Aquila Energy Awarded U.K. Electricity Supply License.

LONDON--(BUSINESS WIRE)--Sept. 9, 1999--

Aquila Energy, the energy wholesaling and risk management and energy services subsidiary of UtiliCorp United, has been awarded a license to supply electricity in the U.K.

Aquila Energy is seeking to provide electricity wholesale and risk management services to retail electricity suppliers, following a similar approach to its current business in the U.K. gas market.

Jeff Michnowski, Managing Director of Aquila Energy in Europe, said, "Gaining an electricity supply license is a critical early step in the process of diversifying the mix of Aquila's U.K. business beyond natural gas."

The extent to which Aquila will be able to offer specific electricity products and services will depend on the pace of liberalization of the U.K. electricity market and, in particular, the implementation of the proposals being developed within the Review of Electricity Trading Arrangements (RETA).

"We know from Aquila's worldwide experience that true competition in energy markets can exist only if a level playing field is established," said Mr. Michnowski.

He added, "We welcome the initiatives that Ofgem and DTI are developing under the RETA proposals which, if implemented, will remove many of the barriers to a fully competitive electricity market that currently exist in the U.K."

Based in Kansas City, Mo., UtiliCorp United is a multinational energy company with $6.8 billion in assets and 12-month sales of $14.9 billion. It serves more than 4.5 million customers in the United States, Canada, the United Kingdom, New Zealand and Australia, where it is the largest operator of energy networks.

Background:

1.   In the U.K., Aquila Energy Limited (formerly United Gas Limited)
     is the leading independent provider of risk management,
     transportation, gas supply, and balancing services to retail gas
     supply companies. The company also operates an energy trading
     business, and is developing a $20 million gas storage facility.

2.   UtiliCorp United is a multinational energy company based in
     Kansas City, Missouri, with over 4.5 million commercial,
     industrial and domestic consumers in the U.S., Canada, U.K., New
     Zealand and Australia, US$6.8 billion of assets, and 12-month
     revenues of US$14.9 billion.

3.   Aquila Energy has played a central role in the liberalization of
     energy markets in the U.S., where it is the 2nd-largest wholesale
     marketer of natural gas and the 3rd-largest power marketer, as
     well as in the U.K., where it is a leading player in the natural
     gas market.

4.   Under the Electricity Act of 1989, the Director General of
     Electricity Supply can grant licenses to companies who wish to
     supply electricity if they can demonstrate they have the
     resources necessary to undertake licensed activities.