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Great Plains Energy Reports Full-Year And Fourth Quarter Results For 2012

Stocks in this article: GXP

Great Plains Energy (NYSE: GXP) today announced full-year 2012 earnings of $198.3 million or $1.35 per share of average common stock outstanding, compared with full-year 2011 earnings of $172.8 million or $1.25 per share.

Key drivers during 2012 were a full-year of new retail rates that became effective in 2011 and favorable weather. These drivers were partially offset by a decrease in weather-normalized demand and increased costs at the Wolf Creek nuclear unit.

“In 2012, we continued to deliver reliable service to our customers and accomplished several key strategic objectives that we expect will let us earn closer to our allowed return,” commented Terry Bassham, president and chief executive officer of Great Plains Energy. “Despite the challenging environment, we delivered solid financial and operating results and believe we are well positioned for the future.”

In early 2012, the company filed rate cases in Kansas and Missouri to maintain a reliable electrical system and make renewable energy and environmental investments needed to meet government mandates. The rate cases were completed with new retail rates effective in January 2013.

Bassham continued, “We executed on our commitment to implement new rates that provide an opportunity for continued investment in our system and improved returns.”

Today, Great Plains Energy also announced its 2013 earnings guidance range of $1.44 - $1.64 per share.

Great Plains Energy Full-Year:

GREAT PLAINS ENERGY INCORPORATED
Consolidated Earnings and Earnings Per Share
Year Ended December 31
(Unaudited)
                     
        Earnings per Great
Earnings Plains Energy Share
      2012   2011     2012   2011
(millions)    
Electric Utility $ 216.6 $ 199.9 $ 1.47 $ 1.44
Other   (16.7 )     (25.7 )       (0.11 )     (0.18 )
Net income 199.9 174.2 1.36 1.26
Less: Net loss attributable to noncontrolling interest   -       0.2         -       -  
Net income attributable to Great Plains Energy 199.9 174.4 1.36 1.26
Preferred dividends       (1.6 )     (1.6 )       (0.01 )     (0.01 )
Earnings available for common shareholders     $ 198.3     $ 172.8       $ 1.35     $ 1.25  
 

On a per-share basis, the primary drivers contributing to the $0.10 increase for the full-year 2012 versus 2011 were the following:

  • Approximately $0.19 from new retail rates in Missouri which became effective for Kansas City Power & Light Company (KCP&L) in May 2011 and for KCP&L Greater Missouri Operations Company (GMO) in June 2011;
  • The results for 2011 included a $0.09 loss from the effect of coal conservation activities and other related expenses due to Missouri River flooding, a $0.05 loss for an organizational realignment and voluntary separation program, a $0.05 loss from an extended refueling outage at Wolf Creek and a $0.03 loss representing KCP&L and GMO’s combined share of the impact of disallowed construction costs for the Iatan 1 environmental retrofit and Iatan 2 projects and other costs as a result of rate case orders issued in 2011 by the Missouri Public Service Commission (MPSC); and
  • An estimated impact of $0.03 from favorable weather.

The above factors were partially offset by the following:

  • Approximately $0.09 due to lower weather-normalized demand;
  • An estimated effect of $0.08 at Wolf Creek with $0.05 resulting from the unplanned outage during the first quarter of 2012, $0.02 of other operating and maintenance expense and $0.01 from an increase in amortization related to an extended refueling outage that began in late March 2011 and concluded in early July 2011;
  • Approximately $0.07 due to dilution from the issuance of common stock due to the settlement of Great Plains Energy’s Equity Units in June 2012;
  • Approximately a $0.06 decrease in other margin primarily driven by lower KCP&L Missouri wholesale sales margin along with increased fuel and transmission expense, partially offset by favorable purchased power expense at KCP&L in Missouri, where there is no fuel recovery mechanism; and
  • An estimated additional $0.04 from a variety of other factors including increased expenses from non-regulated activities and increased interest expense.

Common stock outstanding averaged 147.2 million shares, approximately 6 percent higher than full-year 2011 primarily due to the settlement of the purchase contracts underlying the Equity Units.

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