Kansas City Utility Merges

UtiliCorp United Inc. and Kansas City Power & Light Co. said today they’ve agreed to merge in a $3 billion deal that continues the consolidation of the utility industry.

Together, the two Kansas City-based energy producers will have about 2.2 million customers and $6.4 billion in assets.

Utility mergers have become more commonplace recently as expectations have grown for further industry deregulation that would intensify competition. By merging, utilities can spread their costs out over more customers.

Spokane-based Washington Water Power Co. is attempting to merge with Sierra Pacific Resources of Reno, Nev., but the Federal Energy Regulatory Commission delayed the merger and scheduled hearings on its potential impacts.

KCPL provides electricity in Kansas City, eastern Kansas and western Missouri, while UtiliCorp sells electricity and gas in several parts of the United States, as well as Canada, Britain, New Zealand, Australia and Jamaica.