Even utility companies can’t hide from the gloomy economy.

Great Plains Energy, the parent company of Kansas City Power & Light, is cutting dividends and reducing the earnings guide for 2009. The company blames lower demand for electricity and higher financing costs for the decision.

The quarterly dividend was reduced by almost 21 cents per share.

The board’s said the decision to reduce the dividend is prudent in order to strengthen earnings, cash flow and credit position to be in a position to better weather market conditions, the company said in a press release.

Great Plains said cutting the dividend would give it $100 million that can be reinvested in the utility and deliver long-term benefits to shareholders. The new dividend will be paid March 20 to shareholders of record on Feb. 27.

In after-hours trading on Tuesday, shares were down 18 percent to $16.06 per share. The company had previously expected earnings of $1.30 to $1.60 per share. Wednesdays figures were more like $1.10 to $1.40 per share.

The company is building another power plant, Iatan II, near Weston, Mo., for $1.9 billion. That coupled with the lower demand for the utility will be a significant impact for the company in 2009, the press release said.

Previously earnings, that ended Dec. 31, were $6.6 million compared to $47.7 million for the same time in 2007.