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 June 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 July 30, 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                    17


Part II.  Other Information

     Item 4.  Submission of Matters to a Vote of Security Holders       20

     Item 6.  Exhibits and Reports on Form 8-K                          20

Signature                                                               21

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

UTILITY PLANT: 
  Electric plant in service . . . . . . . . . . . . . . . .     $3,507,286       $3,487,213
  Less - Accumulated depreciation . . . . . . . . . . . . .      1,015,523          974,451
                                                                 2,491,763        2,512,762
  Construction work in progress . . . . . . . . . . . . . .         38,143           33,197
  Nuclear fuel (net). . . . . . . . . . . . . . . . . . . .         43,998           38,461
    Net utility plant . . . . . . . . . . . . . . . . . . .      2,573,904        2,584,420
                                                                              
INVESTMENTS AND OTHER PROPERTY:                                              
  Decommissioning trust . . . . . . . . . . . . . . . . . .         34,638           33,041
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .          9,746            9,093
                                                                    44,384           42,134
                                                                              
CURRENT ASSETS:                                                               
  Cash and cash equivalents . . . . . . . . . . . . . . . .             35               44
  Accounts receivable and unbilled revenues (net) . . . . .         73,603           75,671
  Advances to parent company  . . . . . . . . . . . . . . .         44,154          250,733
  Fossil fuel, at average cost. . . . . . . . . . . . . . .         13,710           13,459
  Materials and supplies, at average cost . . . . . . . . .         29,909           30,187
  Prepayments and other current assets. . . . . . . . . . .         34,037           16,991
                                                                   195,448          387,085
                                                                              
DEFERRED CHARGES AND OTHER ASSETS:                                            
  Deferred future income taxes  . . . . . . . . . . . . . .        206,800          164,520
  Corporate-owned life insurance (net). . . . . . . . . . .         10,863           10,341
  Regulatory assets . . . . . . . . . . . . . . . . . . . .        110,913          122,388
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .          3,907            7,999
                                                                   332,483          305,248
                                                                              
     TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . .     $3,146,219       $3,318,887
                                                                              
                                                                              
CAPITALIZATION AND LIABILITIES                                                
                                                                              
CAPITALIZATION (See Statements):
  Common stock equity . . . . . . . . . . . . . . . . . . .     $1,159,015       $1,182,351
  Long-term debt (net). . . . . . . . . . . . . . . . . . .        684,065          684,068
                                                                 1,843,080        1,866,419
                                                                                           
CURRENT LIABILITIES:                                                          
  Short-term debt . . . . . . . . . . . . . . . . . . . . .         10,000          222,300
  Accounts payable. . . . . . . . . . . . . . . . . . . . .         70,931           48,819
  Accrued taxes . . . . . . . . . . . . . . . . . . . . . .         37,012           35,358
  Accrued interest. . . . . . . . . . . . . . . . . . . . .          8,143            9,445
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .          6,940            6,726
                                                                   133,026          322,648
                                                                              
DEFERRED CREDITS AND OTHER LIABILITIES:                                       
  Deferred income taxes . . . . . . . . . . . . . . . . . .        784,389          753,511
  Deferred investment tax credits . . . . . . . . . . . . .         68,099           69,722
  Deferred gain from sale-leaseback . . . . . . . . . . . .        227,693          233,060
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .         89,932           73,527
                                                                 1,170,113        1,129,820
COMMITMENTS AND CONTINGENCIES (Note 2)                              
     TOTAL CAPITALIZATION AND LIABILITIES . . . . . . . . .     $3,146,219       $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   
                                                                          June 30,        
                                                                    1997           1996    
<S>                                                              <C>            <C>
OPERATING REVENUES. . . . . . . . . . . . . . . . . . . . .      $  148,826     $  163,038 
                                                                             
OPERATING EXPENSES:                                                          
  Fuel used for generation:                                                  
    Fossil fuel . . . . . . . . . . . . . . . . . . . . . .          16,355         21,828
    Nuclear fuel. . . . . . . . . . . . . . . . . . . . . .           5,999          5,618
  Power purchased . . . . . . . . . . . . . . . . . . . . .           4,186          2,464
  Other operations. . . . . . . . . . . . . . . . . . . . .          37,857         38,307
  Maintenance . . . . . . . . . . . . . . . . . . . . . . .          14,405         15,439
  Depreciation and amortization . . . . . . . . . . . . . .          24,183         23,494
  Amortization of phase-in revenues . . . . . . . . . . . .           4,386          4,386
  Taxes:                                                                                  
    Federal income. . . . . . . . . . . . . . . . . . . . .           5,864          7,592
    State income  . . . . . . . . . . . . . . . . . . . . .           1,802          2,433
    General . . . . . . . . . . . . . . . . . . . . . . . .           8,986         12,047 
      Total operating expenses. . . . . . . . . . . . . . .         124,023        133,608 
                                                                           
OPERATING INCOME. . . . . . . . . . . . . . . . . . . . . .          24,803         29,430
                                                                             
OTHER INCOME AND DEDUCTIONS:                                                
  Corporate-owned life insurance (net). . . . . . . . . . .            (749)        (1,565)
  Miscellaneous (net) . . . . . . . . . . . . . . . . . . .             783            556
  Income taxes (net). . . . . . . . . . . . . . . . . . . .           2,655          2,738
      Total other income and deductions . . . . . . . . . .           2,689          1,729
                                                                           
INCOME BEFORE INTEREST CHARGES. . . . . . . . . . . . . . .          27,492         31,159
                                                                             
INTEREST CHARGES:                                                            
  Long-term debt. . . . . . . . . . . . . . . . . . . . . .          11,525         11,583
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .             999          2,694
  Allowance for borrowed funds used                                            
    during construction (credit). . . . . . . . . . . . . .            (524)          (371)
      Total interest charges. . . . . . . . . . . . . . . .          12,000         13,906 
                                                                             
NET INCOME. . . . . . . . . . . . . . . . . . . . . . . . .      $   15,492     $   17,253


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>
                                                                      Six Months Ended    
                                                                          June 30,        
                                                                    1997           1996    
<S>                                                              <C>            <C>
OPERATING REVENUES. . . . . . . . . . . . . . . . . . . . .      $  292,617     $ 308,072 
                                                                             
OPERATING EXPENSES:                                                          
  Fuel used for generation:                                                  
    Fossil fuel . . . . . . . . . . . . . . . . . . . . . .          33,122         43,980
    Nuclear fuel. . . . . . . . . . . . . . . . . . . . . .          12,290          7,375
  Power purchased . . . . . . . . . . . . . . . . . . . . .           7,352          6,824
  Other operations. . . . . . . . . . . . . . . . . . . . .          71,760         69,676
  Maintenance . . . . . . . . . . . . . . . . . . . . . . .          27,166         27,338
  Depreciation and amortization . . . . . . . . . . . . . .          48,720         46,862
  Amortization of phase-in revenues . . . . . . . . . . . .           8,772          8,772
  Taxes:                                                                                  
    Federal income. . . . . . . . . . . . . . . . . . . . .          11,663         12,672
    State income  . . . . . . . . . . . . . . . . . . . . .           3,518          3,992
    General . . . . . . . . . . . . . . . . . . . . . . . .          20,356         24,088 
      Total operating expenses. . . . . . . . . . . . . . .         244,719        251,579 
                                                                          
OPERATING INCOME. . . . . . . . . . . . . . . . . . . . . .          47,898         56,493
                                                                             
OTHER INCOME AND DEDUCTIONS:                                                
  Corporate-owned life insurance (net). . . . . . . . . . .          (3,469)        (3,749)
  Miscellaneous (net) . . . . . . . . . . . . . . . . . . .           1,341          1,571
  Income taxes (net). . . . . . . . . . . . . . . . . . . .           5,454          5,327
      Total other income and deductions . . . . . . . . . .           3,326          3,149
                                                                           
INCOME BEFORE INTEREST CHARGES. . . . . . . . . . . . . . .          51,224         59,642
                                                                             
INTEREST CHARGES:                                                            
  Long-term debt. . . . . . . . . . . . . . . . . . . . . .          23,007         23,299
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .           2,556          4,369
  Allowance for borrowed funds used                                            
    during construction (credit). . . . . . . . . . . . . .          (1,003)          (979)
      Total interest charges. . . . . . . . . . . . . . . .          24,560         26,689 
                                                                             
NET INCOME. . . . . . . . . . . . . . . . . . . . . . . . .      $   26,664     $   32,953


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   
                                                                         June 30,         
                                                                    1997           1996    
<S>                                                              <C>            <C>
OPERATING REVENUES. . . . . . . . . . . . . . . . . . . . .      $  639,115     $  648,636 
                                                                             
OPERATING EXPENSES:                                                          
  Fuel used for generation:                                                  
    Fossil fuel . . . . . . . . . . . . . . . . . . . . . .          80,966         87,176
    Nuclear fuel. . . . . . . . . . . . . . . . . . . . . .          24,877         17,036
  Power purchased . . . . . . . . . . . . . . . . . . . . .          12,011         10,195
  Other operations. . . . . . . . . . . . . . . . . . . . .         136,804        125,353
  Maintenance . . . . . . . . . . . . . . . . . . . . . . .          48,771         50,768
  Depreciation and amortization . . . . . . . . . . . . . .          98,167         89,872
  Amortization of phase-in revenues . . . . . . . . . . . .          17,544         17,545
  Taxes:                                                                                  
    Federal income. . . . . . . . . . . . . . . . . . . . .          35,147         47,707
    State income  . . . . . . . . . . . . . . . . . . . . .           9,981         12,567
    General . . . . . . . . . . . . . . . . . . . . . . . .          42,451         46,943 
      Total operating expenses. . . . . . . . . . . . . . .         506,719        505,162 
                                                                          
OPERATING INCOME. . . . . . . . . . . . . . . . . . . . . .         132,396        143,474
                                                                             
OTHER INCOME AND DEDUCTIONS:                                                
  Corporate-owned life insurance (net). . . . . . . . . . .          (1,969)        (2,880)
  Miscellaneous (net) . . . . . . . . . . . . . . . . . . .           3,167          3,625
  Income taxes (net). . . . . . . . . . . . . . . . . . . .          10,480         13,271
      Total other income and deductions . . . . . . . . . .          11,678         14,016
                                                                           
INCOME BEFORE INTEREST CHARGES. . . . . . . . . . . . . . .         144,074        157,490
                                                                             
INTEREST CHARGES:                                                            
  Long-term debt. . . . . . . . . . . . . . . . . . . . . .          46,012         46,821
  Other . . . . . . . . . . . . . . . . . . . . . . . . . .           9,945          6,947
  Allowance for borrowed funds used                                            
    during construction (credit). . . . . . . . . . . . . .          (1,868)        (2,665)
      Total interest charges. . . . . . . . . . . . . . . .          54,089         51,103 
                                                                             
NET INCOME. . . . . . . . . . . . . . . . . . . . . . . . .      $   89,985     $  106,387


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>

                                                                     Six Months Ended   
                                                                          June 30,        
                                                                    1997           1996   
<S>                                                              <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:                                        
  Net income. . . . . . . . . . . . . . . . . . . . . . . . .    $   26,664     $   32,953
  Depreciation and amortization . . . . . . . . . . . . . . .        48,720         46,862 
  Amortization of nuclear fuel. . . . . . . . . . . . . . . .         9,803          5,602
  Amortization of phase-in revenues . . . . . . . . . . . . .         8,772          8,772 
  Corporate-owned life insurance. . . . . . . . . . . . . . .       (13,930)       (12,593)
  Amortization of gain from sale-leaseback. . . . . . . . . .        (5,367)        (4,820)
  Changes in working capital items:                                                        
    Accounts receivable and unbilled revenues (net) . . . . .         2,068         (5,162)
    Fossil fuel . . . . . . . . . . . . . . . . . . . . . . .          (251)         2,627 
    Accounts payable. . . . . . . . . . . . . . . . . . . . .        22,112          7,695 
    Interest and taxes accrued. . . . . . . . . . . . . . . .           352          2,868 
    Other . . . . . . . . . . . . . . . . . . . . . . . . . .       (16,047)        10,076 
  Changes in other assets and liabilities . . . . . . . . . .        (5,349)       (39,894)
      Net cash flows from operating activities. . . . . . . .        77,547         54,986 
                                                                                      
CASH FLOWS USED IN INVESTING ACTIVITIES:                                                  
  Additions to utility plant. . . . . . . . . . . . . . . . .        46,221         31,314 
  Corporate-owned life insurance policies . . . . . . . . . .        24,557         22,468 
  Death proceeds of corporate-owned life insurance policies .        (1,810)          -   
      Net cash flows used in investing activities . . . . . .        68,968         53,782 
                                                                                      
CASH FLOWS FROM FINANCING ACTIVITIES:                                                     
  Short-term debt (net) . . . . . . . . . . . . . . . . . . .      (212,300)       200,000 
  Advances to parent company (net). . . . . . . . . . . . . .       206,579       (179,355)
  Bonds retired . . . . . . . . . . . . . . . . . . . . . . .           (65)       (16,135)
  Borrowings against life insurance policies. . . . . . . . .        47,782         44,321
  Repayments of borrowings against life insurance policies. .          (584)          -
  Dividends to parent company . . . . . . . . . . . . . . . .       (50,000)       (50,000)
     Net cash flows from (used in) financing activities . . .        (8,588)        (1,169)
                                                                                     
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS. . . . .            (9)            35

CASH AND CASH EQUIVALENTS:
  BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . .            44             53 
  END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . .    $       35     $       88
                                                                                    

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                                   
CASH PAID FOR:                                                                      
   Interest on financing activities (net of amount                                  
       capitalized) . . . . . . . . . . . . . . . . . . . . .    $   54,342      $  50,652 
   Income taxes . . . . . . . . . . . . . . . . . . . . . . .        20,100         17,600 


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   
                                                                          June 30,        
                                                                    1997           1996   
<S>                                                              <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:                                        
  Net income. . . . . . . . . . . . . . . . . . . . . . . . .    $   89,985     $  106,387
  Depreciation and amortization . . . . . . . . . . . . . . .        98,167         89,872 
  Amortization of nuclear fuel. . . . . . . . . . . . . . . .        19,886         12,862
  Amortization of phase-in revenues . . . . . . . . . . . . .        17,544         17,545 
  Corporate-owned life insurance. . . . . . . . . . . . . . .       (31,050)       (32,476)
  Amortization of gain from sale-leaseback. . . . . . . . . .       (10,187)        (9,639)
  Changes in working capital items:                                                        
    Accounts receivable and unbilled revenues (net) . . . . .         8,049        (13,672)
    Fossil fuel . . . . . . . . . . . . . . . . . . . . . . .         1,185          1,714 
    Accounts payable. . . . . . . . . . . . . . . . . . . . .        12,453          3,552 
    Interest and taxes accrued. . . . . . . . . . . . . . . .        16,618         (2,770)
    Other . . . . . . . . . . . . . . . . . . . . . . . . . .       (21,702)        20,977 
  Changes in other assets and liabilities . . . . . . . . . .        24,773        (19,867)
      Net cash flows from operating activities. . . . . . . .       225,721        174,485 
                                                                                      
CASH FLOWS USED IN INVESTING ACTIVITIES:                                                  
  Additions to utility plant. . . . . . . . . . . . . . . . .        83,539         84,696
  Corporate-owned life insurance policies . . . . . . . . . .        27,736         27,176 
  Death proceeds of corporate-owned life insurance. . . . . .       (11,255)       (10,333)
      Net cash flows used in investing activities . . . . . .       100,020        101,539 
                                                                                      
CASH FLOWS FROM FINANCING ACTIVITIES:                                                 
  Short-term debt (net) . . . . . . . . . . . . . . . . . . .      (240,000)       225,000 
  Advances to parent company (net). . . . . . . . . . . . . .       170,149       (122,399)
  Bonds retired . . . . . . . . . . . . . . . . . . . . . . .           (65)       (16,135)
  Borrowings against life insurance policies. . . . . . . . .        49,439         45,789 
  Repayment of borrowings against life insurance policies . .        (5,277)        (5,185)
  Dividends to parent company . . . . . . . . . . . . . . . .      (100,000)      (200,000) 
     Net cash flows from (used in) financing activities . . .      (125,754)       (72,930)
                                                                                     
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS. . . . .           (53)            16 

CASH AND CASH EQUIVALENTS:
  BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . .            88             72 
  END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . .    $       35     $       88
                                                                                     
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                                   
CASH PAID FOR:                                                                      
   Interest on financing activities (net of amount                                  
       capitalized) . . . . . . . . . . . . . . . . . . . . .    $   82,402     $   73,651
   Income taxes . . . . . . . . . . . . . . . . . . . . . . .        34,600         41,660 


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>

                                                                   June 30,           December 31,  
                                                                     1997                 1996      
                                                                                                    
<S>                                                            <C>                  <C>
COMMON STOCK EQUITY (see Statements):
  Common stock, without par value, authorized and issued
    1,000 shares. . . . . . . . . . . . . . . . . . . . . . .  $1,065,634           $1,065,634 
  Retained earnings . . . . . . . . . . . . . . . . . . . . .      93,381              116,717 
    Total common stock equity . . . . . . . . . . . . . . . .   1,159,015   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). . . . . . . . . .       3,632                3,694
       Total long-term debt . . . . . . . . . . . . . . . . .     684,065   37%        684,068   37%

TOTAL CAPITALIZATION. . . . . . . . . . . . . . . . . . . . .  $1,843,080  100%     $1,866,419  100%


      (a)    Market-Adjusted Tax Exempt Securities (MATES).  As of June 30, 1997, the rate
             on these bonds ranged from 3.75% to 4.15%.

 
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 . . . . . . . . . . . . . . . . . . . . .                          26,664     
Dividend to parent company . . . . . . . . . . . . .                         (50,000)


BALANCE JUNE 30, 1997, 1,000 shares. . . . . . . . .     $1,065,634       $   93,381


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.  At December
31, 1996, the company had 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.  

    The company currently applies accounting standards that recognize the
economic effects of rate regulation 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.  In 1996,
the KCC initiated a generic docket to study electric restructuring issues.  A
retail wheeling task force has been created by the Kansas Legislature to study
competitive trends in retail electric services.  During the 1997 session of
the Kansas Legislature, bills were introduced to increase competition in the
electric industry.  Among the matters under consideration is the recovery by
utilities of costs in excess of competitive cost levels.  There can be no
assurance at this time that such costs will be recoverable if open competition
is initiated in the electric utility market.  In the event the company
determines that it no longer meets the criteria for SFAS 71, the accounting
impact would be an extraordinary non-cash 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 valuation of the company's net
regulatory assets and its 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.
<PAGE> 12
    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 environmental costs to be incurred per site based
upon limited current information presently available is approximately $100,000
to $10 million. It should be noted that 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
its remediation costs through rates.  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 required and number of years over which the remediation must be
completed.

    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:

                                              June 30,      December 31,  
                                                1997            1996    
                                                (Dollars in Millions) 
    Cash surrender value of contracts.(1). .   $452.3          $404.6
    Borrowings against contracts . . . . . .   (441.4)         (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 June 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 $6.7 million, $10.9 million, 
and $26.1 million for the three, six and twelve months ended June 30, 1997,
respectively, compared to $5.4 million, $10.2 million and $24.7 million for
the three, six and twelve months ended 1996, respectively.  The interest
expense deduction taken was $7.4 million, $14.4 million and $28.1 million for
the three, six and twelve months ended June 30, 1997, respectively, compared
to $7.0 million, $13.9 million and $27.6 million for the three, six and twelve
months ended June 30, 1996, respectively.

    Cash and Cash Equivalents:  For purposes of the Statements of Cash Flows,
cash and cash equivalents include cash on hand and highly liquid
collateralized debt instruments purchased with maturities of three months or
less. 

<PAGE> 13
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 June 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.

    Decommissioning: The company accrues decommissioning costs over the
expected life of the Wolf Creek generating facility.  The accrual is based on
estimated unrecovered decommissioning costs which consider inflation over the
remaining estimated life of the generating facility and are net of expected
earnings on amounts recovered from customers and deposited in an external
trust fund.
  
    Approval of the 1996 Decommissioning Cost Study was received from the KCC
on February 28, 1997.  Based on the study, the company's share of these
decommissioning costs, under the immediate dismantlement method, is estimated
to be approximately $624 million during the period 2025 through 2033, or
approximately $192 million in 1996 dollars.  These costs were calculated using
an assumed inflation rate of 3.6% over the remaining service life from 1996 of
29 years.

    Decommissioning costs are currently being charged to operating expenses
in accordance with the prior KCC orders.  Electric rates charged to customers
provide for recovery of these decommissioning costs over the life of Wolf
Creek.  Amounts expensed approximated $3.7 million in 1996 and will increase
annually to $5.6 million in 2024.  These expenses are deposited in an external
trust fund.  The average after tax expected return on trust assets is 5.7%. 
An updated funding schedule, on which the contributions are not materially
different, was submitted to the KCC on March 10, 1997. Approval of this
funding schedule is still pending with the KCC.
 
    The company's investment in the decommissioning fund, including
reinvested earnings approximated $34.6 million and $33.0 million at June 30,
1997 and December 31, 1996, respectively.  Trust fund earnings accumulate in
the fund balance and increase the recorded decommissioning liability.  These
amounts are reflected in Investments and Other Property, Decommissioning
trust, and the related liability is included in Deferred Credits and Other
Liabilities, Other, on the Balance Sheets.
<PAGE> 14
    The staff of the SEC has questioned certain current accounting practices
used by nuclear electric generating station owners regarding the recognition,
measurement, and classification of decommissioning costs for nuclear electric
generating stations. In response to these questions, the Financial Accounting
Standards Board is expected to issue new accounting standards for removal
costs, including decommissioning, in 1998.  If current electric utility
industry accounting practices for such decommissioning costs are changed: (1)
annual decommissioning expenses could increase, (2) the estimated present
value of decommissioning costs could be recorded as a liability rather than as
accumulated depreciation, and (3) trust fund income from the external
decommissioning trusts could be reported as investment income rather than as a
reduction to decommissioning expense.  When revised accounting guidance is
issued, the company will also have to evaluate its effect on accounting for
removal costs of other long-lived assets.  The company is not able to predict
what effect such changes would have on results of operations, financial
position, or related regulatory practices until the final issuance of revised
accounting guidance, but such effect could be material.

    The company carries premature decommissioning insurance which has several
restrictions.  One of these is that it can only be used if Wolf Creek incurs
an accident exceeding $500 million in expenses to safely stabilize the
reactor, to decontaminate the reactor and reactor station site in accordance
with a plan approved by the Nuclear Regulatory Commission (NRC), and to pay
for on-site property damages.  This decommissioning insurance will only be
available if the insurance funds are not needed to implement the NRC-approved
plan for stabilization and decontamination.

    Nuclear Insurance:  The Price-Anderson Act limits the combined public
liability of the owners of nuclear power plants to $8.9 billion for a single
nuclear incident.  If this liability limitation is insufficient, the U.S.
Congress will consider taking whatever action is necessary to compensate the
public for valid claims.  The Wolf Creek owners (Owners) have purchased the
maximum available private insurance of $200 million and the balance is
provided by an assessment plan mandated by the NRC.  Under this plan, the
Owners are jointly and severally subject to a retrospective assessment of up
to $79.3 million ($37.3 million, company's share) in the event there is a
major nuclear incident involving any of the nation's licensed reactors.  This
assessment is subject to an inflation adjustment based on the Consumer Price
Index and applicable premium taxes.  There is a limitation of $10 million
($4.7 million, company's share) in retrospective assessments per incident, per
year.

    The Owners carry decontamination liability, premature decommissioning
liability, and property damage insurance for Wolf Creek totaling approximately
$2.8 billion ($1.3 billion, company's share).  This insurance is provided by a
combination of "nuclear insurance pools" ($500 million) and Nuclear Electric
Insurance Limited (NEIL) ($2.3 billion).  In the event of an accident,
insurance proceeds must first be used for reactor stabilization and site
decontamination.  The company's share of any remaining proceeds can be used
for property damage or premature decommissioning costs up to $1.3 billion
(company's share).  Premature decommissioning insurance cost recovery is the
excess of funds previously collected for decommissioning (as discussed under
"Decommissioning").

    The Owners also carry additional insurance with NEIL to cover costs of
replacement power and other extra expenses incurred during a prolonged outage
resulting from accidental property damage at Wolf Creek.  If losses incurred
at any of the nuclear plants insured under the NEIL policies exceed premiums,
reserves, and other NEIL resources, the company may be subject to
retrospective assessments under the current policies of approximately $8
million per year.
<PAGE> 15
    Although the company maintains various insurance policies to provide
coverage for potential losses and liabilities resulting from an accident or an
extended outage, the company's insurance coverage may not be adequate to cover
the costs that could result from a catastrophic accident or extended outage at
Wolf Creek.  Any substantial losses not covered by insurance, to the extent
not recoverable through rates, would have a material adverse effect on the
company's financial condition and results of operations.
 
    Clean Air Act:  The Clean Air Act Amendments of 1990 (the Act) require a
two-phase reduction in certain emissions.  To meet the monitoring and
reporting requirements under the acid rain program, the company has installed
continuous monitoring and reporting equipment at a total cost of approximately
$2.3 million as of December 31, 1996.  The company does not expect material
expenditures to be needed to meet Phase II sulfur dioxide requirements.

    In the fourth quarter of 1996, the Environmental Protection Agency (EPA)
issued new standards applying to NOx emissions from the company's effected
coal units.  Jeffrey Energy Center will require operational modifications and
possible minor capital investments to modify the emission controls.  The
company will have until the year 2000 to comply.

    Fuel Commitments:  To supply a portion of the fuel requirements for its
generating plants, the company has entered into various commitments to obtain
nuclear fuel and coal. Some of these contracts contain provisions for price
escalation and minimum purchase commitments.  At December 31, 1996, WCNOC's
nuclear fuel commitments (company's share) were approximately $15.4 million
for uranium concentrates expiring at various times through 2001, $59.4 million
for enrichment expiring at various times through 2003, and $70.3 million for
fabrication through 2025.  At December 31, 1996, the company's coal contract
commitments in 1996 dollars under the remaining terms of the contracts were
approximately $671 million.  The largest coal contract expires in 2020, with
the remaining coal contracts expiring at various times through 2013. 

    Energy Act:  As part of the 1992 Energy Policy Act, a special assessment
is being collected from utilities for a uranium enrichment decontamination and
decommissioning fund.  The company's portion of the assessment for Wolf Creek
is approximately $7 million, payable over 15 years.  Management expects such
costs to be recovered through the ratemaking process.


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:
<PAGE> 16
                                          June 30,     December 31,
                                            1997           1996    
                                           (Dollars in Thousands)
Coal contract settlement costs            $ 10,848       $ 11,655
Deferred plant costs                        31,125         31,272
Phase-in revenues                           17,545         26,317
Debt issuance costs                         44,517         45,989
Other regulatory assets                      6,878          7,155
 Total regulatory assets                  $110,913       $122,388

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

    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 24.4% and 29.7% for the three month periods,
26.7%  and 25.6% for the six month periods, and 27.8% and 30.6% for the twelve
month periods ended June 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 the first half of 1998.

    KCPL is a public utility company engaged in the generation, transmission,
distribution, and sale of electricity to approximately 430,000 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> 17
                 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, six and
twelve month periods ended June 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.  Such
statements address future plans, objectives, expectations and events or
conditions concerning various matters such as capital expenditures, earnings,
litigation, rate and other regulatory matters,  pending transactions,
liquidity and capital resources, 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 ongoing state and federal activities; future economic conditions;
legislation; regulation; competition; and other circumstances affecting
anticipated rates, revenues and costs.


FINANCIAL CONDITION

    General:  The company had net income of $15.5 million and $26.7 million
for the three and six months ended June 30, 1997 compared to $17.3 million and
$33.0 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 mild spring temperatures experienced within
the company's service territory.  See Note 3 of the Notes to Financial
Statements for more information on the rate proceedings.

    Net income for the twelve months ended June 30, 1997, of $90.0 million,
decreased from net income of $106.4 million for the comparable period of 1996. 
The decrease was primarily attributable to mild spring temperatures, the $36.3
million rate reduction, and a May 1996 interim rate reduction of $8.7 million
which became permanent on February 1, 1997.

    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.

    The company's short-term financing requirements are satisfied through
short-term bank loans and uncommitted loan participation agreements.  At June
30, 1997 short-term borrowing amounted to $10 million compared to $222.3
million at December 31, 1996.
<PAGE> 18
    In June 1997, the company increased its borrowings against the
accumulated cash surrender values of corporate-owned life insurance policies
by $45.1 million and received an additional $2.0 million from increased
borrowings on Wolf Creek Nuclear Operating Company policies.  Total 1997 COLI
borrowings have amounted to  $47.8 million. 


OPERATING RESULTS

    The following discussion explains variances for the three, six and twelve
months ended June 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, 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 June 30, 1997 from the comparable periods of 1996.

    Increase (decrease) in electric sales volumes:

                                     3 Months    6 Months    12 Months
                                       Ended       Ended       Ended  
         Residential                  (7.7)%      (4.8)%       (3.9)%  
         Commercial                   (3.9)%      (1.3)%        0.3 % 
         Industrial                   (1.0)%      (3.0)%       (3.8)%
         Total Retail                 (3.7)%      (3.0)%       (2.8)% 

         Wholesale & Interchange     (22.4)%       18.1%        69.8% 
         Total electric sales         (8.5)%        1.5%         9.6% 

    Revenues for the three and six months ended June 30, 1997, of $148.8
million and $292.6 million, decreased approximately nine and five percent from
revenues of $163.0 million and $308.1 million for the comparable periods of
1996.  Revenues decreased in all retail customer classes.  These decreases are
primarily due to the implementation of a $36.3 million rate reduction on
February 1, 1997 and mild spring temperatures. 

    Revenues for the twelve months ended June 30, 1997, decreased
approximately two percent to $639.1 million from revenues of $648.6 million
for the comparable period of 1996.  The decrease can be primarily attributed
to the implementation of the above mentioned rate reduction and a May 1996
$8.7 million interim rate reduction which became permanent on February 1,
1997.

    Partially offsetting the decrease in revenues for the six and twelve
months ended June 30, 1997 were the increases in interchange sales due to the
increased sales to power brokers as a result of the increase in competition
within the wholesale market. 
<PAGE> 19
    Operating Expenses:  Total operating expenses decreased approximately
seven and three percent for the three and six months ended June 30, 1997,
respectively, compared to the same periods of 1996.  The decreases were
primarily due to decreased federal and state income taxes due to the decrease
in net income.

    Total operating expenses remain virtually unchanged for the twelve months
ended June 30, 1997 compared to the same period of 1996.  The increase in
other operating expenses due to the increase in net generation as a result of
increased sales to interchange customers was offset by the decreases in
federal and state income taxes due to the decrease in net income.

    Other Income and Deductions:  Other income and deductions, net of taxes,
increased for the three and six months ended June 30, 1997, compared to the
same periods of 1996 due to the receipt of death benefit proceeds from COLI
policies and the increase in cash surrender values of COLI policies.

    Other income and deductions, net of taxes, decreased for the twelve
months ended June 30, 1997, compared to the same period of 1996 due to lower
income tax credits.

    Interest Expense:  Interest expense decreased approximately fourteen and
eight percent for the three and six months ended June 30, 1997, respectively,
compared to the same periods of 1996.  The decreases can be attributed to the
decrease in short-term debt during the first six months of 1997.

    Interest expense increased approximately six percent for the twelve
months ended June 30, 1997, compared to the same period of 1996.  The increase
resulted primarily from the higher short-term debt balances during 1997 as
compared to 1996.


OTHER INFORMATION

    Merger Implementation:  In accordance with the KCC Merger order,
amortization of the acquisition adjustment commenced in August 1995.  The
amortization will amount to approximately $20 million (pre-tax) per year for
40 years.  Western Resources and the company (combined companies) can recover
the amortization of the acquisition adjustment through cost savings under a
sharing mechanism approved by the KCC.

<PAGE> 20
                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 June 30, 1997 (filed
                          electronically)

         Exhibit 27 - Financial Data Schedule (filed electronically)

   (b)   Reports on Form 8-K:

         None


<PAGE> 21
                            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        July 30, 1997                By     /s/ Richard D. Terrill        
                                                 Richard D. Terrill
                                              Secretary, Treasurer and
                                                   General Counsel