Great Plains Energy, Inc. Q2 2009 Earnings Call

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2009-08-06 11:50:44.0

Tags: Great Plains Energy Inc., Equity, Earnings, Range, Investment, Financial Services, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line of Paul Ridzon, with KeyBanc.

Paul Ridzon - KeyBanc

Given the visibility you have now, are you still pretty confident that there is going to be no need to come back for a second buy at the [equity apple]?

Mike Chesser

At this point, we see no need to do that.

Paul Ridzon - KeyBanc

What are the current plans for the [wind farm] you're you are obligated under the CEP?

Mike Chesser

While we're continuing to evaluate options there. We are working with a potential provider of a PPA, and if that comes through then we'll go with that route, if not we'll build it ourselves.

Paul Ridzon - KeyBanc

Would do the self build, would you envision a need for equity?

Mike Chesser

No.

Paul Ridzon - KeyBanc

Terry it sounds like you are maintaining guidance, but you are watching developments very carefully, is that a fair characterization?

Terry Bassham

Very fair, we are very pleased with the way we've been able to manage O&M and overcome delays in the rate case and other things and really lock our results here to-date, but we still produce 60% of our earning through the summer, and with the economy we're just being careful.

Operator

Your next question comes from the line of Leon Dubov with Catapult.

Leon Dubov - Catapult

Hey just on the guidance comments. You guys are kind of being little more cautious. I'm wondering if some of these drivers are kind of pushing you from sort of the high-end of the range to the lower end or you think maybe the whole range might be kind of that high.

Terry Bassham

Well, I think the whole range is possible.

Mike Chesser

That would be a way to answer that. I mean, there is a lot of different scenarios that could play out over the next six months. If we were to have significantly cold weather in August to September, if the economy were to decline further, we have a Wolf Creek outage coming up that we plan to have it go well, but that's always a risk.

So, I can see a scenario where we come out at the low end, but I can also see a scenario where we come out on the high end, if the weather becomes more normalized and our Wolf Creek goes well. So we really do have that kind of variability in the range at this point.

 

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