Aquila Inc., formerly UtiliCorp United, announced that it will reduce its workforce as part of a corporate restructuring program that will lead to seven state-focused utility operations. The state-based organizational structure is designed to provide greater operational accountability within Aquila’s seven-state utility operations that serve 1.3 million natural gas and electricity customers in Missouri, Kansas, Nebraska, Colorado, Iowa, Michigan and Minnesota.

“A state-based leadership structure will allow us to more effectively address operational and community issues in the individual states,” said Keith Stamm, COO of Aquila’s Global Networks Group. “Our goal is to continue supplying safe, reliable energy supplies while creating a stronger focus on improving customer service.”

As a result of the restructuring, some of the company’s Kansas City-based centralized staff will relocate into state operations. The realignment is expected to result in an overall reduction in workforce, primarily positions at the central headquarters in Kansas City. The level of reductions will be determined as state structures are formed in the next few weeks, Stamm said. All new state structures will be in place by July 31.

Prior to 1995, Aquila operated in a state-based organizational structure. Its operations are comprised of utilities acquired since 1985 when the company began expanding from its original Missouri Public Service base. In 1995, Aquila consolidated the leadership and support staff functions into a centralized corporate structure to build a unified corporate culture among the various utilities and to create efficiencies and standardization in technology and basic operating procedures.

“Since we have achieved the goal of standardizing the core operating and financial systems, as well as corporate governance policies, it’s a natural progression to now place additional responsibility within the state operations,” said Stamm. “Leadership in the state operations is best equipped to make many business decisions based on their customer, community and regulatory knowledge. Our utilities will continue to provide a strong foundation for Aquila, and we believe these steps will help ensure their economic well-being in the future.”

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