SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from to
Commission file number 1-707
A. Full title of the Plan:
Kansas City Power & Light Company
Cash or Deferred Arrangement
(Employee Savings Plus Plan)
(hereinafter referred to as "Plan")
B. Name of issuer of the securities held
pursuant to the Plan and the address
of its principal executive office:
Kansas City Power & Light Company
1201 Walnut
Kansas City, Missouri 64106-2124
TABLE OF CONTENTS
FINANCIAL STATEMENTS Page
Report of Independent Accountants 1
Statements of Financial Condition, With Fund Information
December 31, 1996 2
December 31, 1995 4
Statements of Income and Changes in Plan Equity, With Fund
Information for the Year Ended
December 31, 1996 6
December 31, 1995 8
December 31, 1994 10
Notes to Financial Statements 12
Signatures 18
Consent of Independent Accountants 19
REPORT OF INDEPENDENT ACCOUNTANTS
To the Administrative Committee,
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
We have audited the accompanying statements of financial
condition of Kansas City Power & Light Company Cash or Deferred
Arrangement Employee Savings Plus Plan as of December 31, 1996
and 1995, and the related statements of income and changes in
Plan equity for each of the three years in the period ended
December 31, 1996. These financial statements are the
responsibility of the Plan's management. Our responsibility is
to express an opinion on these financial statements based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial condition
of the Plan as of December 31, 1996 and 1995, and the income and
changes in Plan equity for each of the three years in the period
ended December 31, 1996, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion
on the basic financial statements taken as a whole. The fund
information in the statement of financial condition and the
statement of income and changes in Plan equity is presented for
purposes of additional analysis rather than to present the
financial condition and the income and changes in Plan equity of
each fund. The fund information has been subjected to the
auditing procedures applied in the audits of the basic financial
statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a
whole.
/s/ COOPERS & LYBRAND L.L.P.
COOPERS & LYBRAND L.L.P.
Kansas City, Missouri
June 6, 1997
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Financial Condition, With Fund Information
December 31, 1996
Fidelity
Investment Funds
Asset OTC
ASSETS MIP Puritan Magellan Manager Portfolio Overseas
Investments, at market:
Short term money market $ - $ - $
159,103 $ - $ - $ -
Kansas City Power & Light Co. Stock
2,679,331.3966 shares (cost $57,271,426) - - - - -
- -
Fidelity Managed Income Portfolio
(MIP) (cost $7,492,939) 7,492,939 - - - -
- -
Fidelity Puritan Fund
726,829.5399 shares (cost $11,183,328) - 12,530,541 - - -
- -
Fidelity Magellan Fund
341,712.9438 shares (cost $23,746,811) - -
27,559,149 - - -
Fidelity Asset Manager Fund
45,883.8316 shares (cost $705,044) - - - 755,707 -
- -
Fidelity OTC Portfolio Fund
55,985.2874 shares (cost $1,717,316) - - - -
1,831,279 -
Fidelity Overseas Fund
48,895.7508 shares (cost $1,427,865) - - - - -
1,507,945
Loans to participants - - -
- - -
Total investments 7,492,939 12,530,541
27,718,252 755,707 1,831,279 1,507,945
Receivables:
Investment income 37,621 - - - -
- -
Money market interest 26 50
100 6 33 10
Commission reimbursement - - - - -
- -
Total receivables 37,647 50
100 6 33 10
TOTAL ASSETS $7,530,586 $12,530,591
$27,718,352 $755,713 $1,831,312 $1,507,955
LIABILITIES AND PLAN EQUITY
Liabilities:
Benefits payable to participants $ 284,742 $ 246,498 $
421,322 $ - $ 1,519 $ -
Plan Equity 7,245,844 12,284,093 27,297,030 755,713 $1,829,793
$1,507,955
TOTAL LIABILITIES AND PLAN EQUITY $7,530,586 $12,530,591
$27,718,352 $755,713 $1,831,312 $1,507,955
The accompanying Notes to Financial Statements are an integral part of these
statements.
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Financial Condition, With Fund Information
December 31, 1996
KCPL Loans to Total of
ASSETS Stock Fund Participants All Funds
Investments at Market:
Short term money market $ - $ 237,500 $
396,603
Kansas City Power & Light Co. Stock
2,679,331.3966 (cost $57,271,426) 76,360,945 - 76,360,945
Fidelity Managed Income Portfolio
(MIP) (cost $7,492,939) - -
7,492,939
Fidelity Puritan Fund
726,829.5399 shares (cost $11,183,328) - - 12,530,541
Fidelity Magellan Fund
341,712.9438 shares (cost $23,746,811) - - 27,559,149
Fidelity Asset Manager Fund
45,883.8316 shares (cost $705,044) - - 755,707
Fidelity OTC Portfolio Fund
55,985.2874 shares (cost $1,717,316) - - 1,831,279
Fidelity Overseas Fund
48,895.7508 shares (cost $1,427,865) - - 1,507,945
Loans to participants - 5,606,288
5,606,288
Total investments 76,360,945 5,843,788
134,041,396
Receivables:
Investment income - -
37,621
Money market interest 614 -
839
Commission reimbursement 391 -
391
Total receivables 1,005 -
38,851
TOTAL ASSETS $76,361,950 $5,843,788
$134,080,247
LIABILITIES AND PLAN EQUITY
Liabilities:
Benefits payable to participants $ 1,560,754 $ 41,141 $
2,555,976
Plan Equity 74,801,196 5,802,647 131,524,271
TOTAL LIABILITIES AND PLAN EQUITY $76,361,950 $5,843,788
$134,080,247
The accompanying Notes to Financial Statements are an integral part of these statements.
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Financial Condition, With Fund Information
December 31, 1995
Fidelity
Investment Funds
Asset OTC
ASSETS MIP Puritan Magellan Manager Portfolio Overseas
Investments, at market:
Short term money market $ - $ - $ - $ - $ -
$ -
Kansas City Power & Light Co. Stock
2,404,607.7374 shares (cost $48,447,967) - - - - -
- -
Fidelity Managed Income Portfolio
(MIP) (cost $6,777,831) 6,777,831 - - - -
- -
Fidelity Puritan Fund
619,232.7959 shares (cost $9,242,390) - 10,533,150 - - -
- -
Fidelity Magellan Fund
290,249.1863 shares (cost $19,449,421) - -
24,955,625 - - -
Fidelity Asset Manager Fund
35,613.1852 shares (cost $527,945) - - - 564,469 -
- -
Fidelity OTC Portfolio Fund
21,852.0095 shares (cost $599,894) - - - - 662,771
- -
Fidelity Overseas Fund
33,581.6574 shares (cost $947,624) - - - - -
976,219
Loans to participants - - -
- - -
Total investments 6,777,831 10,533,150
24,955,625 564,469 662,771 976,219
Receivables:
Investment income 34,800 - - - -
- -
Money market interest - 37
72 7 8 10
Commission reimbursement - - - - -
- -
Total receivables 34,800 37
72 7 8 10
TOTAL ASSETS $6,812,631 $10,533,187
$24,955,697 $564,476 $662,779 $976,229
LIABILITIES AND PLAN EQUITY
Liabilities:
Benefits payable to participants $ 155,230 $ 175,234 $
296,722 $ 1 $ 8 $ 2,528
Plan Equity 6,657,401 10,357,953 24,658,975 564,475 662,771 973,701
TOTAL LIABILITIES AND PLAN EQUITY $6,812,631 $10,533,187
$24,955,697 $564,476 $662,779 $976,229
The accompanying Notes to Financial Statements are an integral part of these
statements.
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Financial Condition, With Fund Information
December 31, 1995
KCPL Loans to Total of
ASSETS Stock Fund Participants All Funds
Investments at Market:
Short term money market $ 2,472 $ 234,371 $
236,843
Kansas City Power & Light Co. Stock
2,404,607.7374 (cost $48,447,967) 63,120,953 - 63,120,953
Fidelity Managed Income Portfolio
(MIP) (cost $6,777,831) - -
6,777,831
Fidelity Puritan Fund
619,232.7959 shares (cost $9,242,390) - - 10,533,150
Fidelity Magellan Fund
290,249.1863 shares (cost $19,449,421) - - 24,955,625
Fidelity Asset Manager Fund
35,613.1852 shares (cost $527,945) - - 564,469
Fidelity OTC Portfolio Fund
21,852.0095 shares (cost $599,894) - - 662,771
Fidelity Overseas Fund
33,581.6574 shares (cost $947,624) - - 976,219
Loans to participants - 4,929,010
4,929,010
Total investments 63,123,425 5,163,381
112,756,871
Receivables:
Investment income - -
34,800
Money market interest 305 -
439
Commission reimbursement 339 -
339
Total receivables 644 -
35,578
TOTAL ASSETS $63,124,069 $5,163,381
$112,792,449
LIABILITIES AND PLAN EQUITY
Liabilities:
Benefits payable to participants $ 1,034,580 $ 34,629 $
1,698,932
Plan Equity 62,089,489 5,128,752 111,093,517
TOTAL LIABILITIES AND PLAN EQUITY $63,124,069 $5,163,381
$112,792,449
The accompanying Notes to Financial Statements are an integral part of these statements.
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Income and Changes in Plan Equity, With Fund Information
for the Year Ended December 31, 1996
Fidelity
Investment Funds
Asset OTC
MIP Puritan Magellan Manager Portfolio Overseas
ADDITIONS
Investment income:
Net appreciation (depreciation)
in the fair value of investments $ - $ 199,817 $(1,219,051) $ 20,769 $
69,080 $ 63,352
Dividends - 1,406,226 4,103,553 56,890 184,733
90,771
Interest:
Investments 407,767 - - - -
- -
Money market 360 668
1,326 63 310 144
Loans - - - - -
- -
Other - (120) 186
(1) 37 (4)
Net investment income 408,127 1,606,591 2,886,014
77,721 254,160 154,263
Contributions:
Employee 653,474 1,044,750 2,188,816 104,159 242.728
213.324
Employer - 265 2,180 - - -
Rollover 1,686 27,038 74,862 6,963 24,591
739
Reimbursed commissions - - - - - -
Forfeiture credits - - - - -
-
Total contributions 655,160 1,072,053
2,265,858 111.122 267,319 214,063
TOTAL ADDITIONS 1,063,287 2,678,644
5,151,872 188,843 521,479 368,326
DEDUCTIONS
Distributions to participants (427,468) (586,695) (1,056,057)
(326) (2,175) (106)
Forfeited benefits - - - -
- - -
TOTAL DEDUCTIONS (427,468) (586,695) (1,056,057)
(326) (2,175) (106)
TRANSFERS
Due to participant elections (73,157) (91,188) (1,377,381)
939 628,499 169,778
Due to participant loans 25,781 (74,621) (80,379)
1,782 19,219 (3,744)
TOTAL TRANSFERS (47,376) (165,809) (1,457,760)
2,721 647,718 166,034
NET CHANGE IN PLAN EQUITY 588,443 1,926,140 2,638,055 191,238 1,167,022
534,254
PLAN EQUITY, beginning of year 6,657,401 10,357,953
24,658,975 564,475 662,771 973,701
PLAN EQUITY, end of year $7,245,844 $12,284,093 $27,297,030 $755,713 $1,829,793
$1,507,955
The accompanying Notes to Financial Statements are an integral part of these statements.
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Income and Changes in Plan Equity, With Fund Information
for the Year Ended December 31, 1996
KCPL Loans to Total of
Stock Fund Participants All Funds
ADDITIONS
Investment income:
Net appreciation
in the fair value of investments $ 5,291,582 $ - $ 4,425,549
Dividends 4,033,672 - 9,875,845
Interest:
Investments - -
407,767
Money market 2,152 -
5,023
Loans - 533,818
533,818
Other 418 - 516
Net investment income 9,327,824 533,818 15,248,518
Contributions:
Employee 2,617,686 - 7,064,937
Employer 2,607,428 - 2,609,873
Rollover 13,009 - 148,888
Reimbursed commissions 44,193 - 44,193
Forfeiture credits 3,284 -
3,284
Total contributions 5,285,600 - 9,871,175
TOTAL ADDITIONS 14,613,424 533,818 25,119,693
DEDUCTIONS
Distributions to participants (2,517,196) (95,647) (4,685,670)
Forfeited benefits (3,269) -
(3,269)
TOTAL DEDUCTIONS (2,520,465) (95,647) (4,688,939)
TRANSFERS
Due to participant elections 742,510 - -
Due to participant loans (123,762) 235,724 -
TOTAL TRANSFERS 618,748 235,724 -
NET CHANGE IN PLAN EQUITY 12,711,707 673,895 20,430,754
PLAN EQUITY, beginning of year 62,089,489 5,128,752 111,093,517
PLAN EQUITY, end of year $74,801,196 $5,802,647 $131,524,271
The accompanying Notes to Financial Statements are an integral part of these
statements.
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Income and Changes in Plan Equity, With Fund Information
for the Year Ended December 31, 1995
Fidelity
Investment Funds
Asset OTC
MIP Puritan Magellan Manager Portfolio Overseas
ADDITIONS
Investment income:
Net appreciation
in the fair value of investments $ - $ 1,250,219 $ 5,356,260 $ 64,495 $ 88,298 $ 52,833
Dividends - 547,145 1,447,394 14,860 34,872 21,681
Interest:
Investments 369,126 - - - -
- -
Money market 8 388
725 57 104 99
Loans - - - - -
- -
Other - 2 (60)
2 - -
Net investment income 369,134 1,797,754 6,804,319
79,414 123,274 74,613
Contributions:
Employee 655,886 993,120 2,158,252 101,883 133,448 226,330
Employer - - - - - -
Rollover - 8,796 11,945 2,124 1,345 7,139
Reimbursed commissions - - - - - -
Forfeiture credits - - - -
- -
Total contributions 655,886 1,001,916 2,170,197
104,007 134,793 233,469
TOTAL ADDITIONS 1,025,020 2,799,670 8,974,516
183,421 258,067 308,082
DEDUCTIONS
Distributions to participants (594,334) (345,139) (800,329)
(19,377) (17,637) (11,194)
Forfeited benefits - - - -
- - -
TOTAL DEDUCTIONS (594,334) (345,139) (800,329)
(19,377) (17,637) (11,194)
TRANSFERS
Due to participant elections 782,883 27,745
(1,834,727) 26,100 157,510 37,459
Due to participant loans (52,414) (20,156) (169,554)
8,179 16,653 18,573
TOTAL TRANSFERS 730,469 7,589 (2,004,281)
34,279 174,163 56,032
NET CHANGE IN PLAN EQUITY 1,161,155 2,462,120 6,169,906 198,323 414,593 352,920
PLAN EQUITY, beginning of year 5,496,246 7,895,833 18,489,069
366,152 248,178 620,781
PLAN EQUITY, end of year $6,657,401 $10,357,953 $24,658,975
$564,475 $662,771 $973,701
The accompanying Notes to Financial Statements are an integral part of these statements.
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Income and Changes in Plan Equity, With Fund Information
for the Year Ended December 31, 1995
KCPL Loans to Total of
Stock Fund Participants All Funds
ADDITIONS
Investment income:
Net appreciation
in the fair value of investments $ 6,292,588 $ - $ 13,104,693
Dividends 3,502,951 - 5,568,903
Interest:
Investments - -
369,126
Money market 2,056 -
3,437
Loans - 436,646
436,646
Other (85) - (141)
Net investment income 9,797,510 436,646 19,482,664
Contributions:
Employee 2,392,233 - 6,661,152
Employer 2,524,326 - 2,524,326
Rollovers 13,023 - 44,372
Reimbursed commissions 46,713 - 46,713
Forfeiture credits 4,118 -
4,118
Total contributions 4,980,413 - 9,280,681
TOTAL ADDITIONS 14,777,923 436,646 28,763,345
DEDUCTIONS
Distributions to participants (2,406,800) (145,975) (4,340,785)
Forfeited benefits (4,118) -
(4,118)
TOTAL DEDUCTIONS (2,410,918) (145,975) (4,344,903)
TRANSFERS
Due to participant elections 803,030 - -
Due to participant loans (230,542) 429,261 -
TOTAL TRANSFERS 572,488 429,261 -
NET CHANGE IN PLAN EQUITY 12,939,493 719,932 24,418,442
PLAN EQUITY, beginning of year 49,149,996 4,408,820 86,675,075
PLAN EQUITY, end of year $62,089,489 $5,128,752 $111,093,517
The accompanying Notes to Financial Statements are an integral part of these
statements.
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Income and Changes in Plan Equity, With Fund Information
for the Year Ended December 31, 1994
Fidelity
Investment Funds
Asset OTC
MIP Puritan Magellan Manager
Portfolio Overseas
ADDITIONS
Investment income:
Net depreciation
in the fair value of investments $ - $ (516,284) $(1,102,236) $(32,159) $
(5,169) $(22,666)
Dividends - 646,039 758,758 12,035 1,963 9,773
Interest:
Investments 338,676 - - - -
- -
Money market 221 366
1,199 47 29 67
Loans - - - - -
- -
Other - 1,488
(1,504) (1) - 2
Net investment income (loss) 338,897 131,609
(343,783) (20,078) (3,177) (12,824)
Contributions:
Employee 738,913 1,011,049 2,310,016 93,693 86,493 177,998
Employer - - - - -
- -
Rollover 6,407 981
981 - - 14,951
Reimbursed commissions - - - - - -
Forfeiture credits - - - - -
- -
Total contributions 745,320 1,012,030
2,310,997 93,693 86,493 192,949
TOTAL ADDITIONS 1,084,217 1,143,639
1,967,214 73,615 83,316 180,125
DEDUCTIONS
Distributions to participants (1,348,692) (1,175,832)
(1,926,499) (57,286) (20,310) (20,136)
Forfeited benefits - - - - -
- -
TOTAL DEDUCTIONS (1,348,692) (1,175,832)
(1,926,499) (57,286) (20,310) (20,136)
TRANSFERS
Due to participant elections (227,974) (6,188)
(483,042) 142,660 100,084 322,192
Due to participant loans (81,888) (9,492)
(111,316) 11,574 8,889 33,392
TOTAL TRANSFERS (309,862) (15,680)
(594,358) 154,234 108,973 355,584
NET CHANGE IN PLAN EQUITY (574,337) (47,873)
(553,643) 170,563 171,979 515,573
PLAN EQUITY, beginning of year 6,070,583 7,943,706
19,042,712 195,589 76,199 105,208
PLAN EQUITY, end of year $5,496,246 $7,895,833
$18,489,069 $366,152 $248,178 $620,781
The accompanying Notes to Financial Statements are an integral part of these statements.
Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan
Statement of Income and Changes in Plan Equity, With Fund Information
for the Year Ended December 31, 1994
KCPL Loans to Total of
Stock Fund Participants All Funds
ADDITIONS
Investment income:
Net depreciation
in the fair value of investments $ (237,684) $ - $(1,916,198)
Dividends 3,201,956 - 4,630,524
Interest:
Investments - - 338,676
Money market 1,997 - 3,926
Loans - 354,178
354,178
Other (4) -
(19)
Net investment income 2,966,265 354,178 3,411,087
Contributions:
Employee 2,592,423 - 7,010,585
Employer 2,658,993 - 2,658,993
Rollover 3,196 - 26,516
Reimbursed commissions 45,999 - 45,999
Forfeiture credits 4,637 -
4,637
Total contributions 5,305,248 - 9,746,730
TOTAL ADDITIONS 8,271,513 354,178 13,157,817
DEDUCTIONS
Distributions to participants (7,319,343) (168,471) (12,036,569)
Forfeited benefits (4,637) -
(4,637)
TOTAL DEDUCTIONS (7,323,980) (168,471) (12,041,206)
TRANSFERS
Due to participant elections 152,268 - -
Due to participant loans (13,297) 162,138 -
TOTAL TRANSFERS 138,971 162,138 -
NET CHANGE IN PLAN EQUITY 1,086,504 347,845 1,116,611
PLAN EQUITY, beginning of year 48,063,492 4,060,975 85,558,464
PLAN EQUITY, end of year $49,149,996 $4,408,820 $86,675,075
The accompanying Notes to Financial Statements are an integral part of these statements.
DESCRIPTION OF THE PLAN
The following description of the Kansas City Power & Light
Company's Cash or Deferred Arrangement, alternatively known as
Employee Savings Plus Plan (the Plan) provides only general
information regarding the Plan. Participants should refer to the
Plan Agreement for more complete information.
The Plan is designed to encourage and assist employees of Kansas
City Power & Light Company and Subsidiary (Company) to adopt a
regular savings and investment program for long term needs,
especially retirement. The Company is the Plan Administrator and
UMB Bank, n.a. (UMB) is the Trustee. The Administrative
Committee is the fiduciary of the Plan and has the responsibility
of establishing the rules under which the Plan is run.
I. Eligibility and Employee Contributions - Employees become
eligible to participate on the first day of each month coincident
with or following their completion of one year of service.
Participants may change the amount of their elective contribution
effective the first day of each month. A participant may cease
elective contributions at any time. Effective February 1, 1996,
employees are immediately eligible to make elective contributions
to the Plan. If the employee begins employment during the first
15 days of a month, they can begin participating in the Plan the
first day of the following month. If an employee's first day of
employment is after the 15th of the month, they are eligible to
participate in the Plan the first day of the next following
month.
Participants can contribute any whole percentage of their
base pay from 2% to 12% (prior to April 1, 1997, the maximum
percentage was 10%) to the Plan, except that contributions
may not exceed the maximum allowable under the law. The
maximum individual contribution allowed for 1996 was $9,500;
and for 1995 and 1994 was $9,240. Other special limitations
may reduce the participant elective and Company matching
maximum contribution amounts for highly compensated
employees.
II. Company Matching Contributions - The Company contributes an
amount equal to 50% of the employee's elective contribution, not
to exceed three percent of base pay as defined in the Plan.
Company contributions may be made in cash, Company stock, or a
combination thereof. Company contributions will at all times be
invested in the common stock of the Company. The Company will
begin matching employee contributions when the employee completes
one year of service.
III. Rollovers - Participants may elect to transfer funds from
another qualified retirement plan to the Plan, with permission
from the Administrative Committee.
IV. Vesting and Forfeitures
A. Elective Contribution and Rollover Accounts - Participants
are at all times 100% vested in their elective contribution and
rollover accounts.
B. Company Match Account - Participants who retire after age
55, die, or become totally and permanently disabled while an
employee of the Company are considered 100% vested in the Company
Match Account, regardless of their length of service with the
Company.
Vesting of the Company Match Account for participants who
leave the Company for a reason other than death, disability, or
retirement is based upon Years of Service for Vesting. A year of
service for Plan purposes is defined as any year in which an
employee completes at least 1,000 hours of service with the
Company. Generally, all years of service with the Company are
taken into account in computing Years of Service for Vesting.
Participants who accrue two years of service prior to termination
of employment are 20% vested. Participants are credited with 20%
additional vesting each year thereafter, with full vesting after
six years of service.
The portion of Company Match Accounts that is not
vested is forfeited by terminating participants.
Forfeitures are used to reduce future Company matching
contributions. The 1996, 1995 and 1994 forfeited
benefits were $3,269, $4,118, and $4,637, respectively.
The Company used forfeiture credits of $3,284, $4,118,
and $4,637 for 1996, 1995 and 1994, respectively, to
reduce the matching contributions.
V. Investment of Accounts
A. Investment of Elective Contribution and Rollover Accounts
Participants may direct (in 5% increments) the investment of
their elective contribution and rollover accounts in one or more
of the following seven investment funds:
1. KCPL Stock Fund - a fund designed to invest solely in the
Company's common stock.
2. Fidelity Managed Income Portfolio (MIP) Fund - a fund that
seeks to preserve capital and provide a competitive level of
income over time.
3. Fidelity Puritan Fund - a growth and income fund that seeks
income consistent with preservation of capital by investing in a
broadly diversified portfolio of common stocks, preferred stocks,
and bonds, including lower-quality, high-yield debt securities.
4. Fidelity Magellan Fund - a growth fund that seeks long term
capital appreciation by investing in stocks of companies with
potentially above average growth potential and a corresponding
higher level of risk.
5. Fidelity Asset Manager Fund - an asset allocation fund that
seeks high total return with reduced risk over the long term by
investing in domestic and foreign equities, bonds and short term
instruments.
6. Fidelity OTC Portfolio Fund - a growth fund that seeks long
term capital appreciation by investing in securities traded on
the over-the-counter securities market.
7. Fidelity Overseas Fund - an international growth fund that
seeks long term capital growth by investing in foreign securities
that includes common stock, securities convertible into common
stock and debt instruments.
B. Investment of Company Match Account - This account will at
all times be invested in the common stock of the Company.
As of December 31, 1996, 1,853 employees were
participating in the Plan, 1,044 of whom were
investing their elective contributions in more than one
of the available options of the Plan. There were 82
employees contributing only to the Fidelity MIP Fund,
34 employees contributing only to the Fidelity Puritan
Fund, 168 employees contributing only to the Fidelity
Magellan Fund, 2 employees contributing only to the
Fidelity Asset Manager Fund, 30 employees contributing
only to the Fidelity OTC Portfolio Fund, 16 employees
contributing only to the Fidelity Overseas Fund, and
477 employees contributing only to the KCPL Stock Fund.
Participants also have the opportunity to change how their
past savings in their elective and rollover accounts are
invested. Participants can make such changes on a daily
basis. Participants making such elections will have their
fund shares sold, and the proceeds transferred and fund
shares purchased per their request.
The non-participant directed portion of the KCPL Stock Fund
consisted of 1,164,914.9967 shares valued at $33,200,077 and
1,036,648.4941 shares valued at $27,212,023 at December 31,
1996 and 1995, respectively.
VI. Allocation of Investment Income - The Trustee allocates
investment income based on the shares held by participants in
their individual accounts. Individual accounts are valued on
each business day of the Trustee to reflect the current market
value of the investments.
If contributions or participant transfers received by the
Trustee cannot be immediately invested in the investment
funds, the moneys are held in an interest bearing UMB Money
Market Fund. Some distributions may also be invested in the
money market fund prior to payment to the participant. Any
interest earned is allocated back to the investment accounts
based on the amounts originally transferred.
The money market interest receivable represents interest
earned in the money market accounts for December 1996 and
1995.
VII. Termination Payments - Participants who leave the Company as
a result of termination, retirement, or permanent disability may
receive the entire amount of their account in one lump-sum
payment, rollover their account to another trustee, or elect to
defer distribution until age 62 or retirement, whichever is
later. Upon death, distributions will be made to beneficiaries
in a lump sum or in installment payments over a period of no more
than three years. Payment will commence no later than 60 days
after the December 31 coinciding with or next following the date
of the participant's death.
Benefits Payable to Participants represents an accrual for
those participants who had terminated service during the
year and had not received their distribution by December 31.
This amount, however, does not include an accrual for those
terminated employees that elected to defer their
distribution until age 62, except for those that will reach
age 62 during 1996 and 1995. The deferred to age 62 totals
for participants not required to receive distributions in
the next calendar year are $8,015,135 and $9,583,307 for
December 31, 1996 and 1995, respectively.
VIII. Loans to Participants - The Plan allows participants to
borrow against their vested account balance to obtain either an
installment or residential loan. Other than by obtaining a loan,
the Plan does not provide for in-service withdrawals from
elective accounts, rollover accounts, or Company Match accounts.
Distributions are made only upon retirement, disability,
termination of employment, or death.
An installment loan may be used for any purpose, whereas a
residential loan must be used for the purchase of the
participant's primary residence. The maximum loan terms for
installment and residential loans are 5 and 15 years,
respectively. A participant may have no more than one of
each type of loan outstanding at the same time.
For all loans issued through October 1989, if the
participant's account balance was $20,000 or less, then a
maximum of 80% of the vested account balance, not to exceed
$10,000, could be borrowed. If the account balance was more
than $20,000, then 50% of the vested account balance, not to
exceed $50,000 could be borrowed. The interest rate for
these loans was based on the Fidelity GIC Group Trust
interest rate of 8.31%.
For loans issued after November 1, 1989, the maximum amount
that a participant can borrow is 50% of their vested account
balance, not to exceed $50,000. The interest rate for these
loans is UMB's prime rate plus 2%. The minimum amount a
participant can borrow is $1,000.
Principal and interest on all loans is repaid to the
participant's individual accounts based on their current
contribution allocation election. All loans are repaid by
payroll deduction except when paid in full in advance or the
unpaid principal is deducted from a total distribution which
results from a death, disability, retirement, or
termination.
Loans to Participants represents the total of the
outstanding loans issued from the investment funds. The
1996 Loans to Participants total of $5,606,288 was comprised
of $804,508 of residential and $4,801,780 of installment
loans. The 1995 Loans to Participants total of $4,929,010
was comprised of $718,046 of residential and $4,210,964 of
installment loans.
IX. Commissions and Administrative Expenses - Total 1996, 1995
and 1994 commissions were $44,193, $46,713, and $45,999,
respectively, of which the Company owed the Plan $391 at December
31, 1996, and $339 at December 31, 1995. Commissions paid by the
Plan for purchases and sales of Company common stock are
reimbursed by the Company.
Administrative expenses are also paid by the Company.
During the year ended December 31, 1996, a net of $26,030 in
costs for the administration of the Plan were billed to the
Company by the Trustee after deducting plan expense
reimbursements from Fidelity Investments. The total
administrative costs billed to the Company for 1995 and 1994
were $53,085 and $55,516, respectively.
X. Voluntary Early Retirement Program - On March 8, 1994, the
Board of Directors of the Company authorized the Company to offer
a Voluntary Early Retirement Program. Of the 411 eligible
employees, 312 employees with a Plan account elected to
participate in the program and retired from the Company on
June 30, 1994. Retiring employees who participated in the Plan
could elect any of the termination payment options described in
Note 7.
XI. Related Party and Party-In-Interest Transactions - The
Trustee is authorized under contract provisions and ERISA
regulations, to invest in funds under its control and in
securities of the Company.
In 1996 there were 473,425 shares purchased and 152,278
shares sold in the KCPL Stock Fund under the Trustee's control
totaling $12,826,028 and $4,063,353 respectively. In 1995 there
were 483,086 shares purchased and 184,534 shares sold totaling
$11,426,866 and $4,296,353, respectively.
Temporary cash balances are invested on a daily basis in
short-term investment funds under the Trustee's control.
Although those temporary cash balances are not material to
the Plan's financial statements, there were 540 purchases
and 474 sales in the UMB Money Market Fund totaling
$16,855,503 and $16,808,414, respectively in 1996. In 1995
there were 505 purchases and 503 sales totaling $15,939,033
and $16,009,474, respectively.
XII. Agreement and Plan of Merger with Western Resources - On
February 7, 1997, KCPL and Western Resources entered into an
Agreement and Plan of Merger to form a strategic business
combination. The effective time of the merger is dependent upon
all conditions of the Merger Agreement being met or waived.
Under the terms of the agreement, KCPL common stock will be
exchanged for Western Resources common stock valued at $32.00,
subject to a conversion ration limiting the amount of Western
Resources common stock that holders of KCPL common stock would
receive per share of KCPL common stock to no more than 1.1 shares
and no less that 0.917 shares. The transaction is subject to
several closing conditions including approval by each company's
shareholders, approval by a number of regulatory authorities, and
dissenting shares equaling less that 5.5% of KCPL's outstanding
shares. The Merger Agreement does not allow KCPL to increase its
common stock dividend prior to the effective time or termination.
The effect of the merger on the Plan is not known at this time.
XIII. Summary of Other Significant Accounting Policies
Basis of Accounting - The Plan's financial statements are
maintained on the accrual basis. Plan records are maintained on
a calendar year basis. Investments are valued at quoted market
prices on the last business day of the Plan year. In accordance
with the policy of stating investments at fair market value, the
Plan presents in the statement of changes in net assets available
for Plan benefits, the net appreciation (depreciation) in the
fair value of its investments which consists of the realized
gains and losses and the unrealized appreciation (depreciation)
on those investments.
Reclassifications - Certain amounts in the 1994 financial
statements were reclassified to conform to the 1996 and 1995
presentations.
Tax Status - The Plan has been approved by the Internal
Revenue Service as a "qualified" plan under the Internal
Revenue Code. The Plan is exempt from Federal taxes on its
income, and the participants in the Plan are not subject to
taxes on either the income or the Company's contributions
until such time as distributions are received. The Plan has
been amended since receiving the last tax determination
letter from the Internal Revenue Service. However, the
Administrative Committee believes the Plan is currently
designed and operated in compliance with the applicable
requirements of the Code. The Administrative Committee
believes the Plan is qualified and tax-exempt, as described
above, as of December 31, 1996 and 1995.
Amendment and Termination - Although the Company intends to
continue the Plan indefinitely, it reserves the right to
amend or terminate the Plan or cease Company contributions
to it. If the Plan is terminated, participants will receive
the amounts credited to their accounts and will
automatically be fully vested in the Company Match Account
regardless of the participant's years of service for
vesting.
Management's Estimates - The preparation of financial
statements in conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the
reported amounts of additions to and deductions from the
Plan during the reporting period. Actual results could
differ from those estimates.
XIV. Risks and Uncertainties - The Plan provides for various
investment options in any combination of stocks, bonds, fixed
income securities, mutual funds, and other investment securities.
Investment securities are exposed to various risks, such as
interest rate, market and credit. Due to the level of risk
associated with certain investment securities and the level of
uncertainty related to changes in the value of investment
securities, it is at least reasonably possible that changes in
risks in the near term would materially affect participants'
account balances and the amounts reported in the statement of net
assets available for Plan benefits and the statement of changes
in net assets available for Plan benefits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Administrative Committee of the Employee Savings
Plus Plan has duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
EMPLOYEE SAVINGS PLUS PLAN
(
(
(By: /s/ B. M. Tate
( B. M. Tate, Chairman
(
(
( /s/ S. W. Cattron
( S. W. Cattron, Member
(
(
( /s/ J. S. Latz
( J. S. Latz, Member
June 20, 1997
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration
statement of Kansas City Power & Light Company on Form S-8 (File
No. 33-58917) of our report dated June 6, 1997, on our audit of
the financial statements of the Kansas City Power & Light Company
Cash or Deferred Arrangement Employee Savings Plus Plan as of
December 31, 1996, and 1995, and for the years ended December 31,
1996, 1995, and 1994, which report is included in this Annual
Report on Form 11-K.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
Kansas City, Missouri
June 19, 1997
