Portland, Maine --21Feb2008 Great Plains Energy and Aquila have been unable to reach a merger settlement with key Missouri stakeholders after weeks of negotiations, the two utility companies said late Wednesday.
The Kansas City, Missouri-based companies asked the Missouri Public Service Commission to resume hearings on their request for Great Plains to buy Aquila's Missouri utility operations. The hearings had been suspended in early
December when the companies realized they faced stiff opposition to their
plans. The planned merger between Aquila and Great Plains, and the related
$940-million purchase by Black Hills of Aquila's non-Missouri operations, hit
a snag in December when it emerged that Great Plains and Aquila officials had
met with Kansas and Missouri regulators before the deal was announced in
February 2007.
Great Plains and Aquila are recommending that the hearings in Missouri
begin April 21 so that the PSC can make a decision by a May 1 termination
date. Great Plains intends to file additional testimony on February 25
addressing concerns raised during the December hearings, as well as withdrawing certain requests for regulatory treatment contained in prior
filings with the PSC. One of the key sticking points had been plans to shift
the costs of some of Aquila's debt to ratepayers.
Great Plains, Aquila and Black Hills Corp in January agreed to push back the deadline for closing on the transaction from February 6 to May 1.
A year ago, Great Plains and Black Hills agreed to buy Aquila. Under the
deal, Black Hills, headquartered in Rapid City, South Dakota, would pay $940
million for Aquila's electric utility in Colorado and gas utilities in
Colorado, Kansas, Nebraska and Iowa. After that deal closes, Great Plains
would immediately buy Aquila's electric operations in Missouri for about $1.7
billion.
The Kansas City, Missouri-based companies asked the Missouri Public Service Commission to resume hearings on their request for Great Plains to buy Aquila's Missouri utility operations. The hearings had been suspended in early
December when the companies realized they faced stiff opposition to their
plans. The planned merger between Aquila and Great Plains, and the related
$940-million purchase by Black Hills of Aquila's non-Missouri operations, hit
a snag in December when it emerged that Great Plains and Aquila officials had
met with Kansas and Missouri regulators before the deal was announced in
February 2007.
Great Plains and Aquila are recommending that the hearings in Missouri
begin April 21 so that the PSC can make a decision by a May 1 termination
date. Great Plains intends to file additional testimony on February 25
addressing concerns raised during the December hearings, as well as withdrawing certain requests for regulatory treatment contained in prior
filings with the PSC. One of the key sticking points had been plans to shift
the costs of some of Aquila's debt to ratepayers.
Great Plains, Aquila and Black Hills Corp in January agreed to push back the deadline for closing on the transaction from February 6 to May 1.
A year ago, Great Plains and Black Hills agreed to buy Aquila. Under the
deal, Black Hills, headquartered in Rapid City, South Dakota, would pay $940
million for Aquila's electric utility in Colorado and gas utilities in
Colorado, Kansas, Nebraska and Iowa. After that deal closes, Great Plains
would immediately buy Aquila's electric operations in Missouri for about $1.7
billion.
