Great Plains Energy (NYSE: GXP) today announced full-year 2011 earnings of $172.8 million or $1.25 per share of common stock outstanding, compared with full-year 2010 earnings of $210.1 million or $1.53 per share.
Lower earnings for the year were primarily due to coal conservation activities and other expenses associated with Missouri River flooding, regulatory lag from higher property taxes and fuel transportation costs and an organizational realignment and voluntary separation program. Additionally, earnings were impacted by disallowances and other accounting effects resulting from the conclusion of Kansas City Power & Light Company’s (“KCP&L”) and KCP&L Greater Missouri Operations Company’s (“GMO”) Missouri rate cases and an extended Wolf Creek refueling outage. Results for the year were also driven by a decrease in weather-normalized demand and summer weather that was not as warm as the prior year.
Despite the challenges, Great Plains Energy realized significant accomplishments in 2011. These successes included achieving top-tier customer satisfaction, receiving recognition for reliability, introducing initiatives to streamline its business and expanding its renewable energy portfolio to nearly 600 megawatts.
“In 2011, we concluded the Comprehensive Energy Plan and maintained our focus on providing top-tier service to our customers,” stated Mike Chesser, Chairman and CEO of Great Plains Energy. “We introduced initiatives to right-size our Company that will reduce costs and enhance operational efficiency. Despite the impact from Missouri River flooding and economic headwinds, we continued building our solid foundation to meet the needs and expectations of our customers and other stakeholders for years to come.”
During the fourth quarter 2011, Great Plains Energy affirmed earnings guidance for 2012 of $1.35 to $1.55. Due to slower than expected growth in customer demand and soft wholesale energy market conditions, the Company is lowering its 2012 earnings guidance from $1.35 to $1.55 per share to $1.20 to $1.40 per share.