News Release

June 20, 2005

Public Hearing Set For KCP&L’s Five Year Construction Plan

The Kansas Corporation Commission (KCC) has scheduled a public hearing on Kansas City Power & Light’s (KCP&L) application to invest approximately $1.2 billion in the construction of a new power generation plant, environmental upgrades to existing generation facilities and energy efficiency programs for consumers. The company’s five-year plan also includes the ability to increase rates annually during the five-year period, if necessary, to maintain a good credit rating.

On May 18, 2004, KCP&L filed a request with the KCC to investigate the future supply, delivery and pricing of the electric service provided by KCP&L in Kansas. On April 27, 2005, KCP&L, KCC staff, and interveners, Kansas Hospital Association (KHA) and Sprint, reached an agreement that was filed with the KCC for consideration and approval. A copy of the agreement can be obtained from the Commission’s website at www.kcc.state.ks.us under Docket No. 04-KCPE-1025-GIE. The agreement includes the following provisions:

1. KCP&L will make approximately $1.2 billion in energy infrastructure investments during the next five years, which will include:
   • Building Iatan 2, a new coal-fired generation plant costing $733 million to be located in Western Missouri and expected to be completed by June 2010;
   • Adding to existing transmission and distribution facilities costing $42 million;
   • Providing environmental upgrades at KCP&L’s current coal plants, Iatan 1 and LaCygne 1, costing $271 million; and
   • Constructing 100 megawatts of wind power generation to be completed by 2006, costing $130 million;
2. KCP&L will develop consumer programs, primarily targeting energy efficiencies, spending around $42.3 million;
3. KCP&L may file rate cases each year during the five-year term of the plan. The agreement specifies that KCP&L will be allowed an Energy Cost Adjustment on customer bills, a mechanism for the recovery of fuel and purchased power costs. These are costs over which the KCC has no control and on which KCP&L earns no profit.

In addition to agreements on other accounting issues, the agreement allows KCP&L to collect from its customers "Contribution In Aid of Construction", if necessary, for the company to meet certain financial standards to maintain its investment grade credit rating. The company will not be allowed to earn a rate of return on these contributions. These contributions can only be requested by KCP&L when it files a rate case during the plan period.

Although the specific dollar impact of the plan is unknown at this time, a rate increase to fund this proposal is estimated to be a total of 15 – 20 percent or around 3 – 4 percent annually during the five-year plan period. No rate change can occur without KCP&L filing a request with the Commission. If the filing occurs, notice of the proposed rate adjustment will be provided to KCP&L customers and an opportunity to provide comment will be granted.

PUBLIC HEARING

The Commission has scheduled a public hearing concerning the proposed agreement. The hearing provides an opportunity for customers to testify before the Commission and will consist of two parts. First, there will be a question and answer period to allow customers to ask KCC staff and company representatives questions about the agreement. In the second part of the hearing, customers may make comments to the Commissioners about the agreement. The public hearing is scheduled as follows:

• 7:00 p.m., Thursday, June 23, 2005, Overland Park City Hall, Council Chamber, 8500 Santa Fe Drive, Overland Park, Kansas

The Commission will accept written comments from the public through July 7, 2005. Comments regarding the agreement should reference Docket No. 04-KCPE-1025-GIE and may be emailed to public.affairs@kcc.state.ks.us or mailed to the Kansas Corporation Commission, Office of Public Affairs and Consumer Protection, 1500 SW Arrowhead Road, Topeka, KS 66604. For more information about the agreement or hearings, contact the Commission’s Office of Public Affairs and Consumer Protection at 1-800-662-0027, or in Topeka call 271-3140.

EVIDENTIARY HEARING

An evidentiary hearing took place June 17, 2005. At this hearing, KCC staff, KCP&L representatives, and interveners such as the Citizens’ Utility Ratepayer Board (CURB), KHA and Sprint presented their testimony regarding the agreement to the Commission.

ADDITIONAL INFORMATION

Any person requiring special accommodations at the hearing site under the Americans With Disabilities Act needs to give notice to the KCC.