Westar Energy Signs Agreement To Purchase Power Plant
TOPEKA, Kan., Oct. 21 /PRNewswire-FirstCall/ — Westar Energy, Inc. today announced it has signed an agreement to purchase a 300 megawatt gas-fired power plant from ONEOK, Inc. for $53 million.
The Spring Creek power plant is located in southwest Logan County, Oklahoma. ONEOK built the plant in 2001.
Westar Energy plans to use the plant to meet its customers’ peak electric power needs during periods of high demand, such as during the hottest summer hours.
Earlier this year, Westar Energy announced a site study for future generation units, including a gas-fired plant to meet its demand during peak periods. Today’s transaction will help Westar Energy meet its customers’ demand for energy at a cost favorable to projections for building a new gas- fired peaking plant. Citing the ongoing need to plan for its customers’ future energy needs, Westar Energy said that it will continue its current site study for locations to build peaking and coal-fired power plants.
“Demand for electricity in Kansas continues to grow. The opportunity to purchase the Spring Creek plant fits into our plans for meeting our customers’ electric energy needs,” said Doug Sterbenz, senior vice president, generation and marketing.
Today’s transaction requires approval from the Federal Energy Regulatory Commission and is expected to be completed in 2006.
Westar Energy, Inc. is the largest electric utility in Kansas, providing electric service to about 659,000 customers in the state. Westar Energy has nearly 6,000 megawatts of electric generation capacity and operates and coordinates approximately 33,000 miles of electric distribution and transmission lines.
For more information about Westar Energy, visit us on the Internet at http://www.wr.com/.
Forward-looking statements: Certain matters discussed in this news release are “forward-looking statements.” The Private Securities Litigation Reform Act of 1995 has established that these statements qualify for safe harbors from liability. Forward-looking statements may include words like “believe,”"anticipate,”"target,”"expect,”"pro forma,”"estimate,”"intend,”"guidance” or words of similar meaning. Forward-looking statements describe future plans, objectives, expectations or goals. Although Westar Energy believes that its expectations are based on reasonable assumptions, all forward-looking statements involve risk and uncertainty. Therefore, actual results could vary materially from what we expect. Please review our Quarterly Report on Form 10-Q for the period ended June 30, 2005 for important risk factors that could cause results to differ materially from those in any such forward-looking statements. Any forward-looking statement speaks only as of the date such statement was made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement was made except as required by applicable laws or regulations.
Media contact: Karla Olsen, senior manager, media relations Phone: 888.613.0003 FAX: 316.261.6769 karla_olsen@wr.com Investor contact: Bruce Burns, director, investor relations Phone: 785.575.8227 bruce_burns@wr.com
Westar Energy, Inc.
CONTACT: Media, Karla Olsen, senior manager, media relations,+1-888-613-0003, or fax, +1-316-261-6769, karla_olsen@wr.com; or Investors,Bruce Burns, director, investor relations, +1-785-575-8227,bruce_burns@wr.com, both of Westar Energy, Inc.
Web site: http://www.wr.com/