Ringing in the new year, UtiliCorp United announced that itcompleted its $190 million merger with St. Joseph Light & Power onDec. 31, 2000. The union, which has experienced a bumpy ride since itsinitial announcement in March 1999, creates Missouri’s fourth largestgas distributor and third largest electricity distributor (see DailyGPI, March 8, 1999).

Under the merger agreement, St. Joseph’s stockholders of recordon Dec. 29 will receive 0.7933 shares of UtiliCorp common stock foreach of their shares in St. Joseph Light & Power. UtiliCorpsaid shareholders will be notified by mail of the transfer. St.Joseph’s 66,000 gas and electricity customers in 10 counties inMissouri will continue to be served by the company as a unit ofUtiliCorp.

“We are confident that customers will be well served by thiscombination,” said Robert K. Green, UtiliCorp’s president. “Themerger joins two of Missouri’s most experienced utilities, whichhave adjacent territories.”

In September, the merger was nearly called off due to a fire thatoccurred at St. Joseph’s Lake Road Power Plant in June. UtiliCorpquestioned whether the incident was a breach of contract under thecompanies’ merger agreement (see Daily GPI, Sept. 22, 2000).

Including this merger, UtiliCorp now serves more than 300,000gas and electricity customers in the state of Missouri.

In other merger news, UtiliCorp announced late yesterday that ithad notified Empire District Electric Co. that the pending mergeragreement had been terminated due to the failure in obtaining thenecessary regulatory approvals by Dec. 31, 2000. Valued at $800million when the agreement was first announced in May 1999, themerger would have brought UtiliCorp approximately 145,000electricity customers in southwest Missouri and five Kansas,Oklahoma and Arkansas counties that adjoin the state.

“The significant remaining uncertainty of this lengthyregulatory process prevents any reasonable expectations that themerger could ever be completed with balanced benefits accruing toEmpire’s customers and the shareholders of both companies,” saidGreen.

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