Great Plains Energy (NYSE: GXP) recently announced the completion of its acquisition of Aquila, Inc. (NYSE: ILA).
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Beginning Monday, July 14, Aquila’s Missouri electric utility business will operate under the brand name of Great Plains Energy’s subsidiary, KCP&L.
"Today is an important day for our region," announced Michael Chesser, Chairman and Chief Executive Officer of Great Plains Energy. "Our acquisition of Aquila will create significant savings for both Aquila and KCP&L customers. In today’s rising-cost environment, this transaction is just one part of our plan to maintain affordable energy prices for the customers and communities we serve."
Families, businesses and communities are all facing the impact of higher oil prices, food prices and raw material costs. Utilities face these same cost pressures. Savings resulting from the integration of KCP&L and Aquila operations are expected to generate approximately $198 million of customer savings by 2013 and $547 million by 2017. These savings will be passed on to customers and will help reduce future rate increases.
With the addition of Aquila’s 300,000 Missouri electric utility customers in adjacent service territories, the companies will provide electric service to approximately 800,000 residential and business customers in 47 counties in Missouri and Kansas. Customers should experience seamless service during the integration of Aquila and KCP&L.
One change all customers will notice is the new KCP&L logo, which was publicly unveiled recently as part of the beginning of the newly integrated operations of the companies. The design of the logo was created to convey movement and energy, reflecting the company’s innovative and proactive approach to meeting tomorrow’s energy needs.
In connection with the transaction, KCP&L hired approximately 900 Aquila employees, raising the number of employees at KCP&L to nearly 3,100.
"We are proud to welcome Aquila’s employees and customers to the KCP&L family," Chesser said. "The integration of KCP&L and Aquila operations creates a solid platform of customer, community and shareholder value and is a critical part of our plan to provide clean, affordable and reliable energy to our region for generations to come."
It is important to note new customer contact information, effective immediately:
To report emergencies or outages: 1-888-LIGHT-KC (544-4852).
For service-related needs or billing questions: Metropolitan Kansas City: (816) 471-KCPL (5275); Toll-free: 1-888-471-KCPL (5275).
Complete account- and service-related assistance, outage reporting and bill payment information are also available online at www.kcpl.com. For more information about the acquisition, please visit www.oneregionalutility.com.
As a result of the acquisition, each outstanding share of Aquila’s common stock was converted into the right to receive 0.0856 of a share of Great Plains Energy common stock and $1.80 in cash. Immediately prior to the Aquila acquisition, Black Hills Corporation (NYSE: BKH) acquired from Aquila its electric utility in Colorado and natural gas utility properties in Colorado, Kansas, Nebraska and Iowa for approximately $909 million in cash, after estimated closing adjustments. Aquila shareholders holding physical stock certificates will receive share exchange instructions in the next few weeks.