SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 2, 1999
(March 2, 1999)
KANSAS CITY POWER & LIGHT COMPANY
(Exact name of registrant as specified in its charter)
1-707
(Commission file number)
MISSOURI 44-0308720
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1201 Walnut
Kansas City, Missouri 64106
(Address of principal executive offices)
(816) 556-2200
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS
Hawthorn Generating Station
Attached is a press release concerning the Company's
Hawthorn Station issued on March 2, 1999.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibit
Number
-------
99 Press Release issued March 2, 1999.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
KANSAS CITY POWER & LIGHT COMPANY
/s/Jeanie Sell Latz
Senior Vice President-Corporate Services
Date: March 2, 1999
<PAGE>
Exhibit 99
[KCPL Logo] P. O. Box 418679
Kansas City, MO
641410-9679
(816) 556-2200
www.kcpl.com
FOR IMMEDIATE RELEASE
KCPL ESTIMATES FINANCIAL IMPACT OF PLANT EXPLOSION; PLANS FOR FUTURE
KANSAS CITY, MO. (MARCH 2, 1999) -- Kansas City Power & Light
(NYSE: KLT) estimates a net increase in costs of between $6.5
million and $11.5 million (before tax) for the year 1999, as a
result of the February 17th boiler explosion at the company's 479-
megawatt Hawthorn Generating Station's Unit #5. The company's
total accredited generating capacity is 3,701 mw.
This estimate is based on increases of approximately $25 million
to $30 million in fuel and purchased power costs and reduced
sales of bulk power, assuming normal weather and operating
conditions. KCPL anticipates that the impact of these higher
costs will be offset by the following estimated savings:
- - $11.5 million in reduced O&M costs, including normally
scheduled maintenance at Hawthorn and rescheduled
maintenance outages at other plants
- - $ 5.0 million in insurance coverage for replacement power
- - $ 1.0 million in reduced Hawthorn depreciation
- - $ 1.0 million in rail management savings
These impact estimates are for 1999 only. The company will
continue to evaluate any impact on future years.
Though investigation of the cause of the explosion is still under
way, preliminary indications are that the damage was caused by an
explosion of accumulated gas in the boiler's firebox. The
company has insurance coverage for this type of event, with
limits of $300 million. What caused the ignition of the gas is
not yet known. The boiler was not operating at the time of the
explosion, and there were no injuries.
The company is evaluating several alternatives regarding the
replacement of the power generated by Unit #5 and is confident
that it can secure sufficient power to meet its customers' energy
needs during this summer and beyond. On average, Hawthorn Unit
#5 generated approximately 2 million megawatt hours each year.
The company plans to make up this lost generation by:
- - redirecting approximately 1.1 million mwh of annual bulk
power sales for use by KCPL's retail customers
- - rescheduling planned maintenance outages at other plants to
maximize available generation
- - placing Hawthorn #6, a 142 mw gas-fired combustion turbine,
into commercial operation this spring
Utilizing this strategy, the company estimates a remaining energy
requirement of approximately 350,000 mwh, which will be obtained
through a combination of firm and spot market purchases.
<PAGE>
Even prior to the explosion, the company was finalizing contracts
to bring on line an additional 294 mw of capacity by the summer
of 2000, in addition to Hawthorn 6. The capacity projects
involve repowering an existing unit and adding two new combustion
turbines. Plans call for these projects to be located at the
Hawthorn site. The company also plans to permanently replace the
lost capacity at Hawthorn and is exploring size, fuel source and
technology alternatives.
The company does not anticipate rate increases as a result of the
Hawthorn explosion.
Work began yesterday to dismantle the damaged boiler. The work
will occur in two phases, with the initial work focusing on
stabilization of the explosion site and removing structures with
the greatest potential of shifting or falling. This is expected
to take several days. The remaining demolition of the boiler is
expected to take several additional weeks .
XXXX
Media Contact: Pam Levetzow Financial Contact: David Myers
816-556-2926 816-556-2312
Kansas City Power & Light Company is a leading provider of energy
and related products and services to a growing and diversified
service territory encompassing metropolitan Kansas City and parts
of eastern Kansas and western Missouri. KLT Inc. and Home
Service Solutions Inc., wholly owned subsidiaries of KCPL, pursue
unregulated business ventures nationally, capturing growth
opportunities in markets outside the regulated utility business.
CERTAIN FORWARD-LOOKING INFORMATION
Statements made in this release which are not based on historical
facts are forward-looking and, accordingly, involve risks and
uncertainties that could cause actual results to differ
materially from those discussed. Any forward-looking statements
are intended to be as of the date on which such statement is
made. In connection with the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, we are
providing a number of important factors that could cause actual
results to differ materially from provided forward-looking
information. These important factors include:
- - weather conditions
- - future economic conditions in the regional, national and
international markets
- - state, federal and foreign regulation and possible
additional reductions in regulated electric rates
- - financial market conditions, including, but not limited to
changes in interest rates
- - inflation rates
- - increased competition, including, but not limited to, the
deregulation of the United States electric utility industry,
and the entry of new competitors
- - ability to carry out marketing and sales plans
- - ability to achieve generation planning goals and the
occurrence of unplanned generation outages
- - nuclear operations
- - ability to enter new markets successfully and capitalize on
growth opportunities in nonregulated businesses
- - unforeseen events that would prevent correcting internal or
external information systems for Year 2000 problems
- - adverse changes in applicable laws, regulations or rules
governing environmental (including air quality regulations),
tax or accounting matters
- - the proposed Western Resources Inc. (Western Resources)
merger
This list of factors may not be all-inclusive since it is not
possible for us to predict all possible factors.
