The merger of Great Plains Energy, which serves customers as KCP&L, and Westar Energy, has received final approval from the Kansas Corporation Commission and Missouri Public Service Commission.
Wind Turbines in Spearville, Kansas (Westar Energy)
The Kansas Corporation Commission originally denied the companies’ request to combine in April of 2017. This revised agreement involves no transaction debt, no exchange of cash, and is a stock-for-stock merger of equals, creating a company with a combined equity value of approximately $15 billion.
The merger was approved by shareholders of both companies in November of 2017.
The newly-formed business will be called Evergy, Inc. Its principal business will be conducted by the operating companies known today as Westar and KCP&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 companies selected 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.
With its focus on renewables, Evergy will meet nearly half of the energy needs for the homes and businesses it serves with energy from zero-emission sources. Nearly one-third will come from renewable energy, making Evergy one of the largest wind energy providers in the nation. In addition, the company is developing more ways to support customers and communities with energy efficiency and additional renewable energy programs.