Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Kansas Gas and Electric Company - Lehman Brothers Collection

Kansas Gas and Electric Company

List of Deals

The American Power & Light Company organized the Kansas Gas and Electric Company in 1909 to operate utilities in Wichita, Pittsburg, and Frontenac. It was incorporated in West Virginia on December 11, 1909.

At the end of 1910 Kansas Gas & Electric began operations by serving three communities and 5,525 customers. By 1913 Kansas Gas & Electric had 22,845 customers and earnings of $940,724. In 1918 earnings were $1.8 million.

By 1925 service extended to fifty communities and 48,773 customers. At one time, KG&E also provided natural gas to Hutchinson, Newton, Pittsburg and Wichita.

In 1942 the SEC ordered American Power & Light to dissolve, and for several years afterwards, American Power & Light reduced its equity in Kansas Gas & Electric. In July 1949 Kansas Gas & Electric sold 550,000 shares at $26.63. Of these shares, 450,000 represented the remaining holdings of American Power; the balance of 100,000 shares was sold by Kansas Gas & Electric to raise funds to finance its construction program and repay short-term loans. At the time, Kansas Gas & Electric was engaged in the generation and sale of electric power in southeastern Kansas and in a small section of Missouri adjacent to the Kansas state line.

Demand for power in Kansas increased during the 1950s, and Kansas Gas & Electric continued to invest in plant and equipment to meet this demand. Between 1951 and 1953, it spent $18 million for production facilities and completion of a second generating unit of 70,000-kilowatt capacity at the Murray Hill station near Wichita and a third 70,000-kilowatt unit at Neosho Station near Parsons; $2 million for transmission lines and substations; $7.3 million for distribution facilities; and $2.9 million for additions to general property and equipment, including a new general office building in Wichita.

Kansas Gas & Electric was listed on the New York Stock Exchange in 1955.

Earnings for Kansas Gas & Electric climbed to a record $7.8 million in 1961 due to increasing demand for electrical power by the 170,000 customers it served. Earnings continued to rise, to $8.1 million in 1962.

In mid-1967 Kansas Gas & Electric began operating a new 380,000-kilowatt plant that increased generating capacity by 49 percent. In 1967 Kansas Gas & Electric also requested water rights at the John Redmond Reservoir in order to construct a nuclear power plant, which would go online in the 1970s.

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