Aquila

Under new ownershipThe sale of Aquila to two separate buyers is not expected to change the culture or the cost of electricity and natural gas in the Midwest. Kate Sawyer takes a reading. For 90 years, Kansas City, Missouri-based Aquila (and its predecessors) has provided safe, reliable electricity and natural gas service to customers throughout Colorado, Iowa, Kansas, Missouri, and Nebraska. Those customers, however, will soon be writing their checks to different utility names.In July, the assets of Aquila were sold in two separate transactions. The companyÔÇÖs Colorado electric utility and its natural gas properties in Colorado, Iowa, Kansas, and Nebraska have been acquired by Black Hills Corporation, and its electric properties in Missouri have been acquired by Great Plains Energy, to be managed under the title Kansas City Power and Light (KCP&L).ÔÇ£Our acquisition of Aquila will create significant savings for both Aquila and KCP&L customers,ÔÇØ announced Michael Chesser, chairman and CEO of Great Plains Energy. ÔÇ£In todayÔÇÖs rising-cost environment, this transaction is just one part of our plan to maintain affordable energy prices for the customers and communities we serve. The integration of KCP&L and Aquila operations creates a solid platform of customer, community, and shareholder value and is a critical part of our plan to provide clean, affordable and reliable energy to our region for generations to come.ÔÇØ Black Hills first announced its intention to acquire five Aquila utilities in February 2007, and now the deal has finally been approved, Aquila trucks, signs and customer bills will be changed to read Black Hills Energy.ÔÇ£The Aquila transaction more than doubles the number of Black Hills employees and increases our utility customer base five-fold,ÔÇØ said David R. Emery, chief executive officer of Black Hills, in a press release. ÔÇ£We welcome these new employees and look forward to serving our new customers. I am extremely proud of the Aquila and Black Hills employees and thank them for their hard work and dedication.ÔÇØ Aquila employees have been renowned for their strong commitment to service, be it volunteerism, contributions, civic involvement, assisting energy efficiency programs, or numerous other outreach and partnering programs. The company actively promoted corporate responsibility and had a healthy granting program for non-profits specifically dealing with youth development.Aquila has also been an active environmental steward, with its own Corporate Environmental Steering Committee to ensure that its multiple programs, from the Iowa Trees Forever to Trees for Kids and Teens, could be safeguarded. In 2007, AquilaÔÇÖs Solar Rebate Program, which offers rebates to customers who install photovoltaic systems and thereby help to meet ColoradoÔÇÖs Renewable Energy Standard, boasted an impressive 104 on-site solar photovoltaic systems.Another environmental endeavor was AquilaÔÇÖs Agri-Energy Complex, a 2,200-foot pipeline that was built in 2007 to serve the worldÔÇÖs first agri-energy complex, Beatrice Biodiesel, in Beatrice, Nebraska, which converted 422,000 MMBtu of natural gas into 60 million gallons of biodiesel. AquilaÔÇÖs penchant for good business practices and good behavior was recognized in 2007 by J.D. Power and Associates. AquilaÔÇÖs customer service centers in Raytown, Missouri and Omaha, Nebraska were selected for their work as outstanding customer service providers.Judged against consumer responses regarding 16 utilities in the Midwest, Aquila ranked third in the 2008 Electric Utility Business Customer Satisfaction Study. On the national level, it ranked 13 out of 56 participating utilities and tied for seventh in the power quality and reliability segment. The study was conducted online and is based on interviews with representatives of more than 13,500 US businesses that spend between $500 and $50,000 each month on electricity. In addition, AquilaÔÇÖs quality of customer service increased from 2007 and was measured on power quality and reliability, customer service, company image, billing and payment, price, and communications. Although Aquila is no longer a single legal entity, its legacy of service and stewardship will surely live on. ÔÇ£Our customers can continue to expect superior customer service and the hometown feel to the service we provide,ÔÇØ said Ivan Vancas, vice president for Black HillsÔÇÖ natural gas operations in Kansas and Colorado, took up the job after serving as head of AquilaÔÇÖs electric operations in Kansas City.Vancas said that Black Hills would work to support both economic-development and public-service initiatives in its many communities, including Lawrence, while retaining much of what customers long have come to demand.Monthly bills should not change significantly as a result of the acquisition, other than a new name appearing at the top, as administrative and other costs that are passed along to customers will remain frozen for at least the next three years, as part of an agreement with regulators.┬á