June’s heat drove up residents’ utility bills, but a merger deal weighed on second-quarter earnings at the parent company of Kansas City Power & Light Co.
Great Plains Energy Inc., based in Kansas City, reported Thursday that it earned $32 million in April, May and June, down 28 percent from the $44.4 million earned in those months last year.
The recent quarterly profit equaled 20 cents a share. Profits equaled 28 cents a share in the second quarter a year ago.
The difference was Great Plains’ $8.6 billion deal to buy Topeka-based Westar Energy Inc., which is the largest power company in Kansas.
Great Plains said that the deal struck in late May led to $5 million in legal, advisory and consulting fees, $4.7 million in costs tied to financing arrangements for the deal, and $77 million in mark-to-market losses on an interest rate swap it entered into in conjunction with the Westar acquisition financing.
Ignoring the costs tied to the pending Westar deal, Great Plains would have earned $85.6 million, its announcement said. The difference stemmed from June’s steamy weather that drove up demand for power. Great Plains measured the heat’s impact as equal to a “31 percent increase in cooling degree days” compared with the second quarter last year.
Revenues in the quarter were $670.8 million, up from $609 million a year ago.
Great Plains owns KCP&L, which is seeking a rate increase for Missouri customers.
On its Westar merger, Great Plains said it has submitted regulatory filings needed to gain approval for the deal. It expects the purchase to be completed next spring.