The delayed merger of Great Plains Energy Incorporated and Westar Energy, Inc. in Kansas City has been approved by both regulatory bodies in Kansas and Missouri. And the merger will create a company with a new name—Evergy, Inc.
The Kansas Corporation Commission and the Missouri Public Service Commission approved the stock-for-stock merger of equals which created a holding company of nearly $15 billion equity value.
The new company will conduct business by the operating companies known as Westar and KCP and L.
“As neighbors, KCP&L and Westar have served customers in Kansas and Missouri for more than 100 years. This merger allows us to be even more efficient as we continue providing excellent customer service while maintaining competitive prices,” said Terry Bassham, chairman and chief executive officer of Great Plains Energy, who will be president and CEO of Evergy. “We appreciate that regulators and shareholders recognize the value in combining the companies.”
The companies anticipate a closing date in early June, concluding a two-year effort to combine the two companies.
The utilities have guaranteed more than $100 million in customer bill credits with $29 million upfront for Missouri customers and $75 million for Kansas customers over the first five years after the merger closes. In addition, once currently pending rate reviews are resolved, the companies have agreed to fix their base rates for up to five years in Kansas as a result of the merger.
Introducing Evergy
The companies selected Evergy, Inc. (Evergy) as the name to represent their combined identity. Evergy is a blend of “ever” and “energy,” capturing the history of its predecessors as reliable, enduring sources of energy for the communities they serve and its vision to continue far into the future.
For the immediate future, the company will continue to serve its customers under the familiar Westar and KCP&L brand names. Contact information, billing and account information, program enrollment and outage reporting will remain the same for customers of KCP&L and Westar.
The combined company will serve approximately 1.6 million customers, with a little under 1,000,000 in Kansas and 600,000 in Missouri. In addition, the combined company will own, operate and maintain more than 51,000 miles of distribution lines and 13,000 megawatts of generation.
With corporate headquarters in Kansas City, Mo., and operational headquarters in both Kansas City, Mo., and Topeka, Kan., Evergy will be the parent of Westar Energy and of KCP&L and KCP&L Greater Missouri Operations Company, which were previously part of Great Plains Energy.
Together, the company will employ about 5,000 employees across Kansas and Missouri. Company executives will be located in Topeka, Wichita, and Kansas City, and will continue to be engaged in these communities and throughout the combined service territory.