Form 10-Q
                  SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, D.C.  20549
                     ____________________________

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

             For the quarterly period ended June 30, 2001

                                  OR

        [  ]  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 1-707

                   KANSAS CITY POWER & LIGHT COMPANY
        (Exact name of registrant as specified in its charter)


            Missouri                              44-0308720
 (State or other jurisdiction of               (I.R.S. Employer
 incorporation or organization)              Identification No.)


            1201 Walnut, Kansas City, Missouri   64106-2124
         (Address of principal executive offices)   (Zip Code)

  Registrant's telephone number, including area code: (816) 556-2200


Indicate  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 ( )

The number of shares outstanding of the registrant's Common stock at
August 8, 2001, was 61,856,069 shares.

<PAGE>

PART I - FINANCIAL INFORMATION
Item 1.  Consolidated Financial Statements

                     KANSAS CITY POWER & LIGHT COMPANY
                        Consolidated Balance Sheets

                                                     (Unaudited)
                                                       June 30     December 31
                                                        2001          2000
                                                            (thousands)
ASSETS
Current Assets
   Cash and cash equivalents                         $    17,797   $    34,877
   Receivables                                           180,522       115,356
   Equity securities                                       5,496        18,597
   Fuel inventories, at average cost                      23,909        20,802
   Materials and supplies, at average cost                47,728        46,402
   Deferred income taxes                                   2,948           737
   Other                                                  27,462        14,455
      Total                                              305,862       251,226
Nonutility Property and Investments
   Telecommunications property                           384,760             -
   Affordable housing limited partnerships                95,993        98,129
   Gas property and investments                           28,997        47,654
   Nuclear decommissioning trust fund                     59,629        56,800
   Other                                                  66,381        81,624
      Total                                              635,760       284,207
Utility Plant, at Original Cost
   Electric                                            4,172,699     3,832,655
   Less-accumulated depreciation                       1,730,171     1,645,450
      Net utility plant in service                     2,442,528     2,187,205
   Construction work in progress                          85,814       309,629
   Nuclear fuel, net of amortization
      of $118,441 and $110,014                            26,217        30,956
      Total                                            2,554,559     2,527,790
Deferred Charges
   Regulatory assets                                     135,448       139,456
   Prepaid pension costs                                  78,042        68,342
   Goodwill                                              104,548        11,470
   Other deferred charges                                 16,960        11,400
      Total                                              334,998       230,668
      Total                                          $ 3,831,179   $ 3,293,891

LIABILITIES AND CAPITALIZATION
Current Liabilities
   Notes payable                                     $    22,306   $         -
   Commercial paper                                      245,802        55,600
   Current maturities of long-term debt                  268,342        93,645
   Accounts payable                                      154,642       158,242
   Accrued taxes                                          20,408        14,402
   Accrued interest                                       13,067        12,553
   Accrued payroll and vacations                          26,082        28,257
   Accrued refueling outage costs                          7,560         1,890
   Other                                                  62,612        14,877
      Total                                              820,821       379,466
Deferred Credits and Other Liabilities
   Deferred income taxes                                 601,748       590,220
   Deferred investment tax credits                        47,892        50,037
   Deferred telecommunications revenue                    47,257             -
   Other                                                 115,601       121,907
      Total                                              812,498       762,164
Capitalization (see statements)                        2,197,860     2,152,261
Commitments and Contingencies (Note 4)
      Total                                          $ 3,831,179   $ 3,293,891

The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.

                                  1
<PAGE>


                     KANSAS CITY POWER & LIGHT COMPANY
                  Consolidated Statements of Capitalization

                                                     (Unaudited)
                                                       June 30     December 31
                                                        2001          2000
                                                           (thousands)
Long-term Debt (excluding current maturities)
   General Mortgage Bonds
      Medium-Term Notes due 2003-08,
        7.28% and 7.18%, weighted-average rate       $   179,000   $   206,000
      3.94%* Environmental Improvement Revenue
         Refunding Bonds due 2012-23                     158,768       158,768
   Senior Notes
      7.125% due 2005                                    250,000       250,000
      Unamortized discount                                  (495)         (550)
   Medium-Term Notes
      6.69%** due 2002                                         -       200,000
   Environmental Improvement Revenue Refunding Bonds
      3.93%* Series A & B due 2015                       106,500       106,500
      4.50% Series C due 2017                             50,000        50,000
      4.35% Series D due 2017                             40,000        40,000
   Subsidiary Obligations
      Senior Discount Notes
         12.5% due 2008                                  202,693             -
         Unamortized discount                             (2,088)            -
      R.S. Andrews Enterprises, Inc. long-term debt
        8.25% weighted-average rate due 2003-07            2,675             -
      Affordable Housing Notes
        8.15% and 8.29%, weighted-average rate            20,333        31,129
         due 2003-08
      KLT Inc. Bank Credit Agreement
        4.47% due 2003                                    94,000             -
         Total                                         1,101,386     1,041,847
Company-obligated Mandatorily Redeemable
   Preferred Securities of a trust holding solely
   KCPL Subordinated Debentures                          150,000       150,000
Cumulative Preferred Stock
   $100 Par Value
      3.80% - 100,000 shares issued                       10,000        10,000
      4.50% - 100,000 shares issued                       10,000        10,000
      4.20% - 70,000 shares issued                         7,000         7,000
      4.35% - 120,000 shares issued                       12,000        12,000
   $100 Par Value - Redeemable
      4.00%                                                    -            62
         Total                                            39,000        39,062
Common Stock Equity
   Common stock-150,000,000 shares authorized
      without par value 61,908,729 shares issued,
         stated value                                    449,697       449,697
   Retained earnings (see statements)                    470,289       473,321
   Accumulated other comprehensive income
      Loss on derivative hedging instruments             (10,858)            -
   Capital stock premium and expense                      (1,654)       (1,666)
         Total                                           907,474       921,352
         Total                                       $ 2,197,860   $ 2,152,261
*   Variable rate securities, weighted-average rate as of June 30, 2001
**   Variable rate securities, weighted-average rate as of December 31, 2000
The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.

                                  2
<PAGE>


                     KANSAS CITY POWER & LIGHT COMPANY
                     Consolidated Statements of Income
                                (Unaudited)


Three Months Ended June 30                                2001       2000
                                                            (thousands)
Operating Revenues
   Electric sales revenues                             $325,594    $276,121
   Gas sales revenues                                     5,131      13,824
   Telecommunications revenues                            4,725           -
   Other revenues                                        18,882         981
      Total                                             354,332     290,926
Operating Expenses
   Fuel                                                  39,589      35,332
   Purchased power                                       86,281      56,837
   Gas purchased and production expenses                  4,960       7,316
   Other                                                 85,059      58,838
   Maintenance                                           20,444      18,456
   Depreciation and depletion                            39,991      33,489
   Gain on property                                     (20,398)     (4,715)
   General taxes                                         22,562      22,078
      Total                                             278,488     227,631
Operating income                                         75,844      63,295
Income (Loss) from equity investments                       424     (10,482)
Other income and expenses                                   649      (1,672)
Interest charges                                         25,615      19,016
Income before income taxes                               51,302      32,125
Income taxes                                             15,070       5,385
Net income                                               36,232      26,740
Preferred stock dividend requirements                       412         412
Earnings available for common stock                    $ 35,820    $ 26,328
Average number of common shares outstanding              61,855      61,864
Basic and diluted earnings per common share            $   0.58    $   0.43

Cash dividends per common share                        $  0.415    $  0.415

The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.

                                  3
<PAGE>



                     KANSAS CITY POWER & LIGHT COMPANY
                     Consolidated Statements of Income
                                (Unaudited)


Year to Date June 30                                      2001        2000
                                                             (thousands)
Operating Revenues
   Electric sales revenues                             $576,398    $ 466,454
   Gas sales revenues                                    17,106       21,862
   Telecommunications revenues                            6,992            -
   Other revenues                                        35,693        1,943
      Total                                             636,189      490,259
Operating Expenses
   Fuel                                                  72,303       65,185
   Purchased power                                      156,647       71,635
   Gas purchased and production expenses                 17,115       10,562
   Other                                                164,859      114,358
   Maintenance                                           41,753       38,517
   Depreciation and depletion                            76,622       65,083
   Gain on property                                     (21,706)      (3,690)
   General taxes                                         45,414       43,295
      Total                                             553,007      404,945
Operating income                                         83,182       85,314
Loss from equity investments                               (112)     (16,240)
Other income and expenses                                  (531)      (9,515)
Interest charges                                         49,836       36,368
Income before income taxes, extraordinary
   item and cumulative effect of changes
   in accounting principles                              32,703       23,191
Income taxes                                               (557)      (4,124)
Income before extraordinary item and
   cumulative effect of changes in
   accounting principles                                 33,260       27,315
Early extinguishment of debt,
   net of income taxes                                   15,872            -
Cumulative effect to January 1, 2000,
   of changes in accounting principles,
   net of income taxes                                        -       30,073
Net income                                               49,132       57,388
Preferred stock dividend requirements                       824          824
Earnings available for common stock                    $ 48,308    $  56,564
Average number of common shares outstanding              61,855       61,881
Basic and diluted earnings per common share
   before extraordinary item and cumulative
   effect of changes in accounting principles          $   0.52    $    0.42
Early extinguishment of debt                               0.26            -
Cumulative effect to January 1, 2000, of
   changes in accounting principles                           -         0.49
Basic and diluted earnings per common share            $   0.78    $    0.91

Cash dividends per common share                        $   0.83    $    0.83

The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.

                                  4
<PAGE>



                     KANSAS CITY POWER & LIGHT COMPANY
                   Consolidated Statements of Cash Flows
                                (Unaudited)


 Year to Date June 30                                       2001       2000
                                                              (thousands)
 Cash Flows from Operating Activities
 Net income                                               $  49,132  $  57,388
 Adjustments to reconcile income to net cash
    from operating activities:
       Early extinguishment of debt, net of income taxes    (15,872)         -
       Cumulative effect of changes in
          accounting principles, net of income taxes              -    (30,073)
       Depreciation and depletion                            76,622     65,083
       Amortization of:
          Nuclear fuel                                        8,428      8,640
          Other                                               8,561      5,731
       Deferred income taxes (net)                              346     (3,467)
       Investment tax credit amortization                    (2,145)    (2,235)
       Accretion of Senior Discount Notes                     9,719          -
       Loss from equity investments                             112     16,240
       Gain on sale of KLT Gas properties                   (19,551)         -
       Asset impairments                                          -      1,994
       Allowance for equity funds
          used during construction                           (3,646)    (1,950)
       Other operating activities (Note 1)                 (102,942)    26,634
       Net cash from operating activities                     8,764    143,985
 Cash Flows from Investing Activities
 Utility capital expenditures                              (120,010)  (230,236)
 Allowance for borrowed funds
    used during construction                                 (7,698)    (5,120)
 Purchases of investments                                   (40,653)   (40,850)
 Purchases of nonutility property                           (35,806)   (13,485)
 Sale of KLT Gas properties                                  41,707          -
 Sale of securities                                          20,778          -
 Hawthorn No. 5 partial insurance recovery                   30,000     50,000
 Loan to DTI prior to majority ownership                    (94,000)         -
 Other investing activities                                   4,607     13,113
       Net cash from investing activities                  (201,075)  (226,578)
 Cash Flows from Financing Activities
 Issuance of long-term debt                                  94,000    272,000
 Repayment of long-term debt                                (63,320)   (57,000)
 Net change in short-term borrowings                        197,151    (79,339)
 Dividends paid                                             (52,164)   (52,177)
 Other financing activities                                    (436)    (2,768)
       Net cash from financing activities                   175,231     80,716
 Net Change in Cash and Cash Equivalents                    (17,080)    (1,877)
 Cash and Cash Equivalents at Beginning of Year              34,877     13,073
 Cash and Cash Equivalents at End of Period               $  17,797  $  11,196

 The accompanying Notes to Consolidated Financial Statements are an integral
 part of these statements.

                                  5
<PAGE>


                     KANSAS CITY POWER & LIGHT COMPANY

              Consolidated Statements of Comprehensive Income
                                (Unaudited)

                                   Three Months Ended        Year to Date
                                       June 30                   June 30
                                   2001        2000           2001       2000
                                                   (thousands)
 Net income                      $  36,232  $  26,740      $  49,132  $  57,388

 Other comprehensive income (loss):
    Loss on derivative
      hedging instruments          (31,578)         -        (34,168)         -
    Income tax benefit              13,127          -         14,207          -
       Net loss on derivative
           hedging instruments     (18,451)         -        (19,961)         -

    Reclassification adjustment,
       net of tax                   (4,333)         -         (8,340)     2,337

    Comprehensive income before
      cumulative effect of a
      change in accounting
      principles, net of
      income taxes                  13,448     26,740         20,831     59,725
    Cumulative effect to
     January 1, 2001, of a
     change in accounting
     principles, net of
     income taxes                        -          -         17,443          -


 Comprehensive Income            $  13,448  $  26,740      $  38,274  $  59,725

The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.


                Consolidated Statements of Retained Earnings
                                (Unaudited)

                                  Three Months Ended              Year to Date
                                        June 30                     June 30
                                    2001       2000            2001       2000
                                                   (thousands)
 Beginning balance               $ 460,139  $ 423,500      $ 473,321  $ 418,952
 Net income                         36,232     26,740         49,132     57,388
                                   496,371    450,240        522,453    476,340
 Dividends declared
    Preferred stock -
      at required rates                412        411            824        824
    Common stock                    25,670     25,666         51,340     51,353

 Ending balance                  $ 470,289  $ 424,163      $ 470,289  $ 424,163

The accompanying Notes to Consolidated Financial Statements are an integral
part of these statements.

                                  6
<PAGE>

KANSAS CITY POWER & LIGHT COMPANY

                  CERTAIN FORWARD-LOOKING INFORMATION

Statements made in this report which are not based on historical facts
are forward-looking and, accordingly, involve risks and uncertainties
that could cause actual results to differ materially from those
discussed.  Any forward-looking statements are intended to be as of
the date on which such statements are made.  In connection with the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995, we are providing a number of important factors that could
cause actual results to differ materially from provided forward-
looking information.  These important factors include:
- future economic conditions in the regional, national and
  international markets
- state, federal and foreign regulation
- weather conditions
- financial market conditions, including, but not limited to changes
  in interest rates
- inflation rates
- increased competition, including, but not limited to, the
  deregulation of the United States electric utility industry, and the
  entry of new competitors
- ability to carry out marketing and sales plans
- ability to achieve generation planning goals and the occurrence of
  unplanned generation outages
- nuclear operations
- ability to enter new markets successfully and capitalize on growth
  opportunities in nonregulated businesses
- adverse changes in applicable laws, regulations or rules governing
  environmental (including air quality regulations), tax or accounting
  matters
- delays in the anticipated in service dates of new generating
  capacity
- market conditions in the telecommunications industry

This list of factors may not be all-inclusive since it is not possible
to predict all possible factors.


                              THE COMPANY

The consolidated company (referred to throughout as consolidated or
the Company) consists of Kansas City Power & Light Company (KCPL), KLT
Inc., Great Plains Power Incorporated (GPP), and Home Service
Solutions Inc. (HSS).  KLT Inc.'s major holdings consist of DTI
Holdings, Inc. (DTI), Strategic Energy LLC (SEL), KLT Gas, and
investments in affordable housing limited partnerships.  HSS has two
subsidiaries: Worry Free Service, Inc. and R.S. Andrews Enterprises,
Inc. (RSAE).

                                  7
<PAGE>

Notes to Consolidated Financial Statements

In management's opinion, the consolidated interim financial statements
reflect all adjustments (which include only normal recurring
adjustments) necessary to present fairly the results of operations for
the interim periods presented.  These statements and notes should be
read in connection with the financial statements and related notes
included in our 2000 annual report on Form 10-K.  The consolidated
financial statements include the accounts of KCPL, KLT Inc., HSS and
GPP.

1.  SUPPLEMENTAL CASH FLOW INFORMATION (a)

                                             Year to Date June 30
                                               2001         2000
                                                  (thousands)
Cash flows affected by changes in:
    Receivables                           $  (60,076)  $ (23,532)
    Fuel inventories                          (3,107)       (910)
    Materials and supplies                    (1,326)       (519)
    Accounts payable                         (41,118)     45,683
    Accrued taxes                              3,568      17,961
    Accrued interest                             472      (4,111)
    Wolf Creek refueling outage accrual        5,670       5,292
    Pension and postretirement
      benefit obligations                    (14,051)     (7,496)
Other                                          7,026      (5,734)
        Total other operating activities  $ (102,942)  $  26,634


Cash paid during the period for:
    Interest                              $   41,178   $  39,503
    Income taxes                          $    8,624   $     109


During the first quarter of 2001, KLT Telecom increased its equity
ownership in DTI to a majority ownership and HSS increased its equity
ownership in RSAE to a majority ownership.  The effect of these
transactions is summarized in the tables that follow (b).

                                            DTI         RSAE       Total
                                                     (thousands)
Cash paid to obtain majority ownership   $ (39,855)   $  (560)  $ (40,415)
Subsidiary cash                              4,557      1,053       5,610
   Purchases of subsidiaries, net of
   cash received                         $ (35,298)   $   493   $ (34,805)
Purchase of other investments                                      (5,848)
   Total purchases of investments                               $ (40,653)

                                  8
<PAGE>



                                                 DTI at      RSAE at
                                               February 8   January 1
                                                  2001        2001
Initial consolidation of subsidiaries:              (thousands)
Assets
  Cash                                         $   4,557   $   1,053
  Receivables                                      1,012       4,078
  Other nonutility property and investments      363,825       6,267
  Goodwill                                        67,774      24,496
  Other assets                                     5,143       3,919
  Eliminate equity investment                    (64,870)     (7,200)
    Total assets                               $ 377,441   $  32,613


Liabilities
  Notes payable                                $   5,300   $  10,057
  Accounts payable                                31,299       6,219
  Accrued taxes                                    2,414          24
  Deferred income taxes                            7,437           -
  Deferred telecommunications revenue             41,522           -
  Other liabilities and deferred credits           5,009      13,418
  Loan from KLT Telecom (c)                       94,000           -
  Long-term debt                                 190,460       2,895
    Total liabilities                          $ 377,441   $  32,613


(a) The initial consolidations of DTI and RSAE are not reflected
    in the Consolidated Statement of Cash Flows year to date June 30,
    2001.
(b) Additional adjustments to purchase accounting may be made.
(c) KLT Telecom provided a $94 million loan to DTI for the
    completion of the tender offer of 50.4 percent of DTI's Senior
    Discount Notes prior to increasing its DTI investment to a
    majority ownership.  This loan is eliminated in consolidation.

2. CAPITALIZATION

KCPL Financing I (Trust) has previously issued $150,000,000 of 8.3%
preferred securities.  The sole asset of the Trust is the $154,640,000
principal amount of 8.3% Junior Subordinated Deferrable Interest
Debentures, due 2037, issued by KCPL.

KCPL is authorized to issue an additional $150 million of debt
securities under its shelf registration statement dated November 21,
2000.

DTI's Senior Discount Notes are senior unsecured obligations of DTI.
The discount on the Senior Discount Notes accrues from the date of the
issue until March 1, 2003, at which time interest on the Senior
Discount Notes accrues at a rate of 12.5% per year.  Cash interest is
payable semi-annually in arrears on March 1 and September 1,
commencing September 1, 2003.

                                  9
<PAGE>

3. SEGMENT AND RELATED INFORMATION

The Company's reportable segments include KCPL, KLT Inc. and HSS.
KCPL includes the regulated electric utility, GPP's operations
(immaterial through June 30, 2001) and unallocated corporate charges.
KLT Inc. and HSS are holding companies for various unregulated
business ventures.

The summary of significant accounting policies applies to all of the
segments.  The Company evaluates performance based on several factors
including net income.  The Company eliminates all intersegment sales
and transfers.  The tables below reflect summarized financial
information concerning the Company's reportable segments.


                                       Three Months Ended       Year to Date
                                            June 30               June 30
                                        2001       2000       2001       2000
KCPL                                                  (millions)
Operating revenues                   $ 237.6    $ 228.1    $ 436.4    $ 418.4
Fuel expense                           (39.6)     (35.4)     (72.3)     (65.2)
Purchased power expense                (13.8)     (20.8)     (38.0)     (35.6)
Other (a)                              (94.0)     (89.0)    (187.0)    (180.9)
Depreciation and depletion             (33.8)     (30.9)     (66.5)     (60.2)
Gain (loss) on property                 (0.1)       2.8       (0.1)       2.8
Other income and expenses               (0.4)      (0.7)      (3.6)      (4.6)
Interest charges                       (18.3)     (15.3)     (37.7)     (29.2)
Income taxes                           (14.4)     (14.6)     (10.1)     (17.8)
Cumulative effect of changes in
   pension accounting                      -          -          -       30.1
Net income                           $  23.2    $  24.2    $  21.1    $  57.8
KLT Inc.
Operating revenues                   $  98.0    $  62.0    $ 164.4    $  70.0
Purchased power expense                (72.4)     (36.0)    (118.6)     (36.0)
Other (a)                              (20.5)     (16.7)     (42.8)     (23.3)
Depreciation and depletion              (5.5)      (2.2)      (8.8)      (4.0)
Gain on property                        21.8        1.9       23.1        0.9
Income (loss) from equity investments    0.4       (8.9)         -      (13.5)
Other income and expenses                0.3       (1.2)      (0.1)      (5.6)
Interest charges                        (7.0)      (3.8)     (11.4)      (7.2)
Income taxes                            (0.6)       8.6        9.7       20.5
Early extinguishment of debt               -          -       15.9          -
Net income                           $  14.5    $   3.7    $  31.4    $   1.8

                                  10
<PAGE>



                                       Three Months Ended       Year to Date
                                            June 30               June 30
                                        2001       2000       2001       2000
HSS                                                   (millions)
Operating revenues                   $  18.7    $   0.9    $  35.4    $   1.9
Other (a)                              (18.6)      (1.0)     (39.4)      (2.6)
Depreciation and depletion              (0.7)      (0.4)      (1.3)      (0.9)
Loss on property                        (1.3)         -       (1.3)         -
Loss from equity investments               -       (1.5)      (0.1)      (2.7)
Other income and expenses                0.8        0.2        3.1        0.7
Interest charges                        (0.3)         -       (0.7)         -
Income taxes                            (0.1)       0.7        0.9        1.4
Net loss                             $  (1.5)   $  (1.1)   $  (3.4)   $  (2.2)
Consolidated
Operating revenues                   $ 354.3    $ 291.0    $ 636.2    $ 490.3
Fuel expense                           (39.6)     (35.4)     (72.3)     (65.2)
Purchased power expense                (86.2)     (56.8)    (156.6)     (71.6)
Other (a)                             (133.1)    (106.7)    (269.2)    (206.8)
Depreciation and depletion             (40.0)     (33.5)     (76.6)     (65.1)
Gain on property                        20.4        4.7       21.7        3.7
Income (loss) from equity investments    0.4      (10.4)      (0.1)     (16.2)
Other income and expenses                0.7       (1.7)      (0.6)      (9.5)
Interest charges                       (25.6)     (19.1)     (49.8)     (36.4)
Income taxes                           (15.1)      (5.3)       0.5        4.1
Early extinguishment of debt and
   cumulative effect of changes in
   pension accounting                      -          -       15.9       30.1
Net income                           $  36.2    $  26.8    $  49.1    $  57.4

(a) Other includes gas purchased and production expenses,
    telecommunications expenses, other operating, maintenance and
    general tax expenses.

June 30                            KCPL      KLT Inc.     HSS     Consolidated
2001                                               (millions)
Assets                          $ 3,039.6  $ 735.5(b)   $ 56.1      $ 3,831.2
Net equity method investments           -        -           -              -
Year to date capital and
 investments expenditures           122.4     74.4        (0.3)         196.5
2000
Assets                          $ 2,859.8  $ 314.3      $ 45.7      $ 3,219.8
Net equity method investments           -     22.7        22.9           45.6
Year to date capital and
 investments expenditures           233.2     51.3         0.1          284.6
(b) Includes assets associated with DTI of $464 million and SEL of $97 million.


                                  11
<PAGE>


The following table provides additional detail on the operations of
the KLT segment.

                                       Three Months Ended       Year to Date
                                            June 30               June 30
                                        2001       2000       2001       2000
DTI (a)                                               (millions)
Operating revenues                   $   4.7          -    $   7.0          -
Other                                   (6.8)         -      (10.6)         -
Depreciation and depletion              (5.0)         -       (7.6)         -
Loss from equity investments               -    $  (7.6)         -    $ (14.2)
Other income and expenses                0.2          -        1.0          -
Interest charges                        (4.7)         -       (7.0)         -
Income taxes                             4.0        2.7        6.2        5.1
Early extinguishment of debt               -          -       15.9          -
Net income (loss)                    $  (7.6)   $  (4.9)   $   4.9    $  (9.1)
SEL (a)
Operating revenues                   $  92.9    $  51.5    $ 155.5    $  51.5
Purchased power expense                (72.4)     (36.0)    (118.6)     (36.0)
Other                                   (8.8)      (9.2)     (23.1)      (9.3)
Depreciation and depletion              (0.1)      (0.2)      (0.1)      (0.2)
Income (loss) from equity investments      -       (0.7)         -        0.1
Other income and expenses               (0.9)      (2.1)      (1.2)      (2.1)
Interest charges                           -       (0.1)      (0.1)      (0.1)
Income taxes                            (4.4)      (1.2)      (5.1)      (1.5)
Net income                           $   6.3    $   2.0    $   7.3    $   2.4
Gas
Operating revenues                   $   0.4    $  10.5    $   1.9    $  18.5
Other                                   (3.3)      (5.8)      (6.0)     (11.0)
Depreciation and depletion              (0.4)      (2.0)      (1.0)      (3.8)
Gain (loss) on property                 19.6          -       20.9       (1.4)
Income from equity investments           0.9          -        1.0        1.4
Other income and expenses               (0.1)         -          -          -
Interest charges                           -       (1.1)         -       (2.1)
Income taxes                            (5.3)       1.3       (3.5)       3.4
Net income                           $  11.8    $   2.9    $  13.3    $   5.0
Other
Other                                $  (1.6)   $  (1.7)   $  (3.1)   $  (3.0)
Depreciation and depletion                 -          -       (0.1)         -
Gain on property                         2.2        1.9        2.2        2.3
Loss from equity investments            (0.5)      (0.6)      (1.0)      (0.8)
Other income and expenses                1.1        0.9        0.1       (3.5)
Interest charges                        (2.3)      (2.6)      (4.3)      (5.0)
Income taxes                             5.1        5.8       12.1       13.5
Net income                           $   4.0    $   3.7    $   5.9    $   3.5

(a) KLT Inc. acquired a majority ownership in SEL during the second
    quarter of 2000 and in DTI in February 2001.  Prior to this, the
    investments in SEL and DTI were recorded on an equity basis.  In the
    second quarter of 2000, SEL was included in the Company's
    consolidated financial statements from January 1, 2000, with the
    appropriate adjustments to minority interest from January 1, 2000,
    through the date of the acquisition.

                                  12
<PAGE>

 4. COMMITMENTS AND CONTINGENCIES

Environmental Matters
The Company operates in an environmentally responsible manner and uses
the latest technology available to avoid and treat contamination.  The
Company continually conducts environmental audits designed to ensure
compliance with governmental regulations and to detect contamination.
However, governmental bodies may impose additional or more rigid
environmental regulations that could require substantial changes to
operations or facilities.

     Mercury Emissions
     In December 2000, The United States Environmental Protection
     Agency (EPA) announced it would propose regulations to reduce
     mercury emissions by 2003 and issue final rules by 2004.  KCPL
     cannot predict the likelihood or compliance costs of such
     regulations.

     Air Particulate Matter
     In July 1997, the EPA published new air quality standards for
     particulate matter.  Additional regulations implementing these
     new particulate standards have not been finalized.  Without the
     implementation regulations, the impact of the standards on KCPL
     cannot be determined.  However, the impact on KCPL and other
     utilities that use fossil fuels could be substantial.  Under the
     new fine particulate regulations, the EPA is conducting a three-
     year study of fine particulate emissions.  Until this testing and
     review period has been completed, KCPL cannot determine
     additional compliance costs, if any, associated with the new
     particulate regulations.

     Nitrogen Oxide
     In 1997, the EPA also issued new proposed regulations on reducing
     nitrogen oxide (NOx) emissions.  The EPA announced in 1998 final
     regulations implementing reductions in NOx emissions.  These
     regulations initially called for 22 states, including Missouri,
     to submit plans for controlling NOx emissions.  The regulations
     require a significant reduction in NOx emissions from 1990 levels
     at KCPL's Missouri coal-fired plants by the year 2003.

     In December 1998, KCPL and several other western Missouri
     utilities filed suit against the EPA over the inclusion of
     western Missouri in the 1997 NOx reduction program based upon the
     1-hour NOx standard.  On March 3, 2000, a three-judge panel of
     the District of Columbia Circuit of the U.S. Court of Appeals
     sent the NOx rules related to Missouri back to the EPA, stating
     the EPA failed to prove that fossil plants in the western part of
     Missouri significantly contribute to ozone formation in downwind
     states.  On March 5, 2001, the U.S. Supreme Court denied
     certiorari, making the decision of the Court of Appeals final.
     The full impact of this decision is unknown at this time;
     however, it is likely to delay the implementation of new NOx
     regulations by EPA in the western portion of Missouri for some
     time.

     To achieve the reductions proposed in the 1997 NOx reduction
     program, if required to be implemented, KCPL would need to incur
     significant capital costs, purchase power or purchase NOx
     emissions allowances.  It is possible that purchased power or
     emissions allowances may be too costly or unavailable.
     Preliminary analysis of the regulations indicates that selective
     catalytic reduction technology, as well as other changes, may be
     required for some of the KCPL units.  Currently, KCPL estimates
     that additional capital expenditures to comply with these
     regulations could range from $40 million to $60 million.
     Operations and maintenance expenses could also increase by more
     than $2.5 million per year.  These capital expenditure estimates
     do not include the costs of the new air quality control equipment
     installed at Hawthorn No. 5.  The new air control equipment
     installed at

                                  13
<PAGE>

     Hawthorn No. 5 complies with the proposed requirements discussed
     above.  KCPL continues to refine these preliminary estimates and
     explore alternatives.  The ultimate cost of these regulations, if
     any, could be significantly different from the amounts estimated above.

Low-Level Waste
The Low-Level Radioactive Waste Policy Amendments Act of 1985 mandated
that the various states, individually or through interstate compacts,
develop alternative low-level radioactive waste disposal facilities.
The states of Kansas, Nebraska, Arkansas, Louisiana and Oklahoma
formed the Central Interstate Low-Level Radioactive Waste Compact and
selected a site in northern Nebraska to locate a disposal facility.
Wolf Creek Nuclear Operating Corporation (WCNOC) and the owners of the
other five nuclear units in the compact provided most of the pre-
construction financing for this project.  As of June 30, 2001, KCPL's
net investment on its books was $7.4 million.

Significant opposition to the project has been raised by Nebraska
officials and residents in the area of the proposed facility, and
attempts have been made through litigation and proposed legislation in
Nebraska to slow down or stop development of the facility.  On
December 18, 1998, the application for a license to construct this
project was denied.  This issue is being addressed in the courts.  The
passage of time, along with the appointment of a new state
administration in Nebraska, has increased the chances for reversal of
the license denial.

In May 1999, the Nebraska legislature passed a bill withdrawing
Nebraska from the Compact.  In August 1999, the Nebraska governor gave
official notice of the withdrawal to the other member states.
Withdrawal will not be effective for five years and will not, of
itself, nullify the site license proceeding.

Coal Contracts
KCPL's remaining share of coal purchase commitments under existing
contracts total $86.7 million.  Obligations for the remainder of 2001
through 2003, based on estimated prices for those years, total $22.2
million, $46.6 million, and $17.9 million, respectively.  These
amounts are net of purchases made year to date 2001.

5. RECEIVABLES

                                    June 30       December 31
                                      2001           2000
                                         (thousands)
KCPL Receivable Corporation       $  52,076       $  48,208
Other Receivables                   128,446          67,148

Receivables                       $ 180,522       $ 115,356



Accounts receivable sold under the revolving agreement between KCPL
Receivable Corporation and KCPL totaled $112.1 million at June 30,
2001, and $108.2 million at December 31, 2000.  In consideration of
the sale, KCPL received $60 million in cash and the remaining balance
in the form of a subordinated note from KCPL Receivable Corporation.

Other receivables consist primarily of receivables from partners in
jointly-owned electric utility plants, bulk power sales receivables
and accounts receivable held by subsidiaries, including receivables
from the increase to a majority ownership of DTI and RSAE (see Note 1
Supplemental Cash Flow Information).

                                  14
<PAGE>

6. DERIVATIVE FINANCIAL INSTRUMENTS

On January 1, 2001, the Company adopted Financial Accounting Standards
Board (FASB) Statement No. 133 - Accounting for Derivative Instruments
and Hedging Activities, as amended.  FASB 133 requires that every derivative
instrument be recorded on the balance sheet as an asset or liability
measured at its fair value and that changes in the fair value be
recognized currently in earnings unless specific hedge accounting
criteria are met.

FASB 133 requires that as of the date of initial adoption, the
difference between the fair market value of derivative instruments
recorded on the balance sheet and the previous carrying amount of
those derivatives be reported in net income or other comprehensive
income, as appropriate, as a cumulative effect of a change in
accounting principle.  The adoption of FASB 133 on January 1, 2001,
required the Company to record a $0.2 million expense, net of $0.1
million of income tax.  The Company did not reflect this immaterial
amount as a cumulative effect.  This entry increased interest expense
by $0.6 million and reduced purchased power expense by $0.3 million.
The Company also recorded $17.4 million, net of $12.6 million of
income tax, as a cumulative effect of a change in accounting principle
applicable to comprehensive income for its cash flow hedges.

Derivative Instruments and Hedging Activities
The Company's activities expose it to a variety of market risks
including interest rates and commodity prices.  Management has
established risk management policies and strategies to reduce the
potentially adverse effects that the volatility of the markets may
have on its operating results.

The Company's interest rate risk management strategy uses derivative
instruments to minimize significant, unanticipated earnings
fluctuations caused by interest-rate volatility on a portion of its
variable rate debt.  The Company maintains commodity-price risk
management strategies that use derivative instruments to minimize
significant, unanticipated earnings fluctuations caused by commodity
price volatility.

The Company's risk management activities, including the use of
derivatives, are subject to the management, direction and control of
Risk Management Committees.

Interest Rate Risk Management
KCPL utilizes interest rate management derivatives to reduce a portion
of KCPL's interest rate risk by converting a portion of its variable
interest rate payments into fixed interest rate payments.

In 2000, KCPL issued $200 million of unsecured, floating rate medium-
term notes.  Simultaneously, KCPL entered into interest rate cap
agreements to hedge the interest rate risk on the notes.  The cap
agreements are designated as cash flow hedges.  The difference between
the fair market value of the cap agreements recorded on the balance
sheet at initial adoption and the unamortized premium was reported in
interest expense.

KCPL entered into interest rate swap agreements to limit the interest
rate on $30 million of long-term debt.  These swaps do not qualify for
hedge accounting.  The swap agreements mature in 2003 and effectively
fix the interest to a weighted-average rate of 3.88%.  The fair market
values of these agreements are recorded as current assets and
liabilities and adjustments to interest expense on the income
statement.  Changes in the fair market value of these instruments are
recorded in the income statement.

                                  15
<PAGE>

Commodity Risk Management
SEL utilizes an option and power swap agreements to hedge commodity
prices in various markets.  The option and a majority of the swap
agreements are designated as cash flow hedges.

The remaining swap agreements do not qualify for hedge accounting.
The fair market value of these swaps at January 1, 2001, was recorded
as an asset or liability on the balance sheet and an adjustment to the
cost of purchased power.  The change in the fair market value and
future changes in the fair market values of these swaps will also be
recorded in purchased power.

The option allows SEL to purchase up to 270 megawatts of power at a
fixed rate of $21 per mwh.  The swap agreements protect SEL from price
volatility by fixing the price per mwh.  The fair market value of this
option and the swap agreements designated as cash flow hedges at
January 1, 2001, was recorded as a current asset and a cumulative
effect of a change in accounting principle in comprehensive income.
When the power is purchased and to the extent the hedge is effective
at mitigating the cost of purchased power, the amounts accumulated in
other comprehensive income are reclassified to the consolidated income
statement.  However, most of the energy purchased under the option and
the energy hedged with the swaps has been sold to customers through
contracts at prices different than the fair market value used to value
the option and the swaps.  Therefore, SEL will not receive income or
losses to the extent represented in comprehensive income in the
current or future periods.  To the extent that the hedges are not
effective, the ineffective portion of the changes in fair market value
will be recorded directly to purchased power.

KLT Gas' risk management policy is to use firm sales agreements or
financial hedge instruments to mitigate its exposure to market price
fluctuations on up to 100% of its daily natural gas production.  These
hedging instruments are designated as cash flow hedges. The fair
market value of these instruments at January 1, 2001, was recorded as
current assets and current liabilities, as applicable, and the
cumulative effect of a change in an accounting principle in
comprehensive income.  When the gas is sold and to the extent the
hedge is effective at mitigating the sales price of gas, the amounts
in other comprehensive income are reclassified to the consolidated
income statement.  To the extent that the hedges are not effective,
the ineffective portion of the changes in fair market value will be
recorded directly in gas revenues.

KLT Gas unwound the majority of its gas hedge derivatives with a swap
transaction during the second quarter of 2001 primarily due to
declining production at its gas properties.   This transaction does
not qualify for hedge accounting.  The fair market value of the swap
has been recorded in gas revenues.  Future changes in the fair market
value of this swap will also be recorded in gas revenues.

KCPL has eight capacity contracts, which it does not consider to be
derivatives.  During the second quarter of 2001, FASB cleared an
interpretation from the FASB Derivatives Implementation Group.  The
new implementation guidelines will be applied in the third quarter of
2001.  KCPL is still evaluating its capacity contracts under the new
guidelines, but does not expect the contracts to be considered
derivatives under the new guidelines.

                                  16
<PAGE>

The amounts recorded related to the cash flow hedges are summarized
below.

Activity for three months ended June 30, 2001
                                            Increase
                                         (Decrease) in
                               March 31  Comprehensive                 June 30
Balance Sheet Classification    2001         Income     Reclassified     2001
Assets                                          (millions)
   Other current assets        $ 30.1       $(13.8)       $(10.3)       $ 6.0
Liabilities
   Other current liabilities     (4.4)       (24.7)          1.1        (28.0)
   Other comprehensive income   (11.9)        18.4           4.3         10.8
   Deferred income taxes         (8.7)        13.1           3.1          7.5
   Other deferred credits        (5.1)         7.0           1.8          3.7


Activity for year to date June 30, 2001
                              Cumulative    Increase
                               Effect to  (Decrease) in
                               January 1, Comprehensive                June 30
Balance Sheet classification       2001      Income      Reclassified    2001
Assets                                           (millions)
   Other current assets        $ 44.5       $(17.3)       $(21.2)       $ 6.0
Liabilities
   Other current liabilities     (6.8)       (24.4)          3.2        (28.0)
   Other comprehensive income   (17.4)        19.9           8.3         10.8
   Deferred income taxes        (12.7)        14.2           6.0          7.5
   Other deferred credits        (7.6)         7.6           3.7          3.7

7. HSS PURCHASE OF AN ADDITIONAL OWNERSHIP INTEREST IN RSAE

On March 12, 2001, HSS acquired control of RSAE by acquiring an
additional 22.1% of the shares of RSAE for $0.6 million.

This acquisition has been accounted for by the purchase method of
accounting and the operating results of RSAE have been included in the
Company's consolidated financial statements from January 1, 2001, with
the appropriate adjustments to minority interest from January 1, 2001,
through the date of the acquisition.  RSAE's June 30, 2001, assets
included $23.3 million of goodwill, which is being amortized over 40
years.  On a pro forma basis, as if the business had been acquired at
the beginning of fiscal 2000, revenue, net income and earnings per
share would not differ materially from the amounts reported in the
Company's year ended December 31, 2000, consolidated financial
statements.

8. KLT TELECOM INC. PURCHASE OF AN ADDITIONAL OWNERSHIP INTEREST IN DTI

On February 8, 2001, KLT Telecom acquired control of DTI by acquiring
an additional 31.2% of the fully diluted shares of DTI from Richard D.
Weinstein, DTI's former Chairman, President and CEO, for $33.6 million
in cash.  An additional 5.0% of the fully diluted shares were
purchased through a tender offer for DTI's outstanding warrants and
the purchase of a separate warrant for 1.0% of DTI's common stock.
Consequently, KLT Telecom now owns 83.6% of DTI's fully diluted
shares.  Under the purchase agreement, Weinstein, who resigned as
Chairman, President and CEO, retained just over 15% of the fully
diluted ownership and a seat on the DTI board.  Also, the parties
granted put

                                  17
<PAGE>

and call options that gave Weinstein the right to sell and
KLT Telecom the right to buy Weinstein's remaining ownership in DTI.

This acquisition has been accounted for by the purchase method of
accounting.  Operating results were included in the Company's
consolidated financial statements from the date of the acquisition.
Goodwill of $67.8 million was recorded as a result of this acquisition
and is being amortized over 25 years.  At June 30, 2001, unamortized
goodwill totaled $66.6 million.

Extraordinary Item  Early Extinguishment of Debt
The KLT Telecom gain on early extinguishment of debt year to date June
30, 2001, resulted from DTI's completion of a successful tender offer
for 50.4 percent of its outstanding Senior Discount Notes prior to KLT
Telecom acquiring a majority ownership in DTI.  The $15.9 million
early extinguishment of debt has been reduced by the losses previously
recorded by DTI but not reflected by KLT Telecom, and is net of $9.1
million of income taxes.

Telecommunications Property
Telecommunications property at June 30, 2001, of $384.8 million, is
net of accumulated depreciation of $39.8 million and consists mainly
of fiber optic plant and usage rights.  At June 30, 2001,
telecommunications property includes $63 million of construction in
progress.

Operating Leases and Indefeasible Rights to Use (IRU) Commitments
DTI is a lessee under operating leases and IRUs for fiber, equipment
space, maintenance, power costs and office space.  Minimum rental
commitments under these agreements for 2001 are $8 million and $9
million annually for the years 2002 through 2005.  After 2005, minimum
rental commitments under these agreements total $136 million.

DTI Risk Factors
For a description of certain risk factors that may adversely affect
DTI's business and results of operations, see DTI's Form 10K for the
six-month period ended December 31, 2000, filed on
May 15, 2001, and DTI's Form 10Q for the quarter ended June 30, 2001.

Pro forma Information
The following unaudited pro forma consolidated results of operations
are presented as if the acquisition of an additional ownership
interest in DTI had been made at January 1, 2000.  No pro forma
adjustments to net income are required after February 8, 2001.


                                                   Three Months Ended
                                                     June 30, 2000
                                                            (thousands)
Revenues                                                      $293,400

                                                                           EPS
Net income                                                    $ 26,740
Eliminate DTI recorded operating loss                            4,719
Add DTI operating loss on a 100% basis                          (9,236)
Other adjustments                                                 (753)
Pro forma net income                                          $ 21,470    $0.35


                                  18
<PAGE>



                                                  Year to Date June 30
                                              2001                   2000
                                                     (thousands)
Revenues                                $637,667              $495,103
                                                   EPS                     EPS
Income before extraordinary item
  and cumulative effect of changes
  in accounting principles              $ 33,260              $ 27,315
Eliminate DTI recorded operating loss     13,863                 8,876
Add DTI operating loss on a 100% basis   (18,219)              (17,970)
Other adjustments                           (460)               (1,356)
Pro forma loss before extraordinary
  item and cumulative effect of
  changes in accounting principles      $ 28,444   $0.46      $ 16,865    $0.27
Cumulative effect to January 1, 2000
  of changes in accounting principles,
  net of income taxes                          -       -        30,073     0.49
DTI's early extinguishment of debt,
  net of income taxes and
  minority interests                      50,695    0.82             -        -
Pro forma net income                    $ 79,139   $1.28      $ 46,938    $0.76
The unaudited pro forma consolidated results of operations are not
necessarily indicative of the combined results that would have
occurred had the acquisition occurred on those dates, nor is it
indicative of the results that may occur in the future.

9. Sale of Equity Investments

Sale of KLT Investments II Inc.'s Ownership of Downtown Hotel Group

On May 31, 2001, KLT Investments II Inc. sold its 25% ownership of
Kansas City Downtown Hotel Group, L.L.C. for total proceeds of $3.8
million resulting in a $2.2 million gain before income taxes. The
after income tax gain on the sale was $1.4 million and $0.02 per share.

Sale of KLT Gas Properties

On June 28, 2001, KLT Gas sold its 50% ownership in Patrick KLT Gas,
LLC for total proceeds of $41.7 million resulting in a $19.6 million
gain before income taxes. The after income tax gain on the sale was
$11.6 million and $0.19 per share.

10. New Accounting Pronouncement

FASB has issued FASB Statement No. 142 - Goodwill and Other Intangible
Assets.  FASB 142 is effective for fiscal years beginning after
December 15, 2001.  KCPL will adopt FASB 142 on January 1, 2002.
Under the new pronouncement, goodwill will be assigned to reporting
units and an initial impairment test (comparison of the fair value of
a reporting unit to its carrying amount) will be done on all goodwill
within six months of initially applying the statement and then at
least annually, thereafter.  We have not yet quantified the effects of
adopting FASB 142 on the Company's financial condition and results of
operation.  At June 30, 2001, goodwill reported on the Consolidated
Balance Sheet totaled $104.5 million.

                                  19
<PAGE>

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

The following discussion and analysis by management focuses on those
factors that had a material effect on the consolidated financial
condition and results of operations for the three months ended and
year to date June 30, 2001, compared to the three months ended and
year to date June 30, 2000. The discussion should be read in
conjunction with the accompanying Consolidated Financial Statements,
Notes and especially Note 3 - Segment and Related Information which
summarizes the income statement by segment.


Consolidated Earnings Overview
                                      Three Months
                                         Ended            Year to Date
                                        June 30              June 30
                                    2001       2000      2001       2000
 Earnings per share (EPS) summary
 KCPL
   Excluding cumulative effect    $ 0.37      $ 0.39    $ 0.33     $ 0.43
   Cumulative effect of changes
     in pension accounting             -           -         -       0.49
       KCPL EPS                     0.37        0.39      0.33       0.92

 KLT Inc.
   Excluding extraordinary item     0.23        0.06      0.24       0.03
   Extraordinary item:
     Early extinguishment of debt      -           -      0.26          -
       KLT Inc. EPS                 0.23        0.06      0.50       0.03

 HSS EPS                           (0.02)      (0.02)    (0.05)     (0.04)

 Reported Consolidated EPS        $ 0.58      $ 0.43    $ 0.78     $ 0.91


On February 1, 2001, DTI completed a tender offer for 50.4% of its
outstanding senior discount notes.  This transaction resulted in KLT
Inc. reporting on an equity basis a $15.9 million ($0.26 per share)
extraordinary item for the gain on the early extinguishment of debt
year to date June 30, 2001.

Effective January 1, 2000, KCPL changed its methods of amortizing
unrecognized net gains and losses and determination of expected return
related to its accounting for pension expense.  Accounting principles
required the Company to record the cumulative effect of these changes
increasing common stock earnings year to date June 30, 2000, by $30.1
million ($0.49 per share).  Adoption of the new methods of accounting
for pensions will lead to greater fluctuations in pension expense in
the future.  The portions of the cumulative effect of pension
accounting changes attributable to KLT Inc. and HSS are immaterial
and, therefore, were not allocated to these subsidiaries.

For further discussion regarding each segment's contribution to
consolidated EPS, see its respective Earnings Overview section below.

                                      20
<PAGE>

KCPL Operations

KCPL Business Overview
KCPL, a regulated utility, consists of two business units - generation
and delivery.  Dividing into two business units has provided KCPL the
opportunity to reexamine the businesses' internal processes in order
to operate more efficiently and create additional value for
shareholders.

The generation business has over 3,700 megawatts of generating
capacity including Hawthorn No. 5.   The rebuild of the boiler at
Hawthorn No. 5 is complete.  The unit was returned to commercial
operation on June 20, 2001.

The delivery business consists of transmission and distribution that
serves over 471,000 customers at June 30, 2001, and experiences annual
load growth of approximately 2% to 3% through increased customer usage
and additional customers.  Rates charged for electricity are currently
below the national average.  Additionally, there is a moratorium on
changes to Missouri retail rates until March 2002.

KCPL has a regulatory obligation to join a Federal Energy Regulatory
Commission (FERC) approved Regional Transmission Organization (RTO) by
December 2001.  RTOs combine regional transmission operations of
utility businesses into an organization that schedules transmission
services and monitors the energy market to ensure regional
transmission reliability and non-discriminatory access.  KCPL has been
considering its options for joining an RTO.  In a recent order, FERC
indicated a desire for the numerous RTO's that have been formed and
are in the process of being formed, to consolidate into the formation
of just four RTOs covering the entire nation.  To accomplish that
objective, FERC directed an Administrative Law Judge to mediate a
potential consolidation among the various RTO's.  The Administrative
Law Judge has been ordered to issue a report within 45 days from the
July 12, 2001 FERC order.

Strategy
In order to add value for its shareholders, the Company plans to
restructure by forming a holding company with three operating
subsidiaries.  These subsidiaries will include:

- KCPL, a regulated utility;
- GPP, a competitive generation company that will sell to the
  wholesale market; and
- KLT Inc. with its unregulated energy related and telecommunications
  businesses.

In implementing this strategy, the Company is focused on:

- Providing reliable, low-cost electricity to retail customers;
- Acquiring and investing in generation to serve the wholesale
  market;
- Pursuing high growth, unregulated business opportunities;
- Managing the Company as a portfolio of both regulated and unregulated
  energy related and growth businesses; and
- Investing in a diverse group of people, recognizing that KCPL's
  success is dependent upon the skills and expertise of its people.

The Company is in the process of obtaining the necessary regulatory
approvals for the reorganization.  Approvals have been received from
the FERC, the Federal Communications Commission, the Nuclear
Regulatory Commission, the Missouri Public Service Commission and the
Kansas Corporation Commission.  The Company is expecting approval from
the Securities and Exchange Commission shortly.

                                      21
<PAGE>

KCPL Earnings Overview
KCPL contributed EPS of $0.37 for the three months ended June 30,
2001, compared to $0.39, for the same period in 2000, and $0.33 year
to date June 30, 2001, compared to $0.43, excluding the cumulative
effect of changes in pension accounting, for the same period in 2000.
The following table and discussion highlight significant factors
affecting the changes in KCPL's EPS contribution for the periods
indicated.

 June 30, 2001 compared to June 30, 2000
                                    Three Months
                                       Ended         Year to Date

 Increased revenues                  $  0.09          $  0.18
 Increased price of purchased
   power energy                        (0.01)           (0.07)
 Decrease in quantity of energy
   and capacity purchased               0.08             0.05
 Increased price of fossil fuels       (0.02)           (0.05)
 Replacement power cost of Hawthorn
   units' test energy                  (0.02)           (0.02)
 Interest charges                      (0.03)           (0.08)
 Increased depreciation                (0.03)           (0.06)
 Other (see discussion below)          (0.08)           (0.05)
   Total                             $ (0.02)         $ (0.10)

Contributing to the other factors impacting the change in KCPL's EPS
are the following:
  -  Increased expenses because of the write-off of $2.0 million of
     billings incurred after January 1, 2001, to one of KCPL's larger
     customers because of its Chapter 11 bankruptcy filing on February 7,
     2001.  Any recoveries from this bankruptcy proceeding will be recorded
     as income when received.
  -  Increased salaries, benefits and legal expenses for the three months
     ended and year to date June 30, 2001, compared to the same periods in
     2000.
  -  Decreased gain on property due to a gain on the sale of unit train coal
     cars during the three months ended and year to date June 30, 2000.

KCPL Megawatt-hour (mwh) Sales and Electric Sales Revenues
June 30, 2001 compared to June 30, 2000
                               Three Months Ended         Year to Date
                               Mwh       Revenues       Mwh       Revenues
 Retail Sales:                        (revenue change in millions)
   Residential                   5  %     $  2.5         11  %     $  8.6
   Commercial                    6  %        5.4          5  %        6.3
   Large Industrial Customer   (95) %       (6.7)       (73) %       (7.8)
   Industrial - Other           (5) %       (1.3)        (4) %          -
   Other                         5  %        0.1          1  %        0.1
     Total Retail               (1) %          -          1  %        7.2
 Sales for Resale:
   Bulk Power Sales             81  %        8.9         27  %        8.9
   Other                         2  %          -          2  %        0.3
     Total                       8  %        8.9          4  %       16.4
   Other revenues                            0.6                      1.6
 KCPL electric sales revenues             $  9.5                   $ 18.0

                                      22
<PAGE>

Residential  and commercial mwh sales increased for the three months
ended and year to date June 30, 2001, compared to the same periods of
2000, primarily due to warmer spring and early summer weather and
colder winter weather for the periods and continued load growth.  Load
growth consists of higher usage-per-customer and the addition of new
customers.  Industrial mwh sales decreased for the three months ended
and year to date June 30, 2001, compared to the the same periods of
2000 mostly offsetting the increase in residential and commercial mwh
sales.  The decrease in industrial mwh sales is primarily due to one
of KCPL's larger customers filing for bankruptcy on February 7, 2001,
and closing its Kansas City, Missouri facilities on May 25, 2001.

Bulk power sales vary with system requirements, generating unit and
purchased power availability, fuel costs and requirements of other
electric systems.  Increased bulk power mwh sales for both the three
months ended and year to date June 30, 2001, compared to the same
periods in 2000 was partially attributable to the availability of
Hawthorn No. 5 and the loss of the large industrial customer discussed
above.  The increase in bulk power sales year to date June 30, 2001,
compared to the same period of 2000 was partially offset by the colder
winter weather and continued load growth during the first three months
of 2001.  The average prices per mwh of bulk power sales were up 17%
for the three months ended and 23% year to date June 30, 2001,
compared to the same periods of 2000.

KCPL's share of LaCygne No. I unit's capacity has been temporarily
reduced by approximately 100 megawatts because of the failure, in mid-
July 2001, of one of the two air heaters.  KCPL will replace the 30-
year old air heaters during a 6-week fall outage at a capitalized cost
of $3 to $4 million.  KCPL anticipates that other units will replace
the lost capacity during the outage.  However, this outage will reduce
bulk power sales in the fourth quarter of 2001.

KCPL Fuel and Purchased Power
Fuel costs increased $4.2 million for the three months ended and $7.1
million year to date June 30, 2001, compared to the same periods of
2000.  The higher costs per mmBtu of natural gas and the increased
generation from coal and natural gas were the reasons for the increase
in fuel costs.  Total generation, excluding the testing of Hawthorn
units prior to commercial operation, increased 9% for the three months
ended and 3% year to date June 30, 2001, compared to the same periods
of 2000.  Natural gas has a significantly higher cost per mmBtu than
coal or nuclear fuel.

Fossil plants represent about two thirds of total generation and the
nuclear plant about one third.  Nuclear fuel costs per mmBtu remain
substantially less than the mmBtu price of coal.  KCPL expects the
price of nuclear fuel to remain fairly constant through the year 2003.
KCPL's procurement strategies continue to provide coal costs below the
regional average.

Purchased power expenses decreased $7.0 million for the three months
ended June 30, 2001, compared to the same period of 2000 primarily due
to a 40% decrease in mwh's purchased due to an increase in the
availability of KCPL's generating units and a decline in capacity
purchased.  However, the decrease was slightly offset by an increase
in the price per mwh of purchased power.  Purchased power expenses
increased $2.4 million year to date June 30, 2001, compared to the
same period of 2000 primarily due to an increase in the price per mwh
partially offset by a decline in capacity costs.  The cost per mwh for
purchased power is significantly higher than the fuel cost per mwh of
generation.

KCPL Other Income and Expenses
The $1.0 million favorable change in KCPL's other income and expenses
year to date June 30, 2001, compared to the same period of 2000 was
caused primarily by a $1.7 million increase in the allowance for
equity funds used during construction.  This increase represents
mainly the cost of capital used to finance expenditures during
construction of Hawthorn No. 5 that arose from other than short- and
long-term debt.  This cost, along with the interest on borrowed funds
used during construction, is capitalized as a component of the
construction cost.  The increase in the allowance for equity funds
used during

                                      23
<PAGE>

construction was partially offset by an increase in the write-off of
billings primarily related to the bankruptcy filing of one of KCPL's
larger customers.

KCPL Interest Charges
KCPL's interest charges increased $3.0 million for the three months
ended and $8.5 million year to date June 30, 2001, compared to the
same periods of 2000 primarily because long-term debt interest expense
increased offset by an increase in interest charged to construction.
The increase in interest expense reflected higher average levels of
outstanding long-term debt.  The higher average levels of debt
primarily reflect $200 million of unsecured, floating rate medium-term
notes issued by KCPL in March 2000, and $250 million of unsecured
fixed-rate senior notes issued in December 2000, partially offset by
$60.5 million of scheduled debt repayments by KCPL since June 30,
2000.

Short-term debt interest expense increased for the three months ended
and year to date June 30, 2001, compared to the same periods of 2000
due to higher average levels of outstanding short-term debt.  KCPL had
$245.8 million of commercial paper outstanding at June 30, 2001,
compared to $159.4 million at June 30, 2000.

KCPL uses interest rate swap and cap agreements to limit the
volatility in interest expense on a portion of its variable-rate, long-
term debt.  Although these agreements are an integral part of interest
rate management, the incremental effect on interest expense and cash
flows is not significant.

Allowance for borrowed funds used during construction increased $1.0
million for the three months ended and $2.6 million year to date June
30, 2001 compared to the same periods of 2000 because of increased
expenditures for construction projects, including Hawthorn No. 5.

Wolf Creek
Wolf Creek is one of KCPL's principal generating units, representing
about 15% of KCPL's generating capacity.  The plant's operating
performance has remained strong over the last three years,
contributing about 30% of KCPL's annual mwh generation while operating
at an average capacity of 93%.  Furthermore, Wolf Creek has the lowest
fuel cost per mmBtu of any of KCPL's generating units.

KCPL accrues the incremental operating, maintenance and replacement
power costs for planned outages evenly over the unit's operating
cycle, normally 18 months.  As actual outage expenses are incurred,
the refueling liability and related deferred tax asset are reduced.
Wolf Creek's next refueling and maintenance outage is scheduled for
the spring of 2002 and is estimated to be a 30-day outage.

Ownership and operation of a nuclear generating unit exposes KCPL to
risks regarding decommissioning costs at the end of the unit's life
and to potential retrospective assessments and property losses in
excess of insurance coverage.

Hawthorn No. 5
On June 20, 2001, Hawthorn No. 5 was returned to commercial operation.
The coal-fired unit has a capacity of 550 megawatts and was rebuilt
following a February 1999 explosion that destroyed the boiler.  KCPL
has been recognized nationally in President Bush's National Energy
Policy Report for its use of state-of-the-art pollution control
technology in the rebuilt Hawthorn No. 5.  Under KCPL's property
insurance coverage, with limits of $300 million, KCPL received an
additional $30 million in insurance recoveries year to date June 30,
2001, increasing the total insurance recoveries received to date to
$160 million.  The recoveries have been recorded in Utility Plant -
accumulated depreciation on the consolidated balance sheet.
Expenditures, excluding capitalized interest, for rebuilding Hawthorn
No. 5, were $35.6 million in 1999, $207.6 million in 2000 and are
projected to be about $73 million in 2001, of which $53.9 million were
incurred year to date June 30, 2001.  These amounts have not been
reduced by the insurance proceeds received to date or future proceeds
to be received.

                                      24
<PAGE>

KLT Inc. Operations

KLT Inc. Business Overview
KLT Inc., an unregulated subsidiary, pursues business ventures in
higher growth businesses.  Existing ventures include investments in
telecommunications, natural gas development and production, energy
services and affordable housing limited partnerships.  KCPL's
investment in KLT Inc. was $150 million at June 30, 2001, and $119
million at December 31, 2000.

Telecommunications - DTI Holdings, Inc. (DTI)
At December 31, 2000, KLT Telecom, a subsidiary of KLT Inc., owned 47%
of DTI (acquired in 1997), a facilities-based telecommunications
company.  Through utilization of a $94 million loan (10% interest
rate) from KLT Telecom, DTI successfully completed a tender offer to
repurchase a portion of its long-term debt on February 1, 2001,
reducing interest costs.  On February 8, 2001, KLT Telecom increased
its ownership from 47 percent to 84 percent of DTI.  See Note 8 to the
Consolidated Financial Statements for further information.

The strategic design of the DTI network allows DTI to offer reliable,
high-capacity voice and data transmission services, on a region-by-
region basis, to primary carriers and end-user customers who seek a
competitive alternative to existing providers.  DTI's network
infrastructure is designed to provide reliable customer service
through back-up power systems, automatic traffic re-routing and
computerized automatic network monitoring.  If the network experiences
a failure of one of its links, the routing intelligence of the
equipment transfers traffic to the next choice route, thereby ensuring
delivery without affecting customers.  DTI currently provides services
to other communication companies including Tier 1 and Tier 2 carriers.
DTI also provides private line services to targeted business and
governmental end-user customers.  All of DTI's operations are subject
to federal and state regulations.  DTI's sales activities were
primarily focused in the states of Missouri, Arkansas and Oklahoma.

Responding to the current challenges of the telecommunications
industry, DTI has more narrowly focused its strategy.  In order to
reduce the capital requirements, DTI will only provide connectivity in
secondary and tertiary markets in five states.  In addition, DTI is
evaluating means to enhance its business by utilizing the significant
metropolitan fiber assets that it has in its current regional network
to provide metro access services, including high bandwidth services
over an Ethernet based network targeted at enterprise customers (i.e.,
Gigabit Ethernet services).  DTI estimates that their total additional
cash funding requirements subsequent to June 30, 2001, necessary to
implement this strategy and to fund existing commitments and payables,
will be approximately $33 million over the next 18 months.  This $33
million estimated funding requirement consists of (i) approximately
$25 million related to the five-state region strategy and , (ii)
approximately $8 million to fund the metro access strategy.  Despite
the difficult telecommunications marketplace, DTI continues to grow
its business by expanding existing contracts and securing new business
including one with the country's largest discount retailer.  On the
network development front, DTI plans to complete the lighting of its
Kansas/Oklahoma ring in early August.  The company has also made
significant progress in completing its backbone construction.  DTI is
actively exploring its strategic alternatives including a merger, sale
of assets or other type of recapitalization.

KLT Telecom had committed to provide or arrange a revolving credit
facility for DTI in the amount of $75 million.  A credit facility with
bank lenders has not been possible to obtain due to, among other
things, the downturn in the telecommunications industry.  Under this
arrangement, KLT Telecom has loaned DTI a total of $44.5 million ($5.5
million was loaned on July 26, 2001).  This loan is secured, to the
extent permitted by law or agreement, by DTI's assets.  The DTI Board
of Directors confirmed that KLT Telecom is not obligated to make any
other future loans to DTI. This confirmation was based on the downturn
in the telecommunications industry and the resulting decline in DTI's
prospects and financial

                                      25
<PAGE>

condition.  However, KLT Telecom has agreed to review DTI's revised
business plan and to consider, in its sole judgment, lending up to the
remaining $30.5 million contemplated by its original commitment.

Including the loans to date detailed above, interest accrued on these
loans and goodwill recorded, KLT Telecom has $196.5 million invested
in DTI.  KLT's assets include assets associated with DTI of $463.7
million.

Because of the downturn in the telecommunication industry, an
impairment analysis was performed on the DTI assets in accordance
with FASB 121 - Accounting for the Impairment of Long-Lived Assets and
for Long-Lived Assets to Be Disposed Of, which requires that long-
lived assets be reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable.  The analysis indicated there was no impairment at this
time.

Natural Gas Development and Production - KLT Gas
KLT Gas' business strategy is to acquire and develop early stage
coalbed methane properties and then divest properties in order to
create shareholder value.  KLT Gas believes that coalbed methane
production provides an economically attractive alternative source of
supply to meet the growing demand for natural gas in North America and
has built a knowledge base in coalbed methane production and reserves
evaluation.  Therefore, KLT Gas focuses on coalbed methane; a niche in
the natural gas industry where it believes its expertise gives it a
competitive advantage.  Because it has a longer, predictable reserve
life, coalbed methane is inherently lower risk than conventional gas
exploration.  Although gas prices have been volatile recently, KLT Gas
continues to believe the long-term future price scenarios for natural
gas appear strong.  Environmental concerns and the increased demand
for natural gas for new electric generating capacity are contributing
to this projected growth in demand.

KLT Gas' properties are located in Colorado, Texas, Wyoming, Kansas,
and Nebraska.  These leased properties cover approximately 185,000
undeveloped acres.  The development of this acreage is in accordance
with KLT Gas' exploration plan and capital budget.  The timing of the
development may vary from the plans based upon obtaining the required
environmental and regulatory approvals and permits.

Energy Management Service - Strategic Energy LLC (SEL)
SEL is an energy management services provider that operates in the
newly deregulated electricity markets of Pennsylvania, Southern
California, Ohio and New York and has plans to enter the Massachusetts
and Texas markets during the second half of 2001.  In 2001, in
exchange for approximately $4.7 million preferred stock ownership in
an energy services company, the ownership in SEL was increased from
approximately 72% to approximately 83%.

SEL acts as an energy manager in deregulated markets on behalf of over
12,600 commercial and small manufacturing customers.  SEL enters into
one to five year contracts with customers to supply energy and manage
their energy needs.  For this service they receive an ongoing
management fee plus the contracted price for the electricity and
natural gas.

SEL's suppliers and customer base are very diverse.  Suppliers include
small and large energy generators across the country.  Customers
include numerous Fortune 500 companies, school districts, and
governmental entities.  SEL's customer base is currently concentrated
in the four previously mentioned deregulated states.  Based on current
signed contracts and expected usage, SEL forecasts a peak load of
1,160 megawatts for 2001.  The largest concentration of the forecasted
load, 467 megawatts, is in Pennsylvania.

                                      26
<PAGE>

Investments in Affordable Housing Limited Partnerships - KLT Investments
At June 30, 2001, KLT Investments had $96.0 million in affordable
housing limited partnerships.  About 71% of these investments were
recorded at cost; the equity method was used for the remainder.  Tax
expense is reduced in the year tax credits are generated.  The
investments generate future cash flows from tax credits and tax losses
of the partnerships.  The investments also generate cash flows from
the sales of the properties (estimated residual value).  For most
investments, tax credits are received over ten years.  A change in
accounting principle relating to investments made after May 19, 1995,
requires the use of the equity method when a company owns more than 5%
in a limited partnership investment.  Of the investments recorded at
cost, $66.0 million exceed this 5% level but were made before May 19,
1995.

On a quarterly basis, KLT Investments completes a valuation study of
its cost method investments in affordable housing by comparing the
cost of those properties to the total of projected residual value of
the properties and remaining tax credits to be received.  Estimated
residual values are based on studies performed by an independent firm.
Based on the latest valuation study for the years 2001 through 2005,
projected annual reductions of the book cost total $13 million, $9
million, $12 million, $8 million and $7 million, respectively.
Primarily all of the estimated reductions for the year ended December
31, 2001, are expected to be incurred in the third and fourth
quarters.  Even after these reductions, earnings from affordable
housing are expected to be positive for the next five years.

These projections are based on the latest information available but
the ultimate amount and timing of actual reductions made could be
significantly different from the above estimates.  Also, based on
preliminary external information, management believes that the assets
could be sold at a loss significantly lower than the accumulated
reductions discussed above.

KLT Inc. Earnings Overview
The following table and discussion highlight significant factors
affecting KLT Inc.'s contribution to consolidated EPS for the three
months ended and year to date June 30, 2001, and June 30, 2000.

                                     Three Months
                                         Ended             Year to Date
                                        June 30               June 30
                                    2001       2000       2001       2000
 Earnings per share (EPS) summary
  KLT Inc.
   SEL                            $  0.10    $  0.03    $  0.12    $  0.04
   DTI
     Operations subsequent
       to 2/8/01                    (0.12)         -      (0.18)         -
     Gain on early extinguishment
       of debt and equity losses
       prior to majority ownership      -      (0.07)      0.26      (0.14)
   KLT Gas
     Operations                         -       0.05       0.02       0.08
     Sale of Patrick Energy          0.19          -       0.19          -
   Realized loss on CellNet stock       -          -          -      (0.05)
   Other                             0.06       0.05       0.09       0.10
     KLT Inc. EPS                 $  0.23    $  0.06    $  0.50    $  0.03

On June 28, 2001, KLT Gas sold its 50% equity ownership in Patrick
Energy Corporation for $41.7 million resulting in a gain of $11.6
million, net of income taxes.

                                      27
<PAGE>

In February 2001, KLT Telecom increased its investment in DTI from 47%
to 84%, which required a change in the method of accounting from
equity to consolidation.  DTI's $0.26 EPS contribution prior to the
change in ownership resulted from the net impact of the gain from
early extinguishment of $193 million of senior discount notes by DTI
reduced by the losses previously recorded by DTI but not reflected by
KLT Telecom.  This gain is reflected in the consolidated financial
statements as an extraordinary item.

 KLT Inc. Revenues
 June 30, 2001 compared to June 30, 2000
                            Three Months
                                Ended         Year to Date
                                      (millions)
 DTI                          $   4.7            $   7.0
 SEL
   Electric - Retail             31.7               68.3
   Electric - Bulk Power Sales    9.4               24.8
   Gas                            0.3               10.9
 Gas                            (10.1)             (16.6)
   Total                       $ 36.0             $ 94.4

KLT Inc. acquired a majority ownership in SEL during the second
quarter of 2000 and in DTI in February 2001.  Prior to this, the
investments in SEL and DTI were recorded on an equity basis.  In the
second quarter of 2000, SEL was included in the Company's consolidated
financial statements from January 1, 2000, with the appropriate
adjustments to minority interest from January 1, 2000, through the
date of the acquisition.

SEL's retail revenues increased due to continued strong growth in the
electric energy management business.  Gas revenues decreased due to
the sale of KLT Gas properties in September and October 2000.

SEL has an option to purchase up to 270 megawatts of power at $21 per
mwh through the end of 2001.  Almost all of the bulk power sales
increase for the three months ended and year to date June 30, 2001,
compared to the same periods of 2000 is related to large block sales
of the power purchased under the option.  SEL also purchases energy in
the wholesale markets to meet its customers' energy needs.  On
occasion, SEL must purchase small blocks of power prior to the sales
contract in order to quote stable pricing to new potential customers.
Power purchased in excess of retail sales is sold in the wholesale
markets.

KLT Inc. Other Income and Expenses
The $5.5 million favorable change in KLT Inc.'s other expenses year to
date June 30, 2001, compared to the same period of 2000 was primarily
due to $4.8 million of realized losses on the write off of an
investment in CellNet in 2000.

KLT Inc. Taxes
KLT Inc. accrued tax credits of $6.4 million and $13.0 million for the
three months ended and year to date June 30, 2001, and $6.8 million
and $13.7 million for the three months ended and year to date June 30,
2000.  These tax credits are related to investments in affordable
housing limited partnerships and natural gas properties.

                                      28
<PAGE>

HSS Operations

HSS, an unregulated subsidiary, pursues business ventures primarily in
residential services.  In 2001, HSS increased its ownership to 72%
from 49% in RSAE, a consumer services company in Atlanta, Georgia,
which required a change in the method of accounting for RSAE from
equity to consolidation.  Additionally, Worry Free Service, Inc., a
wholly owned subsidiary of HSS, assists residential customers in
obtaining financing primarily for heating and air conditioning
equipment.

KCPL's investment in HSS was $46.9 million at June 30, 2001, and $46.3
million at December 31, 2000.  HSS' loss year to date June 30, 2001,
totaled $3.4 million ($0.05 per share) compared to a loss of $2.2
million ($0.04 per share) year to date June 30, 2000.  HSS' increased
loss year to date June 30, 2001, compared to 2000, was primarily due
to increased losses associated with property dispositions at RSAE.  At
June 30, 2001, the Company's accumulated losses were $21.4 million on
its investment in HSS.  HSS' consolidated assets increased to $56.1
million at June 30, 2001, compared to $25.3 million at December 31,
2000, reflecting the consolidation of RSAE in 2001.

Great Plains Power Incorporated (GPP)

GPP will focus on fossil fuel-fired electric generation in the central
part of the U.S.  In April 2001, KCPL entered into a $200 million,
five-year operating lease agreement for five combustion turbines that
would add 385 megawatts of peaking capacity in 2003.  Some or all of
those units may be transferred to GPP.  If transferred, a significant
portion of the output from some of these units may be sold to KCPL.

GPP announced an agreement with the boiler and air quality control
equipment vendor and construction firm, Babcock and Wilcox, and the
design and engineering firm, Burns and McDonnell, to conduct the
design and development study for Weston Bend I, a coal-fired plant
near Weston, Missouri. This agreement reunites the same team that
rebuilt Hawthorn No. 5 in 22 months rather than the industry norm of
36 months.  GPP is considering building, in the Midwest region, one to
five coal-fired plants ranging from 500 to 900 megawatts each.  Weston
Bend I is anticipated to be on line late in 2005.  All plants built by
GPP would be constructed to serve the wholesale market.

Other Consolidated Discussion

Significant Consolidated Balance Sheet Changes
     (June 30, 2001 compared to December 31, 2000)
  -  Cash and cash equivalents decreased $17.1 million due to KLT
     Telecom's payment of $39.9 million to increase its investment in DTI
     and $39.0 million working capital used for DTI's operations offset by
     $41.7 million proceeds from the sale of KLT Gas' 50% equity ownership
     in Patrick Energy, $20.8 million proceeds from the sale of securities
     and $3.8 million proceeds from the sale of KLT's equity ownership in
     the Downtown Hotel Group.
  -  Receivables increased $65.2 million primarily due to an increase in
     SEL's electric business and the seasonal nature of the utility
     business.
  -  Equity securities decreased $13.1 million primarily due to the sale
     by KLT Gas of $12.3 million of stock in Evergreen Resources, Inc.
  -  Other current assets increased $13.0 million primarily due to a
     $6.9 million increase in KCPL prepayments and $5.9 million because of
     FASB 133 - Accounting for Derivative Instruments and Hedging
     Activities, as amended.  (See Note 6 to the Consolidated Financial
     Statements)
  -  Telecommunications property of $384.8 million at June 30, 2001,
     resulted from KLT Telecom's purchase of an additional ownership
     interest in DTI; which required a change in the method of accounting
     for DTI from equity to consolidation.

                                      29
<PAGE>

  -  Gas property and investments decreased $18.7 million primarily due
     to the sale of KLT Gas' 50% equity ownership in Patrick Energy.
  -  Other nonutility property and investments decreased $15.2 million
     due to the sale by KLT of its $1.8 million investment in the Downtown
     Hotel Group, the sale of $7.3 million of various other investments and
     the exchange of $4.7 million preferred stock in an energy services
     company for an additional ownership in SEL.
  -  Combined electric utility plant and construction work in progress
     increased $116.2 million primarily due to expenditures of $63.5
     million at Hawthorn No. 5 to rebuild the boiler and $64.1 million for
     other utility capital expenditures.  The completion of rebuilding the
     boiler at Hawthorn No. 5 resulted in a transfer of $288.0 million from
     construction work in progress to electric plant.
  -  Goodwill increased $93.1 million due to increased goodwill at June
     30, 2001, of $66.6 million resulting from the consolidation of DTI and
     an additional $3.2 million in goodwill recorded because of increased
     ownership in SEL.  An additional $23.3 million of goodwill at June 30,
     2001, relates to the consolidation of RSAE, resulting from an
     increased ownership by HSS.
  -  Notes payable to banks of $22.3 million includes $18.7 million of
     short-term notes at June 30, 2001, relating to the consolidation of
     RSAE and $3.6 million relating to short-term notes held by DTI.
  -  Commercial paper increased $190.2 million due to the repayment of
     medium-term notes of $50 million and additional commercial paper
     borrowings as expenditures exceeded cash receipts.
  -  Current maturities of long-term debt increased $174.7 million,
     reflecting a $227.0 million increase in the current portion of KCPL's
     medium-term notes offset by $50.0 million of maturing medium-term
     notes.
  -  Other current liabilities increased $47.7 million because of $8.2
     million at June 30, 2001, due to the consolidation of RSAE, as well as
     $28.5 million because of the adoption of FASB 133 and $11.7 million at
     June 30, 2001, due to the consolidation of DTI.
  -  Deferred telecommunications revenue of $47.3 million at June 30,
     2001, is due to the consolidation of DTI.  This deferred revenue
     results from advances under contracts being deferred and then
     recognized on a straight-line basis as revenue over the terms of the
     contract.  In many cases, recognition does not start until completion
     of specified route segments.
  -  Capitalization increased by $45.6 million due to the consolidation
     of $200.6 million of DTI's senior discount notes at June 30, 2001, and
     $94.0 million of borrowings by KLT Inc.  These increases were offset
     by $227.0 million of medium-term notes transferred to current
     maturities and a loss of $10.9 million in other comprehensive income
     because of FASB 133.

Capital Requirements and Liquidity
The Company's liquid resources at June 30, 2001, included cash flows
from operations, $150 million of registered but unissued debt
securities, and $102 million of unused bank lines of credit.  The
unused lines consisted of KCPL's short-term bank lines of credit of
$71 million and KLT Inc.'s bank credit agreement of $31 million.

The Company generated positive cash flows from operating activities
year to date June 30, 2001.  Individual components of working capital
will vary with normal business cycles and operations, such as the
increase in receivables of $60.1 million year to date June 30, 2001,
and the reduction of accounts payable by $41.1 million for the same
period.  Also, the timing of the Wolf Creek outage affects the
refueling outage accrual, deferred income taxes and amortization of
nuclear fuel.

Cash used for investing activities varies with the timing of utility
capital expenditures and purchases of investments and nonutility
property.  Cash used for purchases of investments and nonutility
property increased year to date June 30, 2001, compared to the same
period of 2000 primarily reflecting increased investments by KLT
Telecom in DTI and additional telecommunications property partially
offset by investments in gas properties during the same period of
2000.  The note receivable from DTI

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<PAGE>

prior to majority ownership is reflected as an investing activity.
See additional discussion of DTI loan activity in the Telecommunications
section of the KLT Inc. Business overview.  These amounts were partially
offset by cash received from the sale of KLT Gas' equity position in
Patrick Energy Corporation and the sale of securities.

Cash from financing activities increased year to date June 30, 2001,
compared to the same period of 2000 primarily because short-term
borrowings increased $197.2 million year to date June 30, 2001,
compared to a $79.3 million decrease for the same period of 2000.
However, this change in short-term borrowings was partially offset by
a decrease in long-term debt issuances year to date June 30, 2001,
compared to the same period of 2000.

The Company expects to meet day-to-day operations, construction
requirements (excluding new generating capacity and telecommunications
construction) and dividends with internally-generated funds.  However,
the Company might not be able to meet these requirements with
internally-generated funds because of the effect of inflation on
operating expenses, the level of mwh sales, regulatory actions,
compliance with future environmental regulations and the availability
of generating units.  The funds needed to retire $747 million of
maturing debt through the year 2005 will be provided from operations,
refinancings and/or short-term debt.  The Company may issue additional
debt and/or additional equity to finance growth or take advantage of
new opportunities.

Environmental Matters
The Company's operations must comply with federal, state and local
environmental laws and regulations.  The generation and transmission
of electricity produces and requires disposal of certain products and
by-products, including polychlorinated biphenyl (PCBs), asbestos and
other hazardous materials.  The Federal Comprehensive Environmental
Response, Compensation and Liability Act (the Superfund law) imposes
strict joint and several liability for those who generate, transport
or deposit hazardous waste.  In addition, the current owner of
contaminated property, as well as prior owners since the time of
contamination, may be liable for cleanup costs.

The Company continually conducts environmental audits to detect
contamination and ensure compliance with governmental regulations.
However, compliance programs need to meet new and future environmental
laws, as well as regulations governing water and air quality,
including carbon dioxide emissions, nitrogen oxide emissions,
hazardous waste handling and disposal, toxic substances and the
effects of electromagnetic fields.  Therefore, compliance programs
could require substantial changes to operations or facilities (see
Note 4 to the Consolidated Financial Statements).

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This disclosure is for the interim periods presented and should be
read in connection with the quantitative and qualitative disclosures
about market risk included in our 2000 annual report on Form 10-K.

The consolidated company is exposed to market risks associated with
commodity price and supply, interest rates and equity prices.  Market
risks are handled in accordance with established policies, which may
include entering into various derivative transactions.  In the normal
course of business, the Company also faces risks that are either non-
financial or non-quantifiable.  Such risks principally include
business, legal, operational and credit risks and are not represented
in the following analysis.

Commodity Risk
KCPL has approximately 95% of its forecasted coal requirements under
contract for the year 2001.  A portion of these coal requirements are
subject to the market price of coal.  Because of the increased price
of coal, KCPL's coal commitments for 2001 have increased 11% to $39.9
million since the 2000 annual report on Form 10-K was filed.  A
hypothetical 10% increase in the price of coal would result in an
immaterial decrease in the year 2001 pretax earnings.

Equity Price Risk
An equity security, with a cost basis of $4.7 million, is considered a
trading security and as such has been recorded at its fair value of
$5.5 million at June 30, 2001.  This equity security is exposed to
price fluctuations in equity markets.  A hypothetical 10% decrease in
equity prices would result in an immaterial reduction in the fair
value of this equity security.

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<PAGE>

PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

EXHIBITS

Exhibit 10-a   Lease dated April 27, 2001 between Kansas City
               Power & Light Company and Wells Fargo Bank
               Northwest, National Association.

Exhibit 10-b   Amendment No. 4 to Credit Agreement dated as of
               April 30, 2001, among KLT Inc. and Bank One, NA,
               as Agent.

Exhibit 10-c   Amendment No. 2 dated June 4, 2001 to Credit
               Agreement among KLT Telecom Inc. and Digital
               Teleport, Inc.

REPORTS ON FORM 8-K

No reports on Form 8-K were filed with the Securities and
Exchange Commission during the six months ended June 30, 2001.

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                         SIGNATURES

     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 CITY POWER & LIGHT COMPANY

Dated:    August 9, 2001    By:  /s/Bernard J. Beaudoin
                                   (Bernard J. Beaudoin)
                                   (Chief Executive Officer)

Dated:    August 9, 2001    By:  /s/Neil Roadman
                                   (Neil Roadman)
                                   (Principal Accounting
				   Officer)