Great Plains Energy Inc. has reached an agreement to settle all issues related to its application before the Kansas Corporation Commission (KCC) requesting approval of its pending acquisition of Aquila, Inc.

“With the expected approval in Kansas, the transaction will have received numerous federal and state approvals,” said Michael Chesser, chairman of Great Plains Energy. “We look forward to working with Missouri regulators to receive approval, clearing the final hurdle and bringing the benefits of this strong, regional utility to customers.”

The company reached a settlement with all of the parties to the Kansas proceedings. The settlement was signed and filed by the parties and will be considered by the KCC in a hearing on March 7.

Highlights of the Kansas settlement include:

• The Kansas portion of all costs and savings for the transaction will be retained by the company until an expected rate case in 2010. Rates after 2010 will reflect all of the savings and a set amount of transition costs.
• An agreement to not contest savings and costs associated with the combination of the companies.
• Recovery of the Kansas portion of transition costs, over a five-year period, will start with the 2010 rate change.
• An agreement for quality of service performance metrics.

Great Plains Energy submitted a revised proposal to the Missouri Public Service Commission that continues to provide increased short and long-term value to all stakeholders. Within that proposal, net customer benefits were accelerated and the company agreed not to seek to recover from customers the portion of Aquila’s high interest cost related to its prior non-regulated activities.

Overall, the acquisition will generate benefits and net customer savings of approximately $140 million by 2013 and $482 million by 2017.

“We believe that with the Kansas agreement and the Missouri proposal we have addressed concerns and showed our ongoing commitment to listen to, and collaborate with, key stakeholders in the community,” said Chesser. “By acquiring Aquila and its Missouri utility operating divisions, Great Plains Energy will be able to mitigate future price increases and provide top-tier reliability to customers.”

With this agreement and expected approval, only Missouri approval remains to finalize the acquisition.

The Aquila transaction will add approximately 300,000 electric utility customers to KCP&L’s existing base of approximately 505,000 customers.