer and marketer of President and Executive Director pre-engineered buildings systems, LOUIS C. RASMUSSEN,56 Urbanicagueof CreaterKansas City agricultural equipment and Executive Vice President and
-Community Service Agency energy management systems Chief Financial Officer,1974 CYRUS S. EATON, JR. ROBERT K. ZIMMERMAN SAMUEL P. COWLEY,50 Chairman of the Board Honorary Chairman of the Board Senior Vice President-Corporate Cyrus Eaton World Trade Affairs, Secretary and Chief Cleveland, Ohio Advisory Director Legal Officer,1979
-international trade ROBERT A.OLSON Retired Chairman of the Board J. ROBERT MILLER,60 WILUAM D. GRANT' Senior Vice President-System Chairman of the Board and Chief ' Member Executive Committee Operations and Chief Operating Executive Officer Officer,1971 Business Men's Assurance Company of America BERNARD J. BEAUDOIN,44
-insurance Vice President-Finance,1984 GEORCE E. NETTELS, JR. J. MICHAEL EVANS,39 President and Chief Executive Officer Vice President-System Power McNally Pittsburg Inc. and Operations,1983 Midwest Minerals,Inc.
Pittsburg, Kansas A. DRUE JENNINGS,38
-engineering, manufacturing, Vice President and General construction mineral processing Counsel,1980 and quarry operations JAMES L HOGAN,54 LOUIS C. RASMUSSEN Vice President Engineering,1984 Executive Vice President and Chief Financial Officer DONALD M. LANDES,53 Vice President-EUGENE M. STRAUSS
- Communications,1975 Chief Executive The Strauss Companies EDWIN B. McBURNEY,58
-insurance and related insurance Vice President-Transmission corporations and Distribution,1984 LINDA HOOD TALBOTT JOHN A.MAYBERRY,57 Executive Director Vice President-Commercial Clearinghouse for Midcontinent Operations,1971
{ Foundations
-information exchange for WILUAM H. MILLER,50 philanthropic activities Vice President Administration,1980 WILUS C. THEIS' RONALD G. WASSON,39 Chairman of the Board Vice President-Purchasing,1983 Simonds-ShieldsTheis Crain Company LEE F. MILLER,63
-grain merchants and Treasurer,1975 warehousemen NEIL A. ROADMAN,39 Controller,1980 t
f
" Listing includes age, title and year promoted to officer (l
b
t [ THE COMPANY AND ITS SERVICE AREA L Kansas City Power & Light Com- Service Area pany is a medium-size electric utility Most of the Company's business is
; and the corporate successor to one of derived from metropolitan Kansas City the world's first electric companies, which has experienced steady eco-generating electricity since 1882. nomic growth. A key factor is diversity Headquartered in downtown Kansas of the area's industry, reflected in an City, Missouri, the Company generates unemployment rate which has been
, and distributes electricity to about consistently below the national aver-
[~ 363,000 customers in a 4,700-square- age.The seven county 1984 average
- mile area located in all or portions of unemployment rate for Kansas City.
23 counties in western Missouri and was 5.7% against the national average
+
eastern Kansas. Population of the ser- of 7.5%. vice area is about 825,000. Customers Kansas City is considered to be the include 319,000 residences,41,000 world's agribusiness capital, centered commercial finns, and 2,700 indus- around the Kansas City Board of Trade. tries, municipalities and other electric Kansas Cityleads the nation in farm utilities. About 72% of total kwh sales equipment distribution, hard winter and 70% of total revenue are to wheat marketing,and manufacture of Missouri customers and the remainder aircraft instrument landing systems; to Kansas customers. ranks second in wheat flour produc-Steam is produced and distributed to tion and grain elevator storage capac-about 175 businesses in downtown - ity; and is the nation's thini largest Kansas City and accounts for about feeder cattle market and producer of two percent of total revenue. automobiles and trucks. - Kansas City has developed into a l Cenerating Capacity and the major retail market, ranking sixth MOKAN Pool among the thirty largest metropolitan The Company's 1984 total available areas in per capita retail sales.The city capacity was 2,644 mw, including is the nation's largest producer of 2,477 mw ofinstalled generating greeting cards and envelopes and is a capacity and 167 mw of equivalent maior center for rail and truck trans-capacity purchases. Its 1984 system portation, storage, and distribution and peak load was 2,297 mw and resulted for regional wholesale and service com-in a capacity margin of about 13.1%, panies. The metro area ranks fourth in 1 the equivalent of a reserve margin of the number of consulting engineers. 15.1%. In addition to being a member Kansas City is also a major convention of the Southwest Power Pool, a regional and entertainment center, ranking reliability council, KCPL is a member among the top 10 cities in number of of the MOKAN Pool, formed in 1962 conventions and related revenue.
' to share reserve capacity, coordinate Our service area's location, midway planning for additional generating between the geographic and popula-
, units and expand transmission lines. tion centers of the country,will Transmission connections with continue to play an important role in numerous utilities in Missouri, Kan- stimulating steady economic growth.
sas, Nebraska, Iowa and Minnesota . enhance the Company's system relia-bility and have made Kansas City a key center in the interconnected sys-tem which enables regional and inter-I regonal bulk power transactions among electric utility systems. I s i e' {l t
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