Western Resources of Topeka, KS, said a stipulation andagreement had been reached with the Kansas Corporation Commission(KCC) staff, resulting in a proposed set of recommendations forsettlement in the company’s merger with Kansas City Power &Light. The agreement has been filed with the KCC. The City ofTopeka has agreed to, and the International Brotherhood ofElectrical Workers local 304 support the recommendations andstipulations. They include:
An electric rate moratorium of four years beginning when thetransaction closes.
Permission for the companies to include $300 million of theacquisition premium associated with the merger in the Kansas ratebase of Westar Energy (the entity to be created by WesternResources’ and KCPL’s regulated electric utility operations), aswell as the amortization of the $300 million in acquisition premiumgrossed up for state and federal taxes and ratemaking purposes. Forregulatory purposes, the acquisition premium is to be amortizedover a 36-year period beginning four years after the closing of thetransaction.
Western Resources and KCPL will be allowed to earn a deferredreturn of 9.5% on already planned, new generating plant additions,which are expected to be approximately $330 million. Westar Energywill make three rebates in the amount of $15 million each to itsKansas retail customers on July 1 of 2001, 2002, and 2003. WesternResources agrees to keep its corporate headquarters in Topeka.Westar Energy’s corporate headquarters will be in Kansas City.
©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.
© 2021 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |