Kansas City Power & Light Moves Forward on Environmental Plan to Improve Air Quality in the Kansas City Area; Babcock & Wilcox to Install New Control Equipment at La Cygne Power Plant; Will Reduce Nitrogen Oxides Emissions

Business Wire, Dec 20, 2005

KANSAS CITY, Mo. -- Kansas City Power & Light (KCP&L), a subsidiary of Great Plains Energy (NYSE: GXP), announced today that The Babcock & Wilcox Company (B&W) has been selected to install new emissions control equipment at Unit 1 at the La Cygne Generating Station that will significantly reduce plant emissions and improve the air quality in the Kansas City area.

"Community focus is a core component of our strategy," said Mike Chesser, Chairman and CEO of Great Plains Energy. "We are proud to be contributing to the efforts to improve the region's air quality by fast tracking this project well in advance of regulatory requirements."

B&W will engineer, procure and construct a Selective Catalytic Reduction (SCR) system at the La Cygne Generating Station in Linn County, Kansas, that will significantly reduce Nitrogen Oxides (NOx) emissions. The La Cygne Generating Station is jointly owned by KCP&L and Westar, and operated by KCP&L.

The upgrade is scheduled for completion by May 2007, well in advance of regulatory requirements. It is part of KCP&L's $272 million environmental investment in its Comprehensive Energy Plan to ensure the continued supply of affordable and reliable energy in an environmentally responsible manner for decades to come. Other planned environmental investments include: a similar SCR upgrade and the addition of a wet scrubber and baghouse to the Iatan 1 generating station near Weston, MO; utilization of the latest emission control technology in the Iatan 2 station that begins construction next year; and the recently announced construction of the 100.5 megawatt Spearville Wind Energy Facility. Additional environmental upgrades on La Cygne Unit 1 are scheduled for 2009.

"While each of the components of our long-term energy plan are important to meeting the region's future energy needs, the environmental improvements at La Cygne will provide the most immediate benefit. The outcome of these investments will help the Kansas City area remain within the Environmental Protection Agency's ozone attainment standards," said Bill Downey, president and CEO of KCP&L. "Achieving these standards is important not only for the improved health and ecological benefits, but also for the community to retain federal funds that support continued economic development in the region."

KCP&L's plan to move forward with the environmental upgrade to the La Cygne plant has been applauded by the Mid-America Regional Council's (MARC) Air Quality Forum.

"This project is the single largest voluntary contribution to helping the Kansas City area maintain its attainment status under the EPA's eight-hour ozone standard," said David Warm, executive director of MARC. "Working with existing power plants to reduce emissions is the cornerstone of the MARC Clean Air Action Plan."

KCP&L's reduction in NOx emissions at the La Cygne Station is expected to significantly contribute to improvements in ground-level ozone concentration, especially during the summer months when ozone levels are the highest.

Kansas Congressman Jim Ryun said: "KCP&L's leadership in adding this technology ahead of required schedules will help the Kansas City region maintain its compliance with federal air quality rules, resulting in sustainable economic and population growth. It also helps ensure the continued operation of the La Cygne facility and the high-quality jobs it provides in Linn County."

"B&W has a long history of working with Kansas City Power & Light," said David Keller, B&W president and chief operating officer. "We value that relationship, appreciate their confidence in our proven technology and construction capabilities, and look forward to continuing to help them meet their commitments to the environment and to their customers."

Headquartered in Kansas City, MO., KCP&L (www.kcpl.com) is a leading regulated provider of electricity in the Midwest. KCP&L is a wholly owned subsidiary of Great Plains Energy Incorporated (NYSE: GXP), the holding company for KCP&L and Strategic Energy LLC, a competitive electricity supplier.

The Babcock & Wilcox Company is a subsidiary of McDermott International, Inc., a leading worldwide energy services company. McDermott subsidiaries manufacture steam-generating equipment, environmental equipment, and products for the U.S. government. They also provide engineering and construction services for the offshore oil and natural gas industries.

NOTE TO EDITORS: The "x" in NOx should be subscript.

CERTAIN FORWARD-LOOKING INFORMATION -- Statements made in this release that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company is providing a number of important factors that could cause actual results to differ materially from the provided forward-looking information. These important factors include: future economic conditions in the regional, national and international markets, including but not limited to regional and national wholesale electricity markets; market perception of the energy industry and the Company; changes in business strategy, operations or development plans; effects of current or proposed state and federal legislative and regulatory actions or developments, including, but not limited to, deregulation, re-regulation and restructuring of the electric utility industry and constraints placed on the Company's actions by the Public Utility Holding Company Act of 1935; adverse changes in applicable laws, regulations, rules, principles or practices governing tax, accounting and environmental matters including, but not limited to, air quality; financial market conditions and performance including, but not limited to, changes in interest rates and in availability and cost of capital and the effects on the Company's pension plan assets and costs; ability to maintain current credit ratings; inflation rates; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of terrorist acts; increased competition including, but not limited to, retail choice in the electric utility industry and the entry of new competitors; ability to carry out marketing and sales plans; weather conditions including weather-related damage; cost, availability, quality and deliverability of fuel; ability to achieve generation planning goals and the occurrence and duration of unplanned generation outages; delays in the anticipated in-service dates of additional generating capacity; nuclear operations; ability to enter new markets successfully and capitalize on growth opportunities in non-regulated businesses; performance of projects undertaken by the Company's non-regulated businesses and the success of efforts to invest in and develop new opportunities; and other risks and uncertainties. This list of factors is not all-inclusive because it is not possible to predict all factors.