UtiliCorp Sees Formation of Pulse Energy in Australia as

 Important Step to Capture Retail Market Share  
Business Editors  
KANSAS CITY, Mo.--(BUSINESS WIRE)--June 30, 2000--Continuing to 
leverage its investments in growing international energy networks, 
UtiliCorp United (NYSE:UCU) today said that Melbourne-based United 
Energy Limited, managed and 34 percent owned by UtiliCorp, has closed 
its transaction with Shell Australia, Woodside Energy and Ikon Energy 
to establish Pulse Energy, a joint energy marketing venture in 
UtiliCorp holds a 50 percent economic interest in Ikon Energy, a 
gas retailer which is managed by United Energy.  
"Pulse Energy will retail electricity and gas to more than 1.1 
million electricity and gas customers in Victoria, Australia," said 
UtiliCorp President and Chief Operating Officer Robert K. Green, "and 
it has the potential to access another 9 million energy customers in 
the country's eastern states and in South Australia."  
The joint venture positions UtiliCorp and its Pulse Energy 
partners to capitalize on the ongoing deregulation of the national 
Australian electricity and gas market, Green said. United Energy and 
Ikon have a combined 50 percent ownership position in the new joint 
"With the retail energy markets becoming contestable next year, 
Pulse Energy will provide Australia's first large-scale combination of 
electricity and gas services," Green said.  
Based in Kansas City, UtiliCorp United is an international 
electric and gas company with energy customers and operations across 
the U.S. and in Canada, the United Kingdom, Scandinavia, Germany, 
Spain, New Zealand and Australia. At March 31, 2000, UtiliCorp had 
total assets of $7.5 billion and 12-month sales of $19.6 billion. 
Additional information is available on the World Wide Web at 
"Safe Harbor" Statement under the Private Securities Litigation 
Reform Act of 1995: Statements in this press release regarding 
UtiliCorp United Inc.'s business which are not historical facts are 
"forward-looking statements" that involve risks and uncertainties and 
could cause actual results to differ from those contained in the 
forward-looking statements.  
Note to editors: The following news release was issued in 
Melbourne, Australia, Thursday, June 29. All financials below are 
expressed in Australian dollars.  
United Energy announced today it had closed the transaction with 
Shell Australia, Woodside Energy and Ikon Energy to establish Pulse 
Energy -- a joint energy marketing venture.  
Pulse Energy will retail electricity and gas to more than 1.1 
million electricity and gas customers in Victoria, with the potential 
to access a further 9 million energy customers in the eastern states 
and South Australia.  
United Energy will contribute its electricity retail customers in 
return for $A350 million. It will invest $A118 million into Pulse 
Energy for a 25% shareholding. Energy Partnership (Ikon Energy), which 
is owned by United Energy's cornerstone shareholders (AMP and 
UtiliCorp), will contribute its gas retail customers to Pulse Energy 
and will also have a 25% shareholding. Shell Australia will have a 40% 
shareholding and Woodside Energy a 10% shareholding.  
The transaction results in United Energy receiving net proceeds of 
approximately $A232 million. Initially this will be used to retire 
debt and to position the company to take advantage of future growth 
opportunities. United Energy will record a one-time abnormal gain of 
approximately $A83 million on the sale of its retail business to Pulse 
United Energy will provide Pulse Energy with e-commerce based 
customer support services and information technology services, under a 
seven-year contract, starting in 2001. The contract is projected, 
based on expected customer growth, to generate revenue of $A435 
million. Under a separate two-year agreement United Energy will 
provide corporate support services such as accounting, treasury, 
regulatory and human resources. This contract produces annual revenue 
of $A1 million.  
EdgeCap, a new electricity and gas merchant business proposed to 
be formed by United Energy, Shell Australia and Woodside Energy, will 
provide risk management and hedging services to Pulse Energy.  
EdgeCap will draw on the substantial trading and risk management 
skills of United Energy, and access to significant gas resources held 
by Shell and Woodside.  
United Energy Background  
United Energy is one of Australia's fastest growing energy 
companies. It serves approximately 560,000 electricity customers in 
Melbourne's south, east and the Mornington Peninsula and 520,000 gas 
customers in Melbourne's north and east.  
United Energy buys and sells electricity in the wholesale market, 
trades related commodities, and sells risk management products. United 
Energy also offers energy retailers a range of back office services 
including call center, metering, billing and account collection 
functions. United Energy's telecommunications business has developed 
fiber optic networks in Melbourne, Sydney and Brisbane.  
United Energy is listed on the Australian Stock Exchange and has 
more than 52,000 predominantly Australian domiciled shareholders. AMP 
and UtiliCorp own 57.8% of United Energy.  
Pulse Energy is set to be Australia's most significant and 
innovative energy retailer as a result of combining the strengths of 
leading energy companies.  
United Energy Ltd., Energy Partnership (Ikon Energy Pty Ltd.), 
Shell Australia Ltd., and Woodside Energy Ltd. have formed Pulse 
Energy. Pulse Energy will initially service more than one million 
electricity and gas customers in Victoria, with the aim of rapidly 
becoming a national energy player.  
With retail energy markets becoming progressively contestable from 
2001, Pulse Energy will have access to potentially 10 million energy 
customers in eastern Australia, and will provide Australia's first 
large-scale combination of electricity and gas services.  
Pulse Energy will provide smart efficiencies for customers and 
will deliver innovations such as e-commerce facilities including web- 
based bill payments. Additionally Fly Buys points will also be offered 
to residential customers.  
Pulse Energy combines United Energy's existing customer base and 
extensive operating and marketing expertise with Shell's considerable 
retail strengths, and the vast gas resources of both Shell and 
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