TOPEKA, Kan. (KSNT) — A merger between Westar and Great Plains Energy will get you a credit on your electric bill.
The two companies announced Monday morning they are merging as equals. The merger simply means the two companies will combine to form one new company.
Some people have concerns about how it will affect them, but Westar assures it’s customers there is no need to worry.
“So confident are we in the savings and efficiencies that will come from this transaction that we will provide immediate bill credits of at least 50 million dollars,” Westar Energy President Mark Ruelle said.
The $50 million in credits will be shared among all customers of both companies across Kansas and Missouri. This money comes from the expected savings brought on by the merger.
The merge is also expected to lower the companies operating costs.
“So combining these companies is a strategic opportunity to do things more efficiently therefore not cost our customers anymore than we have to,” Great Plains Energy Executive Officer Terry Bassham said.
Gina Penzig is Westar’s media relations manager and noted that some of the rate increases that people have seen in the last decade on their bills are going to be less in the future.
Representatives of both companies said the merger will be seamless to customers.
“We know best practices, and the best people from both companies will cause us to be the best company we can be,” Bassham said.
The new company’s name will be announced at a later date once the merger is final. The new company will provide power to nearly one million Kansans.
The corporate headquarters for the new company will be in Kansas City, Missouri. However, the deal does keep the Topeka location where it is with its 500 jobs for at least five years.
A merger application has to be filed through the Kansas Corporation Commission for the second time and the KCC has no more than 300 days to review it.