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Collaboration Agreement

COLLABORATION AGREEMENT

This Agreement is executed this 19th day of March, 2007, by and between the Kansas City Power & Light Company (KCPL), the Sierra Club, and the Concerned Citizens of Platte County, Inc. (CCPC) (collectively, the Parties), as set forth below.

WHEREAS, KCPL owns and operates an electric generating plant known as the Iatan Generating Station located in Platte County, Missouri;

WHEREAS, KCPL applied for a Prevention of Significant Deterioration (PSD) Permit to Construct to undertake work at the Iatan Generating Station, including work on the existing electrical utility steam generating unit (Iatan Unit 1) to install new pollution control systems, to set a permit limit on the heat input rate of Iatan Unit 1, and to construct at the Iatan Generating Station a second pulverized coal-fired boiler and associated pollution control equipment (Iatan Unit 2) (collectively the Iatan Project);

WHEREAS, the Missouri Department of Natural Resources (MDNR) issued a PSD Permit to Construct for the Iatan Project on January 31, 2006, Permit No. 012006-019 (the Iatan PSD Permit);

WHEREAS, on March 2, 2006, the Sierra Club filed a Complaint with the Missouri Air Conservation Commission (ACC) to appeal from MDNRs issuance of the Iatan PSD Permit in ACC Appeal No. 06-0251, urging, among other things, that the MDNR require more stringent emissions limits for certain emissions from Iatan Units 1 and 2;

WHEREAS, the Parties also have disputes regarding ratemaking proceedings originally filed before the Missouri Public Service Commission (MPSC) and the Kansas Corporation Commission (KCC) and now under appeal in the respective jurisdictions;

WHEREAS, on March 1, 2007, KCPL filed a federal declaratory judgment action against the Sierra Club in the United States District Court for the Western District of Missouri;

WHEREAS, KCPL has made an application to construct a combustion by-product landfill to support the on-going operation of the Iatan units after the installation of the new pollution control facilities, and such application is currently under review by the MDNR;

WHEREAS, KCPL also owns and operates an electric generating plant known as the La Cygne Generating Station located in Linn County, Kansas, consisting of two units (La Cygne Unit 1 and La Cygne Unit 2), and those units are the subject of discussions between KCPL and the Kansas Department of Health and Environment (KDHE) regarding the emissions limits to be set for those units for certain emissions pursuant to the Best Available Retrofit Technology (BART) regulations;

WHEREAS, the Parties desire to enter into this Collaboration Agreement (Agreement) to resolve all of these disputes or potential disputes such that the Iatan Project may move forward

without delay and the ratemaking proceedings may proceed without the Sierra Clubs and CCPCs further objections;

WHEREAS, the Parties commit to work collaboratively, in a positive manner, with a goal to achieve a twenty percent reduction by 2020 of the 2006 carbon dioxide emissions levels from KCPLs overall operations;

WHEREAS, KCPL desires to continue to build on its significant investments in energy efficiency, renewable energy, and emissions control;

NOW, THEREFORE, in consideration of the foregoing and of the mutual promises contained in this Agreement and intending to be legally bound, the Parties agree as follows:

Section I. Changes to be Incorporated into Iatan PSD Permit.

The Parties agree to proposed changes to the emissions limits for certain emissions set forth in the Iatan PSD Permit, including nitrogen oxides (NO_x), sulfur dioxide (SO₂), sulfuric acid mist (SAM), and opacity. The emissions limits will be incorporated into an administrative amendment to the Iatan PSD Permit as set forth in Exhibit 1 attached to this Agreement and incorporated herein by this reference as if set forth fully herein. KCPL agrees not to seek to increase the limits for emissions of NO_x, SO_2,SAM, stack particulate matter, and opacity from the Iatan Generating Station set forth in Exhibit 1 while this Agreement is in effect.

Section II. Emissions Limits to be Included in Proposed Consent Agreement Between KDHE and KCPL For the La Cygne Generating Station.

No later than December 31, 2007, KCPL will submit to KDHE proposed Unit 1 and Unit 2 average limits for certain emissions emitted at the La Cygne Generating Station at limits lower than KCPL asserts would otherwise be required by presumptive BART limits, including emissions limits for NO_x, SO₂, filterable Particulate Matter less than 10 microns in size (filterable PM₁₀) and total Particulate Matter less than 10 microns in size (total PM₁₀) to become effective when compliance with BART regulations is first required. KCPL agrees to support the inclusion of these limits in the Kansas State Implementation Plan. KCPL agrees to use its best efforts to install pollution control technologies that would allow KCPL to reduce its emissions of NO_x, SO₂, filterable PM_10,and total PM₁₀from La Cygne Units 1 and 2 prior to the date that its compliance with the BART regulations is required and at the latest by June 1, 2015. KCPL agrees to issue the request(s) for proposals (RFP) for pollution control technologies to be installed at the La Cygne Generating Station pursuant to this Agreement on or before December 31, 2008, and agrees that the RFP(s) will request that construction commence on or before December 31, 2010. The emissions limits that KCPL agrees to seek in the proposed consent agreement are set forth in Exhibit 2 attached to this Agreement and incorporated herein by this reference as if set forth fully herein.

Section III. Collaboration on Carbon Dioxide Offsets, Energy Efficiency and Community Investment.

KCPL will seek regulatory approval from the MPSC and/or the KCC, to the extent necessary, to undertake Renewable Energy, Energy Efficiency, and other projects that the Parties have estimated will offset the annual carbon dioxide (CO₂) emissions generated from KCPLs Iatan Unit 2 of 6,012,645 tons as set forth in Exhibit 3, the Settlement Sheet CO₂ Calculations which is attached to and incorporated by this reference in this Agreement as if set forth fully herein. The Parties particular agreements regarding CO₂ emissions are set forth below: