Net income for the six months ended June 30, 2009 was $83m compared with net income of $67m. The increase in net income is mainly due to recent price adjustments reflecting higher costs, some of which the company had already been incurring, associated with investments in gas peaking and wind generating facilities, transmission lines and emission controls equipment.
Retail revenues for both periods increased due primarily to price increases which more than offset declines in retail sales volumes of 0.5% and 4% for the respective periods. Wholesale revenues decreased for both periods due principally to lower average market prices. Energy marketing increased for the six months ended June 30, 2009 due primarily to the settlement of forward contracts for the sale of electricity on favorable terms.
Bruce Burns, director of investor relations, said: “The rate increase, approved in January by the Kansas Corporation Commission, allowed for an 11% increase in retail rates. The increase is expected to boost the company’s annual revenue by about $130m. Additional revenue is needed to offset capital spending from previous years.”
