Great Plains Energy Announces Agreement in Kansas for Aquila Acquisition and Files Its Revised Proposal in Missouri

Great Plains Energy Incorporated (NYSE: GXP) announced today that it has reached an agreement in principle to settle all issues related to its application before the Kansas Corporation Commission requesting approval of its pending acquisition of Aquila, Inc. (NYSE: ILA). Great Plains Energy also submitted a revised proposal to the Missouri Public Service Commission that continues to provide increased short- and long-term value to all stakeholders.

“We remain committed to the region’s total living environment by providing clean, affordable, reliable energy and good jobs for years to come,” said Michael Chesser, Chairman and Chief Executive Officer of Great Plains Energy. “We are confident that the agreement in Kansas and the revised proposal in Missouri strike the right balance between customers and shareholders and will create a strong regional utility.”

Highlights:

Net customer benefits have been accelerated.

The acquisition will generate benefits and net customer savings of approximately $140 million by 2013 and $482 million by 2017.

Great Plains Energy will not seek to recover the portion of Aquila’s high interest cost related to its prior non-regulated activities from customers.

Great Plains Energy shareholders see accretion beginning in 2009.

Aquila shareholders become part of a financially stronger company, including investment grade credit rating and dividend payment.

The acquisition creates a solid platform for creating shareholder, customer and community value now and into the future.

“We have listened to all parties and revised our acquisition proposal based on concerns raised during the December acquisition hearings. We believe the Kansas agreement and the Missouri proposal addresses these concerns and reflects our ongoing commitment to listen to, and collaborate with, key stakeholders in the community,” said Chesser. “By acquiring Aquila and its Missouri utility operating divisions, Great Plains Energy will be able to mitigate future price increases and provide top-tier reliability to customers.”

The terms of the Kansas agreement remain confidential until the agreement is filed with the Commission. With the expected filing and approval in Kansas, the transaction will have received numerous state and federal approvals. This would leave the Missouri Public Service Commission as the only regulatory approval needed to finalize the acquisition.

The Aquila transaction will add approximately 300,000 electric utility customers to KCP&L’s existing base of approximately 505,000 customers.

Investor Webcast:

Great Plains Energy will host a live audio Webcast on Tuesday, Feb. 26 at 7:00 a.m. CST/ 8:00 a.m. EST to brief investors and other interested parties on today’s filing and the status of the transaction. The Webcast may be accessed by dialing 1-800-257-7087 five to ten minutes prior to the scheduled start time.

The confirmation code is 11109555. For more information and to access the Webcast presentation, please visit the Investor Relations page of Great Plains Energy’s Web site at www.greatplainsenergy.com.

About Great Plains Energy

Great Plains Energy, headquartered in Kansas City, Mo., is the holding company for Kansas City Power & Light, a leading regulated provider of electricity in the Midwest, and Strategic Energy, LLC, a competitive electricity supplier. The company’s Web site is www.greatplainsenergy.com.

About Aquila

Based in Kansas City, Mo., Aquila owns electric power generation and operates electric and natural gas transmission and distribution networks serving nearly one million customers in Colorado, Iowa, Kansas, Missouri and Nebraska. More information on Aquila is available at www.aquila.com.

FORWARD-LOOKING STATEMENTS

Statements made in this release that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements regarding projected delivered volumes and margins, the outcome of regulatory proceedings, cost estimates of the comprehensive energy plan and other matters affecting future operations. In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the registrants are providing a number of important factors that could cause actual results to differ materially from the provided forward-looking information. These important factors include: future economic conditions in the regional, national and international markets, including but not limited to regional and national wholesale electricity markets; market perception of the energy industry, Great Plains Energy and KCP&L changes in business strategy, operations or development plans; effects of current or proposed state and federal legislative and regulatory actions or developments, including, but not limited to, deregulation, re-regulation and restructuring of the electric utility industry; decisions of regulators regarding rates KCP&L can charge for electricity; adverse changes in applicable laws, regulations, rules, principles or practices governing tax, accounting and environmental matters including, but not limited to, air and water quality; financial market conditions and performance including, but not limited to, changes in interest rates and in availability and cost of capital and the effects on pension plan assets and costs; credit ratings; inflation rates; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of terrorist acts; increased competition including, but not limited to, retail choice in the electric utility industry and the entry of new competitors; ability to carry out marketing and sales plans; weather conditions including weather-related damage; cost, availability, quality and deliverability of fuel; ability to achieve generation planning goals and the occurrence and duration of planned and unplanned generation outages; delays in the anticipated in-service dates and cost increases of additional generating capacity; nuclear operations; ability to enter new markets successfully and capitalize on growth opportunities in non-regulated businesses and the effects of competition; workforce risks including compensation and benefits costs; performance of projects undertaken by non-regulated businesses and the success of efforts to invest in and develop new opportunities; the ability to successfully complete merger, acquisition or divestiture plans (including the acquisition of Aquila, Inc., and Aquila’s sale of assets to Black Hills Corporation); the outcome of Great Plains Energy’s review of strategic and structural alternatives for its subsidiary Strategic Energy, L.L.C.; and other risks and uncertainties. Other risk factors are detailed from time to time in Great Plains Energy’s most recent quarterly report on Form 10-Q or annual report on Form 10-K filed with the Securities and Exchange Commission. This list of factors is not all-inclusive because it is not possible to predict all factors.