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Great Plains Energy Announces Completion of Strategic Energy Sale

Posted on: Monday, 2 June 2008, 12:22 CDT

Great Plains Energy Incorporated (NYSE: GXP) today announced it has completed the sale of Strategic Energy, L.L.C. to Direct Energy Services, LLC ("Direct Energy"), a subsidiary of Centrica plc (LSE: CNA). Direct Energy acquired from Great Plains Energy all of the outstanding ownership interests in Strategic Energy, L.L.C. for $300 million in cash, subject to closing adjustments and the payment of certain pre-closing obligations to Strategic Energy employees. The sale was initially announced on April 2, 2008.

"We are very pleased that we were able to complete the sale of Strategic Energy within two months of public announcement," commented Great Plains Energy's Chairman and CEO Mike Chesser, "We now look forward to concentrating our focus on the Company's regulated business, including closing our acquisition of Aquila, which is awaiting regulatory approval in Missouri."

Proceeds from the sale of Strategic Energy will be used to offset some of Great Plains Energy's anticipated financing needs in 2008. Beginning in the second quarter Strategic Energy's results will be reported as discontinued operations in Great Plains Energy's financial statements.

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. The company's Web site is www.greatplainsenergy.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 credit spreads 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 and environmental projects; 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 retirement 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); 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.

Source: Business Wire

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