KPC&L’s Energy Efficiency Initiatives Kevin Bryant Vice President, Energy Solutions Kansas City Power & Light September 26, 2007

1 Our Comprehensive Energy Plan represents a balanced approach to meet the needs of our customers Affordable, reliable energy to fuel long-term economic growth Environmental improvements to keep our area’s air clean Renewable energy Infrastructure investment to reduce frequency and duration of outages Programs to give customers more control over their energy usage

2 To meet the rising demand, KCP&L would have to purchase power on the open wholesale market. KCP&L Supply Requirement 1 1 Supply requirements include estimated average annual load growth of approximately 2%, plus the required 12% reserve margin 2 Current capacity changes with expiration of capacity contracts Growing demand for electricity will challenge our supply options…

3 Portfolio of Options Efficiency Renewables Nuclear Generation Advanced Coal Generation Carbon Capture & Storage Electric Transportation Distributed Energy Resources … while achievement of CO 2 reductions will require management of a portfolio of options

4 As a result, we currently find ourselves at a crossroads Rising fuel costs Increasing environmental constraints Increasing demand for electricity

5 Our challenge is in defining a shared commitment to improving the quality of life among the company, customers and communities we serve Energy efficiency addresses this challenge by: –Establishing a “first” fuel resource that can help defer investments in new generating capacity as part of long-term resource planning –Allowing for a more effective use of scarce resources –Providing customers with solutions that provide them with more information and control over their energy usage –Increasing energy independence Energy Efficiency can become a very important solution

6 We are working to develop and promote a well-rounded portfolio of energy efficiency programs

7 Our existing programs continue to gain scale Over 200 homes weatherized since 2006 Nearly 40,000 customers participate in the Change A Light program Home Energy Analyzer usage exceeds projections by nearly 190% Approximately $350k invested with customers as part of the C&I Custom Rebate – Retrofit program Over 20,000 customers expected to participate in our Energy Optimizer program by year-end MPower participation has increased significantly in 2007

8 Working towards LEEDS certification at all KCP&L facilities –Starting with 1201 Walnut corporate headquarters –Second phase will include other KCP&L owned facilities Partnering with customers and key stakeholders to identify demonstration projects and other opportunities that promote energy efficiency and environmental education and outreach –Beacon Hill –GE Ecomagination & waste treatment –Bayer Crop Science (BCS) Community Advisory Panel –Plaza Lighting LED demonstration We continue to further explore and evaluate the possibilities for energy efficiency

9 We are currently engaged with both local and national initiatives to promote and demonstrate leadership for energy efficiency –National EEI and EPRI task forces on energy efficiency –Regional/State Missouri Energy Development Association (MEDA) MO Governor’s Energy Task Force Action Plan KS Governor’s CEO discussion KCC energy efficiency docket –Local Energy Task Force of Greater Kansas City Chamber of Commerce KCMO Greenhouse gas initiative We are currently engaged with various initiatives to promote and demonstrate leadership for energy efficiency

10 Obstacles do exist that serve to hamper customer adoption of energy efficiency –Customer education and trust –Development of an efficiency marketing and delivery channel –Technology integration –Scale Utilities are uniquely positioned to advance energy efficiency Utilities are in a unique position to play a role in the maximization of Energy Efficiency as a resource

11 Can be deployed as part of a balanced portfolio of energy resources to offset demand growth –Existing/new energy efficiency technologies can be brought online faster and potentially cheaper than supply side options –Programs can be offered that benefit all customer segments Reduces emissions related to the production of energy from carbon sources –Represents the best option to reduce carbon in the next 10 years –Renewables can and should represent a key component of a balanced portfolio as well New nuclear plants and/or other technologies that would capture carbon are at least 10 years away Energy Efficiency represents the common denominator for KCP&L’s supply and climate change strategies Aggressive energy efficiency adoption should be part of a preferred solution to bridge us to new technologies that will be utilized in the future

12 Energy costs, reliability and the environment impact the quality of life in our community –Economic development and quality jobs depend on the cost and availability of reliable power –Along with our environment initiatives, we also see more communities focusing on improving the environment Decisions that we, as a utility, make need to be viewed over a long horizon to ensure the right environmental and economic balance We recognize the power of bringing a broad group of stakeholders together to deal with complex problems –We are committed to work with all stakeholders to find the optimal solution This is a community challenge and will require a community solution In order to fully harvest the Energy Efficiency opportunity, this collaboration is crucial

13 In order to successfully develop energy efficiency as a sustainable “first” fuel capability, legislative and regulatory support is required –Legislative support can provide direction that regulators can use when assessing energy efficiency initiatives –Regulatory support can address disincentives related to actions that would otherwise increase investment in energy efficiency Again, legislative and regulatory support is critical

14 Begin a collaborative and inclusive effort to shape state policy in a manner that embraces energy efficiency. To enable a positive business model for energy efficiency Build awareness and support among key stakeholder groups for energy efficiency Gain public support and momentum to more aggressively pursue energy efficiency Build public support for legislative and regulatory enablers that will be critical to drive wide-spread adoption of energy efficiency programs –Energy efficiency should be treated as a “first fuel” and part of the industry’s future energy portfolio required to meet customer’s growing need for electricity –The utility industry should be compensated fairly for implementing energy efficiency reduction programs that reduce energy consumed as it for initiatives that produce and deliver energy to its customers (See Energy Efficiency Principles) Increase awareness and dialog Recent Energy Efficiency Forum was a first step in working towards a collaborative solution

15 Summary We are committed to demonstrating environmental responsibility –Energy efficiency represents an attractive resource that has significant value for KCP&L, our customers and our community While we have taken significant steps to promote energy efficiency as a resource, much work remains to be done –Understanding the barriers, defining a business model & building coalitions to support it –Drive customer adoption through innovative marketing and delivery of products and services We are excited about the future and are well positioned to participate in a collaborative dialogue going forward