Merger of Great Plains Energy, Westar Energy obtains approval
The Kansas Corporation Commission (KCC) and Missouri Public Service Commission (MPSC) approved last week the merger of Great Plains Energy Incorporated, which serves customers as KCP&L, and Westar Energy, Inc.
The holding company of approximately $15 billion equity value resulting from the stock-for-stock merger will be named Evergy, Inc.
Terry Bassham, chair and CEO of Great Plains Energy, will be president and CEO of Evergy.
“As neighbors, KCP&L and Westar have served customers in Kansas and Missouri for more than 100 years,” Bassham said. “This merger allows us to be even more efficient as we continue providing excellent customer service while maintaining competitive prices. We appreciate that regulators and shareholders recognize the value in combining the companies.”
For the immediate future, the company will continue to serve customers under the Westar and KCP&L brand names. Contact information, billing and account information, program enrollment and outage reporting will remain the same for KCP&L and Westar customers.
The utilities have committed to more than $100 million in customer bill credits, including $29 million upfront for Missouri customers and $75 million for Kansas customers over the first five years following the close of the merger. Once currently pending rate reviews are resolved, the companies will fix their base rates for up to five years in Kansas.
“Customers will benefit from bringing together two innovative teams of employees who are active in the communities we serve and take pride in providing excellent customer service,” Bassham said. “The increased scale and efficiency will deliver savings not possible without the merger.”
The companies expect a closing date in early June. The merger is the result of a two-year effort to combine the two companies.
