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Economic Development- Incentives

Missouri/Kansas Economic Development Rider (EDR)
The incentive is a five-year declining step price discount for new or expanding business. The first year, pretax deduction is 30%; the second year is 25%, the third year is 20%; the fourth year is 15%, and the fifth year is 10%. In Missouri the summer months of June, July and August are excluded. In Kansas the incentive is available for all months.

Customers must have at least 200 kilowatts of load to participate. An incentive from a government unit is required. The load factor for the facility must be equal to or greater than KCP&L's average system load factor.

Missouri Urban Core Economic Development Rider (UC-EDR)
The incentive is a 5-year declining step price discount for new or expanding business. The first year, pretax deduction is 25%; the second year is 20%, the third year is 15%; the fourth year is 10%, and the fifth year is 5%. The incentive is available for all months.

Customers must create at least two full-time jobs. An incentive from a government unit is required. The facility must be located on a KCP&L Distribution electrical circuit that is no more than 70% utilized. A maximum credit total of $50,000 is available per application.

MPower Load Curtailment Program
MPower provides customers with an annual payment just for agreeing to "be on call" to reduce electric usage by a fixed amount if requested. It also provides an additional payment every time a customer is asked to reduce electric usage and successfully does so. Customers must curtail a minumum of 25 kilowatts to be eligible to participate. Incentives range from $25 to $45 per kilowatt-season, depending upon the term of the contract. Contracts are available with terms of one, three and five years.

Participating customers must be able to curtail electrical load on weekdays between noon and 10 p.m. upon 4-hour notice from KCP&L. Weekends and holidays are exempt from the program. Curtailment season runs from June 1 to September 30.

KCP&L can call no more than 10 times and no more than 80 hours total during the curtailment season. Customers who do not curtail when called will pay a penalty for non-compliance.

Real Time Pricing (RTP)
Customers who can reduce load or shift load to low price times can benefit from this incentive. Real time pricing allows customer choice and rewards positive action with market pricing. Those on RTP can also utilize KCP&L's online monitoring system to track load and real-time prices.

Revenue Justification
KCP&L allows a first year estimated revenue credit for non-residential customers against the standard cost of service. The credit uses a formula that computes 85% of estimated first year revenue from the customer project and compares it to the standard electrical service cost of the facility. Any service cost not covered by the revenue estimate must be paid up front by the customer before electrical service construction can begin.

Revised 5/18/04