Great Plains Energy reaches agreement in Kansas for Aquila acquisition; files

Great Plains Energy Incorporated announced earlier this week that it has reached an agreement in principle to settle all issues related to its application before the Kansas Corporation Commission requesting approval of its pending acquisition of Aquila, Inc. Great Plains Energy also submitted a revised proposal to the Missouri Public Service Commission that continues to provide increased short and longterm value to all stakeholders.

"We remain committed to the region's total living environment by providing clean, affordable, reliable energy and good jobs for years to come," said Michael Chesser, chairman and Chief Executive Officer of Great Plains Energy. "We are confident that the agreement in Kansas and the revised proposal in Missouri strike the right balance between customers and shareholders and will create a strong regional utility."

Highlights:

* Net customer benefits have been accelerated.

* The acquisition will generate benefits and net customer savings of approximately $140 million by 2013 and $482 million by 2017.

* Great Plains Energy will not seek to recover the portion of Aquila's high interest cost related to its prior non-regulated activities from customers.

* Great Plains Energy shareholders see accretion beginning in 2009.

* Aquila shareholders become part of a financially stronger company, including investment grade credit rating and dividend payment.

* The acquisition creates a solid platform for creating shareholder, customer and community value now and into the future.

"We have listened to all parties and revised our acquisition proposal based on concerns raised during the December acquisition hearings. We believe the Kansas agreement and the Missouri proposal addresses these concerns and reflects 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."

The terms of the Kansas agreement remain confidential until the agreement is filed with the Commission. With the expected filing and approval in Kansas, the transaction will have received numerous state and federal approvals.

This would leave the Missouri Public Service Commission as the only regulatory approval needed 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.