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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