Western Resources and Kansas City Power & Light Company Form Westar Energy

In separate meetings, the shareowners of Western Resources and Kansas City Power & Light Company approved a merger agreement that will result in the formation of Westar Energy, a new electric company.

According to the agreement, Westar Energy will be created from the KGE and KPL electric operations of Western Resources and the electric operations of KCPL.

Westar Energy will continue to operate under the brand names of KCPL, KGE, and KPL. The combined company will have more than one million electric customers in Kansas and Missouri, $8.2 billion in assets and more than 8,000 megawatts of electric generation resources.

Regulatory filings for approval of the transaction have been made with the Kansas Corporation Commission (KCC) and the Missouri Public Service Commission (MPSC). Filings with the Federal Energy Regulatory Commission and Nuclear Regulatory Commission are expected soon. The transaction is expected to close in the first half of 1999 subject to receipt of necessary consents and approvals.

Western Resources is a consumer services company with interests in monitored security and energy. Western's utilities, KPL and KGE, provide approximately 614,000 customers in Kansas with electric service.

Kansas City Power & Light Company provides electric power to a growing and diversified service territory encompassing metropolitan Kansas City, parts of eastern Kansas and western Missouri. KCPL is a low-cost producer and leader in fuel procurement and plant technology. KLT Inc., a wholly owned subsidiary of KCPL, pursues opportunities in nonregulated, primarily energy-related ventures.