Aquila, Inc. on Friday received notice from the Kansas Corporation Commission that the Commission has approved the sale of the company's Kansas electric properties to a group of utilities known collectively as Mid-Kansas Electric Co. Proceeds from the transaction will be used to reduce debt and other liabilities.
Mid-Kansas Electric Company, a coalition of six consumer-owned cooperatives that also own Sunflower Electric Power Corporation, a regional generation and transmission service provider, will purchase the assets and liabilities of Aquila's electric operations in Kansas for a base purchase price of $255.2 million, plus working capital and subject to net plant adjustments. The closing date is expected to be April 1, 2007.
"We are pleased that the KCC has approved this transaction," said Aquila Senior Vice President and COO Keith Stamm. "We can now begin the transition of the operations to MKEC in order to successfully close our fourth utility sale."
The Kansas electric sale marks the final of four transactions announced in September 2005. Since then, the company has sold its Michigan, Minnesota and Missouri natural gas operations. Aquila has used the proceeds from the transactions in reducing debt and other liabilities.
Based in Kansas City, Missouri, Aquila owns electric power generation and operates electric and natural gas utilities serving nearly 1 million customers in Colorado, Iowa, Kansas, Missouri and Nebraska. More information is available at aquila.com.