Evergy Kansas Central (EVRG)

Risks

• Prices are established by regulators and may not be sufficient to recover costs or provide for a return on investment.
• Legislative and regulatory requirements may increase costs and result in compliance penalties.
• Costs to comply with environmental laws and regulations, including those relating to air and water quality, waste management and hazardous substance disposal, protected natural resources and health and safety, are significant and may adversely impact operations and financial results.
• Financial market disruptions or declines in the Evergy Companies' credit ratings may increase financing costs and limit access to the credit markets, which may adversely affect liquidity and financial results.
• Evergy is a holding company and relies on the earnings of its subsidiaries to meet its financial obligations.
• Increasing costs associated with defined benefit retirement and postretirement plans, health care plans and other employee benefits could adversely affect Evergy's financial position and liquidity.
• The Evergy Companies are subject to commodity and other risks associated with energy markets.
• Tax legislation and an inability to utilize tax credits could adversely impact results of operations, financial position and liquidity.
• The anticipated benefits of the Evergy Companies' strategy may not be realized.
• The price of Evergy common stock may experience volatility.
• Changes in electricity consumption could have a material adverse effect on Evergy's results of operations, financial position and cash flows.
• Weather is a major driver of the results of operations, financial position and cash flows of the Evergy Companies and the Evergy Companies are subject to risks associated with climate change.
• Operational risks may adversely affect the Evergy Companies.
• Physical and cybersecurity breaches, criminal activity, terrorist attacks, acts of war and other disruptions to facilities or information technology infrastructure could interfere with operations, expose the Evergy Companies or their customers or employees to a risk of loss, expose the Evergy Companies to legal or regulatory liability and cause reputational and other harm.
• The cost and schedule of capital projects may materially change and expected performance may not be achieved.
• Failure to attract and retain an appropriately qualified workforce or to maintain satisfactory collective bargaining agreements could negatively impact the Evergy Companies' business and operations and adversely impact the Evergy Companies' results of operations, financial position and cash flows.
• The Evergy Companies are exposed to risks associated with the ownership and operation of a nuclear generating unit, which could adversely impact the Evergy Companies' business and financial results.
• The structure of the regional power market in which the Evergy Companies operate could have an adverse effect on their results of operations, financial position and cash flows.
• The outcome of legal proceedings cannot be predicted. An adverse finding could have a material adverse effect on the Evergy Companies' results of operations, financial position and cash flows.
• The spread of COVID-19 and resulting impact on business and economic conditions could continue to negatively affect the Evergy Companies' business and operations.