KANSAS CITY, Mo., Sept. 7, 2016 /PRNewswire-USNewswire/ -- The
Kansas City Area Development Council (KCADC) announced it is
leading robust regional support for Great Plains Energy
Incorporated (NYSE: GXP), the parent company of KCP&L, in its
acquisition of neighboring Westar Energy, Inc. (NYSE: WR). The
$12.2 billion deal will add capacity
and cost savings for residents and businesses in the 18-county, two
state Kansas City region.
"Strong, locally-owned utilities are a cornerstone of healthy
regional economies," said Tim
Cowden, President and CEO, KCADC, the umbrella economic
development organization for the Kansas
City region. "The combination of KCP&L and Westar Energy
will ensure good jobs stay here and will allow us to maintain our
competitive electric rates, one of our region's distinct advantages
and one of the most important considerations for site selection
consultants and companies looking to relocate to our area."
Once the transaction is complete, the new utility will have more
than 1.5 million customers in Kansas and Missouri, nearly 13,000 megawatts of
generation capacity, almost 10,000 miles of transmission lines and
more than 51,000 miles of distribution lines. In addition, more
than 45 percent of the combined utility's retail customer demand
can be met with emission-free energy.
"Bringing together the senior leadership of KCP&L and Westar
Energy ensures that they will remain engaged in Kansas and Missouri," said Cowden. "Local leadership
living, working and contributing in our community ensures our
economic development efforts will continue to have their full
attention. Their involvement and support of our efforts is critical
to the future economic health of our region."
The transaction is on track and expected to close in the second
quarter of 2017. The downtown Kansas
City, Missouri, and downtown Topeka, Kansas, headquarters will remain after
closing.
"We are extremely fortunate that Westar Energy found a
neighboring buyer that understands and appreciates firsthand the
regional needs of individual and corporate customers, especially
with regard to business retention and attraction efforts in the
heartland," said Matt Pivarnik,
president and CEO, GO Topeka. "Both
of these outstanding companies share a reputation for doing the
right thing and going above and beyond with regard to their
commitment to employees, safety, quality, the environment and
corporate philanthropy."
KCP&L and Westar each have been serving customers in
Kansas and Missouri for more than 100 years and currently
jointly own and operate the Wolf Creek Nuclear Generating Station,
as well as the La Cygne and
Jeffrey power plants. With the addition of Westar's generation
fleet, Great Plains Energy will have a more diverse and sustainable
generation portfolio.
In addition, among investor-owned utilities in the United States, the combined company will
have one of the largest portfolios of wind generation in the
country. KCP&L and Westar each have made significant
commitments to harvesting the general wind Kansas provides. KCP&L was the first
utility in the country to own and operate a commercial-scale wind
farm in the state of Kansas at its
148.5 megawatt Spearville Wind Generation Facility. Westar Energy's
multiple wind farms will provide 32% of the utility's retail
electricity by the end of 2016.
"A robust portfolio of renewable energy is increasingly
important to companies when they are looking to locate facilities,"
said Cowden.
Great Plains Energy has an established track record of
successful integration with adjacent electric utilities. In 2008,
Great Plains Energy completed its acquisition of Aquila, an
electric utility serving customers in adjacent areas of
Missouri. That successful
acquisition has delivered – and continues to deliver – significant
savings for customers, which have exceeded initial
expectations.
Several regional economic development agencies have joined KCADC
in their support of KCP&L's acquisition of Westar Energy and in
recognition of the enormous economic development benefits that this
transaction will have for the region. Those organizations
include:
Missouri
- City of Belton
- Cass County Corporation for Economic Development
- Clinton Chamber of Commerce
- De Soto Economic Development Council
- Economic Development Corporation of Kansas City
- Grain Valley Chamber of
Commerce
- Independence Council for Economic Development
- Lee's Summit Economic Development Council
- Northland Regional Chamber of Commerce
- City of Raytown
- Platte County Economic Development Council
- St. Clair County Economic Development
- St. Joseph Economic Development Partnership
- Economic Development Sedalia-Pettis County Economic
Development
Kansas
- Abilene Area Chamber of
Commerce
- Butler County Community Development
- Regional Development Association of East Central Kansas
(Emporia)
- El Dorado Chamber of
Commerce
- Emporia Chamber of
Commerce
- City of Fort Scott Economic Development
- Harvey County Economic Development Council
- Junction City Area Chamber of
Commerce
- Leavenworth County Development Corporation
- City of Parsons Economic Development
- Pittsburg Area Chamber of
Commerce
- GO Topeka
- Wyandotte Economic Development Council
About Greater Kansas
City
Home to 2.5 million people, the Kansas City region offers the benefits of more
than 50 unique communities and 18 counties in Kansas and Missouri. The area ranks as the number one
rail center in the U.S., the country's third largest trucking
center and one of the largest Foreign Trade Zones in the U.S.
The Kansas City region is recognized as "America's
Creative Crossroads" as a center for technology and
artistry.
About KCADC
The Kansas City Area Development Council
serves the 18-county, two-state Kansas
City area by marketing the region's business and lifestyle
assets to companies around the world. Working closely with its 50+
state, county and community partners and its more than 250
corporate partners across the region, KCADC has attracted companies
pledging to create more than 60,000 new jobs over its 40-year
history. Visit thinkkc.com for more information.
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SOURCE Kansas City Area Development Council