KANSAS CITY, KAN. ? A former Westar Energy Inc. executive testified Friday that a plan to push forward with a spin-off company was intended to reduce the utility’s debt, not line his pockets.

Douglas Lake, a former executive vice president for the state’s largest electric utility, said Westar pursued a rights offering for subsidiary Westar Industries because the Kansas Corporation Commission had asked the parent company to reduce its debt load.

The rights offering was part of a plan to reduce debt by $1.2 billion, Lake testified under redirect examination by his attorney, Ed Little.

Lake and former Westar chief executive David Wittig are on trial in federal court for what a 40-count indictment alleges was a scheme to loot the company.

The planned creation of Westar Industries was previously part of a merger with Public Service Co. of New Mexico. Westar planned to merge its regulated utility operations with the New Mexico utility and spin off its unregulated assets into Westar Industries.

The KCC, however, rejected the plan.

The government alleges that Wittig and Lake would have made millions on the merger through provisions in their employment contracts. Prosecutors also believe Wittig and Lake would have saddled the regulated utility with all the debt and taken new positions and a substantial ownership stake in Westar Industries.

The defense contends that the deal would have been good for shareholders and that there was nothing improper about it.

After the KCC’s rejection, Westar continued to work on issuing shares of Westar Industries. The government considers that a move to circumvent regulators, but Lake testified Friday that the spin-off by itself would not have triggered change-in-control payments to him and to Wittig.

Lake, the only defendant to testify, has been on the stand since Nov. 26. He is expected to finish testimony Monday morning, which will conclude the presentation of evidence.

U.S. District Judge Julie Robinson said the jury will be charged that afternoon, with closing arguments coming Tuesday.