GREAT PLAINS ENERGY INCORPORATED | |||||||||||||
Consolidated Earnings and Earnings Per Share
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Three Months Ended September 30
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(Unaudited)
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Earnings per Great
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Earnings
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Plains Energy Share
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2011
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2010
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2011
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2010
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(millions)
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Electric Utility
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$ | 133.9 | $ | 136.2 | $ | 0.97 | $ | 0.99 | |||||
Other
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(7.3 | ) | (4.2 | ) | (0.06 | ) | (0.03 | ) | |||||
Net income
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126.6 | 132.0 | 0.91 | 0.96 | |||||||||
Less: Net income attributable to noncontrolling interest
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(0.1 | ) | - | - | - | ||||||||
Net income attributable to Great Plains Energy
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126.5 | 132.0 | 0.91 | 0.96 | |||||||||
Preferred dividends
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(0.4 | ) | (0.4 | ) | - | - | |||||||
Earnings available for common shareholders
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$ | 126.1 | $ | 131.6 | $ | 0.91 | $ | 0.96 | |||||
GREAT PLAINS ENERGY INCORPORATED
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Consolidated Earnings and Earnings Per Share
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Year to Date September 30
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(Unaudited)
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Earnings per Great
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Earnings
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Plains Energy Share
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2011
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2010
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2011
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2010
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(millions)
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Electric Utility
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$ | 189.9 | $ | 232.8 | $ | 1.37 | $ | 1.70 | |||||
Other
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(17.6 | ) | (16.1 | ) | (0.13 | ) | (0.12 | ) | |||||
Net income
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172.3 | 216.7 | 1.24 | 1.58 | |||||||||
Less: Net income attributable to noncontrolling interest
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- | (0.1 | ) | - | - | ||||||||
Net income attributable to Great Plains Energy
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172.3 | 216.6 | 1.24 | 1.58 | |||||||||
Preferred dividends
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(1.2 | ) | (1.2 | ) | - | (0.01 | ) | ||||||
Earnings available for common shareholders
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$ | 171.1 | $ | 215.4 | $ | 1.24 | $ | 1.57 | |||||
·
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An estimated effect of $0.09 from coal conservation activities and other related expenses due to Missouri River flooding;
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·
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Approximately $0.09 due to regulatory lag from higher property taxes and fuel transportation costs;
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·
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A combined impact of approximately $0.08 from the Company’s organizational realignment and voluntary separation program announced in the first quarter, as well as disallowances and other accounting effects resulting from the conclusion of KCP&L’s and GMO’s Missouri rate cases;
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·
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An estimated effect of $0.05 from the extended Wolf Creek refueling outage;
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·
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Approximately $0.04 impact from less favorable weather; and
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·
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Offset by approximately $0.02 due to higher weather-normalized demand and other items.
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·
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A $25.1 million increase in pre-tax gross margin. The increase was mainly due to the following:
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o
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Approximately $34 million in new retail rates which became effective for KCP&L in Kansas in December 2010 and Missouri in May 2011 and for GMO in June 2011; and
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o
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An estimated $16 million revenue impact from higher weather-normalized demand.
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·
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A $22.9 million increase in pre-tax other operating expense driven by the items below:
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o
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A $6.9 million increase in plant operations and maintenance expense primarily due to the addition of Iatan 2 to the generation fleet;
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o
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A $5.8 million increase in general taxes driven by property taxes principally related to Iatan 2;
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o
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A $3.9 million increase in pension expense resulting from KCP&L’s new retail rates effective December 2010 in Kansas and May 2011 in Missouri and GMO’s new retail rates effective June 2011; and
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o
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$3.4 million of expenses related to the impact of flooding.
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·
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A $19.4 million pre-tax reduction in depreciation and amortization expense driven by the following:
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o
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The exclusion in the 2011 quarter of $18.8 million of regulatory amortization to maintain credit metrics for KCP&L in Kansas and Missouri reflected in 2010’s third quarter. The regulatory amortization mechanism was in effect during the Comprehensive Energy Plan but ceased with the implementation of new retail rates for KCP&L in Kansas in December 2010 and Missouri in May 2011; and
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o
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$9.4 million from lower depreciation rates established in KCP&L’s recent Kansas and Missouri rate cases;
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·
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A $2.6 million decrease in non-operating income and expense primarily due to a decline in the equity component of Allowance for Funds Used During Construction (“AFUDC”) resulting from lower construction work in progress;
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·
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A $15.4 million increase in interest expense mainly due to the following:
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o
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A $6.5 million decline in the debt component of AFUDC resulting from lower construction work in progress; and
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o
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A $7.1 million decrease in Iatan 2 carrying costs which was in effect until the time the new retail rates went into effect in Missouri for KCP&L in May 2011 and GMO in June 2011; and
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·
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A $5.9 million increase in income tax expense due to higher pre-tax income.
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·
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Compared to 2010’s third quarter, weather accounted for an estimated decrease of 0.9 percent in MWh sales and about $11 million in retail revenue.
|
o
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Compared to normal, the positive impact from weather in the 2011 quarter was approximately $28 million.
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·
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On a weather-normalized basis, MWh sales were up an estimated 0.9 percent, with a 3.4 percent gain in commercial sector partially offset by declines of 0.8 percent and 0.7 percent in the residential and industrial sectors, respectively.
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Three Months Ended September 30
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2011
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2010
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Equivalent Availability - Coal Plants
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88 | % | 85 | % | ||
Capacity Factor - Coal Plants
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64 | % | 80 | % | ||
Equivalent Availability - Nuclear
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96 | % | 100 | % | ||
Capacity Factor - Nuclear
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98 | % | 100 | % | ||
Equivalent Availability - Coal and Nuclear
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89 | % | 87 | % | ||
Capacity Factor - Coal and Nuclear
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69 | % | 83 | % | ||
·
|
A $51 million increase in operating expense driven primarily by higher property taxes and plant operations and maintenance expense from the addition of Iatan 2 as well as higher pension expense, disallowed construction costs and other accounting effects from KCP&L’s and GMO’s Missouri rate cases and flood related expenses;
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·
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A $13 million pre-tax expense for the organizational realignment and voluntary separation program;
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·
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A $22 million decrease in non-operating income and expense due to lower AFUDC equity; and
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·
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A $17 million increase in interest expense due to lower AFUDC debt partially offset by higher Iatan 2 carrying costs.
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·
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A $2 million increase in pre-tax gross margin primarily driven by new retails rates at KCP&L and GMO mostly offset by the impact from an extended refueling outage at Wolf Creek, coal conservation activities and higher coal transportation costs;
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·
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A $43 million reduction in depreciation and amortization expense; and
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·
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A $16 million decrease in income tax expense due to lower pre-tax income.
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·
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Compared to the first nine months of 2010, weather accounted for an estimated decrease of about $16 million in retail revenue.
|
o
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Compared to normal, the positive impact from weather for 2011 year-to-date was approximately $54 million.
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·
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On a weather-normalized basis, MWh sales fell an estimated 0.9 percent with declines of 2.7 percent and 1.0 in the residential and industrial sectors partially offset by an increase of 0.6 percent in the commercial sector.
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Year to Date September 30
|
2011
|
2010
|
||||
Equivalent Availability - Coal Plants
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81 | % | 82 | % | ||
Capacity Factor - Coal Plants
|
66 | % | 76 | % | ||
Equivalent Availability - Nuclear
|
62 | % | 97 | % | ||
Capacity Factor - Nuclear
|
62 | % | 99 | % | ||
Equivalent Availability - Coal and Nuclear
|
78 | % | 85 | % | ||
Capacity Factor - Coal and Nuclear
|
65 | % | 79 | % | ||
Great Plains Energy Incorporated | ||||||||||||
Reconciliation of Gross Margin to Operating Revenues
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(Unaudited)
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Three Months Ended
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Year to Date
|
|||||||||||
September 30
|
September 30
|
|||||||||||
2011
|
2010
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2011
|
2010
|
|||||||||
(millions)
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Operating revenues
|
$ | 773.7 | $ | 728.8 | $ | 1,831.7 | $ | 1,787.7 | ||||
Fuel
|
(146.5 | ) | (127.3 | ) | (365.8 | ) | (333.2 | ) | ||||
Purchased power
|
(68.1 | ) | (68.0 | ) | (178.4 | ) | (171.4 | ) | ||||
Transmission of electricity by others
|
(8.6 | ) | (8.1 | ) | (23.1 | ) | (20.9 | ) | ||||
Gross margin
|
$ | 550.5 | $ | 525.4 | $ | 1,264.4 | $ | 1,262.2 | ||||