FORM 10-Q

                SECURITIES AND EXCHANGE COMMISSION

                     WASHINGTON, D.C.  20549

   [x]       QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934


        For the quarterly period ended September 30, 1997


   [ ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
               THE SECURITIES EXCHANGE ACT OF 1934

       For the transition period from          to         

                  Commission file number 1-7324

                  KANSAS GAS AND ELECTRIC COMPANY           
      (Exact name of registrant as specified in its charter)

           KANSAS                                              48-1093840    
(State or other jurisdiction of                             (I.R.S.  Employer
 incorporation or organization)                            Identification No.)

                           P.O. BOX 208
                      WICHITA, KANSAS  67201
             (Address of Principal Executive Offices)

                           316/261-6611
       (Registrant's telephone number, including area code)

Indicated by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

                      Yes   X      No       


Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

           Class                               Outstanding at October 29, 1997
 Common Stock (No par value)                           1,000 Shares       


Registrant meets the conditions of General Instruction H(1)(a) and (b) to Form
10-Q and is therefore filing this form with a reduced disclosure format.




<PAGE> 2
                 KANSAS GAS AND ELECTRIC COMPANY
                              INDEX



                                                                       Page

PART I.  Financial Information

     Item 1.  Financial Statements

              Balance Sheets                                             3 

              Statements of Income                                     4 - 6

              Statements of Cash Flows                                 7 - 8

              Statements of Capitalization                               9 

              Statements of Common Stock Equity                         10 

              Notes to Financial Statements                             11  

     Item 2.  Management's Discussion and Analysis of Financial
                 Condition and Results of Operations                    15


Part II.  Other Information

     Item 4.  Submission of Matters to a Vote of Security Holders       18

     Item 6.  Exhibits and Reports on Form 8-K                          18

Signature                                                               19
<PAGE> 3
<TABLE>
                 KANSAS GAS AND ELECTRIC COMPANY
                          BALANCE SHEETS
                      (Dollars in Thousands)
                          (Unaudited)
<CAPTION>
                                                             September 30,     December 31,
                                                                  1997             1996    
<S>                                                             <C>             <C>
ASSETS 

UTILITY PLANT: 
  Electric plant in service . . . . . . . . . . . . . . . .     $3,515,682       $3,487,213
  Less - Accumulated depreciation . . . . . . . . . . . . .      1,033,113          974,451
                                                                 2,482,569        2,512,762
  Construction work in progress . . . . . . . . . . . . . .         44,128           33,197
  Nuclear fuel (net). . . . . . . . . . . . . . . . . . . .         39,160           38,461
    Net utility plant . . . . . . . . . . . . . . . . . . .      2,565,857        2,584,420
                                                                              
INVESTMENTS AND OTHER PROPERTY:                                              
  Decommissioning trust . . . . . . . . . . . . . . . . . .         42,081           33,041
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .         10,108            9,093
                                                                    52,189           42,134
                                                                              
CURRENT ASSETS:                                                               
  Cash and cash equivalents . . . . . . . . . . . . . . . .             44               44
  Accounts receivable and unbilled revenues (net) . . . . .         81,343           75,671
  Advances to parent company (net). . . . . . . . . . . . .         35,999          250,733
  Fossil fuel, at average cost. . . . . . . . . . . . . . .         10,685           13,459
  Materials and supplies, at average cost . . . . . . . . .         29,192           30,187
  Prepayments and other current assets. . . . . . . . . . .         25,758           16,991
                                                                   183,021          387,085
                                                                              
DEFERRED CHARGES AND OTHER ASSETS:                                            
  Regulatory asset - recoverable taxes. . . . . . . . . . .        206,800          164,520
  Regulatory assets . . . . . . . . . . . . . . . . . . . .        105,129          122,388
  Corporate-owned life insurance (net). . . . . . . . . . .         10,899           10,341
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .          3,527            7,999
                                                                   326,355          305,248
                                                                              
     TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . .     $3,127,422       $3,318,887
                                                                              
                                                                              
CAPITALIZATION AND LIABILITIES                                                
                                                                              
CAPITALIZATION (see statements):
  Common stock equity . . . . . . . . . . . . . . . . . . .     $1,165,790       $1,182,351
  Long-term debt (net). . . . . . . . . . . . . . . . . . .        684,096          684,068
                                                                 1,849,886        1,866,419
                                                                                           
CURRENT LIABILITIES:                                                          
  Short-term debt . . . . . . . . . . . . . . . . . . . . .           -             222,300
  Accounts payable. . . . . . . . . . . . . . . . . . . . .         51,138           48,819
  Accrued taxes . . . . . . . . . . . . . . . . . . . . . .         38,789           35,358
  Accrued interest. . . . . . . . . . . . . . . . . . . . .         13,737            9,445
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .          7,134            6,726
                                                                   110,798          322,648
                                                                              
DEFERRED CREDITS AND OTHER LIABILITIES:                                       
  Deferred income taxes . . . . . . . . . . . . . . . . . .        782,682          753,511
  Deferred investment tax credits . . . . . . . . . . . . .         67,288           69,722
  Deferred gain from sale-leaseback . . . . . . . . . . . .        224,736          233,060
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .         92,032           73,527
                                                                 1,166,738        1,129,820
COMMITMENTS AND CONTINGENCIES (Note 2)                              
     TOTAL CAPITALIZATION AND LIABILITIES . . . . . . . . .     $3,127,422       $3,318,887
    
The Notes to Financial Statements are an integral part of these statements.
</TABLE>
<PAGE> 4
<TABLE>
                 KANSAS GAS AND ELECTRIC COMPANY
                      STATEMENTS OF INCOME 
                      (Dollars in Thousands)
                           (Unaudited)

<CAPTION>
                                                                    Three Months Ended   
                                                                       September 30,      
                                                                    1997           1996    
<S>                                                              <C>            <C>
OPERATING REVENUES. . . . . . . . . . . . . . . . . . . . .      $  191,066     $  193,198 
                                                                             
OPERATING EXPENSES:                                                          
  Fuel used for generation:                                                  
    Fossil fuel . . . . . . . . . . . . . . . . . . . . . .          28,861         29,082
    Nuclear fuel (net). . . . . . . . . . . . . . . . . . .           6,388          6,299
  Power purchased . . . . . . . . . . . . . . . . . . . . .            (474)         1,916
  Other operations. . . . . . . . . . . . . . . . . . . . .          38,055         31,355
  Maintenance . . . . . . . . . . . . . . . . . . . . . . .          12,420         11,388
  Depreciation and amortization . . . . . . . . . . . . . .          24,000         23,847
  Amortization of phase-in revenues . . . . . . . . . . . .           4,386          4,386
  Taxes:                                                                                  
    Federal income. . . . . . . . . . . . . . . . . . . . .          19,486         18,156
    State income  . . . . . . . . . . . . . . . . . . . . .           4,802          4,825
    General . . . . . . . . . . . . . . . . . . . . . . . .          10,662         12,512 
      Total operating expenses. . . . . . . . . . . . . . .         148,586        143,766 
                                                                           
OPERATING INCOME. . . . . . . . . . . . . . . . . . . . . .          42,480         49,432
                                                                             
OTHER INCOME AND DEDUCTIONS:                                                
  Corporate-owned life insurance (net). . . . . . . . . . .          (2,811)         2,648 
  Miscellaneous (net) . . . . . . . . . . . . . . . . . . .             797          1,091
  Income taxes (net). . . . . . . . . . . . . . . . . . . .           3,382          2,563
      Total other income and deductions . . . . . . . . . .           1,368          6,302
                                                                           
INCOME BEFORE INTEREST CHARGES. . . . . . . . . . . . . . .          43,848         55,734
                                                                             
INTEREST CHARGES:                                                            
  Long-term debt. . . . . . . . . . . . . . . . . . . . . .          11,526         11,505
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .             975          3,937
  Allowance for borrowed funds used                                            
    during construction (credit). . . . . . . . . . . . . .            (428)          (444)
      Total interest charges. . . . . . . . . . . . . . . .          12,073         14,998 
                                                                             
NET INCOME. . . . . . . . . . . . . . . . . . . . . . . . .      $   31,775     $   40,736


The Notes to Financial Statements are an integral part of these statements. 
</TABLE>
<PAGE> 5
<TABLE>
                 KANSAS GAS AND ELECTRIC COMPANY
                      STATEMENTS OF INCOME 
                      (Dollars in Thousands)
                           (Unaudited)
<CAPTION>

                                                                     Nine Months Ended    
                                                                       September 30,      
                                                                    1997           1996    
<S>                                                              <C>             <C>
OPERATING REVENUES. . . . . . . . . . . . . . . . . . . . .      $  483,683      $ 501,270 
                                                                             
OPERATING EXPENSES:                                                          
  Fuel used for generation:                                                  
    Fossil fuel . . . . . . . . . . . . . . . . . . . . . .          61,983         73,062
    Nuclear fuel (net). . . . . . . . . . . . . . . . . . .          18,678         13,674
  Power purchased . . . . . . . . . . . . . . . . . . . . .           6,878          8,740
  Other operations. . . . . . . . . . . . . . . . . . . . .         109,816        101,031
  Maintenance . . . . . . . . . . . . . . . . . . . . . . .          39,586         38,726
  Depreciation and amortization . . . . . . . . . . . . . .          72,719         70,709
  Amortization of phase-in revenues . . . . . . . . . . . .          13,158         13,158
  Taxes:                                                                                  
    Federal income. . . . . . . . . . . . . . . . . . . . .          31,149         30,828
    State income  . . . . . . . . . . . . . . . . . . . . .           8,320          8,817
    General . . . . . . . . . . . . . . . . . . . . . . . .          31,018         36,600 
      Total operating expenses. . . . . . . . . . . . . . .         393,305        395,345 
                                                                          
OPERATING INCOME. . . . . . . . . . . . . . . . . . . . . .          90,378        105,925
                                                                             
OTHER INCOME AND DEDUCTIONS:                                                
  Corporate-owned life insurance (net). . . . . . . . . . .          (6,280)        (1,101)
  Miscellaneous (net) . . . . . . . . . . . . . . . . . . .           2,138          2,662
  Income taxes (net). . . . . . . . . . . . . . . . . . . .           8,836          7,890
      Total other income and deductions . . . . . . . . . .           4,694          9,451
                                                                           
INCOME BEFORE INTEREST CHARGES. . . . . . . . . . . . . . .          95,072        115,376
                                                                             
INTEREST CHARGES:                                                            
  Long-term debt. . . . . . . . . . . . . . . . . . . . . .          34,533         34,804
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .           3,531          8,306
  Allowance for borrowed funds used                                            
    during construction (credit). . . . . . . . . . . . . .          (1,431)        (1,423)
      Total interest charges. . . . . . . . . . . . . . . .          36,633         41,687 
                                                                             
NET INCOME. . . . . . . . . . . . . . . . . . . . . . . . .      $   58,439     $   73,689


The Notes to Financial Statements are an integral part of these statements. 
</TABLE>
<PAGE> 6
<TABLE>
                 KANSAS GAS AND ELECTRIC COMPANY
                      STATEMENTS OF INCOME 
                      (Dollars in Thousands)
                           (Unaudited)

<CAPTION>
                                                                   Twelve Months Ended   
                                                                       September 30,      
                                                                    1997           1996    
<S>                                                              <C>            <C>
OPERATING REVENUES. . . . . . . . . . . . . . . . . . . . .      $  636,983     $  639,452 
                                                                             
OPERATING EXPENSES:                                                          
  Fuel used for generation:                                                  
    Fossil fuel . . . . . . . . . . . . . . . . . . . . . .          80,745         91,898
    Nuclear fuel (net). . . . . . . . . . . . . . . . . . .          24,966         18,251
  Power purchased . . . . . . . . . . . . . . . . . . . . .           9,621          9,835
  Other operations. . . . . . . . . . . . . . . . . . . . .         143,505        128,877
  Maintenance . . . . . . . . . . . . . . . . . . . . . . .          49,803         50,696
  Depreciation and amortization . . . . . . . . . . . . . .          98,319         93,686
  Amortization of phase-in revenues . . . . . . . . . . . .          17,544         17,545
  Taxes:                                                                                  
    Federal income. . . . . . . . . . . . . . . . . . . . .          36,477         39,089
    State income  . . . . . . . . . . . . . . . . . . . . .           9,958         10,910
    General . . . . . . . . . . . . . . . . . . . . . . . .          40,601         47,719 
      Total operating expenses. . . . . . . . . . . . . . .         511,539        508,506 
                                                                          
OPERATING INCOME. . . . . . . . . . . . . . . . . . . . . .         125,444        130,946
                                                                             
OTHER INCOME AND DEDUCTIONS:                                                
  Corporate-owned life insurance (net). . . . . . . . . . .          (7,428)         2,016 
  Miscellaneous (net) . . . . . . . . . . . . . . . . . . .           2,873          3,844
  Income taxes (net). . . . . . . . . . . . . . . . . . . .          11,299         12,375
      Total other income and deductions . . . . . . . . . .           6,744         18,235
                                                                           
INCOME BEFORE INTEREST CHARGES. . . . . . . . . . . . . . .         132,188        149,181
                                                                             
INTEREST CHARGES:                                                            
  Long-term debt. . . . . . . . . . . . . . . . . . . . . .          46,033         46,567
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .           6,983          9,690
  Allowance for borrowed funds used                                            
    during construction (credit). . . . . . . . . . . . . .          (1,852)        (2,363)
      Total interest charges. . . . . . . . . . . . . . . .          51,164         53,894 
                                                                             
NET INCOME. . . . . . . . . . . . . . . . . . . . . . . . .      $   81,024     $   95,287


The Notes to Financial Statements are an integral part of these statements. 
</TABLE>
<PAGE> 7
<TABLE>
                 KANSAS GAS AND ELECTRIC COMPANY
                    STATEMENTS OF CASH FLOWS 
                      (Dollars in Thousands)
                           (Unaudited)
<CAPTION>

                                                                     Nine Months Ended    
                                                                       September 30,      
                                                                    1997           1996   
<S>                                                              <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:                                        
  Net income. . . . . . . . . . . . . . . . . . . . . . . . .    $   58,439     $   73,689
  Depreciation and amortization . . . . . . . . . . . . . . .        72,719         70,709 
  Amortization of nuclear fuel. . . . . . . . . . . . . . . .        14,910         10,694
  Amortization of phase-in revenues . . . . . . . . . . . . .        13,158         13,158 
  Corporate-owned life insurance policies . . . . . . . . . .       (20,649)       (23,334)
  Amortization of gain from sale-leaseback. . . . . . . . . .        (8,324)        (7,230)
  Changes in other working capital items:                                                        
    Accounts receivable and unbilled revenues (net) . . . . .        (5,672)        (9,751)
    Fossil fuel . . . . . . . . . . . . . . . . . . . . . . .         2,774          1,894 
    Accounts payable. . . . . . . . . . . . . . . . . . . . .         2,319         (7,011)
    Interest and taxes accrued. . . . . . . . . . . . . . . .         7,723         45,476 
    Other . . . . . . . . . . . . . . . . . . . . . . . . . .        (6,311)        (2,664)
  Changes in other assets and liabilities . . . . . . . . . .        (6,143)       (19,213)
      Net cash flows from operating activities. . . . . . . .       124,943        146,417 
                                                                                      
CASH FLOWS USED IN INVESTING ACTIVITIES:                                                  
  Additions to utility plant. . . . . . . . . . . . . . . . .        66,923         47,430 
  Corporate-owned life insurance policies . . . . . . . . . .        25,104         24,905 
  Death proceeds of corporate-owned life insurance policies .        (1,810)        (9,010)
      Net cash flows used in investing activities . . . . . .        90,217         63,325 
                                                                                      
CASH FLOWS FROM FINANCING ACTIVITIES:                                                     
  Short-term debt (net) . . . . . . . . . . . . . . . . . . .      (222,300)       160,000 
  Advances to parent company (net). . . . . . . . . . . . . .       214,734       (192,471)
  Bonds retired . . . . . . . . . . . . . . . . . . . . . . .           (65)       (16,135)
  Borrowings against life insurance policies. . . . . . . . .        48,488         45,136
  Repayments of borrowings against life insurance policies. .          (583)        (4,611)
  Dividends to parent company . . . . . . . . . . . . . . . .       (75,000)       (75,000)
     Net cash flows from (used in) financing activities . . .       (34,726)       (83,081)
                                                                                     
NET INCREASE IN CASH AND CASH EQUIVALENTS . . . . . . . . . .             0             11

CASH AND CASH EQUIVALENTS:
  BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . .            44             53 
  END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . .    $       44     $       64
                                                                                    

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                                   
CASH PAID FOR:                                                                      
   Interest on financing activities (net of amount                                  
       capitalized) . . . . . . . . . . . . . . . . . . . . .    $   57,609      $  59,873 
   Income taxes . . . . . . . . . . . . . . . . . . . . . . .        52,100         21,600 


The Notes to Financial Statements are an integral part of these statements.
</TABLE>
<PAGE> 8
<TABLE>
                 KANSAS GAS AND ELECTRIC COMPANY
                    STATEMENTS OF CASH FLOWS 
                      (Dollars in Thousands)
                           (Unaudited)

<CAPTION>
                                                                    Twelve Months Ended   
                                                                       September 30,      
                                                                    1997           1996   
<S>                                                              <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:                                        
  Net income. . . . . . . . . . . . . . . . . . . . . . . . .    $   81,024     $   95,287
  Depreciation and amortization . . . . . . . . . . . . . . .        98,319         93,686 
  Amortization of nuclear fuel. . . . . . . . . . . . . . . .        19,901         14,201
  Amortization of phase-in revenues . . . . . . . . . . . . .        17,544         17,545 
  Corporate-owned life insurance policies . . . . . . . . . .       (27,028)       (37,125)
  Amortization of gain from sale-leaseback. . . . . . . . . .       (10,734)        (9,639)
  Changes in other working capital items:                                                        
    Accounts receivable and unbilled revenues (net) . . . . .         4,898          3,208 
    Fossil fuel . . . . . . . . . . . . . . . . . . . . . . .         4,943            196 
    Accounts payable. . . . . . . . . . . . . . . . . . . . .         7,366           (547)
    Interest and taxes accrued. . . . . . . . . . . . . . . .       (18,619)        (3,326)
    Other . . . . . . . . . . . . . . . . . . . . . . . . . .           774          3,213 
  Changes in other assets and liabilities . . . . . . . . . .         3,298          8,454 
      Net cash flows from operating activities. . . . . . . .       181,686        185,153 
                                                                                      
CASH FLOWS USED IN INVESTING ACTIVITIES:                                                  
  Additions to utility plant. . . . . . . . . . . . . . . . .        88,125         75,518
  Corporate-owned life insurance policies . . . . . . . . . .        25,846         29,609 
  Death proceeds of corporate-owned life insurance. . . . . .        (2,245)       (19,343)
      Net cash flows used in investing activities . . . . . .       111,726         85,784 
                                                                                      
CASH FLOWS FROM FINANCING ACTIVITIES:                                                 
  Short-term debt (net) . . . . . . . . . . . . . . . . . . .      (210,000)       180,950 
  Advances to parent company (net). . . . . . . . . . . . . .       191,420        (75,979)
  Bonds retired . . . . . . . . . . . . . . . . . . . . . . .           (65)       (16,135)
  Borrowings against life insurance policies. . . . . . . . .        49,330         46,604 
  Repayment of borrowings against life insurance policies . .          (665)        (9,796)
  Dividends to parent company . . . . . . . . . . . . . . . .      (100,000)      (225,000) 
     Net cash flows from (used in) financing activities . . .       (69,980)       (99,356)
                                                                                     
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS. . . . .           (20)            13 

CASH AND CASH EQUIVALENTS:
  BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . .            64             51 
  END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . .    $       44     $       64
                                                                                     
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                                   
CASH PAID FOR:                                                                      
   Interest on financing activities (net of amount                                  
       capitalized) . . . . . . . . . . . . . . . . . . . . .    $   76,448     $   77,407
   Income taxes . . . . . . . . . . . . . . . . . . . . . . .        62,600         32,600 


The Notes to Financial Statements are an integral part of these statements.
</TABLE>
<PAGE> 9
<TABLE>
                 KANSAS GAS AND ELECTRIC COMPANY
                   STATEMENTS OF CAPITALIZATION
                      (Dollars in Thousands)
                          (Unaudited)

<CAPTION>
                                                                 September 30,        December 31,  
                                                                     1997                 1996      
                                                                                                    
<S>                                                            <C>                  <C>
COMMON STOCK EQUITY (see statement):
  Common stock, without par value, authorized and issued
    1,000 shares. . . . . . . . . . . . . . . . . . . . . . .  $1,065,634           $1,065,634 
  Retained earnings . . . . . . . . . . . . . . . . . . . . .     100,156              116,717 
    Total common stock equity . . . . . . . . . . . . . . . .   1,165,790   63%      1,182,351   63%
</TABLE>
<TABLE>
LONG-TERM DEBT:
  First Mortgage Bonds:
       <S>                   <C>           <C>       <C>       <C>                  <C>
       Series                    Due         1997      1996  
       7.6%                      2003       135,000   135,000
       6-1/2%                    2005        65,000    65,000
       6.20%                     2006       100,000   100,000 
                                                                  300,000              300,000
  Pollution Control Bonds:
       5.10%                     2023        13,757    13,822 
       Variable  (a)             2027        21,940    21,940 
       7.0%                      2031       327,500   327,500 
       Variable  (a)             2032        14,500    14,500 
       Variable  (a)             2032        10,000    10,000 
                                                                  387,697              387,762
       Total bonds. . . . . . . . . . . . . . . . . . . . . .     687,697              687,762

  Less:
    Unamortized premium and discount (net). . . . . . . . . .       3,601                3,694
       Total long-term debt . . . . . . . . . . . . . . . . .     684,096   37%        684,068   37%

TOTAL CAPITALIZATION. . . . . . . . . . . . . . . . . . . . .  $1,849,886  100%     $1,866,419  100%


      (a)    Market-Adjusted Tax Exempt Securities (MATES).  As of September 30, 1997,
             the rate on these bonds was 3.83%.

 
The Notes to Financial Statements are an integral part of these statements.
</TABLE>
<PAGE> 10
<TABLE>
                 KANSAS GAS AND ELECTRIC COMPANY
                STATEMENTS OF COMMON STOCK EQUITY
                      (Dollars in Thousands)
                           (Unaudited)

<CAPTION>
                                                           Common          Retained      
                                                            Stock          Earnings 
<S>                                                      <C>              <C>
BALANCE DECEMBER 31, 1994, 1,000 shares. . . . . . .     $1,065,634       $  159,570 

Net income . . . . . . . . . . . . . . . . . . . . .                         110,873
Dividend to parent company . . . . . . . . . . . . .                        (150,000)


BALANCE DECEMBER 31, 1995, 1,000 shares. . . . . . .      1,065,634          120,443 

Net income . . . . . . . . . . . . . . . . . . . . .                          96,274 
Dividend to parent company . . . . . . . . . . . . .                        (100,000)


BALANCE DECEMBER 31, 1996, 1,000 shares. . . . . . .      1,065,634          116,717

Net Income . . . . . . . . . . . . . . . . . . . . .                          58,439     
Dividend to parent company . . . . . . . . . . . . .                         (75,000)


BALANCE SEPTEMBER 30, 1997, 1,000 shares . . . . . .     $1,065,634       $  100,156


The Notes to Financial Statements are an integral part of these statements.
</TABLE>
<PAGE> 11
                 KANSAS GAS AND ELECTRIC COMPANY
                  NOTES TO FINANCIAL STATEMENTS
                           (Unaudited)


1.  ACCOUNTING POLICIES AND OTHER INFORMATION

    General:  Kansas Gas and Electric Company (the company) is a rate-
regulated electric utility and wholly-owned subsidiary of Western Resources,
Inc. (Western Resources).  The company is engaged in the production, purchase,
transmission, distribution, and sale of electricity.  The company serves
approximately 277,000 electric customers in southeastern Kansas.  The company
has no employees.  All employees are provided by the company's parent, Western
Resources which allocates costs related to the employees of the company. 

    The company owns 47% of the Wolf Creek Nuclear Operating Corporation
(WCNOC), the operating company for the Wolf Creek Generating Station (Wolf
Creek).  The company records in its financial statements its proportionate
share of all transactions of WCNOC as it does other jointly-owned facilities.

    The company prepares its financial statements in conformity with
generally accepted accounting principles as applied to regulated public
utilities.  The accounting and rates of the company are subject to
requirements of the Kansas Corporation Commission (KCC) and the Federal Energy
Regulatory Commission.  The financial statements require management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities, to disclose contingent assets and liabilities at the balance
sheet date, and to report amounts of revenues and expenses during the
reporting period.  Actual results could differ from those estimates.  These
financial statements should be read in conjunction with the financial
statements and the notes thereto included in the company's 1996 Annual Report
on Form 10-K.

    The company currently applies accounting standards that recognize the
economic effects of rate regulation pursuant to Statement of Financial
Accounting Standards No. 71, "Accounting for the Effects of Certain Types of
Regulation", (SFAS 71) and, accordingly, has recorded regulatory assets and
liabilities related to its generation, transmission and distribution
operations.

    The Kansas Legislature has created a Retail Wheeling Task Force (the Task
Force) to study the implications of a deregulated and more competitive market
for electric services.  The Task Force is primarily composed of legislators,
regulators, consumer advocates and representatives from the electric industry. 
A draft bill under consideration by the Task Force would implement competition
for retail electric service beginning July 1, 2001.  The Task Force is also
evaluating how certain investments which were approved and incurred under the
existing regulatory model should be recovered.  Certain of these investments
may not be recoverable.  These investments are commonly referred to as
"stranded costs".  At this date, it is not possible to predict the results of
the Task Force's effect or the impact it may have on the company.

    There can be no assurance at this time that stranded costs will be fully
recoverable if open competition is initiated in the electric utility market. 
In the event the company determines that it no longer meets the criteria set
forth in SFAS 71, the accounting impact would be an extraordinary non-cash
<PAGE> 12
charge to operations of an amount that would be material.  Criteria that give
rise to the discontinuance of SFAS 71 include, (1) increasing competition that
restricts the company's ability to establish prices to recover specific costs,
and (2) a significant change in the manner in which rates are set by
regulators from a cost-based regulation to another form of regulation.  The
company periodically reviews these criteria to ensure the continuing
application of SFAS 71 is appropriate.  Based on current evaluation of the
various factors and conditions that are expected to impact future cost
recovery, the company believes that its net regulatory assets are probable of
future recovery.  Any regulatory changes that would require the company to
discontinue SFAS 71 based upon competitive or other events may significantly
impact the recoverability of the company's net regulatory assets and certain
utility plant investments, particularly the Wolf Creek facility.  At this
time, the effect of competition and the amount of regulatory assets which
could be recovered in such an environment cannot be predicted. See Note 3 for
further discussion on regulatory assets.

    Environmental Remediation:  Effective January 1, 1997, the company
adopted the provisions of Statement of Position (SOP) 96-1, "Environmental
Remediation Liabilities". This statement provides authoritative guidance for
recognition, measurement, display, and disclosure of environmental remediation
liabilities in financial statements.  The company's best current estimate of
the most likely range of remediation costs to be incurred  based upon limited
current information presently available is approximately $1.5 million to $6
million.  Additional information and testing could result in costs
significantly below or in excess of the amounts noted above to be incurred. 
The KCC has permitted another Kansas utility to recover certain remediation
costs through rates.  Clean up costs will depend upon the degree of
remediation required and number of years over which the remediation must be
completed.  Management believes that adequate provision has been made for
these costs and accordingly believes that the ultimate disposition of this
matter will not have a material adverse effect upon the company's overall
financial position or results of operations.

    Cash Surrender Value of Life Insurance Contracts:  The following amounts
related to corporate-owned life insurance contracts (COLI) are recorded in
Corporate-owned Life Insurance (net) on the balance sheets:

                                            September 30,    December 31,  
                                                1997             1996    
                                                (Dollars in Millions) 
    Cash surrender value of contracts.(1). .   $453.1           $404.6
    Borrowings against contracts . . . . . .   (442.2)          (394.3)
        COLI (net) . . . . . . . . . . . . .   $ 10.9           $ 10.3

(1) Cash surrender value of contracts as presented represents the value of the
policies as of the end of the respective policy years and not as of September
30, 1997 and December 31, 1996.
   
     Income is recorded for increases in cash surrender value and net death
proceeds.  Interest expense is recognized for COLI borrowings.  The net income
generated from COLI contracts, including the tax benefit of the interest
deductions and premium expenses, are recorded as Corporate-owned Life
Insurance (net) on the Statements of Income.  The income from increases in
cash surrender value and net death proceeds was $5.4 million, $16.3 million, 
and $22.0 million for the three, nine and twelve months ended September 30,
1997, respectively, compared to $9.5 million, $19.7 million and $29.6 million
for the three, nine and twelve months ended 1996, respectively.  The interest
expense deduction taken was $8.2 million, $22.6 million and $29.4 million for
the three, nine and twelve months ended September 30, 1997, respectively,
<PAGE> 13
compared to $6.9 million, $20.8 million and $27.6 million for the three, nine
and twelve months ended September 30, 1996, respectively.

    Reclassifications:  Certain amounts in prior years have been reclassified
to conform with classifications used in the current year presentation.


2.  COMMITMENTS AND CONTINGENCIES

    Manufactured Gas Sites:  The company has been associated with three
former manufactured gas sites which may contain coal tar and other potentially
harmful materials.  The company and the Kansas Department of Health and
Environment (KDHE) entered into a consent agreement governing all future work
at the three sites.  The terms of the consent agreement will allow the company
to investigate these sites and set remediation priorities based upon the
results of the investigations and risk analyses.  The prioritized sites will
be investigated over a ten year period.  The agreement will allow the company
to set mutual objectives with the KDHE in order to expedite effective response
activities and to control costs and environmental impact.  As of September 30,
1997, the costs incurred for site investigation and risk assessment have been
minimal. Since the site investigations are preliminary,  no formal agreement
on costs to be incurred has been reached, and the minimum potential liability
would not be material to the financial statements.  An accrual for these
environmental contingencies has not been reflected in the accompanying
financial statements.  To the extent that such remediation costs are not
recovered through rates, the costs could be material to the company's
financial position or results of operations depending on the degree of
remediation and number of years over which the remediation must be completed.

    For additional information on Commitments and Contingencies, see Note 2
of the company's 1996 Annual Report on Form 10-K.


3.  RATE MATTERS AND REGULATION

    Utility expenses and credits recognized as regulatory assets and
liabilities on the Consolidated Balance Sheets are recognized in income as the
related amounts are included in service rates and recovered from or refunded
to customers in utility revenues.  The company expects to recover the
following regulatory assets in rates:

                                       September 30,   December 31,
                                           1997            1996    
                                          (Dollars in Thousands)
Coal contract settlement costs           $ 10,442        $ 11,655
Deferred plant costs                       31,052          31,272
Phase-in revenues                          13,159          26,317
Debt issuance costs                        43,781          45,989
Other regulatory assets                     6,695           7,155
 Total                                   $105,129        $122,388

    See Note 3 included in the company's 1996 Annual Report on Form 10-K for
additional information regarding regulatory assets.
<PAGE> 14

    KCC Rate Proceedings:  On May 23, 1996, the company implemented an $8.7
million electric rate reduction on an interim basis.  On October 22, 1996,
Western Resources, the company, the KCC Staff, the City of Wichita, and the
Citizens Utility Ratepayer Board filed an agreement with the KCC whereby the
company's retail electric rates would be reduced, subject to approval by the
KCC.  This agreement was approved on January 15, 1997.  Under the agreement,
on February 1, 1997, the company's rates were reduced by $36.3 million, and in
addition, the May 1996 interim reduction became permanent.  The company's
rates will be reduced by another $10 million effective June 1, 1998, and again
on June 1, 1999.  Two one-time rebates of $5 million will be credited to
customers of Western Resources in January 1998 and 1999.  A portion of these
rebates will be credited to the company's customers. The agreement also fixed
annual savings from the 1992 merger with Western Resources at $40 million. 
This level of merger savings provides for complete recovery of and a return on
the acquisition premium.


4.  INCOME TAXES

    Total income tax expense included in the Statements of Income reflects
the Federal statutory rate of 35%.  The Federal statutory rate produces
effective income tax rates of 39.7% and 33.4% for the three month periods,
34.4%  and 30.1% for the nine month periods, and 30.2% and 28.3% for the
twelve month periods ended September 30, 1997 and 1996, respectively.  The
effective income tax rates vary from the Federal statutory rate due to the
permanent differences, including the amortization of investment tax credits,
and accelerated amortization of certain deferred income taxes. 


5.  WESTERN RESOURCES AND KANSAS CITY POWER & LIGHT COMPANY MERGER AGREEMENT

    On February 7, 1997, Kansas City Power & Light Company (KCPL) and Western
Resources entered into an agreement whereby KCPL would be combined with
Western Resources (KCPL Merger).  The merger agreement provides for a
tax-free, stock-for-stock transaction valued at approximately $2 billion. 
Under the terms of the agreement, KCPL shareholders will receive $32 of
Western Resources common stock per KCPL share, subject to an exchange ratio
collar of not less than 0.917 to no more than 1.100 common shares. 
Consummation of the KCPL Merger is subject to customary conditions including
obtaining the approval of KCPL's and Western Resources' shareholders and
various regulatory agencies.  Western Resources expects to be able to close
the KCPL Merger in mid-1998.

    KCPL is a public utility company engaged in the generation, transmission,
distribution, and sale of electricity to customers in western Missouri and
eastern Kansas. KCPL, Western Resources, and the company have joint interests
in certain electric generating assets, including Wolf Creek.  
<PAGE> 15

                 KANSAS GAS AND ELECTRIC COMPANY


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS


    The following Management's Discussion and Analysis of Financial Condition
and Results of Operations should be read in conjunction with Item 7 of the
company's Annual Report on Form 10-K for 1996.

    The following updates the information provided in the 1996 Form 10-K, and
analyzes the changes in the results of operations between the three, nine and
twelve month periods ended September 30, 1997 and comparable periods of 1996.

    Certain matters discussed in this Form 10-Q are "forward-looking
statements" intended to qualify for the safe harbors from liability
established by the Private Securities Litigation Reform Act of 1995.  These
forward-looking statements can generally be identified as such because the
context of the statement will include words such as the company "believes,"
"anticipates," "expects" or words of similar import.  Similarly, statements
that describe the company's future plans, objectives, expectations or goals
are also forward-looking statements.  Such statements address future events
and conditions concerning capital expenditures, earnings, litigation, rate and
other regulatory matters, liquidity and capital resources, interest rates,
environmental matters, changing weather conditions, nuclear operations, and
accounting matters.  Actual results in each case could differ materially from
those currently anticipated in such statements, by reason of factors such as
electric utility restructuring, including the ongoing state and federal
activities; future economic conditions; developments in the legislative,
regulatory and competitive markets in which the company operates; and other
circumstances affecting anticipated operations, revenues and costs.

FINANCIAL CONDITION

    General:  The company had net income of $31.8 million and $58.4 million
for the three and nine months ended September 30, 1997 compared to $40.7
million and $73.7 million for the same periods in 1996, respectively.  The
decreases in net income were primarily due to the implementation of a $36.3
million rate reduction on February 1, 1997 and the positive impact on income
for the third quarter of 1996 resulting from the receipt of death benefit
proceeds under COLI contracts which were recorded during that quarter.  See
Note 3 of the Notes to Financial Statements for more information on the rate
proceedings, and Note 1 for information on COLI.

    Net income for the twelve months ended September 30, 1997, of $81.0
million, decreased from net income of $95.3 million for the comparable period
of 1996.  The decrease was primarily attributable to the $36.3 million rate
reduction, a May 1996 interim rate reduction of $8.7 million which became
permanent on February 1, 1997, and the positive impact on income resulting
from the receipt of death benefit proceeds under COLI contracts which were
recorded during the third quarter of 1996 and fourth quarter of 1995.

    Liquidity and Capital Resources:  The company's liquidity is a function
of its ongoing construction and maintenance program designed to improve
facilities which provide electric service and meet future customer service
requirements.
<PAGE> 16
    The company's short-term financing requirements are satisfied through
short-term bank loans and uncommitted loan participation agreements.  At
September 30, 1997 short-term borrowings amounted to $0 million compared to
$222.3 million at December 31, 1996.  Proceeds from the repayment of advances
to the company's parent company have been used to repay all current
outstanding short-term debt.  The proceeds received are reflected in the
decrease in Current Assets, Advances to parent company (net) on the Balance
Sheets.

    In June 1997, the company increased its borrowings against the
accumulated cash surrender values of COLI policies by $45.1 million and
received an additional $2.0 million from increased borrowings on WCNOC COLI
policies.  Total 1997 COLI borrowings have amounted to $48.5 million. 


OPERATING RESULTS

    The following discussion explains variances for the three, nine and
twelve months ended September 30, 1997, to the comparable periods of 1996.

    Revenues:  The company's revenues vary with levels of usage as a result
of changing weather conditions during comparable periods and are sensitive to
seasonal fluctuations between consecutive periods.  Future electric revenues
will continue to be affected by weather conditions, the electric rate
reduction which was implemented on February 1, 1997, competing fuel sources,
customer conservation efforts, wholesale demand, electric utility regulatory
restructuring, and the overall economy of the company's service area.

    The following table reflects changes in electric sales for the three, six
and twelve months ended September 30, 1997 from the comparable periods of
1996.

    Increase (decrease) in electric sales volumes:

                                     3 Months    9 Months    12 Months
                                       Ended       Ended       Ended  
         Residential                   12.9%        2.3%         3.2%  
         Commercial                     3.9%        0.7%         2.3% 
         Industrial                     3.0%      (0.9)%       (0.8)%
         Total Retail                   6.5%        0.5%         1.2% 

         Wholesale & Interchange     (50.8)%      (8.8)%        20.2% 
         Total electric sales         (6.7)%      (1.6)%         5.1% 

    Revenues for the three months ended September 30, 1997, of $191.1 million
decreased approximately one percent from revenues of $193.2 million for the
comparable period of 1996. The slight decrease is primarily due to the
decrease in interchange sales to power brokers.  Although retail sales
increased for the third quarter, revenues were negatively effected by rate
reductions. 
 
    Revenues for the nine and twelve months ended September 30, 1997, of
$483.7 million and $637.0 million, decreased approximately four and one
percent, respectively, from revenues of $501.3 million and $639.5 million for
the comparable periods of 1996.  Revenues decreased in all retail customer
classes.  These decreases are primarily attributable to the implementation of
the a $36.3 million rate reduction on February 1, 1997 and a May 1996 $8.7
million interim rate reduction which became permanent on February 1, 1997.
<PAGE> 17
    Partially offsetting the decrease in revenues for the twelve months ended
September 30, 1997 was the increase in interchange sales to power brokers.
Interchange sales to power brokers operate on a low profit margin and are
immaterial to the company's operating income.

    Operating Expenses:  Total operating expenses increased approximately
three percent for the three months ended September 30, 1997, compared to the
same period of 1996.  The increase was primarily attributable to increases in
other operating and maintenance expenses due to a coal-fired plant being
off-line for unscheduled maintenance and an incremental increase in the
La Cygne 2 generating unit monthly lease payment.

    Total operating expenses remain virtually unchanged for the nine months
ended September 30, 1997 compared to the same period of 1996.  Decreases in
fossil fuel and purchase power expenses were partially offset by an increase
in nuclear fuel expense due to Wolf Creek having been taken off-line for its
eighth refueling and maintenance outage during the first quarter of 1996. 
Increased other operations expense as a result of a coal-fired plant being
off-line for unscheduled maintenance and an the increase in La Cygne's monthly
lease payment also contributed to the offset. 

    Total operating expenses increased less than one percent for the twelve
months ended September 30, 1997 compared to the same period of 1996. 
Increases in other operating expenses due to the increase in La Cygne's
monthly lease payment and the increase in net generation as a result of
increased sales to interchange customers were offset by decreases in property
taxes and federal and state income taxes due to the decrease in net income.

    Wolf Creek was taken off-line on October 4, 1997 for its ninth refueling
and maintenance outage.  The outage is expected to last approximately 60 days
during which time electric demand will be met primarily by the company's
coal-fired operating units.  The company anticipates its operating expenses will
increase during the fourth quarter of 1997 as a result of Wolf Creek being
taken out of service.
  
    Other Income and Deductions:  Other income and deductions, net of taxes,
decreased for the three, nine, and twelve months ended September 30, 1997,
compared to the same periods of 1996 due to the positive impact on income
during the earlier periods resulting from receipt of death benefit proceeds
from COLI policies recorded during the third quarter of 1996 and the fourth
quarter of 1995.  The increase in interest expense of $1.3 million relating to
COLI borrowings for the three months ended September 30, 1997, also
contributed to the decreases. 

    Interest Expense:  Interest expense decreased $2.9 million, $5.1 million,
and $2.7 million for the three, nine, and twelve months ended September 30,
1997, respectively, compared to the same periods of 1996.  These decreases are
attributed to the decrease in short-term debt balance held during the first
nine months of 1997.  Proceeds from the repayment of advances to the company's
parent company have been used to repay all current outstanding short-term
debt.  The proceeds received are reflected in the decrease in Current Assets,
Advances to parent company (net) on the Balance Sheets.
<PAGE> 18

                KANSAS GAS AND ELECTRIC COMPANY
                   Part II Other Information


Item 4.  Submission of Matters to a Vote of Security Holders

    Information required by Item 4 is omitted pursuant to General Instruction
    H(2)(b) to Form 10-Q.


Item 6.  Exhibits and Reports on Form 8-K

   (a)   Exhibits:

         Exhibit 12   -   Computation of Ratio of Earnings to Fixed Charges
                          for 12 Months Ended September 30, 1997 (filed
                          electronically)

         Exhibit 27 - Financial Data Schedule (filed electronically)

   (b)   Reports on Form 8-K:

         None

<PAGE> 19

                            SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                         KANSAS GAS AND ELECTRIC COMPANY  


Date    October 29, 1997                 By     /s/ Richard D. Terrill        
                                                 Richard D. Terrill
                                              Secretary, Treasurer and
                                                   General Counsel