US: Midwest energy utility merger approved by shareholders

On Tuesday, November 22, shareholders officially approved combining the company with Great Plains Energy. While some shareholders were in attendance, Westar spokesperson Gina Penzig said much of the voting took place through the mail or by electronic voting. The move is not the last step in the merger, however.

“We expect there to be more regulatory activity, things like that, starting up in January after the first of the year,” Penzig explained during an update provided to shareholders last month.

A filing with the Securities and Exchange Commission shows the companies hope to win final approvals and complete the merger by mid-2018. It must be approved by regulators in both Kansas and Missouri.

In the filing, Great Plains says the merger would save the companies US$555 million in the first five years, which would translate to fewer rate increase requests. If it fails to win regulatory approval, Westar will get US$190 million, down from a US$380 million fee in the companies’ prior agreement that regulators rejected.

Full Content: KSN

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