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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

[X]☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 2017

2021
or
[  ]☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from _______to_______

evrg-20211231_g1.jpg
Exact name of registrant as specified in its charter,
Commissionstate of incorporation, address of principalI.R.S. Employer
File Numberexecutive offices and telephone numberIdentification Number
001-32206GREAT PLAINS ENERGY INCORPORATED43-1916803
(A Missouri Corporation)
1200 Main Street
Kansas City, Missouri  64105
(816) 556-2200
000-51873KANSAS CITY POWER & LIGHT COMPANY44-0308720
(A Missouri Corporation)
1200 Main Street
Kansas City, Missouri  64105
(816) 556-2200
Each of the following classes or series of securities registered pursuant to Section 12(b) of the Act is registered on the New York Stock Exchange:
RegistrantTitle of each class
Great Plains Energy IncorporatedCommon Stock, without par value
Securities registered pursuant to Section 12(g) of the Act: Kansas City Power & Light Company Common Stock without par value.


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Exact name of registrant as specified in its charter,
Commissionstate of incorporation, address of principalI.R.S. Employer
File Numberexecutive offices and telephone numberIdentification Number
001-38515EVERGY, INC.82-2733395
(a Missouri corporation)
1200 Main Street
Kansas City, Missouri 64105
(816) 556-2200
001-03523EVERGY KANSAS CENTRAL, INC.48-0290150
(a Kansas corporation)
818 South Kansas Avenue
Topeka, Kansas 66612
(785) 575-6300
000-51873EVERGY METRO, INC.44-0308720
(a Missouri corporation)
1200 Main Street
Kansas City, Missouri 64105
(816) 556-2200
      Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Evergy, Inc. common stockEVRGNew York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: Evergy Kansas Central, Inc. Common Stock $0.01 par value and Evergy Metro, Inc. Common Stock without par value.

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Great Plains Energy IncorporatedYesXNo_Kansas City Power & Light CompanyYes_NoX
Evergy, Inc.Yes☒No☐
Evergy Kansas Central, Inc.Yes☐No☒
Evergy Metro, Inc.Yes☐No☒
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Great Plains Energy IncorporatedYes_NoXKansas City Power & Light CompanyYes_NoX
Evergy, Inc.Yes☐No☒
Evergy Kansas Central, Inc.Yes☐No☒
Evergy Metro, Inc.Yes☐No☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Great Plains Energy IncorporatedYesXNo_Kansas City Power & Light CompanyYesXNo_
Evergy, Inc.Yes☒No☐
Evergy Kansas Central, Inc.Yes☒No☐
Evergy Metro, Inc.Yes☒No☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Great Plains Energy IncorporatedYesXNo_Kansas City Power & Light CompanyYesXNo_
Evergy, Inc.Yes☒No☐
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to the Form 10-K.
Great Plains Energy IncorporatedEvergy Kansas Central, Inc.XYesKansas City Power & Light Company☒XNo☐
Evergy Metro, Inc.Yes☒No☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large"large accelerated filer,” “accelerated" "accelerated filer,” “smaller" "smaller reporting company,”" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Great Plains Energy IncorporatedLarge accelerated filerXAccelerated filer_
Evergy, Inc.Large Accelerated Filer☒Accelerated Filer☐Non-accelerated filerFiler_☐Smaller reporting companyReporting Company_☐Emerging Growth Company☐
Emerging growth company_
Evergy Kansas City Power & LightCentral, Inc.Large Accelerated Filer☐Accelerated Filer☐Non-accelerated Filer☒Smaller Reporting Company☐Large accelerated filerEmerging Growth Company_☐Accelerated filer_
Non-accelerated filerXSmaller reporting company_
Evergy Metro, Inc.Large Accelerated Filer☐Accelerated Filer☐Non-accelerated Filer☒Smaller Reporting Company☐Emerging growth companyGrowth Company_☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
Evergy, Inc.Yes☒No☐
Evergy Kansas Central, Inc.Yes☐No☒
Evergy Metro, Inc.Yes☐No☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Great Plains Energy IncorporatedYes_No_Kansas City Power & Light CompanyYes_No_
Evergy, Inc.☐
Evergy Kansas Central, Inc.☐
Evergy Metro, Inc.☐

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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Great Plains Energy IncorporatedYes_NoXKansas City Power & Light CompanyYes_NoX
Evergy, Inc.Yes☐No☒
The aggregate market value of the voting and non-voting common equity held by non-affiliates of Great Plains Energy Incorporated (based on the closing price of its common stock on the New York Stock Exchange on June 30, 2017) was approximately $6,311,042,442. All of the common equity of Kansas City Power & Light Company is held by Great Plains Energy Incorporated, an affiliate of Kansas City Power & Light Company.
Evergy Kansas Central, Inc.Yes☐No☒
On February 16, 2018, Great Plains Energy Incorporated had 215,665,193 shares of common stock outstanding. 
On February 16, 2018, Kansas City Power & Light Company had one share of common stock outstanding and held by Great Plains Energy Incorporated.Evergy Metro, Inc.Yes☐No☒
The aggregate market value of the voting and non-voting common equity held by non-affiliates of Evergy, Inc. (based on the closing price of its common stock on the New York Stock Exchange on June 30, 2021) was approximately $13,704,717,320. All of the common equity of Evergy Kansas Central, Inc. and Evergy Metro, Inc. is held by Evergy, Inc.

On February 18, 2022, Evergy, Inc. had 229,311,689 shares of common stock outstanding.

On February 18, 2022, Evergy Kansas Central, Inc. and Evergy Metro, Inc. each had 1 share of common stock outstanding and held by Evergy, Inc.
Evergy Kansas City Power & Light Company meetsCentral, Inc. and Evergy Metro, Inc. meet the conditions set forth in General Instruction (I)(1)(a) and (b) of Form 10-K and isare therefore filing this Form 10-K with the reduced disclosure format.
Documents Incorporated by Reference
Portions of the 2018 annual meeting proxy statement of Great Plains Energy Incorporated to be filed with the Securities and Exchange Commission are incorporated by reference in Part III of this report.

Documents Incorporated by Reference


TablePortions of Contents


the 2022 annual meeting proxy statement of Evergy, Inc. to be filed with the Securities and Exchange Commission are incorporated by reference in Part III of this report.
This combined annual report on Form 10-K is provided by the following registrants: Evergy, Inc. (Evergy), Evergy Kansas Central, Inc. (Evergy Kansas Central) and Evergy Metro, Inc. (Evergy Metro) (collectively, the Evergy Companies). Information relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other registrants.



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TABLE OF CONTENTS
Page

Number
3
5
PART I
Item 1.
7
Item 1A.
1216
Item 1B.
28
Item 2.
29
Item 3.
3032
Item 4.
3032
PART II
Item 5.
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
3133
Item 6.
3232
Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
3234
Item 7A.
5359
Item 8.
5662
Item 9.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
121153
Item 9A.
121153
Item 9B.
125157
Item 9C.
157
PART III
Item 10.
125157
Item 11.
125158
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
126158
Item 13.
126159
Item 14.
127159
PART IV
Item 15.
128161
147184



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This combined annual report on Form 10-K is being filed by Great Plains Energy Incorporated (Great Plains Energy) and Kansas City Power & Light Company (KCP&L). KCP&L is a wholly owned subsidiary of Great Plains Energy and represents a significant portion of its assets, liabilities, revenues, expenses and operations. Thus, all information contained in this report relates to, and where required is filed by, Great Plains Energy. Information that is specifically identified in this report as relating solely to Great Plains Energy, such as its financial statements and all information relating to Great Plains Energy's other operations, businesses and subsidiaries, including KCP&L Greater Missouri Operations Company (GMO), does not relate to, and is not filed by, KCP&L. KCP&L makes no representation as to that information. Neither Great Plains Energy nor its other subsidiaries have any obligation in respect of KCP&L's debt securities and holders of such securities should not consider Great Plains Energy's or its other subsidiaries' financial resources or results of operations in making a decision with respect to KCP&L's debt securities. Similarly, KCP&L has no obligation in respect of securities of Great Plains Energy or its other subsidiaries.
CAUTIONARY STATEMENTS REGARDING CERTAIN FORWARD-LOOKING INFORMATION
Statements made in this reportdocument that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to the anticipated merger transaction of Great Plains Energy and Westar Energy, Inc. (Westar),Evergy's strategic plan, including, without limitation, those that relaterelated to the expected financial and operational benefits of the merger to the companies and their shareholders (including cost savings, operational efficiencies and the impact of the anticipated merger on earnings per share), the expected timing of closing,share, dividend, operating and maintenance expense and capital investment goals; the outcome of legislative efforts and regulatory proceedings,and legal proceedings; future energy demand; future power prices; plans with respect to existing and potential future generation resources; the availability and cost estimates of capital projects, dividend growth, share repurchases, balance sheetgeneration resources and credit ratings, rebates to customers, employee issuesenergy storage; target emissions reductions; and other matters relating to expected financial performance or affecting future operations. Forward-looking statements are often accompanied by forward-looking words such as "anticipates," "believes," "expects," "estimates," "forecasts," "should," "could," "may," "seeks," "intends," "proposed," "projects," "planned," "target," "outlook," "remain confident," "goal," "will" or other words of similar meaning. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking information.
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Great Plains Energy and KCP&Lthe Evergy Companies are providing a number of importantrisks, uncertainties and other factors that could cause actual results to differ materially from the provided forward-looking information. These importantrisks, uncertainties and other factors include: futureinclude, but are not limited to: economic and weather conditions in regional, national and international markets and their effectsany impact on sales, prices and costs; prices and availability of electricity in regional and national wholesale markets; market perception of the energy industry, Great Plains Energy, KCP&L and Westar; changes in business strategy operations or development plans;operations; the outcomeimpact of contract negotiations for goods and services; effects of current or proposedfederal, state and federallocal political, legislative, judicial and regulatory actions or developments, including but not limited to, deregulation, re-regulation, securitization and restructuring of the electric utility industry; decisions of regulators regarding, among other things, customer rates thatand the Companies can charge for electricity; adverseprudency of operational decisions such as capital expenditures and asset retirements; changes in applicable laws, regulations, rules, principles or practices, or the interpretations thereof, governing tax, accounting and environmental matters, including but not limited to, air and water quality;quality and waste management and disposal; the impact of climate change, including increased frequency and severity of significant weather events and the extent to which counterparties are willing to do business with, finance the operations of or purchase energy from the Evergy Companies due to the fact that the Evergy Companies operate coal-fired generation; prices and availability of electricity in wholesale markets; market perception of the energy industry and the Evergy Companies; the impact of the Coronavirus (COVID-19) pandemic on, among other things, sales, results of operations, financial condition, liquidity and cash flows, and also on operational issues, such as supply chain issues and the availability and ability of the Evergy Companies' employees and suppliers to perform the functions that are necessary to operate the Evergy Companies; changes in the energy trading markets in which the Evergy Companies participate, including retroactive repricing of transactions by regional transmission organizations (RTO) and independent system operators; financial market conditions and performance, including but not limited to, changes in interest rates and credit spreads and in availability and cost of capital and the effects on derivatives and hedges, nuclear decommissioning trust and pension plan assets and costs; impairments of long-lived assets or goodwill; credit ratings; inflation rates; the transition to a replacement for the London Interbank Offered Rate (LIBOR) benchmark interest rate; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of physical and cybersecurity breaches, criminal activity, terrorist acts, including, but not limitedattacks and other disruptions to cyber terrorism;the Evergy Companies' facilities or information technology infrastructure or the facilities and infrastructure of third-party service providers on which the Evergy Companies rely; ability to carry out marketing and sales plans; weather conditions including, but not limited to, weather-related damage and their effects on sales, prices and costs; cost, availability, quality and deliverabilitytimely provision of fuel; the inherent uncertainties in estimating the effects of weather, economic conditionsequipment, supplies, labor and other factors on customer consumption and financial results;fuel; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; delays in the anticipated in-service dates and cost increases of generation, transmission, distribution or other projects; Great Plains Energy's and Westar'sthe Evergy Companies' ability to successfully manage their transmission and integrate their respectivedistribution development plans and transmission joint ventures; the inherent risks associated with the ownership and operation of a nuclear facility, including but not limited to, environmental, health, safety, regulatory and financial risks; workforce risks, including but not limitedthose related to increasedthe Evergy Companies' ability to attract and retain qualified personnel, maintain satisfactory relationships with their labor unions and manage costs of, or changes in, retirement, health care and other benefits; the ability of Great Plains Energydisruption, costs and Westar to obtain the regulatory approvals necessary to complete the anticipated mergeruncertainties caused by or the imposition of adverse conditions or costs in connection with obtaining regulatory approvals; the risk that a conditionrelated to the closingactions of the anticipated merger may not be satisfiedindividuals or entities, such as activist shareholders or special interest groups, that the anticipated merger may failseek to close; the outcome of any legal proceedings, regulatory proceedingsinfluence Evergy's strategic plan, financial results or enforcement matters that may be instituted relating to the anticipated merger; the costs incurred to consummate the anticipated merger;operations; the possibility that strategic initiatives, including mergers, acquisitions and divestitures, and long-term financial plans, may not create the value that they are expected value creation from the anticipated merger will not be realized,to achieve in a timely manner or will not be realized within the expected time period;at all; difficulties related to the integration of the two companies; the credit ratings of the combined company

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following the anticipated merger; disruption from the anticipated merger making it more difficult to maintainin maintaining relationships with customers, employees, regulators or suppliers; the diversion of management time and attention on the anticipated merger; and other risks and uncertainties.


This list of factors is not all-inclusive because it is not possible to predict all factors. Part I Item 1A Risk Factors includedYou should also carefully consider the information contained in this report should be carefully read for further understanding of potential risks for each of Great Plains Energy and KCP&L. Other sections of this report andour other periodic reports filed by each of Great Plains Energy and KCP&Lfilings with the Securities and Exchange Commission (SEC) should also be read for more information regarding risk factors.. Additional risks and uncertainties are discussed in Part I, Item 1A - Risk Factors in this annual report on Form 10-K, and from time to time in current reports on Form 8-K and quarterly reports on Form 10-Q filed by the Evergy
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Companies with the SEC. Each forward-looking statement speaks only as of the date of the particular statement. Great Plains Energy and KCP&LThe Evergy Companies undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.otherwise, except as required by law.

AVAILABLE INFORMATION
The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at sec.gov. Additionally, information about the Evergy Companies, including their combined annual reports on Form 10-K, combined quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed with the SEC, is also available through the Evergy Companies' website, http://investors.evergy.com. Such reports are accessible at no charge and are made available as soon as reasonably practical after such material is filed with or furnished to the SEC.
Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations section of their website, http://investors.evergy.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on the Evergy Companies' website is not part of this document.
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GLOSSARY OF TERMS
The following is a glossary of frequently used abbreviations or acronyms that are found throughout this report.
Abbreviation or AcronymDefinition
AAOAccounting authority order
ACEAffordable Clean Energy
AEPAmerican Electric Power Company, Inc.
AFUDCAllowance for funds used during construction
AMTAlternative Minimum Tax
AOCIAccumulated other comprehensive income
AROsAsset retirement obligations
Abbreviation or AcronymASUDefinition
AFUDCAllowance for Funds Used During Construction
Amended Merger AgreementAmended and Restated Agreement and Plan of Merger dated as of July 9, 2017 by and among Great Plains Energy, Westar, Monarch Energy Holding, Inc. and King Energy, Inc.
AROAsset Retirement Obligation
ASUAccounting Standards Update
CCRsBluescapeCoal combustion residualsBluescape Energy Partners, LLC
Clean Air ActBSERBest system of emission reduction
CAAClean Air Act Amendments of 1990
CCRsCoal combustion residuals
CO2
Carbon dioxide
CompanyCOLIGreat Plains Energy Incorporated and its consolidated subsidiariesCorporate-owned life insurance
CompaniesCOVID-19Great Plains Energy Incorporated and its consolidated subsidiaries and KCP&L and its consolidated subsidiariesCoronavirus
DOECPPDepartment of EnergyClean Power Plan
DOJCSAPRDepartment of JusticeCross-State Air Pollution
ECACWAEnergy Cost AdjustmentClean Water Act
EIRREnvironmental Improvement Revenue Refunding
Electric UtilityELGElectric utility segmentEffluent limitations guidelines
EPAEnvironmental Protection Agency
EPSEarnings (loss) per common share
ERISA
ERISAEmployee Retirement Income Security Act of 1974, as amended
ERSPEarnings Review and Sharing Plan
EvergyEvergy, Inc. and its consolidated subsidiaries
Evergy BoardEvergy Board of Directors
Evergy CompaniesEvergy, Evergy Kansas Central, and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group
Evergy Kansas CentralEvergy Kansas Central, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Kansas SouthEvergy Kansas South, Inc., a wholly-owned subsidiary of Evergy Kansas Central
Evergy MetroEvergy Metro, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Missouri WestEvergy Missouri West, Inc., a wholly-owned subsidiary of Evergy
Evergy Transmission CompanyEvergy Transmission Company, LLC
Exchange ActThe Securities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
FERCFebruary 2021 winter weather eventThe Significant winter weather event in February 2021 that resulted in extremely cold temperatures over a multi-day period across much of the central and southern United States
FERCFederal Energy Regulatory Commission
FCCFMBsThe Federal Communications CommissionFirst Mortgage Bonds
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GAAPAbbreviation or AcronymDefinition
GAAPGenerally Accepted Accounting Principles
GMOGHGKCP&L Greater Missouri Operations Company, a wholly owned subsidiary of Greenhouse gas
Great Plains Energy
GP StarGP Star, Inc.
GPETHCGPE Transmission Holding Company LLC, a wholly owned subsidiary of Great Plains Energy
Great Plains EnergyGreat Plains Energy Incorporated and its consolidated subsidiaries
Great PlainsJECJeffrey Energy BoardGreat Plains Energy Board of DirectorsCenter
HSRKCCHart-Scott-Rodino
HoldcoMonarch Energy Holding, Inc., a Missouri corporation
KCCThe State Corporation Commission of the State of Kansas
KCP&LKDHEKansas City PowerDepartment of Health & Light Company, a wholly owned subsidiary of Great Plains Energy, and its consolidated subsidiariesEnvironment
KCP&L Receivables CompanyKEEIAKansas City Power & Light Receivables Company, a wholly owned subsidiary of KCP&L
kWhKilowatt hour
MEEIAMissouri Energy Efficiency Investment Act
Merger SubkVKing Energy, Inc., a Kansas corporation and wholly owned subsidiary of HoldcoKilovolt
MGPkWhManufactured gas plantKilowatt hour
MPS MerchantLECMPS Merchant Services, Inc., a wholly owned subsidiary of GMO

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Lawrence Energy Center
Abbreviation or AcronymMDNRDefinitionMissouri Department of Natural Resources
MECGMidwest Energy Consumers Group
MPSCMEEIAMissouri Energy Efficiency Investment Act
MPSCPublic Service Commission of the State of Missouri
MWMegawatt
MWhMegawatt hour
NAVNAAQSNational Ambient Air Quality Standards
NAVNet asset value
NERCNOLNorth American Electric Reliability Corporation
NOLNet operating loss
NRCNuclear Regulatory Commission
OMERSOCIOCM Credit Portfolio LPOther comprehensive income
Original Merger AgreementOPCAgreement and PlanOffice of Merger dated as of May 29, 2016, by and among Great Plains Energy, Westar and GP Star, Inc.the Public Counsel
RTORegional Transmission Organization
SECPrairie WindPrairie Wind Transmission, LLC, 50% owned by Evergy Kansas Central
RSURestricted share unit
RTORegional transmission organization
SECSecurities and Exchange Commission
Series A Preferred StockSIP7.25% Mandatory Convertible Preferred Stock, Series AState implementation plan
Series B Preferred StockSPP7.00% Series B Mandatory Convertible Preferred Stock
SPPSouthwest Power Pool, Inc.
Transource
TDCTransmission delivery charge
TFRTransmission formula rate
TransourceTransource Energy, LLC and its subsidiaries, 13.5% owned by GPETHCEvergy Transmission Company
WCNOCUFSAWolf Creek Nuclear Operating CorporationUtility Financing and Securitization Act
WestarVIEWestar Energy, Inc.Variable interest entity
Westar BoardWestar Board of Directors
Wolf CreekWolf Creek Generating Station


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PART I
ITEM 1. BUSINESS
General
Great Plains Energy IncorporatedEvergy, Inc., Evergy Kansas Central, Inc. and Kansas City Power & Light CompanyEvergy Metro, Inc. are separate registrants filing this combined annual report on Form 10-K. The terms "Great Plains Energy,"Evergy," "Company,"Evergy Kansas Central," "KCP&L""Evergy Metro" and "Companies""Evergy Companies" are used throughout this report. "Great Plains Energy" and the "Company" refer"Evergy" refers to Great Plains Energy IncorporatedEvergy, Inc. and its consolidated subsidiaries, unless otherwise indicated. "KCP&L""Evergy Kansas Central" refers to Evergy Kansas City Power & Light Company and its consolidated subsidiaries. "Companies" refers to Great Plains Energy IncorporatedCentral, Inc. and its consolidated subsidiaries, and KCP&Lunless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated subsidiaries.subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Evergy Kansas Central, and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.
Information in other Items of this report as to which reference is made in this Item 1 is hereby incorporated by reference in this Item 1. The use of terms such as "see" or "refer to" shall be deemed to incorporate into this Item 1 the information to which such reference is made.
GREAT PLAINS ENERGY INCORPORATEDEVERGY, INC.
Great Plains Energy, a Missouri corporation incorporated in 2001 and headquartered in Kansas City, Missouri,Evergy is a public utility holding company incorporated in 2017 and does not own or operate any significant assets other thanheadquartered in Kansas City, Missouri. Evergy operates primarily through the stock of its subsidiaries and cash and cash equivalents. Great Plains Energy's wholly ownedfollowing wholly-owned direct subsidiaries with significant operations are as follows:listed below.
KCP&L is an integrated, regulated electric utility that provides electricity to customers primarily in the states of Missouri and Kansas. KCP&L has one active wholly owned subsidiary,•Evergy Kansas City Power & Light Receivables Company (KCP&L Receivables Company).
GMOCentral, Inc. (Evergy Kansas Central) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. GMO alsoKansas. Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South).
•Evergy Metro, Inc. (Evergy Metro) is an integrated, regulated electric utility that provides regulated steam serviceelectricity to certain customers in the St. Joseph,states of Missouri area. GMO has two active wholly owned subsidiaries, GMO Receivables Company and MPS Merchant Services,Kansas.
•Evergy Missouri West, Inc. (MPS Merchant).  MPS Merchant has certain long-term natural gas contracts remaining from its former non-regulated trading operations.(Evergy Missouri West) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
Great Plains Energy also wholly owns GPE•Evergy Transmission Holding Company, LLC (GPETHC). GPETHC(Evergy Transmission Company) owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, (AEPTHC), a subsidiary of American Electric Power Company, Inc. GPETHC accounts for its investment in Transource under the equity method.(AEP). Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.
Great Plains Energy's sole reportableEvergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kilovolt (kV) double-circuit transmission line that provides transmission service in the Southwest Power Pool, Inc. (SPP). Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.
Evergy Kansas Central, Evergy Kansas South, Evergy Metro, and Evergy Missouri West conduct business segmentin their respective service territories using the name Evergy. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment). Evergy serves approximately 1,640,800 customers located in Kansas and Missouri. Customers include approximately 1,433,500 residences, 199,400 commercial firms and 7,900 industrials, municipalities and other electric utilities. Evergy is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the electric utility segment (Electric Utility). For information regardingthird quarter.
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Evergy expects to continue operating its integrated utilities within the revenues, incomecurrently existing regulatory frameworks and assets attributableis focused on empowering a better future for its customers, communities, employees and shareholders. The core tenets of Evergy's strategy are as follows:
•Affordability – working to Electric Utility, see Note 22 to the consolidated financial statements. Comparative financial informationkeep rates affordable and discussion regarding Electric Utility can be foundimprove regional rate competitiveness;
•Reliability – targeting top-tier performance in reliability, customer service and generation; and
•Sustainability – advancing ongoing CO2 emissions reductions and generation fleet transition.
See Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A). - Executive Summary – Strategy, for additional information.
Electric Utility consistsThe table below summarizes the percentage of KCP&L, aEvergy's revenues by customer classification.
202120202019
Residential34%39%37%
Commercial30%33%35%
Industrial11%12%12%
Wholesale13%5%7%
Transmission6%6%6%
Other6%5%3%
Total100%100%100%
The table below summarizes the percentage of Evergy's retail electricity sales by customer class.
202120202019
Residential37%38%36%
Commercial42%42%43%
Industrial21%20%21%
Total100%100%100%
Regulation
Evergy Kansas Central's and Evergy Metro's Kansas operations are regulated utility, GMO's regulated utility operations and GMO Receivables Company. Electric Utility serves approximately 867,100 customers located in western Missouri and eastern Kansas. Customers include approximately 764,200 residences, 100,400 commercial firms and 2,500 industrials, municipalities and other electric utilities. Electric Utility's retail revenues averaged approximately 93% of its total operating revenues overby the last three years. Wholesale firm power, bulk power sales and miscellaneous electric revenues accounted for the remainder of Electric Utility's revenues. Electric Utility is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter. Electric Utility's total electric revenues were 100% of Great Plains Energy's revenues over the last three years. Electric Utility's net income accounted for approximately (242)% of Great Plains Energy's net loss in 2017 and 101% and 105% of Great Plains Energy's net income in 2016 and 2015, respectively.

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Anticipated Merger with Westar Energy, Inc.
In May 2016, Great Plains Energy and Westar entered into an Agreement and Plan of Merger dated as of May 29, 2016, by and among Great Plains Energy, Westar and GP Star, Inc. (GP Star) (Original Merger Agreement) in which Great Plains Energy would have acquired Westar for a combination of cash and shares of Great Plains Energy common stock. In April 2017, The State Corporation Commission of the State of Kansas (KCC) issued an order denying Great Plains Energy's, KCP&L's and Westar's joint application for the approval of the acquisition citing concerns with the purchase price, Great Plains Energy's capital structure, quantifiableEvergy Metro's Missouri operations and demonstrable customer benefits and staffing levels in Westar's service territory, among other items.
In July 2017, Great Plains Energy entered into an Amended and Restated Agreement and Plan of Merger dated as of July 9, 2017 by and among Great Plains Energy, Westar, Monarch Energy Holding, Inc., aEvergy Missouri corporation (Holdco), and King Energy, Inc., a Kansas corporation and wholly owned subsidiary of Holdco (Merger Sub) (Amended Merger Agreement). Pursuant to the Amended Merger Agreement, subject to the satisfaction or waiver of certain conditions, Great Plains Energy will merge with and into Holdco, with Holdco surviving such merger, and Merger Sub will merge with and into Westar, with Westar surviving such merger. Pursuant to the Amended Merger Agreement, at closing each outstanding share of Great Plains Energy's and Westar's common stock will be converted into the right to receive 0.5981 and 1.0, respectively, of validly issued, fully paid and nonassessable shares of common stock, no par value, of Holdco. Following the mergers, Holdco, with a new name that has yet to be established, will be the parent of Great Plains Energy's direct subsidiaries, including KCP&L, and Westar.
The anticipated merger with Westar has been structured as a merger of equals in a tax-free exchange of shares that involves no premium paid or received with respect to either Great Plains Energy or Westar. Following the completion of the anticipated merger, Westar shareholders will own approximately 52.5 percent and Great Plains Energy shareholders will own approximately 47.5 percent of the combined company. See Note 2 to the consolidated financial statements for additional information concerning the anticipated merger with Westar.

Regulation
KCP&L and GMOWest are regulated by the Public Service Commission of the State of Missouri (MPSC) and KCP&L is also regulated by KCC, in each case with respect to retail rates, certain accounting matters, standards of service and, in certain cases, the issuance of securities, certification of facilities and service territories. KCP&L and GMOThe Evergy Companies are also subject to regulation by Thethe Federal Energy Regulatory Commission (FERC) with respect to transmission, wholesale sales and rates, the issuance of securities in certain cases and other matters. KCP&LEvergy has a 47%an indirect 94% ownership interest in Wolf Creek Generating Station (Wolf Creek), which is subject to regulation by the Nuclear Regulatory Commission (NRC) with respect to licensing, operations and safety-related requirements.
The table below summarizes the rate orders in effect for KCP&L'sEvergy Kansas Central's, Evergy Metro's and GMO'sEvergy Missouri West's retail rate jurisdictions.
RegulatorAllowed Return on EquityRate-Making Equity RatioEffective Date
Evergy Kansas Central (a)
KCC9.3%51.46%September 2018
Evergy Metro - KansasKCC9.3%49.09%December 2018
Evergy Metro - MissouriMPSC(b)(b)December 2018
Evergy Missouri WestMPSC(b)(b)December 2018
(a) The KCC establishes rates for Evergy Kansas Central and Evergy Kansas South on a consolidated basis.
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 RegulatorAllowed Return on EquityRate-Making Equity RatioRate Base (in billions)Effective Date
KCP&L MissouriMPSC9.5%49.2%$2.5June 2017
KCP&L KansasKCC9.3%50.5%$2.1October 2015
GMOMPSC
9.5% - 9.75%(a)
(a)(a)February 2017
(a) GMO's(b) Evergy Metro's and Evergy Missouri West's current MPSC rate order reflects a global settlement withorders do not contain an impliedallowed return on equity range of 9.5% - 9.75% and does not contain an agreed uponor rate-making equity ratio or rate base.ratio.
MissouriEvergy expects its 2022 Kansas and KansasMissouri jurisdictional retail revenues averagedto be approximately 70%60% and 30%40%, respectively, based on historical averages of Electric Utility'sEvergy Kansas Central's, Evergy Metro's and Evergy Missouri West's total retail revenues over the last three years.revenues.
See Item 7 MD&A, Critical Accounting Policies section, and Note 64 to the consolidated financial statements for additional information concerning regulatory matters.

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Competition
Missouri and Kansas continue to operate on the fully integrated and regulated retail utility model. As a result, KCP&L and GMOthe Evergy Companies do not compete with others to supply and deliver electricity in itstheir franchised service territory, although other sourcesterritories in exchange for agreeing to have their terms of energy can provide alternatives to retail electric utility customers.service regulated by state regulatory bodies. If Missouri or Kansas were to pass and implement legislation authorizing or mandating retail choice, Electric UtilityEvergy may no longer be able to apply regulated utility accounting principles to deregulated portions of its operations, andwhich may be requiredrequire a surcharge to write offrecover certain costs from legacy customers or could lead to a write-off of certain regulatory assets and liabilities.
Electric UtilityEvergy competes in the wholesale market to sell power in circumstances when the power it generates is not required for retail customers in its service territory. This competition primarily occurs within the Southwest Power Pool, Inc. (SPP)SPP Integrated Marketplace, in which KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West are participants. Similar to other Regional Transmission Organization (RTO) or Independent System Operator (ISO) markets currently operating, thisThis marketplace determines which generating units among market participants should run, within the operating constraints of a unit, at any given time for maximum regional cost-effectiveness.
In this regard, Electric Utility competes with other regional power suppliers, principally other utilities within theThe SPP Integrated Marketplace onis similar to other Regional Transmission Organization (RTO) or Independent System Operator (ISO) markets currently operating in other regions of the basis of availability and price. Electric Utility's wholesale revenues averaged approximately 5% of its total revenues over the last three years.United States.
Power Supply
Electric UtilityEvergy has approximately 6,500 MWs15,400 megawatts (MWs) of total owned generating capacity and alsorenewable power purchase agreements. Evergy's owned generation and power purchases from others, as a percentage of total megawatt hours (MWhs) generated and purchased, was approximately 70% and 30%, respectively, over the last three years. Evergy purchases power to meet its customers' needs, to satisfy firm power commitments or to meet renewable energy standards. Electric Utility's purchased power from others, as a percentage of total MWhs generated and purchased, averaged approximately 26% over the last three years. Management believes Electric UtilityEvergy will be able to obtain enough power to meet its future demandspower purchase needs due to the coordination of planning and operations in the SPP region and existing power purchase agreements; however, price and availability of power purchases may be impacted during periods of high demand.demand or reduced supply.
Electric Utility'sEvergy's total capacity by fuel type, including both owned generating capacity and power purchase agreements, is detailed in the table below.
Fuel TypeEstimated 2022 MW CapacityPercent of Total Capacity
Coal5,913 38 %
Wind (a)
4,326 28 
Natural gas and oil3,971 26 
Uranium1,108 7 
Solar, landfill gas and hydroelectric (b)
78 1 
Total capacity15,396 100 %
Fuel TypeEstimated 2018 MW CapacityPercent of Total Capacity
Coal3,433
44
%
Nuclear552
7
 
Natural gas and oil2,342
30
 
Wind (a)
1,389
18
 
Solar, landfill gas and hydroelectric (b)
65
1
 
Total capacity7,781
100
%
(a)MWs are based on nameplate capacity of the wind facility. Includes owned generating capacity of 149579 MWs and long-term power purchase agreements of approximately 1,2403,747 MWs of wind generation whichthat expire in 2032from 2028 through 2037.2048. See Item 2, Properties, for additional information.
(b) Includes a long-term power purchase agreement for approximately 6066 MWs of hydroelectric generation whichthat expires in 2023.
Electric Utility'sEvergy's projected peak summer demand for 20182022 is approximately 5,20010,200 MWs. Electric UtilityEvergy expects to meet its projected capacity requirements for the foreseeable future2022 with its existing generation assets and power purchases. See
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"Transitioning Evergy's Generation Fleet" below for further information regarding Evergy's long-term strategy with regards to its generating assets and capacitypower purchases.
KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West are members of the SPP. The SPP is a FERC-approved RTO with the responsibility to ensure reliable power supply, adequate transmission infrastructure and ensure competitive wholesale electricity prices in the region. As SPP members, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West are required to maintain a minimum reserve margin of 12%. This net positive supply of capacity is maintained through generation asset ownership, capacity agreements, power purchase agreements and peak demand reduction programs. The reserve margin is designed to support reliability of the region's electric supply.

Environmental Matters
The Evergy Companies are subject to extensive and evolving federal, state and local environmental laws, regulations and permit requirements relating to air and water quality, waste management and hazardous substance disposal, protected natural resources (such as wetlands, endangered species and other protected wildlife) and health and safety. For example, Evergy Kansas Central, Evergy Metro and Evergy Missouri West combust large amounts of fossil fuels in the production of electricity, which results in significant emissions of carbon dioxide (CO2) and other greenhouse gases (GHG). Federal legislation regulates the emission of GHGs and numerous states and regions have adopted programs to stabilize or reduce GHG emissions. The Environmental Protection Agency (EPA), the Kansas Department of Health and Environment (KDHE) and the Missouri Department of Natural Resources (MDNR) regulate emissions under the Clean Air Act Amendments of 1990 (CAA), water under the Clean Water Act (CWA) and waste management under the Resource Conservation and Recovery Act (RCRA), among other laws and regulations. See Note 14 to the consolidated financial statements for additional information. There have been, and management believes there will continue to be, policy, legal and regulatory efforts to influence climate change, such as efforts to reduce GHG emissions, impose a tax on emissions and create incentives for low-carbon generation and energy efficiency. These efforts, and climate change itself, have the potential to adversely affect the Evergy Companies' results of operations, financial position and cash flows. See Part I, Item 1A, Risk Factors, for additional information.
The Evergy Companies have taken, and will continue to take, proactive measures to mitigate the impact of climate change on its businesses. For example, the Evergy Companies regularly conduct preparedness exercises for a variety of disruptive events, including storms, which may become more frequent or intense due to climate change. In addition, the Evergy Companies have invested, and will continue to invest, in grid resiliency. Much of the Evergy Companies' infrastructure is aged, and grid resiliency efforts include building additional transmission and distribution lines, replacing aged infrastructure and proactively managing the vegetation that can damage systems during severe weather. The Evergy Companies also monitor water conditions at their generating facilities and focus on water conservation at these facilities to address resource depletion.
Transitioning Evergy's Generation Fleet
The Evergy Companies are committed to a long-term strategy to reduce CO2 emissions in a cost-effective and reliable manner. In 2021, Evergy achieved a reduction of CO2 emissions by about half from 2005 levels. Evergy has a goal to achieve net-zero CO2 emissions by 2045, which includes an interim goal of a 70% reduction of CO2 emissions from 2005 levels by 2030. The trajectory and timing of reaching Evergy's net-zero CO2 emissions goal are dependent on enabling technology developments, the reliability of the power grid, and supportive energy policies and regulations and could also be impacted by political, legal and regulatory actions.
Public attention is currently focused on transitioning to a low carbon future, including reducing GHG emissions and closing coal-fired generating units. Diversity of fuel supply has historically provided cost and reliability benefits. For example, because renewable generation is intermittent, diversity of baseload generation, including a mix of coal and natural gas, has helped to maintain a consistent availability of power. In addition, the Evergy Companies must prudently utilize the generation assets that regulators have allowed the Evergy Companies to include in rates. The Evergy Companies use a triennial integrated resource plan, which is a detailed analysis that estimates factors that influence the future supply and demand for electricity, to inform the manner in which they supply electricity. The integrated resource plan considers forecasts of future electricity demand, fuel prices, transmission improvements,
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new generating capacity, cost of environmental compliance, integration of renewables, energy storage, energy efficiency and demand response initiatives. Strategies that the Evergy Companies are pursuing to reduce emissions include:
•retiring fossil fuel generation;
•developing renewable energy facilities;
•collaborating with regulators to offer customers the opportunity to procure electricity produced with renewable resources; and
•investing in customer energy efficiency programs.
Since 2005, the Evergy Companies have added over 4,400 MWs of renewable generation, while retiring more than 2,400 MWs of fossil generation. See Item 2, Properties, for additional information regarding the Evergy Companies' renewable generation resources. The Evergy Companies are also committed to transparency. On its website, http://investors.evergy.com, Evergy provides quantitative and qualitative data regarding various environmental, social and governance matters, including information related to emissions, waste and water. The contents of the website, including reports and documents contained therein, are not incorporated into this filing.
See Note 14 to the consolidated financial statements for information regarding environmental matters.
Fuel
The principal fuel sources for Electric Utility'sEvergy's owned generation and power purchase agreements are coal, wind and nuclear fuel. It is expected, with normal weather, that approximately 98% of 2018 net MWhs generated will come from theseother renewable sources, with the remainder provided by wind,uranium and natural gas and oil. The actual 2017 and estimated 20182021 fuel mix and deliveredfuel cost in cents per net kilowatt hour (kWh) generateddelivered are outlined in the following table.
Fuel cost in cents per
Fuel Mix(a)
net kWh delivered (b)
ActualActual
Fuel20212021
Coal50%1.94¢
Wind, hydroelectric, landfill gas and solar302.06
Uranium160.64
Natural gas and oil411.72
   Total100%2.12
       Fuel cost in cents per
 
Fuel Mix (a)
 net kWh generated
 Estimated Actual EstimatedActual
Fuel2018 2017  2018 2017
Coal77
% 75%  1.84
 1.81
Nuclear21
  23   0.62
 0.69
Natural gas and oil<1
  1   7.46
 15.19
Wind2
  1   —
 —
   Total owned generation100
% 100%  1.42
 1.62
(a) Fuel mix based on percent of net MWhs generated.
(a) Fuel mix based on percent of net MWhs generated by owned resources and delivered under renewable power purchase agreements.
(b) Fuel cost in cents per net kWh delivered includes costs associated with renewable power purchase agreements.
Coal
During 2018, Electric Utility's2022, Evergy's generating units, including jointly ownedjointly-owned units, are projected to burnuse approximately 1119 million tons of coal. KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West have entered into coal-purchase contracts with various suppliers in Wyoming's Powder River Basin (PRB), the nation's principal supply region of low-sulfur coal, and with local suppliers. The coal to be provided under these contracts is expected to satisfy approximately 95%85% of the projected coal requirements for 20182022 and approximately 40%10% for 2019.each of 2023 and 2024. The remainder of the coal requirements is expected to be fulfilled through entering into additional contracts or spot market purchases.
KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West have also entered into rail transportation contracts with various railroads to transport coal from the PRB and local suppliers to their generating units. The transportation services to be provided under these contracts are expected to satisfy almost all of the projected transportation requirements for 2018.2022, 2023 and 2024. The contract rates adjust for changes in railroad costs.
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Nuclear Fuel
KCP&LEvergy Kansas South and Evergy Metro each owns 47% of Wolf Creek, Nuclear Operating Corporation (WCNOC), the operating company for Wolf Creek, which is Electric Utility'sEvergy's only nuclear generating unit. Wolf Creek purchases uranium and has it processed for use as fuel in its reactor. This process involves conversion of uranium concentrates to uranium hexafluoride, enrichment of uranium hexafluoride and fabrication of nuclear fuel assemblies. The owners of Wolf Creek have on hand or under contract all of the uranium, uranium enrichment and conversion services needed to operate Wolf Creek through March 2027.the first quarter of 2030. The owners also have under contract all of the uranium enrichment and fabrication services required to operate Wolf Creek through March 20272045.
Natural Gas
Evergy purchases natural gas for use in its generating units primarily through spot market purchases. From time to time, Evergy also may enter into contracts, including the use of derivatives, in an effort to manage the cost of natural gas. For additional information about Evergy's exposure to commodity price risks, see Item 7A., Quantitative and September 2025, respectively.Qualitative Disclosures About Market Risk.
See Note 5Evergy Kansas Central maintains natural gas transportation arrangements with Southern Star Central Gas Pipeline, Inc. The Southern Star Central Gas Pipeline, Inc. arrangement expires based on the generating unit being served with expiration dates from 2022 to 2030.
Customer Energy Efficiency Programs
The Evergy Companies have implemented, and continue to offer, energy efficiency programs to help customers with their energy efficiency needs and to help manage energy costs. Both Missouri and Kansas have passed legislation promoting the implementation of cost-effective demand-side management programs and allowing for the recovery of these program costs from customers, along with the potential to earn performance incentives based upon certain criteria.
In Missouri, Evergy Metro and Evergy Missouri West currently offer a suite of energy efficiency programs for customers under the Missouri Energy Efficiency Investment Act (MEEIA). The current portfolio of programs was approved by the MPSC in 2019 and provides for the recovery of program costs, throughput disincentive and the opportunity to earn a performance incentive based upon demand and energy savings achieved. The costs of the programs are recovered from customers through a rider mechanism. Evergy Metro's and Evergy Missouri West's current MEEIA programs as authorized by the MPSC expire at the end of 2022 and Evergy Metro and Evergy Missouri West currently anticipate requesting an extension of these programs.
In Kansas, Evergy Kansas Central and Evergy Metro requested KCC authorization in December 2021 for a suite of energy efficiency programs for customers under the Kansas Energy Efficiency Investment Act (KEEIA). The requested portfolio of programs would provide for the recovery of program costs, throughput disincentive and the opportunity to earn a performance incentive based upon demand and energy savings achieved. The costs of the program would be recovered from customers through a rider mechanism. Evergy Kansas Central's and Evergy Metro's proposed programs would be effective in 2023 and would expire in 2026. The KCC's decision on Evergy Kansas Central's and Evergy Metro's KEEIA request is expected in the second half of 2022.
Human Capital Resources
At December 31, 2021, the Evergy Companies had 4,930 employees, including 2,632 represented by five local unions of the International Brotherhood of Electrical Workers (IBEW) and one local union of the United Government Security Officers of America (UGSOA). The Evergy Companies currently have three labor agreements that expire in 2024 and three labor agreements currently under negotiation that have expired and are operating under an extension. The Evergy Companies employ 1,750 generation employees, 1,452 transmission and distribution employees and 1,728 support employees that work primarily in the states of Kansas and Missouri.
Evergy's mission is to empower a better future and a key component of this mission is maintaining a culture that emphasizes safety, integrity, ownership and adaptability.
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Safety is a crucial part of Evergy's values. The components of Evergy's safety program include a strong management commitment to a safety-conscious work environment, hazard recognition and control, worksite analysis, contractor safety management and training. Evergy also conducts regular safety audits and assessments. During the COVID-19 pandemic, Evergy has prioritized the safety of its employees while continuing to serve its customers and community by providing appropriate personal protective equipment, establishing additional training and protocols and directing employees to work remotely when possible.
Evergy is also working to build a more diverse and inclusive workforce through recruiting and hiring practices, performance management, training and data analysis and reporting initiatives. As of December 31, 2021, Evergy's workforce was 77% male and 23% female, and women represented 24% of Evergy's officer team. The ethnicity of Evergy's workforce was 85% White, 5% Black, 4% Hispanic and 6% other.
Evergy offers a competitive package of compensation and benefits to attract and retain talented employees, including market-competitive pay, healthcare and retirement benefits, paid time off, family leave and tuition reimbursement. Evergy also allows employees to participate in a comprehensive well-being program that includes health and wellness-related activities and incentives, business resource groups, gym membership reimbursement, paid volunteer hours, charitable donation match and free access to an employee assistance program.
Information About Evergy's Executive Officers
Set forth below is information relating to the consolidated financial statementsexecutive officers of Evergy, Inc. Each executive officer holds the same position with each of Evergy Kansas Central, Inc., Evergy Metro, Inc., Evergy Kansas South, Inc. and Evergy Missouri West, Inc. as the executive officer holds with Evergy, Inc. Executive officers serve at the pleasure of the board of directors. There are no family relationships among any of the executive officers, nor any arrangements or understandings between any executive officer and other persons pursuant to which he or she was appointed as an executive officer.
NameAgeCurrent Position(s)Year First Assumed an Officer Position
David A. Campbell (a)
53President and Chief Executive Officer2021
Kirkland B. Andrews(b)
54Executive Vice President and Chief Financial Officer2021
Kevin E. Bryant (c)
46Executive Vice President and Chief Operating Officer2006
Gregory A. Greenwood (d)
56Executive Vice President and Chief Strategy Officer2003
Lesley L. Elwell (e)
51Senior Vice President and Chief Human Resources Officer2021
Charles A. Caisley (f)
48Senior Vice President, Public Affairs and Chief Customer Officer2011
Heather A. Humphrey (g)
51Senior Vice President, General Counsel and Corporate Secretary2010
Charles L. King (h)
57Senior Vice President and Chief Technology Officer2013
Steven P. Busser (i)
53Vice President and Chief Accounting Officer2014
(a)Mr. Campbell was appointed President and Chief Executive Officer of Evergy, Inc. in January 2021. Mr. Campbell previously served as Executive Vice President and Chief Financial Officer of Vistra Energy Corp. (2019-2020), as President and Chief Executive Officer of InfraREIT, Inc. and President of Hunt Utility Services (2014-2019), as President and Chief Executive Officer of Sharyland Utilities (2016-2019), as President and Chief Operating Officer of Bluescape Resources (2013-2014) and in various roles with TXU Corp. and its affiliated entities after joining the firm in 2004.
(b)Mr. Andrews was appointed Executive Vice President and Chief Financial Officer of Evergy, Inc. in February 2021. Mr. Andrews previously served as Executive Vice President and Chief Financial Officer of NRG Energy, Inc. (2011-2021) and as Executive Vice President, Chief Financial Officer of Clearway Energy, Inc. (2012-2016). Mr. Andrews also served as Managing Director and Co-Head Investment Banking, Power and Utilities - Americas at Deutsche Bank Securities (2009-2011), and in several capacities at Citigroup Global Markets Inc., including Managing Director, Group Head, North American Power (2007-2009) and Head of Power M&A, Mergers and Acquisitions (2005-2007).
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(c)Mr. Bryant was appointed Executive Vice President and Chief Operating Officer of Evergy, Inc. in June 2018. Mr. Bryant previously served as Senior Vice President - Finance and Strategy and Chief Financial Officer of Great Plains Energy, Evergy Metro and Evergy Missouri West (2015-2018). He previously served as Vice President - Strategic Planning of Great Plains Energy, Evergy Metro and Evergy Missouri West (2014). He served as Vice President - Investor Relations and Strategic Planning and Treasurer of Great Plains Energy Incorporated (Great Plains Energy), Evergy Metro and Evergy Missouri West (2013). He served as Vice President - Investor Relations and Treasurer of Great Plains Energy, Evergy Metro and Evergy Missouri West (2011-2013). He was Vice President - Strategy and Risk Management of Evergy Metro and Evergy Missouri West (2011) and Vice President - Energy Solutions of Evergy Metro (2006-2011) and Evergy Missouri West (2008-2011).
(d)Mr. Greenwood was appointed Executive Vice President and Chief Strategy Officer of Evergy, Inc. in August 2021. He previously served as Executive Vice President, Strategy and Chief Administrative Officer of Evergy, Inc. (2018-2021). Mr. Greenwood previously served in the following officer roles for additional information regarding nuclear plant.Evergy Kansas Central: Senior Vice President, Strategy (2011-2018); Vice President, Major Construction Projects (2006-2011); and Treasurer (2003-2006). Mr. Greenwood also served in the following roles for Evergy Kansas Central: Executive/Senior Director, Corporate Finance (1999-2003); Director, Financial Strategy and Acting Director, Internal Audit (1999-2000); and Director, Financial Strategy (1998-1999). Mr. Greenwood joined Evergy Kansas Central in 1993. Mr. Greenwood intends to retire in the middle of 2022 and transition to an advisory role thereafter through 2024.
Environmental Matters(e)Ms. Elwell was appointed Senior Vice President and Chief Human Resources Officer of Evergy, Inc. in September 2021. Ms. Elwell previously served as Chief People Officer at JE Dunn (2017-2021), as Vice President People Strategy / HR Business Partner of Walmart Corporation (2016-2017), as Vice President HR Business Partner Operations at DIRECTV (2012-2015), and in various roles of increasing responsibility, including as Vice President, with Sprint (1997-2012; 2015-2016).
See Note 15(f)Mr. Caisley was appointed Senior Vice President, Public Affairs and Chief Customer Officer of Evergy, Inc. in August 2021. He previously served as Senior Vice President, Marketing and Public Affairs and Chief Customer Officer of Evergy, Inc. (2018-2021). Mr. Caisley served as Vice President - Marketing and Public Affairs of Great Plains Energy, Evergy Metro and Evergy Missouri West (2011-2018). He was Senior Director of Public Affairs (2008-2011) and Director of Governmental Affairs of Evergy Metro (2007-2008).
(g)Ms. Humphrey was appointed Senior Vice President, General Counsel and Corporate Secretary of Evergy, Inc. in June 2018. Ms. Humphrey previously served as Senior Vice President - Corporate Services and General Counsel of Great Plains Energy, Evergy Metro and Evergy Missouri West (2016-2018). She previously served as General Counsel (2010-2016) and Senior Vice President - Human Resources of Great Plains Energy, Evergy Metro and Evergy Missouri West (2012-2016). She served as Vice President - Human Resources of Great Plains Energy, Evergy Metro and Evergy Missouri West (2010-2012). She was Senior Director of Human Resources and Interim General Counsel of Great Plains Energy, Evergy Metro and Evergy Missouri West (2010) and Managing Attorney of Evergy Metro (2007-2010).
(h)Mr. King was appointed Senior Vice President and Chief Technology Officer of Evergy, Inc. in February 2020. He previously served as Senior Vice President, Information Technology and Chief Information Officer (2019) and Vice President, Information Technology and Chief Information Officer (2018-2019) of Evergy, Inc. Prior to that, he served as Vice President - Information Technology (2013-2018), as Senior Director of Information Technology Applications and Delivery (2013) and Director of Information Technology Applications (2011-2013) of Evergy Metro and Evergy Missouri West. Mr. King also served in various roles, including leadership roles, with Dish Network, CenturyLink, Sprint and Accenture.
(i)Mr. Busser was appointed Vice President and Chief Accounting Officer of Evergy, Inc. in February 2022. He previously served as Vice President - Risk Management and Controller of Evergy, Inc. (2018-2022). Mr. Busser was appointed Vice President - Risk Management and Controller of Great Plains Energy, Evergy Metro and Evergy Missouri West in 2016. He previously served as Vice President - Business Planning and Controller of Great Plains Energy, Evergy Metro and Evergy Missouri West (2014-2016). He served as Vice President - Treasurer of El Paso Electric Company (2011-2014). Prior to that, he served as Vice President - Treasurer and Chief Risk Officer (2006-2011) and Vice President - Regulatory Affairs and Treasurer (2004-2006) of El Paso Electric Company.
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Evergy Kansas Central, Inc.
Evergy Kansas Central, a Kansas corporation incorporated in 1924 and headquartered in Topeka, Kansas, is an integrated, regulated electric utility that engages in the consolidated financial statementsgeneration, transmission, distribution and sale of electricity. Evergy Kansas Central serves approximately 730,800 customers located in central and eastern Kansas. Customers include approximately 631,300 residences, 94,000 commercial firms, and 5,500 industrials, municipalities and other electric utilities. Evergy Kansas Central's retail revenues averaged approximately 74% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales, transmission and miscellaneous electric revenues accounted for information regarding environmental matters.the remainder of Evergy Kansas Central's revenues. Evergy Kansas Central is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter.
KANSAS CITY POWER & LIGHT COMPANYEvergy Metro, Inc.
KCP&L,Evergy Metro, a Missouri corporation incorporated in 1922 and headquartered in Kansas City, Missouri, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity. KCP&LEvergy Metro serves approximately 542,500571,500 customers located in western Missouri and eastern Kansas. Customers include approximately 479,300505,000 residences, 61,20064,600 commercial firms, and 2,0001,900 industrials, municipalities and other electric

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utilities. KCP&L'sEvergy Metro's retail revenues averaged approximately 92%88% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales and miscellaneous electric revenues accounted for the remainder of KCP&L'sEvergy Metro's revenues. KCP&LEvergy Metro is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter. Missouri and Kansas jurisdictional retail revenues for Evergy Metro averaged approximately 57%55% and 43%45%, respectively, of total retail revenues over the last three years.
Great Plains Energy and KCP&L Employees
At December 31, 2017, Great Plains Energy and KCP&L had 2,709 employees, including 1,664 represented by three local unions of the International Brotherhood of Electrical Workers (IBEW). KCP&L has labor agreements with Local 1613, representing clerical employees (expires March 31, 2018), with Local 1464, representing transmission and distribution workers (expires February 28, 2018), and with Local 412, representing power plant workers (expires February 28, 2021).
Executive Officers
All of the individuals in the following table have been officers or employees in the responsible positions with the Company noted below for the past five years unless otherwise indicated in the footnotes.  The executive officers were reappointed to the indicated positions by the respective boards of directors, effective January 1, 2018, to hold such positions until their resignation, removal or the appointment of their successors. There are no family relationships between any of the executive officers, nor any arrangement or understanding between any executive officer and any other person involved in officer selection.  Each executive officer holds the same position with GMO as he or she does with KCP&L.
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NameAgeCurrent Position(s)Year First Assumed an Officer Position
Terry Bassham (a)
57Chairman of the Board, President and Chief Executive Officer - Great Plains Energy and KCP&L2005
Kevin E. Bryant (b)
42Senior Vice President - Finance and Strategy and Chief Financial Officer - Great Plains Energy and KCP&L2006
Steven P. Busser (c)
49Vice President - Risk Management and Controller - Great Plains Energy and KCP&L2014
Charles A. Caisley (d)
45Vice President - Marketing and Public Affairs - Great Plains Energy and KCP&L2011
Ellen E. Fairchild (e) 
56Vice President, Chief Compliance Officer and Corporate Secretary - Great Plains Energy and KCP&L2010
Heather A. Humphrey (f) 
47Senior Vice President - Corporate Services and General Counsel - Great Plains Energy and KCP&L2010
Darrin R. Ives (g)
48Vice President - Regulatory Affairs - KCP&L2013
Lori A. Wright (h) 
55Vice President - Corporate Planning, Investor Relations and Treasurer - Great Plains Energy and KCP&L2002
(a)
Mr. Bassham was appointed Chairman of the Board in May 2013 and has served as Chief Executive Officer of Great Plains Energy, KCP&L and GMO since 2012. He has served as President of each company since 2011. He previously served as President and Chief Operating Officer of Great Plains Energy, KCP&L and GMO (2011-2012) and as Executive Vice President - Utility Operations of KCP&L and GMO (2010-2011).  He was Executive Vice President - Finance and Strategic Development and Chief Financial Officer of Great Plains Energy (2005-2010) and of KCP&L and GMO (2009-2010).  

(b)
Mr. Bryant was appointed Senior Vice President - Finance and Strategy and Chief Financial Officer of Great Plains Energy, KCP&L and GMO in 2015. He previously served as Vice President - Strategic Planning of Great Plains Energy, KCP&L and GMO (2014). He served as Vice President - Investor Relations and Strategic Planning and Treasurer of Great Plains Energy, KCP&L and GMO (2013). He served as Vice President - Investor Relations and Treasurer of Great Plains Energy, KCP&L and GMO (2011-2013). He was Vice President - Strategy and Risk Management of KCP&L and GMO (2011) and Vice President - Energy Solutions (2006-2011) of KCP&L and GMO.


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(c)
Mr. Busser was appointed Vice President - Risk Management and Controller of Great Plains Energy, KCP&L and GMO in 2016. He previously served as Vice President - Business Planning and Controller of Great Plains Energy, KCP&L and GMO (2014-2016). He served as Vice President - Treasurer of El Paso Electric Company (2011-2014). Prior to that, he served as Vice President - Treasurer and Chief Risk Officer (2006-2011) and Vice President - Regulatory Affairs and Treasurer (2004-2006) of El Paso Electric Company.

(d)
Mr. Caisley was appointed Vice President - Marketing and Public Affairs of Great Plains Energy, KCP&L and GMO in 2011. He was Senior Director of Public Affairs (2008-2011) and Director of Governmental Affairs of KCP&L (2007-2008).

(e)
Ms. Fairchild was appointed Vice President, Chief Compliance Officer and Corporate Secretary of Great Plains Energy, KCP&L and GMO in 2010.  She was Senior Director of Investor Relations and Assistant Secretary (2010) and Director of Investor Relations (2008-2010) of Great Plains Energy, KCP&L and GMO.  

(f)
Ms. Humphrey was appointed Senior Vice President - Corporate Services and General Counsel of Great Plains Energy, KCP&L and GMO in 2016. She previously served as General Counsel (2010-2016) and Senior Vice President - Human Resources of Great Plains Energy, KCP&L and GMO (2012-2016).  She served as Vice President - Human Resources of Great Plains Energy, KCP&L and GMO (2010-2012). She was Senior Director of Human Resources and Interim General Counsel of Great Plains Energy, KCP&L and GMO (2010) and Managing Attorney of KCP&L (2007-2010).

(g)
Mr. Ives was appointed Vice President - Regulatory Affairs of KCP&L and GMO in 2013. He previously served as Senior Director - Regulatory Affairs of KCP&L and GMO (2011-2013). He was Assistant Controller of Great Plains Energy, KCP&L and GMO (2008 - 2011).

(h)
Ms. Wright was appointed Vice President - Corporate Planning, Investor Relations and Treasurer of Great Plains Energy, KCP&L and GMO in 2016. She previously served as Vice President - Investor Relations and Treasurer of Great Plains Energy, KCP&L and GMO (2014-2016). She served as Vice President - Business Planning and Controller of Great Plains Energy, KCP&L and GMO (2009-2014).  She was Controller of Great Plains Energy and KCP&L (2002-2008) and GMO (2008).

Available Information
Great Plains Energy's website is www.greatplainsenergy.com and KCP&L's website is www.kcpl.com. Information contained on these websites is not incorporated herein. The Companies make available, free of charge, on or through their websites, their annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (Exchange Act), as soon as reasonably practicable after the companies electronically file such material with, or furnish it to, the SEC. In addition, the Companies make available on or through their websites all other reports, notifications and certifications filed electronically with the SEC.
The public may read and copy any materials that the Companies file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549. For information on the operation of the Public Reference Room, please call the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site at http://www.sec.gov that contains reports, proxy statements and other information regarding the Companies.
Investors should note that the Companies announce material financial information in SEC filings, press releases and public conference calls.  Based on guidance from the SEC, the Companies may use the Investor Relations section of Great Plains Energy's website (www.greatplainsenergy.com) to communicate with investors about Great Plains Energy and KCP&L.  It is possible that the financial and other information posted there could be deemed to be material information.  The information on Great Plains Energy's website is not part of this document.
ITEM 1A. RISK FACTORS
Risks Relating to the Anticipated Merger with Westar:Utility Regulatory Risks:
The value of the shares of Holdco common stock that Great Plains Energy's shareholders receive upon the consummation of the anticipated merger may be less than the value of the shares of Great Plains Energy

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common stock as of the date of the Amended Merger Agreement, the date of this report or the date of the shareholders' meeting.
The exchange ratio for Great Plains Energy in the Amended Merger Agreement is fixedPrices are established by regulators and will not be adjusted in the event of any change in the stock price of Great Plains Energy prior to the anticipated merger. A significant amount of time will have elapsed between the dates when the shareholders of Great Plains Energy voted to approve the Amended Merger Agreement at the shareholders' meeting on November 21, 2017, and the date when the anticipated merger is completed. The absolute and relative price of shares of Great Plains Energy common stock may vary significantly between the date of the meetings, the date of this report and the date of the completion of the anticipated merger. These variations may be caused by, among other things, changes in the businesses, operations, results or prospects of Great Plains Energy and Westar, market expectations of the likelihood that the anticipated merger will be completed and the timing of completion, the prospects of post-merger operations, general market and economic conditions and other factors. In addition, it is impossible to predict accurately the market price of the Holdco common stock to be received by Great Plains Energy shareholders after the completion of the anticipated merger. Accordingly, the price of Great Plains Energy common stock on the date of this report and on the date of the meetings may not be indicative of the price immediately priorsufficient to completion of the anticipated merger and the price of Holdco common stock after the anticipated merger is completed.recover costs or provide for a return on investment.
The ability of Great Plains Energy and Westar to complete the anticipated merger is subject to various closing conditions, including the receipt of consents and approvals from governmental authorities, which may impose conditions that could adversely affect Great Plains Energy or cause the anticipated merger to be abandoned.
To complete the anticipated merger, (1) each of Great Plains Energy and Westar must also make certain filings with and obtain certain consents and approvals from various governmental and regulatory authorities, (2) the listing on the New York Stock Exchange of the shares of Holdco common stock to be issued to Great Plains Energy and Westar shareholders in the anticipated merger must be approved, (3) there cannot be any material adverse effect with respect to Great Plains Energy, Westar and their respective subsidiaries, (4) there cannot be any laws or judgments, whether preliminary, temporary or permanent, which may prevent, make illegal or prohibit the completion of the anticipated merger, (5) subject to certain materiality exceptions, the representations and warranties made by Great Plains Energy and Westar, respectively, must be accurate and the parties must comply with their respective obligations under the Amended Merger Agreement, (6) Great Plains Energy and Westar must receive certain tax opinions, (7) there cannot be any shares of Great Plains Energy preference stock outstanding and (8) Great Plains Energy must have not less than $1.25 billion in cash or cash equivalents on its balance sheet. If the foregoing conditions are not satisfied or waived, one or both of Great Plains Energy and Westar would not be required to complete the merger.
Great Plains Energy and Westar have not yet obtained the regulatory consents and approvals required to complete the anticipated merger. Governmental or regulatory agencies could seek to block or challenge the anticipated merger or could impose restrictions they deem necessary or desirable in the public interest as a condition to approving the anticipated merger. Great Plains Energy and Westar will be unable to complete the anticipated merger until the consents and approvals have been received from KCC, the MPSC, the NRC, FERC and The Federal Communication Commission (FCC) (collectively referred to as the “required governmental approvals”). Regulatory authorities may impose certain requirements or obligations as conditions for their approval. The Amended Merger Agreement may require Great Plains Energy and/or Westar to accept conditions from these regulators that could adversely impact the combined company. If the required governmental approvals are not received, or they are not received on terms that satisfy the conditions set forth in the Amended Merger Agreement, then neither Great Plains Energy nor Westar will be obligated to complete the anticipated merger.
In December 2017, the Federal Trade Commission (FTC) granted Great Plains Energy's request for early termination of the waiting period under the Hart-Scott-Rodino (HSR) Act.
Even after the statutory waiting period under the antitrust laws and even after completion of the anticipated merger, governmental authorities could seek to block or challenge the anticipated merger as they deem necessary or desirable in the public interest. In addition, in some jurisdictions, a private party could initiate an action under the antitrust laws challenging or seeking to enjoin the anticipated merger, before or after it is completed. Great Plains

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Energy or Westar may not prevail and may incur significant costs in defending or settling any action under the antitrust laws.
The shareholders' meetings at which the Great Plains Energy shareholders and the Westar shareholders voted to approve the transactions contemplated by the Amended Merger Agreement took place before all such approvals have been obtained and before the terms of any conditions to obtain such approvals that may be imposed are known. As a result, Great Plains Energy and Westar may make decisions after the meetings to waive a condition or approve certain actions required to obtain necessary approvals without seeking further shareholder approval. Such actions could have an adverse effect on the combined company.
In addition, the Amended Merger Agreement contains other customary closing conditions, which may not be satisfied or waived.
If Great Plains Energy and Westar are unable to complete the anticipated merger, Great Plains Energy would be subject to a number of risks, including the following:
Great Plains Energy would not realize the anticipated benefits of the anticipated merger, including, among other things, increased operating efficiencies and future cost savings;
the attention of management of Great Plains Energy may have been diverted to the anticipated merger rather than to its own operations and the pursuit of other opportunities that could have been beneficial;
the potential loss of key personnel during the pendency of the anticipated merger as employees may experience uncertainty about their future roles with the combined company;
Great Plains Energy will have been subject to certain restrictions on the conduct of their businesses, which may prevent Great Plains Energy from making certain acquisitions or dispositions or pursuing certain business opportunities while the anticipated merger is pending; and
the trading price of Great Plains Energy common stock may decline to the extentprices that the current market price reflects a market assumption thatFERC, KCC and MPSC authorize the anticipated merger will be completed.
Great Plains Energy can provide no assurance thatutility subsidiaries of Evergy to charge significantly influence the various closing conditions will be satisfied and that the required governmental approvals and other approvals will be obtained, or that any required conditions will not materially adversely affect the combined company following the anticipated merger. In addition, Great Plains Energy can provide no assurance that these conditions will not result in the abandonment or delay of the anticipated merger. The occurrence of any of these events individually or in combination could have a material adverse effect on the companies' results of operations and the trading price of Great Plains Energy common stock.
The Amended Merger Agreement contains provisions that limit Great Plains Energy's ability to pursue alternatives to the anticipated merger, could discourage a potential acquirer of Great Plains Energy from making a favorable alternative transaction proposal and, in certain circumstances, could require Great Plains Energy to pay a termination fee to the other party.
Under the Amended Merger Agreement, Great Plains Energy and Westar each are restricted from entering into alternative transactions. Unless and until the Amended Merger Agreement is terminated, subject to specified exceptions, each party is restricted from soliciting, initiating or knowingly encouraging, inducing or facilitating, or participating in any discussions or negotiations with any person regarding, or cooperating in any way with any person with respect to, any alternative proposal or any inquiry or proposal that would reasonably be expected to lead to an alternative proposal. Great Plains Energy and Westar each may terminate the Amended Merger Agreement and enter into an agreement with respect to a superior proposal only if specified conditions have been satisfied, including compliance with the provisions of the Amended Merger Agreement restricting solicitation of alternative proposals and requiring payment of a termination fee in certain circumstances. These provisions could discourage a third party that may have an interest in acquiring all or a significant part of Great Plains Energy from considering or proposing that acquisition, even if such third party were prepared to pay consideration with a higher market value

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than the market value proposed to be received or realized in the anticipated merger, or might result in a potential acquirer proposing to pay a lower price than it would otherwise have proposed to pay because of the added expense of the termination fee that may become payable in certain circumstances. As a result of these restrictions, Great Plains Energy may not be able to enter into an agreement with respect to a more favorable alternative transaction without incurring potentially significant liability to Westar.
The Amended Merger Agreement provides that in connection with the termination of the Amended Merger Agreement under specified circumstances relating to a failure to obtain regulatory approvals, a final and nonappealable order enjoining the consummation of the anticipated merger in connection with regulatory approvals or failure by Great Plains Energy to comply with its obligations under the Amended Merger Agreement to consummate the closing of the anticipated merger once all of the conditions have been satisfied, Great Plains Energy may be required to pay Westar a termination fee of $190 million. In addition, in the event that the Amended Merger Agreement is terminated by Westar under certain circumstances to enter into a definitive acquisition agreement with respect to a superior proposal, Westar may be required to pay Great Plains Energy a termination fee of $190 million. Similarly, in the event that the Amended Merger Agreement is terminated by Great Plains Energy under certain circumstances to enter into a definitive acquisition agreement with respect to a superior proposal, Great Plains Energy may be required to pay Westar a termination fee of $190 million.
Great Plains Energy will be subject to various uncertainties while the anticipated merger is pending that may cause disruption and may make it more difficult to maintain relationships with employees, suppliers, or customers.
Uncertainty about the effect of the anticipated merger on employees, suppliers and customers may have an adverse effect on Great Plains Energy. These uncertainties may impair the ability of Great Plains Energy to attract, retain and motivate key personnel until the anticipated merger is completed and for a period of time thereafter, and could cause customers, suppliers and others that deal with Great Plains Energy to seek to change or terminate existing business relationships with Great Plains Energy or not enter into new relationships or transactions.
Employee retention and recruitment may be particularly challenging prior to the completion of the anticipated merger, as employees and prospective employees may experience uncertainty about their future roles with the combined company. If, despite Great Plains Energy's retention and recruiting efforts, key employees depart or fail to continue employment because of issues relating to the uncertainty and difficulty of integration or a desire not to remain with the combined company, Great Plains Energy's financial results could be adversely affected. Furthermore, the combined company's operational and financial performance following the anticipated merger could be adversely affected if it is unable to retain key employees and skilled workers of Great Plains Energy. The loss of the services of key employees and skilled workers and their experience and knowledge regarding Great Plains Energy's businesses could adversely affect the combined company's future operating results and the successful ongoing operation of its businesses.
Great Plains Energy is subject to contractual restrictions in the Amended Merger Agreement that may hinder its operations pending the anticipated merger.
The Amended Merger Agreement restricts Great Plains Energy, without Westar's consent, from making certain acquisitions and taking other specified actions until the anticipated merger occurs or the Amended Merger Agreement terminates. These restrictions may prevent Great Plains Energy from pursuing otherwise attractive business opportunities and making other changes to its business prior to completion of the anticipated merger or termination of the Amended Merger Agreement.

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Failure to complete the anticipated merger, or significant delays in completing the anticipated merger, could negatively affect the trading price of Great Plains Energy common stock and the future business and financial results of Great Plains Energy.
Completion of the anticipated merger is not assured and is subject to risks, including the risks that approval of the anticipated merger by governmental agencies is not obtained or that other closing conditions are not satisfied. If the anticipated merger is not completed, or if there are significant delays in completing the anticipated merger, it could negatively affect the trading price of Great Plains Energy common stock and its future business and financial results, and Great Plains Energy will be subject to several risks, including the following:
Great Plains Energy may be liable for damages to Westar under the terms and conditions of the Amended Merger Agreement;
negative reactions from the financial markets, including declines in the price of Great Plains Energy common stock due to the fact that current prices may reflect a market assumption that the anticipated merger will be completed; and
having to pay certain significant costs relating to the anticipated merger, including, in certain circumstances, a termination fee.
Failure to successfully combine the businesses of Great Plains Energy and Westar in the expected time frame may adversely affect the future results of the combined company, and, consequently, the value of the Holdco common stock that Great Plains Energy shareholders receive as the merger consideration.
The success of the anticipated merger will depend, in part, on the ability of the combined company to realize the anticipated benefits and efficiencies from combining the businesses of Great Plains Energy and Westar. To realize these anticipated benefits, the businesses must be successfully combined. If the combined company is not able to achieve these objectives, or is not able to achieve these objectives on a timely basis, the anticipated benefits of the transactions may not be realized fully or at all. In addition, the actual integration may result in additional and unforeseen expenses, which could reduce the anticipated benefits of the anticipated merger. These integration difficulties could result in a decline in the market value of Holdco common stock and, consequently, result in a decline in the market value of the Holdco common stock that Great Plains Energy shareholders receive as part of the merger consideration and continue to hold following consummation of the anticipated merger.
Great Plains Energy will incur significant transaction and other merger-related costs in connection with the anticipated merger.
Great Plains Energy has incurred and expects to incur additional costs associated with combining the operations of the two companies, as well as transaction fees and other costs related to the anticipated merger. Additional unanticipated costs may also be incurred in the integration of the businesses of Great Plains Energy and Westar. Any net benefit from the anticipated elimination of duplicative costs, as well as the realization of other efficiencies related to the integration of the businesses, may not be achieved in the near term or at all. Transaction costs could have a material adverse impact on the results of Great Plains Energy, and the failure to achieve the anticipated benefits and efficiencies from the merger, or the incurrence of additional expenses, could have a material adverse impact on the results of operations of the combined company and its ability to pay dividends after closing. In turn, the current market value of Great Plains Energy common stock, or the future market value of Holdco common stock that Great Plains Energy shareholders receive as merger consideration, could be adversely impacted.
The market price of Holdco's common stock after the anticipated merger may be affected by factors different from those affecting the shares of Great Plains Energy or Westar currently.
Upon completion of the anticipated merger, the businesses of the combined company will differ from those of Great Plains Energy and Westar prior to the anticipated merger in important respects and, accordingly, the results of operations of the combined company and the market price of Holdco's shares of common stock following the anticipated merger may be affected by factors different from those currently affecting the independent results of operations of Great Plains Energy and Westar.

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Each of Westar and Great Plains Energy and their respective subsidiaries has substantial amounts of indebtedness. Consequently, the combined company will have substantial indebtedness following the anticipated merger. As a result, it may be difficult for the combined company to pay or refinance its debts or take other actions, and the combined company may need to divert its cash flow from operations to debt service payments.
The combined company's debt service obligations with respect to this indebtedness could have an adverse impact on its earnings and cash flows for as long as the indebtedness is outstanding.
The combined company's indebtedness could also have important consequences to holders of Holdco common stock. For example, it could:
make it more difficult for the combined company to pay or refinance its debts as they become due during adverse economic and industry conditions because any decrease in revenues could cause the combined company to not have sufficient cash flows from operations to make its scheduled debt payments;
require a substantial portion of the combined company's cash flows from operations to be used for debt service payments, thereby reducing the availability of its cash flow to fund working capital, capital expenditures, acquisitions, dividend payments and other general corporate purposes;
result in a downgrade in the rating of the combined company's indebtedness, which could limit its ability to borrow additional funds or increase the interest rates applicable to its indebtedness; or
require that additional terms, conditions or covenants be placed on Holdco.
Based upon current levels of operations, Holdco expects to be able to generate sufficient cash on a consolidated basis to make all of the principal and interest payments when such payments are due under the combined company's existing credit facilities, indentures and other instruments governing its outstanding indebtedness, but there can be no assurance that the combined company will be able to repay or refinance such borrowings and obligations.
The anticipated benefits of combining the companies may not be realized.
Great Plains Energy entered into the Amended Merger Agreement with the expectation that the anticipated merger would result in various benefits, including, among other things, increased operating efficiencies and future cost savings that cannot be quantified with certainty at this time. Although Great Plains Energy expects to achieve the anticipated benefits of the anticipated merger, achieving them is subject to a number of uncertainties, including:
whether U.S. federal and state public utility, antitrust and other regulatory authorities whose approval is required to complete the anticipated merger impose conditions on the merger, which may have an adverse effect on the combined company, including its ability to achieve the anticipated benefits of the merger;
the ability of the two companies to combine certain of their operations or take advantage of expected growth opportunities;
general market and economic conditions;
general competitive factors in the marketplace; and
higher than expected costs required to achieve the anticipated benefits of the merger.
No assurance can be given that these benefits will be achieved or, if achieved, the timing of their achievement. Failure to achieve these anticipated benefits could result in increased costs and decreases in the amount of expected revenues or net income of the combined company.

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The anticipated merger may not be accretive to Great Plains Energy's earnings and may cause dilution to Great Plains Energy's earnings per share, which may negatively affect the market price of Holdco common stock that Great Plains Energy's shareholders receive upon the consummation of the anticipated merger.
Great Plains Energy currently anticipates that the anticipated merger will be accretive to Great Plains Energy's forecasted earnings per share on a standalone basis. This expectation is based on preliminary estimates, including with respect to the anticipated timing and amount of common stock repurchases following the closing of the merger, any of which may materially change. Great Plains Energy may encounter additional transaction and integration-related costs than it currently anticipates, may fail to realize all of the benefits anticipated in the merger or may be subject to other factors that affect preliminary estimates or its ability to realize operational efficiencies. Any of these factors could cause a decrease in the combined company's earnings per share or decrease or delay the expected accretive effect of the anticipated merger and contribute to a decrease in the price of Holdco common stock.
The anticipated merger will combine two companies that are currently affected by developments in the electric utility industry, including changes in regulation and increased competition. A failure to adapt to the changing regulatory environment after the anticipated merger could adversely affect the stability of the combined company's earnings and could result in the erosion of its market positions, revenues and profits.
Because Great Plains Energy, Westar and their respective subsidiaries are regulated in the U.S. at the federal level and in several states, the two companies have been and will continue to be affected by legislative and regulatory developments. After the anticipated merger, the combined company and/or its subsidiaries will be subject in the U.S. to extensive federal regulation as well as to state regulation in Missouri and Kansas. Each of these jurisdictions has implemented, is in the process of implementing or possibly will implement changes to the regulatory and legislative framework applicable to the electric utility industry. These changes could have a material adverse effect on the combined company.
The costs and burdens associated with complying with these regulatory jurisdictions may have a material adverse effect on the combined company. Moreover, potential legislative changes, regulatory changes or otherwise may create greater risks to the stability of utility earnings generally. If the combined company is not responsive to these changes, it could suffer erosion in market position, revenues and profits as competitors gain access to the service territories of its utility subsidiaries.
The price of Holdco common stock that Great Plains Energy's shareholders receive upon the consummation of the anticipated merger may experience volatility.
Following the consummation of the anticipated merger, the price of Holdco common stock may be volatile. Some of the factors that could affect the price of Holdco common stock are quarterly increases or decreases in revenue or earnings, changes in revenue or earnings estimates by the investment community, the ability of Holdco to implement its integration strategy and to realize the expected synergies and other benefits from the anticipated merger and speculation in the press or investment community about Holdco's financial condition or results of operations. General market conditions and U.S. economic factors and political events unrelated to the performance of Holdco may also affect its stock price. For these reasons, shareholders should not rely on recent trends in the price of Great Plains Energy common stock to predict the future price of Holdco's common stock or its financial results.
Utility Regulatory Risks:
Complex utility regulation could adversely affect theEvergy Companies' results of operations, financial position and cash flows.
The Companies are subject to, or affected by, extensive federal and state utility regulation, including regulation by the MPSC, KCC, FERC, NRC, North American Electric Reliability Corporation (NERC) and SPP.  The Companies must address in their business planning and management of operations the effects of existing and proposed laws and regulations and potential changes in the regulatory framework, including initiatives by federal and state legislatures, RTOs, utility regulators and taxing authorities.  Failure of the Companies to obtain adequate rates or regulatory approvals in a timely manner, new or changed laws, regulations, standards, interpretations or other legal requirements, deterioration of the Companies' relationship with regulators and increased compliance costs and potential non-compliance consequences may materially affect the Companies' results of operations, financial

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position and cash flows.  Additionally, regulators may impose burdensome restrictions and conditions on the Companies' transactions and ventures, rendering them less attractive from a financial or operational perspective. Certain of these risks are addressed in greater detail below.
The outcome of retail rate proceedings could have a material impact on the business and is largely outside the Companies' control.
The rates that KCP&L and GMOIn general, utilities are allowed to charge their customers significantly influence the Companies' results of operations, financial position and cash flows.  Theserecover in customer rates are subject to the determination, in large part, of governmental entities outside of the Companies' control, including the MPSC, KCC and FERC.  
The utility rate-setting principle generally applicable to KCP&L and GMO iscosts that rates should provide a reasonable opportunity to recover expenses and investmentswere prudently incurred to provide utility service, plus a reasonable return on such investments.  Various expenses incurred by KCP&L and GMOinvested capital.  There can be no assurance, however, that regulators will determine costs to have been excluded from ratesprudently incurred. Further, the amounts approved by the MPSC and KCC in past rate cases as not being prudently incurred or not providing utility customer benefit, and there is a risk that certain expenses incurred in the futureregulators may not be recovered in rates. Third-parties often intervene insufficient to allow for a recovery of costs or provide for an adequate return on and of capital investments. Also, amounts that were approved by regulators may be appealed, modified, limited or eliminated by subsequent regulatory or legislative actions. A failure to recover costs or earn a reasonable return on invested capital could have a material adverse effect on the utilities' rate casesresults of operations, financial position and argue that certain costs have not been prudently incurred or are otherwise not recoverable in rates.  The MPSCcash flows of Evergy and KCC also have in the past and may in the future exclude from rates all or a portion of investments in various facilities as not being prudently incurred or not being useful in providingits utility service.  
As discussed in the "Environmental Risks" and "Financial Risks" sections below, the Companies' capital expenditures are substantial and there is a risk that a portion of the capital costs could be excluded from rates in future rate cases.subsidiaries.
The Evergy Companies are also exposed to cost-recovery shortfalls due to the inherent "regulatory lag" in the rate-setting process, especially during periods of significant cost inflation or declining retail usage, as KCP&L's and GMO'sprocess. This is because utility rates are generally based on historical information and, except for certain situations where regulators allow for recovery of expenses through use of a formula that tracks costs, are not subject to adjustment between rate cases. Evergy Kansas Central and Evergy Metro agreed to a five-year base rate moratorium in Kansas beginning in December 2018. In addition, Evergy Metro and Evergy Missouri West utilize a plant-in service accounting (PISA) legislative mechanism in Missouri, which requires each company to keep base rates constant for three years following Evergy Metro's and Evergy Missouri West's last general rate case and limits the extent to which prices can increase thereafter to approximately 3% on an annualized basis. Evergy Metro and Evergy Missouri West are currently operating under PISA constraints. Each filed general rate cases other than principallyin 2022 and will be subject to PISA constraints for fuel, purchased power, transmission and property taxes for KCP&L in Kansas; fuel, purchased power, certain transmission costs and demand-side investments for KCP&L in Missouri; and fuel, purchased power, certain transmission costs, demand-side investments and renewable energy (solar rebates) for GMO.three years following conclusion of the general rate cases. The rate cases are expected to conclude by December 2022. These and other factors may result in under-recovery of costs or failure to earn the authorized return on investment, or both.
Furthermore, while inflation has been relatively muted in recent years, during 2021, the United States' economy experienced a substantial rise in the inflation rate. While the Federal Reserve Bank has announced certain measures to combat rising inflation, there is increased uncertainty in the near-term outlook as to whether inflation will continue. Increases in inflation raise the Evergy Companies' costs for labor, materials and services. A failure to recover increased capital costs could result in under-recovery of costs.
Failure to timely recover the full investment costs of capital projects, the impact of renewable energy and energy efficiency programs, other utility costs and expenses due to regulatory disallowances, regulatory lag or other factors could lead to lowered credit ratings, reduced access to capital markets, increased financing costs, lower flexibility due to constrained financial resources and increased collateral security requirements or reductions or delays in planned capital expenditures.  In response to competitive, economic, political, legislative, public perception (including, but not limited to, the Companies' environmental reputation) and regulatory pressures, the CompaniesEvergy's utility subsidiaries may be subject to rate moratoriums, rate refunds, limits on rate increases, lower allowed returns on investments or rate reductions, including phase-in plans designed to spread the impact of rate increases over an extended period of time for the benefit of customers. In addition, Transource, which Evergy owns a 13.5% interest, is focused on the development of competitive electric transmission projects across the United States and faces similar risks with respect to projects located in regulatory jurisdictions outside of Kansas and Missouri. Any of these results could have a material adverse effect on the results of operations, financial condition and cash flows of the Evergy Companies.
RegulatoryLegislative and regulatory requirements regarding utility operations may increase costs and may exposeresult in compliance penalties.
FERC, the Companies to compliance penalties or adverse rate consequences.
The FERC, NERCNorth American Electric Reliability Corporation (NERC) and SPP have implemented and enforce an extensive set of transmission system reliability, cybersecurity and critical infrastructure protection standards that
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apply to public utilities, including KCP&L and GMO.utilities.  The MPSC and KCC have the authority to implement utility operational standards and requirements, such as vegetation management standards, facilities inspection requirements and quality of service standards.  In addition, the Companies areEvergy is also subject to health, safety and other requirements enacted by the Occupational Safety and Health Administration, the Department of Transportation, the Department of Labor and other federal and state agencies.  As discussed more fully under "Operational Risks,"below, the NRC extensively regulatesEvergy Companies are also subject to numerous environmental laws and regulations, as well as laws and regulations related to nuclear power plants, including Wolf Creek.generation. The costs of complying with existing, new or modified regulations, standards and other requirements could have ana material adverse effect on the

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Companies' results of operations, financial position and cash flows as aof the Evergy Companies.  Furthermore, regulatory changes could result of increased operationsin operational changes that increase costs or maintenance and capital expenditures for new facilities or to repair or improve existing facilities.adversely impact the Evergy Companies' prospects. In addition, failure to meet quality of service, reliability, cybersecurity, critical infrastructure protection, operational or other standards and requirements could expose the Evergy Companies to penalties, additional compliance costs or adverse rate consequences.consequences, any of which could have a material adverse impact on their results of operations, financial position and cash flows.
Environmental Risks:
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.
The Evergy Companies are subject to currentextensive and potential environmental requirements and the incurrence of environmental liabilities, any or all of which may adversely affect their business and financial results.
The Companies are subject to extensiveevolving federal, state and local environmental laws, regulations and permit requirements relating to air and water quality, waste management and hazardous substance disposal, protected natural resources (such as wetlands, endangered species and other protected wildlife) and health and safety. See Item 1. Business - Environmental Matters and Note 14 to the consolidated financial statements for additional information. In additiongeneral, over time these laws and regulations have become and continue to imposing continuingbecome increasingly stringent and compliance obligationswith these laws and remediation costsregulations require an increasing share of capital and operating resources, which may reduce the amount of resources available for historical and pre-existing conditions,other business objectives, including capital investments.
Compliance with these laws, regulations and permits authorizerequirements requires significant capital and operating resources. Regulators may also disagree with the impositionEvergy Companies' interpretation or application of these laws, regulations and requirements. The failure to comply with these laws, regulations and requirements could result in substantial penalties for noncompliance, including fines, injunctive relief and other sanctions. ThereFor example, Evergy Kansas Central recently decommissioned the Tecumseh Energy Center and removed all coal combustion residuals (CCRs) from a surface impoundment in a manner it believed complied with federal law, but the EPA has recently commenced an evaluation of whether Evergy Kansas Central should have taken additional or alternative actions, even though the facility is alsoclosed.
The EPA has begun issuing CCR Part A rule extension application determinations for companies that applied for approval to operate unlined or clay-lined impoundments past April 2021. The Evergy Companies did not apply for an extension, however, these proposed determinations include extensive CCR rule interpretations and compliance expectations that may impact all owners of CCR units. The new interpretations could require modified compliance plans such as different methods of CCR unit closure. Additionally, more stringent remediation requirements for units that are in corrective action or forced to go into corrective action could result in substantial costs or operational impacts.
In January 2022, the EPA announced changes following a risktour by the EPA administrator conducted in the second half of 2021 to address issues in communities that are marginalized, underserved and overburdened by pollution. These changes will include additional unannounced inspections of suspected non-compliant facilities, deploying new environmental lawsassets to monitor air pollution and regulations, new administrative or judicial interpretationsa general increase in overall monitoring and oversight. The EPA's announcement focused on industries in Louisiana, Mississippi and Texas but includes similar agency-wide action in parallel. The Evergy Companies have multiple power plants located in communities that would be considered a higher priority by the EPA based on existing demographics. These sites could be subject to additional monitoring and unannounced inspections in the future.
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Table of environmental laws and regulations, or the requirements in new or renewed environmental permits could adversely affect the Companies' operations.  In addition, there is also a risk of lawsuits brought by third parties alleging violations of environmental commitments or requirements, claiming creation of a public nuisance or other matters, and seeking injunctions or monetary damages or other damages. Certain federal courts have held that state and local governments and private parties have standing to bring climate change tort suits seeking company-specific emission reductions and damages.Contents
Environmental permits are subject to periodic renewal, which may result in more stringent permit conditions and limits.  New facilities, or modifications of existing facilities, may require new environmental permits or amendments to existing permits.  Delays in the environmental permitting process, public opposition and challenges, denials of permit applications, limits or conditions imposed in permits and the associated uncertainty may materially adversely affect the cost and timing of projects, and thus materially adversely affect the Companies' results of operations, financial position and cash flows.
KCP&Lflows of the Evergy Companies. In addition, compliance with environmental laws, regulations and GMO periodically seekrequirements could alter the way assets are managed, which in turn could result in retiring assets earlier than expected, recording asset retirement obligations (AROs) or having a regulator disallow recovery of capital costs that had been prudently incurred in connection with those assets. There is also a risk of lawsuits alleging violations of environmental laws, regulations or requirements, claiming creation of a public nuisance or other matters, and expenses for environmental compliance and remediation through rate increases; however, there can be no assurance that recovery of these costs would be granted.  KCP&L and GMO may be subject to material adverse rate treatment in response to competitive, economic, political, legislativeseeking injunctions or regulatory pressures and/monetary damages or public perception of the Companies' environmental reputation. The costsother relief.
Costs of compliance or noncompliance with environmental laws, regulations and requirements, remediation costs, adverseor fines, penalties or negative lawsuit outcomes, of lawsuits, or failure to timely recover environmental costsif not recovered in rates from customers, could have a material adverse effect on the Companies' results of operations, financial position and cash flows.  Certain of these matters are discussed in more detail below.  See Note 15 to the consolidated financial statements for additional information regarding certain significant environmental matters and Great Plains Energy's and KCP&L's current estimates of capital expenditures to comply with environmental regulations.
Air and Climate Change
The Companies' current generation capacity is primarily coal-fired, and is estimated to produce about one ton of carbon dioxide (CO2) per MWh, or approximately 17 million tons and 13 million tons of CO2 per year for Great Plains Energy and KCP&L, respectively. Management believes it is possible that additional federal or relevant state or local laws or regulations could be enacted to address global climate change.  At the international level, the Paris Agreement was adopted in December 2015 by nearly 200 countries and became effective in November 2016. The Paris Agreement does not result in any new, legally binding obligations on the U.S. to meet a particular greenhouse gas emissions target, but establishes a framework for international cooperation on climate change. In June 2017, U.S. President Donald Trump announced the U.S. would withdraw from the Paris Agreement. Under the rulesflows of the Paris Agreement, the earliest any country can withdraw is November 2020. Other international agreements legally binding on the U.S. may be reached in the future. Greenhouse gas legislation has the potential of having significant financial and operational impacts on Great Plains Energy and KCP&L; however, the ultimate financial and operational consequences to Great Plains Energy and KCP&L cannot be determined until such legislation is passed. In

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the absence of new Congressional mandates, the EPA is proceeding with regulation of greenhouse gases under the existing Clean Air Act.
In August 2015, the EPA finalized CO2 emission standards for new, modified and reconstructed affected fossil-fuel-fired electric utility generating units. The standards would not apply to Great Plains Energy's and KCP&L's existing units unless the units were modified or reconstructed in the future. Also in August 2015, the EPA finalized its Clean Power Plan which sets CO2 emission performance rates for existing affected fossil-fuel-fired electric generating units. Nationwide, by 2030, the EPA projects the Clean Power Plan would achieve CO2 emission reductions from the power sector of approximately 32% from CO2 emission levels in 2005.
In February 2016, the U.S. Supreme Court granted a stay of the Clean Power Plan putting the rule on hold pending review in the U.S. Court of Appeals for the District of Columbia Circuit and any subsequent review by the U.S. Supreme Court if such review is sought. In October 2017, the EPA proposed to repeal the Clean Power Plan on the basis that it exceeded the EPA's statutory authority. In December 2017, the EPA issued an advance notice of proposed rulemaking (ANPRM) to solicit comments as the agency considers proposing a future rule to replace the Clean Power Plan. In the ANPRM, the EPA is considering proposing emission guidelines to limit greenhouse gas emissions from existing electric utility generating units. Compliance with the Clean Power Plan or any replacement rule has the potential of having significant financial and operational impacts on Great Plains Energy and KCP&L; however, the ultimate financial and operational consequences to Great Plains Energy and KCP&L cannot be determined until the outcome of the EPA's proposal to repeal the Clean Power Plan and pending litigation is known.
Water
The Clean Water Act and associated regulations enacted by the EPA form a comprehensive program to restore and preserve water quality.  All of the Companies' generating facilities, and certain of their other facilities, are subject to the Clean Water Act.
In May 2014, the EPA finalized regulations pursuant to Section 316(b) of the Clean Water Act regarding cooling water intake structures pursuant to a court approved settlement. KCP&L generation facilities with cooling water intake structures are subject to the best technology available standards based on studies completed to comply with such standards. The rule provides flexibility to work with the states to develop the best technology available to minimize aquatic species impacted by being pinned against intake screens (impingement) or drawn into cooling water systems (entrainment).
KCP&L holds a permit from the Missouri Department of Natural Resources (MDNR) covering water discharge from its Hawthorn Station. The permit authorizes KCP&L to, among other things, withdraw water from the Missouri River for cooling purposes and return the heated water to the Missouri River. KCP&L has applied for a renewal of this permit and the EPA has submitted an interim objection letter regarding the allowable amount of heat that can be contained in the returned water. Until this matter is resolved, KCP&L continues to operate under its current permit. Great Plains Energy and KCP&L cannot predict the outcome of this matter; however, while less significant outcomes are possible, this matter may require a reduction in generation, installation of cooling towers or other technology to cool the water, or both, any of which could have a significant impact on Great Plains Energy's and KCP&L's results of operations, financial position and cash flows.
Further, the possible effects of climate change, including potentially increased temperatures and reduced precipitation, could make it more difficult and costly to comply with the current and final permit requirements.
Solid Waste
Solid and hazardous waste generation, storage, transportation, treatment and disposal are regulated at the federal and state levels under various laws and regulations.  In April 2015, the EPA published final regulations to regulate coal combustion residuals (CCRs) under the Resource Conservation and Recovery

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Act (RCRA) Subtitle D to address the risks from the disposal of CCRs generated from the combustion of coal at electric generating facilities. In September 2017, the EPA granted industry petitions to reconsider certain provisions of the CCR rule. The Companies use coal in generating electricity and dispose of CCRs in both on-site facilities and facilities owned by third parties.  Current and future EPA and state regulations regarding the handling, disposal and remediation of CCRs could have a material adverse effect on the Companies' results of operations, financial position and cash flows.
Remediation
Under current law, the Companies are also generally responsible for any liabilities associated with the environmental condition of their properties and other properties at which the Companies arranged for the disposal or treatment of hazardous substances, including properties that they have previously owned or operated, such as manufactured gas plants (MGP), regardless of whether they were responsible for the contamination or whether the liabilities arose before, during or after the time they owned or operated the properties or arranged for the disposal or treatment of hazardous substances.
Due to all of the above, the Companies' projected capital and other expenditures for environmental compliance are subject to significant uncertainties, including the timing of implementation of any new or modified environmental requirements, the limits imposed by such requirements and the types and costs of the compliance alternatives selected by theEvergy Companies.  As a result, costs to comply with environmental requirements cannot be estimated with certainty, and actual costs could be significantly higher than projections.  New environmental laws and regulations affecting the operations of the Companies may be adopted, and new interpretations of existing laws and regulations could be adopted or become applicable to the Companies or their facilities, any of which may materially adversely affect the Companies' business, adversely affect the Companies' ability to continue operating its power plants as currently done and substantially increase environmental expenditures or liabilities in the future.
Financial Risks:
Financial market disruptions andor declines in the Evergy Companies' credit ratings may increase financing costs and/orand limit access to the credit markets, which may adversely affect liquidity and financial results.
The Evergy Companies rely on funds from operations and access to short-term money markets, revolving credit facilities provided by financial institutions and long-term capital markets as significant sources of liquidity for capital requirements not satisfied by cash flows from operations.  The Companies also rely on bank-provided credit facilities for credit support, such as letters of credit, to support operations.  The amount of credit support required for operations varies and is impacted by a number of factors.  
Great Plains Energy, KCP&L, GMO and certain of their securities are rated by Moody's Investors Service and S&P Global Ratings.  These ratings impact the Companies' cost of funds and Great Plains Energy's ability to provide credit support for its subsidiaries.  The interest rates on borrowings under the Companies' revolving credit agreements are subject to increase as their respective credit ratings decrease.  The amount of collateral or other credit support required under power supply and certain other agreements is also dependent on credit ratings.  
Conditions in the U.S. capital and credit markets may deteriorateto fund capital expenditures and for working capital and liquidity. Disruption in capital or credit markets, increases in interest rates, deterioration in the future forfinancial condition of the financial institutions on which the Evergy Companies rely, credit rating downgrades, a variety of reasons, including, among others: instability in global markets, political uncertaintydecrease in the U.S.market price of Evergy's common stock or abroad, fluctuationsa decrease or disappearance in the price of oil, geopolitical instabilitydemand for debt securities issued by the Evergy Companies or other unforeseen events both in the U.S. and around the world. Adverse market conditions or decreases in Great Plains Energy's, KCP&L's or GMO's credit ratingssubsidiaries could have material adverse effects on the Evergy Companies.  These effects could include, among others: reduced access to capital and increased cost of funds;borrowed funds and collateral requirements; dilution resulting from equity issuances at reduced prices; changes in the type and/or increases in the amount of collateral or other credit support obligations required to be posted with contractual counterparties; increased nuclear decommissioning trust and pension and other post-retirement benefit plan funding requirements; reduced ability to pay dividends; rate case disallowance of KCP&L's or GMO's costs of capital; reductions in or delays of capital expenditures; or reductionsand limitations in Great Plains Energy'sthe ability of Evergy to provide credit support for its subsidiaries. Any
The Evergy Companies plan to make significant capital investments in renewable generation and to enhance the customer experience, improve reliability and resiliency and improve efficiency, which are expected to be funded with cash flows from operations and debt. If cash flows from operations are lower than expected or the costs of these resultscapital investments are higher than expected, additional debt will be required to fund the investments, which, in turn, may create pressure on the Evergy Companies' credit ratings or result in a ratings downgrade and increase their cost of capital. In 2021, a credit ratings agency assigned the Evergy Companies a negative outlook, while affirming ratings, due to perceived risk related to increased capital expenditures and the ability to earn a return of and on those investments through upcoming rate cases. Further, Evergy Kansas Central and Evergy Metro have outstanding tax-exempt bonds that may be put back to the respective issuer at the option of the holders, which could adversely affect the Companies' results of operations, financial position and cash flows.impact liquidity. In addition, market disruption and volatility could have an adverse impact on the Companies'Evergy's lenders, suppliers and other counterparties or customers, causing them to fail to meet their obligations.

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Great Plains Energy has guaranteed some of GMO's long-term and short-term debt and payments under these guarantees may adversely affect Great Plains Energy's liquidity.
Great Plains Energy has issued guarantees covering $95.5 million of GMO's long-term debt. Great Plains Energy also guarantees GMO's commercial paper program. At December 31, 2017, GMO had $209.3 million of commercial paper outstanding.  The guarantees obligate Great Plains Energy to pay amounts owed by GMO directly to the holders of the guaranteed debt in the event GMO defaults on its payment obligations.  Great Plains Energy may also guarantee debt that GMO may issue in the future.  Any guarantee payments could adversely affect Great Plains Energy's liquidity.
The inability of Great Plains Energy's subsidiaries to provide sufficient dividends to Great Plains Energy, or the inability otherwise of Great Plains Energy to pay dividends to its shareholders and meet its financial obligations would have an adverse effect.obligations.
Great Plains EnergyEvergy is a holding company with no significant operations of its own.  The primary source of funds for payment of dividends to its shareholders and its other financial obligations is dividends paid to it by its direct subsidiaries, particularly KCP&LEvergy Kansas Central, Evergy Metro and GMO.Evergy Missouri West.  Evergy's subsidiaries are separate legal entities and have no obligation to provide Evergy with funds. The ability of Great Plains Energy'sEvergy's subsidiaries to pay dividends or make other distributions, and accordingly, Great Plains Energy'sEvergy's ability to pay dividends on its common stock and meet its financial obligations, principally depends on the actual and projected earnings and cash flow,flows, capital requirements and general financial position of its subsidiaries, as well as regulatory factors, financial covenants, general business conditions and other matters.
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In addition, Great Plains Energy, KCP&L and GMOthe Evergy Companies are subject to certain corporate and regulatory restrictions and financial covenants that could affect their ability to pay dividends.  Great Plains Energy's articles of incorporation restrict the payment of common stock dividends in the event common equity is 25% or less of total capitalization. Under the Federal Power Act, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West generally can pay dividends only out of retained earnings. The revolvingEach of Evergy Metro and Evergy Missouri West has committed to Missouri regulators to not pay dividends to Evergy if its credit rating falls below BBB- for S&P Global Ratings or Baa3 for Moody's Investor Services. Each of Evergy Kansas Central and Evergy Metro has committed to Kansas regulators to not pay dividends to Evergy if (i) the payment would result in an increase in the utility's debt level (excluding short-term debt and debt due within one year) above 60 percent of its total capitalization, absent approval from the KCC or (ii) if its credit rating falls below BBB- for S&P Global Ratings or Baa3 for Moody's Investor Services. Under various debt agreements, of Great Plains Energy, KCP&L and GMO and the note purchase agreement for GMO's Series A, B and C Senior Notes contain a covenant requiring each companyEvergy Companies are also required to maintain a consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00, at all times. Underwhich could restrict the Amended Merger Agreement, Great Plains Energy is also restricted from paying a quarterly common stock dividend in excessamount of $0.275 per share withoutdividends the consent of Westar. See Note 11Evergy Companies are permitted to the consolidated financial statements for additional information.  The Great Plains Energy Board of Directors (Great Plains Energy Board) regularly evaluates the common stock dividend policy and determines an appropriate dividend each quarter, after taking into account such factors as, among other things, earnings, financial condition and cash flows from KCP&L and GMO, as well as general economic conditions.  Great Plains Energypay. Evergy cannot assure common shareholders that the dividendguarantee dividends will be paid in the future or that, if paid, dividends will satisfy announced targets or investor expectations or be at the same amount orpaid with the same frequency as in the past.
Market performance, increasedIn addition, from time to time Evergy has in the past and may in the future guarantee debt obligations of its subsidiaries. Under the financing agreements to which Evergy is a party, a guarantee of debt may be considered indebtedness for purposes of complying with financial covenants that dictate the extent to which Evergy can borrow money, and any guarantee payments could adversely affect Evergy's liquidity and ability to service its own debt obligations.
Increasing costs associated with defined benefit retirement and postretirement plans, health care plans and other employee retirementsbenefits could adversely affect Evergy's financial position and retirement plan regulations could significantly impact retirement plan funding requirements and associated cash needs and expenses.liquidity.
Substantially all of the Companies' and WCNOC's employees participate inEvergy maintains defined benefit retirement and other post-retirement plans.  Former employees also have accrued benefits in definedemployee benefit retirementplans for certain current and other post-retirement plans.former employees. The costs of these plans depend on a number of factors, including the rates of return on plan assets, the level and nature of the provided benefits, discount rates, the interest rates used to measure required minimum funding levels, changes in benefit design, changes in laws or regulations and the Companies'amount of any required or voluntary contributions to the plans.  The Evergy Companies currently have substantial unfunded liabilities under these plans.  Also, if the rate of retirements exceeds planned levels, or if these plans experience adverse market returns on investments or if interest rates materially fall, the Companies'required or voluntary contributions to the plans could rise substantially over historical levels.be material.  In addition, changes in accounting rules and assumptions related to future costs, returns on investments, interest rates and other actuarial assumptions, including projected retirements, could have a significant adverse impact on the Companies' results of operations, financial position and cash flows.flows of the Evergy Companies.
The usecosts of derivative contractsproviding health care benefits to employees and retirees have increased in recent years and may continue to rise in the normal course of businessfuture. Future legislative changes related to health care could result in losses thatalso cause significant changes to benefit programs and costs. The increasing costs associated with health care plans could negativelyhave a significant adverse impact on the Companies' results of operations, financial position and cash flows.flows of the Evergy Companies.
The Evergy Companies are subject to commodity and other risks associated with energy markets.
The Evergy Companies are required to maintain generation capacity that satisfies regulatory mandates and are obligated to provide power when required by the SPP or pursuant to contractual obligations. Although the Evergy Companies generally have regulatory mechanisms that allow them to recover the cost of fuel and purchased power necessary to satisfy these requirements, regulatory or legislative actions could limit, eliminate or delay recovery of these expenses after the expenses have been incurred.

The Evergy Companies engage in the wholesale and retail sale of electricity and the wholesale purchase of electricity as part of their regulated electric operations in addition to limited energy marketing activities and the management of third-party generation facilities. These activities expose the Evergy Companies to risks associated with the price of electricity and other energy-related products, as well credit exposure to their counterparties. Exposure to these risks is affected by a number of factors, including the availability and cost of fuel and power that the Evergy Companies purchase on the wholesale markets to serve customer load or to satisfy their regulatory or contractual obligations, the ability or effectiveness of strategies utilized by the Evergy Companies to hedge these risks, the extent to which the Evergy Companies may be required to post collateral for the benefit of third parties and the risk that counterparties fail to fulfill their obligations to the Evergy Companies. Market volatility can
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increase or create unanticipated risks. Regional transmission organizations and independent system operators may also retroactively reprice transactions following execution.

Subject to certain regulatory constraints, the Evergy Companies use derivative instruments, such as transmission congestion rights (TCRs), swaps, options, futures and forwards, to manage commodity and financial risks. Losses could be recognized as a result of volatility in the market values of these contracts, if a counterparty fails to perform or if the underlying transactions, which the derivative instruments are intended to

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hedge, fail to materialize. In the absence of actively quoted market prices and pricing information from external sources, theThe valuation of these financial instruments can involve management'smanagement’s judgment or the use of estimates. As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these contracts. The Evergy Companies cannot assure that their risk management practices will be effective or will mitigate all risks.
As
The results of operations, financial position and liquidity of the Evergy Companies could be materially adversely affected if the Evergy Companies fail to recover, or experience a service providerdelay in the recovery of, fuel and purchased power expenses; if the Evergy Companies fail to GMO, KCP&L may have exposureadequately hedge or mitigate commodity or energy market risks; if the Evergy Companies are required to GMO'sprovide collateral in amounts greater than planned; if energy marketing transactions are retroactively repriced; or if counterparties fail to fulfill obligations to the Evergy Companies.
Tax legislation and an inability to utilize tax credits could adversely impact results of operations, financial performanceposition and operations.liquidity.
GMO has no employeesTax laws and regulations can adversely affect, among other things, financial results, liquidity, credit ratings and the valuation of assets, such as deferred income tax assets. The Evergy Companies regularly assess their ability to utilize tax benefits, including those in the form of net operating loss (NOL), tax credit and other tax carryforwards, that are recorded as deferred income tax assets on its own.  KCP&L employees operate and manage GMO's properties, and KCP&L charges GMO for the costbalance sheets to determine whether a valuation allowance is necessary. A reduction in, or disallowance of, these services.  These arrangements may pose risks to KCP&L, including possible claims arising from actions of KCP&L employees in operating GMO's properties and providing other services to GMO.  KCP&L's claims for reimbursement for services provided to GMO are unsecured and rank equally with other unsecured obligations of GMO.  KCP&L's ability to be reimbursed for the costs incurred for the benefit of GMO dependstax benefits could have an adverse impact on the financial results and liquidity of the Evergy Companies.
Additionally, changes in corporate tax rates or policy changes, as well as any inability to generate enough taxable income in the future to utilize all tax benefits before they expire, could have an adverse impact on the results of operations, financial position and liquidity of the Evergy Companies. In addition, the Evergy Companies construct and operate renewable energy facilities that generate tax credits that reduce federal income tax obligations. The amount of tax credits is dependent on several factors, including the amount of electricity produced and the applicable tax credit rate. A variety of factors, including transmission constraints, the ability to timely complete construction of renewable energy facilities, adverse weather conditions and breakdown or failure of equipment, could significantly reduce these tax credits, which could have an adverse impact on the results of operations and financial position of the Evergy Companies.
The anticipated benefits of the Evergy Companies' strategy may not be realized.
The Evergy Companies' strategy includes significant planned reductions in operating and maintenance expense and significant planned increases in capital investments. The Evergy Companies' strategy also includes a different mix of capital investments than has been pursued in the past, including significant capital investments in renewable generation. The Evergy Companies' strategy also includes the planned retirement of coal-fired generation resources. If regulators determine that the retirement of coal generation facilities was not prudent, they could prohibit the Evergy Companies from recovering, or earning a return on, the investments in those facilities that were prudent when the investments were originally made. This concept is known as a "stranded asset," and generation retirements outside of those contemplated in the integrated resource plan increase the risk that regulators will disallow the recovery of otherwise prudent investments. In addition, the Evergy Companies may utilize legislative mechanisms known as securitization to facilitate the retirement of coal-fired generation, which will eliminate future returns on the investment that was originally made by the Evergy Companies in those coal-fired generating facilities and reduce the Evergy's Companies results of operations and financial position.
No assurance can be given that the Evergy Companies will be successful in implementing their strategy in a timely manner or at all, and a failure to do so could have a material adverse effect on the results of operations, financial
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position and cash flows of the Evergy Companies and have an adverse impact on the price of Evergy’s common stock.
The price of Evergy common stock may experience volatility.
The price of Evergy common stock may be volatile. Some of the factors that could affect the price of Evergy common stock are Evergy's earnings; the ability of GMOthe Evergy Companies to makeimplement their strategic plan; the ability of Evergy to deploy capital; actions by regulators; and statements in the press or investment community about the Evergy Companies' strategy, earnings per share or growth prospects, financial condition or results of operations. Negative perceptions or publicity from increasing scrutiny of environmental, social and governance practices could also adversely impact Evergy's stock price. Also, individuals or entities, such payments.as activist shareholders and special interest groups, may seek to influence the Evergy Companies' strategic plan or take other actions that could disrupt the Evergy Companies' business, financial results or operations and could adversely impact Evergy's stock price. In addition, the Evergy Companies operate almost exclusively in Kansas and Missouri and this concentration may increase exposure to risks arising from unique local or regional factors. Furthermore, general market conditions and U.S. economic factors and political events unrelated to the performance of Evergy (including the COVID-19 pandemic) may also affect Evergy's stock price. For these reasons, shareholders should not rely on historical trends in the price of Evergy common stock to predict the future price of Evergy's common stock.
Evergy has recorded goodwill that could become impaired and adversely affect financial results.
As required by generally accepted accounting principles (GAAP), Evergy recorded a significant amount of goodwill on its balance sheet in connection with completion of the merger that resulted in the formation of Evergy. Evergy assesses goodwill for impairment on an annual basis or whenever events or circumstances occur that would indicate a potential for impairment. If goodwill is deemed to be impaired, Evergy may be required to incur non-cash charges that could materially adversely affect its results of operations.
Customer and Weather-Related Risks:
TheChanges in electricity consumption could have a material adverse effect on Evergy's results of operations, financial position and cash flows.
Change in customer behaviors in response to energy efficiency programs, changing conditions and preferences or changes in the adoption of technologies could affect the consumption of energy by customers. Federal and state programs exist to influence the way customers use energy and regulators have mandates to promote energy efficiency. Conservation programs and customers' level of participation in the programs could have a material adverse effect on the results of operations, financial position and cash flows of the Companies can be materially affected by changes in customer electricity consumption.
Changes in customer electricity consumption due to sustained financial market disruptions, downturns or sluggishness in the economy, technological advances, energy efficiency or other factors may adversely affect the Companies' results of operations, financial position and cash flows.  Evergy Companies.
Technological advances, energy efficiency orand other energy conservation measures couldhave reduced and will continue to reduce customer electricity consumption. KCP&L and GMOThe Evergy Companies generate electricity at central station power plants to achieve economies of scale and produce electricity at a competitive cost. There areSelf-generation and distributed generation technologies, that produce electricity, including microturbines, wind turbines, fuel cells and solar cells, as well as those related to the storage of energy produced by these systems, have become economically competitive with the manner and price at which the Evergy Companies sell electricity. There is also a perception that have recently becomegenerating or storing electricity through these technologies is more cost competitive.environmentally friendly than generating electricity with fossil fuels. Increased adoption of these technologies could reduce electricity demand and the pool of customers from whom fixed costs are recovered, resulting in under recovery of the fixed costs of the Evergy Companies. Increased self-generation and the related use of net energy metering, which allows self-generating customers to receive bill credits for surplus power, could put upward price pressure on remaining customers. If this trend continues, the Companies'Evergy Companies are unable to adjust to reduced electricity demand and increased self-generation and net energy metering, their financial condition and results of operations could be adversely affected.
Changes in customer electricity consumption could be reduced. Changesdue to sustained financial market disruptions, downturns or sluggishness in technology couldthe economy or other factors may also alteradversely affect the channels through whichresults of operations, financial position and cash flows of the Companies' customers purchase or use electricity, which could reduce the Companies' customer electricity consumption.Evergy Companies.
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Weather is a major driver of the Companies' results of operations, financial position and cash flow.flows of the Evergy Companies and the Evergy Companies are subject to risks associated with climate change.
Weather conditions directly influence the demand for electricity and natural gas and affect the price of energy commodities.  Great Plains Energy and KCP&Lelectricity. The Evergy Companies are significantly impacted by seasonality, with approximately one-third of their retail electricand, due to energy demand created by air conditioning load, highest revenues are typically recorded in the third quarter. Unusually mild winter or summer weather can adversely affect sales.  In addition, severe weather and events, including but not limited to tornados, snow, fire, rain, flooding, drought and ice storms, can be destructive causingand cause outages and property damage that can potentially result in additionalincreased expenses, lower revenues and additional capital restoration costs.  KCP&L'sStorm reserves established by the Evergy Companies may be insufficient and GMO's rates may not always be adjusted in a timely and adequatelymanner, or at all, to reflectrecover these increased costs. SomeAdditionally, because many of the Evergy Companies' generating stations utilize water from the Missouri River for cooling, purposes.  Lowlow water and flow levels can increase maintenance costs at these stations, result in limited power production and if these levels were to get low enough, could require modifications to plant operations.  The possible effectsHigh water conditions can also impair planned deliveries of climatefuel to generating stations or otherwise adversely impact the ability of the Evergy Companies to operate these stations. Climate change (such as increased temperatures, increased occurrence ofmay produce more frequent or severe weather events, such as storms, droughts or reduced precipitation, among other possible results)floods and could potentiallyalso impact the economic health of the Evergy Companies' service territories. An increase the volatility of demand and prices for energy commodities, increasein the frequency and impact of severe weather, increase the frequency of flooding or decrease water and flow levels. To the extent the frequencyseverity of extreme weather events increases, thisor a deterioration in the economic health of Evergy's service territories could increasehave a material adverse effect on the Companies' costresults of operations, financial position and cash flows of the Evergy Companies.
In addition, policy, legal and regulatory efforts to influence climate change, such as efforts to reduce GHG emissions, impose a tax on emissions and create incentives for low-carbon generation and energy efficiency, could result in providing service.

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generation facilities, which could result in stranded costs if regulators disallow recovery of investments that were prudent when originally made and included in rates. The Evergy Companies have a goal to achieve net-zero CO2 emissions by 2045 with an interim goal of a 70% reduction of CO2 emissions from 2005 levels by 2030. The trajectory and timing of reaching the goal could be impacted by many external factors, including enabling technology developments, the reliability of the power grid, availability of transmission capacity, and supportive energy policies and regulations, and other factors. Any of the foregoing could adversely affect the results of operations, financial position and cash flows of the Evergy Companies and the market prices of Evergy's common stock.
Operational Risks:
Operational risks may adversely affect the Companies' results of operations, financial position and cash flows.Evergy Companies.
The operation of the Companies' electric generation, transmission, distribution and information systems involves many risks, including breakdown or failure of equipment,equipment; aging infrastructure, processes and personnel performance;infrastructure; employee error or contractor or subcontractor failure; problems that delay or increase the cost of returning facilities to service after outages; limitations that may be imposed by equipment conditions or environmental, safety or other regulatory requirements; fuel supply or fuel transportation reductions or interruptions; labor disputes; difficulties with the implementation or continued operation of information systems; transmission scheduling constraints; and catastrophic events such as fires, floods, droughts, explosions, terrorism cyber threats,or acts of war, severe weather, pandemics or other similar occurrences. Furthermore, toMany of the extent that a cyber attack was successful, customer and employee information may be stolen, equipment may be destroyed or damaged and operations may be disrupted. Any such equipment or system outage or constraint can, among other things:
in the case of generation equipment, affect operating costs, increase capital requirements and costs, increase purchased power volumes and costs and reduce wholesale sales opportunities;
in the case of transmission equipment, affect operating costs, increase capital requirements and costs, require changes in the source of generation and affect wholesale sales opportunities and the ability to meet regulatory reliability and security requirements;
in the case of distribution systems, affect revenues and operating costs, increase capital requirements and costs, and affect the ability to meet regulatory service metrics and customer expectations; and
in the case of information systems, affect the control and operations ofEvergy Companies' generation, transmission and distribution customer information and other business operations and processes, increase operating costs, increase capital requirements and costs, and affect the ability to meet regulatory reliability and security requirements and customer expectations.
With the exception of Hawthorn No. 5,resources are aged, which was substantially rebuilt in 2001, and Iatan No. 2, which was completed in 2010, all of KCP&L's and GMO's coal-fired generating units and its nuclear generating unit were constructed prior to 1986.  The age of these generating units increases the risk of unplanned outages, reduced generation output and higher maintenance expense.  Training, preventive maintenance andAny equipment or system outage or constraint can, among other programs have been implemented, but there is no assurance that these programs will prevent or minimize future breakdowns or failures of the Companies' generation facilities or increased maintenance expense. Furthermore, aging transmission and distribution facilities are more prone to failure than new facilities, which results in higher maintenance expense and the need to replace these facilities with new infrastructure. The higher maintenancethings, reduce sales, increase costs and capital expenditures for new replacement infrastructure could cause additional rate volatility foraffect the Companies' customers, resistance by the Companies' regulatorsability to allowmeet regulatory service metrics, customer rate increases and/orexpectations and regulatory lag.reliability and security requirements.
The Evergy Companies currently have general liability and property insurance in place to cover a portion of their facilities, in amounts that management considers appropriate.  Thesebut such policies however, do not cover the Companies' transmission or distribution systems, and the cost of repairing damage to these systems may adversely affect the Companies' results of operations, financial position and cash flows.  Such policies are subject to certain limits and deductibles and do not include business interruption coverage.  Insurance coverage may not be available in the future at reasonable costs or on commercially reasonable terms, and the insurance proceeds received for any loss of, or any damage to, any of the Companies' facilities may not be sufficient to restore the loss or damage.
Certain insurers are also choosing to limit their exposure to companies with coal-fired generation, which may result in increased premiums and reduced scope of coverage. These and other operating events may reduce the Companies' revenues or increase their costs, or both, and may materially affect theirthe results of operations, financial position and cash flows.

flows of the Evergy Companies.
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CyberPhysical 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 could cause reputational and financialother harm.
Electric utilities and other operators of critical energy infrastructure, like KCP&L and GMO, may face a heightened risk of cyber attack. The Companies' facilities could be direct targets or indirect casualties of any such cyber attacks. The Companies' business relies onEvergy Companies rely upon information technology fornetworks and systems to process, transmit and store electronic information, and to manage or support a variety of business processes and activities, including the generation, transmission and distribution of electricity, their primary business, as well as in secondary operational functions, including supply chain functions and the invoicing and collectingcollection of payments from customers. The Evergy Companies also use information technology networks and systems to record, process and summarize financial information and results of operations for internal reporting purposes and to comply with financial reporting, legal and tax requirements. These networks and systems are in some cases owned or managed by third-party service providers. In the ordinary course of business, the Evergy Companies collect, store and transmit sensitive data including operating information, proprietary business information belonging to the Companies and third parties and personal information belonging to customers and employees. To
The Evergy Companies' information technology networks and infrastructure, as well as the extent that a cyber attack was successful, customernetworks and employee informationinfrastructure belonging to third-party service providers, are vulnerable to damage, disruptions or shutdowns due to attacks or breaches by hackers or other unauthorized third parties; error or malfeasance by employees, contractors or service providers; unintended consequences related to software or hardware upgrades, additions or replacements; malicious software code; vulnerabilities in third-party software code; telecommunication failures; the lack of availability of qualified employees and contractors; natural disasters or other catastrophic events; or criminal activity, terrorist attacks or acts of war. Driven in part by the COVID-19 pandemic, the Evergy Companies have increased the use of technology to enable remote-working arrangements, which may be stolen, equipment may be destroyedincrease or damaged and operationsexpose previously unknown vulnerabilities. Public reports have indicated an increase in cyberattacks in general since the start of the generation fleet and/or reliabilitypandemic due, in part, to the increase in the number of employees working remotely and the proliferation of the different ways in which people interact with their information technology infrastructure.
The occurrence of any of these events could, among other things, impact the reliability or safety of the Evergy Companies' generation, transmission and distribution systems and information systems; result in the erasure of data or render the Evergy Companies' equipment, or the equipment of third-party service providers, unusable; impact the Evergy Companies' ability to conduct business in the ordinary course; reduce sales; expose the Evergy Companies and their customers, employees and vendors to a risk of loss or misuse of information; result in legal claims or proceedings, liability or regulatory penalties; damage the Evergy Companies' reputation; or otherwise harm the Evergy Companies' results of operations, financial position and cash flows. The Evergy Companies can provide no assurance that they will be able to identify and remediate all security or system mayvulnerabilities or that unauthorized access or error will be disrupted. In such an event,identified and remediated.
The Evergy Companies are subject to laws and rules issued by multiple government agencies concerning cybersecurity and safeguarding their customer and business information. For example, NERC has issued comprehensive regulations and standards surrounding the security of the bulk power system, including both physical and cybersecurity, and continually evaluates the necessity for updates and new requirements with which the Evergy Companies may experience substantial lossmust comply. The Evergy Companies are subject to recurring, independent, third-party audits with respect to adherence to these regulations and standards. The NRC also has issued regulations and standards related to the protection of revenues, material responsecritical digital assets at nuclear power plants. Compliance with NERC and NRC rules and standards, and rules and standards promulgated by other regulatory agencies from time to time or future legislation, will increase the Evergy Companies' compliance costs and their exposure to the potential risk of violations of these rules, standards or future legislation, which includes potential financial penalties. Furthermore, the non-compliance by other utilities subject to similar regulations or the occurrence of a serious security event at other utilities could result in increased regulation or oversight, both of which could increase the Evergy Companies' costs and adversely impact their financial loss, results.
Additionally, the Evergy Companies cannot predict the impact that any future information technology or malicious attack may have on the energy industry in general. The electric utility industry, both within the United States and internationally, has experienced physical and cybersecurity attacks on energy infrastructure such as power plants, substations and related assets in the past, and there will likely be more attacks in the future. Geopolitical matters,
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including terrorist attacks and acts of war, may increase the increasedlikelihood of such attacks. The Evergy Companies have been subject to attempted cyber attacks from time to time, and will likely continue to be subject to such attempted attacks, but these prior attacks have not had a material impact on their operations. However, because technology is increasingly complex and cyber-attacks are increasingly sophisticated and more frequent, there can be no assurance that such incidents will not have a material adverse effect on the Evergy Companies in the future. The Evergy Companies' facilities and systems could be direct targets or indirect casualties of such attacks. The effects of such attacks could include disruption to the Evergy Companies' generation, transmission and distribution, and information systems or to the electrical grid in general, reduced sales and could increase the cost of insurance coverage. TheFurthermore, although the Evergy Companies could alsomaintain information security risk insurance coverage, such insurance may not be subjectadequate to litigation, increased regulation and reputational damage.cover any associated losses. Any of the foregoing could have a material adverse impact on the Companies' results of operations, financial position and cash flows.
The Companies are subject to information security risks and risks of unauthorized access to their systems.
In the course of their businesses, the Companies handle a range of system security and sensitive customer information. KCP&L and GMO are subject to laws and rules issued by different agencies concerning safeguarding and maintaining the confidentiality of this information. A security breach of the utilities' information systems such as theft or the inappropriate release of certain types of information, including confidential customer information or system operating information, could have a material adverse impact on the results of operations, financial position and cash flows of the Companies.
KCP&L and GMO operate in a highly regulated industry that requires the continued operation of sophisticated information technology systems and network infrastructures. Despite implementation of security measures, the technology systems are vulnerable to disability, failures, employee error or malfeasance, or unauthorized access. Such failures or breaches of the systems could impact the reliability of generation, transmission and distribution systems, result in legal claims and proceedings, damage the Companies' reputation and also subject the Companies to financial harm. If the technology systems were to fail or be breached and not able to be recovered in a timely manner, critical business functions could be impaired and sensitive confidential data could be compromised, which could have a material adverse impact on theEvergy Companies' results of operations, financial position and cash flows.
The cost and schedule of capital projects may materially change and expected performance may not be achieved.
Great Plains Energy'sThe Evergy Companies' business is capital intensive and KCP&L's businesses are capital intensive.  The Companies currently haveincludes significant capital projects pending and may also have significant capital projects in the future.construction projects.  The risks of any capital project include: that actual costs may exceed estimated costs; regulators may disallow, limit or delay the recovery of all or part of the cost of, or a return on, a capital project; increased inflation may render previously estimated costs due to inflation or other factors;be inaccurate; risks associated with the incurrence of additional debt or the issuance of additional equitycapital and credit markets to fund such projects; delays that may occur in obtainingreceiving, or failure to receive, necessary permits, approvals and materials;other regulatory authorizations; unforeseen engineering problems or changes in project design or scope; the failure of suppliers and contractors to perform as required under their contracts; inadequate availability or increased cost of equipment,labor or materials, including commodities such as steel, copper and aluminum that may be subject to uncertain or qualified craft labor; delays related toincreased tariffs; inclement weather; the scope, cost and timing of projects may change due to new or changed laws, regulations and requirements, including environmental requirements,and health and safety laws, or other factors;regulations and requirements; and other events beyond the Evergy Companies' control may occur that may materially affect the schedule, cost and performance of these projects.
The Evergy Companies' strategy includes a significant amount of planned capital investments. The Evergy Companies' ability to implement these investments depend, in part, on the availability of adequate internal and external resources, such as employees and qualified contractors and the availability of materials. In this regard, the global COVID-19 pandemic has caused and continues to cause disruptions to the global supply chain and the availability of qualified labor, which, in turn, has increased inflationary pressures.
These and other risks could cause the Evergy Companies to defer or limit capital expenditures, materially increase the estimated costs of capital projects, delay the in-service dates of projects, adversely affect the performance of the projects and/orand require the Companies to purchase additionalof electricity to supply their respective retail customerson the wholesale market, at potentially more expensive prices, until the projects are completed.  Thus, theseThese risks may significantly affect the Evergy Companies' results of operations, financial position and cash flows.

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' workforce includes professional, managerial and technical employees. Failure to attract and retain qualified talent, successfully transition retirements with adequate replacements, or source qualified contractors could impede the Evergy Companies' strategy and/or adversely impact the Evergy Companies' ability to execute on their strategy. For example, certain skills, such as those related to construction, maintenance and repair of transmission and distribution systems are in high demand and have a limited supply. Evergy competes for qualified employees with these skills on a national level.
In addition, COVID-19 vaccination and testing mandates could result in employee or contractor labor disruptions and complying with any mandates and managing any related labor disruptions could have a significant adverse impact on the Evergy Companies' results of operations, financial position and cash flows.
A significant portion of the Evergy Companies' workforce is represented by five local unions of the IBEW and one local union of the UGSOA. The Evergy Companies currently have three labor agreements that expire in 2024 and three labor agreements currently under negotiation that have expired and are operating under an extension. A
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failure to successfully negotiate these collective bargaining agreements could result in labor disruptions and have a significant adverse impact on the Evergy Companies' results of operations, financial position and cash flows.
Failure of one or more generation plant co-ownersThe Evergy Companies' strategic plan includes enhanced technology and transmission and distribution investments and a reduction in reliance on coal-fired generation. The Evergy Companies will need to pay their share of construction or operationsattract and maintenance costs could increase the Companies' costs and capital requirements.
KCP&L owns 47% of Wolf Creek, 50% of La Cygne Station, 70% of Iatan No. 1 and 55% of Iatan No. 2.  GMO owns 18% of both Iatan units and 8% of Jeffrey Energy Center.  The remaining portions of these facilities are owned by other utilitiesretain personnel that are contractually obligatedqualified to pay their proportionate shareimplement the Evergy Companies' strategy and may need to retrain or reskill certain employees to support the Evergy Companies' long-term objectives. A failure to attract and retain qualified employees, retrain or reskill existing employees and maintain satisfactory collective bargaining agreements could have a significant adverse impact on the results of capitaloperations, financial position and other costs.
While the ownership agreements provide that a defaulting co-owner's sharecash flows of the electricity generated can be sold by the non-defaulting co-owners, there is no assurance that the revenues received will recover the increased costs borne by the non-defaulting co-owners.  Occurrence of these or other events could materially increase the Companies' costs and capital requirements.Evergy Companies.
KCP&L isThe Evergy Companies are exposed to risks associated with the ownership and operation of a nuclear generating unit, which could result in an adverse effect onadversely impact the Evergy Companies' business and financial results.
KCP&LEvergy indirectly owns 94% of Wolf Creek, with Evergy Kansas South and Evergy Metro each owning 47% of Wolf Creek.the nuclear plant.  The NRC has broad authority under federal law to impose licensing and safety-related requirements for the operation of nuclear generation facilities, including Wolf Creek.  In the event of non-compliance, the NRC has the authority to impose fines, shut down the facilities, or both, depending upon its assessment of the severity of the situation, until compliance is achieved. Additionally, the non-compliance of other nuclear facility operators with applicable regulations or the occurrence of a serious nuclear incident anywhere in the world could result in increased regulation of the nuclear industry as a whole.  Any revised safety requirements promulgated byindustry. Such events could increase Wolf Creek's costs and impact the NRC couldfinancial results of the Evergy Companies or result in substantial capital expenditures ata shutdown of Wolf Creek.
Wolf Creek has the lowest fuel cost per MWh of any of KCP&L's generating units, excluding renewable generation.  An extended outage of Wolf Creek, whether resulting from NRC action, an incident at the plant or otherwise, could have a material adverse effect on KCP&L'sthe results of operations, financial position and cash flows of the Evergy Companies in the event KCP&L incurs higher replacement power and other costs that are not recovered through rates or insurance.  If a long-term outage occurred, the state regulatory commissions could reduce rates by excluding the Wolf Creek investment from rate base.  Wolf Creek was constructed prior to 1986commenced operations in 1985 and the age of Wolf Creek increases the risk of unplanned outages and results in higher maintenance costs.
OwnershipOn an annual basis, Evergy Kansas South and operation of a nuclear generating unit exposes KCP&LEvergy Metro are required to risks regardingcontribute money to tax-qualified trusts that were established to pay for decommissioning costs at the end of the unit's life. KCP&L contributes annually basedThe amount of contributions varies depending on estimatedestimates of decommissioning costs to a tax-qualified trust fund to be used to decommission Wolf Creek.  The funding level assumes aexpenses and projected level of return on trust assets. If the actual return on trust assets is below the projected level or actual decommissioning costs are higher than estimated, KCP&LEvergy Kansas South and Evergy Metro could be responsible for the balance of funds required and may not be allowed to recover the balance through rates.
KCP&L isThe Evergy Companies are also exposed to other risks associated with the ownership and operation of a nuclear generating unit, including, but not limited to, (i) potential liability associated with the potential harmful effects on the environment and human health resulting from the operation of a nuclear generating unit, (ii) the storage, handling, disposal and potential release (by accident, through third-party actions or otherwise) of radioactive materials and (iii) uncertainties with respect to contingencies and assessments if insurance coverage is inadequate.  Under the structure for insurance among owners of nuclear generating units, KCP&L isEvergy Kansas South and Evergy Metro are also liable for potential retrospective premium assessments (subject to a cap) per incident at any commercial reactor in the country and losses in excess of insurance coverage.
On March 29, 2017, Westinghouse Electric Company, LLC (Westinghouse) filed voluntary petitions to reorganize underIn addition, Wolf Creek is reliant on a sole supplier for fuel and related services. The supplier has in the past been the subject of Chapter 11 reorganization proceedings, and an extended outage of the U.S. Bankruptcy Code. Wolf Creek contracts with Westinghouse for nuclear fuel fabrications and reactor services. Westinghouse has stated that it intendscould occur if the supplier is not able to continue normal business operations. However, if Westinghouse did not perform under its contracts with Wolf Creek itCreek. Switching to another supplier could result intake an extended amount of time and would require NRC approval. An extended outage at Wolf Creek. An extended outageCreek could affect the amount of Wolf Creek investment included in customer rates and could have a material adverse effectimpact on Great Plains Energy's and KCP&L's results of operations,the Evergy Companies' financial position and cash flows in the event KCP&L incurs higher replacement power and other costs that are not recovered through rates. In January 2018, Westinghouse issued a news release stating that it would sell its global business to an unaffiliated third party. This transaction must be approved by the bankruptcy court and applicable regulators. The process has not yet begun, but Westinghouse stated it plans to close

results.
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the transaction in the third quarter of 2018. It is not yet known at this time if Wolf Creek's contracts will be impacted.
The structure of the regional power market in which the Evergy Companies operate could have an adverse effect on the Companies'their results of operations, financial position and cash flows.
In March 2014,Evergy Kansas Central, Evergy Metro and Evergy Missouri West are members of the SPP launched itsregional transmission organization, and each has transferred operational authority (but not ownership) of their transmission facilities to the SPP. The SPP's Integrated Marketplace. Similar to other RTO or ISO markets, this marketplaceMarketplace determines which generating units among market participants should run, within the operating constraints of a unit, at any given timetime. The SPP's rules are primarily designed to provide for maximum cost-effectiveness. Incost-effectiveness, but in certain respects the event that KCP&L's and GMO'srules also provide preferential treatment for certain resources based on public policy initiatives, such as increasing the deployment of renewable generation. If Evergy Kansas Central's, Evergy Metro's or Evergy Missouri West's generating unitsresources are not among the lowest cost generating units operating within the market, KCP&L and GMOdispatched, each could experience decreased levels of wholesale electricity sales.
A market forThe Evergy Companies' strategic plan includes adding a significant amount of renewable generation. Transmission Congestion Rights (TCR) is also included as partconstraints and delays in the transmission planning and construction processes could impair the ability of the Integrated Marketplace. TCRs are financial instruments usedEvergy Companies to hedge transmission congestion charges. Both KCP&Lsell and GMO acquire TCRs for the purpose of hedging against transmission congestion charges. There is a risk that KCP&L and GMO could incorrectly model the amount of TCRs needed, or that the TCRs acquired could be ineffective in hedging against transmission congestion chargestransmit electricity generated by these renewable generation facilities, which could lead to increased purchased power costs.have an adverse impact on the results of operations and financial position of the Evergy Companies.
TheIn addition, the rules governing the various regional power markets, including the SPP, may change from time to time and such changes could impact the Companies' costs and revenues. Becauserevenues of the manner in which RTOs or ISOs will evolve is unclear, the Companies are unable to assess fully the impact of these changes.Evergy Companies.
Litigation Risks:
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 Evergy Companies are partyparties to various material litigationlawsuits and regulatory matters arising outproceedings in the ordinary course of their business operations.respective businesses.  The ultimate outcome of these matters cannot presently be determined, nor, in many cases, can the liability that could potentially result from a negative outcome in each case be reasonably estimated.  The liability that the Evergy Companies may ultimately incur with respect to any of these cases in the event of a negative outcome may be in excess of amounts currently reservedaccrued and insured against with respect to such matters.matters and could adversely impact the financial results for the Evergy Companies.
COVID-19 Risks:
The spread of COVID-19 and resulting impact on business and economic conditions could continue to negatively affect the Evergy Companies' business and operations.
The COVID-19 pandemic has had, and may continue to have, a significant impact on the way that the Evergy Companies conduct their operations and could adversely impact their results of operations, financial condition and cash flows. Further, the spread of COVID-19 has resulted in efforts to contain the virus, such as quarantines, restrictions on travel, closures and reduced operations of businesses, governmental agencies and other institutions. The pandemic, along with the efforts to contain the virus, has caused and could continue to cause an economic slowdown or recession, result in significant disruptions or reductions in various public, commercial or industrial activities, cause employee absences and contractor or third party service provider disruptions, which could interfere with the Evergy Companies' operations or the operations of their customers.
The COVID-19 pandemic has altered electricity usage patterns, including an overall reduction in demand and shifting usage away from customers with relatively higher load requirements, such as industrial and commercial customers, toward customers with relatively lower load requirements, such as residential customers. These changes in electricity usage patterns and the extent to which some of these shifts could become long-term or permanent could result in a significant decrease in the Evergy Companies' sales of electricity.
The Evergy Companies have also incurred, and will continue to incur, expenses related to monitoring the COVID-19 pandemic and modifying operations in response to the pandemic. In July 2020, the KCC authorized Evergy Kansas Central and Evergy Metro to record to a regulatory asset all net incremental costs incurred with respect to their Kansas operations associated with the COVID-19 pandemic for consideration in their next Kansas rate cases, which are expected to be completed no later than the end of 2023. Additionally, the KCC order stated
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that the KCC will also consider granting the recovery of Evergy Kansas Central's and Evergy Metro's lost revenues associated with the COVID-19 pandemic as part of their next Kansas rate cases. In January 2021, the MPSC authorized Evergy Metro and Evergy Missouri West to defer to a regulatory asset certain net incremental costs incurred between March 1, 2020 and March 31, 2021, associated with the COVID-19 pandemic for consideration in their next rate cases. Evergy Metro and Evergy Missouri West can petition the MPSC to extend the period subject to the Accounting Authority Order (AAO). Notwithstanding the foregoing, regulators might not allow for recovery of these amounts in a timely manner, or at all. In addition, Evergy Metro and Evergy Missouri West utilize PISA in Missouri, which requires each company to keep base rates constant for three years following Evergy Metro's and Evergy Missouri West's last general rate case. These and other factors may result in under-recovery of costs or failure to earn the authorized return on investment, or both.
The Evergy Companies have also temporarily implemented policies, and in the future may implement additional policies, that are intended to ease the financial burden of the pandemic on customers, such as temporarily extending payment options and offering incentives for customer payments on overdue balances as well as the elimination of late payment fees and disconnections for non-payment. There is also the possibility that legislation or regulations could be enacted at the federal or state level that would further restrict the Evergy Companies' ability to discontinue service to customers in the event of non-payment or to collect amounts owed from customers for service provided. These measures could result in an overall increase in customer non-payment or delay in the timely receipt of customer payments, which could result in a significant increase in the Evergy Companies' credit loss expense or significant decrease in operating cash flows.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West sell retail electric accounts receivable to independent outside investors as a source of liquidity. These arrangements include covenants that limit the extent to which accounts receivable can be delinquent or unpaid. A decrease in the amount of, or a delay in receiving, customer collections due to the COVID-19 pandemic or otherwise could, absent a waiver or amendment, result in a breach of these accounts receivable financing arrangements and require the Evergy Companies to repay any outstanding loans. To the extent that the Evergy Companies experience lower electric sales, they may not have sufficient eligible receivables to maximize their borrowing capacity under their receivables sales facilities or could be required to repay additional portions of their borrowings under the facilities.
The Evergy Companies are planning to make significant capital expenditures and they regularly conduct maintenance on their facilities. The pandemic could disrupt the supply chains that provide services and equipment to the Evergy Companies as part of their capital expenditures or maintenance efforts. If the Evergy Companies' supply chains are disrupted, the Evergy Companies may be unable to perform necessary maintenance, which could result in increased costs as the Evergy Companies implement contingency plans to allow them to continue to operate. Supply chain interruptions may also exacerbate inflationary pressures, increase the cost of maintenance and capital expenditures or result in the delay or cancellation of planned projects, any of which could have a material adverse impact on the Evergy Companies' results of operations.
The Evergy Companies also have a significant amount of NOLs, tax credits and other tax carryforwards that are recorded as deferred income tax assets on their balance sheets. These tax benefits have various expiration dates and other limitations on the extent to which the benefits can be realized. The Evergy Companies regularly assess their future ability to utilize tax benefits to determine whether a valuation allowance is necessary. A significant reduction in the Evergy Companies' taxable income due to the impacts of the COVID-19 pandemic or otherwise could require the Evergy Companies to record a valuation allowance against a portion of those tax assets, which in turn reduces earnings, and the Evergy Companies may in general not be able to utilize these tax benefits.
In addition, the COVID-19 pandemic has changed the way the Evergy Companies operate and has increased the use of technology to enable remote-working arrangements, which may increase or expose previously unknown vulnerabilities. Public reports have also indicated an increase in cyberattacks in general since the start of the pandemic due, in part, to the increase in the number of employees working remotely and the proliferation of the different ways in which employees and third parties interact with the Evergy Companies' information technology infrastructure. A successful attack against the Evergy Companies or cyberattacks to interconnected utilities, municipalities, others or widespread attacks to the utility industry could result in disruption to the Evergy
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Companies' generation, transmission and distribution and information systems or to the electrical grid in general, reduce sales and could increase the cost of insurance coverage or result in a decline in the U.S. economy. Furthermore, insurance may not be adequate to cover any associated losses.
Any of these circumstances, or other impacts of the COVID-19 pandemic, could adversely affect customer demand or revenues, impact the ability of the Evergy Companies' suppliers, vendors or contractors to perform, or cause other unpredictable events, which could have a significant adverse impact on the results of operations, financial position and cash flows of the Evergy Companies.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.

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ITEM 2. PROPERTIES
Electric Utility Generation Resources
Unit Capability (MW) By Owner(a)
StationUnit No.LocationYear CompletedFuelEvergy Kansas CentralEvergy MetroEvergy Missouri WestTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased Power
Renewable Generation:
Central PlainsKansas2009Wind99— — 99 — 99 
Flat RidgeKansas2009Wind50— — 50 44 (b)94 
Flat Ridge 3Kansas2021Wind—— — — 128 (b)128 
Western PlainsKansas2017Wind281— — 281 — 281 
Meridian WayKansas2008Wind— — — — 96 (b)96 
IronwoodKansas2012Wind— — — — 168 (b)168 
Post RockKansas2012Wind— — — — 201 (b)201 
Cedar BluffKansas2015Wind— — — — 199 (b)199 
Kay WindOklahoma2015Wind— — — — 200 (b)200 
Soldier CreekKansas2020Wind— — — — 300 (b)300 
NinnescahKansas2016Wind— — — — 208 (b)208 
Kingman 1Kansas2016Wind— — — — 37 (b)37 
Kingman 2Kansas2016Wind— — — — 103 (b)103 
Rolling MeadowsKansas2010Landfill Gas— — — — 6 (b)6 
Hutch SolarKansas2017Solar— — — — 1 (b)1 
PonderosaOklahoma2020Wind— — — — 178 (c)178 
Cimarron IIKansas2012Wind— — — — 131 (d)131 
Cimarron Bend IIIKansas2020Wind— — — — 150 (e)150 
Spearville 1Kansas2006Wind— 101 — 101 — 101 
Spearville 2Kansas2010Wind— 48 — 48 — 48 
Spearville 3Kansas2012Wind— — — — 101 (d)101 
Gray CountyKansas2001Wind— — — — 110 (f)110 
EnsignKansas2012Wind— — — — 99 (f)99 
WaverlyKansas2016Wind— — — — 200 (d)200 
Slate CreekKansas2015Wind— — — — 150 (d)150 
Rock CreekMissouri2017Wind— — — — 300 (g)300 
OsbornMissouri2016Wind— — — — 201 (g)201 
PrattKansas2018Wind— — — — 243 (g)243 
Greenwood SolarMissouri2016Solar— — 3 3 — 3 
Prairie QueenKansas2019Wind— — — — 200 (g)200 
CNPPID (NE) - HydroNebraska1941Hydro— — — — 66 (d)66 
St Joseph LandfillMissouri2012Landfill Gas— — 2 2 — 2 
Total Renewable Generation:430 149 5 584 3,820 4,404 
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    Year Estimated 2018 Primary
 UnitLocation Completed MW Capacity Fuel
Base LoadIatan No. 2Missouri 2010  482
(a) 
 Coal
 Wolf CreekKansas 1985  552
(a) 
 Nuclear
 Iatan No. 1Missouri 1980  490
(a) 
 Coal
 La Cygne Nos. 1 and 2Kansas 1973, 1977  699
(a) 
 Coal
 
Hawthorn No. 5 (b)
Missouri 1969  564  Coal
 Montrose Nos. 2 and 3Missouri1960, 1964 334  Coal
Peak LoadWest Gardner Nos. 1, 2, 3 and 4Kansas 2003  314  Natural Gas
 OsawatomieKansas 2003  76  Natural Gas
 Hawthorn Nos. 6 and 9Missouri 2000  235  Natural Gas
 Hawthorn No. 8Missouri 2000  79  Natural Gas
 Hawthorn No. 7Missouri 2000  78  Natural Gas
 Northeast Black Start UnitMissouri 1985  2  Oil
 Northeast Nos. 17 and 18Missouri 1977  105  Oil
 Northeast Nos. 13 and 14Missouri 1976  95  Oil
 Northeast Nos. 15 and 16Missouri 1975  106  Oil
 Northeast Nos. 11 and 12Missouri 1972  88  Oil
Wind
Spearville 2 Wind Energy Facility (c)
Kansas 2010  48  Wind
 
Spearville 1 Wind Energy Facility (d)
Kansas 2006  101  Wind
Total KCP&L     4,448
   
Base LoadIatan No. 2Missouri 2010  159
(a) 
 Coal
 Iatan No. 1Missouri 1980  126
(a) 
 Coal
 Jeffrey Energy Center Nos. 1, 2 and 3Kansas1978, 1980, 1983 173
(a) 
 Coal
 Sibley Nos. 2 and 3Missouri1962, 1969 406  Coal
Peak LoadLake Road Nos. 2 and 4Missouri 1957, 1967  115  Natural Gas
 South Harper Nos. 1, 2 and 3Missouri 2005  303  Natural Gas
 Crossroads Energy CenterMississippi 2002  292  Natural Gas
 Ralph Green No. 3Missouri 1981  71  Natural Gas
 Greenwood Nos. 1, 2, 3 and 4Missouri 1975-1979  242  Natural Gas/Oil
 Lake Road No. 5Missouri 1974  62  Natural Gas/Oil
 Lake Road Nos. 1 and 3Missouri 1951, 1962  24  Natural Gas/Oil
 Lake Road Nos. 6 and 7Missouri 1989, 1990  42  Oil
 NevadaMissouri 1974  18  Oil
Total GMO     2,033
   
Total Great Plains Energy     6,481
   
Unit Capability (MW) By Owner(a)
StationUnit No.LocationYear CompletedFuelEvergy Kansas CentralEvergy MetroEvergy Missouri WestTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased Power
Nuclear:
Wolf Creek1(h)Kansas1985Uranium554 554 — 1,108 — 1,108 
Total Nuclear:554 554 — 1,108 — 1,108 
Coal:
Jeffrey Energy CenterKansas
Steam Turbines1-3(h)1978, 1980 &1983Coal2,016 — 175 2,191 — 2,191 
Lawrence Energy CenterKansas
Steam Turbines4 & 5(i)1960, 1971Coal485 — — 485 — 485 
La CygneKansas
Steam Turbines1 & 2(h)(j)1973, 1977Coal713 713 — 1,426 — 1,426 
IatanMissouri
Steam Turbines1 & 2(h)1980, 2010Coal— 974 284 1,258 — 1,258 
HawthornMissouri
Steam Turbines5(k)1969Coal— 553 — 553 — 553 
Total Coal:3,214 2,240 459 5,913 — 5,913 
Gas and Oil:
Emporia Energy CenterKansas
Combustion Turbines1 - 72008 - 2009Natural Gas654 — — 654 — 654 
Gordon Evans Energy CenterKansas
Combustion Turbines1 - 32000 - 2001Natural Gas294 — — 294 — 294 
Hutchinson Energy CenterKansas
Combustion Turbines1 - 31974Natural Gas166— — 166 — 166 
41975Oil74— — 74 — 74 
Spring Creek Energy CenterOklahoma
Combustion Turbines1 - 42001Natural Gas269— — 269 — 269 
State LineMissouri
Combined Cycle2-1, 2-2 & 2-3(h)2001Natural Gas200— — 200 — 200 
HawthornMissouri
Combined Cycle6/92000Natural Gas— 221 — 221 — 221 
Combustion Turbines7 & 82000Natural Gas— 154 — 154 — 154 
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Unit Capability (MW) By Owner(a)
StationUnit No.LocationYear CompletedFuelEvergy Kansas CentralEvergy MetroEvergy Missouri WestTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased Power
Gas and Oil (continued):
West GardnerKansas
Combustion Turbines1 - 42003Natural Gas— 309 — 309 — 309 
OsawatomieKansas
Combustion Turbines12003Natural Gas— 75 — 75 — 75 
Ralph GreenMissouri
Combustion Turbines31981Natural Gas— — 69 69 — 69 
NevadaMissouri
Combustion Turbines11974Oil— — 16 16 — 16 
Lake RoadMissouri
Combustion Turbines1 - 31951, 1958 & 1962Natural Gas— — 49 49 — 49 
5 - 71974, 1989 & 1990Oil— — 89 89 — 89 
Steam Turbines41967Natural Gas— — 95 95 — 95 
NortheastMissouri
Combustion Turbines11 - 181972 - 1977Oil— 380 — 380 — 380 
South HarperMissouri
Combustion Turbines1 - 32005Natural Gas— — 311 311 — 311 
Greenwood Energy CenterMissouri
Combustion Turbines1 - 41975 - 1979Natural Gas— — 251 251 — 251 
Crossroads Energy CenterMississippi
Combustion Turbines1 - 42002Natural Gas— — 295 295 — 295 
Total Gas and Oil1,657 1,139 1,175 3,971 — 3,971 
Total5,855 4,082 1,639 11,576 3,820 15,396 
(a)Capability (except for wind generating facilities) represents estimated 2022 net generating capacity. Capability for wind generating facilities represents the nameplate capacity. Due to the intermittent nature of wind generation, these facilities are associated with a total of 1,788 MW of accredited generating capacity pursuant to SPP reliability standards.
(b) Evergy Kansas Central renewable power purchase agreement.
(c) Evergy Kansas Central and Evergy Metro renewable power purchase agreement.
(d) Evergy Metro renewable power purchase agreement.
(e) Evergy Kansas Central and Evergy Missouri West renewable power purchase agreement.
(f) Evergy Missouri West renewable power purchase agreement.
(g) Evergy Metro and Evergy Missouri West renewable power purchase agreement.
(h) Share of a jointly owned unit.
(b)
In 2001, a new boiler, air quality control equipment and an uprated turbine was placed in service at the Hawthorn Generating Station.
(c)
Accredited capacity is 16 MW pursuant to SPP reliability standards.
(d)
Accredited capacity is 31 MW pursuant to SPP reliability standards.

KCP&L owns(i) See Note 4 to the consolidated financial statements for more information regarding the planned retirement of Lawrence Energy Center (LEC) Unit 4 which is expected to occur between December 2023 and the first half of 2024.
(j) In 1987, Evergy Kansas South entered into a sale-leaseback transaction involving its 50% ofinterest in the La Cygne No. 1Unit 2. Evergy and No. 2 Units, 70% of Iatan No. 1 Unit, 55% of Iatan No. 2 Unit and 47% of Wolf Creek. GMO owns 18% of each of Iatan No. 1 and No. 2 Units and 8% of Jeffrey Energy Center No. 1, No. 2 and No. 3 Units.


Evergy Kansas Central consolidate the leasing entity as a variable interest entity (VIE). See Note 18 to the consolidated financial statements for more information.
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(k) Although the plant was completed in 1969, a new boiler, air quality control equipment and an uprated turbine were placed in service at the Hawthorn Generating Station in 2001.
Electric Utility Transmission and Distribution Resources
Electric Utility'sEvergy's electric transmission system interconnects with systems of other utilities for reliability and to permit wholesale transactions with other electricity suppliers. Electric UtilityEvergy has approximately 3,60010,200 circuit miles of transmission lines, 15,60044,900 circuit miles of overhead distribution lines and 7,40015,500 circuit miles of underground distribution lines in Missouri and Kansas. Electric UtilityEvergy has all material franchise rights necessary to sell electricity within its retail service territory. Electric Utility'sEvergy's transmission and distribution systems are routinely monitored for adequacy to meet customer needs. Management believes the current systems aresystem has adequate capacity to serve customers.
Electric Utility General
Electric Utility'sEvergy's generating plants are located on property owned (or co-owned) by KCP&L or GMO,the Evergy Companies, except the Spearville Wind Energy Facilities whichfor certain facilities that are located on easements and the Crossroads Energy Center and the South Harper Facility whichor are contractually controlled. Electric Utility'sEvergy's headquarters, service centers, electric substations and a portion of its transmission and distribution systems are located on property owned or leased by Electric Utility. Electric Utility'sEvergy. Evergy's transmission and distribution systems are for the most part located above or underneath highways, streets, other public places or property owned by others. Electric UtilityEvergy believes that it has satisfactory rights to use those places or properties in the form of permits, grants, easements, licenses or franchise rights; however, it has not necessarily undertaken efforts to examine the underlying title to the land upon which the rights rest. Great Plains Energy's and KCP&L's headquarters are located in leased office space.
Substantially all of the fixed property and franchises of KCP&L,the Evergy Companies, which consist principally of electric generating stations, electric transmission and distribution lines and systems, and buildings (subject to exceptions, reservations and releases), are subject to a General Mortgage Indenturemortgage indentures pursuant to which bonds have been issued and Deed of Trust dated as of December 1, 1986, as supplemented (Indenture). Mortgage bonds totaling $479.5 million were outstanding at December 31, 2017.are outstanding. See Note 12 to the consolidated financial statements for more information.

A portion of the fixed property and franchises of GMO are subject to a General Mortgage Indenture and Deed of Trust dated as of April 1, 1946, as supplemented. Mortgage bonds totaling $4.6 million were outstanding at December 31, 2017.
ITEM 3.  LEGAL PROCEEDINGS
Other Proceedings
The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses.  For information regarding material lawsuits and proceedings, see Notes 2, 6, 154 and 1614 to the consolidated financial statements.  Such information is incorporated herein by reference.
ITEM 4.  MINE SAFETY DISCLOSURES
Not applicable.

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PART II
ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
GREAT PLAINS ENERGYEVERGY, INC.
Great Plains Energy'sEvergy's common stock is listed on the New York Stock Exchange under the symbol "GXP"."EVRG." At February 16, 2018, Great Plains Energy's18, 2022, Evergy's common stock was held by 13,95218,297 shareholders of record. Information relating to market prices and cash dividends on Great Plains Energy's
Performance Graph
The following graph compares the performance of Evergy's common stock is set forthduring the period that began on June 5, 2018 (the first day that Evergy's common stock traded), and ended on December 31, 2021, to the performance of the Standard & Poor's 500 Index (S&P 500) and the Standard & Poor's Electric Utility Index (S&P 500 Electric Utilities). The graph assumes a $100 investment in Evergy's common stock and in each of the following table.indices at the beginning of the period and a reinvestment of dividends paid on such investments throughout the period.
evrg-20211231_g2.jpg
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Common Stock Price Range (a)
 Common Stock
 2017 2016 Dividends Declared
QuarterHigh Low High Low 2018  2017 2016
First$29.24
 $26.87
 $32.26
 $26.34
 $0.275
(b) 
 $0.275
 $0.2625
Second29.92
 27.86
 32.68
 28.35
    0.275
 0.2625
Third31.58
 29.14
 31.22
 26.53
    0.275
 0.2625
Fourth34.70
 30.55
 28.60
 26.20
    0.275
 0.275
Purchases of Equity Securities
The following table provides information regarding purchases by Evergy of its equity securities that are registered pursuant to Section 12 of the Exchange Act during the three months ended December 31, 2021.
Issuer Purchases of Equity Securities
Month
Total Number of
Shares (or Units)
Purchased(a)
Average Price
Paid per Share
(or Unit)		Total Number of
Shares (or Units)
Purchased as
Part of Publicly
Announced Plans
or Programs		Maximum
Number of
Shares (or Units)
that May Yet Be
Purchased Under the Plans or Programs
October 1 - 31— — — — 
November 1 - 30680 $64.92— — 
December 1 - 318,495$68.56— — 
Total9,175$68.29— — 
(a)    Based on closingRepresents shares Evergy purchased for withholding taxes related to the vesting of restricted stock prices.
(b)    Declared February 13, 2018, and payable March 20, 2018, to shareholders of record as of February 27, 2018.or restricted stock units.
Dividend Restrictions
For information regarding dividend restrictions, see Note 1317 to the consolidated financial statements.
Purchases of Equity Securities
The following table provides information regarding purchases by Great Plains Energy for the three months ended December 31, 2017.
Issuer Purchases of Equity Securities
Month 
Total Number of Shares (or Units) Purchased (a)
Average Price Paid per Share (or Unit)Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or ProgramsMaximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
October 1 - 31 2,981
$31.54
—
N/A
November 1 - 30 2,421
33.63
—
N/A
December 1 - 31 17,424
32.53
—
N/A
Total 22,826
$32.52
—
N/A
(a) Represents open market purchases for the Company's Dividend Reinvestment and Direct Stock Purchase Plan and defined contribution savings plan (401(k)).
KCP&L
KCP&L is a wholly owned subsidiary of Great Plains Energy, which holds the one share of issued and outstanding KCP&L common stock.
Dividend Restrictions
For information regarding dividend restrictions, see Note 13 to the consolidated financial statements.

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ITEM 6. SELECTED FINANCIAL DATA
Not applicable.
Year Ended December 31 2017 2016 2015 
2014(a)
 
2013(a)
Great Plains Energy (dollars in millions except per share amounts)
Operating revenues $2,708
 $2,676
 $2,502
 $2,568
 $2,446
Net income (loss) $(106) $290
 $213
 $243
 $250
Basic and diluted earnings (loss) per common share $(0.67) $1.61
 $1.37
 $1.57
 $1.62
Total assets at year end (a) 
 $12,458
 $13,570
 $10,739
 $10,453
 $9,770
Total redeemable preferred stock, mandatorily          
redeemable preferred securities and long-          
term debt (including current maturities) (a)
 $3,664
 $3,747
 $3,746
 $3,481
 $3,492
Cash dividends per common share $1.10
 $1.0625
 $0.9975
 $0.935
 $0.8825
SEC ratio of earnings to combined fixed charges and          
preferred dividend requirements 1.66 2.54 2.58 2.72 2.75
           
KCP&L          
Operating revenues $1,891
 $1,875
 $1,714
 $1,731
 $1,671
Net income $180
 $225
 $153
 $162
 $169
Total assets at year end (a)
 $8,124
 $8,058
 $7,815
 $7,495
 $6,821
Total redeemable preferred stock, mandatorily          
redeemable preferred securities and long-          
term debt (including current maturities) (a)
 $2,582
 $2,565
 $2,563
 $2,297
 $2,294
SEC ratio of earnings to fixed charges 3.05 3.30 2.57 2.69 2.76
(a) Applicable balances for the years ended December 31, 2014 and 2013 have been adjusted for the adoption of Accounting Standards Update (ASU) No. 2015-03, Simplifying the Presentation of Debt IssuanceCosts.
ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following combined MD&A should be read in conjunction with the consolidated financial statements and accompanying notes in this combined annual report on Form 10-K. None of the registrants make any representation as to information related solely to Evergy, Evergy Kansas Central or Evergy Metro other than itself.

The following MD&A generally discusses 2021 and 2020 items and year-to-year comparisons between 2021 and 2020. Discussions of 2019 items and year-to-year comparisons between 2020 and 2019 can be found in MD&A in Part II, Item 7, of the Evergy Companies' combined annual report on Form 10-K for the fiscal year ended December 31, 2020.
GREAT PLAINS ENERGY INCORPORATED
EVERGY, INC.
EXECUTIVE SUMMARY
Description of Business
Great Plains EnergyEvergy is a public utility holding company incorporated in 2017 and does not own or operate anyheadquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below.
•Evergy Kansas Central is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has one active wholly-owned subsidiary with significant assets other thanoperations, Evergy Kansas South.
•Evergy Metro is an integrated, regulated electric utility that provides electricity to customers in the stockstates of Missouri and Kansas.
•Evergy Missouri West is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
•Evergy Transmission Company owns 13.5% of Transource with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of AEP. Transource is focused on the development of
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competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.
Evergy Kansas Central also owns a 50% interest in Prairie Wind, which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and cashBerkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that provides transmission service in the SPP. Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.
Evergy Kansas Central, Evergy Kansas South, Evergy Metro and cash equivalents.
Great Plains Energy's sole reportableEvergy Missouri West conduct business segment is Electric Utility. Electric Utility consists of KCP&L, a regulated utility, GMO's regulated utility operations and GMO Receivables Company.  Electric Utility has in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 6,50015,400 MWs of owned generating capacity and engagesrenewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 867,1001.6 million customers in the states of MissouriKansas and Kansas.  Electric Utility's retail electricityMissouri. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).
Strategy
Evergy expects to continue operating its integrated utilities within the currently existing regulatory frameworks and is focused on empowering a better future for its customers, communities, employees and shareholders. The core tenets of Evergy's strategy are as follows:
•Affordability - working to keep rates are comparableaffordable and improve regional rate competitiveness;
•Reliability - targeting top-tier performance in reliability, customer service and generation; and
•Sustainability - advancing ongoing CO2 emissions reductions and generation fleet transition.
Significant elements of Evergy's plan to achieve its strategic objectives include:
•targeting an annual reduction of approximately $345 million of operating and maintenance expense by 2025 from 2018 adjusted operating and maintenance expense (non-GAAP) (see "Non-GAAP Measures" within this Executive Summary for a reconciliation of this non-GAAP measure to the national averagemost directly comparable GAAP measure);
•targeting approximately $10.7 billion of investor-owned utilities.
Great Plains Energy's corporateexpected base capital investments through 2026 including approximately $2.0 billion in renewable generation. See "Liquidity and other activities not included in the sole reportable business segment includes GMO activity other than its regulated utility operations, GPETHC and unallocated corporate charges including certain costs to achieve the anticipated merger with Westar.
Anticipated Merger with Westar Energy, Inc.
On July 9, 2017, Great Plains Energy entered into an Amended Merger Agreement by and among Great Plains Energy, Westar, Holdco, and Merger Sub. Pursuant to the Amended Merger Agreement, subject to the satisfaction or waiver of certain conditions, Great Plains Energy will merge with and into Holdco, with Holdco surviving such

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merger, and Merger Sub will merge with and into Westar, with Westar surviving such merger. Upon closing, pursuant to the Amended Merger Agreement, each outstanding share of Great Plains Energy's and Westar's common stock will be converted into the right to receive 0.5981 and 1.0, respectively, of validly issued, fully paid and nonassessable shares of common stock, no par value, of Holdco. Following the mergers, Holdco, with a new name that has yet to be established, will be the parent of Great Plains Energy's direct subsidiaries, including KCP&L, and Westar.
The anticipated merger has been structured as a merger of equals in a tax-free exchange of shares that involves no premium paid or received with respect to either Great Plains Energy or Westar. Following the completion of the anticipated merger, Westar shareholders will own approximately 52.5 percent and Great Plains Energy shareholders will own approximately 47.5 percent of the combined company.
Great Plains Energy's anticipated merger with Westar was unanimously approved by the Great Plains Energy Board and Westar Board of Directors, has received the approvals of each of Great Plains Energy's and Westar's shareholders and has received early termination of the waiting period under the HSR Act with respect to antitrust review. The anticipated merger remains subject to regulatory approvals from KCC, the MPSC, NRC, FERC and FCC; as well as other contractual conditions.
See Note 2 to the consolidated financial statementsCapital Resources; Capital Expenditures", for morefurther information regarding Evergy's projected capital expenditures through 2026; and
•targeting a 70% reduction of CO2 emissions by 2030 (from 2005 levels) and net-zero by 2045 through the anticipated mergercontinued growth of Evergy's renewable energy portfolio and redemption of acquisition financing associated with the Original Merger Agreement.
Expected Plant Retirements
In June 2017, Great Plains Energy and KCP&L announced plans to retire KCP&L's Montrose Station and GMO's Sibley Station by December 31, 2018 and GMO's Lake Road No. 4/6 Unit by December 31, 2019. The decision to retire these generating units, which represent approximately 900 MWs of generating capacity, was primarily driven by the age of the plants, expected environmental compliance costs and expected future generation capacity needs. See Note 1 to the consolidated financial statements for more information regarding the retirement of Sibley No. 3 Unit.older and less efficient fossil fuel plants. See "Transitioning Evergy's Generation Fleet" in Part I, Item 1., Business, for additional information.
Tax Reform
In December 2017, the U.S. Congress passedSee "Cautionary Statements Regarding Certain Forward-Looking Information" and President Donald Trump signed Public Law No. 115-97, commonly referred to as the Tax Cuts and Jobs Act (Tax Act). The Tax Act represents the first major reform in U.S. income tax law since 1986. Most notably, the Tax Act reduces the current top corporate income tax rate from 35% to 21% beginning in 2018, repeals the corporate Alternative Minimum Tax (AMT), makes existing AMT tax credit carryforwards refundable, and changes the deductibility and taxability of certain items, among other things. See Note 21 to the consolidated financial statementsPart I, Item 1A, Risk Factors, for more information regarding the impact of tax reform on Great Plains Energy and KCP&L.
Earnings Overview
Great Plains Energy had a loss available for common shareholders of $143.5 million or $0.67 per share in 2017 compared to earnings of $273.5 million or $1.61 per share in 2016. This decrease in earnings was largely driven by a number of non-recurring impacts due to the anticipated merger with Westar and the impacts of U.S. federal income tax reform. The specific drivers of the decrease in earnings were lower gross margin; higher depreciation expense; a loss on the settlement of the 7.00% Series B Mandatory Convertible Preferred Stock (Series B Preferred Stock) dividend make-whole provisions; a loss on extinguishment of debt related to the redemption of Great Plains Energy's $4.3 billion senior notes; an increase in interest charges; higher income tax expense and increased preferred stock dividend requirements and redemption premium; partially offset by a decrease in injuries and damages expense due to settled litigation and an increase in interest income.
In addition, a higher number of average shares outstanding due to Great Plains Energy's registered public offering of 60.5 million shares of common stock in October 2016 diluted the 2017 loss per share by $0.26.
For additional information regarding the change in earnings (loss), refer to the Great Plains Energy Results of Operations and the Electric Utility Results of Operations sections within this Management's Discussion andinformation.

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Analysis of Financial Condition and Results of Operations. Gross margin is a non-GAAP financial measure. See the explanation of gross margin under Great Plains Energy's Results of Operations.
Adjusted Earnings (Non-GAAP) and Adjusted Earnings Per Share (Non-GAAP)
Great Plains Energy's adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) for 2017 were $269.4 million or $1.74 per share, respectively. Great Plains Energy's adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) for 2016 were $286.0 million and $1.85, respectively. For 2015, adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) were the same as GAAP earnings and GAAP earnings per share at $211.4 million and $1.37, respectively. In addition to earnings (loss) available for common shareholders and diluted earnings (loss) per common share, Great Plains Energy's management uses adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) to evaluate earnings and earnings per share without the impact of the anticipated merger with Westar and the initial impact of U.S. federal income tax reform.
Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) excludes certain costs, expenses, gains, losses and the per share dilutive effect of equity issuances resulting from the anticipated merger and the previous plan to acquire Westar and the income tax expense associated with the revaluation of deferred income taxes and other initial effects resulting from the enactment of U.S. federal income tax reform. This information is intended to enhance an investor's overall understanding of results. Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) are used internally to measure performance against budget and in reports for management and the Great Plains Energy Board. Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report.

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The following table provides a reconciliation between earnings (loss) available for common shareholders and diluted earnings (loss) per common share as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP):
Reconciliation of GAAP to Non-GAAPEarnings (Loss) Earnings (Loss) per Diluted Share
 2017 2016 2015 2017 2016 2015
 (millions, except per share amounts)
Earnings (loss) available for common shareholders$(143.5) $273.5
 $211.4
 $(0.67) $1.61
 $1.37
Costs to achieve the anticipated merger with Westar:           
Operating expense, pre-tax (a)
31.8
 34.2
 —
 0.21
 0.22
 —
Financing, pre-tax (b)
85.5
 35.9
 —
 0.55
 0.24
 —
Mark-to-market impacts of interest rate swaps, pre-tax (c)
(12.1) (79.3) —
 (0.08) (0.51) —
Interest income, pre-tax (d)
(22.8) (3.2) —
 (0.15) (0.02) —
Loss on Series B Preferred Stock dividend make-whole provisions, pre-tax (e)
124.8
 —
 —
 0.80
 —
 —
Loss on extinguishment of debt, pre-tax (f)
82.8
 —
 —
 0.53
 —
 —
Write-off of Series A deferred offering expenses, pre-tax (g)
15.0
 —
 —
 0.10
 —
 —
Income tax expense (benefit) (h)
(59.7) 9.5
 —
 (0.37) 0.06
 —
Preferred stock (i)
37.3
 15.4
 —
 0.24
 0.10
 —
Impact of October 2016 share issuance (j)
N/A
 N/A
 N/A
 (0.26) 0.15
 —
Impact of U.S. federal income tax reform:           
Income tax expense (k)
130.3
 —
 —
 0.84
 —
 —
Adjusted earnings (non-GAAP)$269.4
 $286.0
 $211.4
 $1.74
 $1.85
 $1.37
Average Shares Outstanding           
Shares used in calculating diluted earnings (loss) per common share      215.5 169.8 154.8
Adjustment for October 2016 share issuance (j)
      (60.5) (14.9) —
Shares used in calculating adjusted earnings per share (non-GAAP)      155.0 154.9 154.8
(a) Reflects legal, advisory and consulting fees and certain severance expenses and are included in Costs to achieve the anticipated merger with Westar on the consolidated statements of comprehensive income (loss).
(b) Reflects fees for a bridge term loan facility and interest on Great Plains Energy's $4.3 billion senior notes and are included in Interest charges on the consolidated statements of comprehensive income (loss).
(c) Reflects the mark-to-market impacts of interest rate swaps and is included in Interest charges and Non-operating income on the consolidated statements of comprehensive income (loss).
(d) Reflects interest income earned on the proceeds from Great Plains Energy's October 2016 equity offerings and March 2017 issuance of $4.3 billion senior notes and is included in Non-operating income on the consolidated statements of comprehensive income (loss).
(e) Reflects the loss on the settlement of the Series B Preferred Stock dividend make-whole provisions and is included within Loss on Series B Preferred Stock dividend make-whole provisions on the consolidated statements of comprehensive income (loss).
(f) Reflects the loss on extinguishment of debt due to Great Plains Energy's redemption of its $4.3 billion senior notes and is included within Loss on extinguishment of debt on the consolidated statements of comprehensive income (loss).
(g) Reflects the write-off of deferred offering fees as a result of the termination of the stock purchase agreement for $750 million of 7.25% Mandatory Convertible Preferred Stock, Series A (Series A Preferred Stock) and is included within Non-operating expenses on the consolidated statements of comprehensive income (loss).
(h) Reflects an income tax effect calculated at a 38.9% statutory rate, with the exception of certain non-deductible legal and financing fees.
(i) Reflects reductions to earnings available for common shareholders related to preferred stock dividend requirements for Great Plains Energy's Series B Preferred Stock and redemption premiums associated with Series B Preferred Stock and cumulative preferred stock and are included in Preferred stock dividend requirements and redemption premium on the consolidated statements of comprehensive income (loss).
(j) Reflects the average share impact of Great Plains Energy's issuance of 60.5 million shares of common stock in October 2016.
(k) Reflects income tax expense associated with the revaluation of deferred income taxes and other initial impacts resulting from the enactment of U.S. federal income tax reform.

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Regulatory Proceedings
In January 2022, Evergy Metro and Evergy Missouri West filed applications with the MPSC to request increases to their retail electric revenues of $43.9 million and $27.7 million, respectively, before rebasing fuel and purchased power expense, with a return on equity of 10%. The requests reflect increases related to higher property taxes and the recovery of infrastructure investments made to improve reliability and enhance customer service and were also partially offset by significant customer savings and cost reductions created since the Great Plains Energy and Evergy Kansas Central merger in 2018. Evergy Metro and Evergy Missouri West are also requesting the implementation of tracking mechanisms for both property tax expense and credit loss expense and the creation of a storm reserve as part of their requests with the MPSC.
See Note 64 to the consolidated financial statements for further information regarding the Missouri rate cases in addition to information on other regulatory proceedings.
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Evergy Equity Investment
From time to time, Evergy makes limited equity investments in early-stage energy solution companies. These investments have historically not had a significant impact on Evergy's results of operations. In October 2021, an equity investment in which Evergy held a minority stake through an initial investment of $3.7 million was acquired through a transaction involving a special purpose acquisition company (SPAC). As a result of its equity investment in the company that was acquired in the SPAC transaction, Evergy received shares of the resulting public company upon the closing of the transaction, which are subject to a restriction on sale for 150 days. Evergy recorded a $27.7 million unrealized gain in the fourth quarter of 2021 for the conversion of its shares into the newly formed public company and based on the closing share price as of December 31, 2021 adjusted to reflect the restriction on the sale of the shares. The fair value of Evergy's investment is largely dependent on the performance of the new public company's stock, which is subject to significant market volatility and also affected by the restriction on sale of the shares until March 2022, when the restriction expires. Evergy uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the gains or losses related to equity investments which are subject to a restriction on sale that can create period to period volatility. See "Non-GAAP Measures" within this Executive Summary for additional information.
LEC Unit 4 Securitization
In April 2021, the state of Kansas passed the Utility Financing and Securitization Act (UFSA) which allows certain public utilities, including Evergy Kansas Central and Evergy Metro, to securitize utility assets in order to recover energy transition costs relating to the early retirement of certain generating assets. To recover the energy transition costs through securitization as allowed in the UFSA, a public utility must obtain a predetermination order from the KCC finding that the retirement of the subject generation facility is reasonable. Upon the receipt of a successful predetermination order, the public utility must then file an application with the KCC for a financing order to issue securitized bonds to recover the energy transition costs. The UFSA also allows the pursuit of securitization to help finance qualified extraordinary expenses, such as fuel costs incurred during extreme weather events.
In September 2021, Evergy Kansas Central filed a predetermination request with the KCC for the ratemaking principles and treatment related to its planned investment in approximately 190 MW of solar generation and the planned retirement of coal-fired LEC Unit 4 and related coal-handling facilities for LEC Units 4 and 5, both of which are expected to occur between December 2023 and the first half of 2024. In February 2022, Evergy Kansas Central withdrew its predetermination request with the KCC in order to finalize definitive documentation associated with the solar investment and to develop additional information to enable the KCC to evaluate its predetermination request. Evergy Kansas Central anticipates refiling its predetermination request, including this additional information, later in 2022.
If the KCC finds that Evergy Kansas Central's planned retirement of LEC Unit 4 and investment in 190 MW of solar generation is prudent as part of a predetermination request, Evergy Kansas Central then plans to file an application with the KCC for a financing order authorizing the issuance of securitized bonds to recover energy transition costs associated with the retirement of LEC Unit 4 and the related coal-handling facilities for LEC Units 4 and 5.
February 2021 Winter Weather Event
In February 2021, much of the central and southern United States, including the service territories of the Evergy Companies, experienced a significant winter weather event that resulted in extremely cold temperatures over a multi-day period (February 2021 winter weather event).The February 2021 winter weather event resulted in an increase in the demand for natural gas used by the Evergy Companies for generating electricity and also contributed to the limited availability of other generation resources, including coal and renewables, within the SPP Integrated Marketplace.As part of the February 2021 winter weather event, Evergy incurred natural gas and purchased power costs, net of wholesale revenues, of $365.5 million. This $365.5 million of net fuel and purchased power costs was primarily driven by $296.4 million of costs at Evergy Missouri West and $133.9 million of costs at Evergy Kansas Central, partially offset by $64.8 million of net wholesale revenues at Evergy Metro. The amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event is subject to resettlement activity and further review by the SPP. This review and any subsequent resettlement activity could
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result in increases or decreases to the final amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event and these changes could be material.
As of December 31, 2021, the Evergy Companies have deferred substantially all of the fuel and purchased power costs, net of wholesale revenues, related to the February 2021 winter weather event to a regulatory asset or liability pursuant to their fuel recovery mechanisms and an emergency AAO issued by the KCC in February 2021. Further, in June 2021, Evergy Metro and Evergy Missouri West filed a joint request for an AAO with the MPSC regarding the deferral and subsequent recovery or refund of the February 2021 winter weather event amounts. While the Evergy Companies expect to recover substantially all of any increased fuel and purchased power costs related to the February 2021 winter weather event from customers, the timing of the cost recovery could be delayed or spread over a longer than typical recovery timeframe by the KCC or the MPSC to help moderate monthly customer bill impacts given the extraordinary nature of the February 2021 winter weather event.
The Evergy Companies also engage in limited non-regulated energy marketing activities in various regional power markets that have historically not had a significant impact on the Evergy Companies' results of operations. These energy marketing margins are recorded net in operating revenues on the Evergy Companies' statements of income and comprehensive income. As a result of the elevated market prices experienced in regional power markets across the central and southern United States driven by the February 2021 winter weather event discussed above, Evergy and Evergy Kansas Central recorded $94.5 million of energy marketing margins in 2021 related to the February 2021 winter weather event, primarily driven by activities in the Electric Reliability Council of Texas (ERCOT).
See Notes 1 and 4 to the consolidated financial statements for additional information regarding the February 2021 winter weather event and related AAOs.
Bluescape Energy Partners, LLC (Bluescape) Securities Purchase Agreement
See Note 17 to the consolidated financial statements for information regarding regulatory proceedings.Evergy's securities purchase agreement with an affiliate of Bluescape to purchase Evergy's common stock and a warrant that was completed in April 2021.
Impact of Recently Issued Accounting StandardsCOVID-19
See Note 1 to the consolidated financial statementsPart I, Item 1A, Risk Factors for information regarding the impact of recently issued accounting standards.COVID-19 on the Evergy Companies.
Earnings Overview
The following table summarizes Evergy's net income and diluted earnings per share (EPS).
2021Change2020
(millions, except per share amounts)
Net income attributable to Evergy, Inc.$879.7 $261.4 $618.3 
Earnings per common share, diluted3.83 1.11 2.72 
Net income attributable to Evergy, Inc. increased in 2021, compared to 2020, primarily due to non-regulated energy marketing margins related to the February 2021 winter weather event, higher retail sales driven by favorable weather and demand, lower operating and maintenance expenses, higher equity allowance for funds used during construction (AFUDC), higher investment earnings and lower interest expense; partially offset by higher property taxes, higher depreciation expense and higher income tax expense.
Diluted EPS increased in 2021, compared to 2020, primarily due to the increase in net income attributable to Evergy, Inc. discussed above.
For additional information regarding the change in net income, refer to the Evergy Results of Operations section within this MD&A.
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Non-GAAP Measures
Adjusted Earnings (non-GAAP) and Adjusted EPS (non-GAAP)
Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for 2021 were $812.6 million or $3.54 per share, respectively. For 2020, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $705.5 million or $3.10 per share, respectively. In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the income or costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event and gains or losses related to equity investments which are subject to a restriction on sale that can create period to period volatility, as well as costs resulting from executive transition, severance, advisor expenses, COVID-19 vaccine incentives and the revaluation of deferred tax assets and liabilities from the Kansas corporate income tax rate change.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to enhance an investor's overall understanding of results. Management believes that adjusted earnings (non-GAAP) provides a meaningful basis for evaluating Evergy's operations across periods because it excludes certain items that management does not believe are indicative of Evergy's ongoing performance.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are used internally to measure performance against budget and in reports for management and the Evergy Board. Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report.
The following table provides a reconciliation between net income attributable to Evergy, Inc. and diluted EPS as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP).
Earnings (Loss)Earnings (Loss) per Diluted ShareEarnings (Loss)Earnings (Loss) per Diluted Share
20212020
(millions, except per share amounts)
Net income attributable to Evergy, Inc.$879.7 $3.83 $618.3 $2.72 
Non-GAAP reconciling items:
Non-regulated energy marketing margin related to February 2021
   winter weather event, pre-tax(a)
(94.5)(0.41)— — 
Non-regulated energy marketing costs related to February 2021
   winter weather event, pre-tax(b)
7.9 0.03 — — 
Executive transition costs, pre-tax(c)
10.8 0.05 — — 
Severance costs, pre-tax(d)
2.8 0.01 66.3 0.29 
Advisor expenses, pre-tax(e)
11.6 0.05 32.3 0.14 
COVID-19 vaccine incentive, pre-tax(f)
1.2 0.01 — — 
Restricted equity investment gains, pre-tax(g)
(27.7)(0.12)— — 
Income tax expense (benefit)(h)
20.8 0.09 (25.2)(0.11)
Kansas corporate income tax change(i)
— — 13.8 0.06 
Adjusted earnings (non-GAAP)$812.6 $3.54 $705.5 $3.10 
(a)Reflects non-regulated energy marketing margins related to the February 2021 winter weather event and are included in operating revenues on the consolidated statements of comprehensive income.
(b)Reflects non-regulated energy marketing incentive compensation costs related to the February 2021 winter weather event and are included in operating and maintenance expense on the consolidated statements of comprehensive income.
(c)Reflects costs associated with executive transition including inducement bonuses, severance agreements and other transition expenses of which $10.5 million is included in operating and maintenance expense and $0.3 million is included in other expense in 2021 on the consolidated statements of comprehensive income.
(d)Reflects severance costs incurred associated with certain voluntary severance programs at the Evergy Companies and are included in operating and maintenance expense on the consolidated statements of comprehensive income.
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(e)Reflects advisor expenses incurred associated with strategic planning and are included in operating and maintenance expense on the consolidated statements of comprehensive income.
(f)Reflects incentive compensation costs incurred associated with employees becoming fully vaccinated against COVID-19 and are included in operating and maintenance expense on the consolidated statements of comprehensive income.
(g)Reflects gains related to equity investments which are subject to a restriction on sale and are included in investment earnings on the consolidated statements of comprehensive income.
(h)Reflects an income tax effect calculated at a statutory rate of approximately 22% in 2021 and 26% in 2020, with the exception of certain non-deductible items.
(i)Reflects the revaluation of Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's deferred income tax assets and liabilities from the Kansas corporate income tax rate change and are included in income tax expense on the consolidated statements of comprehensive income.
2018 Adjusted Operating and Maintenance Expense
The following table provides a reconciliation between 2018 operating and maintenance expense and 2018 pro forma operating and maintenance expense as determined in accordance with GAAP and 2018 adjusted operating and maintenance expense (non-GAAP). Evergy's 2018 adjusted operating and maintenance expense (non-GAAP) is used as the base for Evergy's targeted operating and maintenance expense reductions by 2025.
(millions)
2018 Operating and maintenance expense$1,115.8 
Pro forma adjustments(a):
Great Plains Energy operating and maintenance expense prior to the merger317.9 
Non-recurring merger costs and other(101.3)
2018 Pro forma operating and maintenance expense$1,332.4 
Non-GAAP reconciling items:
Voluntary severance costs(b)
(23.5)
Deferral of merger transition costs(c)
28.5 
Inventory write-offs at retiring generating units(d)
(31.0)
2018 Adjusted operating and maintenance expense (non-GAAP)$1,306.4 
(a)Reflects pro forma adjustments made in accordance with Article 11 of Regulation S-X and ASC 805 - Business Combinations. See Note 2 to the consolidated financial statements in the Evergy Companies' combined 2018 Annual Report on Form 10-K for further information regarding these adjustments.
(b)Reflects severance costs incurred associated with certain voluntary severance programs at the Evergy Companies and are included in operating and maintenance expense on the 2018 consolidated statements of comprehensive income in the Evergy Companies' combined 2018 Annual Report on Form 10-K.
(c)Reflects the portion of the $47.8 million deferral of merger transition costs to a regulatory asset in June 2018 that related to costs incurred prior to 2018. The remaining merger transition costs included within the $47.8 million deferral were both incurred and deferred in 2018 and did not impact earnings. This item is included in operating and maintenance expense on the 2018 consolidated statements of comprehensive income in the Evergy Companies' combined 2018 Annual Report on Form 10-K.
(d)Reflects obsolete inventory write-offs for Evergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center, Units 1 and 2 at Gordon Evans Energy Center, Evergy Metro's Montrose Station and Evergy Missouri West's Sibley Station and are included in operating and maintenance expense on the 2018 consolidated statements of comprehensive income in the Evergy Companies' combined 2018 Annual Report on Form 10-K.
Wolf Creek Refueling Outage
Wolf Creek's latestmost recent refueling outage began on September 10, 2016in March 2021 and ended on November 21, 2016.the unit returned to service in May 2021. Wolf Creek's next refueling outage is planned to begin in Marchthe third quarter of 2018.
2022.
ENVIRONMENTAL MATTERS
See Note 1514 to the consolidated financial statements for information regarding environmental matters.
RELATED PARTY TRANSACTIONS
See Note 1816 to the consolidated financial statements for information regarding related party transactions.
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CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Management considers an accounting estimate to be critical if it requires assumptions to be made that were uncertain at the time the estimate was made and changes in the estimate, or different estimates that could have been used, could have a material impact on Great Plains Energy'sEvergy's results of operations and financial position. Management has identified the following accounting policies as critical to the understanding of Great Plains Energy'sEvergy's results of operations and financial position. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Great Plains Energy Board of Directors.Evergy Board.
Pensions
Great Plains EnergyEvergy incurs significant costs in providing non-contributory defined pension benefits. The costs are measured using actuarial valuations that are dependent upon numerous factors derived from actual plan experience and assumptions of future plan experience.
Pension costs are impacted by actual employee demographics (including age, life expectancies, compensation levels and employment periods), earnings on plan assets, the level of contributions made to the plan, and plan amendments. In addition, pension costs are also affected by changes in key actuarial assumptions, including anticipated rates of return on plan assets and the discount rates used in determining the projected benefit obligation and pension costs.
The assumed rate of return on plan assets was developed based on the weighted-average of long-term returns forecast for the expected portfolio mix of investments held by the plan. The assumed discount rate was selected based on the prevailing market rate of fixed income debt instruments with maturities matching the expected timing of the benefit obligation. These assumptions, updated annually at the measurement date, are based on management's best estimates and judgment; however, material changes may occur if these assumptions differ from actual events. See Note 9 to the consolidated financial statements for information regarding the assumptions used to determine benefit obligations and net costs.

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The following table reflects the sensitivities associated with a 0.5% increase or a 0.5% decrease in key actuarial assumptions.assumptions for Evergy's qualified pension plans. Each sensitivity reflects the impact of the change based on a change in that assumption only.only.
  Impact onImpact on
  Projected2017Projected2022
Change inBenefitPensionChange inBenefitPension
Actuarial assumptionAssumptionObligationExpenseActuarial assumptionAssumptionObligationExpense
  (millions)(millions)
Discount rate0.5%increase $(97.4) $(6.3) Discount rate0.5 %increase$(193.6)$(18.5)
Rate of return on plan assets0.5%increase —
 (3.7) Rate of return on plan assets0.5 %increase— (7.9)
Rate of compensationRate of compensation0.5 %increase50.7 9.4 
Discount rate0.5%decrease 110.1
 7.0
 Discount rate0.5 %decrease219.6 20.7 
Rate of return on plan assets0.5%decrease —
 3.7
 Rate of return on plan assets0.5 %decrease— 7.9 
Rate of compensationRate of compensation0.5 %decrease(47.3)(8.8)
Pension expense for KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West is recorded in accordance with rate orders from the MPSCKCC and KCC.MPSC. The orders allow the difference between pension costs under GAAP and pension costs for ratemaking to be recorded as a regulatory asset or liability with future ratemaking recovery or refunds, as appropriate.
In 2017, Great Plains Energy's2021, Evergy's pension expense was $113.2$153.7 million under GAAP and $99.4$171.0 million for ratemaking. The impact on 20172022 pension expense in the table above reflects the impact on GAAP pension costs. Under the Evergy Companies' rate agreements, any increase or decrease in GAAP pension expense would beis deferred into a regulatory asset or
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liability for future ratemaking treatment. See Note 9 to the consolidated financial statements for additional information regarding the accounting for pensions.
Market conditions and interest rates significantly affect the future assets and liabilities of the plan. It is difficult to predict future pension costs, changes in pension liability and cash funding requirements due to the inherent uncertainty of market conditions.
Revenue Recognition
Evergy recognizes revenue on the sale of electricity to customers over time as the service is provided in the amount it has the right to invoice. Revenues recorded include electric services provided but not yet billed by Evergy. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. Evergy's estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates. Evergy's unbilled revenue estimate is affected by factors including fluctuations in energy demand, weather, line losses and changes in the composition of customer classes. See Note 3 to the consolidated financial statements for the balance of unbilled receivables for Evergy as of December 31, 2021 and 2020.
Regulatory Assets and Liabilities
The CompanyEvergy has recorded assets and liabilities on its consolidated balance sheets resulting from the effects of the ratemaking process, which would not otherwise be recorded under GAAP. Regulatory assets represent incurred costs that are probable of recovery from future revenues. Regulatory liabilities represent future reductions in revenues or refunds to customers.
Management regularly assesses whether regulatory assets and liabilities are probable of future recovery or refund by considering factors such as decisions by the MPSC, KCC or FERC in Electric Utility'sEvergy's rate case filings; decisions in other regulatory proceedings, including decisions related to other companies that establish precedent on matters applicable to Electric Utility;Evergy; and changes in laws and regulations. If recovery or refund of regulatory assets or liabilities is not approved by regulators or is no longer deemed probable, these regulatory assets or liabilities are recognized in the current period results of operations. Electric Utility'sEvergy's continued ability to meet the criteria for recording regulatory assets and liabilities may be affected in the future by restructuring and deregulation in the electric industry or changes in accounting rules. In the event that the criteria no longer applied to all or a portion of Electric Utility'sEvergy's operations, the related regulatory assets and liabilities would be written off unless an appropriate regulatory recovery mechanism were provided. Additionally, these factors could result in an impairment on utility plant assets. See Note 64 to the consolidated financial statements for additional information.
Impairments of Assets Intangible Assets and Goodwill
Long-lived assets and intangible assets subject to amortization are required to be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable as prescribed under GAAP.

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Accounting rules require goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. Great Plains Energy's regulated electric utilityEvergy's consolidated operations are considered one reporting unit for assessment of impairment, as they are included within the same operating segmentmanagement assesses financial performance and have similar economic characteristics.

allocates resources on a consolidated basis. The annual impairment test for the $169.0$2,336.6 million of GMO acquisition goodwill from the Great Plains Energy and Evergy Kansas Central merger was conducted on Septemberas of May 1, 2017. Fair2021. The fair value of the reporting unit substantially exceeded the carrying amount, including goodwill; therefore,goodwill. As a result, there was no impairment of goodwill.
The determination of fair value offor the reporting unit consisted of two valuation techniques: an income approach consisting of a discounted cash flow analysis and a market approach consisting of a determination of reporting unit invested capital using a market multiplesmultiple derived from the historical revenue, earnings before interest, income taxes, depreciation and amortization net utility asset values and market prices of the stock of peer companies. The results of the two techniques
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were evaluated and weighted to determine a point within the range that management considered representative of fair value for the reporting unit, which involves a significant amount of management judgment.
The discounted cash flow analysis is most significantly impacted by two assumptions: estimated future cash flows and the discount rate applied to those cash flows. Management determineddetermines the appropriate discount rate to be based on the reporting unit's weighted average cost of capital (WACC). The WACC takes into account both the return on equity authorized by the MPSCKCC and KCCMPSC and after-tax cost of debt. Estimated future cash flows are based on Great Plains Energy'sEvergy's internal business plan, which assumes the occurrence of certain events in the future, such as the outcome of future rate filings, future approved rates of return on equity, anticipated earnings/returns related toof and earnings on future capital investments, continued recovery of cost of service and the renewal of certain contracts. Management also makes assumptions regarding the run rate of operations, maintenance and general and administrative costs based on the expected outcome of the aforementioned events. Should the actual outcome of some or all of these assumptions differ significantly from the current assumptions, revisions to current cash flow assumptions could cause the fair value of Great Plains Energy'sthe Evergy reporting unit under the income approach to be significantly different in future periods and could result in a future impairment charge to goodwill.
The market approach analysis is most significantly impacted by management's selection of relevant peer companies as well as the determination of an appropriate control premium to be added to the calculated invested capital of the reporting unit, as control premiums associated with a controlling interest are not reflected in the quoted market price of a single share of stock. Management determineddetermines an appropriate control premium by using an average of control premiums for recent acquisitions in the industry. Changes in results of peer companies, selection of different peer companies and future acquisitions with significantly different control premiums could result in a significantly different fair value of Great Plains Energy'sthe Evergy reporting unit.
Income Taxes
Income taxes are accounted for using the asset/liability approach. Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Deferred investment tax credits are amortized ratably over the life of the related property. Deferred tax assets are also recorded for net operating losses, capital losses and tax credit carryforwards. The CompanyEvergy is required to estimate the amount of taxes payable or refundable for the current year and the deferred tax liabilities and assets for future tax consequences of events reflected in the Company'sEvergy's consolidated financial statements or tax returns. Actual results could differ from these estimates for a variety of reasons including changes in income tax laws, enacted tax rates and results of audits by taxing authorities. This process also requires management to make assessments regarding the timing and probability of the ultimate tax impact from which actual results may differ. The CompanyEvergy records valuation allowances on deferred tax assets if it is determined that it is more likely than not that the asset will not be realized. See Note 2119 to the consolidated financial statements for additional information.

Asset Retirement Obligations
Evergy has recognized legal obligations associated with the disposal of long-lived assets that result from the acquisition, construction, development or normal operation of such assets. Concurrent with the recognition of the liability, the estimated cost of the ARO incurred at the time the related long-lived assets were either acquired, placed in service or when regulations establishing the obligation became effective is also recorded to property, plant and equipment, net on the consolidated balance sheets. The recording of AROs for regulated operations has no income statement impact due to the deferral of the adjustments through the establishment of a regulatory asset or an offset to a regulatory liability.
Evergy initially recorded AROs at fair value for the estimated cost to decommission Wolf Creek (94% indirect share), retire wind generating facilities, dispose of asbestos insulating material at its power plants, remediate ash disposal ponds and close ash landfills, among other items. ARO refers to a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement may be conditional on a future event that may or may not be within the control of the entity. In determining Evergy's AROs, assumptions are made regarding probable future disposal costs and the timing of their occurrence. The results of these assumptions are discounted using credit-adjusted risk-free rates (CARFR). The CARFR is determined as the current U.S. Treasury bonds rates
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corresponding to the period of expected settlement activities and is adjusted for the associated bond rates Evergy would be charged to borrow for the specific time period. Any change in these assumptions could have a significant impact on Evergy's AROs reflected on its consolidated balance sheets.
GREAT PLAINS ENERGYAs of December 31, 2021 and 2020, Evergy had recorded AROs of $960.1 million and $941.9 million, respectively. See Note 6 to the consolidated financial statements for more information regarding Evergy's AROs.
EVERGY RESULTS OF OPERATIONS
Evergy's results of operations and financial position are affected by a variety of factors including rate regulation, fuel costs, weather, customer behavior and demand, the economy and competitive forces.
Substantially all of Evergy's revenues are subject to state or federal regulation. This regulation has a significant impact on the price the Evergy Companies charge for electric service. Evergy's results of operations and financial position are affected by its ability to align overall spending, both operating and capital, within the frameworks established by its regulators.
Wholesale revenues are impacted by, among other factors, demand, cost and availability of fuel and purchased power, price volatility, available generation capacity, transmission availability and weather.
The Evergy Companies use coal, uranium and gas for the generation of electricity for their customers and also purchase power through renewable power purchase agreements or on the open market. The prices for fuel used in generation or the market price of power purchases can fluctuate significantly due to a variety of factors including supply, demand, weather and the broader economic environment. Evergy Kansas Central, Evergy Metro and Evergy Missouri West have fuel recovery mechanisms in their Kansas and Missouri jurisdictions, as applicable, that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in net energy costs from the amount set in base rates without a general rate case proceeding.
Weather significantly affects the amount of electricity that Evergy's customers use as electricity sales are seasonal. As summer peaking utilities, the third quarter typically accounts for the greatest electricity sales by the Evergy Companies. Hot summer temperatures and cold winter temperatures prompt more demand, especially among residential and commercial customers, and to a lesser extent, industrial customers. Mild weather reduces customer demand.
Energy efficiency investments by customers and the Evergy Companies also can affect the demand for electric service. Through MEEIA, Evergy Metro and Evergy Missouri West offer energy efficiency and demand side management programs to their Missouri retail customers and recover program costs, throughput disincentive, and as applicable, certain earnings opportunities in retail rates through a rider mechanism.
The Evergy Companies' taxes other than income taxes, of which property taxes are a significant component, can fluctuate significantly due to a variety of factors, including changes in taxable values and property tax rates. Evergy Kansas Central and Evergy Metro's Kansas jurisdiction have property tax surcharges that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in property tax costs from the amounts set in base rates without a general rate case proceeding.
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The following table summarizes Great Plains Energy'sEvergy's comparative results of operations.
2021Change2020
 (millions)
Operating revenues$5,586.7 $673.3 $4,913.4 
Fuel and purchased power1,557.0 458.0 1,099.0 
SPP network transmission costs290.4 27.2 263.2 
Operating and maintenance1,107.5 (55.5)1,163.0 
Depreciation and amortization896.4 16.3 880.1 
Taxes other than income tax380.5 16.3 364.2 
Income from operations1,354.9 211.0 1,143.9 
Other income (expense), net18.8 54.9 (36.1)
Interest expense372.6 (11.3)383.9 
Income tax expense117.4 15.2 102.2 
Equity in earnings of equity method investees, net of income taxes8.2 (0.1)8.3 
Net income891.9 261.9 630.0 
Less: Net income attributable to noncontrolling interests12.2 0.5 11.7 
Net income attributable to Evergy, Inc.$879.7 $261.4 $618.3 
  2017 2016 2015
 (millions)
Operating revenues $2,708.2
 $2,676.0
 $2,502.2
Fuel and purchased power (608.6) (590.1) (608.7)
Transmission (105.7) (84.8) (89.1)
Other operating expenses (987.4) (1,003.2) (943.9)
Costs to achieve the anticipated merger with Westar (31.8) (34.2) —
Depreciation and amortization (371.1) (344.8) (330.4)
Operating income 603.6
 618.9
 530.1
Non-operating income and expenses 19.3
 2.8
 3.7
Loss on Series B Preferred Stock dividend make-whole provisions (124.8) —
 —
Loss on extinguishment of debt (82.8) —
 —
Interest charges (290.7) (161.5) (199.3)
Income tax expense (233.3) (172.2) (122.7)
Income from equity investments 2.5
 2.0
 1.2
Net income (loss) (106.2) 290.0
 213.0
Preferred dividends and redemption premium (37.3) (16.5) (1.6)
Earnings (loss) available for common shareholders $(143.5) $273.5
 $211.4
Reconciliation of gross margin to operating revenues:      
Operating revenues $2,708.2
 $2,676.0
 $2,502.2
Fuel and purchased power (608.6) (590.1) (608.7)
Transmission (105.7) (84.8) (89.1)
Gross margin (a)
 $1,993.9
 $2,001.1
 $1,804.4
(a)
Gross margin is a non-GAAP financial measure. See explanation of gross margin below.
2017 Compared to 2016
ElectricEvergy Utility Segment
Electric Utility's net income decreased $35.2 million in 2017 compared to 2016 primarily due to:
a $7.2 million decrease in gross margin driven by cooler weather and a performance incentive for energy efficiency programs under the Missouri Energy Efficiency Investment Act (MEEIA), primarily recognized in 2016; partially offset by an increase in weather-normalized retail demand, an increase in the recovery of program costs for energy efficiency programs under MEEIA, favorable arbitration and insurance settlements in 2017 and an increase in other margin items;
an $8.2 million decrease in other operating expense primarily driven by a decrease in plant operating and maintenance expense and a decrease in injuries and damages expense primarily due to settled litigation; partially offset by an increase in program costs for energy efficiency programs under MEEIA;
a $26.3 million increase in depreciation and amortization expense primarily driven by capital additions; and
a $5.1 million increase in income tax expense primarily driven by the revaluation of KCP&L's and GMO's deferred income taxes not included in rate base as a result of the enactment of U.S. federal income tax reform in December 2017 and decreased wind production tax credits in 2017; partially offset by decreased pre-tax income.


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Corporate and Other Activities
Great Plains Energy's corporate and other activities net loss increased $381.8 million in 2017 compared to 2016 primarily due to:
$7.5 million of other operating expenses for the settlement of litigation at MPS Merchant in 2016;
a $2.3 million decrease in operating expenses for costs to achieve the anticipated merger with Westar;
a $130.8 million increase in interest charges due to:
◦an $81.2 million decrease in the mark-to-market gain on deal contingent interest rate swaps entered into in June 2016 to hedge against interest rate fluctuations prior to Great Plains Energy's issuance of $4.3 billion senior notes in March 2017; and
◦a $49.6 million increase in costs incurred to finance the acquisition of Westar under the Original Merger Agreement including $59.1 million of interest on Great Plains Energy's $4.3 billion senior notes issued in March 2017 and redeemed in July 2017 and a decrease of $9.2 million of fees and expenses for a bridge term loan facility;
a $33.6 million increase in non-operating income due to $14.0 million of mark-to-market gains on deal contingent interest rate swaps and an increase of $19.6 million of interest income earned on increased cash and cash equivalents at Great Plains Energy in 2017 related to the proceeds from Great Plains Energy's October 2016 common stock and Series B Preferred Stock offerings and March 2017 issuance of $4.3 billion of senior notes;
a $15.0 million increase in non-operating expenses due to the write-off of previously deferred offering fees as a result of the termination of the stock purchase agreement for $750 million of Series A Preferred Stock between Great Plains Energy and OCM Credit Portfolio LP (OMERS) in July 2017;
a $124.8 million loss on the settlement of the Series B Preferred Stock dividend make-whole provisions in connection with the redemption of Great Plains Energy's Series B Preferred Stock in August 2017;
an $82.8 million loss on extinguishment of debt due to Great Plains Energy's redemption of its $4.3 billion senior notes in July 2017;
a $66.2 million increase in income tax expense related to these items;
a $21.9 million increase in reductions to earnings available for common shareholders primarily due to preferred stock dividend requirements and the redemption premium for Great Plains Energy's Series B Preferred Stock issued in October 2016 and redeemed in August 2017; and
a $119.2 million increase in income tax expense due to the enactment of U.S. federal income tax reform in December 2017, consisting of $110.1 million related to the revaluation of GMO's non-regulated deferred income tax assets and $9.1 million of income tax expense related to the reassessment of the valuation allowance needed for the realization of refundable AMT credits and state net operating loss (NOL) carryforwards.
2016 Compared to 2015
Electric Utility Segment
Electric Utility's net income increased $68.3 million in 2016 compared to 2015 primarily due to:
a $196.7 million increase in gross margin driven by new retail rates and cost recovery mechanisms, warmer weather and an increase in the recovery of program costs and throughput disincentive as well as a performance incentive for energy efficiency programs under MEEIA, partially offset by a decrease in weather-normalized retail demand;
a $50.0 million increase in other operating expenses driven by an increase in pension expense, an increase in program costs for energy efficiency programs under MEEIA, an increase in plant operating and maintenance expense, an increase in injuries and damages expense and an increase in general taxes driven by higher property taxes and higher gross receipts taxes due to an increase in retail revenues;
$15.9 million of operating expenses for costs to achieve the anticipated merger with Westar;

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a $14.4 million increase in depreciation and amortization expense driven by capital additions;
a $5.2 million increase in interest charges primarily due to an increase in interest expense in 2016 related to KCP&L's issuance of $350 million of 3.65% Senior Notes in August 2015; partially offset by a decrease in interest expense due to KCP&L's purchase in lieu of redemption of its $50.0 million and $21.9 million Environmental Improvement Revenue Refunding (EIRR) Series 2005 bonds in September 2015; and
a $43.5 million increase in income tax expense driven by an increase in pre-tax income.
Corporate and Other Activities
Great Plains Energy's corporate and other activities net loss increased $6.2 million in 2016 compared to 2015 primarily due to:
$7.5 million of other operating expenses for the settlement of litigation at MPS Merchant in 2016;
$18.3 million of operating expenses for costs to achieve the anticipated merger with Westar;
$35.9 million of interest charges for fees incurred for a bridge term loan facility;
a $79.3 million mark-to-market gain on interest rate swaps entered into in June 2016 to hedge against interest rate fluctuations on future issuances of long-term debt expected to be issued to finance a portion of the cash consideration for the acquisition of Westar under the Original Merger Agreement;
$3.2 million of interest income earned on the proceeds from Great Plains Energy's October 2016 common stock and depositary share offerings;
$12.7 million of income tax expense related to these items; and
$15.4 million of reductions to earnings available for common shareholders consisting of $14.8 million of dividends on Great Plains Energy's Series B Preferred Stock issued in October 2016 and $0.6 million related to the redemption of Great Plains Energy's cumulative preferred stock in August 2016.
Gross Margin and MWh Sales
GrossUtility gross margin is a financial measure that is not calculated in accordance with GAAP.  GrossUtility gross margin, as used by Great Plains Energy and KCP&L,the Evergy Companies, is defined as operating revenues less fuel and purchased power costs and transmission.amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power and certain transmission costs, offset by wholesale sales margin, are subject to recovery through cost adjustment mechanisms.  As a result, changes in fuel and purchased power costs are offset in operating revenues increase or decreasewith minimal impact on net income. In addition, SPP network transmission costs fluctuate primarily due to investments by SPP members for upgrades to the transmission grid within the SPP RTO.  As with fuel and purchased power costs, changes in relationSPP network transmission costs are mostly reflected in the prices charged to a significant portion of thesecustomers with minimal impact on net income. See Note 2 to the consolidated financial statements for additional information regarding the manner in which the Evergy Companies' reflect SPP revenues and expenses.
Management believes that utility gross margin provides a meaningful basis for evaluating Electric Utility'sthe Evergy Companies' operations across periods because utility gross margin excludes the revenue effect of fluctuations in these expenses.  GrossUtility gross margin is used internally to measure performance against budget and in reports for management and the Great Plains EnergyEvergy Board.  Utility gross margin should be viewed as a supplement to, and not a substitute for, income from operations, which is the most directly comparable financial measure prepared in accordance with GAAP. The Evergy Companies' definition of utility gross margin may differ from similar terms used by other companies.

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ELECTRIC UTILITY RESULTS OF OPERATIONS
The following table summarizes Electric Utility's results of operations.
  2017 2016 2015 
 (millions)
Operating revenues $2,708.2
 $2,676.0
 $2,502.2
 
Fuel and purchased power (608.6) (590.1) (608.7) 
Transmission (105.7) (84.8) (89.1) 
Other operating expenses (982.0) (990.2) (940.2) 
Costs to achieve the anticipated merger with Westar (15.7) (15.9) —
 
Depreciation and amortization (371.1) (344.8) (330.4) 
Operating income 625.1
 650.2
 533.8
 
Non-operating income and expenses (1.9) 2.3
 1.7
 
Interest charges (196.9) (196.1) (190.9) 
Income tax expense (169.4) (164.3) (120.8) 
Net income $256.9
 $292.1
 $223.8
 
Reconciliation of gross margin to operating revenue:       
Operating revenues $2,708.2
 $2,676.0
 $2,502.2
 
Fuel and purchased power (608.6) (590.1) (608.7) 
Transmission (105.7) (84.8) (89.1) 
Gross margin (a)
 $1,993.9
 $2,001.1
 $1,804.4
 
(a)
Gross margin is a non-GAAP financial measure. See explanation of gross margin under Great Plains Energy's Results of Operations.
Electric Utility Gross Margin and MWh Sales
The following tables summarize Electric Utility'sEvergy's utility gross margin and MWhs sold.
Revenues and ExpensesMWhs Sold
Utility Gross Margin2021Change20202021Change2020
Retail revenues(millions)(thousands)
Residential$1,918.3 $9.1 $1,909.2 15,715 232 15,483 
Commercial1,681.3 39.6 1,641.7 17,659 664 16,995 
Industrial597.0 8.3 588.7 8,608 365 8,243 
Other retail revenues33.1 (5.4)38.5 131 (1)132 
Total electric retail4,229.7 51.6 4,178.1 42,113 1,260 40,853 
Wholesale revenues717.2 453.2 264.0 15,916 1,056 14,860 
Transmission revenues356.8 38.3 318.5 N/AN/AN/A
Other revenues283.0 130.2 152.8 N/AN/AN/A
Operating revenues5,586.7 673.3 4,913.4 58,029 2,316 55,713 
Fuel and purchased power(1,557.0)(458.0)(1,099.0)
SPP network transmission costs(290.4)(27.2)(263.2)
Utility gross margin (a)
3,739.3 188.1 3,551.2 
Operating and maintenance(1,107.5)55.5 (1,163.0)
Depreciation and amortization(896.4)(16.3)(880.1)
Taxes other than income tax(380.5)(16.3)(364.2)
Income from operations$1,354.9 $211.0 $1,143.9 
   %   %   
Gross Margin (a)
2017 
Change(c)
 2016 
Change(c)
 2015 
Retail revenues(millions) 
Residential$1,088.5
 —
 $1,092.5
 9
 $1,006.2
 
Commercial1,092.6
 2
 1,066.0
 6
 1,001.0
 
Industrial238.3
 4
 229.6
 3
 222.3
 
Other retail revenues18.7
 (10) 20.9
 3
 20.4
 
Provision for rate refund10.7
 N/M
 (9.6) N/M
 —
 
Energy efficiency (MEEIA)(b)
66.4
 (17) 80.0
 55
 51.5
 
Total retail2,515.2
 1
 2,479.4
 8
 2,301.4

Wholesale revenues131.8
 (7) 142.0
 (3) 147.1
 
Other revenues61.2
 12
 54.6
 2
 53.7
 
Operating revenues2,708.2
 1
 2,676.0
 7
 2,502.2

Fuel and purchased power(608.6) 3
 (590.1) (3) (608.7) 
Transmission(105.7) 25
 (84.8) (5) (89.1) 
Gross margin$1,993.9
 —
 $2,001.1
 11
 $1,804.4

(a)
Gross margin is a non-GAAP financial measure. See explanation of gross margin under Great Plains Energy's Results of Operations.
(b)
Consists of recovery of program costs of $55.0 million, $49.3 million and $42.9 million for 2017, 2016 and 2015, respectively, that have a direct offset in utility operating and maintenance expenses, recovery of throughput disincentive of $11.2 million, $15.1 million and $8.6 million for 2017, 2016 and 2015, respectively, and a performance incentive of $0.2 million and $15.6 million for 2017 and 2016, respectively.
(c)
N/M - not meaningful

(a) Utilitygross margin is a non-GAAP financial measure.  See explanation of utility gross margin above.
Evergy's utility gross margin increased $188.1 million in 2021, compared to 2020, driven by:
42
Table•$94.5 million of Contentsnon-regulated energy marketing margins recognized at Evergy Kansas Central related to the February 2021 winter weather event;

•an $84.1 million increase primarily due to higher retail sales driven by favorable weather (cooling degree days increased 13%, partially offset by a 5% decrease in heating degree days) and an increase in weather-normalized commercial and industrial demand partially offset by a decrease in weather-normalized residential demand;

•a $38.3 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC transmission formula rate (TFR) effective in January 2021; and
•a $1.4 million net increase due to other impacts from the February 2021 winter weather event driven by:
   %   %   
MWh Sales2017 Change 2016 Change 2015 
Retail MWh sales(thousands) 
Residential8,564
 (2) 8,774
 2
 8,585
 
Commercial10,695
 (1) 10,796
 —
 10,777
 
Industrial3,105
 (1) 3,149
 (1) 3,191
 
Other retail MWh sales102
 (11) 115
 (1) 116
 
Total retail22,466
 (2) 22,834
 1
 22,669
 
Wholesale MWh sales7,241
 3
 7,063
 9
 6,512
 
Total MWh sales29,707
 (1) 29,897
 3
 29,181
 
Electric Utility's residential customers' usage is significantly affected◦a $33.8 million increase at Evergy Kansas Central driven by weather. Bulk power sales, the major componenthigher utility gross margin at its non-regulated 8% ownership share of Jeffrey Energy Center (JEC) due to higher wholesale sales vary with system requirements, generating unit availability, transmission availability, fuel costs,prices and requirementsMWhs sold in February 2021; partially offset by
◦a $21.0 million decrease at Evergy Missouri West driven by $14.8 million of other electric systems. Electric Utility's revenues contain certain recovery mechanisms as follows:
KCP&L's Kansas retail rates contain an Energy Cost Adjustment (ECA) tariff. The ECA tariff reflects the projected annual amounts of fuel, purchased power, emission allowances and asset-based off-system sales margin. These projected amounts are subject to quarterly re-forecasts. Any difference between the ECA revenue collected and the actual ECA amounts for a given year (which may be positive or negative) is recorded either as a reduction ofincreased fuel and purchased power expense (for under-recoveries) orcosts in February 2021 that are not currently recoverable from customers through its fuel recovery mechanism and a reduction of retail revenues (for over-recoveries) and deferred as a regulatory asset or liability to be recovered from or refunded to Kansas electric retail customers over twelve months beginning April 1 of the succeeding year.
KCP&L's Kansas retail rates contain a Transmission Delivery Charge (TDC) rider. The TDC tariff reflects a mixture of historical and projected costs$6.2 million decrease related to transmission service, certain RTO fees, transmissiona special requirements contract with an industrial customer; and
◦an $11.4 million decrease at Evergy Metro primarily driven by jurisdictional allocation differences currently present between its fuel recovery mechanisms in Missouri and Kansas regarding its refund to customers for the net increase in wholesale revenues in February 2021; partially offset by
•a $30.2 million decrease in revenues at Evergy Kansas Central and Evergy Metro due to rate base, and transmission operating and maintenance expense. These costs are subjectreductions beginning January 1, 2021, in Kansas to an annual true-up with a twelve month recovery period. The TDC true-up is recorded either as a reduction of transmission expense (for under-recoveries) or a reduction of retail revenues (for over-recoveries) and deferred as a regulatory asset or liability to be recoveredreflect their exemption from or refunded to KCP&L's Kansas electric retail customers. The TDC became effective in conjunction with new retail rates on October 1, 2015.
KCP&L's Missouri retail rates contain a Fuel Adjustment Clause (FAC) tariff under which 95% of the difference between actual fuel cost, purchased power costs, certain transmission costs and off-system sales margin and the amount provided in base rates for these costs is passed along to KCP&L's customers. The FAC cycle consists of an accumulation period of six months beginning in January and July with FAC rate approval requested every six months for a twelve month recovery period. The FAC is recorded either as a reduction of fuel and purchased power expense (for under-recoveries) or a reduction of retail revenues (for over-recoveries) and deferred as a regulatory asset or liability to be recovered from or refunded to KCP&L's electric retail customers. The FAC became effective in conjunction with new retail rates on September 29, 2015.
GMO's electric retail rates contain a FAC tariff under which 95% of the difference between actual fuel cost, purchased power costs, certain transmission costs and off-system sales margin and the amount provided in base rates for these costs is passed along to GMO's customers. The FAC cycle consists of an accumulation period of six months beginning in June and December with FAC rate approval requested every six months for a twelve month recovery period. The FAC is recorded either as a reduction of fuel and purchased power expense (for under-recoveries) or a reduction of retail revenues (for over-recoveries) and deferred as a regulatory asset or liability to be recovered from or refunded to GMO's electric retail customers.
GMO's steam rates contain a Quarterly Cost Adjustment (QCA) under which 85% of the difference between actual fuel costs and base fuel costs is passed along to GMO's steam customers. The QCA is recorded either as a reduction of fuel and purchased power expense (for under-recoveries) or a reduction of retail revenues (for over-recoveries) and deferred as a regulatory asset or liability to be recovered from or refunded to GMO's steam customers.

corporate income taxes.
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Operating and Maintenance
Both KCP&L and GMO offer energy efficiency and demand side management programs to their Missouri retail customers under MEEIA and recover program costs, throughput disincentive and as applicable, certain performance incentives in retail rates. KCP&L and GMO recover these items through a rider mechanism. For program costs, the difference between the amount collected and actual program costs is recorded either as a reduction to utilityEvergy's operating and maintenance expense (for under-recoveries) or a reduction to retail revenues (for over-recoveries) and is deferred as a regulatory asset or liability to be recovered from or refunded to customers. For throughput disincentive, the difference between the amount collected and the actual throughput disincentive is recorded as an increase to or reduction of retail revenues and is deferred as a regulatory asset or liability to be recovered from or refunded to customers. The performance incentive is recorded as an increase to retail revenues and a receivable to be recovered from customers.
Electric Utility's gross margin decreased $7.2$55.5 million in 20172021, compared to 20162020, primarily driven by:
an estimated $53 million decrease due to cooler weather driven by •a 16% decrease in cooling degree days (CDD);
a $15.4$63.5 million decrease in MEEIA performance incentive related to the achievement of certain energy savings levels in the first cycle of KCP&L's and GMO's MEEIA programs, which was primarily recognized in 2016;
an estimated $33 million increase due to weather-normalized retail demand;
a $5.7 million increase for recovery of program costs for energy efficiency programs under MEEIA, which have a direct offset in utility operating and maintenance expense;
$6.3 million of favorable arbitration and insurance settlements in 2017 that did not pass through KCP&L's fuel recovery mechanism in Missouri; and
an estimated $16 million increase in other margin items.
Electric Utility's gross margin increased $196.7 million in 2016 compared to 2015 primarily driven by:
an estimated $111 million increase due to new retail rates and an estimated $37 million increase due to new cost recovery mechanisms for KCP&L in Missouri effective September 29, 2015, and in Kansas effective October 1, 2015;
an estimated $38 million increase due to warmer weather with a 16% increase in CDD in 2016;
a $6.4 million increase for recovery of program costs for energy efficiency programs under MEEIA, which have a direct offset in utility operating and maintenance expense;
a $6.5 million increase in MEEIA throughput disincentive;
a $15.6 million MEEIA performance incentive recognized in 2016 related to the achievement of certain energy savings levels in the first cycle of KCP&L's and GMO's MEEIA programs; and
an estimated $9 million decreasevoluntary severance expenses due to a $55.9 million decrease at Evergy Kansas Central, Evergy Metro and Evergy Missouri West related to Evergy voluntary exit programs in 2020 and a $7.6 million decrease in weather-normalized retail demand.voluntary severance expenses incurred at Evergy Kansas Central and Evergy Metro related to Wolf Creek voluntary exit programs in 2020;
The following table provides CDD•a $20.7 million decrease in advisor expenses incurred in 2021 associated with strategic planning; and heating degree days (HDD) for the last three years at the Kansas City International Airport. CDD
•an $8.8 million decrease in various transmission and HDD are used to reflect the demand for energy to cool or heat homes and buildings.
   %   %  
 2017 Change 2016 Change 2015
          
CDD1,325 (16) 1,585 16 1,370
          
HDD4,381 2 4,296 (6) 4,578
          

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Electric Utility Other Operating Expenses (including utilitydistribution operating and maintenance expenses general taxes and other)
Electric Utility's other operating expenses decreased $8.2 million in 2017 compared to 2016 primarily driven by:
a $6.2 million decrease in plant operating and maintenance expense;
a $10.5 million decrease in injuries and damages expense primarily due to settled litigation in 2017 in which actual losses were less than estimated;lower labor and
a $5.7 million increase in program contractor costs for energy efficiency programs under MEEIA, which have a direct offset in revenue.
Electric Utility's other operating expenses increased $50.0 million in 2016 compared to 2015 primarily driven by:by a higher mix of transmission capital projects in 2021; partially offset by
•$10.5 million of costs associated with executive transition in 2021, including inducement bonuses, severance agreements and other transition expenses;
•$7.9 million of costs at Evergy Kansas Central related to non-regulated energy marketing margins recognized during the February 2021 winter weather event;
•a $4.8 million increase in pension expense corresponding to the resetting of pension expense trackers with the effective date of new retail rates;
a $6.4 million increase in program costs for energy efficiency programs under MEEIA, which have a direct offset in revenue;
a $4.9$6.7 million increase in plant operating and maintenance expense;
a $7.9 million increase in injuries and damages expense primarily due to an increase in estimated losses from an unfavorable judgment in ongoing litigation; and
a $13.7 million increase in general taxes driven by higher property taxes and higher gross receipts taxes due to an increase in retail revenues.
Electric Utility Depreciation and Amortization
Electric Utility's depreciation and amortization expense increased $26.3 million and $14.4 million in 2017 compared to 2016 and 2016 compared to 2015, respectively, primarily due to capital additions.
Electric Utility Interest Charges
Electric Utility's interest charges increased $5.2 million in2016compared to 2015at fossil-fuel generating units primarily due to a $7.9$6.3 million increase at Evergy Kansas Central primarily driven by a major maintenance outage at JEC in 2021 and higher material and supplies costs; and
•a $2.7 million increase in property insurance expense due to a lower annual refund of nuclear insurance premiums received by Evergy Kansas Central and Evergy Metro in 2021 related to their ownership interests in Wolf Creek.
Depreciation and Amortization
Evergy's depreciation and amortization increased $16.3 million in 2021, compared to 2020, primarily driven by higher capital additions at Evergy Kansas Central in 2021.
Taxes Other Than Income Tax
Evergy's taxes other than income tax increased $16.3 million in 2021, compared to 2020, driven by an increase in property taxes in Missouri and Kansas primarily due to higher assessed property tax values.
Other Income (Expense), Net
Evergy's other expense, net in 2020 became other income, net, in 2021 as a result of a $54.9 million increase in net other income items, primarily driven by:
•$49.1 million of higher investment earnings primarily driven by a $27.7 million unrealized gain in the fourth quarter of 2021 due to the change in fair value related to Evergy's investment in an early-stage energy solutions company and $14.0 million in realized gains from the sale of various equity investments in 2021;
•$12.2 million of higher Evergy Kansas Central and Evergy Metro equity AFUDC primarily driven by higher construction work in progress balances at Evergy Kansas Central and Evergy Metro and lower short-term debt balances at Evergy Metro in 2021; and
•$6.1 million of other income recorded in 2021 related to contract termination fees; partially offset by
•$4.8 million of lower Evergy Kansas Central corporate-owned life insurance (COLI) benefits in 2021.
Interest Expense
Evergy's interest expense relateddecreased $11.3 million in 2021, compared to KCP&L's issuance2020, primarily driven by:
•a $12.7 million decrease due to the redemption of $350Evergy's $350.0 million of 3.65%4.85% Senior Notes in August 2015; partially offset by April 2021;
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•a $2.2$10.2 million decrease in interest expense on short-term borrowings primarily due to KCP&L's purchaselower weighted-average interest rates for the Evergy Companies in lieu of2021; and
•a $2.2 million net decrease due to the redemption of its $50.0Evergy Kansas Central's $250.0 million of 5.10% first mortgage bonds (FMBs) in May 2020, which decreased interest expense by $6.8 million, partially offset by a $4.6 million increase due to the issuance of Evergy Kansas Central's $500.0 million of 3.45% FMBs in April 2020; partially offset by
•a $10.3 million increase due to the issuance in a private placement of Evergy Missouri West's $500.0 million of Series A, B and $21.9C Senior Notes in April 2021; and
•a $3.6 million EIRR Series 2005 bondsincrease due to the issuance of Evergy Metro's $400.0 million of 2.25% Mortgage Bonds in September 2015.May 2020.
Electric Utility Income Tax Expense
Electric Utility'sEvergy's income tax expense increased $5.1$15.2 million in 20172021, compared to 20162020, primarily driven by:
•a $72.5 million increase due to anhigher Evergy Kansas Central and Evergy Metro pre-tax income in 2021;
•a $6.6 million increase due to lower wind and other income tax credits in 2021, primarily driven by the expiration of $11.1production tax credits at Evergy Metro's Spearville 2 wind facility in the fourth quarter of 2020 and lower research and development tax credits in 2021;
•a $5.5 million increase due to lower expected COLI proceeds for 2021; and
•a $4.0 million increase due to higher non-deductible officer compensation in 2021; partially offset by
•a $43.9 million decrease as a result of the state of Kansas exempting certain public utilities, including Evergy Kansas Central and Evergy Metro, from Kansas corporate income tax beginning in January 2021;
•a $15.6 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes at Evergy Kansas Central; and
•a $13.8 million decrease related to the revaluation of KCP&L's and GMO's deferred income taxes not includedtax assets and liabilities in rate base as a result of2020 due to the enactment of U.S. federalchange in Kansas corporate income tax reformrate.
See Note 19 to the consolidated financial statements for more information regarding the change in December 2017 and an increase of $4.5 million due to decreased wind production tax credits in 2017; partially offset by a decrease of $11.8 million due to decreased pre-tax income.
Electric Utility'sthe Kansas corporate income tax expense increased $43.5 million in 2016 compared to 2015 due to increased pre-tax income.rate.
GREAT PLAINS ENERGYEVERGY SIGNIFICANT BALANCE SHEET CHANGES
(December 31, 20172021 compared to December 31, 2016)2020)
Great Plains Energy's•Evergy's cash and cash equivalents decreased $167.7$118.7 million primarily due to the redemptionuse of Great Plains Energy's $4.3 billion senior notesfunds for $4,400.1capital expenditures at Evergy Kansas Central, Evergy Metro and Evergy Missouri West, the repayment of certain short-term borrowings and other general corporate purposes.
•Evergy's receivables, net decreased $52.3 million primarily driven by a $21.5 million decrease in July 2017, the redemption of Great Plains Energy's Series B Preferred Stockretail electric accounts receivable driven by lower sales in August 2017 for $963.4 million and the maturity of Great Plains Energy's $100.0 million of 6.875% Senior Notes in September 2017; partially offset by the issuance of Great Plains Energy's $4.3 billion senior notes and the maturity of a $1.0 billion time deposit in March 2017.
Great Plains Energy's time deposit decreased $1.0 billionDecember 2021 due to its maturityunfavorable weather and a $13.6 million increase in March 2017.the allowance for credit losses primarily driven by higher credit loss expense recognized in 2021 largely due to the economic impact of the COVID-19 pandemic and a lower level of actual write-offs incurred primarily due to timing as a result of customer support measures taken by Evergy during 2021 including disconnection moratoriums and payment plans.

•Evergy's accounts receivable pledged as collateral decreased $41.0 million primarily driven by Evergy's decrease in retail electric accounts receivable balances in December 2021, resulting in a lower level of retail electric receivables available for sale through Evergy's receivable sales facilities.
•Evergy's fuel and supplies inventory increased $62.2 million primarily driven by a $46.3 million increase in materials and supply inventory primarily due to an increase in transmission and distribution capital projects related to grid resiliency and other infrastructure improvement in addition to maintaining higher overall levels of inventory to mitigate longer supply chain lead times.
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•Evergy's income taxes receivable decreased by $34.9 million primarily due to Evergy's receipt of a $46.0 million federal alternative minimum tax (AMT) tax credit refund in the fourth quarter of 2021.
Great Plains Energy's plant•Evergy's regulatory assets - current increased $217.9 million primarily driven by a $161.1 million increase at Evergy Kansas Central due to a $119.6 million increase related to Evergy Kansas Central's fuel recovery mechanism as a result of net under-collections and a $45.6 million increase related to deferred fuel and purchased power costs expected to be retired, netrecovered in the next 12 months related to the February 2021 winter weather event; and a $54.6 million increase at Evergy Missouri West related to its fuel recovery mechanism as a result of net-under-collections.
•Evergy's other assets - current increased $143.6$51.7 million primarily due to a $31.4 million investment in connection with the expected retirement of GMO's Sibley No. 3 Unit.an early-stage energy solutions company. See "Evergy Equity Investment" in Note 1 to the consolidated financial statements for additional information.
Great Plains Energy's regulatory assets•Evergy's nuclear decommissioning trust funds increased $116.6 million primarily driven by realized and unrealized gains on investments at Evergy Kansas Central's and Evergy Metro's nuclear decommissioning trusts.
•Evergy's collateralized note payable decreased $134.1$41.0 million primarily driven by Evergy's decrease in retail electric accounts receivable balances in December 2021, resulting in a lower level of retail electric receivables available for sale through Evergy's receivable sales facilities.
•Evergy's notes payable and commercial paper increased $844.3 million due to a $158.0 million increase at Evergy, Inc., a $356.0 million increase at Evergy Kansas Central and a $330.3 million increase at Evergy Missouri West primarily due to borrowings for capital expenditures, costs related to the February 2021 winter weather event and for general corporate purposes.
•Evergy's regulatory liabilities - current increased $796.4$44.6 million primarily due to an $868.3$34.0 million of deferred wholesale revenues at Evergy Metro expected to be refunded to customers in the next 12 months related to the February 2021 winter weather event.
•Evergy's pension and post-retirement liability decreased $270.3 million primarily due to a decrease in net deferred income tax liabilities due to the revaluation and restatementbenefit obligations driven by $284.0 million of deferred income tax assets and liabilities includedpension settlements in rate base and a tax gross-up adjustment for ratemaking purposes in December 20172021 as a result of the change in corporate income tax rate from U.S. federal income tax reform. See Note 6 and Note 21 to the consolidated financial statements for additional information.
Great Plains Energy's deferred income taxes decreased $708.0 million primarily due to the revaluation and restatement of deferred income tax assets and liabilities and a tax gross-up adjustment for ratemaking purposes in December 2017accelerated pension distributions as a result of the change in corporate income tax rateemployee retirements and annuity purchases for certain plan participants.
LIQUIDITY AND CAPITAL RESOURCES
Evergy relies primarily upon cash from U.S. federal income tax reform.
Great Plains Energy's preference stock without par value decreased $836.2 million due to the redemption of Great Plains Energy's Series B Preferred Stock in August 2017.
CAPITAL REQUIREMENTS AND LIQUIDITY
Great Plains Energy operates through its subsidiariesoperations, short-term borrowings, debt and has no material assets other than the stock of its subsidiaries and cash and cash equivalents.  Great Plains Energy's ability to make payments on its debt securitiesequity issuances and its ability to pay dividends is dependent on its receipt of dividends or other distributions from its subsidiaries, proceeds from the issuance of its securities and borrowing under its revolving credit facility.
Great Plains Energy's capital requirements are principally comprised of debt maturities and Electric Utility's construction and other capital expenditures.  These items as well as additional cash and capital requirements, including requirements related to the anticipated merger with Westar, are discussed below.
Great Plains Energy's liquid resources at December 31, 2017, consisted of $1.1 billion ofexisting cash and cash equivalents to fund its capital requirements. Evergy's capital requirements primarily consist of capital expenditures, payment of contractual obligations and other commitments and the payment of dividends to shareholders.
Capital Sources
Cash Flows from Operations
Evergy's cash flows from operations are driven by the regulated sale of electricity. These cash flows are relatively stable but the timing and level of these cash flows can vary based on handweather and $856.4economic conditions, future regulatory proceedings, the timing of cash payments made for costs recoverable under regulatory mechanisms and the time such costs are recovered, and unanticipated expenses such as unplanned plant outages and storms. Evergy's cash flows from operations were $1,351.7 million, $1,753.8 million and $1,749.0 million in 2021, 2020 and 2019, respectively.
Short-Term Borrowings
As of December 31, 2021, Evergy had $1.3 billion of available borrowing capacity from unused bank lines ofunder its master credit and receivable sale agreements.facility. The available borrowing capacity under the master credit facility consisted of $188.0$341.3 million from Great Plains Energy's revolvingfor Evergy, Inc., $343.9 million for Evergy Kansas Central, $350.0 million for Evergy Metro and $304.7 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility $429.8 million from KCP&L's credit facilities and $238.6 million from GMO's credit facilities.also supports their issuance of
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commercial paper. See Notes 4 andNote 11 to the consolidated financial statements for more information regarding the master credit facility.
Along with cash flows from operations and receivable sale agreementssales facilities, Evergy generally uses borrowings under its master credit facility and revolving credit facilities, respectively. Generally, Great Plains Energy uses these liquid resourcesthe issuance of commercial paper to meet its day-to-day cash flow requirements,requirements. Evergy believes that its existing cash on hand and fromavailable borrowing capacity under its master credit facility provide sufficient liquidity for its existing capital requirements.
Long-Term Debt and Equity Issuances
From time to time, Evergy issues equity and/or long-term debt and equity to repay short-term debt, or increase cash balances.refinance maturing long-term debt and finance growth. As of December 31, 2021 and 2020, Evergy’s capital structure, excluding short-term debt, was as follows:
December 31
20212020
Common equity49%47%
Long-term debt, including VIEs51%53%
Under stipulations with the MPSC and KCC, Evergy, Evergy Kansas Central and Evergy Metro are required to maintain common equity at not less than 35%, 40% and 40%, respectively, of total capitalization. The master credit facility and certain debt instruments of the Evergy Companies also contain restrictions that require the maintenance of certain capitalization and leverage ratios. As of December 31, 2021, the Evergy Companies were in compliance with these covenants.
Significant Debt Issuances
See Note 12 to the consolidated financial statements for information regarding significant debt issuances.
Equity Issuance
See Note 17 to the consolidated financial statements for information regarding Evergy's securities purchase agreement with Bluescape to purchase Evergy's common stock in 2021.
Credit Ratings
The $1.1ratings of the Evergy Companies' debt securities by the credit rating agencies impact the Evergy Companies' liquidity, including the cost of borrowings under their master credit facility and in the capital markets. The Evergy Companies view maintenance of strong credit ratings as vital to their access to and cost of debt financing and, to that end, maintain an active and ongoing dialogue with the agencies with respect to results of operations, financial position and future prospects. While a decrease in these credit ratings would not cause any acceleration of the Evergy Companies' debt, it could increase interest charges under the master credit facility. A decrease in credit ratings could also have, among other things, an adverse impact, which could be material, on the Evergy Companies' access to capital, the cost of funds, the ability to recover actual interest costs in state regulatory proceedings, the type and amounts of collateral required under supply agreements and Evergy's ability to provide credit support for its subsidiaries.
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As of February 24, 2022, the major credit rating agencies rated the Evergy Companies' securities as detailed in the following table.
Moody'sS&P Global
Investors Service(a)
Ratings(a)
Evergy
OutlookStableNegative
Corporate Credit Rating--A-
Senior Unsecured DebtBaa2BBB+
Short-Term RatingP-2A-2
Evergy Kansas Central
OutlookStableNegative
Corporate Credit RatingBaa1A-
Senior Secured DebtA2A
Commercial PaperP-2A-2
Evergy Kansas South
OutlookStableNegative
Corporate Credit RatingBaa1A-
Senior Secured DebtA2A
Short-Term RatingP-2A-2
Evergy Metro
OutlookStableNegative
Corporate Credit RatingBaa1A
Senior Secured DebtA2A+
Senior Unsecured Debt--A
Commercial PaperP-2A-1
Evergy Missouri West
OutlookStableNegative
Corporate Credit RatingBaa2A-
Senior Unsecured DebtBaa2A-
Commercial PaperP-2--
(a)A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency.
Shelf Registration Statements and Regulatory Authorizations
Evergy
In September 2021, Evergy filed an automatic shelf registration statement providing for the sale of unlimited amounts of securities with the SEC, which expires in September 2024.

Evergy Kansas Central
In September 2021, Evergy Kansas Central filed an automatic shelf registration statement providing for the sale of unlimited amounts of unsecured debt securities and FMBs with the SEC, which expires in September 2024.
Evergy Metro
In September 2021, Evergy Metro filed an automatic shelf registration statement providing for the sale of unlimited amounts of unsecured notes and mortgage bonds with the SEC, which expires in September 2024.
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The following table summarizes the regulatory short-term and long-term debt financing authorizations for Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West and the remaining amount available under these authorizations as of December 31, 2021.
Type of AuthorizationCommissionExpiration DateAuthorization AmountAvailable Under Authorization
Evergy Kansas Central &
Evergy Kansas South		(in millions)
Short-Term DebtFERCDecember 2022$1,250.0 $844.0 
Evergy Metro
Short-Term DebtFERCDecember 2022$1,250.0 $1,250.0 
Evergy Missouri West
Short-Term DebtFERCDecember 2022$750.0 $199.7 
Long-Term DebtFERCFebruary 2023$1,000.0 $500.0 
In addition to the above regulatory authorizations, the Evergy Kansas Central, Evergy Kansas South and Evergy Metro mortgages each contain provisions restricting the amount of FMBs or mortgage bonds, as applicable, that can be issued by each entity. Evergy Kansas Central, Evergy Kansas South and Evergy Metro must comply with these restrictions prior to the issuance of additional FMBs, mortgage bonds or other secured indebtedness.
Under the Evergy Kansas Central mortgage, the issuance of FMBs is subject to limitations based on the amount of bondable property additions. In addition, so long as any bonds issued prior to January 1, 1997, remain outstanding, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Evergy Kansas Central’s unconsolidated net earnings available for interest, depreciation and property retirement (which, as defined, does not include earnings or losses attributable to the ownership of securities of subsidiaries), for a period of 12 consecutive months within 15 months preceding the issuance, are not less than the greater of twice the annual interest charges on or 10% of the principal amount of all FMBs outstanding after giving effect to the proposed issuance. As of December 31, 2021, $998.9 million principal amount of additional FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.
Under the Evergy Kansas South mortgage, the amount of FMBs authorized is limited to a maximum of $3.5 billion and the issuance of FMBs is subject to limitations based on the amount of bondable property additions. In addition, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Evergy Kansas South's net earnings before income taxes and before provision for retirement and depreciation of property for a period of 12 consecutive months within 15 months preceding the issuance are not less than either two and one-half times the annual interest charges on or 10% of the principal amount of all Evergy Kansas South FMBs outstanding after giving effect to the proposed issuance. As of December 31, 2021, approximately $2,828.6 million principal amount of additional Evergy Kansas South FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.

Under the General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented (Evergy Metro Mortgage Indenture), additional Evergy Metro mortgage bonds may be issued on the basis of 75% of property additions or retired bonds. As of December 31, 2021, approximately $5,075.8 million principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage.

Cash and Cash Equivalents
At December 31, 2021, Evergy had approximately $26.2 million of cash and cash equivalents on hand at December 31, 2017, is primarily the resulthand.
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Capital Requirements
Capital Expenditures
Evergy requires significant capital investments and expects to need cash for its long-term strategy of which weretransitioning its generation fleet to be usedmore sustainable by reducing CO2 emissions as well as executing other utility construction programs designed to fund a portion of the cash considerationimprove reliability and expand facilities related to providing electric service, which include, but are not limited to, expenditures to develop new transmission lines and improvements to power plants, transmission and distribution lines and equipment. See "Executive Summary - Strategy", above for further information regarding Evergy's strategy. Evergy's capital expenditures were $1,972.5 million, $1,560.3 million and $1,210.1 million in 2021, 2020 and 2019, respectively.
Capital expenditures projected for the acquisitionnext five years, excluding AFUDC and including costs of Westar underremoval, are detailed in the Original Merger Agreement.following table. This capital expenditure plan is subject to continual review and change. See Part I, Item 1A, Risk Factors for information regarding potential risks to Evergy's capital expenditure plan.
20222023202420252026
(millions)
Generating facilities - new renewable generation$— $258.0 $450.0 $750.0 $500.0 
Generating facilities - other331.0 337.0 223.0 250.0 216.0 
Transmission facilities626.0 600.0 591.0 592.0 679.0 
Distribution facilities655.0 652.0 549.0 595.0 632.0 
General facilities364.0 270.0 194.0 182.0 173.0 
Total capital expenditures$1,976.0 $2,117.0 $2,007.0 $2,369.0 $2,200.0 
Significant Contractual Obligations and Other Commitments
In the course of its business activities, the Evergy Companies enter into a variety of contracts and commercial commitments. Some of these result in direct obligations reflected on Evergy's consolidated balance sheets while others are commitments, some firm and some based on uncertainties, not reflected in Evergy's underlying consolidated financial statements.
The information in the following table is provided to summarize Evergy's significant cash obligations and commercial commitments.
Payment due by period20222023202420252026After 2026Total
Long-term debt(millions)
Principal$387.5 $439.5 $800.0 $636.0 $350.0 $7,056.8 $9,669.8 
Interest340.3 323.1 311.4 291.6 271.0 3,741.2 5,278.6 
Pension and other post-retirement plans (a)
95.1 95.1 95.1 95.1 95.1 (a)475.5 
Purchase commitments
Fuel403.1 183.5 130.2 100.4 106.7 221.1 1,145.0 
Power63.0 63.6 58.0 58.4 58.4 294.2 595.6 
(a)    Evergy expects to make contributions to the pension and other post-retirement plans beyond 2026 but the amounts are not yet determined.
Long-term debt includes current maturities. Long-term debt principal excludes $80.5 million of unamortized net discounts and debt issuance costs and a $97.9 million fair value adjustment recorded in connection with purchase accounting for the Great Plains Energy alsoand Evergy Kansas Central merger that was completed in 2018. Variable rate interest obligations are based on rates as of December 31, 2021.
Evergy expects to receive $140.6contribute $95.1 million to the pension and other post-retirement plans in proceeds from its deal contingent interest rate swaps upon2022, of which the closingmajority is expected to be paid by Evergy Kansas Central and Evergy Metro. Additional contributions to the plans are expected beyond 2026 in amounts at least sufficient to meet the greater of the anticipated merger with Westar. Under the Amended Merger Agreement, Great Plains Energy is required toEmployee Retirement Income Security Act of 1974, as amended (ERISA) or regulatory funding requirements; however, these amounts have not less than $1.25 billionyet been determined. Amounts for years after 2022 are estimates based on information available in cash and cash equivalents on its balance sheet atdetermining the closing of the anticipated merger with Westar. It is expected that this excess cash will be returned to shareholders of the combined company through the repurchase of common stock over time after the closing of the anticipated merger.
Great Plains Energy intends to meet day-to-day cash flow requirements including interest payments, retirement of maturing debt, construction requirements, dividends and pension benefit plan funding requirements with a combination of internally generated funds and proceeds from short-term debt. From time to time, Great Plains Energy issues equity and/or long-term debt to repay short-term debt or increase cash balances. Great Plains Energy's intention to meet a portion of these requirements with internally generated funds may be impacted by the effect of inflation on operating expenses, the level of MWh sales, regulatory actions, compliance with

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amount for 2022. Actual amounts for years after 2022 could be significantly different than the estimated amounts in the table above.
environmental regulationsFuel commitments consist of commitments for nuclear fuel, coal and coal transportation costs. Power commitments consist of certain commitments for renewable energy under power purchase agreements, capacity purchases and firm transmission service.
At December 31, 2021, Evergy has other insignificant commitments as well as other insignificant long-term liabilities recorded on its consolidated balance sheet, which are not included in the availabilitytable above.
Common Stock Dividends
The amount and timing of generating units.  In addition, Great Plains Energy may issue equity, equity-linked securities and/ordividends payable on Evergy's common stock are within the sole discretion of the Evergy Board. The amount and timing of dividends declared by the Evergy Board will be dependent on considerations such as Evergy's earnings, financial position, cash flows, capitalization ratios, regulation, reinvestment opportunities and debt covenants. Evergy targets a long-term dividend payout ratio of 60% to finance growth. 70% of earnings. See Note 1 to the consolidated financial statements for information on the common stock dividend declared by the Evergy Board in February 2022.
The Evergy Companies also have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels. See Note 17 to the consolidated financial statements for further discussion of restrictions on dividend payments.
Cash Flows
The following table presents Evergy's cash flows from operating, investing and financing activities.
20212020
(millions)
Cash flows from operating activities$1,351.7 $1,753.8 
Cash flows used in investing activities(1,913.8)(1,533.7)
Cash flows from (used in) financing activities443.4 (98.4)
Cash Flows from Operating Activities
Great Plains Energy generated positiveEvergy's cash flows from operating activities decreased $402.1 million in 2021, compared to 2020, primarily driven by:
•$365.5 million of cash payments for net fuel and purchased power costs during the periods presented. The $26.5February 2021 winter weather event;
•a $182.3 million increase in cash flows from operating activities for Great Plains Energypayments in 2017 compared2021 primarily due to 2016 was primarily driven by a $35.5 million decrease in the under recovery of costs subject to fuel recovery mechanisms partially offset by an increase in Great Plains Energy's pension funding contributions of $7.1 million. Other changes in working capital are detailed in Note 3 to the consolidated financial statements. The individual components of working capital vary with normal business cycles and operations.
The $30.9 million increase in cash flows from operating activities for Great Plains Energy in 2016 compared to 2015 was primarily driven by new retail rates for KCP&L and warmer weather.
Cash Flows from Investing Activities
Great Plains Energy's cash used for investing activities varies with the timing of utility capital expenditurespayments made to taxing authorities for property tax payments as well as various suppliers and purchases of investmentsservice providers for goods and nonutility property.  
In 2017, Great Plains Energy received $1.0 billion for proceeds from the maturity of a time deposit.
In 2016, Great Plains Energyservices purchased a $1.0 billion time deposit with a portion of the proceeds from its October 2016 common stock and depositary share offerings.
Great Plains Energy's utility capital expenditures decreased $67.7 million in 2016 compared to 2015 primarily due to a decrease in cash utility capital expenditures related to infrastructure and system improvements.
Cash Flows from Financing Activities
Great Plains Energy's cash flows from financing activities in 2017 reflects gross proceeds of $4.6 billion from the issuance of Great Plains Energy's $4.3 billion senior notes in March 2017 and KCP&L's issuance of $300.0 million of 4.20% unsecured Senior Notes in June 2017; $38.3 million in issuance fees related to the issuance of senior notes; $4.7 billion of long-term debt repayments from the maturity of KCP&L's $250.0 million of 5.85% unsecured Senior Notes in June 2017, the redemption of Great Plains Energy's $4.3 billion senior notes and a $43.0 million redemption premium in July 2017, the maturity of KCP&L's $31.0 million secured Series 1992 EIRR in July 2017 and the maturity of Great Plains Energy's $100.0 million of 6.875% unsecured Senior Notes in September 2017; a $78.0 million increase in dividends paid in 2017 compared to 2016 primarily due to Great Plains Energy's October 2016 common stock and depositary share offerings; and the $963.4 million redemption of Series B Preferred Stock in August 2017.
Great Plains Energy's cash flows from financing activities in 2016 reflect gross proceeds of $1.6 billion from the issuance of 60.5 million shares of common stock at a public offering price of $26.45 per share and gross proceeds of $862.5 million from the issuance of 17.3 million depositary shares each representing a 1/20th interest in a share of Great Plains Energy's Series B Preferred Stock at $50 per depositary share. Great Plains Energy paid $40.1 million for the redemption of its 390,000 shares of cumulative preferred stock and $143.6 million in issuance fees related to common stock and depositary share issuances, establishing Great Plains Energy's bridge term loan facility and a payment to OMERS pursuant to a stock purchase agreement.
Impact of Credit Ratings on Liquidity
The ratings of Great Plains Energy's, KCP&L's and GMO's securities by the credit rating agencies impact their liquidity, including the cost of borrowings under their revolving credit agreements and in the capital markets. The Companies view maintenance of strong credit ratings as extremely important to their access to and cost of debt financing and to that end maintain an active and ongoing dialogue with the agencies with respect to results of operations, financial position and future prospects. While a decrease in these credit ratings would not cause any acceleration of Great Plains Energy's, KCP&L's or GMO's debt, it could increase interest charges under Great Plains Energy's, KCP&L's and GMO's revolving credit agreements. A decrease in credit ratings could also have,

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among other things, an adverse impact, which could be material, on Great Plains Energy's, KCP&L's and GMO's access to capital, the cost of funds, the ability to recover actual interest costs in state regulatory proceedings, the type and amounts of collateral required under supply agreements and Great Plains Energy's ability to provide credit support for its subsidiaries.
As of February 21, 2018, the major credit rating agencies rated Great Plains Energy's, KCP&L's and GMO's securities as detailed in the following table.
Moody'sS&P Global
Investors ServiceRatings
Great Plains Energy
OutlookStablePositive
Corporate Credit Rating-BBB+
Senior Unsecured DebtBaa2BBB
KCP&L
OutlookStablePositive
Senior Secured DebtA2A
Senior Unsecured DebtBaa1BBB+
Commercial PaperP-2A-2
GMO
OutlookStablePositive
Senior Unsecured DebtBaa2BBB+
Commercial PaperP-2A-2
A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency.
Financing Authorization
Under stipulations with the MPSC and KCC, Great Plains Energy and KCP&L maintain common equity at not less than 30% and 35%, respectively, of total capitalization (including only the amount of short-term debt in excess of the amount of construction work in progress).  
KCP&L's long-term financing activities are subject to the authorization of the MPSC.  In May 2017, the MPSC authorized KCP&L to issue up to $350.0 million of long-term debt through December 31, 2017. At December 31, 2017, KCP&L had utilized $300.0 million of this authorization. In February 2018, the MPSC authorized KCP&L to issue up to $750.0 million of long-term debt through September 30, 2019, to replace the authorization which expired on December 31, 2017.
KCP&L's and GMO's short-term financing activities are subject to the authorization of FERC. In November 2016, FERC authorized KCP&L to have outstanding at any one time up to a total of $1.0 billion in short-term debt instruments through December 2018. At December 31, 2017, there was $832.5 million available under this authorization. In February 2016, FERC authorized GMO to have outstanding at any one time up to a total of $750.0 million in short-term debt instruments through March 2018. At December 31, 2017, there was $540.7 million available under this authorization. In December 2017, GMO filed a request with FERC to have outstanding at any one time up to $750.0 million in short-term debt instruments through March 2020.
KCP&L and GMO are also authorized by FERC to participate in the Great Plains Energy money pool, an internal financing arrangement in which funds may be lent on a short-term basis to KCP&L and GMO.  At December 31, 2017, there were no outstanding payables under the money pool.

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Significant Financing Activities
Great Plains Energy
Great Plains Energy has an effective shelf registration statement for the sale of unlimited amounts of securities with the SEC that became effective in March 2015 and expires in March 2018. Great Plains Energy does not expect to replace this shelf registration statement prior to the closing of the anticipated merger with Westar.

In March 2017, Great Plains Energy issued $4.3 billion of senior notes and as a result of the Amended Merger Agreement, redeemed the senior notes in July 2017. See Note 12 to the consolidated financial statements for more information on the redemption of the senior notes.
In August 2017, as a result of the Amended Merger Agreement, Great Plains Energy redeemed its Series B Preferred Stock. See Note 14 to the consolidated financial statements for more information on the redemption of the Series B Preferred Stock.
In September 2017, Great Plains Energy repaid its $100.0 million of 6.875% unsecured Senior Notes at maturity.
KCP&L
KCP&L has an effective shelf registration statement providing for the sale of unlimited amounts of notes and mortgage bonds with the SEC that was filed and became effective in March 2015 and expires in March 2018. Upon expiration of this registration statement, KCP&L intends to file a new shelf registration statement with the SEC providing for the sale of up to $1.1 billion in aggregate principal amount of notes and mortgage bonds.

In June 2017, KCP&L issued, at a discount, $300.0 million of 4.20% unsecured Senior Notes, maturing in 2047, with proceeds used to repay $250.0 million of 5.85% Senior Notes that matured in June 2017 and $31.0 million of secured Series 1992 EIRR bonds that matured in July 2017.
Debt Agreements
See Note 11 to the consolidated financial statements for information regarding revolving credit facilities.
Projected Utility Capital Expenditures
Great Plains Energy's cash utility capital expenditures, excluding Allowance for Funds Used During Construction (AFUDC) to finance construction, were $573.5 million, $609.4 million and $677.1 million in 2017, 2016 and 2015, respectively. Utility capital expenditures represent a significant portion of Great Plains Energy's capital requirements. Utility capital expenditures projected for the next five years include improvements to generating, distribution and transmission facilities, software upgrades and expenditures for environmental projects at coal-fired power plants. Great Plains Energy intends to meet these capital requirements with a combination of internally generated funds and proceeds from short-term and long-term debt.
Utility capital expenditures projected for the next five years, excluding AFUDC, are detailed in the following table. This utility capital expenditure plan is subject to continual review and change.
  2018 2019 2020 2021 2022 
 (millions)
Generating facilities $165.8
 $170.2
 $151.4
 $139.8
 $151.7
 
Distribution and transmission facilities 246.7
 256.6
 245.7
 284.7
 235.2
 
General facilities 100.2
 108.8
 93.4
 87.5
 71.0
 
Nuclear fuel 21.4
 24.7
 43.8
 25.4
 24.8
 
Environmental 14.6
 2.8
 7.7
 20.1
 63.1
 
Total utility capital expenditures $548.7
 $563.1
 $542.0
 $557.5
 $545.8
 
Pensions
The Company incurs significant costs in providing defined benefit plans for substantially all active and inactive employees of KCP&L and GMO and its 47% ownership share of WCNOC's defined benefit plans. Funding of the

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plans follows legal and regulatory requirements with funding equaling or exceeding the minimum requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA).
In 2017 and 2016, the Company contributed $76.9 million and $69.8 million to the pension plans, respectively, and expects to contribute $84.0 million in 2018 to satisfy ERISA funding requirements and the MPSC and KCC rate orders, the majority of which is expected to be paid by KCP&L. Additional contributions to the plans are expected beyond 2018 in amounts at least sufficient to meet the greater of ERISA or regulatory funding requirements; however, these amounts have not yet been determined.
Additionally, the Company provides post-retirement health and life insurance benefits for certain retired employees and expects to make benefit contributions of $4.6 million under the provisions of these plans in 2018, the majority of which is expected to be paid by KCP&L.
Management believes the Company has adequate access to capital resources through cash flows from operations or through existing lines of credit to support these funding requirements.
Supplemental Capital Requirements and Liquidity Information
The information in the following table is provided to summarize Great Plains Energy's cash obligations and commercial commitments.
Payment due by period2018 2019 2020 2021 2022After 2022Total
Long-term debt(millions)
Principal$351.1
 $401.1
 $1.1
 $432.0
 $287.5
 $2,209.6
 $3,682.4
Interest170.3
 144.9
 130.5
 121.9
 99.0
 1,180.7
 1,847.3
Lease commitments             
Operating leases12.1
 9.3
 9.7
 9.7
 9.5
 101.0
 151.3
Capital leases0.4
 0.4
 0.4
 0.4
 0.4
 2.7
 4.7
Pension and other post-retirement plans (a)
88.6
 88.6
 88.6
 88.6
 88.6
 (a)
 443.0
Purchase commitments             
Fuel210.4
 180.1
 67.3
 5.1
 37.4
 80.7
 581.0
Power47.3
 47.3
 47.3
 47.4
 47.6
 414.6
 651.5
Other20.9
 14.7
 6.7
 5.5
 2.4
 35.9
 86.1
Total contractual commitments (a)
$901.1
 $886.4
 $351.6
 $710.6
 $572.4
 $4,025.2
 $7,447.3
(a)
The Company expects to make contributions to the pension and other post-retirement plans beyond 2022 but the amounts are not yet determined. Amounts for years after 2018 are estimates based on information available in determining the amount for 2018. Actual amounts for years after 2018 could be significantly different than the estimated amounts in the table above.
Long-term debt includes current maturities. Long-term debt principal excludes $18.7 million of net discounts on senior notes and debt issuance costs. Variable rate interest obligations are based on rates as of December 31, 2017.
Lease commitments end in 2048. Operating lease commitments include railcars to serve jointly-owned generating units where KCP&L is the managing partner. Of the amounts included in the table above, KCP&L will be reimbursed by the other owners for approximately $1.2 million in 2018 and approximately $0.4 million per year from 2019 to 2025, for a total of $4.0 million.
The Company expects to contribute $88.6 million to the pension and other post-retirement plans in 2018, of which the majority is expected to be paid by KCP&L. Additional contributions to the plans are expected beyond 2022 in amounts at least sufficient to meet the greater of ERISA or regulatory funding requirements; however, these amounts have not yet been determined. Amounts for years after 2018 are estimates based on information available in determining the amount for 2018. Actual amounts for years after 2018 could be significantly different than the estimated amounts in the table above.

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Fuel commitments consist of commitments for nuclear fuel, coal and coal transportation costs. Power commitments consist of commitments for renewable energy under power purchase agreements. Other represents individual commitments entered into in the ordinary course of business.business; and

•$35.4 million in payments made for a Wolf Creek refueling outage in 2021; partially offset by
Great Plains Energy has other insignificant long-term liabilities recorded on its consolidated balance sheet at December 31, 2017, which do not have •a definitive$194.9 million increase in cash payout datereceipts for retail electric sales in 2021 primarily driven by favorable weather and are not includedan increase in the table above.weather-normalized commercial and industrial demand; and
Off-Balance Sheet Arrangements
In the ordinary course of business, Great Plains Energy and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiary's intended business purposes. The majority of these agreements guarantee the Company's own future performance, so a liability for the fair value of the obligation is not recorded.
At December 31, 2017, Great Plains Energy has provided $133.5•$89.9 million of credit support for GMO as follows:cash receipts related to non-regulated energy marketing margins earned during the February 2021 winter weather event.
Cash Flows used in Investing Activities
Evergy's cash flows used in investing activities increased $380.1 million in 2021, compared to 2020, primarily driven by:
•a $412.2 million increase in additions to property, plant and equipment due to increases at Evergy Kansas Central, Evergy Metro and Evergy Missouri West of $116.7 million, $117.5 million and $176.6 million,
Great Plains Energy direct guarantees to GMO counterparties totaling $38.0 million, which expire in 2018 and
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Great Plains Energy guarantees of GMO long-term debt totaling $95.5 million, which includes debt with maturity dates ranging from 2018 to 2023.
Great Plains Energy has also guaranteed GMO's commercial paper program. At December 31, 2017, GMO had $209.3 million commercial paper outstanding. None of the guaranteed obligations are subject to default or prepayment if GMO's credit ratings were downgraded.
At December 31, 2017, KCP&L had issued letters of credit totaling $5.2 million as credit support to certain counterparties that expire in 2018. KCP&L has also issued $148.1 million of letters of credit as credit support for its variable rate EIRR Bond Series 2007A and B that expire in 2018.
At December 31, 2017, GMO had issued letters of credit totaling $2.1 million as credit support to certain counterparties that expire in 2018.

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respectively, primarily due to increased spending for a variety of capital projects including transmission and distribution projects related to grid resiliency and other infrastructure improvements; partially offset by
•an increase of $11.1 million in proceeds from COLI investments at Evergy Kansas Central due to a higher number of policy settlements in 2021.
Cash Flows from (used in) Financing Activities
Evergy's cash flows from (used in) financing activities increased $541.8 million in 2021, compared to 2020, primarily driven by:
•a $1,087.4 million increase in short-term debt borrowings primarily driven by:
◦a $553.2 million increase at Evergy Kansas Central primarily due to the repayment of $199.2 million of commercial paper in 2020 and increased borrowing in 2021 driven by $133.9 million of fuel and purchased power costs related to the February 2021 winter weather event and higher cash capital expenditures in 2021; and
◦a $357.8 million increase at Evergy Missouri West primarily due to $296.4 million of fuel and purchased power costs related to the February 2021 winter weather event, the repayment of $80.9 million of Evergy Missouri West's 8.27% Senior Notes in November 2021 and higher cash capital expenditures in 2021; and
•$112.5 million of Evergy common stock issued in April 2021 pursuant to a securities purchase agreement with an affiliate of Bluescape; partially offset by
•a $391.5 million decrease in proceeds from long-term debt, net due to Evergy Kansas Central's issuance of $500.0 million of 3.45% FMBs in April 2020 and Evergy Metro's issuance of $400.0 million of 2.25% Mortgage Bonds in May 2020; partially offset by Evergy Missouri West's issuance of $500.0 million of Series A, B and C Senior Notes in April 2021;
•a $180.9 million increase in retirements of long-term debt, net due to Evergy's repayment of $350.0 million of 4.85% Senior Notes in April 2021 and Evergy Missouri West's repayment of $80.9 million of 8.27% Senior Notes in November 2021; partially offset by Evergy Kansas Central's repayment of $250.0 million of 5.10% FMBs in May 2020; and
•a $7.5 million increase in the repayment of borrowings against cash surrender value of corporate-owned life insurance primarily due to a higher number of policy settlements in 2021.
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EVERGY KANSAS CITY POWER & LIGHT COMPANYCENTRAL, INC.
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
The below results of operations and related discussion for Evergy Kansas Central is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
The following table summarizes KCP&L's consolidatedEvergy Kansas Central's comparative results of operations.
2021Change2020
 (millions)
Operating revenues$2,847.3 $429.2 $2,418.1 
Fuel and purchased power638.7 211.1 427.6 
SPP network transmission costs290.4 27.2 263.2 
Operating and maintenance530.8 17.2 513.6 
Depreciation and amortization467.2 14.1 453.1 
Taxes other than income tax203.9 10.6 193.3 
Income from operations716.3 149.0 567.3 
Other expense, net(7.6)5.1 (12.7)
Interest expense160.3 (7.3)167.6 
Income tax expense51.7 (104.1)155.8 
Equity in earnings of equity method investees, net of income taxes4.0 (0.6)4.6 
Net income500.7 264.9 235.8 
Less: Net income attributable to noncontrolling interests12.2 0.5 11.7 
Net income attributable to Evergy Kansas Central, Inc.$488.5 $264.4 $224.1 
  2017 2016 
 (millions)
Operating revenues $1,890.7
 $1,875.4
 
Fuel and purchased power (412.1) (372.7) 
Transmission (68.6) (56.4) 
Other operating expenses (689.5) (705.8) 
Costs to achieve the anticipated merger with Westar (10.5) (10.9) 
Depreciation and amortization (266.3) (247.5) 
Operating income 443.7
 482.1
 
Non-operating income and expenses 3.1
 4.2
 
Interest charges (138.8) (139.4) 
Income tax expense (128.2) (121.9) 
Net income $179.8
 $225.0
 
Reconciliation of gross margin to operating revenues:     
Operating revenues $1,890.7
 $1,875.4
 
Fuel and purchased power (412.1) (372.7) 
Transmission (68.6) (56.4) 
Gross margin (a)
 $1,410.0
 $1,446.3
 
(a)
Gross margin is a non-GAAP financial measure. See explanation of gross margin under Great Plains Energy's Results of Operations.
KCP&LEvergy Kansas Central Utility Gross Margin and MWh Sales
The following table summarizes KCP&L'sEvergy Kansas Central's utility gross margin and MWhs sold.
 Revenues and ExpensesMWhs Sold
2021Change20202021Change2020
Retail revenues(millions)(thousands)
Residential$824.1 $22.9 $801.2 6,565 74 6,491 
Commercial694.1 28.5 665.6 7,112 237 6,875 
Industrial391.7 11.8 379.9 5,533 291 5,242 
Other retail revenues17.1 (0.6)17.7 40 (1)41 
Total electric retail1,927.0 62.6 1,864.4 19,250 601 18,649 
Wholesale revenues453.1 237.7 215.4 10,175 2,324 7,851 
Transmission revenues322.9 35.6 287.3 N/AN/AN/A
Other revenues144.3 93.3 51.0 N/AN/AN/A
Operating revenues2,847.3 429.2 2,418.1 29,425 2,925 26,500 
Fuel and purchased power(638.7)(211.1)(427.6)
SPP network transmission costs(290.4)(27.2)(263.2)
Utility gross margin (a)
1,918.2 190.9 1,727.3 
Operating and maintenance(530.8)(17.2)(513.6)
Depreciation and amortization(467.2)(14.1)(453.1)
Taxes other than income tax(203.9)(10.6)(193.3)
Income from operations$716.3 $149.0 $567.3 
 Revenues and Costs % MWhs Sold %
 2017 2016 Change 2017 2016 Change
Retail revenues(millions)   (thousands)  
Residential$715.6
 $713.0
 —
 5,182
 5,330
 (3)
Commercial826.5
 798.5
 4
 7,466
 7,553
 (1)
Industrial157.7
 147.4
 7
 1,815
 1,839
 (1)
Other retail revenues11.1
 13.1
 (15) 72
 83
 (14)
Provision for rate refund0.9
 0.8
 16
 N/A
 N/A
 N/A
Energy efficiency (MEEIA)(a)
30.1
 50.9
 (41)
 N/A
 N/A
 N/A
Total retail1,741.9
 1,723.7
 1
 14,535
 14,805
 (2)
Wholesale revenues122.9
 128.9
 (5) 6,788
 6,629
 2
Other revenues25.9
 22.8
 13
 N/A
 N/A
 N/A
Operating revenues1,890.7
 1,875.4
 1
 21,323
 21,434
 (1)
Fuel and purchased power(412.1) (372.7) 11
      
Transmission(68.6) (56.4) 22
      
Gross margin (b)
$1,410.0
 $1,446.3
 (3) 

 

  
(a)
Consists of recovery of program costs of $24.1 million and $31.0 million for 2017 and 2016, respectively, that have a direct offset in operating and maintenance expenses and recovery of throughput disincentive of $6.0 million and $9.5 million for 2017 and 2016, respectively, and a performance incentive of $10.4 million for 2016.
(b)
Gross margin is a non-GAAP financial measure. See explanation of gross margin under Great Plains Energy's Results of Operations.

(a)Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.
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KCP&L'sEvergy Kansas Central's utility gross margin decreased $36.3increased $190.9 million in 20172021, compared to 2016 primarily2020, driven by:
an estimated $42•$94.5 million decreaseof non-regulated energy marketing margins recognized during the February 2021 winter weather event;
•a $42.9 million increase primarily due to cooler weatherhigher retail sales driven by favorable weather (cooling degree days increased by 5%, partially offset by a 16%3% decrease in CDD;heating degree days) and an increase in weather-normalized commercial and industrial demand;
•a $6.9$35.6 million decrease for recovery of programincrease in transmission revenue primarily due to updated transmission costs for energy efficiency programs under MEEIA, which have reflected in Evergy Kansas Central's FERC TFR effective in January 2021;
•a direct offset in utility operating and maintenance expense;
a $10.4 million MEEIA performance incentive related to the achievement of certain energy savings levels in the first cycle of KCP&L's MEEIA program, which was recognized in 2016;
$6.3 million of favorable arbitration and insurance settlements in 2017 that did not pass through KCP&L's fuel recovery mechanism in Missouri; and
an estimated $14$33.8 million increase due to weather-normalized retail demand.other impacts from the February 2021 winter weather event driven by higher utility gross margin at Evergy Kansas Central's non-regulated 8% ownership share of JEC due to higher wholesale sales prices and MWhs sold in February 2021; and
KCP&L Other•a $5.7 million increase related to Evergy Kansas Central's TDC rider in 2021; partially offset by
•a $21.6 million decrease in revenues due to rate reductions beginning January 1, 2021, in Kansas to reflect the exemption of Evergy Kansas Central from Kansas corporate income taxes.
Evergy Kansas Central Operating Expenses (including utilityand Maintenance
Evergy Kansas Central's operating and maintenance expense increased $17.2 million in 2021, compared to 2020, primarily driven by:
•a $22.9 million increase in various administrative and general operating and maintenance expenses general taxesdriven by an increase in costs billed for common use assets from Evergy Metro in 2021 primarily related to software assets placed into service in the third quarter of 2020;
•$7.9 million of costs related to non-regulated energy marketing margins recognized during the February 2021 winter weather event;
•$7.6 million of costs associated with executive transition in 2021, including inducement bonuses, severance agreements and other) transition expenses;
KCP&L's other operating expenses decreased $16.3•a $6.3 million in 2017 compared to 2016 primarily driven by:
a $6.9 million decrease in program costs for energy efficiency programs under MEEIA, which have a direct offset in revenue;
a $3.7 million decreaseincrease in plant operating and maintenance expense;expense at fossil-fuel generating units primarily driven by a major maintenance outage at JEC in 2021 and higher material and supplies costs;
•a $10.6$3.5 million increase in advisor expenses incurred in 2021 associated with strategic planning; and
•a $1.4 million increase in property insurance expense due to a lower annual refund of nuclear insurance premiums received by Evergy Kansas Central in 2021 related to its ownership interest in Wolf Creek; partially offset by
•a $31.2 million decrease in injuriesvoluntary severance expenses due to a $27.4 million decrease related to Evergy voluntary exit programs in 2020 and damages expense$3.8 million decrease in voluntary severance expenses related to Wolf Creek voluntary exit programs in 2020; and
•a $4.8 million decrease in various transmission and distribution operating and maintenance expenses primarily due to settled litigationlower labor and contractor costs primarily driven by a higher mix of transmission capital projects in 2017 in which actual losses were less than estimated.2021.
KCP&LEvergy Kansas Central Depreciation and Amortization
KCP&L'sEvergy Kansas Central's depreciation and amortization expense increased $18.8$14.1 million in 20172021, compared to 20162020, primarily driven by higher capital additions in 2021.
Evergy Kansas Central Other Expense, Net
Evergy Kansas Central's other expense, net decreased $5.1 million in 2021, compared to 2020, primarily driven by:
•a $5.8 million decrease due to higher equity AFUDC primarily driven by higher construction work in progress balances in 2021; and
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•$2.8 million of other income recorded in 2021 related to contract termination fees; partially offset by
•$4.8 million of lower COLI benefits in 2021.
Evergy Kansas Central Interest Expense
Evergy Kansas Central's interest expense decreased $7.3 million in 2021, compared to 2020, primarily driven by:
•a $6.4 million decrease in interest expense on short-term borrowings primarily due to capital additions.lower weighted-average interest rates in 2021; and
KCP&L•a $2.2 million net decrease due to the redemption of Evergy Kansas Central's $250.0 million of 5.10% FMBs in May 2020, which decreased interest expense by $6.8 million, partially offset by a $4.6 million increase due to the issuance of Evergy Kansas Central's $500.0 million of 3.45% FMBs in April 2020.
Evergy Kansas Central Income Tax Expense
KCP&L'sEvergy Kansas Central's income tax expense decreased $104.1 million in 2021, compared to 2020, primarily driven by:
•a $109.0 million net decrease due to the revaluation of deferred income tax assets and liabilities in the second quarter of 2020 due to the change in the Kansas corporate income tax rate;
•a $30.2 million decrease as a result of the state of Kansas exempting certain public utilities, including Evergy Kansas Central, from Kansas corporate income tax beginning in January 2021; and
•a $15.7 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes; partially offset by
•a $42.7 million increase due to higher pre-tax income in 2021;
•a $5.1 million increase due to lower expected COLI proceeds for 2021; and
•a $1.5 million increase due to lower wind and other income tax credits in 2021.
See Note 19 to the consolidated financial statements for more information regarding the change in the Kansas corporate income tax rate.
EVERGY METRO, INC.
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
The below results of operations and related discussion for Evergy Metro is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
The following table summarizes Evergy Metro's comparative results of operations.
2021Change2020
 (millions)
Operating revenues$1,913.7 $208.1 $1,705.6 
Fuel and purchased power613.5 197.4 416.1 
Operating and maintenance365.4 (42.1)407.5 
Depreciation and amortization321.0 (5.1)326.1 
Taxes other than income tax126.2 4.6 121.6 
Income from operations487.6 53.3 434.3 
Other expense, net(13.1)1.8 (14.9)
Interest expense109.8 (3.8)113.6 
Income tax expense52.4 45.3 7.1 
Net income$312.3 $13.6 $298.7 
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Evergy Metro Utility Gross Margin and MWh Sales
The following table summarizes Evergy Metro's utility gross margin and MWhs sold.
 Revenues and ExpensesMWhs Sold
2021Change20202021Change2020
Retail revenues(millions)(thousands)
Residential$691.9 (22.8)$714.7 5,517 87 5,430 
Commercial713.3 (3.8)717.1 7,286 258 7,028 
Industrial122.0 (6.8)128.8 1,669 (26)1,695 
Other retail revenues9.2 (2.5)11.7 70 (1)71 
Total electric retail1,536.4 (35.9)1,572.3 14,542 318 14,224 
Wholesale revenues242.6 207.6 35.0 5,523 (434)5,957 
Transmission revenues17.1 3.2 13.9 N/AN/AN/A
Other revenues117.6 33.2 84.4 N/AN/AN/A
Operating revenues1,913.7 208.1 1,705.6 20,065 (116)20,181 
Fuel and purchased power(613.5)(197.4)(416.1)
Utility gross margin (a)
1,300.2 10.7 1,289.5 
Operating and maintenance(365.4)42.1 (407.5)
Depreciation and amortization(321.0)5.1 (326.1)
Taxes other than income tax(126.2)(4.6)(121.6)
Income from operations$487.6 $42.6 $434.3 
(a) Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.
Evergy Metro's utility gross margin increased $10.7 million in 2021, compared to 2020, driven by:
•a $30.7 million increase primarily due to higher retail sales driven by favorable weather (cooling degree days increased 20%, partially offset by a 5% decrease in heating degree days), partially offset by a decrease in weather-normalized residential and industrial demand; partially offset by
•an $11.4 million decrease due to impacts from the February 2021 winter weather event primarily driven by jurisdictional allocation differences currently present between Evergy Metro's fuel recovery mechanisms in Missouri and Kansas regarding its refund to customers for the net increase in wholesale revenues in February 2021; and
•an $8.6 million decrease in revenues due to a rate reduction beginning January 1, 2021, in Kansas to reflect Evergy Metro's exemption from Kansas corporate income taxes.
Evergy Metro Operating and Maintenance
Evergy Metro's operating and maintenance expense decreased $42.1 million in 2021, compared to 2020, primarily driven by:
•a $23.5 million decrease in voluntary severance expenses due to a $19.7 million decrease related to Evergy voluntary exit programs in 2020 and a $3.8 million decrease in voluntary severance expenses related to Wolf Creek voluntary exit programs in 2020; and
•a $20.6 million decrease in various administrative and general operating and maintenance expenses driven by an increase in costs billed for common use assets to Evergy Kansas Central in 2021 primarily related to software assets placed into service in the third quarter of 2020; partially offset by
•$2.1 million of costs associated with executive transition in 2021, including inducement bonuses, severance agreements and other transition expenses; and
•a $1.3 million increase in property insurance expense due to a lower annual refund of nuclear insurance premiums received in 2021 by Evergy Metro related to its ownership interest in Wolf Creek.
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Evergy Metro Interest Expense
Evergy Metro's interest expense decreased $3.8 million in 2021, compared to 2020, primarily due to lower interest expense on short-term borrowings driven by lower weighted-average interest rates and lower commercial paper balances in 2021.
Evergy Metro Income Tax Expense
Evergy Metro's income tax expense increased $6.3$45.3 million in 20172021, compared to 20162020, primarily due to andriven by:
•a $32.2 million increase of $16.5 million related to the revaluation of KCP&L's deferred income taxes not includedtax assets and liabilities in rate basethe second quarter of 2020 due to the change in the Kansas corporate income tax rate;
•a $15.1 million increase due to higher pre-tax income in 2021;
•a $5.0 million increase due to lower wind and other income tax credits in 2021, primarily driven by the expiration of production tax credits at the Spearville 2 wind facility in the fourth quarter of 2020 and lower research and development tax credits in 2021; and
•a $2.8 million increase due to higher non-deductible officer compensation in 2021; partially offset by
•a $14.1 million decrease as a result of the enactmentstate of U.S. federalKansas exempting certain public utilities, including Evergy Metro from Kansas corporate income tax reformbeginning in December 2017 and an increase of $4.5 million dueJanuary 2021.
See Note 19 to decreased wind productionthe consolidated financial statements for more information regarding the change in the Kansas corporate income tax credits in 2017; partially offset by a decrease of $15.1 million due to decreased pre-tax income.rate.
ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
In the ordinary course of business, Great Plains Energy and KCP&L faceEvergy faces risks that are either non-financial or non-quantifiable. Such risks principally include business, legal, operational and credit risks and are not represented in the following analysis. See Part I, Item 1A, Risk Factors and Part II, Item 7, MD&A for further discussion of risk factors.
Great Plains Energy and KCP&LThe Evergy Companies are exposed to market risks associated with commodity price and supply, interest rates and security prices. Commodity price risk is the potential adverse price impact related to the purchase or sale of electricity and energy-related products. Credit risk is the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. Interest rate risk is the potential adverse financial impact related to changes in interest rates. In addition, Evergy's investments in trusts to fund nuclear plant decommissioning and non-qualified retirement benefits, as well as limited equity prices. investments in early-stage energy solution companies, give rise to security price risk.
Management has established risk management policies and strategies to reduce the potentially adverse effects that the volatility of the markets may have on itsEvergy's operating results. During the ordinary course of business, under the direction and control of an internal commodity risk committee, Great Plains Energy's and KCP&L'sEvergy Companies' hedging strategies are reviewed to determine the hedging approach deemed appropriate based upon the circumstances of each situation. Though management believes its risk management practices are effective, it is not possible to identify and eliminate all risk. Great Plains Energy and KCP&LEvergy could experience losses, which could have a material adverse effect on theirits results of operations or financial position, due to many factors, including unexpectedly large or rapid movements or disruptions in the energy markets, from regulatory-driven market rule changes and/or bankruptcy or non-performance of customers or counterparties, and/or failure of underlying transactions that have been hedged to materialize.
Hedging Strategies
Great Plains Energy and KCP&L, fromFrom time to time, utilizeEvergy utilizes derivative instruments to execute risk management and hedging strategies. Derivative instruments, such as futures, forward contracts, swaps or options, derive their value

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from underlying assets, indices, reference rates or a combination of these factors. These derivative instruments include negotiated contracts, which are referred to as over-the-counter derivatives, and instruments listed and traded on an exchange.
Interest Rate
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Commodity Price Risk
Great Plains Energy and KCP&L manage interest expense and short- and long-term liquidity through a combination of fixed and variable rate debt. Generally, the amount of each type of debt is managed through market issuance, but interest rate swap and cap agreements with highly rated financial institutions may also be used to achieve the desired combination. At December 31, 2017, 4% and 7%, respectively, of Great Plains Energy's and KCP&L's long-term debt was variable rate debt. Interest rates impact the fair value of long-term debt. A change in interest rates would impact Great Plains Energy and KCP&L to the extent they redeemed any of their outstanding long-term debt. Great Plains Energy's and KCP&L's book values of long-term debt were below fair value by 7% at December 31, 2017.
Great Plains Energy and KCP&L had $376.8 million and $167.5 million, respectively, of commercial paper outstanding at December 31, 2017. The principal amount of the commercial paper, which will vary during the year, drives Great Plains Energy's and KCP&L's commercial paper interest expense. Assuming $376.8 million and $167.5 million of commercial paper was outstanding for all of 2018 for Great Plains Energy and KCP&L, respectively, a hypothetical 10% increase in commercial paper rates would result in an increase in interest expense of $0.5 million for Great Plains Energy and $0.2 million for KCP&L in 2018. Assuming $376.8 million and $167.5 million of commercial paper was outstanding for all of 2018 for Great Plains Energy and KCP&L, respectively, a hypothetical 100 basis point increase in commercial paper rates would result in an increase in interest expense of $3.8 million for Great Plains Energy and $1.7 million for KCP&L in 2018.
Commodity Risk
Great Plains Energy and KCP&LEvergy Companies engage in the wholesale and retail marketingsale of electricity and are exposedas part of their regulated electric operations in addition to risklimited non-regulated energy marketing activities. These activities expose the Evergy Companies to risks associated with the price of electricity.electricity and other energy-related products. Exposure to these risks is affected by a number of factors including the quantity and availability of fuel used for generation and the quantity of electricity customers consume.consume, as well as the wholesale market prices received by the Evergy Companies' generation resources and the wholesale market prices paid to procure power to serve customer load or satisfy regulatory or contractual obligations. Customers' electricity usage could also vary from year to year based on the weather or other factors. Quantities of fossil fuel used for generation vary from year to year based on the availability, price and deliverability of a given fuel type as well as planned and unplanned outages at facilities that use fossil fuels.
KCP&L's wholesale operations include Evergy's exposure to fluctuations in these factors is limited by the physical delivery and marketing of power obtained through its generation capacity. KCP&L is required to maintain a minimum reserve margin of 12%. This net positive supply of capacity is maintained through KCP&L's generation assets, capacity agreements, power purchase agreements and peak demand reduction programs to protect KCP&L from the potential operational failure of onecost-based regulation of its power generating units. KCP&L continually evaluates the need for additionalregulated operations in Kansas and Missouri as these operations are typically allowed to recover substantially all of these costs through fuel recovery mechanisms. While there may be a delay in timing between when these costs are incurred and when they are recovered through rates, changes from year to year generally do not have a material impact on operating results.
Interest Rate Risk
Evergy manages interest rate risk mitigation measures in order to minimizeand short- and long-term liquidity by limiting its financial exposure to among other things, spikesvariable interest rate debt to a percentage of total debt, diversifying maturity dates and, from time to time, entering into interest rate hedging transactions. At December 31, 2021, 2.8% of Evergy's long-term debt was variable rate debt, short-term borrowings and current maturities of fixed rate debt that were exposed to interest rate risk. Evergy computes and presents information regarding the sensitivity to changes in wholesale power prices during periodsinterest rates for variable rate debt, short-term borrowings and current maturities of high demand.
KCP&L's sales include the sale of electricity to its retail customers and bulk power sales of electricityfixed rate debt by assuming a 100-basis-point change in the wholesale market. KCP&Lcurrent interest rates applicable to such debt over the remaining time the debt is a memberoutstanding.
At December 31, 2021, Evergy had $1,815.3 million of SPP Consolidated Balancing Authority (CBA)variable rate debt, short-term borrowings and Integrated Marketplace (IM), which are largely responsible for the dispatchcurrent maturities of member generating facilities and the resulting supply of energy to fulfill member load obligations. KCP&L's Kansas ECA allows for the recovery of increased fuel and purchased power costs from Kansas retail customers. KCP&L’s Missouri FAC allows for KCP&L Missouri retail electric rates to be adjusted based on 95% of the difference between actual fuel and purchased power costs and the amount of fuel and purchased power costs provided in base rates. Most of thefixed rate debt. A 100-basis-point change in market prices for fuel and purchased power is recovered through the ECA or FAC, which mitigates KCP&L’s commodity price exposure.
GMO is also a member of SPP’s CBA and IM. GMO hasinterest rates applicable to this debt would impact Evergy's income before income taxes on an FAC that allows GMO to adjust retail electric rates based on 95% of the difference between actual fuel and purchased power costs and the amount of fuel and purchased power costs provided in base rates. Most of the change in market prices for fuel and purchased power is recovered through the FAC, which mitigates GMO's commodity price exposure.

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annualized basis by approximately $16.1 million.
Credit Risk - MPS Merchant
MPS MerchantEvergy is exposed to counterparty credit risk. Credit risk largely in the form of accounts receivable from its retail and wholesale electric customers and through executory contracts with market risk exposure. The credit risk associated with accounts receivable from retail and wholesale customers is measuredlargely mitigated by Evergy's large number of individual customers spread across diverse customer classes and the loss that would be recorded if counterparties failedability to perform pursuantrecover bad debt expense in customer rates. The Evergy Companies maintain credit policies and employ credit risk control mechanisms, such as letters of credit, when necessary to the terms of the contractual obligations less the value of any collateral held. MPS Merchant's counterparties are not externally rated. Credit exposure to counterparties at December 31, 2017, was $4.5 million.minimize their overall credit risk and monitor exposure.
Investment Risk
KCP&LEvergy maintains trust funds, as required by the NRC, to fund its 94% share of decommissioning the Wolf Creek nuclear power plant.plant and also maintains trusts to fund pension benefits as well as certain non-qualified retirement benefits. As of December 31, 2017,2021, these funds were primarily invested primarily in domestica diversified mix of equity and debt securities and fixed income securities and are reflected at fair value on KCP&L'sEvergy's balance sheets.sheet. The mix of securities is designed to provide returns to be used to fund decommissioning and to compensate for inflationary increases in decommissioning costs; however, the equity securities in the trusts are exposed to price fluctuations in equity markets and the value of fixed rate fixed incomedebt securities are exposed to changes in interest rates. A hypothetical increaserates and other market factors.
As nuclear decommissioning costs are currently recovered in interestcustomer rates, resulting in a hypothetical 10% decreaseEvergy defers both realized and unrealized gains and losses for these securities as an offset to its regulatory liability for decommissioning Wolf Creek and as such, fluctuations in the value of the fixed incomethese securities would have resulted in a $7.2 million reductiondo not impact earnings. A significant decline in the value of the decommissioning trust funds at December 31, 2017. A hypothetical 10% decreasepension or non-qualified retirement assets could require Evergy to increase funding of its pension plans in equity prices would have resultedfuture periods, which could adversely affect cash flows in an $18.2 million reductionthose periods. In addition, a decline in the fair value of these plan assets, in the equity securities at December 31, 2017. KCP&L's exposure to investment risk associated with the decommissioning trust funds is in large part mitigated dueabsence of additional cash contributions to the fact that KCP&L is currently allowed to recover its decommissioning costs in its rates. Ifplans by Evergy, could increase the actual return on trust assets is below the anticipated level, KCP&L could be responsible for the balanceamount of fundspension cost required to decommission Wolf Creek; however, while there can be no assurances, management believes a rate increase would be allowed to recover decommissioning costs over the remaining life of the unit.

recorded in future periods by Evergy.
55
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In addition to Evergy's investments in debt and equity securities in its nuclear decommissioning and pension trusts, Evergy also makes limited equity investments in early-stage energy solution companies. These limited equity investments are often in privately-owned companies that do not have reasonably determinable fair values. However, from time to time, these investments could have changes in fair value as a result of acquisitions, mergers, initial public offerings, or observable market transactions for similar investments. Evergy typically seeks to liquidate its position in these companies as soon as practicable following the occurrence of an exit event such as an acquisition or initial public offering (including after the expiration of any related lock-up provisions), which serves to largely mitigate any ongoing market risk related to the investments. At December 31, 2021, Evergy had a $31.4 million investment, including a $27.7 million unrealized gain, in an early-stage energy solution company that was acquired and became a publicly traded company through a transaction involving a SPAC in the fourth quarter of 2021. This investment is currently subject to a lock-up provision on its sale until March 2022 and is exposed to significant equity price risk. A 50% decline in the stock price of this investment would impact Evergy's income before income taxes by approximately $14 million. Evergy uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the gains or losses related to equity investments which are subject to a restriction on sale that can create period to period volatility. See "Non-GAAP Measures" within Part II, Item 7, MD&A - Executive Summary for additional information.
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm
Great Plains Energy IncorporatedEvergy, Inc.
5763
Evergy Kansas City Power & Light CompanyCentral, Inc.
5866
Evergy Metro, Inc.
69
Great Plains Energy Incorporated
Evergy, Inc.
5972
6073
6275
6376
Evergy Kansas City Power & Light CompanyCentral, Inc.
77
78
80
81
Evergy Metro, Inc.
6482
6583
6785
6886
Combined Notes to Consolidated Financial Statements for Great Plains Energy Incorporated and Kansas City Power & Light Company
Note 1:
6987
Note 2:
7593
Note 3:
7999
Note 4:
80100
Note 5:
80109
Note 6:
83
Note 7:
Goodwill and Intangible Assets
86
Note 8:
Asset Retirement Obligations
87109
Note 7:
110
Note 8:
111
Note 9:
87112
Note 10:
94125
Note 11:
96126
Note 12:
98128
Note 13:
100131
Note 14:
101
Note 15:
Commitments and Contingencies
102136
Note 16:15:
106140
Note 17:16:
106
Note 18:
Related Party Transactions and Relationships
107141
Note 19:17:
107142
Note 20:18:
111143
Note 21:19:
113144
Note 22:20:
117150
Note 23:
Jointly-Owned Electric Utility Plants
119
Note 24:
Quarterly Operating Results (Unaudited)
120

62

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Great Plains Energy IncorporatedEvergy, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Great Plains Energy IncorporatedEvergy, Inc. and subsidiaries (the "Company") as of December 31, 20172021 and 2016, and2020, the related consolidated statements of comprehensive income, (loss), shareholders'changes in equity, and cash flows for each of the three years in the period ended December 31, 2017,2021, and the related notes and the financial statement schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 20172021 and 2016,2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017,2021, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2017,2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 21, 2018,24, 2022, expressed an unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 4 to the financial statements
Critical Audit Matter Description
The Company is subject to rate regulation by the Kansas Corporation Commission and by the Missouri Public Service Commission (collectively the "Commissions"), which has jurisdiction with respect to the rates of electric distribution companies in Kansas and Missouri, respectively. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the
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economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant, and equipment, including asset retirements and abandonments; regulatory assets and liabilities; operating revenues; operating and maintenance expense; and depreciation expense.
The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Rates are determined and approved in regulatory proceedings based on an analysis of the Company's costs to provide utility service and a return on, and recovery of, the Company's investment in the utility business. Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. The Commissions' regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. Decisions to be made by the Commissions in the future will impact the accounting for regulated operations, including decisions about the amount of allowable costs and return on invested capital included in rates and any refunds that may be required. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve (1) full recovery of the costs of providing utility service or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment.
When the Company retires a regulated plant, the Company must assess the probability of recovery of the regulated plant, which is dependent upon amounts that may be recovered through regulated rates, including any return. Pending receipt of regulatory approval for the retirement and/or recovery of the affected plants, accounting for early retirements of regulated plants involves judgment related to the nature of the early retirement and the likelihood that the Company will recover its remaining investment in these retired generating plants with a return. Auditing the judgments related to the nature and likelihood of the retirement and the probability of recovering the generating plant investment with a return involves especially subjective and complex judgment.
We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs, (2) probability of potential charges related to the abandonment of regulated plants, and (3) a refund to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:
•We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.
•We tested the effectiveness of management's controls over the initial recognition of amounts as property, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates, including Company management's determination of the likelihood of recovery of the full investment of certain regulated plants and probability of refunding amounts previously collected from customers related to certain regulated plants.
•We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.
•We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commissions for the Company and other public utilities in Kansas and Missouri, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available
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information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commissions' treatment of similar costs under similar circumstances.
•For regulatory matters in process, including those that could impact the early retirement of regulated plants, we inspected the Company's filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company's future rates, for any evidence that might contradict management's assertions.
•We evaluated the reasonableness of management's judgments for potential indicators of abandonment by performing the following:
◦We inquired of management about property, plant, and equipment that may be abandoned.
◦We inspected the capital projects budget and construction-in-process listings and inquired of management to identify projects that are designed to replace assets that may be retired prior to the end of the useful life.
◦We inspected minutes of the board of directors and regulatory orders and other filings with the Commissions to identify any evidence that may contradict management's assertion regarding probability of an abandonment.
•We compared actual spend for projects that have been capitalized to property, plant, and equipment to budget. We evaluated regulatory filings for any evidence that intervenors are challenging full recovery of the cost of any capital projects. For significant projects that were over budget or if full recovery of project costs is being challenged by intervenors, we evaluated management's assessment of the probability of a disallowance. We tested selected costs included in the capitalized project costs for completeness and accuracy.
•We evaluated management's analysis, and letters from internal and external legal counsel, as appropriate, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.
•We evaluated management's conclusions for the probable recovery of the retired regulated plant investment with a return. We evaluated management's conclusions regarding the accounting for the abandonment of certain regulated plants and the impact of recent rate orders on the accounting.
/s/DELOITTE & TOUCHE LLP

Kansas City, Missouri  
February 21, 201824, 2022 


We have served as the Company's auditor since 2002.








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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Evergy Kansas City Power & Light CompanyCentral, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy Kansas City Power & Light CompanyCentral, Inc. and subsidiaries (the "Company") as of December 31, 20172021 and 2016,2020, the related consolidated statements of comprehensive income, common shareholder'schanges in equity, and cash flows, for each of the three years in the period ended December 31, 2017,2021, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 20172021 and 2016,2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017,2021, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 21, 2018, expressed an unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOBPublic Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 4 to the financial statements
Critical Audit Matter Description
The Company is subject to rate regulation by the Kansas Corporation Commission (the "Commission"), which has jurisdiction with respect to the rates of electric distribution companies in Kansas. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures,
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such as property, plant, and equipment, including asset retirements and abandonments; regulatory assets and liabilities; operating revenues; operating and maintenance expense; and depreciation expense.
The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Rates are determined and approved in regulatory proceedings based on an analysis of the Company's costs to provide utility service and a return on, and recovery of, the Company's investment in the utility business. Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. The Commission's regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commission will not approve (1) full recovery of the costs of providing utility service or (2) recovery of all amounts invested in the utility business and a reasonable return on that investment.
When the Company retires a regulated plant, the Company must assess the probability of recovery of the regulated plant, which is dependent upon amounts that may be recovered through regulated rates, including any return. Pending receipt of regulatory approval for the retirement and/or recovery of the affected plants, accounting for early retirements of regulated plants involves judgment related to the nature of the early retirement and the likelihood that the Company will recover its remaining investment in these retired generating plants with a return. Auditing the judgments related to the nature and likelihood of the retirement and the probability of recovering the generating plant investment with a return involves especially subjective and complex judgment.
We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs, (2) probability of potential charges related to the abandonment of regulated plants, and (3) a refund to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commission, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the uncertainty of future decisions by the Commission included the following, among others:
•We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.
•We tested the effectiveness of management's controls over the initial recognition of amounts as property, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.
•We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.
•We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commission for the Company and other public utilities in Kansas, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commission's treatment of similar costs under similar circumstances.
•For regulatory matters in process, we inspected the Company’s filings with the Commission and the filings with the Commission by intervenors that may impact the Company’s future rates, for any evidence that might contradict management’s assertions.
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•We evaluated the reasonableness of management's judgments for potential indicators of abandonment by performing the following:
◦We inquired of management about property, plant, and equipment that may be abandoned.
◦We inspected the capital projects budget and construction-in-process listings and inquired of management to identify projects that are designed to replace assets that may be retired prior to the end of the useful life.
◦We inspected minutes of the board of directors and regulatory orders and other filings with the Commission to identify any evidence that may contradict management's assertion regarding probability of an abandonment.
•We compared actual spend for projects that have been capitalized to property, plant, and equipment to budget. We evaluated regulatory filings for any evidence that intervenors are challenging full recovery of the cost of any capital projects. For significant projects that were over budget or if full recovery of project costs is being challenged by intervenors, we evaluated management's assessment of the probability of a disallowance. We tested selected costs included in the capitalized project costs for completeness and accuracy.
•We evaluated management's analysis, and letters from internal and external legal counsel, as appropriate, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.
/s/DELOITTE & TOUCHE LLP

Kansas City, Missouri  
February 21, 201824, 2022  


We have served as the Company's auditor since 2002.
















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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Evergy Metro, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy Metro, Inc. and subsidiaries (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2021, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 4 to the financial statements
Critical Audit Matter Description
The Company is subject to rate regulation by the Kansas Corporation Commission and by the Missouri Public Service Commission (collectively the "Commissions"), which has jurisdiction with respect to the rates of electric distribution companies in Kansas and Missouri, respectively. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant,
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GREAT PLAINS ENERGY INCORPORATED
Consolidated Statements of Comprehensive Income (Loss)
     
Year Ended December 31 2017 2016 2015
Operating Revenues(millions, except per share amounts)
Electric revenues $2,708.2
 $2,676.0
 $2,502.2
Operating Expenses  
  
  
Fuel and purchased power 608.6
 590.1
 608.7
Transmission 105.7
 84.8
 89.1
Utility operating and maintenance expenses 754.2
 759.5
 724.8
Costs to achieve the anticipated merger with Westar Energy, Inc. 31.8
 34.2
 —
Depreciation and amortization 371.1
 344.8
 330.4
General taxes 229.2
 226.7
 213.2
Other 4.0
 17.0
 5.9
Total 2,104.6
 2,057.1
 1,972.1
Operating income 603.6
 618.9
 530.1
Other Income (Expense)      
Non-operating income 50.7
 17.1
 11.7
Non-operating expenses (31.4) (14.3) (8.0)
Loss on Series B Preferred Stock dividend make-whole provisions (Note 14) (124.8) —
 —
Loss on extinguishment of debt (Note 12) (82.8) —
 —
Total (188.3) 2.8
 3.7
Interest charges (290.7) (161.5) (199.3)
Income before income tax expense and income from equity investments 124.6
 460.2
 334.5
Income tax expense (233.3) (172.2) (122.7)
Income from equity investments, net of income taxes 2.5
 2.0
 1.2
Net income (loss) (106.2) 290.0
 213.0
Preferred stock dividend requirements and redemption premium 37.3
 16.5
 1.6
Earnings (loss) available for common shareholders $(143.5) $273.5
 $211.4
       
Average number of basic common shares outstanding 215.5
 169.4
 154.2
Average number of diluted common shares outstanding 215.5
 169.8
 154.8
       
Basic and diluted earnings (loss) per common share
 $(0.67) $1.61
 $1.37
Comprehensive Income (Loss)      
Net income (loss) $(106.2) $290.0
 $213.0
Other comprehensive income  
  
  
Derivative hedging activity  
  
  
Reclassification to expenses, net of tax 4.9
 5.6
 5.7
Derivative hedging activity, net of tax 4.9
 5.6
 5.7
Defined benefit pension plans      
Net gain (loss) arising during period (0.7) (1.1) 1.0
Income tax (expense) benefit (0.2) 0.4
 (0.4)
Net gain (loss) arising during period, net of tax (0.9) (0.7) 0.6
Amortization of net losses included in net periodic benefit costs, net of tax 0.4
 0.5
 0.4
Change in unrecognized pension expense, net of tax (0.5) (0.2) 1.0
Total other comprehensive income 4.4
 5.4
 6.7
Comprehensive income (loss) $(101.8) $295.4
 $219.7
and equipment, including asset retirements and abandonments; regulatory assets and liabilities; operating revenues; operating and maintenance expense; and depreciation expense.
The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Rates are determined and approved in regulatory proceedings based on an analysis of the Company's costs to provide utility service and a return on, and recovery of, the Company's investment in the utility business. Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. The Commissions' regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve (1) full recovery of the costs of providing utility service or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment.
When the Company retires a regulated plant, the Company must assess the probability of recovery of the regulated plant, which is dependent upon amounts that may be recovered through regulated rates, including any return. Pending receipt of regulatory approval for the retirement and/or recovery of the affected plants, accounting for early retirements of regulated plants involves judgment related to the nature of the early retirement and the likelihood that the Company will recover its remaining investment in these retired generating plants with a return. Auditing the judgments related to the nature and likelihood of the retirement and the probability of recovering the generating plant investment with a return involves especially subjective and complex judgment.
We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs, (2) probability of potential charges related to the abandonment of regulated plants, and (3) a refund to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:
•We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.
•We tested the effectiveness of management's controls over the initial recognition of amounts as property, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.
•We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.
•We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commissions for the Company and other public utilities in Kansas and Missouri, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commissions' treatment of similar costs under similar circumstances.
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•For regulatory matters in process, we inspected the Company’s filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company’s future rates, for any evidence that might contradict management’s assertions.
•We evaluated the reasonableness of management's judgments for potential indicators of abandonment by performing the following:
◦We inquired of management about property, plant, and equipment that may be abandoned.
◦We inspected the capital projects budget and construction-in-process listings and inquired of management to identify projects that are designed to replace assets that may be retired prior to the end of the useful life.
◦We inspected minutes of the board of directors and regulatory orders and other filings with the Commissions to identify any evidence that may contradict management's assertion regarding probability of an abandonment.
•We compared actual spend for projects that have been capitalized to property, plant, and equipment to budget. We evaluated regulatory filings for any evidence that intervenors are challenging full recovery of the cost of any capital projects. For significant projects that were over budget or if full recovery of project costs is being challenged by intervenors, we evaluated management's assessment of the probability of a disallowance. We tested selected costs included in the capitalized project costs for completeness and accuracy.
•We evaluated management's analysis, and letters from internal and external legal counsel, as appropriate, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.
/s/ DELOITTE & TOUCHE LLP

Kansas City, Missouri  
February 24, 2022  

We have served as the Company's auditor since 2002.



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EVERGY, INC.
Consolidated Statements of Comprehensive Income
Year Ended December 31202120202019
(millions, except per share amounts)
OPERATING REVENUES$5,586.7 $4,913.4 $5,147.8 
OPERATING EXPENSES:
Fuel and purchased power1,557.0 1,099.0 1,265.0 
SPP network transmission costs290.4 263.2 251.3 
Operating and maintenance1,107.5 1,163.0 1,218.5 
Depreciation and amortization896.4 880.1 861.7 
Taxes other than income tax380.5 364.2 365.5 
Total Operating Expenses4,231.8 3,769.5 3,962.0 
INCOME FROM OPERATIONS1,354.9 1,143.9 1,185.8 
OTHER INCOME (EXPENSE):
Investment earnings59.9 10.8 11.0 
Other income46.3 31.3 26.9 
Other expense(87.4)(78.2)(76.9)
Total Other Income (Expense), Net18.8 (36.1)(39.0)
Interest expense372.6 383.9 374.0 
INCOME BEFORE INCOME TAXES1,001.1 723.9 772.8 
Income tax expense117.4 102.2 97.0 
Equity in earnings of equity method investees, net of income taxes8.2 8.3 9.8 
NET INCOME891.9 630.0 685.6 
Less: Net income attributable to noncontrolling interests12.2 11.7 15.7 
NET INCOME ATTRIBUTABLE TO EVERGY, INC.$879.7 $618.3 $669.9 
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC. (see Note 1)
Basic earnings per common share$3.84 $2.72 $2.80 
Diluted earnings per common share$3.83 $2.72 $2.79 
AVERAGE COMMON SHARES OUTSTANDING
Basic229.0 227.2 239.5 
Diluted229.6 227.5 239.9 
COMPREHENSIVE INCOME
NET INCOME$891.9 $630.0 $685.6 
Derivative hedging activity
Loss on derivative hedging instruments— — (64.4)
Income tax benefit— — 16.5 
Net loss on derivative hedging instruments— — (47.9)
Reclassification to expenses, net of tax5.5 3.0 1.5 
Derivative hedging activity, net of tax5.5 3.0 (46.4)
Defined benefit pension plans
Net loss arising during period(0.1)(3.0)(0.8)
Income tax benefit— 0.7 0.2 
Net loss arising during period, net of tax(0.1)(2.3)(0.6)
Amortization of net losses included in net periodic benefit costs, net of tax— (0.1)— 
Change in unrecognized pension expense, net of tax(0.1)(2.4)(0.6)
Total other comprehensive income (loss)5.4 0.6 (47.0)
COMPREHENSIVE INCOME897.3 630.6 638.6 
Less:  comprehensive income attributable to noncontrolling interest12.2 11.7 15.7 
COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC.$885.1 $618.9 $622.9 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.
Consolidated Balance Sheets
December 31
 20212020
ASSETS(millions, except share amounts)
CURRENT ASSETS: 
Cash and cash equivalents$26.2 $144.9 
Receivables, net of allowance for credit losses of $32.9 and $19.3, respectively221.6 273.9 
Accounts receivable pledged as collateral319.0 360.0 
Fuel inventory and supplies566.7 504.5 
Income taxes receivable28.0 62.9 
Regulatory assets424.1 206.2 
Prepaid expenses49.3 48.2 
Other assets75.4 23.7 
Total Current Assets1,710.3 1,624.3 
PROPERTY, PLANT AND EQUIPMENT, NET21,002.6 19,951.0 
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET147.8 154.9 
OTHER ASSETS:  
Regulatory assets1,991.1 1,868.2 
Nuclear decommissioning trust fund768.7 652.1 
Goodwill2,336.6 2,336.6 
Other563.4 527.7 
Total Other Assets5,659.8 5,384.6 
TOTAL ASSETS$28,520.5 $27,114.8 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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GREAT PLAINS ENERGY INCORPORATED
Consolidated Balance Sheets
    
 December 31
 2017 2016
ASSETS(millions, except share amounts)
Current Assets       
Cash and cash equivalents $1,125.4
   $1,293.1
 
Time deposit —
   1,000.0
 
Receivables, net 151.7
   166.0
 
Accounts receivable pledged as collateral 180.0
   172.4
 
Fuel inventories, at average cost 103.2
   108.8
 
Materials and supplies, at average cost 171.2
   162.2
 
Deferred refueling outage costs 6.8
   22.3
 
Interest rate derivative instruments 91.4
   79.3
 
Prepaid expenses and other assets 33.4
   55.4
 
Total 1,863.1
   3,059.5
 
Utility Plant, at Original Cost  
    
 
Electric 13,674.1
   13,597.7
 
Less - accumulated depreciation 5,224.0
   5,106.9
 
Net utility plant in service 8,450.1
   8,490.8
 
Construction work in progress 458.6
   403.9
 
Plant to be retired, net 143.6
   —
 
Nuclear fuel, net of amortization of $204.2 and $172.1 72.4
   62.0
 
Total 9,124.7
   8,956.7
 
Investments and Other Assets  
    
 
Nuclear decommissioning trust fund 258.4
   222.9
 
Regulatory assets 913.9
   1,048.0
 
Goodwill 169.0
   169.0
 
Other 128.8
   113.9
 
Total 1,470.1
   1,553.8
 
Total $12,457.9
   $13,570.0
 
EVERGY, INC.
Consolidated Balance Sheets
December 31
 20212020
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:  
Current maturities of long-term debt$389.3 $436.4 
Current maturities of long-term debt of variable interest entities— 18.8 
Notes payable and commercial paper1,159.3 315.0 
Collateralized note payable319.0 360.0 
Accounts payable639.7 654.0 
Accrued taxes150.4 143.8 
Accrued interest118.8 123.4 
Regulatory liabilities70.7 26.1 
Asset retirement obligations19.5 40.2 
Accrued compensation and benefits51.6 55.5 
Other184.6 182.6 
Total Current Liabilities3,102.9 2,355.8 
LONG-TERM LIABILITIES:  
Long-term debt, net9,297.9 9,190.9 
Deferred income taxes1,861.9 1,664.8 
Unamortized investment tax credits181.4 186.7 
Regulatory liabilities2,705.0 2,638.8 
Pension and post-retirement liability879.1 1,149.4 
Asset retirement obligations940.6 901.7 
Other310.0 308.2 
Total Long-Term Liabilities16,175.9 16,040.5 
Commitments and Contingencies (Note 14)00
EQUITY:
Evergy, Inc. Shareholders' Equity:
Common stock - 600,000,000 shares authorized, without par value
229,299,900 and 226,836,670 shares issued, stated value
7,205.5 7,080.0 
Retained earnings2,082.9 1,702.8 
Accumulated other comprehensive loss(44.0)(49.4)
Total Evergy, Inc. Shareholders' Equity9,244.4 8,733.4 
Noncontrolling Interests(2.7)(14.9)
Total Equity9,241.7 8,718.5 
TOTAL LIABILITIES AND EQUITY$28,520.5 $27,114.8 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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GREAT PLAINS ENERGY INCORPORATED
Consolidated Balance Sheets
 
 December 31
 2017 2016
LIABILITIES AND CAPITALIZATION(millions, except share amounts)
Current Liabilities       
Notes payable $11.0
   $—
 
Collateralized note payable 180.0
   172.4
 
Commercial paper 376.8
   334.8
 
Current maturities of long-term debt 351.1
   382.1
 
Accounts payable 340.0
   323.7
 
Accrued taxes 35.1
   33.3
 
Accrued interest 42.8
   50.8
 
Accrued compensation and benefits 50.1
   52.1
 
Pension and post-retirement liability 2.7
   3.0
 
Other 59.2
   32.6
 
Total 1,448.8
   1,384.8
 
Deferred Credits and Other Liabilities  
    
 
Deferred income taxes 621.7
   1,329.7
 
Deferred tax credits 124.8
   126.2
 
Asset retirement obligations 262.5
   316.0
 
Pension and post-retirement liability 535.0
   488.3
 
Regulatory liabilities 1,106.3
   309.9
 
Other 81.4
   87.9
 
Total 2,731.7
   2,658.0
 
Capitalization  
    
 
Great Plains Energy shareholders' equity  
    
 
Common stock - 600,000,000 shares authorized without par value
215,801,723 and 215,479,105 shares issued, stated value		 4,233.1
   4,217.0
 
Preference stock - 11,000,000 shares authorized without par value
     7.00% Series B Mandatory Convertible Preferred Stock
       $1,000 per share liquidation preference, 0 and 862,500 shares issued and outstanding
 —
   836.2
 
Retained earnings 737.9
   1,119.2
 
Treasury stock - 137,589 and 128,087 shares, at cost (4.0)   (3.8) 
Accumulated other comprehensive loss (2.2)   (6.6) 
Total shareholders' equity 4,964.8
   6,162.0
 
Long-term debt (Note 12) 3,312.6
   3,365.2
 
Total 8,277.4
   9,527.2
 
Commitments and Contingencies (Note 15) 

   

 
Total $12,457.9
   $13,570.0
 
EVERGY, INC.
Consolidated Statements of Cash Flows
Year Ended December 31202120202019
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$891.9 $630.0 $685.6 
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization896.4 880.1 861.7 
Amortization of nuclear fuel51.4 58.3 51.4 
Amortization of deferred refueling outage25.1 25.4 25.5 
Amortization of corporate-owned life insurance24.1 20.1 19.8 
Non-cash compensation15.6 16.0 16.3 
Net deferred income taxes and credits102.2 126.9 121.5 
Allowance for equity funds used during construction(29.4)(17.2)(2.2)
Payments for asset retirement obligations(22.6)(18.4)(17.8)
Equity in earnings of equity method investees, net of income taxes(8.2)(8.3)(9.8)
Income from corporate-owned life insurance(14.2)(8.2)(29.6)
Other(13.8)0.8 (3.2)
Changes in working capital items:
Accounts receivable69.9 (4.9)(23.1)
Accounts receivable pledged as collateral41.0 (21.0)26.0 
Fuel inventory and supplies(61.6)(22.3)29.9 
Prepaid expenses and other current assets(299.8)16.9 43.4 
Accounts payable(55.1)134.3 16.9 
Accrued taxes41.4 6.7 (8.2)
Other current liabilities(19.4)(98.9)(59.4)
Changes in other assets(251.5)119.5 79.8 
Changes in other liabilities(31.7)(82.0)(75.5)
Cash Flows from Operating Activities1,351.7 1,753.8 1,749.0 
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:  
Additions to property, plant and equipment(1,972.5)(1,560.3)(1,210.1)
Purchase of securities - trusts(158.2)(65.6)(55.8)
Sale of securities - trusts115.7 56.5 47.3 
Investment in corporate-owned life insurance(14.2)(19.1)(18.3)
Proceeds from investment in corporate-owned life insurance77.0 65.9 161.7 
Other investing activities38.4 (11.1)(5.1)
Cash Flows used in Investing Activities(1,913.8)(1,533.7)(1,080.3)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:  
Short-term debt, net840.5 (246.9)(176.7)
Proceeds from term loan facility— — 1,000.0 
Repayment of term loan facility— — (1,000.0)
Collateralized short-term borrowings, net(41.0)21.0 (26.0)
Issuance of common stock112.5 — — 
Proceeds from long-term debt497.3 888.8 2,372.7 
Retirements of long-term debt(432.0)(251.1)(701.1)
Retirements of long-term debt of variable interest entities(18.8)(32.3)(30.3)
Payment for settlement of interest rate swap accounted for as a cash flow hedge— — (69.8)
Borrowings against cash surrender value of corporate-owned life insurance54.4 55.5 59.4 
Repayment of borrowings against cash surrender value of corporate-owned life insurance(62.3)(54.8)(127.5)
Cash dividends paid(497.9)(465.0)(462.5)
Repurchase of common stock under repurchase plan— — (1,628.7)
Distributions to shareholders of noncontrolling interests— — (8.6)
Other financing activities(9.3)(13.6)(6.7)
Cash Flows from (used in) Financing Activities443.4 (98.4)(805.8)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(118.7)121.7 (137.1)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period144.9 23.2 160.3 
End of period$26.2 $144.9 $23.2 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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GREAT PLAINS ENERGY INCORPORATED
Consolidated Statements of Cash Flows
 
         
Year Ended December 312017  2016  2015 
Cash Flows from Operating Activities(millions)
Net income (loss)$(106.2)  $290.0
  $213.0
 
Adjustments to reconcile income (loss) to net cash from operating activities: 
   
    
Depreciation and amortization371.1
  344.8
  330.4
 
Amortization of: 
   
    
Nuclear fuel32.1
  26.6
  26.8
 
Other63.9
  77.5
  47.7
 
Deferred income taxes, net235.4
  170.1
  124.9
 
Investment tax credit amortization(1.4)  (1.4)  (1.4) 
Income from equity investments, net of income taxes(2.5)  (2.0)  (1.2) 
Fair value impacts of interest rate swaps(12.1)  (79.3)  —
 
Loss on Series B Preferred Stock dividend make-whole provisions (Note 14)124.8
  —
  —
 
Loss on extinguishment of debt (Note 12)82.8
  —
  —
 
Other operating activities (Note 3)22.6
  (42.3)  12.9
 
Net cash from operating activities810.5
  784.0
  753.1
 
Cash Flows from Investing Activities 
   
    
Utility capital expenditures(573.5)  (609.4)  (677.1) 
Allowance for borrowed funds used during construction(7.4)  (6.8)  (5.8) 
Purchases of nuclear decommissioning trust investments(33.6)  (31.9)  (50.9) 
Proceeds from nuclear decommissioning trust investments30.3
  28.6
  47.6
 
Purchase of time deposit—
  (1,000.0)  —
 
Proceeds from time deposit1,000.0
  —
  —
 
Other investing activities(45.6)  (64.0)  (48.2) 
Net cash from investing activities370.2
  (1,683.5)  (734.4) 
Cash Flows from Financing Activities 
   
    
Issuance of common stock2.9
  1,603.7
  3.0
 
Issuance of preferred stock—
  862.5
  —
 
Issuance of long-term debt4,591.1
  —
  348.8
 
Issuance of long-term debt from remarketing—
  —
  146.5
 
Repayment of long-term debt from remarketing—
  —
  (146.5) 
Issuance fees(38.3)  (143.6)  (3.0) 
Repayment of long-term debt, including redemption premium(4,725.1)  (1.1)  (87.0) 
Net change in short-term borrowings53.0
  100.8
  (128.3) 
Net change in collateralized short-term borrowings7.6
  (2.6)  4.0
 
Dividends paid(272.0)  (194.0)  (155.5) 
Redemption of preferred stock(963.4)  (40.1)  —
 
Other financing activities(4.2)  (4.3)  (2.4) 
Net cash from financing activities(1,348.4)  2,181.3
  (20.4) 
Net Change in Cash and Cash Equivalents(167.7)  1,281.8
  (1.7) 
Cash and Cash Equivalents at Beginning of Year1,293.1
  11.3
  13.0
 
Cash and Cash Equivalents at End of Year$1,125.4
  $1,293.1
  $11.3
 
EVERGY, INC.
Consolidated Statements of Changes in Equity
Evergy, Inc. Shareholders
Common stock sharesCommon stockRetained earningsAOCINon-controlling interestsTotal equity
(millions, except share amounts)
Balance as of December 31, 2018255,326,252 $8,685.2 $1,346.0 $(3.0)$(37.5)$9,990.7 
Net income— — 669.9 — 15.7 685.6 
Issuance of stock compensation and reinvested dividends, net of tax withholding111,849 (2.4)— — — (2.4)
Dividends declared on common stock ($1.93 per share)— — (462.5)— — (462.5)
Dividend equivalents declared— — (1.9)— — (1.9)
Stock compensation expense— 16.3 — — — 16.3 
Repurchase of common stock under repurchase plan(28,796,658)(1,628.7)— — — (1,628.7)
Consolidation of noncontrolling interests— — — — 3.8 3.8 
Distributions to shareholders of noncontrolling interests— — — — (8.6)(8.6)
Derivative hedging activity, net of tax— — — (46.4)— (46.4)
Change in unrecognized pension expense, net of tax— — — (0.6)— (0.6)
Balance as of December 31, 2019226,641,443 7,070.4 1,551.5 (50.0)(26.6)8,545.3 
Net income— — 618.3 — 11.7 630.0 
Issuance of stock compensation and reinvested dividends, net of tax withholding195,227 (5.9)— — — (5.9)
Dividends declared on common stock ($2.05 per share)— — (465.0)— — (465.0)
Dividend equivalents declared— — (2.0)— — (2.0)
Stock compensation expense— 16.0 — — — 16.0 
Derivative hedging activity, net of tax— — — 3.0 — 3.0 
Change in unrecognized pension expense, net of tax— — — (2.4)— (2.4)
Other— (0.5)— — — (0.5)
Balance as of December 31, 2020226,836,670 7,080.0 1,702.8 (49.4)(14.9)8,718.5 
Net income— — 879.7 — 12.2 891.9 
Issuance of stock, net of issuance costs2,269,447 112.5 — — — 112.5 
Issuance of stock compensation and reinvested dividends, net of tax withholding139,729 (2.4)— — — (2.4)
Issuance of restricted common stock54,054 2.9 — — — 2.9 
Dividends declared on common stock ($2.178 per share)— — (497.9)— — (497.9)
Dividend equivalents declared— — (1.7)— — (1.7)
Stock compensation expense— 13.8 — — — 13.8 
Unearned compensation
Issuance of restricted common stock— (2.9)— — — (2.9)
Compensation expense recognized— 1.8 — — — 1.8 
Derivative hedging activity, net of tax— — — 5.5 — 5.5 
Change in unrecognized pension expense, net of tax— — — (0.1)— (0.1)
Other— (0.2)— — — (0.2)
Balance as of December 31, 2021229,299,900 $7,205.5 $2,082.9 $(44.0)$(2.7)$9,241.7 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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GREAT PLAINS ENERGY INCORPORATED
Consolidated Statements of Shareholders' Equity
 
      
Year Ended December 312017 20162015
 Shares Amount Shares AmountSharesAmount
Common Stock(millions, except share amounts)
Beginning balance215,479,105
 $4,217.0
 154,504,900
 $2,646.7
154,254,037
$2,639.3
Issuance of common stock322,618
 11.7
 60,974,205
 1,565.3
250,863
6.6
Equity compensation expense, net of forfeitures  5.4
  
 4.3
 1.9
Unearned Compensation 
  
  
  
  
Issuance of restricted common stock 
 (2.3)  
 (2.8) (2.4)
Forfeiture of restricted common stock  0.7
   —
 0.5
Compensation expense recognized 
 2.1
  
 2.7
 1.8
Other 
 (1.5)  
 0.8
 (1.0)
Ending balance215,801,723
 4,233.1
 215,479,105
 4,217.0
154,504,900
2,646.7
Cumulative Preferred Stock         
Beginning balance—
 —
 390,000
 39.0
390,000
39.0
Redemption of cumulative preferred stock—
 —
 (390,000) (39.0)—
—
Ending balance—
 —
 —
 —
390,000
39.0
Preference Stock         
Beginning balance862,500
 836.2
 —
 —
—
—
Issuance of Series B Preferred Stock—
 —
 862,500
 836.2
—
—
Redemption of Series B Preferred Stock(862,500) (836.2) —
 —
—
—
Ending balance—
 —
 862,500
 836.2
—
—
Retained Earnings 
  
  
  
  
Beginning balance 
 1,119.2
  
 1,024.4
 967.8
Net income (loss) 
 (106.2)  
 290.0
 213.0
Redemption premium on preferred stock  (2.4)   (0.6) —
Dividends: 
  
  
  
  
Common stock ($1.10, $1.0625 and $0.9975 per share) (237.1)  
 (181.0) (153.9)
Preferred stock - at required rates 
 (34.9)  
 (13.0) (1.6)
Performance shares 
 (0.7)  
 (0.6) (0.9)
Ending balance 
 737.9
  
 1,119.2
 1,024.4
Treasury Stock 
  
  
  
  
Beginning balance(128,087) (3.8) (101,229) (2.6)(91,281)(2.3)
Treasury shares acquired(149,544) (4.3) (138,021) (4.1)(76,468)(2.0)
Treasury shares reissued140,042
 4.1
 111,163
 2.9
66,520
1.7
Ending balance(137,589) (4.0) (128,087) (3.8)(101,229)(2.6)
Accumulated Other Comprehensive Income (Loss)  
  
  
  
Beginning balance 
 (6.6)  
 (12.0) (18.7)
Derivative hedging activity, net of tax 
 4.9
  
 5.6
 5.7
Change in unrecognized pension expense, net of tax (0.5)  
 (0.2) 1.0
Ending balance 
 (2.2)  
 (6.6) (12.0)
Total Great Plains Energy Shareholders' Equity $4,964.8
  
 $6,162.0
 $3,695.5
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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KANSAS CITY POWER & LIGHT COMPANY
Consolidated Statements of Comprehensive Income
     
Year Ended December 31 2017 2016 2015
Operating Revenues (millions)
Electric revenues $1,890.7
 $1,875.4
 $1,713.8
Operating Expenses  
  
  
Fuel and purchased power 412.1
 372.7
 397.1
Transmission 68.6
 56.4
 58.4
Operating and maintenance expenses 506.4
 525.8
 494.2
Costs to achieve the anticipated merger with Westar Energy, Inc. 10.5
 10.9
 —
Depreciation and amortization 266.3
 247.5
 235.7
General taxes 182.5
 177.5
 163.5
Other 0.6
 2.5
 0.9
Total 1,447.0
 1,393.3
 1,349.8
Operating income 443.7
 482.1
 364.0
Other Income (Expense)      
Non-operating income 11.2
 11.8
 8.4
Non-operating expenses (8.1) (7.6) (7.2)
Total 3.1
 4.2
 1.2
Interest charges (138.8) (139.4) (135.6)
Income before income tax expense 308.0
 346.9
 229.6
Income tax expense (128.2) (121.9) (76.8)
Net income $179.8
 $225.0
 $152.8
Comprehensive Income  
  
  
Net income $179.8
 $225.0
 $152.8
Other comprehensive income  
  
  
Derivative hedging activity  
  
  
Reclassification to expenses, net of tax 4.6
 5.4
 5.3
Derivative hedging activity, net of tax 4.6
 5.4
 5.3
Total other comprehensive income 4.6
 5.4
 5.3
Comprehensive income $184.4
 $230.4
 $158.1
EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Income
Year Ended December 31202120202019
(millions)
OPERATING REVENUES$2,847.3 $2,418.1 $2,507.4 
OPERATING EXPENSES:
Fuel and purchased power638.7 427.6 493.0 
SPP network transmission costs290.4 263.2 251.3 
Operating and maintenance530.8 513.6 530.5 
Depreciation and amortization467.2 453.1 443.8 
Taxes other than income tax203.9 193.3 192.3 
Total Operating Expenses2,131.0 1,850.8 1,910.9 
INCOME FROM OPERATIONS716.3 567.3 596.5 
OTHER INCOME (EXPENSE):
Investment earnings1.3 4.8 4.1 
Other income27.0 21.4 23.1 
Other expense(35.9)(38.9)(40.1)
Total Other Expense, Net(7.6)(12.7)(12.9)
Interest expense160.3 167.6 177.0 
INCOME BEFORE INCOME TAXES548.4 387.0 406.6 
Income tax expense51.7 155.8 52.1 
Equity in earnings of equity method investees, net of income taxes4.0 4.6 4.6 
NET INCOME500.7 235.8 359.1 
Less: Net income attributable to noncontrolling interests12.2 11.7 15.7 
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC.$488.5 $224.1 $343.4 
The disclosures regarding KCP&LEvergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.


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KANSAS CITY POWER & LIGHT COMPANY
Consolidated Balance Sheets
 
 December 31
 20172016
ASSETS(millions, except share amounts)
Current Assets       
Cash and cash equivalents $2.2
   $4.5
 
Receivables, net 106.3
   139.1
 
Related party receivables 84.7
   67.2
 
Accounts receivable pledged as collateral 130.0
   110.0
 
Fuel inventories, at average cost 71.0
   72.9
 
Materials and supplies, at average cost 126.0
   118.9
 
Deferred refueling outage costs 6.8
   22.3
 
Refundable income taxes 5.4
   12.7
 
Prepaid expenses and other assets 27.6
   27.9
 
Total 560.0
   575.5
 
Utility Plant, at Original Cost  
    
 
Electric 10,213.2
   9,925.1
 
Less - accumulated depreciation 4,070.3
   3,858.4
 
Net utility plant in service 6,142.9
   6,066.7
 
Construction work in progress 350.3
   300.4
 
Nuclear fuel, net of amortization of $204.2 and $172.1 72.4
   62.0
 
Total 6,565.6
   6,429.1
 
Investments and Other Assets  
    
 
Nuclear decommissioning trust fund 258.4
   222.9
 
Regulatory assets 691.9
   801.8
 
Other 48.0
   29.1
 
Total 998.3
   1,053.8
 
Total $8,123.9
   $8,058.4
 
EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
December 31
 20212020
ASSETS(millions, except share amounts)
CURRENT ASSETS: 
Cash and cash equivalents$3.1 $28.7 
Receivables, net of allowance for credit losses of $13.0 and $7.5, respectively201.6 218.9 
Related party receivables21.2 6.7 
Accounts receivable pledged as collateral153.0 180.0 
Fuel inventory and supplies283.2 276.4 
Income taxes receivable9.6 25.3 
Regulatory assets257.3 96.2 
Prepaid expenses and other assets41.0 27.4 
Total Current Assets970.0 859.6 
PROPERTY, PLANT AND EQUIPMENT, NET10,548.9 10,193.6 
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET147.8 154.9 
OTHER ASSETS:  
Regulatory assets753.6 800.1 
Nuclear decommissioning trust fund368.4 309.8 
Other286.9 271.1 
Total Other Assets1,408.9 1,381.0 
TOTAL ASSETS$13,075.6 $12,589.1 
The disclosures regarding KCP&LEvergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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KANSAS CITY POWER & LIGHT COMPANY
Consolidated Balance Sheets
    
 December 31
 2017 2016
LIABILITIES AND CAPITALIZATION(millions, except share amounts)
Current Liabilities       
Collateralized note payable $130.0
   $110.0
 
Commercial paper 167.5
   132.9
 
Current maturities of long-term debt 350.0
   281.0
 
Accounts payable 249.0
   231.6
 
Accrued taxes 29.0
   27.0
 
Accrued interest 32.4
   32.4
 
Accrued compensation and benefits 50.1
   52.1
 
Pension and post-retirement liability 1.4
   1.6
 
Other 46.8
   11.4
 
Total 1,056.2
   880.0
 
Deferred Credits and Other Liabilities  
    
 
Deferred income taxes 616.1
   1,228.3
 
Deferred tax credits 121.8
   122.8
 
Asset retirement obligations 231.4
   278.0
 
Pension and post-retirement liability 512.2
   465.8
 
Regulatory liabilities 779.2
   187.4
 
Other 61.6
   70.6
 
Total 2,322.3
   2,352.9
 
Capitalization  
    
 
Common shareholder's equity  
    
 
Common stock - 1,000 shares authorized without par value  
    
 
1 share issued, stated value 1,563.1
   1,563.1
 
Retained earnings 949.7
   982.6
 
Accumulated other comprehensive income (loss) 0.4
   (4.2) 
Total 2,513.2
   2,541.5
 
Long-term debt (Note 12) 2,232.2
   2,284.0
 
Total 4,745.4
   4,825.5
 
Commitments and Contingencies (Note 15) 

   

 
Total $8,123.9
   $8,058.4
 
EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
December 31
 20212020
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:  
Current maturities of long-term debt of variable interest entities$— $18.8 
Notes payable and commercial paper406.0 50.0 
Collateralized note payable153.0 180.0 
Accounts payable232.2 280.1 
Related party payables27.5 21.7 
Accrued taxes106.1 101.5 
Accrued interest71.5 72.8 
Regulatory liabilities12.8 11.9 
Asset retirement obligations7.3 11.2 
Accrued compensation and benefits13.8 11.1 
Other126.3 133.5 
Total Current Liabilities1,156.5 892.6 
LONG-TERM LIABILITIES:  
Long-term debt, net3,934.2 3,931.5 
Deferred income taxes867.9 824.5 
Unamortized investment tax credits61.7 65.7 
Regulatory liabilities1,469.4 1,461.0 
Pension and post-retirement liability435.6 560.3 
Asset retirement obligations436.6 416.0 
Other172.2 156.7 
Total Long-Term Liabilities7,377.6 7,415.7 
Commitments and Contingencies (Note 14)00
EQUITY: 
Evergy Kansas Central, Inc. Shareholder's Equity:  
Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued2,737.6 2,737.6 
Retained earnings1,806.6 1,558.1 
Total Evergy Kansas Central, Inc. Shareholder's Equity4,544.2 4,295.7 
Noncontrolling Interests(2.7)(14.9)
Total Equity4,541.5 4,280.8 
TOTAL LIABILITIES AND EQUITY$13,075.6 $12,589.1 
The disclosures regarding KCP&LEvergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.


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KANSAS CITY POWER & LIGHT COMPANY
Consolidated Statements of Cash Flows
 
         
Year Ended December 31 2017  2016  2015
Cash Flows from Operating Activities(millions)
Net income $179.8
  $225.0
  $152.8
Adjustments to reconcile income to net cash from operating activities:     
   
Depreciation and amortization 266.3
  247.5
  235.7
Amortization of:  
   
   
Nuclear fuel 32.1
  26.6
  26.8
Other 30.2
  33.9
  29.1
Deferred income taxes, net 83.5
  93.4
  99.4
Investment tax credit amortization (1.0)  (1.0)  (1.0)
Other operating activities (Note 3) 20.0
  (2.1)  (61.5)
Net cash from operating activities 610.9
  623.3
  481.3
Cash Flows from Investing Activities  
   
   
Utility capital expenditures (437.7)  (418.8)  (518.3)
Allowance for borrowed funds used during construction (6.1)  (5.6)  (3.9)
Purchases of nuclear decommissioning trust investments (33.6)  (31.9)  (50.9)
Proceeds from nuclear decommissioning trust investments 30.3
  28.6
  47.6
Other investing activities (23.9)  (23.8)  (25.5)
Net cash from investing activities (471.0)  (451.5)  (551.0)
Cash Flows from Financing Activities  
   
   
Issuance of long-term debt 299.2
  —
  348.8
Issuance of long-term debt from remarketing —
  —
  146.5
Repayment of long-term debt from remarketing —
  —
  (146.5)
Issuance fees (3.0)  (0.2)  (3.0)
Repayment of long-term debt (281.0)  —
  (85.9)
Net change in short-term borrowings 34.6
  (47.4)  (178.0)
Net change in collateralized short-term borrowings 20.0
  —
  —
Net money pool borrowings —
  —
  (12.6)
Dividends paid to Great Plains Energy (212.0)  (122.0)  —
Net cash from financing activities (142.2)  (169.6)  69.3
Net Change in Cash and Cash Equivalents (2.3)  2.2
  (0.4)
Cash and Cash Equivalents at Beginning of Year 4.5
  2.3
  2.7
Cash and Cash Equivalents at End of Year $2.2
  $4.5
  $2.3
EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Cash Flows
Year Ended December 31202120202019
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$500.7 $235.8 $359.1 
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization467.2 453.1 443.8 
Amortization of nuclear fuel25.6 28.8 25.6 
Amortization of deferred refueling outage12.6 12.7 12.8 
Amortization of corporate-owned life insurance24.1 20.1 19.8 
Net deferred income taxes and credits(1.4)146.6 11.6 
Allowance for equity funds used during construction(14.9)(9.1)— 
Payments for asset retirement obligations(6.2)(2.2)(14.8)
Equity in earnings of equity method investees, net of income taxes(4.0)(4.6)(4.6)
Income from corporate-owned life insurance(14.2)(8.2)(29.0)
Other(5.5)(5.5)(5.5)
Changes in working capital items:
Accounts receivable23.5 (33.8)(65.9)
Accounts receivable pledged as collateral27.0 (9.0)14.0 
Fuel inventory and supplies(6.2)(9.4)10.9 
Prepaid expenses and other current assets(196.1)10.0 (11.7)
Accounts payable(39.1)111.6 6.9 
Accrued taxes20.3 (6.7)20.2 
Other current liabilities(55.0)(95.5)12.1 
Changes in other assets(48.3)42.9 47.0 
Changes in other liabilities(10.0)(30.2)(29.5)
Cash Flows from Operating Activities700.1 847.4 822.8 
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:  
Additions to property, plant and equipment(835.7)(719.0)(596.1)
Purchase of securities - trusts(129.9)(20.2)(21.8)
Sale of securities - trusts97.5 18.6 21.6 
Investment in corporate-owned life insurance(14.2)(18.3)(17.6)
Proceeds from investment in corporate-owned life insurance77.0 63.8 158.9 
Other investing activities26.5 (2.2)(3.2)
Cash Flows used in Investing Activities(778.8)(677.3)(458.2)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:  
Short-term debt, net354.0 (199.2)(162.5)
Collateralized short-term debt, net(27.0)9.0 (14.0)
Proceeds from long-term debt— 492.7 294.7 
Retirements of long-term debt— (250.0)(300.0)
Retirements of long-term debt of variable interest entities(18.8)(32.3)(30.3)
Borrowings against cash surrender value of corporate-owned life insurance51.4 52.7 56.5 
Repayment of borrowings against cash surrender value of corporate-owned life insurance(62.3)(53.7)(125.4)
Cash dividends paid(240.0)(160.0)(110.0)
Distributions to shareholders of noncontrolling interests— — (8.6)
Other financing activities(4.2)(5.8)(4.3)
Cash Flows from (used in) Financing Activities53.1 (146.6)(403.9)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(25.6)23.5 (39.3)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period28.7 5.2 44.5 
End of period$3.1 $28.7 $5.2 
The disclosures regarding KCP&LEvergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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KANSAS CITY POWER & LIGHT COMPANY
Consolidated Statements of Common Shareholder's Equity
    
        
Year Ended December 312017 2016 2015
 Shares Amount Shares Amount Shares Amount
 (millions, except share amounts)
Common Stock1
 $1,563.1
 1
 $1,563.1
 1
 $1,563.1
Retained Earnings 
  
  
  
    
Beginning balance 
 982.6
  
 879.6
   726.8
Net income 
 179.8
  
 225.0
   152.8
Cumulative effect of adoption of ASU 2016-09 (Note 1)  (0.7)   —
   —
Dividends: 
  
  
  
    
Common stock held by Great Plains Energy 
 (212.0)  
 (122.0)   —
Ending balance 
 949.7
  
 982.6
   879.6
Accumulated Other Comprehensive Income (Loss)   
  
  
    
Beginning balance 
 (4.2)  
 (9.6)   (14.9)
Derivative hedging activity, net of tax 
 4.6
  
 5.4
   5.3
Ending balance 
 0.4
  
 (4.2)   (9.6)
Total Common Shareholder's Equity 
 $2,513.2
  
 $2,541.5
   $2,433.1
EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Changes in Equity
Evergy Kansas Central, Inc. Shareholder
Common stock sharesCommon stockRetained earningsNon-controlling interestsTotal equity
(millions, except share amounts)
Balance as of December 31, 20181 $2,737.6 $1,260.6 $(37.5)$3,960.7 
Net income— — 343.4 15.7 359.1 
Dividends declared on common stock— — (110.0)— (110.0)
Consolidation of noncontrolling interests— — — 3.8 3.8 
Distributions to shareholders of noncontrolling interests— — — (8.6)(8.6)
Balance as of December 31, 20191 2,737.6 1,494.0 (26.6)4,205.0 
Net income— — 224.1 11.7 235.8 
Dividends declared on common stock— — (160.0)— (160.0)
Balance as of December 31, 20201 2,737.6 1,558.1 (14.9)4,280.8 
Net income— — 488.5 12.2 500.7 
Dividends declared on common stock— — (240.0)— (240.0)
Balance as of December 31, 20211 $2,737.6 $1,806.6 $(2.7)$4,541.5 
The disclosures regarding KCP&LEvergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.


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EVERGY METRO, INC.
Consolidated Statements of Comprehensive Income
Year Ended December 31202120202019
(millions)
OPERATING REVENUES$1,913.7 $1,705.6 $1,806.5 
OPERATING EXPENSES:  
Fuel and purchased power613.5 416.1 482.1 
Operating and maintenance365.4 407.5 451.9 
Depreciation and amortization321.0 326.1 318.4 
Taxes other than income tax126.2 121.6 127.6 
Total Operating Expenses1,426.1 1,271.3 1,380.0 
INCOME FROM OPERATIONS487.6 434.3 426.5 
OTHER INCOME (EXPENSE):
Investment earnings0.2 1.4 2.4 
Other income16.1 9.2 3.2 
Other expense(29.4)(25.5)(21.4)
Total Other Expense, Net(13.1)(14.9)(15.8)
Interest expense109.8 113.6 119.8 
INCOME BEFORE INCOME TAXES364.7 305.8 290.9 
Income tax expense52.4 7.1 35.7 
NET INCOME$312.3 $298.7 $255.2 
COMPREHENSIVE INCOME
NET INCOME$312.3 $298.7 $255.2 
OTHER COMPREHENSIVE INCOME:
Derivative hedging activity
Reclassification to expenses, net of tax(0.3)(0.2)0.7 
Derivative hedging activity, net of tax(0.3)(0.2)0.7 
Total other comprehensive income (loss)(0.3)(0.2)0.7 
COMPREHENSIVE INCOME$312.0 $298.5 $255.9 
GREAT PLAINS ENERGY INCORPORATED
KANSAS CITY POWER & LIGHT COMPANY
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY METRO, INC.
Consolidated Balance Sheets
December 31
 20212020
ASSETS(millions, except share amounts)
CURRENT ASSETS: 
Cash and cash equivalents$2.1 $71.6 
Receivables, net of allowance for credit losses of $13.3 and $8.1, respectively31.0 45.0 
Related party receivables277.8 225.6 
Accounts receivable pledged as collateral116.0 130.0 
Fuel inventory and supplies211.0 170.4 
Income taxes receivable— 3.2 
Regulatory assets86.3 82.0 
Prepaid expenses22.6 22.9 
Other assets19.7 14.2 
Total Current Assets766.5 764.9 
PROPERTY, PLANT AND EQUIPMENT, NET7,474.9 7,141.2 
OTHER ASSETS:  
Regulatory assets410.7 533.5 
Nuclear decommissioning trust fund400.3 342.3 
Other104.4 133.9 
Total Other Assets915.4 1,009.7 
TOTAL ASSETS$9,156.8 $8,915.8 
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY METRO, INC.
Consolidated Balance Sheets
December 31
 20212020
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:  
Collateralized note payable$116.0 $130.0 
Accounts payable305.2 280.1 
Related party payables0.1 0.1 
Accrued taxes38.6 34.9 
Accrued interest26.4 30.0 
Regulatory liabilities54.6 8.0 
Asset retirement obligations11.0 21.2 
Accrued compensation and benefits37.8 44.4 
Other48.8 37.3 
Total Current Liabilities638.5 586.0 
LONG-TERM LIABILITIES:  
Long-term debt, net2,925.0 2,923.0 
Deferred income taxes606.1 558.8 
Unamortized investment tax credits117.2 118.5 
Regulatory liabilities954.2 899.4 
Pension and post-retirement liability420.9 565.1 
Asset retirement obligations370.0 357.7 
Other103.7 148.1 
Total Long-Term Liabilities5,497.1 5,570.6 
Commitments and Contingencies (Note 14)00
EQUITY:  
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value1,563.1 1,563.1 
Retained earnings1,453.8 1,191.5 
Accumulated other comprehensive income4.3 4.6 
Total Equity3,021.2 2,759.2 
TOTAL LIABILITIES AND EQUITY$9,156.8 $8,915.8 
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY METRO, INC.
Consolidated Statements of Cash Flows
Year Ended December 31202120202019
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$312.3 $298.7 $255.2 
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization321.0 326.1 318.4 
Amortization of nuclear fuel25.8 29.5 25.9 
Amortization of deferred refueling outage12.6 12.7 12.8 
Net deferred income taxes and credits10.0 (3.5)(30.6)
Allowance for equity funds used during construction(12.6)(8.0)(2.2)
Payments for asset retirement obligations(7.4)(7.5)(2.5)
Other(0.4)(0.4)0.3 
Changes in working capital items:
Accounts receivable43.2 (13.2)37.0 
Accounts receivable pledged as collateral14.0 (12.0)12.0 
Fuel inventory and supplies(40.6)(7.4)14.6 
Prepaid expenses and other current assets(16.3)(7.9)28.0 
Accounts payable(1.1)24.6 9.1 
Accrued taxes6.9 1.6 (9.6)
Other current liabilities44.0 2.4 (53.2)
Changes in other assets61.5 59.1 33.7 
Changes in other liabilities(38.7)(47.3)(34.7)
Cash Flows from Operating Activities734.2 647.5 614.2 
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:  
Additions to property, plant and equipment(682.9)(565.4)(445.0)
Purchase of securities - trusts(28.3)(45.4)(34.0)
Sale of securities - trusts18.2 37.9 25.7 
Net money pool lending(55.0)(100.0)— 
Other investing activities6.8 4.6 9.0 
Cash Flows used in Investing Activities(741.2)(668.3)(444.3)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:  
Short-term debt, net— (199.3)22.4 
Collateralized short-term debt, net(14.0)12.0 (12.0)
Proceeds from long-term debt— 396.2 393.2 
Retirements of long-term debt— — (400.0)
Cash dividends paid(50.0)(120.0)(175.0)
Other financing activities1.5 1.5 0.9 
Cash Flows from (used in) Financing Activities(62.5)90.4 (170.5)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(69.5)69.6 (0.6)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period71.6 2.0 2.6 
End of period$2.1 $71.6 $2.0 
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY METRO, INC
Consolidated Statements of Changes in Equity
 Common stock shares Common Stock Retained earnings AOCI - Net gains (losses) on cash flow hedges Total Equity
 (millions, except share amounts)
Balance as of December 31, 20181 $1,563.1 $932.6 $4.1 $2,499.8 
Net income— — 255.2 — 255.2 
Dividends declared on common stock— — (175.0)— (175.0)
Derivative hedging activity, net of tax— — — 0.7 0.7 
Balance as of December 31, 20191 1,563.1 1,012.8 4.8 2,580.7 
Net income— — 298.7 — 298.7 
Dividends declared on common stock— — (120.0)— (120.0)
Derivative hedging activity, net of tax— — — (0.2)(0.2)
Balance as of December 31, 20201 1,563.1 1,191.5 4.6 2,759.2 
Net income— — 312.3 — 312.3 
Dividends declared on common stock— — (50.0)— (50.0)
Derivative hedging activity, net of tax— — — (0.3)(0.3)
Balance as of December 31, 20211 $1,563.1 $1,453.8 $4.3 $3,021.2 
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
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EVERGY, INC.
EVERGY KANSAS CENTRAL, INC.
EVERGY METRO, INC.
Combined Notes to Consolidated Financial Statements
The notes to consolidated financial statements that follow are a combined presentation for Great Plains Energy IncorporatedEvergy, Inc., Evergy Kansas Central, Inc. and Kansas City Power & Light Company, bothEvergy Metro, Inc., all registrants under this filing.  The terms "Great Plains Energy,"Evergy," "Company,"Evergy Kansas Central," "KCP&L""Evergy Metro" and "Companies""Evergy Companies" are used throughout this report.  "Great Plains Energy" and the "Company" refer"Evergy" refers to Great Plains Energy IncorporatedEvergy, Inc. and its consolidated subsidiaries, unless otherwise indicated.  "KCP&L""Evergy Kansas Central" refers to Evergy Kansas City Power & Light Company and its consolidated subsidiaries. "Companies" refers to Great Plains Energy IncorporatedCentral, Inc. and its consolidated subsidiaries, and KCP&Lunless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated subsidiaries.  subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Evergy Kansas Central and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.  
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Great Plains Energy, a Missouri corporation incorporated in 2001,Evergy is a public utility holding company incorporated in 2017 and does not own or operate any significant assets other thanheadquartered in Kansas City, Missouri. Evergy operates primarily through the stock of its subsidiaries and cash and cash equivalents. Great Plains Energy's wholly ownedfollowing wholly-owned direct subsidiaries with significant operations are as follows:listed below.
KCP&L is an integrated, regulated electric utility that provides electricity to customers primarily in the states of Missouri and Kansas.  KCP&L has one active wholly owned subsidiary,•Evergy Kansas City Power & Light Receivables Company (KCP&L Receivables Company).
KCP&L Greater Missouri Operations Company (GMO)Central, Inc. (Evergy Kansas Central) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.  GMO alsoKansas. Evergy Kansas Central has 1 active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South).
•Evergy Metro, Inc. (Evergy Metro) is an integrated, regulated electric utility that provides regulated steam serviceelectricity to certain customers in the St. Joseph,states of Missouri area.  GMO has two active wholly owned subsidiaries, GMO Receivables Company and MPS Merchant Services,Kansas.
•Evergy Missouri West, Inc. (MPS Merchant).  MPS Merchant has certain long-term natural gas contracts remaining from its former non-regulated trading operations.(Evergy Missouri West) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
Great Plains Energy also wholly owns GPE•Evergy Transmission Holding Company, LLC (GPETHC). GPETHC(Evergy Transmission Company) owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, (AEPTHC), a subsidiary of American Electric Power Company, Inc. GPETHC accounts for its investment in Transource under the equity method.(AEP). Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.
Evergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that provides transmission service in the Southwest Power Pool, Inc. (SPP). Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.

Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West conduct business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 15,400 MWs of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.6 million customers in the states of Kansas and Missouri.
Principles of Consolidation
Each of Great Plains Energy'sEvergy's, Evergy Kansas Central's and KCP&L'sEvergy Metro's consolidated financial statements includes the accounts of their subsidiaries.subsidiaries and variable interest entities (VIEs) of which they are the primary beneficiary. Undivided interests in jointly-owned generation facilities are included on a proportionate basis.  Intercompany transactions have been eliminated. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).
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Evergy Metro elected not to apply "push-down accounting" related to the Great Plains Energy's sole reportable business segment isEnergy Incorporated (Great Plains Energy) and Evergy Kansas Central merger in 2018, whereby the electric utility segment (Electric Utility).  See Note 22adjustments of assets and liabilities to fair value and the resulting goodwill would be recorded on the financial statements of the acquired subsidiary. These adjustments for additional information.Evergy Metro, as well as those related to the acquired assets and liabilities of Great Plains Energy and its other direct subsidiaries, are only reflected on Evergy's consolidated financial statements.
Use of Estimates
The process of preparing financial statements in conformity with Generally Accepted Accounting Principlesgenerally accepted accounting principles (GAAP) requires the use of estimates and assumptions that affect the reported amounts of certain types of assets, liabilities, revenues and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts.
Cash and Cash Equivalents
Cash equivalents consist of highly liquid investments with original maturities of three months or less at acquisition.
Time DepositFuel Inventory and Supplies
ConsistsThe Evergy Companies record fuel inventory and supplies at average cost. The following table separately states the balances for fuel inventory and supplies.
December 31
20212020
Evergy(millions)
Fuel inventory$160.9 $145.0 
Supplies405.8 359.5 
Fuel inventory and supplies$566.7 $504.5 
Evergy Kansas Central
Fuel inventory$74.3 $79.3 
Supplies208.9 197.1 
Fuel inventory and supplies$283.2 $276.4 
Evergy Metro
Fuel inventory$62.0 $44.9 
Supplies149.0 125.5 
Fuel inventory and supplies$211.0 $170.4 
Property, Plant and Equipment
The Evergy Companies record the value of a non-negotiable fixed rate investment in a time deposit with an original maturityproperty, plant and equipment, including that of greater than three months and is recorded on the balance sheetVIEs, at cost. For plant, cost includes contracted services, direct labor and materials, indirect charges for engineering and supervision and an allowance for funds used during construction (AFUDC). AFUDC represents the allowed cost of capital used to finance utility construction activity. AFUDC equity funds are included as a non-cash item in other income and AFUDC borrowed funds are a reduction of interest expense. AFUDC is computed by applying a composite rate to qualified construction work in progress. The Company estimates the fair value of the time deposit, which approximates its carrying value, using Level 2 inputs based on current interest rates for similar investments with comparable credit risk and timeused to maturity.

compute gross AFUDC are compounded semi-annually.
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Fair Value of Financial Instruments
The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value.
Nuclear decommissioning trust fund - KCP&L's nuclear decommissioning trust fund assets are recorded at fair value based on quoted market pricesamounts of the investments held by the fund and/or valuation models.
Pension plans - For financial reporting purposes, the market value of plan assets is the fair value. For regulatory reporting purposes, a five-year smoothing of assets is used to determine fair value.
Derivative Instruments
The Company records derivative instruments on the balance sheet at fair value in accordance with GAAP. Great Plains Energy and KCP&L enter into derivative contracts to manage exposure to commodity price and interest rate fluctuations. Derivative instruments are entered into solelyEvergy Companies' AFUDC for hedging purposes and are not issued or held for speculative reasons.
The Company considers various qualitative factors, such as contract and market place attributes, in designating derivative instruments at inception. Great Plains Energy and KCP&L may elect the normal purchases and normal sales (NPNS) exception, which requires the effects of the derivative to be recorded when the underlying contract settles. Great Plains Energy and KCP&L account for derivative instruments that are not designated as NPNS as non-hedging derivatives, which are recorded as assets or liabilities on the consolidated balance sheets at fair value.
Great Plains Energy and KCP&L offset fair value amounts recognized for derivative instruments under master netting arrangements, which include rights to reclaim cash collateral (a receivable), or the obligation to return cash collateral (a payable).
Utility Plant
Great Plains Energy's and KCP&L's utility plant is stated at historical cost. These costs include taxes, an allowance for the cost of borrowed and equity funds are detailed in the following table.
202120202019
Evergy(millions)
AFUDC borrowed funds$14.7 $16.5 $14.5 
AFUDC equity funds29.4 17.2 2.2 
Total$44.1 $33.7 $16.7 
Evergy Kansas Central
AFUDC borrowed funds$7.1 $8.5 $7.5 
AFUDC equity funds14.9 9.1 — 
Total$22.0 $17.6 $7.5 
Evergy Metro
AFUDC borrowed funds$6.0 $6.0 $4.3 
AFUDC equity funds12.6 8.0 2.2 
Total$18.6 $14.0 $6.5 
The average rates used to finance construction and payroll-related costs, including pensions and other fringe benefits. Replacements, improvements and additions to unitsin the calculation of propertyAFUDC are capitalized. Repairs of property and replacements of items not considered to be units of property are expensed as incurred (except as discussed under Deferred Refueling Outage Costs). detailed in the following table.
202120202019
Evergy Kansas Central4.9%4.7%3.0%
Evergy Metro5.6%5.2%4.6%
Evergy Missouri West2.6%3.5%3.7%
When property units are retired or otherwise disposed, the original cost, net of salvage, is charged to accumulated depreciation. Substantially allRepair of KCP&L's utility plantproperty and replacement of items not considered to be units of property are expensed as incurred, except for planned refueling and maintenance outages at Wolf Creek Generating Station (Wolf Creek). As authorized by regulators, the incremental maintenance cost incurred for such outages is pledged as collateral for KCP&L's mortgage bonds underdeferred and amortized to expense ratably over the General Mortgage Indentureperiod between planned outages.
Depreciation and Deed of Trust dated December 1, 1986, as supplemented (Indenture). A portion of GMO's utility plant is pledged as collateral for GMO's mortgage bonds under the General Mortgage IndentureAmortization
Depreciation and Deed of Trust dated April 1, 1946, as supplemented.
As prescribed by The Federal Energy Regulatory Commission (FERC), Allowance for Funds Used During Construction (AFUDC) is charged to the cost of the plant during construction. AFUDC equity funds are included as a non-cash item in non-operating income and AFUDC borrowed funds are a reduction of interest charges. The rates used to compute gross AFUDC are compounded semi-annually. The rates used to compute gross AFUDC for KCP&L averaged 4.9% in 2017, 5.7% in 2016 and 3.0% in 2015. The rates used to compute gross AFUDC for GMO averaged 1.9% in 2017, 1.6% in 2016 and 4.2% in 2015.

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Great Plains Energy's and KCP&L's balancesamortization of utility plant at original cost, with a rangeother than nuclear fuel is computed using the straight-line method over the estimated lives of estimated usefuldepreciable property based on rates approved by state regulatory authorities. Annual depreciation rates average approximately 3%. See Note 7 for more details. Nuclear fuel is amortized to fuel expense based on the quantity of heat produced during the generation of electricity.
The depreciable lives of Evergy's, Evergy Kansas Central's and Evergy Metro's property, plant and equipment are listeddetailed in the following tables.table.
Great Plains Energy    
December 31 2017 2016
Utility plant, at original cost (millions)
Generation (20 - 60 years) $7,930.8
 $8,106.4
Transmission (15 - 70 years) 912.3
 886.3
Distribution (8 - 66 years) 3,789.0
 3,629.1
General (5 - 50 years) 1,042.0
 975.9
Total (a)
 $13,674.1
 $13,597.7
(a) Includes $265.0 million and $261.2 million at December 31, 2017 and 2016, respectively, of land and other assets that are not depreciated.
KCP&L    
December 31 2017 2016
Utility plant, at original cost (millions)
Generation (20 - 60 years) $6,471.5
 $6,350.7
Transmission (15 - 70 years) 500.4
 484.1
Distribution (8 - 55 years) 2,389.4
 2,298.4
General (5 - 50 years) 851.9
 791.9
Total (a)
 $10,213.2
 $9,925.1
(a) Includes $176.0 million and $178.0 million at December 31, 2017 and 2016, respectively, of land and other assets that are not depreciated.
EvergyEvergy Kansas CentralEvergy Metro
(years)
Generating facilities8to878to8720to60
Transmission facilities15to9436to9415to70
Distribution facilities8to7319to738to55
Other5to847to845to50
Plant to be Retired, Net
When Great Plains Energy and KCP&Lthe Evergy Companies retire utility plant, the original cost, net of salvage, is charged to accumulated depreciation. However, when it becomes probable an asset will be retired significantly in advance of its original expected useful life and in the near term, the cost of the asset and related accumulated depreciation is recognized as a separate asset asand a probable abandonment. If the asset is still in service, the net amount is classified as plant to
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be retired, net on the consolidated balance sheets. If the asset is no longer in service, the net amount is classified inas a regulatory assetsasset on the consolidated balance sheets.
Great Plains Energy and KCP&LThe Evergy Companies must also assess the probability of full recovery of the remaining net book value of the abandonment. The net book value that may be retained as an asset on the balance sheet for the abandonment is dependent upon amounts that may be recovered through regulated rates, including any return. An impairment charge, if any, would equal the difference between the remaining net book value of the asset and the present value of the future revenues expected from the asset.
In June 2017, Great Plains Energy and KCP&L announced the expected retirement of certain older generating units, including GMO's Sibley No. 3 Unit, over the next several years. As of December 31, 2017, Great Plains EnergyEvergy Missouri West has determined that its November 2018 retirement of Sibley No. 3 Unit meets the criteria to be considered probablean abandonment. As of abandonment andDecember 31, 2021, Evergy has classified itsthe remaining Sibley No. 3 Unit net book value of $143.6$123.4 million as retired generation facilities within plant to be retired, netregulatory assets on its consolidated balance sheet. The CompanyThis regulatory asset is currently allowedreduced by approximately $9 million of annual amortization expense, which is an amount equal to the annual depreciation expense for the asset reflected in retail rates.
In October 2019, the Missouri Public Service Commission (MPSC) granted the request of certain intervenors for an Accounting Authority Order (AAO) that requires Evergy Missouri West to record a full recovery of and a fullregulatory liability for all revenues collected from customers for return on investment, non-fuel operations and maintenance costs, taxes including accumulated deferred income taxes and all other costs associated with Sibley No. 3 UnitStation following the station's retirement in ratesNovember 2018 for consideration in Evergy Missouri West's current rate case, which was filed in January 2022. See Note 4 for additional information regarding the AAO and Evergy Missouri West's current rate case.
Evergy Missouri West expects that the MPSC's decision in its current rate case regarding the AAO could impact the valuation of its regulatory asset for retired generation facilities but as of December 31, 2021, has concluded that no impairment is required as of December 31, 2017.
Depreciation and Amortization
Depreciation and amortization of utility plant other than nuclear fuel is computed using the straight-line method over the estimated lives of depreciable property based on rates approved by state regulatory authorities. Annual depreciation rates average approximately 3%. Nuclear fuel is amortized to fuel expense based on the quantity of heat produced during the generation of electricity.

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Great Plains Energy's depreciation expense was $330.8 million, $308.8 millionrelevant facts and $299.4 million for 2017, 2016 and 2015, respectively. KCP&L's depreciation expense was $228.4 million, $215.4 million and $208.5 million for 2017, 2016 and 2015, respectively.circumstances.
Nuclear Plant Decommissioning Costs
Nuclear plant decommissioning cost estimates are based on either the immediate dismantlement method or the deferred dismantling method as determined by the State Corporation Commission of the State of Kansas (KCC) and MPSC and include the costs of decontamination, dismantlement and site restoration. Based on these cost estimates, KCP&L contributesEvergy Kansas Central and Evergy Metro each contribute to a tax-qualified trust fund to be used to decommission Wolf Creek Generating Station (Wolf Creek).Creek. Related liabilities for decommissioning are included on Great Plains Energy'sEvergy's, Evergy Kansas Central's and KCP&L'sEvergy Metro's consolidated balance sheets in Asset Retirement Obligationsasset retirement obligations (AROs).
As a result of the authorized regulatory treatment and related regulatory accounting, differences between the fair value of the assets held in the nuclear decommissioning trust fund asset and the relatedamounts recorded for the accumulated accretion and depreciation expense associated with the decommissioning ARO are recorded as a regulatory asset or liability.liability on Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated balance sheets. See Note 86 for discussion of AROs including those associated with nuclear plant decommissioning costs.
Deferred Refueling Outage CostsRegulatory Accounting
KCP&L usesAccounting standards are applied that recognize the deferral method to account for operations and maintenance expenses incurred in support of Wolf Creek's scheduled refueling outages and amortizes them evenly (monthly) over the unit's operating cycle, which is approximately 18 months, until the next scheduled outage. Replacement power costs during an outage are expensed as incurred.
Regulatory Matters
KCP&L and GMO defer items on the balance sheet resulting from theeconomic effects of the ratemaking process, which would not berate regulation. Accordingly, regulatory assets and liabilities have been recorded if KCP&L and GMO were not regulated.when required by a regulatory order or based on regulatory precedent. See Note 64 for additional information concerning regulatory matters.
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Cash Surrender Value of Life Insurance
Amounts related to corporate-owned life insurance (COLI) are recorded on the consolidated balance sheets in other long-term assets and are detailed in the following table for Evergy. Substantially all of Evergy's COLI-related balances relate to Evergy Kansas Central's COLI activity.
December 31
20212020
Evergy(millions)
Cash surrender value of policies$1,363.0 $1,369.6 
Borrowings against policies(1,232.3)(1,237.6)
Corporate-owned life insurance, net$130.7 $132.0 
Increases in cash surrender value and death benefits are recorded in other income in the Evergy Companies' consolidated statements of income and comprehensive income. Interest expense incurred on policy loans is offset against the policy income. Income from death benefits is highly variable from period to period.
Fair Value of Financial Instruments
The following methods and assumptions were used to estimate the fair value of the following financial instruments for which it was practicable to estimate that value.
Nuclear decommissioning trust fund - The Evergy Companies' nuclear decommissioning trust fund assets are recorded at fair value based on quoted market prices of the investments held by the fund and/or valuation models.
Pension plans - For financial reporting purposes, the market value of plan assets is the fair value based on quoted market prices of the investments held by the fund and/or valuation models.
Revenue Recognition
Great Plains Energy and KCP&LThe Evergy Companies recognize revenuesrevenue on salesthe sale of electricity whento customers over time as the service is provided.provided in the amount they have the right to invoice. Revenues recorded include electric services provided but not yet billed by KCP&L and GMO.the Evergy Companies. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. KCP&L's and GMO'sThis estimate is based on net system kWh usage less actual billed kWhs. KCP&L's and GMO'sThe Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates. The Evergy Companies' unbilled revenue estimate is affected by factors including fluctuations in energy demand, weather, line losses and changes in the composition of customer classes. See Note 3 for the balance of unbilled receivables for each of Evergy, Evergy Kansas Central and Evergy Metro as of December 31, 2021 and 2020.
KCP&LThe Evergy Companies also collect sales taxes and GMO collectfranchise fees from customers gross receipts taxesconcurrent with revenue-producing activities that are levied by state and local governments. These taxesitems are excluded from KCP&L's Missouri customersrevenue, and thus are recorded gross in operating revenues and general taxesnot reflected on Great Plains Energy's and KCP&L'sthe consolidated statements of comprehensive income. KCP&L's gross receipts taxes collected from Missouri customers were $72.9 million, $70.3 millionincome and $62.0 million in 2017, 2016 and 2015, respectively. These taxes from KCP&L's Kansas customers and GMO's customers are recorded net in operating revenues on Great Plains Energy's and KCP&L's statements of comprehensive income (loss).for Evergy, Evergy Kansas Central and Evergy Metro.
Great Plains Energy and KCP&L collectSee Note 2 for additional details regarding revenue recognition from sales taxes from customers and remit to state and local governments. These taxes are presented on a net basis on Great Plains Energy's and KCP&L's statements of comprehensive income (loss).
Great Plains Energy and KCP&L record sale and purchase activity on a net basis in wholesale revenue or purchased power when transacting with Regional Transmission Organization (RTO)/Independent System Operator (ISO) markets.electricity by the Evergy Companies.
Allowance for Doubtful AccountsCredit Losses
This reserve represents estimated uncollectibleHistorical loss information generally provides the basis for the Evergy Companies' assessment of expected credit losses. The Evergy Companies use an aging of accounts receivable and is based on management's judgment consideringmethod to assess historical loss information. When historical experience may not fully reflect the Evergy Companies' expectations about the future, the Evergy Companies will adjust historical loss information, as necessary, to reflect the current conditions and reasonable and supportable forecasts not already reflected in the characteristicshistorical loss information.
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Receivables are charged off against the reserve when they are deemed uncollectible.

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Property Gainsfactors including specific facts surrounding an account and Lossesmanagement's judgment.
Net gains and losses from the sale of assets and businesses and from asset impairments are recorded in operating expenses.
Asset Impairments
Long-lived assets and finite-lived intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted expected future cash flows from an asset to be held and used is less than the carrying value of the asset, an asset impairment must be recognized in the financial statements. The amount of impairment recognized is the excess of the carrying value of the asset over its fair value.
Goodwill and indefinite lived intangible assets are tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. The annual test must be performed at the same time each year. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. See Note 5 for additional details on goodwill.
Income Taxes
Income taxes are accounted for using the asset/liability approach. Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized.
Great Plains Energy and KCP&LThe Evergy Companies recognize tax benefits based on a “more-likely-than-not”"more-likely-than-not" recognition threshold. In addition, Great Plains Energy and KCP&Lthe Evergy Companies recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in non-operatingoperating expenses.
Great Plains EnergyEvergy files a consolidated federal income tax return as well as unitary and combined income tax returns in several state jurisdictions with Kansas and Missouri being the most significant. Income taxes for consolidated or combined subsidiaries are allocated to the subsidiaries based on separate company computations of income or loss. KCP&L'sEvergy Kansas Central's and Evergy Metro's income tax provision includesprovisions include taxes allocated based on itstheir separate companycompany's income or loss.
As of December 31, 2017, Great Plains Energy and KCP&LThe Evergy Companies have established a net regulatory liability for the additional future refunds to be made to customers for the over collectionamounts collected from customers in excess of income taxes in current rates. Tax credits are recognized in the year generated except for certain KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West investment tax credits that have been deferred and amortized over the remaining service lives of the related properties.
Environmental Matters
Environmental costs are accrued when it is probable a liability has been incurred and the amount of the liability can be reasonably estimated.
Non-Operating Income and Expenses
In 2017, Great Plains Energy's non-operating income included $22.8 million of interest income earned on increased cash and cash equivalents at Great Plains Energy in 2017 related to the proceeds from Great Plains Energy's October 2016 common stock and Series B Preferred Stock offerings and March 2017 issuance of $4.3 billion of senior notes and $14.0 million of mark-to-market gains on deal contingent interest rate swaps.

In 2017, Great Plains Energy's non-operating expenses included $15.0 million due to the write-off of previously deferred offering fees as a result of the termination of the stock purchase agreement for $750 million of Series A Preferred Stock between Great Plains Energy and OCM Credit Portfolio LP (OMERS) in July 2017.

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Other Income (Expense), Net
BasicIn 2021, Evergy's investment earnings included a $27.7 million unrealized gain related to Evergy’s investment in an early-stage energy solutions company. See “Evergy Equity Investment” in this Note 1 for further information.
The Evergy Companies’ other income includes income from AFUDC equity funds. See “Property, Plant and Diluted Equipment” in this Note 1 for these amounts for 2021, 2020 and 2019.
The table below shows the detail of other expense for each of the Evergy Companies.
202120202019
Evergy(millions)
Non-service cost component of net benefit cost$(55.6)$(58.6)$(55.6)
Other(31.8)(19.6)(21.3)
Other expense$(87.4)$(78.2)$(76.9)
Evergy Kansas Central
Non-service cost component of net benefit cost$(15.6)$(21.2)$(20.1)
Other(20.3)(17.7)(20.0)
Other expense$(35.9)$(38.9)$(40.1)
Evergy Metro
Non-service cost component of net benefit cost$(26.7)$(24.2)$(20.9)
Other(2.7)(1.3)(0.5)
Other expense$(29.4)$(25.5)$(21.4)
Earnings (Loss) per CommonPer Share Calculation
To determinecompute basic earnings (loss) per common share (EPS), preferred stock dividend requirements and redemption premium are deducted fromEvergy divides net income (loss) before dividingattributable to Evergy, Inc. by the weighted average number of common shares outstanding. To determine dilutedDiluted EPS preferredincludes the effect of issuable common shares resulting from restricted share units (RSUs), restricted stock dividend requirements and redemption premium are added to earnings available for common shareholders fora warrant. Evergy computes the periods in which the assumed conversiondilutive effects of Great Plains Energy's 7.00% Series B Mandatory Convertible Preferred Stock (Series B Preferred Stock) has a dilutive effect before dividing by the diluted average numberpotential issuances of common shares outstanding. See Note 14 for additional information regarding Series B Preferred Stock. The effect of dilutive securities assumes the issuance of common shares applicable to performance shares and restricted stock calculated using the treasury stock method andor the number of common shares that would be issued under an assumed conversion of Series B Preferred Stock using the if-converted method.contingently issuable share method, as applicable.
The following table reconciles Great Plains Energy'sEvergy's basic and diluted EPS.
 202120202019
Income(millions, except per share amounts)
Net income$891.9 $630.0 $685.6 
Less: Net income attributable to noncontrolling interests12.2 11.7 15.7 
Net income attributable to Evergy, Inc.$879.7 $618.3 $669.9 
Common Shares Outstanding  
Weighted average number of common shares outstanding - basic229.0 227.2 239.5 
Add: effect of dilutive securities0.6 0.3 0.4 
Diluted average number of common shares outstanding229.6 227.5 239.9 
Basic EPS$3.84 $2.72 $2.80 
Diluted EPS$3.83 $2.72 $2.79 
 2017 2016 2015
 (millions, except per share amounts)
Income (Loss)     
Net income (loss)$(106.2) $290.0
 $213.0
Less: preferred stock dividend requirements and redemption premium37.3
 16.5
 1.6
Earnings (loss) available for common shareholders$(143.5) $273.5
 $211.4
Common Shares Outstanding 
  
  
Average number of common shares outstanding215.5
 169.4
 154.2
Add: effect of dilutive securities—
 0.4
 0.6
Diluted average number of common shares outstanding215.5
 169.8
 154.8
Basic and Diluted EPS$(0.67) $1.61
 $1.37
There were 0 anti-dilutive securities excluded from the computation of diluted EPS for 2021. Anti-dilutive shares excluded from the computation of diluted EPS for 20172020 and 2019 were 226,958 performance shares127,884 RSUs and 144,989 restricted stock shares. Anti-dilutive shares excluded from785 RSUs, respectively.
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Supplemental Cash Flow Information
Year Ended December 31202120202019
Evergy(millions)
Cash paid for (received from):
Interest, net of amount capitalized$356.9 $367.6 $329.5 
Interest of VIEs0.2 0.8 1.6 
Income taxes, net of refunds(19.6)(46.5)(5.2)
Non-cash investing transactions:
Property, plant and equipment additions269.3 463.3 186.0 
Non-cash financing transactions:
Issuance of stock for compensation and reinvested dividends0.7 0.9 (0.3)
Year Ended December 31202120202019
Evergy Kansas Central(millions)
Cash paid for (received from):
Interest, net of amount capitalized$149.3 $157.5 $143.0 
Interest of VIEs0.2 0.8 1.6 
Income taxes, net of refunds37.5 4.7 29.9 
Non-cash investing transactions:
Property, plant and equipment additions101.9 235.4 92.1 
Year Ended December 31202120202019
Evergy Metro(millions)
Cash paid for (received from):
Interest, net of amount capitalized$110.8 $109.9 $118.4 
Income taxes, net of refunds36.6 4.8 77.0 
Non-cash investing transactions:
Property, plant and equipment additions102.2 192.5 80.7 
Non-cash property, plant and equipment additions in 2020 for Evergy, Evergy Kansas Central and Evergy Metro include a non-cash addition related to the computationrevision in estimate of diluted EPSthe Wolf Creek ARO liability in the third quarter of 2020. See Note 6 for 2016 were 7,805,460 shares of Series B Preferred Stock assumed to be converted. Anti-dilutive shares excluded from the computation of diluted EPS for 2015 were 900 restricted stock shares.more details.
Dividends Declared
In February 2018, Great Plains Energy's2022, Evergy's Board of Directors (Great Plains Energy(Evergy Board) declared a quarterly dividend of $0.275$0.5725 per share on Great Plains Energy'sEvergy's common stock.  The common dividend is payable March 20, 2018,21, 2022, to shareholders of record as of February 27, 2018.March 7, 2022.
In February 2018, KCP&L's2022, Evergy Kansas Central's Board of Directors declared a cash dividend payable to Great Plains EnergyEvergy of $60up to $25.0 million, payable on March 19, 2018.18, 2022.
New Accounting StandardsFebruary 2021 Winter Weather Event
In March 2016,February 2021, much of the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation-Stock Compensation, which is intended to simplify several areas of accounting for share-based compensation arrangements,central and southern United States, including the income tax impact, classification onservice territories of the statement of cash flows and forfeitures. TheEvergy Companies, adopted ASU No. 2016-09 on January 1, 2017. The cumulative effect from the adoption of ASU No. 2016-09 was insignificant to Great Plains Energy's consolidated financial statements andexperienced a significant winter weather event that resulted in extremely cold temperatures over a reductionmulti-day period (February 2021 winter weather event). The February 2021 winter weather event resulted in an increase in the demand for natural gas used by the Evergy Companies for generating electricity and also contributed to retained earningsthe limited availability of $0.7 million for KCP&L.other generation resources, including coal and renewables, within the SPP Integrated Marketplace. The Evergy Companies have elected to adopt the cash flow presentationare members of the excess tax benefitsSPP and, as an operating activity prospectivelya result, principally sell and no prior periods have been adjusted.
In March 2017,purchase power for the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits, which requires an employer to disaggregateEvergy Companies' retail electric customers through the service cost component from the other components of net benefit cost. The service cost component is to be reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The non-service cost components are to be reported

SPP Integrated Marketplace. These circumstances
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resulted in higher than normal market prices for both natural gas and power for the duration of the February 2021 winter weather event. These higher than normal market prices also included make-whole payments calculated by the SPP to compensate natural gas generators within the SPP Integrated Marketplace for costs incurred in excess of revenues. As part of the February 2021 winter weather event and inclusive of the aforementioned items, Evergy incurred natural gas and purchased power costs, net of wholesale revenues, of $365.5 million. This $365.5 million of net fuel and purchased power costs was primarily driven by $296.4 million of costs at Evergy Missouri West and $133.9 million of costs at Evergy Kansas Central, partially offset by $64.8 million of net wholesale revenues at Evergy Metro. The amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event is subject to resettlement activity and further review by the SPP. This review and any subsequent resettlement activity could result in increases or decreases to the final amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event and these changes could be material.
separatelyThe Evergy Companies have fuel recovery mechanisms in their Kansas and Missouri jurisdictions, as applicable, that allow them to defer substantially all of any increased fuel and purchased power costs, net of wholesale revenues, to a regulatory asset or liability for future recovery from or refund to customers. Further, in February 2021, the KCC issued an emergency AAO that allowed Evergy Kansas Central and Evergy Metro's Kansas jurisdiction to defer to a regulatory asset any extraordinary costs, including carrying costs, incurred to provide electric service during the February 2021 winter weather event for consideration in future rate proceedings. Additionally, in June 2021, Evergy Metro and Evergy Missouri West filed a joint request for an AAO with the MPSC that would allow for the extraordinary costs and outside of a subtotal of income from operations. The amendments in this update allow onlyrevenues to provide service during the service cost componentFebruary 2021 winter weather event, including carrying costs, to be eligible for capitalization as part of utility plant. The non-service cost components that are no longer eligible for capitalization as part of utility plant will be recorded asdeferred to a regulatory asset. The new guidance is to be applied retrospectivelyasset or a regulatory liability for consideration in future proceedings. See Note 4 for additional information regarding the presentationAAOs.
As of service cost and non-service cost components inDecember 31, 2021, the income statement and prospectively for the capitalizationEvergy Companies have deferred substantially all of the service cost component. Thefuel and purchased power costs, net of wholesale revenues, related to the February 2021 winter weather event to a regulatory asset or liability pursuant to the mechanisms discussed above. While the Evergy Companies adopted ASU No. 2017-07 on January 1, 2018,expect to recover substantially all of any increased fuel and it will not have a material impact on their consolidated financial statements aspurchased power costs related to the impacts of adoption are limited to changes inFebruary 2021 winter weather event from customers, the classification of non-service cost.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In August 2015, the FASB issued ASU No. 2015-14, deferring the effective date of ASU No. 2014-09 one year, from January 1, 2017, to January 1, 2018. The ASU replaced most existing revenue recognition guidance in GAAP when it became effective. The Companies adopted ASU No. 2014-09 on January 1, 2018 using the modified retrospective transition method. The adoptiontiming of the standard didcost recovery could be delayed or spread over a longer than typical recovery timeframe by the KCC or the MPSC to help moderate monthly customer bill impacts given the extraordinary nature of the February 2021 winter weather event.
The Evergy Companies also engage in limited non-regulated energy marketing activities in various regional power markets that have historically not havehad a materialsignificant impact on the Evergy Companies' amount or timingresults of revenue recognition. The Companies will include additional disclosures regarding the nature, amount and timing of theiroperations. These energy marketing margins are recorded net in operating revenues from contracts with customers, including disaggregated revenue by customer type, in their first quarter 2018 notes to financial statements.
In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires an entity that is a lessee to record a right-of-use asset and a lease liability for lease payments on the balance sheet for all leases with terms longer than 12 months.  Leases will be classified as either finance or operating, with classification affecting the patternEvergy Companies' statements of expense recognition in the income statement.  The new guidance is effective for interim and annual periods beginning after December 15, 2018, and is required to be applied using a modified retrospective approach.  Great Plains Energy and KCP&L plan to adopt the new guidance on January 1, 2019. The Companies expect that the new guidance will affect the balance sheet by increasing the assets and liabilities recorded related to operating leases and continue to evaluate the effect that ASU No. 2016-02 will have on their income statement, statement of cash flows and related disclosures.
2. ANTICIPATED MERGER WITH WESTAR ENERGY, INC.
In May 2016, Great Plains Energy entered into an Agreement and Plan of Merger dated as of May 29, 2016, by and among Great Plains Energy, Westar Energy, Inc. (Westar) and GP Star, Inc. (GP Star) (Original Merger Agreement). Pursuant to the Original Merger Agreement, Great Plains Energy would have acquired Westar for (i) $51.00 in cash and (ii) a number of shares of Great Plains Energy common stock, equal to an exchange ratio for each share of Westar common stock issued and outstanding immediately prior to the effective time of the merger, with Westar becoming a wholly owned subsidiary of Great Plains Energy. The acquisition was subject to various shareholder and regulatory approvals, including from The State Corporation Commission of the State of Kansas (KCC), the Public Service Commission of the State of Missouri (MPSC) and FERC.
In April, 2017, KCC issued an order denying Great Plains Energy's, KCP&L's and Westar's joint application for approval of the acquisition of Westar by Great Plains Energy citing concerns with the purchase price, Great Plains Energy's capital structure, quantifiable and demonstrable customer benefits and staffing levels in Westar's service territory, among other items.
In July 2017, Great Plains Energy entered into an Amended and Restated Agreement and Plan of Merger dated as of July 9, 2017 by and among Great Plains Energy, Westar, Monarch Energy Holding, Inc., a Missouri corporation (Holdco), and King Energy, Inc., a Kansas corporation and wholly owned subsidiary of Holdco (Merger Sub) (Amended Merger Agreement). Pursuant to the Amended Merger Agreement, subject to the satisfaction or waiver of certain conditions, Great Plains Energy will merge with and into Holdco, with Holdco surviving such merger, and Merger Sub will merge with and into Westar, with Westar surviving such merger. Pursuant to the Amended Merger Agreement, at closing each outstanding share of Great Plains Energy's and Westar's common stock will be converted into the right to receive 0.5981 and 1.0, respectively, of validly issued, fully paid and nonassessable

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shares of common stock, no par value, of Holdco. Following the mergers, Holdco, with a new name that has yet to be established, will be the parent of Great Plains Energy's direct subsidiaries, including KCP&L, and Westar.
The anticipated merger with Westar has been structured as a merger of equals in a tax-free exchange of shares that involves no premium paid or received with respect to either Great Plains Energy or Westar. Following the completion of the anticipated merger, Westar shareholders will own approximately 52.5 percent and Great Plains Energy shareholders will own approximately 47.5 percent of the combined company.
Regulatory and Shareholder Approvals
Great Plains Energy's anticipated merger with Westar was unanimously approved by the Great Plains Energy Board and Westar's Board of Directors (Westar Board). In November 2017, shareholders of Great Plains Energy and Westar approved all proposals necessary for the merger of Great Plains Energy and Westar at each company's respective shareholder meeting. The anticipated merger remains subject to regulatory approvals from KCC, the MPSC, the Nuclear Regulatory Commission (NRC), FERC and The Federal Communications Commission (FCC); as well as other contractual conditions.
KCC Approval
In August 2017, Great Plains Energy, KCP&L and Westar filed a joint application with KCC for approval of the anticipated merger with Westar. An evidentiary hearing is expected to occur in March 2018 and a decision from KCC on the joint application is expected by June 5, 2018.
MPSC Approval
In August 2017, Great Plains Energy, KCP&L, GMO and Westar filed a joint application with the MPSC for approval of the anticipated merger with Westar. In January 2018, Great Plains Energy, KCP&L, GMO and Westar reached a stipulation and agreement with the MPSC staff and certain other intervenors in the case settling all issues in the joint application except for the assignment of bill credit amounts to retail electric customers at KCP&L and GMO. The stipulation and agreement imposes certain conditions on Holdco, KCP&L and GMO in the areas of financing, ratemaking, customer service, corporate social responsibility and also includes other general provisions. The stipulation and agreement with the MPSC staff, among other things, provides that retail rates for KCP&L Missouri and GMO customers will not increase as a result of the merger and that in the event KCP&L's or GMO's credit ratings are downgraded below investment grade as a result of their affiliation with Holdco or any of Holdco's affiliates, KCP&L and GMO will be restricted from paying a dividend unless approved by the MPSC or until their credit ratings are restored to investment grade. The stipulation and agreement must still be approved by the MPSC. An evidentiary hearing in the case is expected to occur in March 2018. While there is not a statutory deadline for an MPSC ruling on the joint application, a decision from the MPSC is expected in the second quarter of 2018.
Other Approvals
In September 2017, Great Plains Energy and Westar filed applications with FERC and the NRC for approval of the merger. In October 2017, the Securities and Exchange Commission (SEC) declared effective a registration statement on Form S-4 of Holdco including a joint proxy statement of Great Plains Energy and Westar that was used in connection with Great Plains Energy's and Westar's special shareholder meetings on November 21, 2017, and the registration of shares of Holdco common stock to be issued to Great Plains Energy's and Westar's shareholders at the closing of the anticipated merger. In November 2017, Great Plains Energy and Westar filed their respective Pre-Merger Notification and Report forms with the Federal Trade Commission (FTC) and the Department of Justice (DOJ) under the Hart-Scott-Rodino (HSR) Act. In December 2017, the FTC granted Great Plains Energy's request for early termination of the waiting period under the HSR Act with respect to the anticipated merger. In February 2018, Great Plains Energy, KCP&L, GMO and Westar filed Transfer of Control applications with FCC.
Termination Fees
The Amended Merger Agreement provides that in connection with a termination of the agreement under specified circumstances relating to a failure to obtain regulatory approvals by July 9, 2018 (which date may be extended to January 9, 2019), a final and nonappealable order enjoining the consummation of the anticipated merger in connection with regulatory approvals or failure by Great Plains Energy to comply with its obligations under the

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Amended Merger Agreement to consummate the closing of the anticipated merger once all of the conditions have been satisfied, Great Plains Energy may be required to pay Westar a termination fee of $190 million. In addition, in the event that the Amended Merger Agreement is terminated by Westar under certain circumstances to enter into a definitive acquisition agreement with respect to a superior proposal, Westar may be required to pay Great Plains Energy a termination fee of $190 million. Similarly, in the event that the Amended Merger Agreement is terminated by Great Plains Energy under certain circumstances to enter into a definitive acquisition agreement with respect to a superior proposal, Great Plains Energy may be required to pay Westar a termination fee of $190 million.
Shareholder Lawsuits
Following the announcement of the Original Merger Agreement in May 2016, two putative class action complaints (which were consolidated and superseded by a consolidated complaint) were filed in the District Court of Shawnee County, Kansas. On October 20, 2017, the lead plaintiff in that consolidated putative class action filed an amended class action petition. The amended petition named as defendants Westar, the Westar Board, Great Plains Energy, Holdco and Merger Sub. The amended petition challenged the proposed merger and alleged breaches of fiduciary duties against the Westar Board in connection with the proposed merger, including the duty of candor, and that Westar, Great Plains Energy, Holdco and Merger Sub aided and abetted such breaches of fiduciary duties.
On September 21, 2017, a putative class action lawsuit was filed in the U.S. District Court for the District of Kansas. The federal class action complaint named as defendants Westar, the Westar Board, Great Plains Energy, Holdco and Merger Sub. The complaint challenged the merger and alleged violations of section 14(a) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) against all of the defendants and violations of section 20(a) of the Exchange Act against the Westar Board.
On October 6, 2017, a putative class action lawsuit was filed in the U.S. District Court for the District of Kansas. The federal class action complaint named as defendants Westar, the Westar Board, Great Plains Energy, Holdco and Merger Sub. The complaint challenged the proposed merger and alleged violations of section 14(a) of the Exchange Act against Westar and the Westar Board and violations of section 20(a) of the Exchange Act against the Westar Board, Great Plains Energy, Holdco and Merger Sub.
On October 13, 2017, a putative class action lawsuit was filed in the U.S. District Court for the Western District of Missouri, Western Division. The federal class action complaint named as defendants Great Plains Energy and the Great Plains Energy Board. The complaint challenged the proposed merger and alleged violations of section 14(a) of the Exchange Act against all of the defendants and violations of section 20(a) of the Exchange Act against the Great Plains Energy Board.
On October 18, 2017, a putative derivative complaint was filed in Shawnee County, Kansas. This putative derivative action named as defendants the Westar Board, Great Plains Energy, Holdco and Merger Sub, with Westar named as a nominal defendant. The complaint challenged the proposed merger and alleged that the Westar Board determined to forego a $380 million break-up fee allegedly payable to Westar associated with the Original Merger Agreement, breached their fiduciary duties to Westar shareholders in connection with the proposed merger, and that Great Plains Energy, Holdco and Merger Sub aided and abetted such breaches of fiduciary duties.
On November 16, 2017, the plaintiffs in these lawsuits agreed in principle to dismiss the lawsuits and, in exchange, Great Plains Energy, Westar Energy and Holdco agreed, solely in order to avoid the risk that litigation might delay or otherwise adversely affect the consummation of the proposed merger under the Amended Merger Agreement and to minimize the expense of defending such actions, to make supplemental disclosures to the Joint Proxy Statement/Prospectus, which were made on Forms 8-K dated November 16, 2017. The lawsuits have been dismissed. These dismissals do not release or otherwise prejudice any potential claims of any member of the putative class, other than for the plaintiffs in these lawsuits, and do not constitute any admission by any of the defendants as to the merits of any claims.
Redemption of Acquisition Financing
In order to fund the cash portion of the acquisition under the Original Merger Agreement, Great Plains Energy completed registered public offerings of 60.5 million shares of common stock for total net proceeds of $1.55 billion

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and 17.3 million depositary shares each representing a 1/20th interest in a share of Series B Preferred Stock for total net proceeds of $836.2 million in October 2016 and issued, at a discount, $4.3 billion of senior notes in March 2017. Great Plains Energy also entered into a stock purchase agreement with OMERS, pursuant to which Great Plains Energy would issue and sell to OMERS 750,000 shares of preferred stock of Great Plains Energy designated as 7.25% Mandatory Convertible Preferred Stock, Series A (Series A Preferred Stock), without par value, for an aggregate purchase price equal to $750 million at the closing of the acquisition.
In addition to the financings discussed above, Great Plains Energy also entered into a senior unsecured bridge term loan facility in connection with the Original Merger Agreement in an aggregate principal amount of $8.017 billion (which was subsequently reduced to $864.5 million as a result of the completed financings noted above) to support the anticipated transaction and provide flexibility for the timing of long-term financing.
comprehensive income. As a result of the Amended Merger Agreement,elevated market prices experienced in regional power markets across the following occurred with regardscentral and southern United States driven by the February 2021 winter weather event discussed above, Evergy and Evergy Kansas Central recorded $94.5 million of energy marketing margins in 2021 related to Great Plains Energy's acquisition financing arrangements:
In July 2017, Great Plains Energy redeemed its $4.3 billion of senior notes at a redemption price of 101% of the aggregate principle amount, plus accrued and unpaid interest. See Note 12 for additional information;
In August 2017, Great Plains Energy redeemed its Series B Preferred Stock at a redemption price that was equal to a make-whole formula set forthFebruary 2021 winter weather event, primarily driven by activities in the termsElectric Reliability Council of the Series B Preferred Stock. See Note 14 for additional information;Texas (ERCOT).
Evergy Equity Investment
From time to time, Evergy makes limited equity investments in early-stage energy solution companies. These investments have historically not had a significant impact on Evergy's results of operations. In July 2017, Great Plains Energy and OMERS terminated their stock purchase agreement for $750October 2021, an equity investment in which Evergy held a minority stake through an initial investment of $3.7 million of Series A Preferred Stock.was acquired through a transaction involving a special purpose acquisition company (SPAC). As a result of this termination, Great Plains Energy recorded $15 million of previously deferred offering fees to non-operating expensesits equity investment in the third quartercompany that was acquired in the SPAC transaction, Evergy received shares of 2017; and
In July 2017, Great Plains Energy terminated its $864.5 million unsecured bridge term loan facility.
Under the Amended Merger Agreement, Great Plains Energy is required to have not less than $1.25 billion in cash and cash equivalents on its balance sheet atresulting public company upon the closing of the anticipated merger with Westar. It is expected that this excess cash will be returnedtransaction, which are subject to shareholdersa restriction on sale of up for 150 days. Evergy recorded a $27.7 million unrealized gain in the fourth quarter of 2021 for the conversion of its shares into the newly formed public company and based on the closing share price as of December 31, 2021 adjusted to reflect the restriction on the sale of the combined company throughshares. The fair value of Evergy's investment is largely dependent on the repurchase of common stock over time after the closingperformance of the anticipated merger.

new public company's stock, which is subject to significant market volatility and is also affected by the restriction on sale of the shares until March 2022, when the restriction expires.
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2. REVENUE
3. SUPPLEMENTAL CASH FLOW INFORMATIONEvergy's, Evergy Kansas Central's and Evergy Metro's revenues disaggregated by customer class are summarized in the following tables.
Evergy
202120202019
Revenues(millions)
Residential$1,918.3 $1,909.2 $1,908.1 
Commercial1,681.3 1,641.7 1,781.6 
Industrial597.0 588.7 621.6 
Other retail33.1 38.5 47.1 
Total electric retail$4,229.7 $4,178.1 $4,358.4 
Wholesale717.2 264.0 327.5 
Transmission356.8 318.5 309.2 
Industrial steam and other25.4 21.0 24.5 
Total revenue from contracts with customers$5,329.1 $4,781.6 $5,019.6 
Other257.6 131.8 128.2 
Operating revenues$5,586.7 $4,913.4 $5,147.8 
Evergy Kansas Central
202120202019
Revenues(millions)
Residential$824.1 $801.2 $793.9 
Commercial694.1 665.6 709.1 
Industrial391.7 379.9 401.3 
Other retail17.1 17.7 21.0 
Total electric retail$1,927.0 $1,864.4 $1,925.3 
Wholesale453.1 215.4 239.9 
Transmission322.9 287.3 273.3 
Other2.2 2.3 5.8 
Total revenue from contracts with customers$2,705.2 $2,369.4 $2,444.3 
Other142.1 48.7 63.1 
Operating revenues$2,847.3 $2,418.1 $2,507.4 
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Great Plains Energy Other Operating Activities  
Year Ended December 312017 2016 2015
Cash flows affected by changes in:(millions)
Receivables$14.8
 $(18.3) $12.5
Accounts receivable pledged as collateral(7.6) 2.6
 (4.0)
Fuel inventories5.6
 9.6
 (28.3)
Materials and supplies(9.0) (6.5) (3.0)
Accounts payable9.0
 (25.4) (11.4)
Accrued taxes1.5
 8.1
 1.1
Accrued interest(8.0) 6.1
 3.4
Deferred refueling outage costs15.5
 (3.1) (6.7)
Pension and post-retirement benefit obligations26.1
 27.4
 18.5
Allowance for equity funds used during construction(6.0) (6.6) (4.8)
Fuel recovery mechanisms(11.4) (46.9) 47.5
ARO settlements(28.5) (17.4) (4.1)
Other20.6
 28.1
 (7.8)
Total other operating activities$22.6
 $(42.3) $12.9
Cash paid during the period: 
  
  
Interest$258.9
 $191.2
 $182.2
Income taxes$—
 $0.1
 $0.1
Non-cash investing activities:   
  
Liabilities accrued for capital expenditures$39.8
 $32.4
 $35.7
KCP&L Other Operating Activities  
Year Ended December 312017 2016 2015
Cash flows affected by changes in:(millions)
Receivables$13.8
 $(12.4) $2.6
Accounts receivable pledged as collateral(20.0) —
 —
Fuel inventories1.9
 10.6
 (24.7)
Materials and supplies(7.1) (4.3) (4.5)
Accounts payable11.7
 (30.5) (18.0)
Accrued taxes9.1
 67.9
 (19.0)
Accrued interest—
 —
 3.4
Deferred refueling outage costs15.5
 (3.1) (6.7)
Pension and post-retirement benefit obligations27.3
 28.6
 18.4
Allowance for equity funds used during construction(6.0) (6.6) (3.8)
Fuel recovery mechanisms8.3
 (53.7) 3.5
ARO settlements(25.5) (15.0) (4.1)
Other(9.0) 16.4
 (8.6)
Total other operating activities$20.0
 $(2.1) $(61.5)
Cash paid during the period: 
  
  
Interest$128.0
 $127.0
 $120.2
Income taxes$38.8
 $—
 $—
Non-cash investing activities:   
  
Liabilities accrued for capital expenditures$32.9
 $27.2
 $23.9

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Evergy Metro
202120202019
Revenues(millions)
Residential$691.9 $714.7 $712.4 
Commercial713.3 717.1 786.1 
Industrial122.0 128.8 136.9 
Other retail9.2 11.7 16.3 
Total electric retail$1,536.4 $1,572.3 $1,651.7 
Wholesale242.6 35.0 70.9 
Transmission17.1 13.9 17.5 
Other3.6 2.6 2.8 
Total revenue from contracts with customers$1,799.7 $1,623.8 $1,742.9 
Other114.0 81.8 63.6 
Operating revenues$1,913.7 $1,705.6 $1,806.5 
4.
Retail Revenues
The Evergy Companies' retail revenues are generated by the regulated sale of electricity to their residential, commercial and industrial customers within their franchised service territories. The Evergy Companies recognize revenue on the sale of electricity to their customers over time as the service is provided in the amount they have a right to invoice. Retail customers are billed monthly at the tariff rates approved by the KCC and MPSC based on customer kWh usage.
Revenues recorded include electric services provided but not yet billed by the Evergy Companies. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. The Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates.
The Evergy Companies also collect sales taxes and franchise fees from customers concurrent with revenue-producing activities that are levied by state and local governments. These items are excluded from revenue, and thus not reflected on the statements of income and comprehensive income, for Evergy, Evergy Kansas Central and Evergy Metro.
Wholesale Revenues
The Evergy Companies' wholesale revenues are generated by the sale of wholesale power and capacity in circumstances when the power that the Evergy Companies generate is not required for customers in their service territory. These sales primarily occur within the SPP Integrated Marketplace. The Evergy Companies also purchase power from the SPP Integrated Marketplace and record sale and purchase activity on a net basis in wholesale revenue or fuel and purchased power expense. In addition, the Evergy Companies sell wholesale power and capacity through bilateral contracts to other counterparties, such as electric cooperatives, municipalities and other electric utilities.
For both wholesale sales to the SPP Integrated Marketplace and through bilateral contracts, the Evergy Companies recognize revenue on the sale of wholesale electricity to their customers over time as the service is provided in the amount they have a right to invoice.
Wholesale sales within the SPP Integrated Marketplace are billed weekly based on the fixed transaction price determined by the market at the time of the sale and the MWh quantity purchased. Wholesale sales from bilateral contracts are billed monthly based on the contractually determined transaction price and the kWh quantity purchased.
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Transmission Revenues
The Evergy Companies' transmission revenues are generated by the use of their transmission networks by the SPP. To enable optimal use of the diverse generating resources in the SPP region, the Evergy Companies, as well as other transmission owners, allow the SPP to access and operate their transmission networks. As new transmission lines are constructed, they are included in the transmission network available to the SPP. In exchange for providing access, the SPP pays the Evergy Companies consideration determined by formula rates approved by the Federal Energy Regulatory Commission (FERC), which include the cost to construct and maintain the transmission lines and a return on investment. The price for access to the Evergy Companies' transmission networks are updated annually based on projected costs. Projections are updated to actual costs and the difference is included in subsequent year's prices.
The Evergy Companies have different treatment for their legacy transmission facilities within the SPP, which results in different levels of transmission revenue being received from the SPP. Evergy Kansas Central's transmission revenues from SPP include amounts that Evergy Kansas Central pays to the SPP on behalf of its retail electric customers for the use of Evergy Kansas Central's legacy transmission facilities. These transmission revenues are mostly offset by SPP network transmission cost expense that Evergy Kansas Central pays on behalf of its retail customers. Evergy Metro and Evergy Missouri West do not pay the SPP for their retail customers’ use of the Evergy Metro and Evergy Missouri West legacy transmission facilities and correspondingly, their transmission revenues also do not reflect the associated transmission revenue from the SPP.
The Evergy Companies recognize revenue on the sale of transmission service to their customers over time as the service is provided in the amount they have a right to invoice. Transmission service to the SPP is billed monthly based on a fixed transaction price determined by FERC formula transmission rates along with other SPP-specific charges and the MW quantity purchased.
Industrial Steam and Other Revenues
Evergy's industrial steam and other revenues are primarily generated by the regulated sale of industrial steam to Evergy Missouri West's steam customers. Evergy recognizes revenue on the sale of industrial steam to its customers over time as the service is provided in the amount that it has the right to invoice. Steam customers are billed on a monthly basis at the tariff rate approved by the MPSC based on customer MMBtu usage.
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3. RECEIVABLES
Great Plains Energy's and KCP&L'sThe Evergy Companies' receivables are detailed in the following table.
December 31
20212020
Evergy(millions)
Customer accounts receivable - billed$13.7 $5.3 
Customer accounts receivable - unbilled80.1 110.0 
Other receivables160.7 177.9 
Allowance for credit losses(32.9)(19.3)
Total$221.6 $273.9 
Evergy Kansas Central
Customer accounts receivable - billed$9.7 $— 
Customer accounts receivable - unbilled26.4 50.7 
Other receivables178.5 175.7 
Allowance for credit losses(13.0)(7.5)
Total$201.6 $218.9 
Evergy Metro  
Customer accounts receivable - billed$2.7 $3.3 
Customer accounts receivable - unbilled25.9 27.9 
Other receivables15.7 21.9 
Allowance for credit losses(13.3)(8.1)
Total$31.0 $45.0 
 December 31
  2017  2016 
Great Plains Energy (millions) 
Customer accounts receivable - billed $3.7
  $26.2
 
Customer accounts receivable - unbilled 103.2
  79.1
 
Allowance for doubtful accounts - customer accounts receivable (4.7)  (4.0) 
Other receivables 49.5
  64.7
 
Total $151.7
  $166.0
 
KCP&L  
   
 
Customer accounts receivable - billed $1.6
  $25.5
 
Customer accounts receivable - unbilled 67.6
  63.7
 
Allowance for doubtful accounts - customer accounts receivable (2.2)  (1.8) 
Other receivables 39.3
  51.7
 
Total $106.3
  $139.1
 
Great Plains Energy's and KCP&L'sThe Evergy Companies' other receivables at December 31, 20172021 and 2016,2020, consisted primarily of receivables from partners in jointly ownedjointly-owned electric utility plants, and wholesale sales receivables.receivables and receivables related to alternative revenue programs. The Evergy Companies' other receivables also included receivables from contracts with customers as summarized in the following table.
December 31
20212020
(millions)
Evergy$63.7 $57.5 
Evergy Kansas Central62.6 49.9 
Evergy Metro0.5 6.9 
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The change in the Evergy Companies' allowance for credit losses is summarized in the following table.
20212020
Evergy(millions)
Beginning balance January 1$19.3 $10.5 
Credit loss expense28.0 24.9 
Write-offs(26.4)(28.6)
Recoveries of prior write-offs12.0 12.5 
Ending balance December 31$32.9 $19.3 
Evergy Kansas Central
Beginning balance January 1$7.5 $3.8 
Credit loss expense12.0 11.1 
Write-offs(11.0)(10.0)
Recoveries of prior write-offs4.5 2.6 
Ending balance December 31$13.0 $7.5 
Evergy Metro
Beginning balance January 1$8.1 $4.6 
Credit loss expense10.5 9.0 
Write-offs(10.6)(12.4)
Recoveries of prior write-offs5.3 6.9 
Ending balance December 31$13.3 $8.1 
Sale of Accounts Receivable – KCP&L
Evergy Kansas Central, Evergy Metro and GMO
KCP&L and GMO sell all of their retail electric accounts receivable to their wholly owned subsidiaries, KCP&L Receivables Company and GMO Receivables Company, respectively, which in turnEvergy Missouri West sell an undivided percentage ownership interest in thetheir retail electric accounts receivable to Victory Receivables Corporation, an independent outside investor. Each of KCP&L Receivables Company's and GMO Receivables Company's sale of the undivided percentage ownership interest in accounts receivable to Victory Receivables Corporation isinvestors. These sales are accounted for as a secured borrowingborrowings with accounts receivable pledged as collateral and a corresponding short-term collateralized note payable recognized on the balance sheets.  At December 31, 2017 and 2016, Great Plains Energy'sThe Evergy Companies' accounts receivable pledged as collateral and the corresponding short-term collateralized note payable were $180.0 million and $172.4 million, respectively. At December 31, 2017 and 2016, KCP&L's accounts receivable pledged as collateral andare summarized in the corresponding short-term collateralized note payable were $130.0 million and $110.0 million, respectively. In September 2017, KCP&L and GMO amended their respectivefollowing table.
December 31
20212020
(millions)
Evergy$319.0 $360.0 
Evergy Kansas Central153.0 180.0 
Evergy Metro116.0 130.0 
Each receivable sale agreements with Victory Receivables Corporation to extend the termination date to September 2018facility expires in 2024. Evergy Kansas Central's facility allows for $185.0 million in aggregate outstanding principal amount of borrowings from mid-October through mid-June and to allowthen $200.0 million from mid-June through mid-October. Evergy Metro's facility allows for $130$130.0 million in aggregate outstanding principal amount of borrowings at any timetime. Evergy Missouri West's facility allows for KCP&L and $50$50.0 million in aggregate outstanding principal amount of borrowings from mid-November through mid-June and then $65$65.0 million from mid-June through mid-November for GMO.mid-November.
5. NUCLEAR PLANT4. RATE MATTERS AND REGULATION
KCP&L owns 47% of Wolf Creek, its only nuclear generating unit.  Wolf Creek is located in Coffey County,KCC Proceedings
Evergy Kansas just northeast of Burlington, Kansas.  Wolf Creek's operating license expires in 2045.  Wolf Creek is regulated by the NRC with respect to licensing, operations and safety-related requirements.
Spent Nuclear Fuel and High-Level Radioactive Waste
Under the Nuclear Waste Policy Act of 1982, the Department of Energy (DOE) is responsible for the permanent disposal of spent nuclear fuel.  Wolf Creek historically paid the DOE a quarterly fee of one-tenth of a cent for each kWh of net nuclear generation delivered and sold for the future disposal of spent nuclear fuel. In May 2014, this fee was set to zero.Central 2021 Transmission Delivery Charge (TDC)
In 2010,April 2021, the DOE filed a motion withKCC issued an order adjusting Evergy Kansas Central's retail prices to include updated transmission costs as reflected in the NRCFERC transmission formula rate (TFR). The new prices were effective in April 2021 and are expected to withdraw its then pending applicationincrease Evergy Kansas Central's annual retail revenues by $37.9 million when compared to the NRC to construct a national repository for the disposal of spent nuclear fuel and high-level radioactive waste at Yucca Mountain, Nevada.  An NRC board denied the DOE's motion to withdraw its application. In 2011, the NRC announced that it

2020.
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Evergy Metro 2021 TDC
was evenly dividedIn April 2021, the KCC issued an order adjusting Evergy Metro's retail prices to include updated transmission costs as reflected in the FERC TFR. The new prices were effective in May 2021 and are expected to decrease Evergy Metro's annual retail revenues by $2.4 million when compared to 2020.
Evergy Kansas Central and Evergy Metro Earnings Review and Sharing Plan (ERSP)
As part of their merger settlement agreement with the KCC, Evergy Kansas Central and Evergy Metro agreed to participate in an ERSP for the years 2019 through 2022. Under the ERSP, Evergy Kansas Central's and Evergy Metro's Kansas jurisdiction are required to refund to customers 50% of annual earnings in excess of their authorized return on whether to take affirmative action to overturn or uphold the board's decision and ordered the licensing board, consistent with budgetary limitations, to close out its work on the DOE's application.  In August 2013, a federal courtequity of appeals ruled that the NRC must resume its review of the DOE's application9.3% to the extent the excess earnings exceed the amount of appropriated funds. Withannual bill credits that Evergy Kansas Central and Evergy Metro agreed to provide in connection with the available funds,merger that resulted in the NRC was ableformation of Evergy.
Evergy Kansas Central's and Evergy Metro's 2020 calculations of annual earnings did not result in a significant refund obligation. As of December 31, 2021, Evergy Kansas Central estimates its 2021 annual earnings will not result in a refund obligation. As of December 31, 2021, Evergy Metro estimates its 2021 annual earnings will result in a $2.0 million refund obligation. The final refund obligations for 2021 will be decided by the KCC and could vary from the current estimates.
Evergy Kansas Central and Evergy Metro February 2021 Winter Weather Event AAO
In February 2021, the KCC issued an emergency AAO directing all Kansas-jurisdictional natural gas and electric utilities, including Evergy Kansas Central and Evergy Metro, to completedefer to a regulatory asset or regulatory liability any extraordinary costs or revenues, including carrying costs, to provide electric service during the February 2021 winter weather event for consideration in future rate proceedings.
As of December 31, 2021, Evergy Kansas Central had recognized a regulatory asset pursuant to the AAO of $121.5 million related to its technical reviewcosts incurred during the February 2021 winter weather event, primarily consisting of increased fuel and purchased power costs. As of December 31, 2021, Evergy Metro's Kansas jurisdiction had recognized a regulatory liability of $39.5 million related to its increased wholesale revenues during the February 2021 winter weather event.
In July 2021, Evergy Kansas Central and Evergy Metro made a joint filing with the KCC regarding the timing and method of recovery or refund for costs and revenues deferred pursuant to the February 2021 winter weather event AAO. In the filing, Evergy Kansas Central and Evergy Metro requested to recover or refund, as appropriate, their deferred February 2021 winter weather event amounts to customers through their fuel recovery mechanisms over two years and one year, respectively, beginning in April 2022. As part of the Yucca Mountain application but wasfiling, Evergy Metro also requested an approximately $6 million decrease to its February 2021 winter weather event refund to Kansas customers, which is not able to resumecurrently reflected in its regulatory liability for the licensing hearing. February 2021 winter weather event, for jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms.
Wolf Creek is currently evaluating alternatives for expanding its existing on-site spent nuclear fuel storage to provide additional capacity prior to 2025. Management cannot predict when, or if, an off-site storage site or alternative disposal site will be available to receive Wolf Creek's spent nuclear fuelIn January 2022, KCC staff filed their report and will continue to monitor this activity.  
Low-Level Radioactive Waste
Wolf Creek disposesrecommendation regarding the February 2021 winter weather event and the related costs and revenues deferred by Evergy Kansas Central and Evergy Metro as a result of mostthe AAO granted by the KCC in February 2021. The report concluded that the costs incurred and revenues earned by Evergy Kansas Central and Evergy Metro during the February 2021 winter weather event were prudent. The KCC staff also recommended the following: (1) that Evergy Metro extend the time period of its low-level radioactive waste (Class A waste) at an existing third-party repository in Utah.  Management expectsrefund to customers from one year to two years; (2) that the site locatedKCC reject the approximately $6 million reduction in Utah will remain availablerefund to Wolf Creek for disposal ofcustomers requested by Evergy Metro due to jurisdictional allocation differences in its Class A waste.  Wolf Creek has contracted with a waste processorKansas and Missouri fuel recovery mechanisms and (3) that will process, take title and dispose in another state most of the remainder of Wolf Creek's low-level radioactive waste (Classes B and C waste, which is higher in radioactivity but much lower in volume).  Should on-site waste storage be needed in the future, Wolf Creek has current storage capacity on site for about four years' generation of Classes B and C waste and believes it will be able to expand that storage capacity as needed if it becomes necessary to do so.
Nuclear Plant Decommissioning Costs
The MPSC and KCC require KCP&LEvergy Metro and the other ownersactive parties in the case work to determine the appropriate level of Wolf Creek to submit an updated decommissioning cost study every three years and to propose funding levels. The most recent study was submittedcarrying charges that should apply to the MPSCamounts deferred related to the February 2021 winter weather event.
A decision by the KCC regarding Evergy Kansas Central’s and KCC in September 2017 andEvergy Metro’s joint filing is the basis for the current cost of decommissioning estimatesexpected in the following table. Funding levels included in KCP&L retail rates have not changed. The actual nuclear decommissioning costs may vary from these estimates becausefirst half of changes in regulations and technologies as well as changes in costs for labor, materials and equipment.2022.
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  KCC MPSC 
 (millions)
Current cost of decommissioning (in 2017 dollars)     
Total Station $813.7
 $813.7
 
KCP&L's 47% Share 382.5
 382.5
 
      
Future cost of decommissioning (in 2045-2053 dollars) (a)
     
Total Station $1,982.4
 $2,137.8
 
KCP&L's 47% Share 931.7
 1,004.8
 
      
Annual escalation factor 2.91% 3.16% 
Annual return on trust assets (b)
 5.64% 5.46% 
(a)Total future cost over an eight year decommissioning period
(b)The 5.64% KCC rate of return is through 2029 and then systematically decreases through 2053 to 0.32%. The 5.46% MPSC rate of return is through 2027 and then systematically decreases through 2053 to 2.22%. The KCC and MPSC rates of return systematically decrease based on the assumption that the fund's investment mix will become increasingly conservative as the decommissioning period approaches.

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Nuclear Decommissioning Trust FundLawrence Energy Center (LEC) Unit 4 Securitization
In 2017April 2021, the state of Kansas passed the Utility Financing and 2016, KCP&L contributedSecuritization Act (UFSA) which allows certain public utilities, including Evergy Kansas Central and Evergy Metro, to securitize utility assets in order to recover energy transition costs relating to the early retirement of certain generating assets. To recover the energy transition costs through securitization as allowed in the UFSA, a public utility must obtain a predetermination order from the KCC finding that the retirement of the subject generation facility is reasonable. Upon the receipt of a successful predetermination order, the public utility must then file an application with the KCC for a financing order to issue securitized bonds to recover the energy transition costs. The UFSA also allows the pursuit of securitization to help finance qualified extraordinary expenses, such as fuel costs incurred during extreme weather events.
In September 2021, Evergy Kansas Central filed a predetermination request with the KCC for the ratemaking principles and treatment related to its planned investment in approximately $3.3 million190 MW of solar generation and the planned retirement of coal-fired LEC Unit 4 and related coal-handling facilities for LEC Units 4 and 5, both of which are expected to a tax-qualified trust fundoccur between December 2023 and the first half of 2024. In February 2022, Evergy Kansas Central withdrew its predetermination request with the KCC in order to be usedfinalize definitive documentation associated with the solar investment and to decommission Wolf Creek. Amounts funded are chargeddevelop additional information to other operating expense and recoveredenable the KCC to evaluate its predetermination request. Evergy Kansas Central anticipates refiling its predetermination request, including this additional information, later in customers' rates. The funding level assumes a projected level of return on trust assets. 2022.
If the actual return on trust assetsKCC finds that Evergy Kansas Central's planned retirement of LEC Unit 4 and investment in 190 MW of solar generation is belowprudent as part of a predetermination request, Evergy Kansas Central then plans to file an application with the projected level or actual decommissioning costs are higher than estimated, KCP&L could be responsibleKCC for a financing order authorizing the balanceissuance of funds required; however, while there can be no assurances, management believes a rate increase would be allowedsecuritized bonds to recover decommissioningenergy transition costs overassociated with the remaining liferetirement of the unit.

The following table summarizes the change in Great Plains Energy's and KCP&L's nuclear decommissioning trust fund.
 20172016
Decommissioning Trust (millions) 
Beginning balance January 1 $222.9
   $200.7
 
Contributions 3.3
   3.3
 
Earned income, net of fees 4.3
   4.1
 
Net realized gains 0.7
   0.3
 
Net unrealized gains 27.2
   14.5
 
Ending balance December 31 $258.4
   $222.9
 
The nuclear decommissioning trust is reported at fair value on the balance sheets and is invested in assets as detailed in the following table.
 December 31
 2017  2016 
 
Cost
Basis
 Unrealized Gains 
Unrealized
Losses
 
Fair
Value
 
Cost
Basis
  
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 (millions)
Equity securities$96.5
  $88.3
   $(1.0)   $183.8
   $93.3
   $62.1
   $(1.5)   $153.9
 
Debt securities69.7
  2.7
   (0.4)   72.0
   63.4
   2.3
   (0.5)   65.2
 
Other2.6
  —
   —
   2.6
   3.8
   —
   —
   3.8
 
Total$168.8
  $91.0
   $(1.4)   $258.4
   $160.5
   $64.4
   $(2.0)   $222.9
 
The weighted average maturity of debt securities held by the trust at December 31, 2017, was approximately 9 years.  The costs of securities sold are determined on the basis of specific identification.  The following table summarizes the realized gains and losses from the sale of securities in the nuclear decommissioning trust fund.
 2017 2016 2015
 (millions)
Realized gains$2.5
 $1.6
 $5.3
Realized losses(1.8) (1.3) (4.6)
Nuclear Insurance
The owners of Wolf Creek (Owners) maintain nuclear insurance for Wolf Creek for nuclear liability, nuclear property and accidental outage. These policies contain certain industry standard exclusions, including, but not limited to, ordinary wear and tear, and war. The nuclear property insurance programs subscribed to by members of the nuclear power generating industry include industry aggregate limits for acts of terrorism and related losses, including replacement power costs. There is no industry aggregate limit for liability claims related to terrorism, regardless of the number of acts of terrorism affecting Wolf Creek or any other nuclear energy liability policy or the number of policies in place. An industry aggregate limit of $3.2 billion plus any reinsurance recoverable by Nuclear Electric Insurance Limited (NEIL), the Owners' insurance provider, exists for property claims related to nuclear acts of terrorism, including accidental outage power costs for nuclear acts of terrorism affecting Wolf Creek or any other nuclear energy facility property policy within twelve months from the date of the first act. An industry

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aggregate limit of $1.8 billion exists for property claims related to non-nuclear acts of terrorism. These limits plus any recoverable reinsurance are the maximum amount to be paid to members who sustain losses or damages from these types of terrorist acts. In addition, industry-wide retrospective assessment programs (discussed below) can apply once these insurance programs have been exhausted.
In the event of a catastrophic loss at Wolf Creek, the insurance coverage may not be adequate to cover property damage and extra expenses incurred. Uninsured losses, to the extent not recovered through rates, would be assumed by KCP&LLEC Unit 4 and the other ownersrelated coal-handling facilities for LEC Units 4 and could have a material effect on Great Plains Energy's and KCP&L's results of operations, financial position and cash flows.5.
Nuclear Liability InsuranceMPSC Proceedings
Pursuant to the Price-Anderson Act, which was reauthorized through December 31, 2025, by the Energy Policy Act of 2005, the Owners are required to insure against public liability claims resulting from nuclear incidents to the full limit of public liability, which is currently $13.5 billion. This limit of liability consists of the maximum available commercial insurance of $0.5 billion and the remaining $13.0 billion is provided through an industry-wide retrospective assessment program mandated by law, known as the Secondary Financial Protection (SFP) program. Under the SFP program, the Owners can be assessed up to $127.3 million ($59.8 million, KCP&L's 47% share) per incident at any commercial reactor in the country, payable at no more than $19.0 million ($8.9 million, KCP&L's 47% share) per incident per year. This assessment is subject to an inflation adjustment based on the Consumer Price Index and applicable premium taxes. In addition, the U.S. Congress could impose additional revenue-raising measures to pay claims.
Nuclear Property Insurance
The Owners carry decontamination liability, premature decommissioning liability and property damage insurance from NEIL for Wolf Creek totaling approximately $2.8 billion ($1.3 billion, KCP&L's 47% share). In the event of an accident, insurance proceeds must first be used for reactor stabilization and site decontamination in accordance with a plan mandated by the NRC. KCP&L's share of any remaining proceeds can be used for further decontamination, property damage restoration and premature decommissioning costs. Premature decommissioning coverage applies only if an accident at Wolf Creek exceeds $500 million in property damage and decontamination expenses, and only after trust funds have been exhausted.
Accidental Nuclear Outage Insurance
The Owners also carry additional insurance from NEIL to cover costs of replacement power and other extra expenses incurred in the event of a prolonged outage resulting from accidental property damage at Wolf Creek.
Under all NEIL policies, the Owners are subject to retrospective assessments if NEIL losses, for each policy year, exceed the accumulated funds available to the insurer under that policy. The estimated maximum amount of retrospective assessments under the current policies could total approximately $37.4 million ($17.6 million, KCP&L's 47% share) per policy year.
6. REGULATORY MATTERS
KCP&L Missouri 2018Evergy Metro 2022 Rate Case ProceedingsProceeding
In January 2018, KCP&L2022, Evergy Metro filed an application with the MPSC to request an increase to its retail revenues of $8.9$43.9 million before rebasing fuel and purchased power expense, with a return on equity of 9.85%10% and a rate-making equity ratio of 50.03%51.19%. The request reflects increases related to higher property taxes and the impactrecovery of infrastructure investments made to improve reliability and enhance customer service and were also partially offset by significant customer savings and cost reductions created since the Tax CutGreat Plains Energy and Jobs Act and increasesEvergy Kansas Central merger in infrastructure investment costs, transmission related costs and property tax costs. KCP&L2018. Evergy Metro also requested an additional $7.5$3.8 million increase associated with rebasing fuel and purchased power expense.expense as well as the implementation of tracking mechanisms for both property tax expense and credit loss expense and the creation of a storm reserve as part of its application with the MPSC.
GMOAn evidentiary hearing in the case is expected to occur in September 2022 and new rates are expected to be effective in December 2022.
Evergy Missouri 2018West 2022 Rate Case ProceedingsProceeding
In January 2018, GMO filed an application with the MPSC to request a decrease to its retail revenues of $2.4 million before rebasing fuel and purchased power expense, with a return on equity of 9.85% and a rate-making equity ratio of 54.4%. The request reflects the impact of the Tax Cut and Jobs Act and increases in infrastructure

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investment costs and transmission related costs. GMO also requested a $21.7 million increase associated with rebasing fuel and purchased power expense.
KCP&L Kansas 2016 Abbreviated Rate Case Proceedings
In November 2016, KCP&L filed an abbreviated application with KCC to request a decrease to its retail revenues of $2.8 million, reflecting the true-up to actuals of construction and environmental upgrade costs at the La Cygne Station and Wolf Creek capital addition costs and the removal of certain regulatory asset and liability amortizations. The previously approved return on equity and rate-making ratio for KCP&L was not addressed in this case. In April 2017, KCP&L, KCC staff and the Citizens' Utility Ratepayer Board filed a joint motion to approve a unanimous settlement agreement with KCC that requested a decrease in retail revenues of $3.6 million. In June 2017, KCC issued an order approving the unanimous settlement agreement. The rates established by the order took effect on June 28, 2017.
KCP&L2022, Evergy Missouri 2016 Rate Case Proceedings
In July 2016, KCP&LWest filed an application with the MPSC to request an increase to its retail revenues of $62.9$27.7 million before rebasing fuel and purchased power expense, with a return on equity of 9.9%10% and a rate-making equity ratio of 49.88%51.81%. The request reflects increases related to higher property taxes and the recovery of infrastructure investments made to improve reliability and enhance customer service and were also partially offset by significant customer savings and cost reductions created since the Great Plains Energy and Evergy Kansas Central merger in infrastructure investment costs, costs for regional transmission lines, property tax costs and costs to comply with environmental and cybersecurity mandates. KCP&L2018. Evergy Missouri West also requested an additional $27.2$32.1 million increase associated with rebasing fuel and purchased power expense.expense, the implementation of tracking mechanisms for both property tax expense and credit loss expense, the creation of a storm reserve, and the full return of and return on its unrecovered investment related to the 2018 retirement of Sibley Station as part of its application with the MPSC.
An evidentiary hearing in the case is expected to occur in September 2022 and new rates are expected to be effective in December 2022.
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Evergy Missouri West Other Proceedings
In May 2017,December 2018, the Office of the Public Counsel (OPC) and the Midwest Energy Consumers Group (MECG) filed a petition with the MPSC issuedrequesting an AAO that would require Evergy Missouri West to record a regulatory liability for all revenues collected from customers for return on investment, non-fuel operations and maintenance costs, taxes including accumulated deferred income taxes, and all other costs associated with Sibley Station following the station’s retirement in November 2018.
In October 2019, the MPSC granted OPC's and MECG's request for an AAO and required Evergy Missouri West to record a regulatory liability for the revenues discussed above for consideration in Evergy Missouri West's current rate case. Depending on the MPSC's decision in the current rate case, Evergy Missouri West could be required to refund to customers all or a portion of amounts collected in revenue for Sibley Station since December 2018 or, alternatively, could be required to make no refunds. As part of its current rate case, Evergy Missouri West is proposing to refund to customers the revenues collected from customers for non-fuel operations and maintenance costs and other costs associated with Sibley Station following the station's retirement but not the return on investment.
As a result of the MPSC order, Evergy has recorded a regulatory liability of $29.3 million as of December 31, 2021 for KCP&L authorizingthe estimated amount of revenues that Evergy Missouri West has collected from customers for Sibley Station since December 2018 that Evergy has determined is probable of refund. Evergy expects that it will continue to defer such amounts as collected from customers until new rates become effective in Evergy Missouri West's current rate case.
The accrual for this estimated amount does not include certain revenues collected related to Sibley Station that Evergy has determined to not be probable of refund in the current rate case based on the relevant facts and circumstances. Although Evergy has determined these additional revenues to not be probable of refund, the ultimate resolution of this matter in Evergy Missouri West's current rate case is uncertain and could result in an increaseestimated loss of approximately $50 million when new rates are expected to become effective in retailDecember 2022. Evergy's regulatory liability for probable refunds as of December 31, 2021 and estimated loss in excess of the amount accrued represent estimates that could change significantly based on ongoing developments including decisions in other regulatory proceedings that establish precedent applicable to this matter and positions of parties on this issue in Evergy Missouri West's 2022 rate case.
Evergy Metro and Evergy Missouri West February 2021 Winter Weather Event AAO
In June 2021, Evergy Metro and Evergy Missouri West filed a joint request for an AAO with the MPSC that would allow Evergy Metro and Evergy Missouri West to defer to a regulatory asset or regulatory liability any extraordinary costs or revenues, including carrying costs, to provide electric service during the February 2021 winter weather event for consideration in future proceedings.
Evergy Metro and Evergy Missouri West have currently deferred substantially all of $5.4 million before rebasingtheir fuel and purchased power expense,costs, net of wholesale revenues, related to the February 2021 winter weather event to a return on equityregulatory asset or liability pursuant to their ability to recover or refund these amounts through their fuel recovery mechanisms, which allow for the recovery or refund of 9.5% and a rate-making equity ratio95% of approximately 49.2%. The order also authorized a $27.1 million revenue increase associated with rebasingincreases in fuel and purchased power expense.costs, net of wholesale revenues, above the amount included in base rates to customers. This AAO request is intended to address the recovery or refund of the February 2021 winter weather event amounts separate from the normal fuel recovery mechanism process given the extraordinary nature of the February 2021 winter weather event and to help moderate customer bill impacts. As of December 31, 2021, Evergy Metro's Missouri jurisdiction had recognized a regulatory liability of $25.6 million related to its increased wholesale revenues during the February 2021 winter weather event. As of December 31, 2021, Evergy Missouri West had recognized a regulatory asset of $281.6 million related to its costs incurred during the February 2021 winter weather event, primarily consisting of increased fuel and purchased power costs.
In the AAO filing, Evergy Metro requested to refund its deferred February 2021 winter weather event amounts to customers through its fuel recovery mechanism over one year, beginning in April 2022. In the same AAO filing, Evergy Missouri West requested to exclude its deferred February 2021 winter weather event amounts from recovery through its fuel recovery mechanism and indicated its intent to recover them through issuing securitized bonds
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pursuant to the securitization legislation signed into law in Missouri in July 2021. As part of the filing, Evergy Metro also requested an approximately $5 million decrease to its February 2021 winter weather refund to Missouri customers, which is not currently reflected in its regulatory liability for the February 2021 winter weather event, for jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms and for the portion of net wholesale revenues not traditionally refundable because of the 5% sharing provision of its fuel recovery mechanism. Evergy Missouri West requested an approximately $15 million increase to its February 2021 winter weather event recovery from Missouri customers, which is not currently reflected in its regulatory asset for the February 2021 winter weather event, for the portion of net fuel and purchased power costs not traditionally recoverable because of the 5% sharing provision of its fuel recovery mechanism.
In September 2021, MPSC staff filed their recommendation regarding the February 2021 winter weather event and the related costs and revenues deferred by Evergy Metro and Evergy Missouri West. The rates establishedMPSC staff recommended that the MPSC reject Evergy Metro’s AAO request, including the approximately $5 million reduction in refund to customers requested by Evergy Metro due to jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms, and refund the excess wholesale revenues from the February 2021 winter weather event to customers through its normal fuel recovery mechanism process. The MPSC staff recommended that the MPSC approve Evergy Missouri West’s AAO request, including the approximately $15 million of additional recovery requested related to the 5% sharing provision of its fuel recovery mechanism, but that the AAO deferral should not include carrying costs as they should be determined in a future ratemaking proceeding.
A decision by the order took effect on June 8, 2017.MPSC regarding Evergy Metro’s and Evergy Missouri West’s joint request is expected in the first half of 2022.

FERC Proceedings
In October of each year, Evergy Kansas Central and Evergy Metro post an updated TFR that includes projected transmission capital expenditures and operating costs for the following year. This rate is the most significant component in the retail rate calculation for Evergy Kansas Central's and Evergy Metro's annual request with the KCC to adjust retail prices to include updated transmission costs through the TDC.
Evergy Kansas Central TFR
In the most recent three years, the updated TFR was expected to adjust Evergy Kansas Central's annual transmission revenues by approximately:
•$33.2 million increase effective in January 2022;
•$32.4 million increase effective in January 2021; and
•$6.8 million increase effective in January 2020.
Evergy Metro TFR
In the most recent three years, the updated TFR was expected to adjust Evergy Metro's annual transmission revenues by approximately:
•$18.1 million increase effective in January 2022;
•$3.9 million decrease effective in January 2021; and
•$1.7 million decrease effective in January 2020.
Regulatory Assets and Liabilities
Great Plains Energy and KCP&LThe Evergy Companies have recorded assets and liabilities on their consolidated balance sheets resulting from the effects of the ratemaking process, which would not otherwise be recorded if the Companiesthey were not regulated. Regulatory assets represent incurred costs that are probable of recovery from future revenues. Regulatory liabilities represent future reductions in revenues or refunds to customers.
Management regularly assesses whether regulatory assets and liabilities are probable of future recovery or refund by considering factors such as decisions by the MPSC, KCC or FERC in KCP&L'sEvergy Kansas Central's, Evergy Metro's and GMO's
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Evergy Missouri West's rate case filings; decisions in other regulatory proceedings, including decisions related to other companies that establish precedent on matters applicable to the Evergy Companies; and changes in laws and regulations. If recovery or refund of regulatory assets or liabilities is not approved by regulators or is no longer deemed probable, these regulatory assets or liabilities are recognized in the current period results of operations. The Companies'Evergy Companies continued ability to meet the criteria for recording regulatory assets and liabilities may be affected in the future by restructuring and deregulation in the electric industry or changes in accounting rules. In the event that the criteria no longer applied to any or all of the Evergy Companies' operations, the related regulatory assets and liabilities would be written off unless an appropriate regulatory recovery mechanism were provided. Additionally, these factors could result in an impairment on utility plant assets.

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Great Plains Energy's and KCP&L'sThe Evergy Companies' regulatory assets and liabilities are detailed in the following table.tables.
December 31
20212020
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Regulatory Assets(millions)
Pension and post-retirement costs$567.2 $265.6 $213.3 $867.8 $412.9 $359.9 
Debt reacquisition costs94.4 86.7 6.7 98.9 91.3 6.8 
Debt fair value adjustment96.5 — — 104.0 — — 
Asset retirement obligations fair value
   adjustment		117.9 — — 116.2 — — 
Depreciation98.5 50.1 27.0 70.0 52.7 9.4 
Cost of removal257.5 141.0 90.2 183.4 125.7 57.7 
Asset retirement obligations119.3 52.3 49.1 170.8 55.0 84.0 
Analog meter unrecovered investment18.4 18.4 — 24.1 24.1 — 
Treasury yield hedges20.4 20.4 — 21.5 21.5 — 
Iatan No. 1 and common facilities6.5 — 2.7 6.9 — 2.8 
Iatan No. 2 construction accounting costs24.7 — 12.4 25.4 — 12.7 
Kansas property tax surcharge39.6 31.6 8.0 28.9 23.7 5.2 
Disallowed plant costs14.2 14.2 — 14.5 14.5 — 
La Cygne environmental costs11.2 9.0 2.2 12.4 10.1 2.3 
Deferred customer programs18.7 6.4 7.8 16.3 5.7 8.6 
Fuel recovery mechanisms202.5 120.8 19.8 26.2 1.2 17.7 
February 2021 winter weather event403.1 121.5 — — — — 
Solar rebates20.2 — — 25.9 — 1.5 
Wolf Creek outage20.4 10.2 10.2 10.0 5.0 5.0 
Pension and other post-retirement benefit
   non-service costs		65.6 23.0 29.6 49.8 12.8 23.4 
Retired generation facilities123.4 — — 128.4 — — 
Merger transition costs32.7 15.6 12.1 37.6 18.0 13.9 
Other regulatory assets42.3 24.1 5.9 35.4 22.1 4.6 
Total2,415.2 1,010.9 497.0 2,074.4 896.3 615.5 
Less: current portion(424.1)(257.3)(86.3)(206.2)(96.2)(82.0)
Total noncurrent regulatory assets$1,991.1 $753.6 $410.7 $1,868.2 $800.1 $533.5 
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  December 31
  2017 2016
  KCP&L GMO Great Plains Energy KCP&L GMO Great Plains Energy
Regulatory Assets (millions)
Taxes recoverable through future rates $—
 $—
 $—
 $123.9
 $24.8
 $148.7
Loss on reacquired debt 8.7
(a) 
1.2
(a) 
9.9
 10.0
 1.7
 11.7
Cost of removal 30.3
 —
 30.3
 28.6
 —
 28.6
Asset retirement obligations 94.3
 24.2
 118.5
 69.6
 24.9
 94.5
Pension and post-retirement costs 379.7
(b) 
108.2
(b) 
487.9
 367.9
 104.7
 472.6
Deferred customer programs 40.9
(c) 
19.4
(d) 
60.3
 45.9
 27.4
 73.3
Fuel recovery mechanism 61.7
(e) 
12.0
(e) 
73.7
 69.9
 —
 69.9
Iatan No. 1 and common facilities depreciation and carrying costs 12.9
(f) 
4.7
(g) 
17.6
 13.6
 5.0
 18.6
Iatan No. 2 construction accounting costs 25.0
(h) 
13.7
(h) 
38.7
 26.9
 16.1
 43.0
Kansas property tax surcharge 6.6
(e) 
—
 6.6
 3.6
 —
 3.6
Solar rebates 22.6
(i) 
37.0
(e) 
59.6
 29.2
 41.6
 70.8
Transmission delivery charge 3.2
(e) 
—
 3.2
 3.1
 —
 3.1
La Cygne deferred depreciation 2.7
(j) 
—
 2.7
 2.8
 —
 2.8
Other 3.3
(e) 
1.6
 4.9
 6.8
 —
 6.8
Total $691.9
 $222.0
 $913.9
 $801.8
 $246.2
 $1,048.0
Regulatory Liabilities            
Taxes refundable through future rates $574.0
 $220.6
 $794.6
 $—
 $—
 $—
Emission allowances 58.1
 —
 58.1
 62.1
 —
 62.1
Asset retirement obligations 126.0
 —
 126.0
 99.7
 —
 99.7
Cost of removal —
 57.4
 57.4
 —
 65.1
 65.1
Fuel recovery mechanism —
 3.9
 3.9
 —
 11.6
 11.6
Pension and post-retirement costs 12.0
 8.2
 20.2
 15.3
 7.4
 22.7
Other 9.1
 37.0
 46.1
 10.3
 38.4
 48.7
Total $779.2
 $327.1
 $1,106.3
 $187.4
 $122.5
 $309.9
December 31
20212020
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Regulatory Liabilities(millions)
Taxes refundable through future rates$1,969.5 $1,143.7 $616.1 $2,055.7 $1,184.5 $650.2 
Deferred regulatory gain from sale
leaseback		42.6 42.6 — 48.1 48.1 — 
Emission allowances42.1 — 42.1 46.1 — 46.1 
Nuclear decommissioning400.1 175.7 224.4 319.7 138.2 181.5 
Pension and post-retirement costs44.4 23.2 15.9 50.8 31.4 13.1 
Jurisdictional allowance for funds used
during construction		27.5 25.8 1.7 28.7 27.0 1.7 
La Cygne leasehold dismantling costs29.6 29.6 — 29.6 29.6 — 
Cost of removal— — — 4.4 — — 
Kansas tax credits16.7 16.7 — — — — 
Purchase power agreement5.8 5.8 — 6.3 6.3 — 
Fuel recovery mechanisms6.5 — 6.5 1.3 — — 
February 2021 winter weather event65.1 — 65.1 — — — 
Sibley AAO29.3 — — 18.4 — — 
Other regulatory liabilities96.5 19.1 37.0 55.8 7.8 14.8 
Total2,775.7 1,482.2 1,008.8 2,664.9 1,472.9 907.4 
Less: current portion(70.7)(12.8)(54.6)(26.1)(11.9)(8.0)
Total noncurrent regulatory liabilities$2,705.0 $1,469.4 $954.2 $2,638.8 $1,461.0 $899.4 
(a) Amortized overThe following summarizes the lifenature and period of recovery for each of the related new debt issuances orregulatory assets listed in the remaining lives of the old debt issuances if no new debt was issued.table above.
(b)Pension and post-retirement costs: Represents unrecognized gains and losses and prior service and transition costs that will be recognized in future net periodic pension and post-retirement costs, pension settlements amortized over various periods and financial and regulatory accounting method differences that will be eliminated over the life of the pension plans. Of these amounts, $366.3$494.6 million, $265.6 million and $61.4$179.0 million for KCP&LEvergy, Evergy Kansas Central and GMO,Evergy Metro, respectively, are not included in rate base and are amortized over various periods. Additionally, $219.7 million, $(11.6) million and $123.3 million for Evergy, Evergy Kansas Central and Evergy Metro, respectively, represent differences between pension and post-retirement costs under GAAP and pension and post-retirement costs for ratemaking that will be recovered or refunded in future rates and differences in accumulated unrecognized gains and losses and prior service costs between Evergy and Evergy Metro due to Evergy Metro electing not to apply "push-down accounting" related to the Great Plains Energy and Evergy Kansas Central merger.
(c) $16.1Debt reacquisition costs: Includes costs incurred to reacquire and refinance debt. These costs are amortized over the term of the new debt or the remaining lives of the old debt issuances if no new debt was issued and are not included in rate base.
Debt fair value adjustment: Represents purchase accounting adjustments recorded to state the carrying value of Evergy Metro and Evergy Missouri West long-term debt at fair value in connection with the Great Plains Energy and Evergy Kansas Central merger. Amount is amortized over the life of the related debt and is not included in rate base.
Asset retirement obligations fair value adjustment: Represents purchase accounting adjustments recorded to state the carrying value of Evergy Metro and Evergy Missouri West AROs at fair value in connection with the Great
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Plains Energy and Evergy Kansas Central merger. Amount is amortized over the life of the related plant and is not included in rate base.
Depreciation: Represents the difference between regulatory depreciation expense and depreciation expense recorded for financial reporting purposes. These assets are included in rate base and the difference is amortized over the life of the related plant.
Cost of removal: Represents amounts spent, but not yet collected, to dispose of plant assets. This asset will decrease as removal costs are collected in rates and is included in rate base.
Asset retirement obligations: Represents amounts associated with AROs as discussed further in Note 6. These amounts are recovered over the life of the related plant and are not included in rate base.
Analog meter unrecovered investment: Represents the deferral of unrecovered investment of retired analog meters. Of this amount, $10.1 million is not included in rate base for Evergy and Evergy Kansas Central and is being amortized over a five-year period.
Treasury yield hedges: Represents the effective portion of treasury yield hedge transactions. Amortization of this amount will be included in interest expense over the term of the related debt and is not included in rate base.
Iatan No. 1 and common facilities: Represents depreciation and carrying costs related to Iatan No. 1 and common facilities. These costs are included in rate base and amortized over various periods.
(d) $10.9 million not included in rate base and amortized over various periods.
(e) Not included in rate base and amortized over various periods.
(f) Included in rate base and amortized over various periods.
(g)
Included in rate base and amortized through 2038.
(h) Included in rate base and amortized through 2059.
(i) NotIatan No. 2 construction accounting costs: Represents the construction accounting costs related to Iatan No. 2. These costs are included in rate base and amortized through 2020.2059.
(j) IncludedKansas property tax surcharge: Represents actual costs incurred for property taxes in excess of amounts collected in revenues. These costs are expected to be recovered over a one-year period and are not included in rate base.
Disallowed plant costs: The KCC originally disallowed certain costs related to the Wolf Creek plant. In 1987, the KCC revised its original conclusion and provided for recovery of an indirect disallowance with no return on investment. This regulatory asset represents the present value of the future expected revenues to be provided to recover these costs, net of the amounts amortized.
La Cygne environmental costs: Represents the deferral of depreciation and amortization expense and associated carrying charges related to the La Cygne Station environmental project. This amount will be amortized over the life of the related asset and is included in rate base.
Deferred customer programs: Represents costs related to various energy efficiency programs that have been accumulated and deferred for future recovery. Of these amounts, $12.3 million for Evergy and $7.8 million for Evergy Metro are not included in rate base and are amortized through 2040.over various periods.

Fuel recovery mechanisms: Represents the actual cost of fuel consumed in producing electricity and the cost of purchased power in excess of the amounts collected from customers. This difference is expected to be recovered over a one-year period and is not included in rate base.
February 2021 winter weather event: Represents deferred extraordinary fuel and purchased power costs incurred to provide electric service as a result of the February 2021 winter weather event. These amounts are not included in rate base.
Solar rebates: Represents costs associated with solar rebates provided to retail electric customers. These amounts are not included in rate base and are amortized over various periods.
Wolf Creek outage: Represents deferred expenses associated with Wolf Creek's scheduled refueling and maintenance outages. These expenses are amortized during the period between planned outages and are not included in rate base.
Pension and other post-retirement benefit non-service costs: Represents the non-service component of pension and post-retirement net benefit costs that are capitalized as authorized by regulators. The amounts are included in rate base and are recovered over the life of the related asset.
Retired generation facilities: Represents amounts to be recovered for facilities that have been retired and are probable of recovery.
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Merger transition costs: Represents recoverable transition costs related to the merger. The amounts are not included in rate base and are recovered from retail customers through 2028.
7.Other regulatory assets: Includes various regulatory assets that individually are small in relation to the total regulatory asset balance. These amounts have various recovery periods and are not included in rate base.
The following summarizes the nature and period of amortization for each of the regulatory liabilities listed in the table above.
Taxes refundable through future rates: Represents the obligation to return to customers income taxes recovered in earlier periods when corporate income tax rates were higher than current income tax rates. A large portion of this amount is related to depreciation and will be returned to customers over the life of the applicable property.
Deferred regulatory gain from sale leaseback: Represents the gain Evergy Kansas South recorded on the 1987 sale and leaseback of its 50% interest in La Cygne Unit 2. The gain is amortized over the term of the lease.
Emission allowances: Represents deferred gains related to the sale of emission allowances to be returned to customers.
Nuclear decommissioning: Represents the difference between the fair value of the assets held in the nuclear decommissioning trust and the amount recorded for the accumulated accretion and depreciation expense associated with the asset retirement obligation related to Wolf Creek.
Pension and post-retirement costs: Includes pension and post-retirement benefit obligations and expense recognized in setting prices in excess of actual pension and post-retirement expense.
Jurisdictional allowance for funds used during construction: Represents AFUDC that is accrued subsequent to the time the associated construction charges are included in prices and prior to the time the related assets are placed in service. The AFUDC is amortized to depreciation expense over the useful life of the asset that is placed in service.
La Cygne leasehold dismantling costs: Represents amounts collected but not yet spent on the contractual obligation to dismantle a portion of La Cygne Unit 2. The obligation will be discharged as the unit is dismantled.
Cost of removal: Represents amount collected, but not yet spent, to dispose of plant assets. This liability will be discharged as removal costs are incurred.
Kansas tax credits: Represents Kansas tax credits on investment in utility plant. Amounts will be credited to customers subsequent to the realization of the credits over the remaining lives of the utility plant giving rise to the tax credits.
Purchase power agreement: Represents the amount included in retail electric rates from customers in excess of costs incurred under purchase power agreements. Amounts are amortized over a five-year period.
Fuel recovery mechanisms: Represents the amount collected from customers in excess of the actual cost of fuel consumed in producing electricity and the cost of purchased power. This difference is expected to be refunded over a one-year period and is not included in rate base.
February 2021 winter weather event: Represents the deferral of increased wholesale revenues earned during the February 2021 winter weather event.
Sibley AAO: Represents the estimated amount of revenues that Evergy Missouri West has collected from customers for Sibley Station that Evergy has determined is probable of refund. These amounts were recorded in connection with an AAO granted by the MPSC in October 2019 and deferred amounts will be considered by the MPSC in Evergy Missouri West's 2022 rate case.
Other regulatory liabilities: Includes various regulatory liabilities that individually are relatively small in relation to the total regulatory liability balance. These amounts will be credited over various periods.
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5. GOODWILL AND INTANGIBLE ASSETS
Accounting rules requireGAAP requires goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. The annualEvergy's impairment test for the $169.0$2,336.6 million of GMO acquisition goodwill that was recorded as a result of the Great Plains Energy and Evergy Kansas Central merger was conducted on Septemberas of May 1, 2017.2021. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. Great Plains Energy's regulated electric utilityEvergy's consolidated operations are considered one1 reporting unit for assessment of impairment, as they are included within the same operating segmentmanagement assesses financial performance and have similar economic characteristics.allocates resources on a consolidated basis. The determination of fair value of the reporting unit consisted of two valuation techniques: an income approach consisting of a discounted cash flow analysis and a market approach consisting of a determination of reporting unit invested capital using a market multiplesmultiple derived from the historical revenue; earnings before interest, income taxes, depreciation and amortization; net utility asset valuesamortization and market prices of the stock of peer companies. The results of the two techniques were evaluated and weighted to determine a point within the range that management considered representative of fair value for the reporting unit. FairThe fair value of the reporting unit exceeded the carrying amount, including goodwill; therefore,goodwill. As a result, there was no impairment of goodwill.
Great Plains Energy's and KCP&L's intangible assets are included in electric utility plant on the consolidated balance sheets and are detailed in the following table.
  December 31
   2017   2016 
  Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization
Great Plains Energy (millions)
Computer software  $386.8
   $(251.2)   $355.2
   $(219.1) 
Asset improvements  30.3
   (8.0)   28.8
   (6.7) 
                 
KCP&L                
Computer software  $368.7
   $(234.3)   $338.3
   $(203.1) 
Asset improvements  15.1
   (2.7)   13.6
   (1.8) 
Great Plains Energy's and KCP&L's amortization expense related to intangible assets is detailed in the following table.
  2017 2016
  (millions)
Great Plains Energy $33.7
 $29.1
KCP&L 32.1
 25.7
The following table provides the estimated amortization expense related to Great Plains Energy's and KCP&L's intangible assets for 2018 through 2022 for the intangible assets included in the consolidated balance sheets at December 31, 2017.
  2018 2019 2020 2021 2022
  (millions)
Great Plains Energy $30.5
 $25.7
 $24.5
 $20.0
 $14.9
KCP&L 29.7
 25.0
 23.8
 19.5
 14.5

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8.6. ASSET RETIREMENT OBLIGATIONS
AROs associated with tangible long-lived assets are legal obligations that exist under enacted laws, statutes and written or oral contracts, including obligations arising under the doctrine of promissory estoppel. These liabilities are recognized at estimated fair value as incurred with a corresponding amount capitalized as part of the cost of the related long-lived assets and depreciated over their useful lives. Accretion of the liabilities due to the passage of time is recorded to a regulatory asset and/or liability. Changes in the estimated fair values of the liabilities are recognized when known. Great Plains Energy
Evergy Kansas Central, Evergy Metro and KCP&L record the current portion of AROs within other current liabilities on their consolidated balance sheets.
KCP&L hasEvergy Missouri West have AROs related to decommissioning Wolf Creek, site remediation of its Spearville Wind Energy Facilities, asbestos abatement removal of storage tanks and the closure and post-closure care of ponds and landfills containing coal combustion residuals (CCRs). GMO hasIn addition, Evergy Kansas Central and Evergy Metro have AROs related to asbestos abatement, removaldecommissioning Wolf Creek and the retirement of storage tankswind generation facilities.
The MPSC and closureKCC require the owners of Wolf Creek, including Evergy Kansas South and post-closure of ponds and landfills containing CCRs.
Additionally, certain wiring used in Great Plains Energy's and KCP&L's generating stations include asbestos insulation, which would require special handling if disturbed. DueEvergy Metro with their respective 47% ownership shares, to submit an updated decommissioning cost study every three years. The most recent study was submitted to the inability to reasonably estimate the quantities or the amountMPSC and KCC in September 2020. As a result of disturbance that will be necessary during dismantlement at the end of the life of a plant, the fair value of this ARO cannot be reasonably estimated at this time. Management will continue to monitor the obligation and will recognize a liabilitychanges in the period in which sufficient information becomes available to reasonably estimate its fair value.
On April 17, 2015, the Environmental Protection Agency (EPA) published new regulations to regulate the disposal of CCRs at electric generation facilities. The CCR rule represents legal obligations of Great Plains Energy and KCP&L asestimates related to the closurestudy, Evergy, Evergy Kansas Central and post-closure of its ponds and landfills containing CCRs. In 2016, Great Plains Energy and KCP&L revisedEvergy Metro recorded increases to their AROs by $42.1to decommission Wolf Creek of $259.1 million, $140.7 million and $40.1$118.4 million, respectively, due to an increase in cost estimates for the closure of ponds and landfills containing CCRs at KCP&L's electric generating facilities.2020.
The following table summarizes the change in Great Plains Energy's and KCP&L's AROs.
  Great Plains Energy  KCP&L 
  2017  2016  2017  2016 
  (millions) 
Beginning balance $316.0
  $275.9
  $278.0
  $239.3
 
Additions —
  1.6
  —
  1.3
 
Revision in timing and/or estimates (1.3)  42.1
  0.3
  40.1
 
Settlements (28.5)  (17.4)  (25.5)  (15.0) 
Accretion 14.9
  13.8
  13.5
  12.3
 
Total $301.1
  $316.0
  $266.3
  $278.0
 
Less: current portion (38.6)  —
  (34.9)  —
 
Total noncurrent asset retirement obligation $262.5
  $316.0
  $231.4
  $278.0
 
ARO settlement activity in 2017 and 2016 primarily consists of the remediation ofEvergy Companies' AROs for the closureperiods ending December 31, 2021 and 2020.
EvergyEvergy Kansas CentralEvergy Metro
202120202021202020212020
(millions)
Beginning balance January 1$941.9 $674.1 $427.2 $272.9 $378.9 $253.6 
Revision in timing and/or estimates13.5 249.3 3.8 136.8 9.5 118.4 
Settlements(38.7)(18.4)(10.6)(2.2)(24.4)(7.5)
Accretion43.4 36.9 23.5 19.7 17.0 14.4 
Ending balance$960.1 $941.9 $443.9 $427.2 $381.0 $378.9 
Less: current portion(19.5)(40.2)(7.3)(11.2)(11.0)(21.2)
Total noncurrent asset
   retirement obligation		$940.6 $901.7 $436.6 $416.0 $370.0 $357.7 
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7. PROPERTY, PLANT AND EQUIPMENT
The following tables summarize the property, plant and landfills containing CCRsequipment of Evergy, Evergy Kansas Central and Evergy Metro.
December 31, 2021EvergyEvergy Kansas CentralEvergy Metro
(millions)
Electric plant in service$30,289.9 $14,686.3 $11,656.9 
Electric plant acquisition adjustment724.3 724.3 — 
Accumulated depreciation(11,515.5)(5,590.8)(4,733.7)
Plant in service19,498.7 9,819.8 6,923.2 
Construction work in progress1,350.6 652.2 475.3 
Nuclear fuel, net152.5 76.1 76.4 
Plant to be retired, net (a)
0.8 0.8 — 
Net property, plant and equipment$21,002.6 $10,548.9 $7,474.9 
December 31, 2020EvergyEvergy Kansas CentralEvergy Metro
(millions)
Electric plant in service$28,914.8 $14,095.1 $11,161.8 
Electric plant acquisition adjustment724.3 724.3 — 
Accumulated depreciation(10,998.4)(5,293.5)(4,532.7)
Plant in service18,640.7 9,525.9 6,629.1 
Construction work in progress1,153.5 589.1 433.9 
Nuclear fuel, net155.9 77.7 78.2 
Plant to be retired, net (a)
0.9 0.9 — 
Net property, plant and equipment$19,951.0 $10,193.6 $7,141.2 
(a) As of December 31, 2021 and 2020, represents the planned retirement of Evergy Kansas Central analog meters prior to the end of their remaining useful lives.
The following table summarizes the property, plant and equipment of VIEs for Evergy and Evergy Kansas Central.
December 31
20212020
(millions)
Electric plant of VIEs$392.1 $392.1 
Accumulated depreciation of VIEs(244.3)(237.2)
Net property, plant and equipment of VIEs$147.8 $154.9 
Depreciation Expense
The Evergy Companies' depreciation expense is detailed in the following table.
202120202019
(millions)
Evergy (a)
$813.6 $804.7 $786.3 
Evergy Kansas Central (a)
450.3 435.1 425.8 
Evergy Metro255.9 269.5 262.7 
(a) Approximately $7.1 million of depreciation expense in each of 2021, 2020 and 2019 was attributable to property, plant and equipment of VIEs.
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8. JOINTLY-OWNED ELECTRIC UTILITY PLANTS
Evergy's, Evergy Kansas Central's and Evergy Metro's share of jointly-owned electric utility plants at KCP&LDecember 31, 2021, are detailed in the following tables.
Evergy
Wolf Creek Unit
La Cygne Units (a)
Iatan No. 1 UnitIatan No. 2 UnitIatan CommonJeffrey Energy CenterState Line
(millions, except MW amounts)
Evergy's share94%100%88%73%79%100%40%
Electric plant in
   service		$4,078.7 $2,219.1 $765.7 $1,405.9 $503.6 $2,521.1 $115.0 
Accumulated depreciation2,040.2 816.0 251.9 480.3 122.2 1,036.7 85.2 
Nuclear fuel, net152.5 — — — — — — 
Construction work in progress187.4 52.6 4.4 8.1 7.4 48.7 25.5 
2022 accredited
   capacity-MWs		1,108 1,426 618 640 n/a2,191 200 
(a)    The VIE consolidated by Evergy and GMO.Evergy Kansas Central holds its 50% leasehold interest in La Cygne Unit 2. This 50% leasehold interest in La Cygne Unit 2 is reflected in the information provided above. See Note 18 for additional information.
Evergy Kansas Central
Wolf Creek Unit
La Cygne Units (a)
Jeffrey Energy CenterState
Line
(millions, except MW amounts)
Evergy Kansas Central's share47%50%92%40%
Electric plant in service$2,019.8 $1,047.4 $2,307.6 $115.0 
Accumulated depreciation992.2 475.2 944.5 85.2 
Nuclear fuel, net76.1 — — — 
Construction work in progress83.6 29.0 44.9 25.5 
2022 accredited capacity-MWs554 713 2,016 200 
(a)    The VIE consolidated by Evergy and Evergy Kansas Central holds its 50% leasehold interest in La Cygne Unit 2. This 50% leasehold interest in La Cygne Unit 2 is reflected in the information provided above. See Note 18 for additional information.
Evergy Metro
Wolf Creek UnitLa Cygne UnitsIatan No. 1 UnitIatan No. 2 UnitIatan Common
(millions, except MW amounts)
Evergy Metro's share47%50%70%55%61%
Electric plant in service$2,058.9 $1,171.7 $594.8 $1,066.4 $399.6 
Accumulated depreciation1,048.0 340.8 205.3 412.5 103.3 
Nuclear fuel, net76.4 — — — — 
Construction work in progress103.8 23.6 3.6 6.1 5.5 
2022 accredited capacity-MWs554 713 492 482 NA
Each owner must fund its own portion of the plant's operating expenses and capital expenditures. The Evergy Companies' share of direct expenses are included in the appropriate operating expense classifications in Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated financial statements.
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9. PENSION PLANS AND OTHER EMPLOYEEPOST-RETIREMENT BENEFITS
Great Plains Energy maintainsEvergy and certain of its subsidiaries maintain, and Evergy Kansas Central and Evergy Metro participate in, qualified non-contributory defined benefit pension plans forcovering the majority of KCP&L'sEvergy Kansas Central's and GMO'sEvergy Metro's employees as well as certain non-qualified plans covering certain active and inactive employees, including officers, andretired officers. Evergy is also responsible for its 47%indirect 94% ownership share of Wolf Creek Nuclear Operating Corporation (WCNOC)Creek's defined benefit plans. plans, consisting of Evergy Kansas South's and Evergy Metro's respective 47% ownership shares.
For the majority of employees, pension benefits under these plans reflect the employees' compensation, years of service and age at retirement. EffectiveHowever, for the plan covering Evergy Kansas Central's employees, the benefits for non-union employees hired between 2002 and the second quarter of 2018 and union employees hired beginning in 2014, Great Plains Energy's non-union2012 are derived from a cash balance account formula. The plan was closed to future employees. Great Plains Energynon-union employees in 2018. For the plans covering Evergy Metro's employees, the benefits for union employees hired beginning in 2014 are derived from a cash balance account formula and the plans were closed to future non-union employees in 2014.
Evergy and its subsidiaries also providesprovide certain post-retirement health care and life insurance benefits for substantially all retired employees of KCP&L, GMOEvergy Kansas Central and its 47% ownership shareEvergy Metro and their respective shares of WCNOC.Wolf Creek's post-retirement benefit plans.

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KCP&L and GMOThe Evergy Companies record pension and post-retirement expense in accordance with rate orders from the MPSCKCC and KCCMPSC that allow the difference between pension and post-retirement costs under GAAP and costs for ratemaking to be recognized as a regulatory asset or liability.  This difference between financial and regulatory accounting methods is due to timing and will be eliminated over the life of the plans.
In 2017, Great Plains Energy incurredFor 2021, Evergy, Evergy Kansas Central and Evergy Metro recorded pension settlement charges of $15.9$34.3 million, $25.6 million and $13.7 million, respectively. For 2020, Evergy and Evergy Metro recorded pension settlement charges of $11.2 million and $14.3 million, respectively. For 2019, Evergy and Evergy Metro recorded pension settlement charges of $15.6 million and $23.0 million, respectively. These settlement charges were the result of accelerated pension distributions as a result of accelerated pension distributions.employee retirements and annuity purchases for certain plan participants in 2021. Evergy, Evergy Kansas Central and Evergy Metro deferred substantially all of the charges to a regulatory asset and expect to recover these amounts over future periods pursuant to regulatory agreements.
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The following pension benefits tables provide information relating to the funded status of all defined benefit pension plans on an aggregate basis as well as the components of net periodic benefit costs. For financial reporting purposes, the market value of plan assets is the fair value. For regulatory reporting purposes, a five-year smoothing of assets is used to determine fair value. Net periodic benefit costs reflect total plan benefit costs prior to the effects of capitalization and sharing with joint owners of power plants.
Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Change in projected benefit obligation (PBO)(millions)
PBO at January 1, 2021$2,901.1 $1,429.6 $1,446.5 $280.4 $146.8 $133.6 
Service cost82.6 29.1 53.5 3.3 1.7 1.6 
Interest cost84.2 41.0 42.5 7.8 4.0 3.8 
Contribution by participants— — — 9.0 1.4 7.6 
Actuarial gain(119.0)(50.0)(68.3)(17.2)(9.4)(7.8)
Benefits paid(93.5)(54.8)(37.5)(24.9)(10.6)(14.3)
Settlements(284.0)(126.2)(157.8)— — — 
Other(9.7)(4.3)(5.4)— — — 
PBO at December 31, 2021$2,561.7 $1,264.4 $1,273.5 $258.4 $133.9 $124.5 
Change in plan assets
Fair value of plan assets at January 1, 2021$1,799.1 $887.0 $912.1 $248.3 $125.8 $122.5 
Actual return on plan assets145.5 83.4 62.1 5.2 6.5 (1.3)
Contributions by employer and participants148.7 46.5 102.2 11.8 1.7 10.1 
Benefits paid(89.4)(52.3)(37.1)(23.0)(10.0)(13.0)
Settlements(279.5)(124.6)(154.9)— — — 
Other(9.7)(4.3)(5.4)— — — 
Fair value of plan assets at December 31, 2021$1,714.7 $835.7 $879.0 $242.3 $124.0 $118.3 
Funded status at December 31, 2021$(847.0)$(428.7)$(394.5)$(16.1)$(9.9)$(6.2)
  Pension Benefits Other Benefits
  2017 2016 20172016
Change in projected benefit obligation (PBO) (millions)
PBO at January 1 $1,244.6
 $1,154.8
 $130.1
$137.5
Service cost 44.2
 42.0
 2.1
2.6
Interest cost 53.5
 52.9
 5.4
6.1
Contribution by participants —
 —
 6.0
5.3
Amendments —
 —
 —
(10.1)
Actuarial (gain) loss 135.6
 65.5
 2.1
0.6
Benefits paid (36.8) (70.6) (12.5)(11.9)
Settlements and special termination benefits (85.2) —
 —
—
PBO at December 31 $1,355.9
 $1,244.6
 $133.2
$130.1
Change in plan assets       
Fair value of plan assets at January 1 $776.8
 $723.9
 $115.6
$114.3
Actual return on plan assets 114.8
 51.1
 1.8
2.6
Contributions by employer and participants 76.9
 69.8
 10.4
10.2
Benefits paid (34.5) (68.0) (12.0)(11.5)
Settlements (85.6) —
 —
—
Fair value of plan assets at December 31 $848.4
 $776.8
 $115.8
$115.6
Funded status at December 31 $(507.5) $(467.8) $(17.4)$(14.5)
Amounts recognized in the consolidated balance sheets       
Non-current asset $—
 $—
 $12.8
$9.0
Current pension and other post-retirement liability (1.9) (2.2) (0.8)(0.8)
Noncurrent pension liability and other post-retirement liability (505.6) (465.6) (29.4)(22.7)
Net amount recognized before regulatory treatment (507.5) (467.8) (17.4)(14.5)
Accumulated OCI or regulatory asset/liability 492.2
 476.9
 (21.1)(23.6)
Net amount recognized at December 31 $(15.3) $9.1
 $(38.5)$(38.1)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:       
Actuarial (gain) loss $248.9
 $242.5
 $2.8
$(0.7)
Prior service cost 2.5
 3.2
 (8.0)(8.0)
Other 240.8
 231.2
 (15.9)(14.9)
Net amount recognized at December 31 $492.2
 $476.9
 $(21.1)$(23.6)

Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Amounts recognized in the consolidated balance sheets(millions)
Non-current asset$— $— $— $21.5 $— $21.5 
Current pension and other post-retirement liability(4.4)(2.4)(0.7)(1.1)(0.6)(0.6)
Noncurrent pension liability and other post-retirement liability(842.6)(426.3)(393.8)(36.5)(9.3)(27.1)
Net amount recognized before regulatory treatment(847.0)(428.7)(394.5)(16.1)(9.9)(6.2)
Accumulated OCI or regulatory asset/liability317.2 263.6 84.6 (11.4)(9.6)(10.5)
Net amount recognized at December 31, 2021$(529.8)$(165.1)$(309.9)$(27.5)$(19.5)$(16.7)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:
Actuarial (gain) loss$302.4 $246.6 $86.4 $(12.6)$(10.5)$(3.8)
Prior service cost14.8 17.0 (1.8)1.2 0.9 (6.7)
Net amount recognized at December 31, 2021$317.2 $263.6 $84.6 $(11.4)$(9.6)$(10.5)
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Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Change in projected benefit obligation (PBO)(millions)
PBO at January 1, 2020$2,718.2 $1,323.4 $1,371.4 $264.3 $138.7 $125.6 
Service cost78.9 27.1 51.8 2.7 1.1 1.6 
Interest cost96.8 47.0 49.1 9.2 4.8 4.4 
Contribution by participants— — — 9.3 1.8 7.5 
Plan amendments4.2 8.1 (3.9)1.0 0.5 0.5 
Actuarial loss273.9 127.0 144.8 19.6 11.0 8.6 
Benefits paid(202.5)(102.3)(99.0)(25.7)(11.1)(14.6)
Settlements(62.9)— (62.9)— — — 
Other(5.5)(0.7)(4.8)— — — 
PBO at December 31, 2020$2,901.1 $1,429.6 $1,446.5 $280.4 $146.8 $133.6 
Change in plan assets
Fair value of plan assets at January 1, 2020$1,732.8 $842.1 $890.7 $239.9 $120.5 $119.4 
Actual return on plan assets209.9 99.7 110.2 20.7 13.7 7.0 
Contributions by employer and participants123.4 45.8 77.6 11.7 2.1 9.6 
Benefits paid(198.6)(99.9)(98.7)(24.0)(10.5)(13.5)
Settlements(62.9)— (62.9)— — — 
Other(5.5)(0.7)(4.8)— — — 
Fair value of plan assets at December 31, 2020$1,799.1 $887.0 $912.1 $248.3 $125.8 $122.5 
Funded status at December 31, 2020$(1,102.0)$(542.6)$(534.4)$(32.1)$(21.0)$(11.1)
Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Amounts recognized in the consolidated balance sheets(millions)
Non-current asset$— $— $— $21.3 $— $21.3 
Current pension and other post-retirement liability(4.4)(2.5)(0.8)(1.6)(0.8)(0.9)
Noncurrent pension liability and other post-
   retirement liability		(1,097.6)(540.1)(533.6)(51.8)(20.2)(31.5)
Net amount recognized before regulatory treatment(1,102.0)(542.6)(534.4)(32.1)(21.0)(11.1)
Accumulated OCI or regulatory asset/liability566.9 408.0 216.9 4.0 1.0 (7.7)
Net amount recognized at December 31, 2020$(535.1)$(134.6)$(317.5)$(28.1)$(20.0)$(18.8)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:
Actuarial (gain) loss$551.8 $388.9 $218.6 $2.2 $(0.3)$— 
Prior service cost15.1 19.1 (1.7)1.8 1.3 (7.7)
Net amount recognized at December 31, 2020$566.9 $408.0 $216.9 $4.0 $1.0 $(7.7)
Actuarial gains for the Evergy Companies' pension benefit plans for 2021 were primarily driven by an increase in the discount rate used to measure the benefit obligation as a result of higher market interest rates. See the weighted average assumptions used to determine the benefit obligations in this Note 9 for further information. Actuarial losses for the Evergy Companies' pension benefit plans for 2020 were primarily driven by a decrease in the discount rate used to measure the benefit obligation of approximately 70 basis points as a result of lower market interest rates.
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  Pension Benefits Other Benefits
  2017 2016 2015 2017 2016 2015
Components of net periodic benefit costs (millions)
Service cost $44.2
 $42.0
 $45.3
 $2.1
 $2.6
 $3.3
Interest cost 53.5
 52.9
 50.3
 5.4
 6.1
 6.8
Expected return on plan assets (51.2) (49.2) (51.7) (2.6) (3.1) (2.9)
Prior service cost 0.7
 0.7
 0.8
 —
 1.2
 3.1
Recognized net actuarial (gain) loss 49.7
 51.8
 51.4
 (0.5) (1.5) 0.2
Transition obligation —
 —
 —
 —
 —
 0.2
Settlement and special termination benefits 16.3
 —
 —
 —
 —
 —
Net periodic benefit costs before regulatory adjustment 113.2
 98.2
 96.1
 4.4
 5.3
 10.7
Regulatory adjustment (13.8) (4.9) (9.8) 1.9
 6.0
 4.4
Net periodic benefit costs 99.4
 93.3
 86.3
 6.3
 11.3
 15.1
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities            
Current year net (gain) loss 72.0
 63.6
 8.6
 3.0
 1.1
 (20.6)
Amortization of gain (loss) (65.6) (51.8) (51.4) 0.5
 1.5
 (0.2)
Prior service cost —
 —
 —
 —
 (10.2) (7.0)
Amortization of prior service cost (0.7) (0.7) (0.8) —
 (1.2) (3.1)
Amortization of transition obligation —
 —
 —
 —
 —
 (0.2)
Other regulatory activity 9.6
 4.6
 4.3
 (1.0) (5.4) (4.4)
Total recognized in OCI or regulatory asset/liability 15.3
 15.7
 (39.3) 2.5
 (14.2) (35.5)
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability $114.7
 $109.0
 $47.0
 $8.8
 $(2.9) $(20.4)
As of December 31, 2021 and 2020, Evergy's pension benefits include non-qualified benefit obligations of $49.2 million and $52.1 million, respectively, which are funded by trusts containing assets of $44.2 million and $46.3 million, respectively. As of December 31, 2021 and 2020, Evergy Kansas Central's pension benefits include non-qualified benefit obligations of $25.4 million and $27.0 million, respectively, which are funded by trusts containing assets of $31.7 million and $32.7 million, respectively. The assets in the aforementioned trusts are not included in the table above. See Note 13 for more information on these amounts.
Pension BenefitsPost-Retirement Benefits
Year Ended December 31, 2021EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Components of net periodic benefit costs(millions)
Service cost$82.6 $29.1 $53.5 $3.3 $1.7 $1.6 
Interest cost84.2 41.0 42.5 7.8 4.0 3.8 
Expected return on plan assets(103.5)(52.8)(55.7)(8.9)(6.3)(2.6)
Prior service cost2.0 2.1 — 0.5 0.5 (1.0)
Recognized net actuarial (gain) loss54.1 36.0 43.8 1.4 0.6 (0.1)
Settlement and special termination benefits34.3 25.6 13.7 — — — 
Net periodic benefit costs before regulatory adjustment and intercompany allocations153.7 81.0 97.8 4.1 0.5 1.7 
Regulatory adjustment17.3 (13.1)4.2 (4.8)(3.3)0.4 
Intercompany allocationsn/a3.2 (25.9)n/a— (0.4)
Net periodic benefit costs (income)171.0 71.1 76.1 (0.7)(2.8)1.7 
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities
Current year net gain(195.3)(106.3)(88.4)(13.6)(9.6)(3.9)
Amortization of gain (loss)(52.4)(36.0)(43.9)(1.3)(0.5)0.1 
Amortization of prior service cost(2.0)(2.1)— (0.5)(0.5)1.0 
Total recognized in OCI or regulatory asset/liability(249.7)(144.4)(132.3)(15.4)(10.6)(2.8)
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability$(78.7)$(73.3)$(56.2)$(16.1)$(13.4)$(1.1)
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Pension BenefitsPost-Retirement Benefits
Year Ended December 31, 2020EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Components of net periodic benefit costs(millions)
Service cost$78.9 $27.1 $51.8 $2.7 $1.1 $1.6 
Interest cost96.8 47.0 49.1 9.2 4.8 4.4 
Expected return on plan assets(105.6)(53.1)(54.7)(9.3)(6.6)(2.7)
Prior service cost1.8 1.6 0.8 0.5 0.5 — 
Recognized net actuarial loss46.4 33.9 45.7 0.2 — (0.6)
Settlement and special termination benefits11.2 — 14.3 — — — 
Net periodic benefit costs before regulatory adjustment and intercompany allocations129.5 56.5 107.0 3.3 (0.2)2.7 
Regulatory adjustment29.6 5.9 (11.6)(4.0)(3.0)(0.2)
Intercompany allocationsn/a(0.2)(22.6)n/a0.1 (0.3)
Net periodic benefit costs (income)159.1 62.2 72.8 (0.7)(3.1)2.2 
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities
Current year net loss169.7 80.4 89.3 8.2 3.9 4.3 
Amortization of gain (loss)(59.2)(33.8)(60.0)(0.2)— 0.6 
Prior service cost4.1 8.1 (3.9)0.9 0.5 0.4 
Amortization of prior service cost(1.8)(1.6)(0.8)(0.5)(0.5)— 
Total recognized in OCI or regulatory asset/liability112.8 53.1 24.6 8.4 3.9 5.3 
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability$271.9 $115.3 $97.4 $7.7 $0.8 $7.5 
Pension BenefitsPost-Retirement Benefits
Year Ended December 31, 2019EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Components of net periodic benefit costs(millions)
Service cost$79.1 $29.0 $50.1 $2.5 $1.1 $1.4 
Interest cost108.0 53.7 53.3 10.5 5.6 4.9 
Expected return on plan assets(106.3)(54.8)(48.9)(10.0)(6.7)(3.3)
Prior service cost1.9 1.7 0.9 0.5 0.5 — 
Recognized net actuarial (gain) loss33.0 25.5 49.8 (1.2)(0.6)(1.4)
Settlement and special termination benefits15.6 — 23.0 — — — 
Net periodic benefit costs before regulatory adjustment and intercompany allocations131.3 55.1 128.2 2.3 (0.1)1.6 
Regulatory adjustment37.4 3.0 (19.2)(3.4)(3.0)0.4 
Intercompany allocationsn/a— (34.4)n/a— (0.4)
Net periodic benefit costs (income)168.7 58.1 74.6 (1.1)(3.1)1.6 
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities
Current year net (gain) loss84.7 44.6 35.9 0.9 (3.8)4.7 
Amortization of gain (loss)(48.6)(25.5)(72.8)1.2 0.6 1.4 
Amortization of prior service cost(1.9)(1.7)(0.9)(0.5)(0.5)— 
Total recognized in OCI or regulatory asset/liability34.2 17.4 (37.8)1.6 (3.7)6.1 
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability$202.9 $75.5 $36.8 $0.5 $(6.8)$7.7 
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For financial reporting purposes, the estimated prior service cost and net actuarial (gain) loss for the defined benefit plans that will beare amortized from accumulated other comprehensive income (OCI) or a regulatory asset into net periodic benefit cost. The Evergy Companies amortize prior service cost in 2018 are $0.7 millionon a straight-line basis over the average future service of the active employees (plan participants) benefiting under the plan. Evergy and $45.7 million, respectively. For financial reporting purposes,Evergy Kansas Central amortize the net actuarial gains and losses are recognized(gain) loss on a straight-line basis over the average future service of active plan participants benefiting under the plan without application of an amortization corridor. Evergy Metro amortizes the net actuarial (gain) loss on a rolling five-year average basis. For regulatory reporting purposes, net actuarial gains and losses are amortized over ten years. The estimated net gain for the other post-retirement benefit plans that will be amortized from accumulated OCI or a regulatory asset into net periodic benefit cost in 2018 is $0.2 million.
The accumulated benefit obligation (ABO) for all defined benefit pension plans was $1,169.8 million and $1,090.2 million at December 31, 2017, and 2016, respectively. Pension and other post-retirement benefit plans with the PBO, ABOaccumulated benefit obligation (ABO) or accumulated other post-retirement benefit obligation (APBO) in excess of the fair value of plan assets at year-end are detailed in the following table.tables.
December 31, 2021EvergyEvergy Kansas CentralEvergy Metro
(millions)
ABO for all defined benefit pension plans$2,229.1 $1,124.2 $1,081.1 
Pension plans with the PBO in excess of plan assets
Projected benefit obligation$2,561.7 $1,264.4 $1,273.5 
Fair value of plan assets1,714.7 835.7 879.0 
Pension plans with the ABO in excess of plan assets
Accumulated benefit obligation$2,229.1 $1,124.2 $1,081.1 
Fair value of plan assets1,714.7 835.7 879.0 
Other post-retirement benefit plans with the APBO in excess of plan assets
Accumulated other post-retirement benefit obligation$258.4 $133.9 $124.5 
Fair value of plan assets242.3 124.0 118.3 
  2017 2016
Pension plans with the PBO in excess of plan assets (millions)
Projected benefit obligation $1,355.9
 $1,244.6
Fair value of plan assets 848.4
 776.8
Pension plans with the ABO in excess of plan assets    
Accumulated benefit obligation $1,169.8
 $1,090.2
Fair value of plan assets 848.4
 776.8
Other post-retirement benefit plans with the APBO in excess of plan assets    
Accumulated other post-retirement benefit obligation $111.6
 $61.7
Fair value of plan assets 81.5
 38.3

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The GMO Supplemental Executive Retirement Plan (SERP) is reflected as an unfunded ABO of $24.0 million. Great Plains Energy has approximately $14.7 million of assets in a non-qualified trust for this plan as of December 31, 2017, and expects to fund future benefit payments from these assets.
December 31, 2020EvergyEvergy Kansas CentralEvergy Metro
(millions)
ABO for all defined benefit pension plans$2,534.1 $1,281.6 $1,227.4 
Pension plans with the PBO in excess of plan assets
Projected benefit obligation$2,901.1 $1,429.6 $1,446.5 
Fair value of plan assets1,799.1 887.0 912.1 
Pension plans with the ABO in excess of plan assets
Accumulated benefit obligation$2,534.1 $1,281.6 $1,227.4 
Fair value of plan assets1,799.1 887.0 912.1 
Other post-retirement benefit plans with the APBO in excess of plan assets
Accumulated other post-retirement benefit obligation$280.4 $146.8 $133.6 
Fair value of plan assets248.3 125.8 122.5 
The expected long-term rate of return on plan assets represents Great Plains Energy'sthe Evergy Companies' estimate of the long-term return on plan assets and is based on historical and projected rates of return for current and planned asset classes in the plans' investment portfolios. Assumed projected rates of return for each asset class were selected after analyzing historical experience and future expectations of the returns of various asset classes. Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolios was developed and adjusted for the effect of projected benefits paid from plan assets and future plan contributions.
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The following tables provide the weighted-average assumptions used to determine benefit obligations and net costs.costs for the Evergy Companies' pension and post-retirement benefit plans.
Weighted-average assumptions used to determine the benefit obligation at December 31, 2021Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Discount rate3.10 %3.10 %3.11 %3.12 %3.11 %3.13 %
Rate of compensation increase3.75 %3.77 %3.71 %3.75 %n/a3.75 %
Interest crediting rate for cash balance plans4.13 %4.00 %4.45 %n/an/an/a
Weighted-average assumptions used to determine the benefit obligation at December 31, 2020Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Discount rate2.95 %2.93 %2.97 %2.84 %2.80 %2.88 %
Rate of compensation increase3.71 %3.76 %3.71 %3.75 %n/a3.75 %
Interest crediting rate for cash balance plans4.12 %4.00 %4.46 %n/an/an/a
Weighted-average assumptions used to determine net costs for the year ended December 31, 2021Weighted-average assumptions used to determine net costs for the year ended December 31, 2021Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Discount rateDiscount rate2.95 %2.93 %2.97 %2.84 %2.80 %2.88 %
Expected long-term return on plan assetsExpected long-term return on plan assets6.63 %6.70 %6.57 %3.93 %5.55 %2.27 %
Rate of compensation increaseRate of compensation increase3.71 %3.78 %3.71 %3.75 %n/a3.75 %
Interest crediting rate for cash balance plansInterest crediting rate for cash balance plans4.12 %4.00 %4.46 %n/an/an/a
Weighted-average assumptions used to determine the benefit obligation at December 31 Pension Benefits Other Benefits 
2017 2016 2017 2016 
Weighted-average assumptions used to determine net costs for the year ended December 31, 2020Weighted-average assumptions used to determine net costs for the year ended December 31, 2020Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Discount rate 3.72% 4.31% 3.64% 4.20% Discount rate3.62 %3.61 %3.64 %3.56 %3.54 %3.58 %
Expected long-term return on plan assetsExpected long-term return on plan assets6.63 %6.70 %6.56 %4.19 %6.00 %2.37 %
Rate of compensation increase 3.62% 3.62% 3.50% 3.50% Rate of compensation increase3.74 %3.75 %3.71 %3.75 %n/a3.75 %
Interest crediting rate for cash balance plansInterest crediting rate for cash balance plans4.32 %4.21 %4.50 %n/an/an/a
Weighted-average assumptions used to determine net costs for years ended December 31 Pension Benefits   Other Benefits 
 2017   2016   2017   2016 
Discount rate 4.31%   4.54%   4.20%   4.47% 
Expected long-term return on plan assets 6.73%   7.14%   2.00%*  2.54%*
Rate of compensation increase 3.62%   3.62%   3.50%   3.50% 
*after tax
Great Plains EnergyEvergy expects to contribute $84.0$92.9 million to the pension plans in 20182022 to meet Employee Retirement Income Security Act of 1974, as amended (ERISA) funding requirements and regulatory orders, the majority of which $30.6 million is expected to be paid by KCP&L. Great Plains Energy'sEvergy Kansas Central and $62.3 million is expected to be paid by Evergy Metro. The Evergy Companies' funding policy is to contribute amounts sufficient to meet the ERISA funding requirements and MPSC and KCC rate orders plus additional amounts as considered appropriate; therefore, actual contributions may differ from expected contributions. Great Plains Energy alsoAlso in 2022, Evergy expects to contribute $4.6$2.2 million to otherthe post-retirement benefit plans, in 2018, the majority of which $0.5 million is expected to be paid by KCP&L.Evergy Kansas Central and $1.7 million is expected to be paid by Evergy Metro.
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The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid through 2027.2031.
Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
(millions)
2022$159.5 $80.8 $77.5 $16.1 $9.2 $6.9 
2023160.4 79.6 79.5 15.6 9.0 6.7 
2024163.8 80.6 81.7 15.1 8.5 6.6 
2025168.1 81.3 85.3 14.7 8.2 6.5 
2026173.5 83.2 88.8 14.3 8.0 6.4 
2027-2031862.9 399.5 455.7 68.5 37.2 31.2 
  Pension Benefits Other Benefits
  (millions)
2018 $79.3
 $9.2
2019 82.2
 9.2
2020 84.7
 9.6
2021 86.0
 10.1
2022 86.5
 10.4
2023-2027 459.9
 55.6

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Pension plan assetsDecember 31, 2021, Evergy Kansas Central and Evergy Metro maintained a master trust for their non-union and Evergy Kansas Central's union pension benefits and a separate trust for Evergy Metro's union pension benefits. Evergy Kansas Central and Evergy Metro maintained separate trusts for their post-retirement benefits as of December 31,2021. These plans are managed in accordance with prudent investor guidelines contained in the ERISA requirements.
The investment strategy supports theprimary objective of the fund, whichEvergy Kansas Central's and Evergy Metro's pension plans is to earnprovide a source of retirement income for its participants and beneficiaries, and the highest possible return on plan assets within a reasonableprimary financial objectives of the plans are to minimize funding deficiencies and prudent level of risk. The portfolios are invested,maintain the plans' ability to pay all benefit and periodically rebalanced, to achieve targeted allocations of approximately 33% U.S. large cap and small cap equity securities, 21% international equity securities, 36% fixed income securities, 7% real estate, 1% commodities and 2% hedge funds. Fixed income securities include domestic and foreign corporate bonds, collateralized mortgageexpense obligations and asset-backed securities, U.S. government agency, state and local obligations, U.S. Treasury notes and money market funds.when due.
The fair values of Great Plains Energy's pension plan assets at December 31, 2017 and 2016, by asset category are in the following tables.
    Fair Value Measurements Using
 
 
Description
December 31
2017
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 Assets measured at NAV
  (millions) 
Pension Plans                 
Equity securities                 
U.S. (a)
 $279.8
  $236.4
   $—
   $—
  $43.4
 
International (b)
 176.0
  123.5
   —
   —
  52.5
 
Real estate (c)
 46.4
  13.6
   —
   —
  32.8
 
Commodities (d)
 17.0
  —
   —
   —
  17.0
 
Fixed income securities 
               
Fixed income funds (e)
 71.8
  21.4
   —
   —
  50.4
 
U.S. Treasury 51.5
  51.5
   —
   —
  —
 
U.S. Agency, state and local obligations 18.3
  —
   18.3
   —
  —
 
U.S. corporate bonds (f)
 119.2
  —
   119.2
   —
  —
 
Foreign corporate bonds 12.5
  —
   12.5
   —
  —
 
Hedge funds (g)
 15.7
  —
   —
   —
  15.7
 
Cash equivalents 35.6
  35.6
   —
   —
  —
 
Other 4.6
  —
   4.6
   —
  —
 
Total $848.4
  $482.0
   $154.6
   $—
  $211.8
 

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    Fair Value Measurements Using
 
 
Description
December 31
2016
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 Assets measured at NAV
Pension Plans (millions) 
Equity securities                 
U.S. (a)
 $247.6
  $213.0
   $—
   $—
  $34.6
 
International (b)
 163.7
  120.4
   —
   —
  43.3
 
Real estate (c)
 42.7
  12.4
   —
   —
  30.3
 
Commodities (d)
 14.1
  —
   —
   —
  14.1
 
Fixed income securities 
               
Fixed income funds (e)
 65.1
  20.9
   —
   —
  44.2
 
U.S. Treasury 52.2
  52.2
   —
   —
  —
 
U.S. Agency, state and local obligations 17.9
  —
   17.9
   —
  —
 
U.S. corporate bonds (f)
 120.2
  —
   120.2
   —
  —
 
Foreign corporate bonds 9.3
  —
   9.3
   —
  —
 
Hedge funds (g)
 15.6
  —
   —
   —
  15.6
 
Cash equivalents 31.7
  31.7
   —
   —
  —
 
Other (3.3)  —
   (3.3)   —
  —
 
Total $776.8
  $450.6
   $144.1
   $—
  $182.1
 
(a) At December 31, 2017 and 2016, this category is comprised of $75.5 million and $128.8 million, respectively, of traded mutual funds valued at daily listed prices and $160.9 million and $84.2 million, respectively, of traded common stocks and exchange traded funds. At December 31, 2017 and 2016, this category also includes $43.4 million and $34.6 million, respectively, of institutional common/collective trust funds valued at net asset value (NAV) per share (or its equivalent) and is not categorized in the fair value hierarchy.
(b) At December 31, 2017 and 2016, this category is comprised of $95.6 million and $92.8 million, respectively, of traded mutual funds valued at daily listed prices and $27.9 million and $27.6 million, respectively, of traded American depository receipts, global depository receipts and ordinary shares. At December 31, 2017 and 2016, this category also includes $52.5 million and $43.3 million, respectively, of institutional common/collective trust funds valued at NAV per share (or its equivalent) and is not categorized in the fair value hierarchy.
(c) At December 31, 2017 and 2016, this category is comprised of $13.6 million and $12.4 million, respectively, of traded real estate investment trusts. At December 31, 2017 and 2016, this category also includes $32.8 million and $30.3 million, respectively, of institutional common/collective trust funds and a limited partnership valued at NAV per share (or its equivalent) and is not categorized in the fair value hierarchy.
(d) Consists of institutional common/collective trust funds valued at NAV per share (or its equivalent) and is not categorized in the fair value hierarchy.
(e) At December 31, 2017 and 2016, this category is comprised of $21.4 million and $20.9 million, respectively, of traded mutual funds valued at daily listed prices. At December 31, 2017 and 2016, this category also includes $50.4 million and $44.2 million, respectively, of institutional common/collective trust funds valued at NAV per share (or its equivalent) and is not categorized in the fair value hierarchy.
(f) At December 31, 2017 and 2016, this category is comprised of $113.3 million and $115.7 million, respectively, of corporate bonds. At December 31, 2017 and 2016, there were also $3.2 million and $2.3 million, respectively, of collateralized mortgage obligations and $2.7 million and $2.2 million, respectively, of other asset-backed securities.
(g) Consists of closely-held limited partnerships valued at NAV per share (or its equivalent) and is not categorized in the fair value hierarchy.

Other post-retirement plan assets are also managed in accordance with prudent investor guidelines contained in the ERISA requirements. The investment strategy supports theprimary objective of the funds, whichEvergy Kansas Central's and Evergy Metro's post-retirement benefit plans is to preserve capital, maintain sufficient liquidity and earn a consistent rate of return. Other
The investment strategies of both the Evergy Kansas Central and Evergy Metro pension and post-retirement plans support the above objectives of the plans. The portfolios are invested, and periodically rebalanced, to achieve the targeted allocations detailed below. The following table provides the target asset allocations by asset class for the Evergy Kansas Central and Evergy Metro pension and other post-retirement plan assetsassets.
Pension BenefitsPost-Retirement Benefits
Evergy Kansas CentralEvergy MetroEvergy Kansas CentralEvergy Metro
Domestic equities26%26%26%15%
International equities20%19%18%8%
Bonds39%37%51%68%
Mortgage & asset backed securities—%—%—%6%
Real estate investments4%7%—%—%
Other investments11%11%5%3%
Fair Value Measurements
Evergy classifies recurring and non-recurring fair value measurements based on the fair value hierarchy as discussed in Note 13. The following are invested primarilydescriptions of the valuation methods of the primary fair value measurements disclosed below.
Domestic equities - consist of individually held domestic equity securities and domestic equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the net asset value (NAV) per fund share, derived from the quoted prices in active markets of the underlying securities are not classified within the fair value hierarchy.
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International equities - consist of individually held international equity securities and international equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the NAV per fund share, derived from the quoted prices in active markets of the underlying securities are not classified within the fair value hierarchy.
Bond funds - consist of funds maintained by investment companies that invest in various types of fixed income securities consistent with the funds' stated objectives. Securities and funds, which may includeare publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the NAV per fund share, derived from the quoted prices in active markets of the underlying securities, are not classified within the fair value hierarchy.
Corporate bonds - consists of individually held, primarily domestic, and foreign corporate bonds collateralized mortgage obligations and asset-backed securities, U.S. government agency, state and local obligations, that are traded in less than active markets or priced with models using highly observable inputs that are categorized as Level 2.
U.S. Treasury notes and moneyagency bonds - consists of individually held U.S. Treasury securities and U.S. agency bonds. U.S. Treasury securities, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as a Level 1. U.S. agency bonds, which are publicly quoted, are traded in less than active markets or priced with models using highly observable inputs and are categorized as Level 2.
Mortgage and asset backed securities - consists of individually held securities that are traded in less than active markets or valued with models using highly observable inputs that are categorized as Level 2.
Real estate investments - consists of traded real estate investment trusts valued at the closing price reported on the major market on which the trusts are traded and are categorized as Level 1 and institutional trust funds valued at NAV per fund share and are not categorized in the fair value hierarchy.
Combination debt/equity/other fund - consists of a fund that invests in various types of debt, equity and other asset classes consistent with the fund's stated objectives. The fund, which is publicly quoted, is valued based on quoted prices in active markets and is categorized as wellLevel 1.
Alternative investments - consists of investments in institutional trust and hedge funds that are valued by fund administrators using the NAV per fund share, derived from the underlying investments of the fund, and are not classified within the fair value hierarchy.
Short-term investments - consists of fund investments in high-quality, short-term, U.S. dollar-denominated instruments with an average maturity of 60 days that are valued at NAV per fund share and are not categorized in the fair value hierarchy.
Cash and cash equivalents - consists of investments with original maturities of three months or less when purchased that are traded in active markets and are categorized as domestic and international equity funds.

Level 1.
92
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The fair values of Great Plains Energy's other post-retirementthe Evergy Companies' pension plan assets at December 31, 20172021 and 2016,2020, by asset category are in the following tables.
  Fair Value Measurements Using
 
 
Description		December 31
2021		Level 1Level 2Level 3Assets measured at NAV
(millions)
Evergy Kansas Central Pension Plans
Domestic equities$209.9 $177.3 $— $— $32.6 
International equities167.4 167.4 — — — 
Bond funds330.4 330.4 — — — 
Real estate investments28.1 — — — 28.1 
Combination debt/equity/other fund42.7 42.7 — — — 
Alternative investment funds44.1 — — — 44.1 
Short-term investments13.1 — — — 13.1 
Total$835.7 $717.8 $— $— $117.9 
Evergy Metro Pension Plans    
Domestic equities$203.0 $179.5 $— $— $23.5 
International equities193.1 193.1 — — — 
Bond funds260.6 260.6 — — — 
Corporate bonds27.1 — 27.1 — — 
U.S. Treasury and agency bonds14.5 4.7 9.8 — — 
Mortgage and asset backed securities4.3 — 4.3 — — 
Real estate investments55.9 — — — 55.9 
Combination debt/equity/other fund46.2 46.2 — — — 
Alternative investment funds47.5 — — — 47.5 
Cash and cash equivalents14.1 14.1 — — — 
Short-term investments9.5 — — — 9.5 
Other3.2 — 3.2 — — 
Total$879.0 $698.2 $44.4 $— $136.4 
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    Fair Value Measurements Using
 
 
Description
December 31
2017
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 Assets measured at NAV
Other Post-Retirement Benefit Plans (millions) 
Equity securities $3.7
  $3.7
   $—
   $—
  $—
 
Fixed income securities 
               
Fixed income fund(a)
 56.4
  —
   —
   —
  56.4
 
U.S. Treasury 3.0
  3.0
   —
   —
  —
 
U.S. Agency, state and local obligations 5.5
  —
   5.5
   —
  —
 
U.S. corporate bonds(b)
 18.7
  —
   18.7
   —
  —
 
Foreign corporate bonds 1.6
  —
   1.6
   —
  —
 
Cash equivalents 25.3
  25.3
   —
   —
  —
 
Mutual funds 0.2
  0.2
   —
   —
  —
 
Other 1.4
  —
   1.4
   —
  —
 
Total $115.8
  $32.2
   $27.2
   $—
  $56.4
 
  Fair Value Measurements Using
 
 
Description		December 31
2020		Level 1Level 2Level 3Assets measured at NAV
(millions)
Evergy Kansas Central Pension Plans
Domestic equities$248.5 $151.3 $— $— $97.2 
International equities171.2 103.8 — — 67.4 
Bond funds281.2 230.7 — — 50.5 
Real estate investments46.7 — — — 46.7 
Combination debt/equity/other fund30.4 30.4 — — — 
Alternative investment funds83.6 — — — 83.6 
Short-term investments25.4 — — — 25.4 
Total$887.0 $516.2 $— $— $370.8 
Evergy Metro Pension Plans    
Domestic equities$247.4 $191.9 $— $— $55.5 
International equities220.8 153.4 — — 67.4 
Bond funds78.1 21.1 — — 57.0 
Corporate bonds133.6 — 133.6 — — 
U.S. Treasury and agency bonds73.8 61.5 12.3 — — 
Mortgage and asset backed securities5.0 — 5.0 — — 
Real estate investments40.2 1.6 — — 38.6 
Combination debt/equity/other fund15.6 15.6 — — — 
Alternative investment funds39.7 — — — 39.7 
Cash and cash equivalents57.3 57.3 — — — 
Short-term investments1.4 — — — 1.4 
Other(0.8)— (0.8)— — 
Total$912.1 $502.4 $150.1 $— $259.6 


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    Fair Value Measurements Using
 
 
Description
December 31
2016
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 Assets measured at NAV
Other Post-Retirement Benefit Plans (millions) 
Equity securities $4.1
  $4.1
   $—
   $—
  $—
 
Fixed income securities 
               
Fixed income fund(a)
 62.7
  —
   —
   —
  62.7
 
U.S. Treasury 3.9
  3.9
   —
   —
  —
 
U.S. Agency, state and local obligations 4.3
  —
   4.3
   —
  —
 
U.S. corporate bonds(b)
 17.8
  —
   17.8
   —
  —
 
Foreign corporate bonds 1.6
  —
   1.6
   —
  —
 
Cash equivalents 19.5
  19.5
   —
   —
  —
 
Other 1.7
  0.2
   1.5
   —
  —
 
Total $115.6
  $27.7
  
$25.2
   $—
  $62.7
 
(a) AtThe fair values of the Evergy Companies' post-retirement plan assets at December 31, 20172021 and 2016, this2020, by asset category includes $56.4 million and $62.7 million, respectively, of an institutional common/collective trust fund valued at NAV per share (or its equivalent) and is not categorizedare in the fair value hierarchy.following tables.
(b) At December 31, 2017 and 2016, this category is comprised
  Fair Value Measurements Using
 
 
Description		December 31
2021		Level 1Level 2Level 3Assets measured at NAV
(millions)
Evergy Kansas Central Post-Retirement Benefit Plans
Domestic equities$32.5 $32.5 $— $— $— 
International equities22.1 22.1 — — — 
Bond funds62.3 62.3 — — — 
Combination debt/equity/other fund6.1 6.1 — — — 
Short-term investments1.0 — — — 1.0 
Total$124.0 $123.0 $— $— $1.0 
Evergy Metro Post-Retirement Benefit Plans 
Domestic equities$20.0 $20.0 $— $— $— 
International equities12.3 12.3 — — — 
Bond funds50.2 50.2 — — — 
Corporate bonds18.1 — 18.1 — — 
U.S. Treasury and agency bonds12.1 6.1 6.0 — — 
Mortgage and asset backed securities0.8 — 0.8 — — 
Combination debt/equity/other fund3.9 3.9 — — — 
Cash and cash equivalents0.5 0.5 — — — 
Short-term investments0.1 — — — 0.1 
Other0.3 — 0.3 — — 
Total$118.3 $93.0 $25.2 $— $0.1 
123
Table of $15.1 million and $14.0 million, respectively, of corporate bonds, $0.5 million and $0.5 million, respectively, of collateralized mortgage obligations and $3.1 million and $3.3 million, respectively, of other asset-backed securities.Contents

  Fair Value Measurements Using
 
 
Description		December 31
2020		Level 1Level 2Level 3Assets measured at NAV
(millions)
Evergy Kansas Central Post-Retirement Benefit Plans
Domestic equities$41.9 $— $— $— $41.9 
International equities27.7 — — — 27.7 
Bond funds55.5 — — — 55.5 
Cash and cash equivalents0.7 0.7 — — — 
Total$125.8 $0.7 $— $— $125.1 
Evergy Metro Post-Retirement Benefit Plans 
Domestic equities$4.6 $4.6 $— $— $— 
International equities1.2 1.2 — — — 
Bond funds79.0 0.2 — — 78.8 
Corporate bonds17.9 — 17.9 — — 
U.S. Treasury and agency bonds13.6 5.7 7.9 — — 
Mortgage and asset backed securities0.5 — 0.5 — — 
Cash and cash equivalents5.4 5.4 — — — 
Other0.3 — 0.3 — — 
Total$122.5 $17.1 $26.6 $— $78.8 
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The cost trend assumed for 2017 and 2018 was 6.5% and 6.8%, respectively, with the rate declining through 2027 to the ultimate cost trend rate of 4.5%.

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The effects of a one-percentage point change in the assumed health care cost trend rates, holding all other assumptions constant, at December 31, 2017, are detailed in the following table.tables.
  Increase Decrease
  (millions)
Effect on total service and interest component $0.2
 $(0.2)
Effect on post-retirement benefit obligation 0.4
 (0.3)
Assumed annual health care cost growth rates as of December 31, 2021EvergyEvergy Kansas CentralEvergy Metro
Health care cost trend rate assumed for next year6.0 %6.0 %6.0 %
Rate to which the cost trend is assumed to decline (the ultimate trend rate)4.5 %4.5 %4.5 %
Year that rate reaches ultimate trend203020302030
Assumed annual health care cost growth rates as of December 31, 2020EvergyEvergy Kansas CentralEvergy Metro
Health care cost trend rate assumed for next year6.0 %6.0 %6.0 %
Rate to which the cost trend is assumed to decline (the ultimate trend rate)4.5 %4.5 %4.5 %
Year that rate reaches ultimate trend202720272027
Employee Savings Plans
Great Plains EnergyEvergy has defined contribution savings plans (401(k)) that cover substantially all employees. Great Plains EnergyEvergy matches employee contributions, subject to limits. The annual costcosts of the plans was approximately $10.9 millionare detailed in 2017, $11.5 million in 2016 and $10.6 million in 2015. KCP&L's annual costthe following table.
202120202019
(millions)
Evergy$25.6 $17.4 $17.6 
Evergy Kansas Central11.7 9.6 9.6 
Evergy Metro13.9 7.8 8.0 
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Table of the plans was approximately $7.7 million in 2017, $8.0 million in 2016 and $7.9 million in 2015.Contents
10. EQUITY COMPENSATION
Great Plains Energy'sEvergy's Long-Term Incentive Plan is an equity compensation plan approved by Great Plains Energy'sEvergy shareholders. The Long-Term Incentive Plan permits the grant of restricted stock, restricted stock units, bonus shares, stock options, stock appreciation rights, limited stock appreciation rights, director shares, director deferred share units and performance shares and other stock-based awards to directors, officers and other employees of Great Plains Energy and KCP&L. The maximum number of shares of Great Plains Energy common stock that can be issued under the plan is 8.0 million.Evergy. Common stock shares delivered by Great Plains EnergyEvergy under the Long-Term Incentive Plan may be authorized but unissued, held in the treasury or purchased on the open market (including private purchases) in accordance with applicable securities laws. Great Plains Energy expectsEvergy has a policy of delivering newly issued shares and does not expect to purchaserepurchase common stock on the open marketshares during 20182022 to satisfy performance shareequity compensation payments and director deferred share unit conversion. Forfeiture rates are based on historical forfeitures and future expectations and are reevaluated annually.
The following table summarizes Great Plains Energy's and KCP&L'sthe Evergy Companies' equity compensation expense and the associated income tax benefit.
202120202019
Evergy(millions)
Equity compensation expense$15.6 $15.5 $15.5 
Income tax (expense) benefit(0.1)2.2 3.0 
Evergy Kansas Central
Equity compensation expense6.9 7.6 6.7 
Income tax (expense) benefit(0.2)1.6 1.9 
Evergy Metro
Equity compensation expense5.1 5.7 5.7 
Income tax (expense) benefit(0.6)0.2 0.3 
  2017 2016 2015
Great Plains Energy (millions)  
Equity compensation expense $6.3
 $5.0
 $4.0
Income tax benefit 2.4
 1.6
 1.4
KCP&L  
  
  
Equity compensation expense $4.2
 $3.2
 $2.6
Income tax benefit 1.6
 1.0
 0.9
Restricted Share Units
Evergy utilizes RSUs for new grants of stock-based compensation awards. RSU awards are grants that entitle the holder to receive shares of common stock as the awards vest. These RSU awards are defined as nonvested shares and do not include restrictions once the awards have vested. These RSUs either take the form of RSUs with performance measures that vest upon the achievement of specific performance goals or RSUs with only service requirements that vest solely upon the passage of time.
RSUs with Performance SharesMeasures
The payment of RSUs with performance sharesmeasures is contingent upon achievement of specific performance goals over a stated period of time as approved by the Compensation and Leadership Development Committee of the Board. The numbernumbers of performance sharesRSUs with performances measures ultimately paid can vary from the numbernumbers of sharesRSUs with performance measures initially granted depending on Great Plains Energy'sEvergy's performance over the stated performance periods. Compensation expense for RSUs with performance sharesmeasures is calculated by recognizing the portion of the fair value for each reporting period for which the requisite service has been rendered. Dividends are accrued over the vesting period and paid in cash based on the number of RSUs with performance sharesmeasures ultimately paid.
The fair value of RSUs with performance share awardsmeasures is estimated using the market value of the Company'sEvergy's stock at the valuation date and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected volatilities, dividend yield and risk-free rates. Expected volatility is based on daily stock price change during a historical period commensurate with the remaining term of the performance period of the grant. The risk-free rate is based upon the rate at the time of the evaluation for zero-coupon government bonds with a maturity consistent with the remaining performance period of the grant. The dividend yield is based on the most recent dividends paid and

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the actual closing stock price on the valuation date. For shares granted in 2017,2021, inputs for expected volatility, dividend yield and the risk-free ratesrate were 18%32%, 3.8%3.99% and 1.58%0.24%, respectively.
Performance share
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RSU activity for awards with performance measures for 2021 is summarized in the following table. Performance adjustment represents the number of shares of common stock related to performance shares ultimately issued that can vary from the number of performance shares initially granted depending on Great Plains Energy's performance over a stated period of time.
 
Performance
Shares
 
Grant Date
Fair Value*
Beginning balance January 1, 2017 625,100
   $28.13
 
Granted 236,433
   31.26
 
Earned (212,992)   28.48
 
Forfeited (103,454)   29.24
 
Ending balance December 31, 2017 545,087
   29.12
 
Nonvested
Restricted Share Units		Grant Date
Fair Value*
Beginning balance January 1, 2021347,964 $61.57 
Granted270,277 57.21 
Forfeited(104,526)64.85 
Ending balance December 31, 2021513,715 58.79 
* weighted-average
At December 31, 2017,2021, the remaining weighted-average contractual term related to RSU awards with performance measures was 1.11.4 years.  The weighted-average grant-date fair value of sharesRSUs granted with performance measures was $31.26, $31.41$57.21, $87.98 and $24.03$37.87 in 2017, 20162021, 2020 and 2015,2019, respectively. At December 31, 2017,2021, there was $6.1$15.3 million of total unrecognized compensation expense net of forfeiture rates, related to unvested RSUs with performance shares granted undermeasures. No RSUs with performance measures vested in 2021, 2020 and 2019.
RSUs with Only Service Requirements
Evergy measures the Long-Term Incentive Plan, which will be recognized over the remaining weighted-average contractual term.  The total fair value of performance shares earned and paid was $6.1 million, $7.4 million and $0.5 million in 2017, 2016 and 2015, respectively.
Restricted Stock
Restricted stock cannot be sold or otherwise transferred by the recipient prior to vesting and has a value equal toRSUs with only service requirements based on the fair market value of the shares onunderlying common stock as of the issuegrant date. Restricted stock shares vest over a stated period of timeRSU awards with accruing reinvested dividends subject to the same restrictions. Compensationonly service conditions recognize compensation expense calculated by multiplying shares by the grant-date fair value related to restricted stock, is recognizedthe RSU and recognizing it on a straight-line basis over the statedrequisite service period for the entire award. Dividends are accrued over the vesting period. Restricted stockperiod and are invested in additional RSU's subject to the same service conditions.
RSU activity for awards with only service requirements for 2021 is summarized in the following table.
 
Nonvested
Restricted Stock
 
Grant Date
Fair Value*
Beginning balance January 1, 2017 249,672
   $27.20
 
Granted and issued 81,040
   28.68
 
Vested (112,813)   26.92
 
Forfeited (25,497)   28.10
 
Ending balance December 31, 2017 192,402
   27.87
 
Nonvested
Restricted Share Units		Grant Date
Fair Value*
Beginning balance January 1, 2021160,742 $59.42 
Granted171,363 55.30 
Vested(43,785)54.61 
Forfeited(35,274)59.24 
Ending balance December 31, 2021253,046 57.18 
* weighted-average
At December 31, 2017,2021, the remaining weighted-average contractual term related to RSU awards with only service requirements was 1.21.4 years.  The weighted-average grant-date fair value of sharesRSUs granted with only service requirements was $28.68, $29.41$55.30, $68.92 and $25.89$54.47 in 2017, 20162021, 2020 and 2015,2019, respectively. At December 31, 2017,2021, there was $2.1$7.0 million of total unrecognized compensation expense net of forfeiture rates, related to nonvested restricted stock granted under the Long-Term Incentive Plan, which will be recognized over the remaining weighted-average contractual term. Total fair value of shares vested was $3.0 million, $1.8 million and $2.2 million in 2017, 2016 and 2015, respectively.
Director Deferred Share Units
Non-employee directors receive shares of Great Plains Energy's common stock as part of their annual retainer. Each director may elect to defer receipt of their shares by receiving Director Deferred Share Units that convert to shares of Great Plains Energy's common stock at the end of January in the year after departure from the Board or such other time as elected by each director. Director Deferred Share Units have a value equal to the market value of Great Plains Energy's common stock on the grant date with accruing dividends. Compensation expense, calculated by multiplying the director deferred share units by the related grant-date fair value, is recognized at the grant date.

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unvested RSUs. The total fair value of RSUs with only service requirements that vested was $2.4 million, $6.5 million and $2.6 million in 2021, 2020 and 2019, respectively.
In addition to RSU's, Evergy also had 36,012 shares and 108,010 shares of Director Deferred Share Units issued was insignificant for 2017restricted stock and 2016. Director Deferred Share Units activity is summarizedperformance shares, respectively, that vested in 2021 related to Great Plains Energy equity compensation awards that converted to equivalent Evergy awards at the following table.closing of the Great Plains Energy and Evergy Kansas Central merger in 2018.
  Share Units Grant Date Fair Value*
Beginning balance January 1, 2017  138,587
   $23.96
 
Issued  23,435
   30.09
 
Converted  (22,871)   21.81
 
Ending balance December 31, 2017  139,151
   25.35
 
* weighted-average
11. SHORT-TERM BORROWINGS AND SHORT-TERM BANK LINES OF CREDIT
Great Plains Energy's $200 Million Revolving Credit Facility
Great Plains Energy's $200 million revolvingIn August 2021, Evergy amended its $2.5 billion master credit facility and extended the maturity until 2026. Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West have borrowing capacity under the master credit facility with a groupspecific sublimits for each borrower. These sublimits can be unilaterally adjusted by Evergy for each borrower provided the sublimits remain within minimum and maximum sublimits as specified in the facility. Evergy adjusted these sublimits in the first quarter of banks expires2021 as further detailed in October 2019.the table below. The facility's terms permit transfers of unused commitments between this facilityapplicable interest rates and the KCP&L and GMO facilities discussed below, with the total amountcommitment fees of the facility not exceeding $400 million at any one time.  are subject to upward or downward adjustments, within
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certain limitations, if Evergy achieves, or fails to achieve, certain sustainability-linked targets based on two key performance indicator metrics: (i) Non-Emitting Generation Capacity and (ii) Diverse Supplier Spend (as defined in the facility).
A default by Great Plains Energyany borrower under the facility or anyone of its significant subsidiaries on other indebtedness totaling more than $50.0$100.0 million isconstitutes a default by that borrower under the facility. Under the terms of this facility, each of Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West is required to maintain a total indebtedness to total capitalization ratio, as defined in the facility, of not greater than 0.65 to 1.00 at all times. As of December 31, 2021, Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West were in compliance with this covenant.
The following table summarizes the committed credit facilities (excluding receivable sale facilities discussed in Note 3) available to the Evergy Companies as of December 31, 2021 and 2020.
Amounts Drawn
Master Credit FacilityCommercial PaperLetters of CreditCash BorrowingsAvailable BorrowingsWeighted Average Interest Rate on Short-Term Borrowings
December 31, 2021(millions)
Evergy, Inc.$700.0 $358.0 $0.7 $— $341.3 0.34%
Evergy Kansas Central750.0 406.0 0.1 — 343.9 0.41%
Evergy Metro350.0 — — — 350.0 —%
Evergy Missouri West700.0 395.3 — — 304.7 0.40%
Evergy$2,500.0 $1,159.3 $0.8 $— $1,339.9 
December 31, 2020
Evergy, Inc.$450.0 n/a$0.7 $200.0 $249.3 1.40%
Evergy Kansas Central1,000.0 50.0 17.0 — 933.0 0.23%
Evergy Metro600.0 — — — 600.0 —%
Evergy Missouri West450.0 65.0 2.0 — 383.0 0.36%
Evergy$2,500.0 $115.0 $19.7 $200.0 $2,165.3 
In May 2021, Evergy, Inc. established a commercial paper program supported by its borrowing capacity under the master credit facility.
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12. LONG-TERM DEBT
The Evergy Companies' long-term debt is detailed in the following tables.
December 31, 2021Issuing EntityYear DueEvergyEvergy Kansas CentralEvergy Metro
Mortgage Bonds (millions)
3.25% SeriesEvergy Kansas Central, Inc.2025250.0 250.0 — 
2.55% SeriesEvergy Kansas Central, Inc.2026350.0 350.0 — 
3.10% SeriesEvergy Kansas Central, Inc.2027300.0 300.0 — 
4.125% SeriesEvergy Kansas Central, Inc.2042550.0 550.0 — 
4.10% SeriesEvergy Kansas Central, Inc.2043430.0 430.0 — 
4.625% SeriesEvergy Kansas Central, Inc.2043250.0 250.0 — 
4.25% SeriesEvergy Kansas Central, Inc.2045300.0 300.0 — 
3.25% SeriesEvergy Kansas Central, Inc.2049300.0 300.0 0
3.45% SeriesEvergy Kansas Central, Inc.2050500.0 500.0 — 
6.15% SeriesEvergy Kansas South, Inc.202350.0 50.0 — 
6.53% SeriesEvergy Kansas South, Inc.2037175.0 175.0 — 
6.64% SeriesEvergy Kansas South, Inc.2038100.0 100.0 — 
4.30% SeriesEvergy Kansas South, Inc.2044250.0 250.0 — 
2.95% EIRR bondsEvergy Metro, Inc.202379.5 — 79.5 
4.125% SeriesEvergy Metro, Inc.2049400.0 — 400.0 
2.25% SeriesEvergy Metro, Inc.2030400.0 — 400.0 
Pollution Control Bonds
0.132% Series(b)
Evergy Kansas Central, Inc.203245.0 45.0 — 
0.132% Series(b)
Evergy Kansas Central, Inc.203230.5 30.5 — 
0.132% Series(b)
Evergy Kansas South, Inc.202721.9 21.9 — 
2.50% SeriesEvergy Kansas South, Inc.203150.0 50.0 — 
0.132% Series(b)
Evergy Kansas South, Inc.203214.5 14.5 — 
0.132% Series(b)
Evergy Kansas South, Inc.203210.0 10.0 — 
0.167% Series 2007A and 2007B(b)
Evergy Metro, Inc.2035146.5 — 146.5 
2.75% Series 2008Evergy Metro, Inc.203823.4 — 23.4 
Senior Notes 
3.15% Series(g)
Evergy Metro, Inc.2023300.0 — 300.0 
3.65% Series(g)
Evergy Metro, Inc.2025350.0 — 350.0 
6.05% Series (5.78% rate)(a)(g)
Evergy Metro, Inc.2035250.0 — 250.0 
5.30% Series(g)
Evergy Metro, Inc.2041400.0 — 400.0 
4.20% Series(g)
Evergy Metro, Inc.2047300.0 — 300.0 
4.20% Series(g)
Evergy Metro, Inc.2048300.0 — 300.0 
3.49% Series A(h)
Evergy Missouri West, Inc.202536.0 — — 
4.06% Series B(h)
Evergy Missouri West, Inc.203360.0 — — 
4.74% Series C(h)
Evergy Missouri West, Inc.2043150.0 — — 
3.74% Series(h)
Evergy Missouri West, Inc.2022100.0 — — 
2.86% Series A(h)
Evergy Missouri West, Inc.2031350.0 — — 
3.01% Series B(h)
Evergy Missouri West, Inc.203375.0 — — 
3.21% Series C(h)
Evergy Missouri West, Inc.203675.0 — — 
5.292% Series
Evergy, Inc.(f)
2022287.5 — — 
2.45% SeriesEvergy, Inc.2024800.0 — — 
2.90% Series (3.77% rate)(a)
Evergy, Inc.2029800.0 — — 
Medium Term Notes  
7.33% Series(h)
Evergy Missouri West, Inc.20233.0 — — 
7.17% Series(h)
Evergy Missouri West, Inc.20237.0 — — 
Fair value adjustment(e)
97.9 — — 
Current maturities(c)
(389.3)— — 
Unamortized debt discount and debt issuance costs(80.5)(42.7)(24.4)
Total excluding current maturities(d)
$9,297.9 $3,934.2 $2,925.0 
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December 31, 2020Issuing EntityYear DueEvergyEvergy Kansas CentralEvergy Metro
Mortgage Bonds (millions)
3.25% SeriesEvergy Kansas Central, Inc.2025$250.0 $250.0 $— 
2.55% SeriesEvergy Kansas Central, Inc.2026350.0 350.0 — 
3.10% SeriesEvergy Kansas Central, Inc.2027300.0 300.0 — 
4.125% SeriesEvergy Kansas Central, Inc.2042550.0 550.0 — 
4.10% SeriesEvergy Kansas Central, Inc.2043430.0 430.0 — 
4.625% SeriesEvergy Kansas Central, Inc.2043250.0 250.0 — 
4.25% SeriesEvergy Kansas Central, Inc.2045300.0 300.0 — 
3.25% SeriesEvergy Kansas Central, Inc.2049300.0 300.0 0
3.45% SeriesEvergy Kansas Central, Inc.2050500.0 500.0 — 
6.15% SeriesEvergy Kansas South, Inc.202350.0 50.0 — 
6.53% SeriesEvergy Kansas South, Inc.2037175.0 175.0 — 
6.64% SeriesEvergy Kansas South, Inc.2038100.0 100.0 — 
4.30% SeriesEvergy Kansas South, Inc.2044250.0 250.0 — 
2.95% EIRR bondsEvergy Metro, Inc.202379.5 — 79.5 
4.125% SeriesEvergy Metro, Inc.2049400.0 — 400.0 
2.25% SeriesEvergy Metro, Inc.2030400.0 — 400.0 
9.44% Series(h)
Evergy Missouri West, Inc.20211.1 — — 
Pollution Control Bonds
0.18% Series(b)
Evergy Kansas Central, Inc.203245.0 45.0 — 
0.18% Series(b)
Evergy Kansas Central, Inc.203230.5 30.5 — 
0.18% Series(b)
Evergy Kansas South, Inc.202721.9 21.9 — 
2.50% SeriesEvergy Kansas South, Inc.203150.0 50.0 — 
0.18% Series(b)
Evergy Kansas South, Inc.203214.5 14.5 — 
0.18% Series(b)
Evergy Kansas South, Inc.203210.0 10.0 — 
0.20% Series 2007A and 2007B(b)
Evergy Metro, Inc.2035146.5 — 146.5 
2.75% Series 2008Evergy Metro, Inc.203823.4 — 23.4 
Senior Notes 
3.15% Series(g)
Evergy Metro, Inc.2023300.0 — 300.0 
3.65% Series(g)
Evergy Metro, Inc.2025350.0 — 350.0 
6.05% Series (5.78% rate)(a)(g)
Evergy Metro, Inc.2035250.0 — 250.0 
5.30% Series(g)
Evergy Metro, Inc.2041400.0 — 400.0 
4.20% Series(g)
Evergy Metro, Inc.2047300.0 — 300.0 
4.20% Series(g)
Evergy Metro, Inc.2048300.0 — 300.0 
8.27% Series(h)
Evergy Missouri West, Inc.202180.9 — — 
3.49% Series AEvergy Missouri West, Inc.202536.0 — — 
4.06% Series BEvergy Missouri West, Inc.203360.0 — — 
4.74% Series CEvergy Missouri West, Inc.2043150.0 — — 
3.74% SeriesEvergy Missouri West, Inc.2022100.0 — — 
4.85% Series
Evergy, Inc.(f)
2021350.0 — — 
5.292% Series
Evergy, Inc.(f)
2022287.5 — — 
2.45% SeriesEvergy, Inc.2024800.0 — — 
2.90% Series (3.77% rate)(a)
Evergy, Inc.2029800.0 — — 
Medium Term Notes
7.33% Series(h)
Evergy Missouri West, Inc.20233.0 — — 
7.17% Series(h)
Evergy Missouri West, Inc.20237.0 — — 
Fair value adjustment(e)
110.4 — — 
Current maturities(c)
(436.4)— — 
Unamortized debt discount and debt issuance costs(84.9)(45.4)(26.4)
Total excluding current maturities(d)
$9,190.9 $3,931.5 $2,923.0 
(a)Rate after amortizing gains/losses recognized in OCI on settlements of interest rate hedging instruments.
(b)Variable rate.
(c)Evergy's current maturities total as of December 31, 2021 and 2020, includes $1.8 million and $4.4 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger.
(d)At December 31, 2021 and 2020, does not include $50.0 million and $21.9 million of secured Series 2005 Environmental Improvement Revenue Refunding (EIRR) bonds because the bonds were repurchased in September 2015 and are held by Evergy Metro.
(e)Represents the fair value adjustments recorded at Evergy consolidated related to the long-term debt of Great Plains Energy, Evergy Metro and Evergy Missouri West in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger. This amount is not part of future principal payments and will amortize over the remaining life of the associated debt instruments.
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(f)Originally issued by Great Plains Energy but assumed by Evergy, Inc. as part of the Great Plains Energy and Evergy Kansas Central merger.
(g)Effectively secured pursuant to the General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented (Evergy Metro Mortgage Indenture) through the issuance of collateral mortgage bonds to the trustee in 2019.
(h)Unconditionally guaranteed by Evergy, Inc.
Mortgage Bonds
The Evergy Kansas Central and Evergy Kansas South mortgages each contain provisions restricting the amount of first mortgage bonds (FMBs) that could be issued by each entity. Evergy Kansas Central and Evergy Kansas South must be in compliance with such restrictions prior to the issuance of additional first mortgage bonds or other secured indebtedness. The amount of Evergy Kansas Central FMBs authorized by its Mortgage and Deed of Trust, dated July 1, 1939, as supplemented, is subject to certain limitations as described below. The amount of Evergy Kansas South FMBs authorized by the Evergy Kansas South Mortgage and Deed of Trust, dated April 1, 1940, as supplemented and amended, is limited to a maximum of $3.5 billion, unless amended further. FMBs are secured by utility assets. Amounts of additional FMBs that may be issued are subject to property, earnings and certain restrictive provisions, except in connection with certain refundings, of each mortgage. As of December 31, 2021, approximately $998.9 million and $2,828.6 million principal amounts of additional Evergy Kansas Central FMBs or Evergy Kansas South FMBs, respectively, could be issued under the most restrictive provisions of their mortgages.
Evergy Metro has issued mortgage bonds under the Evergy Metro Mortgage Indenture, which creates a mortgage lien on substantially all Evergy Metro's utility plant. Additional Evergy Metro bonds may be issued on the basis of 75% of property additions or retired bonds. As of December 31, 2021, approximately $5,075.8 million principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage.
Senior Notes
Under the terms of the note purchase agreements for certain Evergy Missouri West senior notes, Evergy Missouri West is required to maintain a consolidated indebtedness to consolidated capitalization ratio, as defined in the facility,agreements, not greater than 0.65 to 1.00 at all times. At December 31, 2017, Great Plains Energy was in compliance with this covenant.  At December 31, 2017, Great Plains Energy had $11.0 million of outstanding cash borrowings at a weighted-average interest rate of 2.94% and had issued $1.0 million in letters of credit under the credit facility. At December 31, 2016, Great Plains Energy had no outstanding cash borrowings and had issued $1.0 million in letters of credit under the credit facility.
KCP&L's $600 Million Revolving Credit Facility and Commercial Paper
KCP&L's $600 million revolving credit facility with a group of banks provides support for its issuance of commercial paper and other general corporate purposes and expires in October 2019.  Great Plains Energy and KCP&L may transfer up to $200 million of unused commitments between Great Plains Energy's and KCP&L's facilities.  A default by KCP&L on other indebtedness totaling more than $50.0 million is a default under the facility.  Under the terms of this facility, KCP&L is required to maintain a consolidated indebtedness to consolidated capitalization ratio, as defined in the facility, not greater than 0.65 to 1.00 at all times.  At December 31, 2017, KCP&L was in compliance with this covenant.  At December 31, 2017, KCP&L had $167.5 million of commercial paper outstanding at a weighted-average interest rate of 1.95%, had issued letters of credit totaling $2.7 million and had no outstanding cash borrowings under the credit facility.  At December 31, 2016, KCP&L had $132.9 million of commercial paper outstanding at a weighted-average interest rate of 0.98%, had issued letters of credit totaling $2.8 million and had no outstanding cash borrowings under the credit facility.
GMO's $450 Million Revolving Credit Facility and Commercial Paper
GMO's $450 million revolving credit facility with a group of banks provides support for its issuance of commercial paper and other general corporate purposes and expires in October 2019.  Great Plains Energy and GMO may transfer up to $200 million of unused commitments between Great Plains Energy's and GMO's facilities.   A default by GMO or any of its significant subsidiaries on other indebtedness totaling more than $50.0 million is a default under the facility.  Under the terms of this facility, GMO is required to maintain a consolidated indebtedness to consolidated capitalization ratio, as defined in the facility, not greater than 0.65 to 1.00 at all times.  At December 31, 2017, GMO was in compliance with this covenant.  At December 31, 2017, GMO had $209.3 million of commercial paper outstanding at a weighted-average interest rate of 1.85%, had issued letters of credit totaling $2.1 million and had no outstanding cash borrowings under the credit facility.  At December 31, 2016, GMO had $201.9 million of commercial paper outstanding at a weighted-average interest rate of 1.02%, had issued letters of credit totaling $1.9 million and had no outstanding cash borrowings under the credit facility.

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Great Plains Energy's $864.5 Million Term Loan Facility
In connection with the Original Merger Agreement, Great Plains Energy entered into a commitment letter for a 364-day senior unsecured bridge term loan facility, originally for an aggregate principal amount of $8.017 billion to support the anticipated transaction and provide flexibility for the timing of long-term financing. Following Great Plains Energy's completed acquisition financings, the aggregate principal amount of the facility was subsequently reduced to $864.5 million and the expiration date of the facility was extended to November 30, 2017. The remaining commitment of $864.5 million was terminated in July 2017 in connection with the Amended Merger Agreement.

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12. LONG-TERM DEBT
Great Plains Energy's and KCP&L's long-term debt is detailed in the following table.
   December 31
 Year Due 2017 2016
KCP&L   (millions)
General Mortgage Bonds        
2.95% EIRR bonds2023  $79.5
   $110.5
7.15% Series 2009A (8.59% rate)(a)
2019  400.0
   400.0
Senior Notes    
    
5.85% Series (5.72% rate)(a)

  —
   250.0
6.375% Series (7.49% rate)(a)
2018  350.0
   350.0
3.15% Series2023  300.0
   300.0
3.65% Series2025  350.0
   350.0
6.05% Series (5.78% rate)(a)
2035  250.0
   250.0
5.30% Series2041  400.0
   400.0
4.20% Series2047  300.0
   —
EIRR Bonds        
1.329% Series 2007A and 2007B(b)
2035  146.5
   146.5
2.875% Series 20082038  23.4
   23.4
Current maturities   (350.0)   (281.0)
Unamortized discount and debt issuance costs   (17.2)   (15.4)
Total KCP&L excluding current maturities(c)
   2,232.2
   2,284.0
Other Great Plains Energy    
    
GMO First Mortgage Bonds 9.44% Series2018-2021  4.6
   5.7
GMO Senior Notes        
8.27% Series2021  80.9
   80.9
3.49% Series A2025  125.0
   125.0
4.06% Series B2033  75.0
   75.0
4.74% Series C2043  150.0
   150.0
GMO Medium Term Notes    
    
7.33% Series2023  3.0
   3.0
7.17% Series2023  7.0
   7.0
Great Plains Energy Senior Notes        
6.875% Series (7.33% rate)(a)

  —
   100.0
4.85% Series2021  350.0
   350.0
5.292% Series2022  287.5
   287.5
Current maturities   (1.1)   (101.1)
Unamortized discount and premium, net and debt issuance costs   (1.5)   (1.8)
Total Great Plains Energy excluding current maturities(c)
   $3,312.6
   $3,365.2
(a)
Rate after amortizing gains/losses recognized in other comprehensive income (OCI) on settlements of interest rate hedging instruments
(b)
Variable rate
(c)
At December 31, 2017 and 2016, does not include $50.0 million and $21.9 million of secured Series 2005 Environmental Improvement Revenue Refunding (EIRR) bonds because the bonds were repurchased in September 2015 and are held by KCP&L

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Amortization of Debt Expense
Great Plains Energy's and KCP&L's amortization of debt expense is detailed in the following table.
  2017 2016 2015
  (millions)
KCP&L $3.0
 $3.2
 $3.0
Other Great Plains Energy 26.9
 30.6
 1.1
Total Great Plains Energy $29.9
 $33.8
 $4.1
In 2017 and 2016, Other Great Plains Energy includes $23.6 million and $29.6 million, respectively, of amortization of debt expense related to Great Plains Energy's bridge term loan facility. Fees related to this facility were amortized over the term of the facility.

KCP&L General Mortgage Bonds
KCP&L has issued mortgage bonds under the Indenture. The Indenture creates a mortgage lien on substantially all of KCP&L's utility plant. Mortgage bonds totaling $479.5 million and $510.5 million were outstanding at December 31, 2017 and 2016, respectively. KCP&L repaid its $31.0 million secured Series 1992 EIRR bonds at maturity in July 2017.
KCP&L Senior Notes
In June 2017, KCP&L issued, at a discount, $300.0 million of 4.20% unsecured Senior Notes, maturing in 2047. KCP&L also repaid its $250.0 million of 5.85% unsecured Senior Notes at maturity in June 2017.
KCP&L Municipal Bond Insurance Policies
KCP&L's secured Series 2005 EIRR bonds totaling $50.0 million and $21.9 million, respectively, are covered by a municipal bond insurance policy between KCP&L and Syncora Guarantee, Inc. (Syncora). The insurance agreements between KCP&L and Syncora provide for reimbursement by KCP&L for any amounts that Syncora pays under the municipal bond insurance policies. The insurance agreements contain a covenant that the indebtedness to total capitalization ratio of KCP&L and its consolidated subsidiaries will not be greater than 0.68 to 1.00. At December 31, 2017, KCP&L was in compliance with this covenant. KCP&L is also restricted from issuing additional bonds under its General Mortgage Indenture if, after giving effect to such additional bonds, the proportion of secured debt to total indebtedness would be more than 75%, or more than 50% if the long term rating for such bonds by S&P Global Ratings or Moody's Investors Service would be at or below A- or A3, respectively. The insurance agreement covering the unsecured Series 2005 EIRR bonds also required KCP&L to provide collateral to Syncora in the form of $50.0 million of Mortgage Bonds Series 2005 EIRR Insurer due 2035 for KCP&L's obligations under the insurance agreement as a result of KCP&L issuing general mortgage bonds in 2009 (other than refunding of outstanding general mortgage bonds) that resulted in the aggregate amount of outstanding general mortgage bonds exceeding 10% of total capitalization. The bonds are not incremental debt for KCP&L but collateralize Syncora's claim on KCP&L if Syncora was required to meet its obligation under the insurance agreement. In the event of a default under the insurance agreements, Syncora may take any available legal or equitable action against KCP&L, including seeking specific performance of the covenants.
GMO First Mortgage Bonds
GMO has issued mortgage bonds under the General Mortgage Indenture and Deed of Trust dated April 1, 1946, as supplemented. The Indenture creates a mortgage lien on a portion of GMO's utility plant. Mortgage bonds totaling $4.6 millionand $5.7 million, respectively, were outstanding at December 31, 2017 and 2016.
GMO Senior Notes
Under the terms of the note purchase agreement for GMO's Series A, B and C Senior Notes, GMO is required to maintain a consolidated indebtedness to consolidated capitalization ratio, as defined in the agreement, not greater than 0.65 to 1.00 at all times. In addition, GMO'sEvergy Missouri West's priority debt, as defined in the agreement,agreements, cannot exceed 15% of consolidated tangible net worth, as defined in the agreement.agreements. At December 31, 2017, GMO2021, Evergy Missouri West was in compliance with these covenants.

In April 2021, Evergy Missouri West issued in a private placement $350.0 million of 2.86% Series A Senior Notes, maturing in 2031, $75.0 million of 3.01% Series B Senior Notes, maturing in 2033, and $75.0 million of 3.21% Series C Senior Notes, maturing in 2036, pursuant to a note purchase agreement. In connection with the issuance, Evergy entered into an agreement to provide an unconditional guaranty of the Series A, B and C Senior Notes, and as required by certain existing note purchase agreements, also agreed to provide unconditional guaranty of the following series of outstanding Evergy Missouri West unsecured senior notes:
•$36.0 million of 3.49% Series A, maturing in 2025;
•$60.0 million of 4.06% Series B, maturing in 2033;
•$150.0 million of 4.74% Series C, maturing in 2043; and
•$100.0 million of 3.74% Series, maturing in 2022.
In April 2021, Evergy redeemed its $350.0 million of 4.85% Senior Notes, which had a maturity date of June 2021.
In November 2021, Evergy Missouri West repaid its $80.9 million of 8.27% Senior Notes at maturity.
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Great Plains Energy Senior Notes
In March 2017, Great Plains Energy issued $4.3 billion of senior notes in order to fund the majority of the cash portion of the acquisition of Westar under the Original Merger Agreement.
In July 2017, as a result of the Amended Merger Agreement, Great Plains Energy determined in its reasonable judgment that the acquisition of Westar would not close prior to November 30, 2017 and exercised its special optional redemption right to redeem the senior notes issued in March 2017. The redemption price was equal to 101% of the principle amount of the senior notes, including accrued and unpaid interest, for a total redemption cost of $4,400.1 million. As a result of the redemption, Great Plains Energy recorded a loss on extinguishment of debt of $82.8 million in July 2017.
Great Plains Energy repaid its $100.0 million of 6.875% unsecured Senior Notes at maturity in September 2017.
Scheduled Maturities
Great Plains Energy'sEvergy's, Evergy Kansas Central's and KCP&L'sEvergy Metro's long-term debt maturities for the next five years are detailed in the following table.
20222023202420252026
(millions)
Evergy$387.5 $439.5 $800.0 $636.0 $350.0 
Evergy Kansas Central— 50.0 — 250.0 350.0 
Evergy Metro— 379.5 — 350.0 — 
  2018 2019 2020 2021 2022
  (millions)
Great Plains Energy $351.1
 $401.1
 $1.1
 $432.0
 $287.5
KCP&L 350.0
 400.0
 —
 —
 —
13. COMMON STOCKFAIR VALUE MEASUREMENTS
Great Plains Energy has an effective shelf registration statementValues of Financial Instruments
GAAP establishes a hierarchical framework for disclosing the sale of unlimited amounts of securities with the SEC that became effective in March 2015 and expires in March 2018. In September 2016, Great Plains Energy filed a post-effective amendment to its shelf registration statement to register depositary shares and preference stock among the types of securities that Great Plains Energy may offer and sell. Great Plains Energy does not expect to replace this shelf registration statement prior to the closingtransparency of the anticipated merger with Westar.
In September 2016, Great Plains Energy shareholders approved an amendment to Great Plains Energy's articles of incorporation, increasing the authorized number of shares of common stock, without par value, to 600 million shares from 250 million shares.
In October 2016, Great Plains Energy completed a registered public offering of 60.5 million shares of common stock, without par value, at a public offering price of $26.45 per share, for total gross proceeds of approximately $1.6 billion (net proceeds of approximately $1.55 billion after issuance costs). Great Plains Energy planned to use proceeds from the offering to finance a portion of the cash consideration for the acquisition of Westar under the Original Merger Agreement.
Great Plains Energy has shares of common stock registered with the SEC for its Dividend Reinvestmentinputs utilized in measuring assets and Direct Stock Purchase Plan. The plan allows for the purchase of common shares by reinvesting dividends or making optional cash payments. Great Plains Energy can issue new shares or purchase shares on the open market for the plan. At December 31, 2017, 0.9 million shares remained available for future issuances.
Great Plains Energy has shares of common stock registered with the SEC for a defined contribution savings plan (401(k)). Shares issued under the plan may be either newly issued shares or shares purchased in the open market. At December 31, 2017, 0.5 million shares remained available for future issuances.
Treasury shares are held for future distribution upon issuance of shares in conjunction with the Company's Long-Term Incentive Plan.
Great Plains Energy's articles of incorporation restrict the payment of common stock dividends in the event common equity is 25% or less of total capitalization. Certain conditions in the MPSC and KCC orders authorizing

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the holding company structure require Great Plains Energy and KCP&L to maintain consolidated common equity of at least 30% and 35%, respectively, of total capitalization (including only the amount of short-term debt in excess of the amount of construction work in progress). Under the Federal Power Act, KCP&L and GMO generally can pay dividends only out of retained earnings. The revolving credit agreements of Great Plains Energy, KCP&L and GMO and the note purchase agreement for GMO's Series A, B and C Senior Notes contain a covenant requiring the respective company to maintain a consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00 at all times. Under the Amended Merger Agreement, Great Plains Energy is also restricted from paying a quarterly common stock dividend in excess of $0.275 per share without the consent of Westar.
As of December 31, 2017, all of Great Plains Energy's and KCP&L's retained earnings and net income were free of restrictions. As a result of the above restrictions, Great Plains Energy's subsidiaries had restricted net assets of approximately $2.8 billion as of December 31, 2017. The restrictions are not expected to affect the Companies' ability to pay dividends at the current level in the foreseeable future.
14. PREFERRED STOCK
At December 31, 2017, 1.6 million shares of Cumulative No Par Preferred Stock, 390,000 shares of Cumulative Preferred Stock, $100 par value and 11.0 million shares of no par Preference Stock were authorized under Great Plains Energy's articles of incorporation.
Series A Mandatory Convertible Preferred Stock
On May 29, 2016, Great Plains Energy entered into a stock purchase agreement with OMERS, pursuant to which Great Plains Energy would issue and sell to OMERS 750,000 shares of Series A Preferred Stock, for an aggregate purchase price equal to $750 million at the closing of the Original Merger Agreement.
In July 2017, as a result of the Amended Merger Agreement, Great Plains Energy and OMERS terminated their stock purchase agreement for the Series A Preferred Stock. As a result of this termination, Great Plains Energy recorded $15 million of previously deferred offering fees to non-operating expenses in the third quarter of 2017.
Series B Mandatory Convertible Preferred Stock
In October 2016, Great Plains Energy completed a registered public offering of 17.3 million depositary shares, each representing a 1/20th interest in a share of Great Plains Energy's Series B Preferred Stock, without par value, at a public offering price of $50 per depositary share for total gross proceeds of $862.5 million (net proceeds of approximately $836.2 million after issuance costs). Great Plains Energy planned to use proceeds from the offering to fund a portion of the cash consideration for the acquisition of Westar under the Original Merger Agreement.

Each depositary share entitled the holder of such depositary share, through the bank depositary, to a 1/20th interest in the rights and preferences of the Series B Preferred Stock, including conversion, dividend, liquidation and voting rights, subject to the terms of the deposit agreement.

Unless previously converted or redeemed, on or around September 15, 2019, each outstanding share of Series B Preferred Stock would automatically convert into a number of shares of Great Plains Energy common stock equal to a conversion rate.
Dividends on the Series B Preferred Stock were payable on a cumulative basis when, as and if declared by Great Plains Energy's Board of Directors, and subject to Missouri law, at an annual rate of 7.00% on the liquidation preference of $1,000 per share of Series B Preferred Stock (or $50 per depositary share), payable in cash, Great Plains Energy common stock or a combination thereof.

Great Plains Energy's Series B Preferred Stock also contained an acquisition termination redemption option whereby in the event that the Original Merger Agreement was terminated or if Great Plains Energy determined in its reasonable judgment that the acquisition of Westar would not close or if the acquisition of Westar had not closed by November 30, 2017, then Great Plains Energy could at its sole option (but was not required to) redeem all of the Series B Preferred Stock. If exercised, the redemption price would be equal to either:

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(a) $1,000 per share plus accumulated and unpaid dividends up to the redemption date; or
(b) if the average price of Great Plains Energy's common stock exceeded a certain threshold amount, then a repurchase price that is equal to a make-whole formula.
The Series B Preferred Stock also contained a fundamental change conversion option whereby upon the occurrence of certain events deemed to be a fundamental change, including an acquisition, liquidation, or delisting of Great Plains Energy common stock, holders of the Series B Preferred Stock could:
(a) convert their existing shares into shares of Great Plains Energy common stock; and
(b) receive a dividend make-whole payment.
As a result of the Amended Merger Agreement, Great Plains Energy determined in its reasonable judgment that the acquisition of Westar under the Original Merger Agreement would not close and exercised its acquisition termination redemption option and redeemed the Series B Preferred Stock in August 2017. The Series B Preferred Stock was redeemed at a redemption price that was equal to a make-whole formula set forth in the terms of the Series B Preferred Stock. The total cost of the redemption was $963.4 million. Great Plains Energy made the entire redemption payment in cash.
The dividend make-whole provisions within both the acquisition termination redemption and fundamental change conversion options discussed above represented embedded derivatives that in accordance with GAAP, were accounted for on a combined basis separately from the Series B Preferred Stock and reportedliabilities at fair value. TheManagement's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the Series B Preferred Stock dividend make-whole provisions at inception and December 31, 2016 was insignificant. As part of the $963.4 million redemption of the Series B Preferred Stock, the Series B Preferred Stock dividend make-whole provisions liability was settled in August 2017. In 2017, Great Plains Energy recognized a loss of $124.8 million for the settlement of these provisions, which is recorded within loss on Series B Preferred Stock dividend make-whole provisions on the consolidated statements of comprehensive income (loss).
Great Plains Energy also recognized a redemption premium of $2.4 million in connection with the redemption of the Series B Preferred Stock in 2017. This premium is represented as the difference between the redemption cost of $963.4 million and the $836.2 million carryingfair value of the Series B Preferred Stock, less the $124.8 million paid to settle the Series B Preferred Stock dividend make-whole provisions. The redemption premium is recorded as a reduction to earnings (loss) available for common shareholders and is recorded within preferred stock dividend requirements and redemption premium on the consolidated statements of comprehensive income (loss).
15. COMMITMENTS AND CONTINGENCIES
Environmental Matters
Great Plains Energy and KCP&L are subject to extensive federal, state and local environmental laws, regulations and permit requirements relating to air and water quality, waste management and disposal, natural resources and health and safety.hierarchy levels. In addition, to imposing continuing compliance obligations and remediation costs, these laws, regulations and permits authorize the imposition of substantial penalties for noncompliance, including fines, injunctive relief and other sanctions.  The cost of complying with current and future environmental requirements is expected to be material to Great Plains Energy and KCP&L.  Failure to comply with environmental requirements or to timely recover environmental costs through rates couldEvergy Companies measure certain investments that do not have a material effect on Great Plains Energy's and KCP&L's results of operations, financial position and cash flows.

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Great Plains Energy's and KCP&L's current estimates of capital expenditures (exclusive of AFUDC and property taxes) over the next five years to comply with environmental regulationsreadily determinable fair value at net asset value (NAV), which are in the following table. The total cost of compliance with any existing, proposed or future laws and regulations may be significantly different from these cost estimates provided.
 20182019202020212022
 (millions)
Great Plains Energy$14.6
$2.8
$7.7
$20.1
$63.1
KCP&L14.5
2.8
7.7
20.1
63.1
The Companies expect to seek recovery of the costs associated with environmental requirements through rate increases; however, there can be no assurance that such rate increases would be granted. The Companies may be subject to materially adverse rate treatment in response to competitive, economic, political, legislative or regulatory factors and/or public perception of the Companies' environmental reputation.
The following discussion groups environmental and certain associated matters into the broad categories of air and climate change, water, solid waste and remediation.
Clean Air Act and Climate Change Overview
The Clean Air Act Amendments of 1990 (Clean Air Act) and associated regulations enacted by the EPA form a comprehensive program to preserve and enhance air quality.  States are required to establish regulations and programs to address all requirements of the Clean Air Act and have the flexibility to enact more stringent requirements.  All of Great Plains Energy's and KCP&L's generating facilities, and certain of their other facilities, are subject to the Clean Air Act.
Climate Change
The Companies' current generation capacity is primarily coal-fired and is estimated to produce about one ton of carbon dioxide (CO2) per MWh, or approximately 17 million tons and 13 million tons per year for Great Plains Energy and KCP&L, respectively. The Companies are subject to existing greenhouse gas reporting regulations and certain greenhouse gas requirements.  Federal or state legislation concerning the reduction of emissions of greenhouse gases, including CO2, could be enacted in the future. At the international level, the Paris Agreement was adopted in December 2015 by nearly 200 countries and became effective in November 2016. The Paris Agreement does not result in any new, legally binding obligations on the U.S. to meet a particular greenhouse gas emissions target, but establishes a framework for international cooperation on climate change. In June 2017, U.S. President Donald Trump announced the U.S. would withdraw from the Paris Agreement. Under the rules of the Paris Agreement, the earliest any country can withdraw is November 2020. Other international agreements legally binding on the U.S. may be reached in the future. Greenhouse gas legislation has the potential of having significant financial and operational impacts on Great Plains Energy and KCP&L; however, the ultimate financial and operational consequences to Great Plains Energy and KCP&L cannot be determined until such legislation is passed. In the absence of new Congressional mandates, the EPA is proceeding with the regulation of greenhouse gases under the existing Clean Air Act.
In August 2015, the EPA finalized CO2 emission standards for new, modified and reconstructed affected fossil-fuel-fired electric utility generating units.  The standards would not apply to Great Plains Energy's and KCP&L's existing units unless the units were modified or reconstructed in the future. Also in August 2015, the EPA finalized its Clean Power Plan which sets CO2 emission performance rates for existing affected fossil-fuel-fired electric generating units. Nationwide, by 2030, the EPA projects the Clean Power Plan would achieve CO2 emission reductions from the power sector of approximately 32% from CO2 emission levels in 2005.
In February 2016, the U.S. Supreme Court granted a stay of the Clean Power Plan putting the rule on hold pending review in the U.S. Court of Appeals for the District of Columbia Circuit and any subsequent review by the U.S. Supreme Court if such review is sought. In October 2017, the EPA proposed to repeal

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the Clean Power Plan on the basis that it exceeded the EPA’s statutory authority. In December 2017, the EPA issued an advance notice of proposed rulemaking (ANPRM) to solicit comments as the agency considers proposing a future rule to replace the Clean Power Plan. In the ANPRM, the EPA is considering proposing emission guidelines to limit greenhouse gas emissions from existing electric utility generating units. Compliance with the Clean Power Plan or any replacement rule has the potential of having significant financial and operational impacts on Great Plains Energy and KCP&L; however, the ultimate financial and operational consequences to Great Plains Energy and KCP&L cannot be determined until the outcome of the EPA's proposal to repeal the Clean Power Plan and pending litigation is known.
Clean Water Act
The Clean Water Act and associated regulations enacted by the EPA form a comprehensive program to restore and preserve water quality.  Like the Clean Air Act, states are required to establish regulations and programs to address all requirements of the Clean Water Act, and have the flexibility to enact more stringent requirements.  All of Great Plains Energy's and KCP&L's generating facilities, and certain of their other facilities, are subject to the Clean Water Act.
In May 2014, the EPA finalized regulations pursuant to Section 316(b) of the Clean Water Act regarding cooling water intake structures pursuant to a court approved settlement.  KCP&L generation facilities with cooling water intake structures are subject to the best technology available standards based on studies completed to comply with such standards. The rule provides flexibility to work with the states to develop the best technology available to minimize aquatic species impacted by being pinned against intake screens (impingement) or drawn into cooling water systems (entrainment). Estimated costs to comply with Section 316(b) of the Clean Water Act are included in the estimated capital expenditures table above.
KCP&L holds a permit from the Missouri Department of Natural Resources (MDNR) covering water discharge from its Hawthorn Station.  The permit authorizes KCP&L to, among other things, withdraw water from the Missouri River for cooling purposes and return the heated water to the Missouri River.  KCP&L has applied for a renewal of this permit and the EPA has submitted an interim objection letter regarding the allowable amount of heat that can be contained in the returned water.  Until this matter is resolved, KCP&L continues to operate under its current permit. Great Plains Energy and KCP&L cannot predict the outcome of this matter; however, while less significant outcomes are possible, this matter may require a reduction in generation, installation of cooling towers or other technology to cool the water, or both, any of which could have a significant impact on Great Plains Energy's and KCP&L's results of operations, financial position and cash flows.  
Solid Waste
Solid and hazardous waste generation, storage, transportation, treatment and disposal are regulated at the federal and state levels under various laws and regulations.  In December 2014, the EPA finalized regulations to regulate coal combustion residuals (CCRs) under the Resource Conservation and Recovery Act (RCRA) subtitle D to address the risks from the disposal of CCRs generated from the combustion of coal at electric generating facilities.  The Companies use coal in generating electricity and dispose of the CCRs in both on-site facilities and facilities owned by third parties.  KCP&L's Iatan, La Cygne, and Montrose Stations and GMO's Sibley Station have on-site facilities affected by the rule. The rule requires periodic assessments; groundwater monitoring; location restrictions; design and operating requirements; recordkeeping and notifications; and closure, among other requirements, for CCR units. The rule was promulgated in the Federal Register on April 17, 2015, and became effective six months after promulgation with various obligations effective at specified times within the rule. Estimated capital costs to comply with the CCR rule are included in the estimated capital expenditures table above. Certain requirements of the rule would require Great Plains Energy or KCP&L to expedite or incur additional capital expenditures in the future.
Great Plains Energy and KCP&L have AROs on their balance sheets for closure and post-closure of ponds and landfills containing CCRs. Certain requirements of the rule could in the future require further evaluation of the expected method of compliance and refinement of assumptions underlying the cost estimates for closure and post-closure. Great Plains Energy's and KCP&L's AROs could increase from the amounts presently recorded.

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Remediation
Certain federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), hold current and previous owners or operators of contaminated facilities and persons who arranged for the disposal or treatment of hazardous substances liable for the cost of investigation and cleanup.  CERCLA and other laws also authorize the EPA and other agencies to issue orders compelling potentially responsible parties to clean up sites that are determined to present an actual or potential threat to human health or the environment.  GMO retains some environmental liability for several operations and investments it no longer owns.  In addition, GMO also owns, or has acquired liabilities from companies that once owned or operated, former manufactured gas plant (MGP) sites, which are subject to the supervision of the EPA and various state environmental agencies.
At December 31, 2017 and 2016, KCP&L had $0.3 million accrued for environmental remediation expenses, which covers ground water monitoring at a former MGP site.  The amount accrued was established on an undiscounted basis and KCP&L does not currently have an estimated time frame over which the accrued amount may be paid.
In addition to the $0.3 million accrual above, at December 31, 2017 and 2016, Great Plains Energy had $1.5 million and $1.4 million, respectively, accrued for the future investigation and remediation of certain additional GMO identified MGP sites and retained liabilities.  This estimate was based upon review of the potential costs associated with conducting investigative and remedial actions at identified sites, as well as the likelihood of whether such actions will be necessary.  This estimate could change materially after further investigation, and could also be affected by the actions of environmental agencies and the financial viability of other potentially responsible parties; however, given the uncertaintyfair value hierarchy. Further explanation of these items the possible loss or range of loss in excess of the amount accruedlevels and NAV is not estimable.summarized below.
GMO has pursued recovery of remediation costs from insurance carriers and other potentially responsible parties.  As a result of a settlement with an insurance carrier, approximately $1.6 million in insurance proceeds less an annual deductible isLevel 1 – Quoted prices are available to GMO to recover qualified MGP remediation expenses.  GMO would seek recovery of additional remediation costs and expenses through rate increases; however, there can be no assurance that such rate increases would be granted.
Contractual Commitments
Great Plains Energy's and KCP&L's expenses related to lease commitments are detailed in the following table.
  2017 2016 2015
  (millions)
Great Plains Energy $14.2
 $15.0
 $16.8
KCP&L 13.1
 13.7
 15.0
Great Plains Energy's and KCP&L's contractual commitments at December 31, 2017, excluding pensions and long-term debt, are detailed in the following tables.
Great Plains Energy                    
  2018  2019  2020  2021  2022 After 2022Total
Lease commitments (millions)
Operating lease $12.1
  $9.3
  $9.7
  $9.7
  $9.5
  $101.0
  $151.3
Capital lease 0.4
  0.4
  0.4
  0.4
  0.4
  2.7
  4.7
Purchase commitments                    
Fuel 210.4
  180.1
  67.3
  5.1
  37.4
  80.7
  581.0
Power 47.3
  47.3
  47.3
  47.4
  47.6
  414.6
  651.5
Other 20.9
  14.7
  6.7
  5.5
  2.4
  35.9
  86.1
Total contractual commitments $291.1
  $251.8
  $131.4
  $68.1
  $97.3
  $634.9
  $1,474.6

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KCP&L                    
  2018  2019  2020  2021  2022 After 2022Total
Lease commitments (millions)
Operating lease $11.3
  $9.3
  $9.7
  $9.7
  $9.5
  $101.0
  $150.5
Capital lease 0.2
  0.2
  0.2
  0.2
  0.2
  1.4
  2.4
Purchase commitments                    
Fuel 177.5
  159.8
  51.8
  5.1
  37.4
  80.7
  512.3
Power 34.8
  34.8
  34.8
  34.9
  35.1
  289.8
  464.2
Other 20.0
  12.7
  5.8
  4.6
  1.6
  31.4
  76.1
Total contractual commitments $243.8
  $216.8
  $102.3
  $54.5
  $83.8
  $504.3
  $1,205.5
Great Plains Energy's and KCP&L's lease commitments end in 2048. Operating lease commitments include rail cars to serve jointly-owned generating units where KCP&L is the managing partner. Of the amounts included in the table above, KCP&L will be reimbursed by the other owners for approximately $1.2 million in 2018 and approximately $0.4 million per year from 2019 to 2025, for a total of $4.0 million.
Fuel commitments consist of commitments for nuclear fuel, coal and coal transportation. Power commitments consist of commitments for renewable energy under power purchase agreements. Other represents individual commitments entered into in the ordinary course of business.
16. LEGAL PROCEEDINGS
GMO Western Energy Crisis
In response to complaints of excessive prices in the California energy markets, FERC issued an order in July 2001 requiring net sellers of power in the California markets from October 2, 2000, through June 20, 2001, at prices above a FERC-determined competitive market clearing price, to make refunds to net purchasers of power in the California market during that time period.  MPS Merchant was a net purchaser of power during the refund period.
In November 2014, FERC issued an order finding that MPS Merchant engaged in tariff violations during the periods prior to October 2, 2000 (the Summer Period) and ordered refunds in the form of disgorgement of certain revenues. In November 2015 and February 2016, FERC issued additional orders regarding the refunds MPS Merchant owed.
In October 2016, MPS Merchant reached a settlement agreement, which was subsequently revised in February 2017, with certain California utilities and governmental agencies that would settle all issues in the case in exchange for $7.5 million of cash consideration as well as MPS Merchant's interest in additional funds it was entitled to during the refund period discussed above. In September 2017, the settlement agreement was approved by FERC and the settlement payment was made by MPS Merchant in October 2017. In accordance with the terms of the settlement agreement, the $7.5 million of cash consideration accrued interest at the FERC interest rate beginning on January 1, 2017, until the date of the payment of the settlement. At December 31, 2016, Great Plains Energy had accrued for the cash consideration pursuant to the settlement agreement.
17. GUARANTEES
In the ordinary course of business, Great Plains Energy and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiary's intended business purposes. The majority of these agreements guarantee the Company's own future performance, so a liability for the fair value of the obligation is not recorded.

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At December 31, 2017, Great Plains Energy has provided $133.5 million of credit support for GMO as follows:
Great Plains Energy direct guarantees to GMO counterparties totaling $38.0 million, which expire in 2018 and
Great Plains Energy guarantee of GMO long-term debt totaling $95.5 million, which includes debt with maturity dates ranging from 2018 to 2023.
Great Plains Energy has also guaranteed GMO's commercial paper program. At December 31, 2017, GMO had $209.3 million commercial paper outstanding.
18. RELATED PARTY TRANSACTIONS AND RELATIONSHIPS
KCP&L employees manage GMO's business and operate its facilities at cost, including GMO's 18% ownership interest in KCP&L's Iatan Nos. 1 and 2.  The operating expenses and capital costs billed from KCP&L to GMO were $196.3 million for 2017, $194.4 million for 2016 and $183.6 million for 2015.
KCP&L and GMO are also authorized to participate in the Great Plains Energy money pool, an internal financing arrangement in which funds may be lent on a short-term basis to KCP&L and GMO from Great Plains Energy and between KCP&L and GMO. At December 31, 2017 and 2016, KCP&L had no outstanding receivables or payables under the money pool.
The following table summarizes KCP&L's related party net receivables.
  December 31
  2017  2016 
  (millions) 
Net receivable from GMO $65.8
  $64.6
 
Net receivable from Great Plains Energy 18.9
  2.6
 
19. FAIR VALUE MEASUREMENTS
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  GAAP establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad categories, giving the highest priority to quoted prices in active markets for identical assets or liabilities. The types of assets and liabilities and lowest priority to unobservable inputs.  A definition of the various levels, as well as discussion of the various measurements within the levels, is as follows:
included in Level 1 – Unadjustedare highly liquid and actively traded instruments with quoted prices, for identical assets or liabilities in active markets that Great Plains Energy and KCP&L have access to at the measurement date.  such as equities listed on public exchanges.
Level 2 –  Market-basedPricing inputs for assets or liabilities that are observable (eithernot quoted prices in active markets but are either directly or indirectly)indirectly observable. The types of assets and liabilities included in Level 2 are certain marketable debt securities, financial instruments traded in less than active markets or inputs that are notother financial instruments priced with models using highly observable but are corroborated by market data.  inputs.
Level 3 – UnobservableSignificant inputs reflecting Great Plains Energy'sto pricing have little or no transparency. The types of assets and KCP&L's own assumptions aboutliabilities included in Level 3 are those with inputs requiring significant management judgment or estimation.
NAV - Investments that do not have a readily determinable fair value are measured at NAV. These investments do not consider the assumptions market participants would useobservability of inputs and, therefore, they are not included within the fair value hierarchy. The Evergy Companies include in pricing the asset or liability.  this category investments in private equity, real estate and alternative investment funds that do not have a readily determinable fair value. The underlying alternative investments include collateralized debt obligations, mezzanine debt and a variety of other investments.
Great Plains Energy and KCP&LThe Evergy Companies record cash and cash equivalents, accounts receivable and short-term borrowings on thetheir consolidated balance sheetsheets at cost, which approximates fair value due to the short-term nature of these instruments.

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Interest Rate Derivatives
In June 2016, Great Plains Energy enteredThe Evergy Companies are exposed to market risks arising from changes in interest rates and may use derivative instruments to manage these risks. From time to time, risk management activities may include entering into four interest rate swaps, with a total notional amount of $4.4 billion,swap agreements to hedgeprotect against unfavorable interest rate fluctuations on future issuances of long-termchanges relating to forecasted debt expected to be issued to finance a portion of the cash consideration for the acquisition of Westar under the Original Merger Agreement.  Thetransactions. These interest rate swaps wereswap agreements can be designated as economiccash flow hedges, (non-hedging derivatives). Settlement ofin which case gains and losses on the interest rate swaps was contingent onare deferred in other comprehensive income to be recognized as an adjustment to interest expense over the consummation ofsame period that the acquisition of Westar. In March 2017, in connection with Great Plains Energy's $4.3 billion senior note issuance, the settlement value of thehedged interest rate swaps to Great Plains Energy of $140.6 million was fixed.
In July 2017, thepayments affect earnings. The Evergy Companies classify all cash inflows and outflows for interest rate swap agreements were amendedaccounted for as cash flow hedges of forecasted debt transactions as financing activities on their consolidated statements of cash flows.
In September 2019, Evergy issued $800.0 million of 2.90% Senior Notes maturing in 2029 and paid $69.8 million to make theirsettle an interest rate swap agreement with a notional amount of $500.0 million that was designated as a cash settlement contingentflow hedge of interest payments on the consummationdebt issuance. The $69.8 million pre-tax loss was recorded in accumulated other comprehensive loss on Evergy's consolidated balance sheet and is being reclassified into interest expense over
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the ten-year term of the anticipated merger with Westar under the Amended Merger Agreement by November 30, 2018. Also in July 2017, Great Plains Energy redeemed its $4.3 billion senior notes that the interest rate swaps were entered into to hedge.
The fair value of the interest rate swaps recorded on Great Plains Energy's balance sheets reflects a contingency factor that management believes is representative of what a market participant would use in valuing these instruments in order to account for the contingent nature of the cash settlement of the interest rate swaps. The contingency factor was 0.35 at December 31, 2017debt. For 2021, 2020 and 2016. At December 31, 2017 and 2016, the fair value of the interest rate swaps was $91.42019, $7.0 million, $7.0 million and $79.3$2.0 million, respectively, and was recordedwere reclassified from accumulated other comprehensive loss to interest expense on the consolidated balance sheets in interest rate derivative instruments. 
Due to the redemption of Great Plains Energy’s $4.3 billion senior notes in July 2017 and the fact that the interest rate swaps no longer serve as economic hedges, Great Plains Energy recorded changes in the fair value of the interest rate swaps after July 2017 in non-operating income on Great Plains Energy’sEvergy's consolidated statements of comprehensive income (loss). All changes in the fair value of the interest rate swaps prior to July 2017 were recorded in interest charges.income. For 20172021, 2020 and 2016, Great Plains Energy recognized gains of $12.12019, $(1.5) million, $(4.0) million and $79.3$(0.5) million, respectively, forwere reclassified from accumulated other comprehensive loss to income tax expense on Evergy's consolidated statements of comprehensive income. As of December 31, 2021, Evergy expects to amortize $5.4 million to earnings from accumulated other comprehensive loss over the change in fair value of the interest rate swaps. Of these amounts, $14.0 million of gains were recorded in non-operating income in 2017.next twelve months.
Fair Value of Long-Term Debt
Great Plains Energy and KCP&L record long-term debt onThe Evergy Companies measure the balance sheet at amortized cost. The fair value of long-term debt is measured as ausing Level 2 liability and is based on quoted market prices, withmeasurements available as of the incremental borrowing rate for similar debt used to determine fair value if quoted market prices are not available. At December 31, 2017, themeasurement date. The book value and fair value of Great Plains Energy'sthe Evergy Companies' long-term debt includingand long-term debt of variable interest entities is summarized in the following table.
December 31, 2021December 31, 2020
Book ValueFair ValueBook ValueFair Value
Long-term debt(a)
(millions)
Evergy(b)
$9,687.2 $10,758.5 $9,627.3 $11,274.2 
Evergy Kansas Central3,934.2 4,522.5 3,931.5 4,801.7 
Evergy Metro2,925.0 3,400.8 2,923.0 3,591.2 
Long-term debt of variable interest entities(a)
Evergy$— $— $18.8 $19.1 
Evergy Kansas Central— — 18.8 19.1 
(a) Includes current maturities, were $3.7 billion and $4.0 billion, respectively. Atmaturities.
(b) Book value as of December 31, 2016, the book value2021 and fair value of Great Plains Energy's long-term debt, including current maturities, were $3.8 billion and $4.0 billion, respectively. At December 31, 2017, the book value and fair value of KCP&L's long-term debt, including current maturities, were $2.6 billion and $2.8 billion, respectively. At December 31, 2016, the book value and fair value of KCP&L's long-term debt, including current maturities, were $2.6 billion and $2.7 billion, respectively.
Supplemental Executive Retirement Plan
At December 31, 2017 and 2016, GMO's SERP rabbi trusts included $14.72020, includes $97.9 million and $16.0$110.4 million, respectively, of fixed income funds valued at net assetfair value per share (or its equivalent) thatadjustments recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger, which are not categorized inpart of future principal payments and will amortize over the fair value hierarchy. The fixed income fund invests primarily in intermediate and long-termremaining life of the associated debt securities, can be redeemed immediately and is not subject to any restrictions on redemptions.

instrument.
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Recurring Fair Value Measurements
The following tables include Great Plains Energy's and KCP&L'sthe Evergy Companies' balances of financial assets and liabilities measured at fair value on a recurring basis.
DescriptionDecember 31
2017		 Level 1 Level 2 Level 3DescriptionDecember 31, 2021Level 1Level 2Level 3NAV
KCP&L (millions) 
Evergy Kansas CentralEvergy Kansas Central(millions)
AssetsAssets
Nuclear decommissioning trust(a)
Nuclear decommissioning trust(a)
Domestic equity fundsDomestic equity funds$140.4 $126.5 $— $— $13.9 
International equity fundsInternational equity funds74.0 74.0 — — — 
Core bond fundCore bond fund58.1 58.1 — — — 
High-yield bond fundHigh-yield bond fund29.6 29.6 — — — 
Emerging markets bond fundEmerging markets bond fund18.0 18.0 — — — 
Alternative investments fundAlternative investments fund32.7 — — — 32.7 
Real estate securities fundReal estate securities fund15.2 — — — 15.2 
Cash equivalentsCash equivalents0.4 0.4 — — — 
Total nuclear decommissioning trustTotal nuclear decommissioning trust368.4 306.6 — — 61.8 
Rabbi trustRabbi trust
Fixed income fundsFixed income funds19.6 19.6 — — — 
Equity fundsEquity funds9.5 9.5 — — — 
Combination debt/equity/other fundCombination debt/equity/other fund2.4 2.4 — — — 
Cash equivalentsCash equivalents0.2 0.2 — — — 
Total rabbi trustTotal rabbi trust31.7 31.7 — — — 
TotalTotal$400.1 $338.3 $— $— $61.8 
Evergy MetroEvergy Metro
Assets         Assets    
Nuclear decommissioning trust (a)
         
Nuclear decommissioning trust(a)
    
Equity securities $183.8
 $183.8
 $—
 $—
 Equity securities$299.2 $299.2 $— $— $— 
Debt securities  
  
  
  
 Debt securities
U.S. Treasury 35.3
 35.3
 —
 —
 U.S. Treasury46.1 46.1 — — — 
U.S. Agency 0.4
 —
 0.4
 —
 U.S. Agency0.4 — 0.4 — — 
State and local obligations 2.1
 —
 2.1
 —
 State and local obligations4.0 — 4.0 — — 
Corporate bonds 34.1
 —
 34.1
 —
 Corporate bonds43.7 — 43.7 — — 
Foreign governments 0.1
 —
 0.1
 —
 Foreign governments0.1 — 0.1 — — 
Cash equivalents 2.5
 2.5
 —
 —
 Cash equivalents6.8 6.8 — — — 
Other 0.1
 0.1
 —
 —
 Other— — — — — 
Total nuclear decommissioning trust 258.4
 221.7
 36.7
 —
 Total nuclear decommissioning trust400.3 352.1 48.2 — — 
Self-insured health plan trust (b)
         
Self-insured health plan trust(b)
Equity securities 0.5
 0.5
 —
 —
 Equity securities2.0 2.0 — — — 
Debt securities 2.7
 0.3
 2.4
 —
 Debt securities8.7 2.7 6.0 — — 
Cash and cash equivalents 7.7
 7.7
 —
 —
 Cash and cash equivalents1.8 1.8 — — — 
Total self-insured health plan trust 10.9
 8.5
 2.4
 —
 Total self-insured health plan trust12.5 6.5 6.0 — — 
Total $269.3
 $230.2
 $39.1
 $—
 Total$412.8 $358.6 $54.2 $— $— 
Other Great Plains Energy  
  
  
  
 
Assets  
  
  
  
 
Interest rate derivative instruments (c)
 $91.4
 $—
 $—
 $91.4
 
Other EvergyOther Evergy
Other Evergy investmentsOther Evergy investments
Equity securities(c)
Equity securities(c)
$31.4 $— $31.4 $— $— 
Total other Evergy investmentsTotal other Evergy investments31.4 — 31.4 — — 
Rabbi trustsRabbi trusts
Core bond fundCore bond fund12.5 12.5 — — — 
Total rabbi trustsTotal rabbi trusts12.5 12.5 — — — 
Total $91.4
 $—
 $—
 $91.4
 Total$43.9 $12.5 $31.4 $— $— 
Great Plains Energy  
  
  
  
 
EvergyEvergy    
Assets  
  
  
  
 Assets    
Nuclear decommissioning trust (a)
 $258.4
 $221.7
 $36.7
 $—
 
Nuclear decommissioning trust(a)
$768.7 $658.7 $48.2 $— $61.8 
Rabbi trustsRabbi trusts44.2 44.2 — — — 
Self-insured health plan trust (b)
 10.9
 8.5
 2.4
 —
 
Self-insured health plan trust(b)
12.5 6.5 6.0 — — 
Interest rate derivative instruments (c)
 91.4
 —
 —
 91.4
 
Other Evergy investments(c)
Other Evergy investments(c)
31.4 — 31.4 — — 
Total $360.7
 $230.2
 $39.1
 $91.4
 Total$856.8 $709.4 $85.6 $— $61.8 
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DescriptionDecember 31, 2020Level 1Level 2Level 3NAV
Evergy Kansas Central(millions)
Assets
Nuclear decommissioning trust(a)
Domestic equity funds$102.7 $95.1 $— $— $7.6 
International equity funds63.8 63.8 — — — 
Core bond fund40.6 40.6 — — — 
High-yield bond fund25.0 25.0 — — — 
Emerging markets bond fund21.0 21.0 — — — 
Combination debt/equity/other fund20.1 20.1 — — — 
Alternative investments fund23.2 — — — 23.2 
Real estate securities fund12.9 — — — 12.9 
Cash equivalents0.5 0.5 — — — 
Total nuclear decommissioning trust309.8 266.1 — — 43.7 
Rabbi trust
Core bond fund25.6 — — — 25.6 
Combination debt/equity/other fund7.1 — — — 7.1 
Total rabbi trust32.7 — — — 32.7 
Total$342.5 $266.1 $— $— $76.4 
Evergy Metro
Assets    
Nuclear decommissioning trust(a)
   
Equity securities$243.1 $243.1 $— $— $— 
Debt securities     
U.S. Treasury47.7 47.7 — — — 
U.S. Agency0.5 — 0.5 — — 
State and local obligations4.1 — 4.1 — — 
Corporate bonds43.1 — 43.1 — — 
Foreign governments0.1 — 0.1 — — 
Cash equivalents3.2 3.2 — — — 
Other0.5 0.5 — — — 
Total nuclear decommissioning trust342.3 294.5 47.8 — — 
Self-insured health plan trust(b)
Equity securities1.7 1.7 — — — 
Debt securities8.0 2.8 5.2 — — 
Cash and cash equivalents3.5 3.5 — — — 
Total self-insured health plan trust13.2 8.0 5.2 — — 
Total$355.5 $302.5 $53.0 $— $— 
Other Evergy
Assets
Rabbi trusts
Fixed income fund$13.1 $— $— $— $13.1 
Cash and cash equivalents0.5 0.5 — — — 
Total rabbi trusts$13.6 $0.5 $— $— $13.1 
Evergy    
Assets    
Nuclear decommissioning trust(a)
$652.1 $560.6 $47.8 $— $43.7 
Rabbi trust46.3 0.5 — — 45.8 
Self-insured health plan trust(b)
13.2 8.0 5.2 — — 
Total$711.6 $569.1 $53.0 $— $89.5 
(a)With the exception of investments measured at NAV, fair value is based on quoted market prices of the investments held by the trust and/or valuation models.  
(b)Fair value is based on quoted market prices of the investments held by the trust. Debt securities classified as Level 1 are comprised of U.S. Treasury securities. Debt securities classified as Level 2 are comprised of corporate bonds, U.S. Agency, state and local obligations, and other asset-backed securities.
(c)Fair value is based on quoted market prices adjusted for a discount for lack of marketability based on a valuation model due to a restriction on the sale of the stock.
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DescriptionDecember 31
2016		 Level 1 Level 2 Level 3
KCP&L (millions) 
Assets               
Nuclear decommissioning trust (a)
               
Equity securities $153.9
   $153.9
   $—
   $—
 
Debt securities  
    
    
    
 
U.S. Treasury 27.8
   27.8
   —
   —
 
U.S. Agency 1.7
   —
   1.7
   —
 
State and local obligations 3.2
   —
   3.2
   —
 
Corporate bonds 32.4
   —
   32.4
   —
 
Foreign governments 0.1
   —
   0.1
   —
 
Cash equivalents 3.8
   3.8
   —
   —
 
Total nuclear decommissioning trust 222.9
   185.5
   37.4
   —
 
Self-insured health plan trust (b)
               
Equity securities 0.9
   0.9
   —
   —
 
Debt securities 4.8
   0.1
   4.7
   —
 
Cash and cash equivalents 5.6
   5.6
   —
   —
 
Total self-insured health plan trust 11.3
   6.6
   4.7
   —
 
Total $234.2
   $192.1
   $42.1
   $—
 
Other Great Plains Energy  
    
    
    
 
Assets  
    
    
    
 
Interest rate derivative instruments (c)
 $79.3
   $—
   $—
   $79.3
 
Total $79.3
   $—
   $—
  
$79.3
 
Great Plains Energy  
    
    
    
 
Assets  
    
    
    
 
Nuclear decommissioning trust (a)
 $222.9
   $185.5
   $37.4
   $—
 
Self-insured health plan trust (b)
 11.3
   6.6
   4.7
   —
 
Interest rate derivative instruments (c)
 79.3
   —
   —
   79.3
 
Total $313.5
   $192.1
   $42.1
   $79.3
 
(a)
Fair value is based on quoted market prices of the investments held by the fund and/or valuation models.  
(b)
Fair value is based on quoted market prices of the investments held by the trust. Debt securities classified as Level 1 are comprised of U.S. Treasury securities. Debt securities classified as Level 2 are comprised of corporate bonds, U.S. Agency, state and local obligations, and other asset-backed securities.
(c)
At December 31, 2017, the fair value of interest rate derivative instruments is based on the settlement value of $140.6 million discounted by a contingency factor of 0.35 that management believes is representative of what a market participant would use in valuing these instruments in order to account for the contingent nature of the cash settlement of these instruments. At December 31, 2016, the fair value of interest rate derivative instruments is determined by calculating the net present value of expected payments and receipts under the interest rate swaps using observable market inputs including interest rates and London Interbank Offered Rate swap rates discounted by a contingency factor of 0.35. A decrease in the contingency factor would result in a higher fair value measurement. The contingency factor will increase or decrease in response to facts and circumstances that in the view of a market participant, would increase or decrease the likelihood that the merger with Westar is not consummated. Because of the unobservable nature of the contingency factor, the interest rate derivatives have been classified as Level 3.


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Certain Evergy and Evergy Kansas Central investments included in the table above are measured at NAV as they do not have readily determinable fair values. In certain situations, these investments may have redemption restrictions.
The following table reconciles the beginning and ending balances for all Level 3 assets measured at fair value on a recurring basis.
Great Plains Energy   
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)   
 Derivative Instruments
 2017 2016
 (millions)
Net asset at January 1$79.3
 $—
Total realized/unrealized gains (losses): 
  
included in interest charges(1.9) 79.3
included in non-operating income14.0
 —
included in loss on Series B Preferred Stock dividend make-whole provisions(124.8) —
Settlements124.8
 —
Net asset at December 31$91.4
 $79.3
Total unrealized gains (losses) relating to assets still on the consolidated balance sheet at December 31:   
included in interest charges$(1.9) $79.3
included in non-operating income$14.0
 $—
See Note 14 forprovides additional information concerningon these Evergy and Evergy Kansas Central investments.
December 31, 2021December 31, 2020December 31, 2021
FairUnfundedFairUnfundedRedemptionLength of
ValueCommitmentsValueCommitmentsFrequencySettlement
Evergy Kansas Central(millions)
Nuclear decommissioning trust:
Domestic equity funds$13.9 $1.7 $7.6 $2.2 (a)(a)
Alternative investments fund(b)
32.7 — 23.2 — Quarterly65 days
Real estate securities fund(b)
15.2 — 12.9 — Quarterly65 days
Total$61.8 $1.7 $43.7 $2.2 
Rabbi trust:
Core bond fund$— $— $25.6 $— (c)(c)
Combination debt/equity/other fund— — 7.1 — (c)(c)
Total$— $— $32.7 $— 
Other Evergy
Rabbi trust:
Fixed income fund$— $— $13.1 $— (c)(c)
Total Evergy investments at NAV$61.8 $1.7 $89.5 $2.2 
(a)This investment is in 5 long-term private equity funds that do not permit early withdrawal. Investments in these funds cannot be distributed until the Series B Preferred Stock dividend make-whole provisions.underlying investments have been liquidated, which may take years from the date of initial liquidation. NaN funds have begun to make distributions. The initial investment in the fourth and fifth funds occurred in 2016 and 2018, respectively. The fourth fund's term is 15 years, subject to the general partner's right to extend the term for up to 3 additional one-year periods. The fifth fund's term is 15 years, subject to additional extensions approved by a fund advisory committee to provide for an orderly liquidation of fund investments and dissolution of the fund.
(b)There is a holdback on final redemptions.
20. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)(c)This investment can be redeemed immediately and is not subject to any restrictions on redemptions.
The following tables reflectEvergy Companies hold equity and debt investments classified as securities in various trusts including for the changepurposes of funding the decommissioning of Wolf Creek and for the benefit of certain retired executive officers of Evergy Kansas Central. The Evergy Companies record net realized and unrealized gains and losses on the nuclear decommissioning trusts in regulatory liabilities on their consolidated balance sheets and record net realized and unrealized gains and losses on the Evergy Companies' rabbi trusts in the balancesconsolidated statements of each component of accumulated otherincome and comprehensive income (loss) for Great Plains Energy and KCP&L.income.
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Great Plains Energy            
  
Gains and Losses on Cash Flow Hedges(a)
 
Defined Benefit Pension Items(a)
  
Total(a)
 
  (millions)
2017            
Beginning balance January 1  $(4.5)   $(2.1)   $(6.6) 
Other comprehensive loss before reclassification  —
   (0.9)   (0.9) 
Amounts reclassified from accumulated other comprehensive loss  4.9
   0.4
   5.3
 
Net current period other comprehensive income (loss)  4.9
   (0.5)   4.4
 
Ending balance December 31  $0.4
   $(2.6)   $(2.2) 
2016            
Beginning balance January 1  $(10.1)   $(1.9)   $(12.0) 
Other comprehensive loss before reclassifications  —
   (0.7)   (0.7) 
Amounts reclassified from accumulated other comprehensive loss  5.6
   0.5
   6.1
 
Net current period other comprehensive income (loss)  5.6
   (0.2)   5.4
 
Ending balance December 31  $(4.5)   $(2.1)   $(6.6) 
(a) Net of tax

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KCP&L    
  
Gains and Losses on Cash Flow Hedges(a)
  (millions)
2017    
Beginning balance January 1  $(4.2) 
Amounts reclassified from accumulated other comprehensive loss  4.6
 
Net current period other comprehensive income  4.6
 
Ending balance December 31  $0.4
 
2016    
Beginning balance January 1  $(9.6) 
Amounts reclassified from accumulated other comprehensive loss  5.4
 
Net current period other comprehensive income  5.4
 
Ending balance December 31  $(4.2) 
(a) Net of tax
The following tables reflecttable summarizes the net unrealized gains (losses) for the Evergy Companies' nuclear decommissioning trusts and rabbi trusts.
202120202019
Evergy(millions)
Nuclear decommissioning trust - equity securities$101.8 $45.5 74.0 
Nuclear decommissioning trust - debt securities(4.5)5.3 5.1 
Rabbi trusts - equity securities(1.8)(5.6)3.1 
Total$95.5 $45.2 $82.2 
Evergy Kansas Central
Nuclear decommissioning trust - equity securities$50.5 $21.9 33.3 
Rabbi trust - equity securities(1.4)(6.1)3.2 
Total$49.1 $15.8 $36.5 
Evergy Metro
Nuclear decommissioning trust - equity securities$51.3 $23.6 40.7 
Nuclear decommissioning trust - debt securities(4.5)5.3 5.1 
Total$46.8 $28.9 $45.8 
14. COMMITMENTS AND CONTINGENCIES
Environmental Matters
Set forth below are descriptions of contingencies related to environmental matters that may impact the Evergy Companies' operations or their financial results.Management's assessment of these contingencies, which are based on federal and state statutes and regulations, and regulatory agency and judicial interpretations and actions, has evolved over time.These laws, regulations, interpretations and actions can also change, restrict or otherwise impact the Evergy Companies' operations or financial results.The failure to comply with these laws, regulations, interpretations and actions could result in the assessment of administrative, civil and criminal penalties and the imposition of remedial requirements.The Evergy Companies believe that all their operations are in substantial compliance with current federal, state and local environmental standards.
There are a variety of final and proposed laws and regulations that could have a material adverse effect on the Evergy Companies' operations and consolidated financial results.Due in part to the complex nature of environmental laws and regulations, the Evergy Companies are unable to assess the impact of potential changes that may develop with respect to the environmental contingencies described below.
Clean Air Act - Startup, Shutdown and Malfunction (SSM) Regulation
In 2015, the EPA issued a final rule addressing how state implementation plans (SIPs) can treat excess emissions during SSM events. This rule was referred to as the 2015 SIP Call Rule. The rule required 36 states to submit SIP revisions by November 2016 to remove certain line itemsexemptions and other discretionary enforcement provisions that apply to excess emissions during SSM events. Legal challenges ensued and the case was eventually placed in abeyance. In December 2021, the U.S. Court of net incomeAppeals for the D.C. Circuit (D.C. Circuit) restarted the 2015 SIP Call Rule litigation. The outcome of this case could result in required SIP revisions in Oklahoma, Kansas and Missouri which could have a material impact on the Evergy Companies.
Ozone Interstate Transport State Implementation Plans
In 2015, the EPA lowered the Ozone National Ambient Air Quality Standards (NAAQS) from amounts reclassified out75 ppb to 70 ppb. Impacted states were required to submit Interstate Transport State Implementation Plans (ITSIPs) in 2018 to comply with the good neighbor provisions of each componentthe Clean Air Act. The EPA did not act on these ITSIP submissions and was challenged in a court filing in May 2021 to address them. In January 2022, the U.S. District Court for the Northern District of accumulated other comprehensive income (loss)California entered a final consent decree between the EPA and various environmental groups requiring the EPA to approve or disapprove, in whole or in part, by February 28, 2022, the ITSIPs for Great Plains Energythe 2015 Ozone NAAQS, for twenty-one states including Kansas, Missouri and KCP&L.Oklahoma.For any ITSIP fully or partially
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Great Plains Energy      
Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Income Statement
  2017 2016  
  (millions)  
Gains (losses) on cash flow hedges (effective portion)      
Interest rate contracts $(7.9) $(9.2) Interest charges
  (7.9) (9.2) Income before income tax expense and income from equity investments
  3.0
 3.6
 Income tax benefit
  $(4.9) $(5.6) Net income (loss)
Amortization of defined benefit pension items      
Net losses included in net periodic benefit costs $(0.7) $(0.8) Utility operating and maintenance expenses
  (0.7) (0.8) Income before income tax expense and income from equity investments
  0.3
 0.3
 Income tax benefit
  $(0.4) $(0.5) Net income (loss)
       
Total reclassifications, net of tax $(5.3) $(6.1) Net income (loss)

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disapproved by the EPA along with a corresponding federal implementation plan (FIP) proposed by February 28, 2022, the consent decree requires the EPA to sign a final action on the ITSIP for the affected state by December 15, 2022. On January 25, 2022, the EPA transmitted a proposed FIP to the Office of Management and Budget for review. On February 8, 2022, the EPA published a proposed approval of the Kansas ITSIP in the Federal Register. On February 22, 2022, the EPA published proposed disapprovals of ITSIPs for nineteen states including Missouri and Oklahoma. The EPA is also in the process of reconsidering the 2020 Ozone NAAQS and the 2020 PM2.5 NAAQS. Due to uncertainty regarding the disposition of these 2015 Ozone NAAQS ITSIPs for Kansas, Missouri and Oklahoma, along with potential lowering of the 2020 NAAQS, the Evergy Companies cannot determine the impacts on their operations or consolidated financial results, but the cost to comply with a FIP or a lower future NAAQS could be material.
Regional Haze Rule
In 1999, the EPA finalized the Regional Haze Rule which aims to restore national parks and wilderness areas to pristine conditions.The rule requires states in coordination with the EPA, the National Park Service, the U.S. Fish and Wildlife Service, the U.S. Forest Service, and other interested parties to develop and implement air quality protection plans to reduce the pollution that causes visibility impairment.There are 156 "Class I" areas across the U.S. that must be restored to pristine conditions by the year 2064.There are no Class I areas in Kansas, whereas Missouri has two: the Hercules-Glades Wilderness Area and the Mingo Wilderness Area.States must submit revisions to their Regional Haze Rule SIPs every ten years and the first round was due in 2007.For the second ten-year implementation period, the EPA issued a final rule revision in 2017 that allowed states to submit their SIP revisions by July 31, 2021.The Evergy Companies have been in contact with the Kansas Department of Health and Environmental (KDHE) and the Missouri Department of Natural Resources (MDNR) as they worked to draft their SIP revisions.The Missouri SIP revision is still being drafted.MDNR has indicated they intend to submit the Missouri SIP revision in early 2022 and that it will not require any additional reductions from the Evergy Companies' generating units in the state.The Kansas SIP revision was placed on public notice in June 2021 and requested no additional emission reductions by electric utilities based on the significant reductions that were achieved during the first implementation period.The EPA provided comments on the Kansas SIP revision in June 2021 that each state is statutorily required to conduct a "four-factor analysis" on at least two sources within the state to help determine if further emission reductions are necessary.The EPA also stated it would be difficult to approve the Kansas SIP revision if at least two four-factor analyses are not conducted on Kansas emission sources.KDHE submitted the Kansas SIP revision in July 2021.If a Kansas generating unit of the Evergy Companies is selected for analysis, the possibility exists that the state or EPA, through a FIP, could determine that additional operational or physical modifications are required on the generating unit to further reduce emissions.The overall cost of those modifications could be material to the Evergy Companies.
Greenhouse Gases
Burning coal and other fossil fuels releases carbon dioxide (CO2) and other gases referred to as greenhouse gases (GHG). Various regulations under the federal Clean Air Act Amendments of 1990 (CAA) limit CO2 and other GHG emissions, and in addition, other measures are being imposed or offered by individual states, municipalities and regional agreements with the goal of reducing GHG emissions.
In July 2019, the EPA published the final Affordable Clean Energy (ACE) rule in the Federal Register.This rule contained emission guidelines for GHG emissions from existing electric utility generating units (EGUs) and revisions to emission guideline implementing regulations.The rule defined the "best system of emission reduction" (BSER) for GHG emissions from existing coal-fired EGUs as on-site, heat-rate efficiency improvements.In conjunction with the finalization of the ACE rule, the EPA repealed its previously adopted Clean Power Plan (CPP).In January 2021, the D.C. Circuit vacated and remanded the ACE rule back to the EPA.In October 2021, the Supreme Court granted petitions for certiorari to review the D.C. Circuit decision to vacate and remand the ACE rule. A ruling from the Supreme Court is expected in mid-2022.
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KCP&L      
Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Income Statement
  2017 2016  
  (millions)  
Gains (losses) on cash flow hedges (effective portion)      
Interest rate contracts $(7.5) $(8.8) Interest charges
  (7.5) (8.8) Income before income tax expense
  2.9
 3.4
 Income tax benefit
Total reclassifications, net of tax $(4.6) $(5.4) Net income
Due to uncertainty regarding the future of the ACE rule or other potential GHG regulations, the Evergy Companies cannot determine the impacts on their operations or consolidated financial results, but the cost to comply with the ACE rule or other potential GHG rules could be material.
Water
21.The Evergy Companies discharge some of the water used in generation and other operations containing substances deemed to be pollutants.A November 2015 EPA rule applicable to steam-electric power generating plants establishes effluent limitations guidelines (ELG) and standards for wastewater discharges, including limits on the amount of toxic metals and other pollutants that can be discharged.Implementation timelines for this 2015 rule vary from 2018 to 2023.In April 2019, the U.S. Court of Appeals for the 5th Circuit (5th Circuit) issued a ruling that vacated and remanded portions of the original ELG rule.Due to this ruling, the EPA announced a plan in July 2021 to release a proposed rulemaking in September 2022 to address the vacated limitations for legacy wastewater and landfill leachate.Future ELG modifications for the best available technology economically achievable for the discharge of legacy wastewater and landfill leachate are likely and could be material to the Evergy Companies.
In October 2020, the EPA published the final ELG reconsideration rule.This rule adjusts numeric limits for flue gas desulfurization (FGD) wastewater and adds a 10% volumetric purge limit for bottom ash transport water.The timeline for final FGD wastewater compliance is as soon as possible on or after one year following publication of the final rule in the Federal Register but no later than December 31, 2025.In August 2021, the EPA published notice in the Federal Register that it is initiating a supplemental rulemaking to revise the ELG regulations after completing review of the reconsideration rule as a result of an executive order from President Biden.As part of the rulemaking process, the EPA will determine if more stringent limitations and standards are appropriate.The 2020 ELG reconsideration rule will remain in effect while the EPA undertakes this new rulemaking.
The Evergy Companies have reviewed the 2020 ELG reconsideration regulation, and the costs to comply with these changes are not expected to be material.However, the Evergy Companies cannot predict what revisions the EPA may make under its supplemental rulemaking to revise the ELG regulations, and compliance costs associated with any revisions could be material.
After reviewing the Navigable Waters Protection Rule as directed by President Biden's administration, the EPA and Department of the Army determined a need to revise the definition to prevent environmental degradation.In December 2021, the EPA and the Department of the Army published a proposed rule that repeals the Navigable Waters Protection Rule and revises the definition of “Waters of the United States.”This proposed rule restores definitions of Waters of the United States that were in place prior to 2015.The Evergy Companies are reviewing the proposed rule and the impact on their operations or consolidated financial results could be material. A second rulemaking is expected in the future which will replace the Navigable Waters Protection Rule. The cost to comply with any future rulemaking that replaces the Navigable Waters Protection Rule could be material to the Evergy Companies.
Regulation of Coal Combustion Residuals
In the course of operating their coal generation plants, the Evergy Companies produce CCRs, including fly ash, gypsum and bottom ash.The EPA published a rule to regulate CCRs in April 2015 that requires additional CCR handling, processing and storage equipment and closure of certain ash disposal units.
The Evergy Companies have recorded AROs for their current estimates for the closure of ash disposal ponds and landfills, but the revision of these AROs may be required in the future due to changes in existing CCR regulations, the results of groundwater monitoring of CCR units or changes in interpretation of existing CCR regulations or changes in the timing or cost to close ash disposal ponds and landfills.If revisions to these AROs are necessary, the impact on the Evergy Companies' operations or consolidated financial results could be material.
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Nuclear Insurance
Nuclear liability, property and accidental outage insurance is maintained for Wolf Creek. These policies contain certain industry standard terms, conditions and exclusions, including, but not limited to, ordinary wear and tear and war. An industry aggregate limit of $3.2 billion for nuclear events ($1.8 billion of non-nuclear events) plus any reinsurance, indemnity or any other source recoverable by Nuclear Electric Insurance Limited (NEIL), provider of property and accidental outage insurance, exists for acts of terrorism affecting Wolf Creek or any other NEIL insured plant within 12 months from the date of the first act. In addition, participation is required in industry-wide retrospect assessment programs as discussed below.
Nuclear Liability Insurance
Pursuant to the Price-Anderson Act, liability insurance includes coverage against public nuclear liability claims resulting from nuclear incidents to the required limit of public liability, which is approximately $13.6 billion. This limit of liability consists of the maximum available commercial insurance of $0.5 billion and the remaining $13.1 billion is provided through mandatory participation in an industry-wide retrospective assessment program. Under this retrospective assessment program, the owners of Wolf Creek are jointly and severally subject to an assessment of up to $137.6 million (Evergy's share is $129.4 million and each of Evergy Kansas Central's and Evergy Metro's is $64.7 million), payable at no more than $20.5 million (Evergy's share is $19.2 million and each of Evergy Kansas Central's and Evergy Metro's is $9.6 million) per incident per year per reactor for any commercial U.S. nuclear reactor qualifying incident. Both the total and yearly assessment is subject to an inflationary adjustment based on the Consumer Price Index and applicable premium taxes. In addition, the U.S. Congress could impose additional revenue-raising measures to pay claims.
Nuclear Property and Accidental Outage Insurance
The owners of Wolf Creek carry decontamination liability, nuclear property damage and premature nuclear decommissioning liability insurance for Wolf Creek totaling approximately $2.8 billion. Insurance coverage for non-nuclear property damage accidents total approximately $2.3 billion. In the event of an extraordinary nuclear accident, insurance proceeds must first be used for reactor stabilization and site decontamination in accordance with a plan mandated by the NRC. The Evergy Companies' share of any remaining proceeds can be used to pay for property damage or, if certain requirements are met, including decommissioning the plant, toward a shortfall in the nuclear decommissioning trust fund. The owners also carry additional insurance with NEIL to help cover costs of replacement power and other extra expenses incurred during a prolonged outage resulting from accidental property damage at Wolf Creek. If significant losses were incurred at any of the nuclear plants insured under the NEIL policies, the owners of Wolf Creek may be subject to retrospective assessments under the current policies of approximately $30.0 million (Evergy's share is $28.2 million and each of Evergy Kansas Central's and Evergy Metro's is $14.1 million).
Nuclear Insurance Considerations
Although the Evergy Companies maintain various insurance policies to provide coverage for potential losses and liabilities resulting from an accident or an extended outage, the insurance coverage may not be adequate to cover the costs that could result from a catastrophic accident or extended outage at Wolf Creek. Any substantial losses not covered by insurance, to the extent not recoverable in prices, would have a material effect on the Evergy Companies' consolidated financial results.
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Contractual Commitments - Fuel and Power
The Evergy Companies' contractual commitments for fuel and power at December 31, 2021 are detailed in the following tables. See Notes 9, 12 and 20 for information regarding pension, long-term debt and lease commitments, respectively.
Evergy
20222023202420252026After 2026Total
Purchase commitments(millions)
Fuel$403.1 $183.5 $130.2 $100.4 $106.7 $221.1 $1,145.0 
Power63.0 63.6 58.0 58.4 58.4 294.2 595.6 
Total fuel and power commitments$466.1 $247.1 $188.2 $158.8 $165.1 $515.3 $1,740.6 
Evergy Kansas Central
20222023202420252026After 2026Total
Purchase commitments(millions)
Fuel$232.4 $102.6 $83.3 $69.4 $72.6 $121.3 $681.6 
Power0.9 0.9 0.9 0.9 0.9 3.6 8.1 
Total fuel and power commitments$233.3 $103.5 $84.2 $70.3 $73.5 $124.9 $689.7 
Evergy Metro
20222023202420252026After 2026Total
Purchase commitments(millions)
Fuel$145.3 $73.7 $43.3 $28.4 $31.4 $99.8 $421.9 
Power35.1 35.3 29.2 29.2 29.2 166.9 324.9 
Total fuel and power commitments$180.4 $109.0 $72.5 $57.6 $60.6 $266.7 $746.8 
Fuel commitments consist of commitments for nuclear fuel, coal and coal transportation. Power commitments consist of certain commitments for renewable energy under power purchase agreements, capacity purchases and firm transmission service.
15. GUARANTEES
In the ordinary course of business, Evergy and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiary's intended business purposes. The majority of these agreements guarantee Evergy's own future performance, so a liability for the fair value of the obligation is not recorded.
At December 31, 2021, Evergy has provided $904.0 million of credit support for certain of its subsidiaries as follows:
•Evergy direct guarantees to Evergy Kansas Central and Evergy Metro counterparties for certain fuel supply contracts totaling $48.0 million, which expire in 2027; and
•Evergy's guarantee of Evergy Missouri West long-term debt totaling $856.0 million, which includes debt with maturity dates ranging from 2022 to 2043.
Evergy has also guaranteed Evergy Missouri West's commercial paper program. At December 31, 2021, Evergy Missouri West had $395.3 million of commercial paper outstanding. None of the guaranteed obligations are subject to default or prepayment if Evergy Missouri West's credit ratings were downgraded.
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16. RELATED PARTY TRANSACTIONS AND RELATIONSHIPS
In the normal course of business, Evergy Kansas Central, Evergy Metro and Evergy Missouri West engage in related party transactions with one another. A summary of these transactions and the amounts associated with them is provided below.
Jointly-Owned Plants and Shared Services
Employees of Evergy Kansas Central and Evergy Metro manage Evergy Missouri West's business and operate its facilities at cost, including Evergy Missouri West's 18% ownership interest in Evergy Metro's Iatan Nos. 1 and 2.  Employees of Evergy Kansas Central manage Jeffrey Energy Center (JEC) and operate its facilities at cost, including Evergy Missouri West's 8% ownership interest in JEC. Employees of Evergy Metro manage La Cygne Station and operate its facilities at cost, including Evergy Kansas Central's 50% interest in La Cygne Station. Employees of Evergy Metro and Evergy Kansas Central also provide one another with shared service support, including costs related to human resources, information technology, accounting and legal services.
The operating expenses and capital costs billed for jointly-owned plants and shared services are detailed in the following table.
202120202019
(millions)
Evergy Kansas Central billings to Evergy Missouri West$32.5 $37.6 $24.9 
Evergy Metro billings to Evergy Missouri West142.1 168.7 172.8 
Evergy Kansas Central billings to Evergy Metro29.4 34.7 40.6 
Evergy Metro billings to Evergy Kansas Central134.7 130.8 154.9 
Money Pool
Evergy Kansas Central, Evergy Metro and Evergy Missouri West are authorized to participate in the Evergy, Inc. money pool, which is an internal financing arrangement in which funds may be lent on a short-term basis between Evergy Kansas Central, Evergy Metro, Evergy Missouri West and Evergy, Inc. Evergy, Inc. can lend but not borrow under the money pool. The Evergy, Inc. money pool was amended in July 2021 to include Evergy Kansas Central as a participant.
At December 31, 2021, Evergy Metro had a $155.0 million outstanding receivable from Evergy Missouri West under the money pool. At December 31, 2020, Evergy Metro had a $100.0 million outstanding receivable from Evergy Missouri West under the money pool.
Related Party Net Receivables and Payables
The following table summarizes Evergy Kansas Central's and Evergy Metro's related party net receivables and payables.
December 31
20212020
Evergy Kansas Central(millions)
Net receivable from (payable to) Evergy$(2.2)$0.1 
Net payable to Evergy Metro(14.5)(21.7)
Net receivable from Evergy Missouri West10.4 6.6 
Evergy Metro
Net receivable from Evergy$8.7 $15.7 
Net receivable from Evergy Kansas Central14.5 21.7 
Net receivable from Evergy Missouri West254.5 188.1 
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Tax Allocation Agreement
Evergy files a consolidated federal income tax return as well as unitary and combined income tax returns in several state jurisdictions with Kansas and Missouri being the most significant. Income taxes for consolidated or combined subsidiaries are allocated to the subsidiaries based on separate company computations of income or loss. The following table summarizes Evergy Kansas Central's and Evergy Metro's income taxes receivable from (payable to) Evergy.
December 31
20212020
Evergy Kansas Central(millions)
Income taxes receivable from Evergy$9.6 $25.3 
Evergy Metro
Income taxes receivable from (payable to) Evergy$(2.5)$3.2 
17. SHAREHOLDERS' EQUITY
Evergy's authorized capital stock consists of 600 million shares of common stock, without par value, and 12 million shares of Preference Stock, without par value.
Bluescape Energy Partners, LLC (Bluescape) Securities Purchase Agreement
In February 2021, Evergy entered into a securities purchase agreement with an affiliate of Bluescape. Pursuant to the securities purchase agreement, an affiliate of Bluescape agreed to purchase 2,269,447 shares of Evergy’s common stock for approximately $113.2 million and to receive a warrant to purchase up to 3,950,000 additional shares of Evergy’s common stock. Under the terms of the warrant, Evergy will have the option to elect a net cash settlement with respect to the exercise of the warrant under certain circumstances, or to net settle in shares of Evergy’s common stock. The warrant expires three years from issuance and has an exercise price equal to $64.70 per share. Following the satisfaction of customary closing conditions, Evergy completed the sale of its common stock and warrant to the affiliate of Bluescape in April 2021 for $112.5 million, net of issuance costs of $0.7 million. The Executive Chairman of Bluescape, C. John Wilder, joined the Evergy Board in March 2021.
Evergy Registration Statements
In September 2021, Evergy filed an automatic registration statement providing for the sale of unlimited amounts of securities with the SEC, which expires in September 2024.
In September 2021, Evergy registered shares of its common stock with the SEC for its Dividend Reinvestment and Direct Stock Purchase Plan. Shares issued under the plan may be either newly issued shares or shares purchased on the open market.
Evergy has registered shares of its common stock with the SEC for the Evergy, Inc. 401(k) Savings Plan. Shares issued under the plan may be either newly issued shares or shares purchased on the open market.
Dividend Restrictions
Evergy depends on its subsidiaries to pay dividends on its common stock. The Evergy Companies have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels or the ability to pay dividends.
The KCC order authorizing the merger transaction requires Evergy to maintain consolidated common equity of at least 35% of total consolidated capitalization.
Under the Federal Power Act, Evergy Kansas Central, Evergy Metro and Evergy Missouri West generally can pay dividends only out of retained earnings. Certain conditions in the MPSC and KCC orders authorizing the merger transaction also require Evergy Kansas Central and Evergy Metro to maintain consolidated common equity of at least 40% of total capitalization. Other conditions in the MPSC and KCC merger orders require Evergy Kansas
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Central, Evergy Metro and Evergy Missouri West to maintain credit ratings of at least investment grade. If Evergy Kansas Central's, Evergy Metro's or Evergy Missouri West's credit ratings are downgraded below the investment grade level as a result of their affiliation with Evergy or any of Evergy's affiliates, the impacted utility shall not pay a dividend to Evergy without KCC or MPSC approval or until the impacted utility's investment grade credit rating has been restored.
The master credit facility of Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West and the note purchase agreements for certain Evergy Missouri West senior notes contain covenants requiring the respective company to maintain a consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00 at all times.
As of December 31, 2021, all of Evergy's and Evergy Kansas Central's retained earnings and net income were free of restrictions and Evergy Metro had a retained earnings restriction of $386.9 million. As of December 31, 2021, Evergy's subsidiaries had restricted net assets of approximately $5.7 billion. These restrictions are not expected to affect the Evergy Companies' ability to pay dividends at the current level for the foreseeable future.
18. VARIABLE INTEREST ENTITIES
In determining the primary beneficiary of a VIE, the Evergy Companies assess the entity's purpose and design, including the nature of the entity's activities and the risks that the entity was designed to create and pass through to its variable interest holders. A reporting enterprise is deemed to be the primary beneficiary of a VIE if it has (a) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. The trust holding an 8% interest in JEC was a VIE until the expiration of a purchase option in July 2017 and then became a VIE again during 2019 until the 8% interest was purchased by Evergy Kansas Central in August 2019. The trust holding Evergy Kansas Central's 50% interest in La Cygne Unit 2 is a VIE and Evergy Kansas Central remains the primary beneficiary of the trust.
All involvement with entities by the Evergy Companies is assessed to determine whether such entities are VIEs and, if so, whether or not the Evergy Companies are the primary beneficiaries of the entities. The Evergy Companies also continuously assess whether they are the primary beneficiary of the VIE with which they are involved. Prospective changes in facts and circumstances may cause identification of the primary beneficiary to be reconsidered.
8% Interest in JEC
Under an agreement that expired in August 2019, Evergy Kansas Central leased an 8% interest in JEC from a trust. The trust was financed with an equity contribution from an owner participant and debt issued by the trust. The trust was created specifically to purchase the 8% interest in JEC and lease it to a third party and did not hold any other assets. Evergy Kansas Central met the requirements to be considered the primary beneficiary of the trust until July 2017, when a contractual option to purchase the 8% interest in the plant covered by the lease expired. Accordingly, Evergy Kansas Central deconsolidated the trust in 2017. Evergy Kansas Central then reconsolidated the trust as a VIE in the first quarter of 2019 following an agreement with the owner to purchase the 8% interest in JEC from the trust in August 2019. Evergy Kansas Central deconsolidated the trust for the final time following the closing of this purchase in August 2019.
50% Interest in La Cygne Unit 2
Under an agreement that expires in September 2029, Evergy Kansas Central entered into a sale-leaseback transaction with a trust under which the trust purchased Evergy Kansas Central's 50% interest in La Cygne Unit 2 and subsequently leased it back to Evergy Kansas Central. The trust was financed with an equity contribution from an owner participant and debt issued by the trust. The trust was created specifically to purchase the 50% interest in La Cygne Unit 2 and lease it back to Evergy Kansas Central and does not hold any other assets. Evergy Kansas Central meets the requirements to be considered the primary beneficiary of the trust. In determining the primary beneficiary of the trust, Evergy Kansas Central concluded that the activities of the trust that most significantly impact its economic performance and that Evergy Kansas Central has the power to direct include (1) the operation
143
and maintenance of the 50% interest in La Cygne Unit 2 and (2) Evergy Kansas Central's ability to exercise a purchase option at the end of the agreement at the lesser of fair value or a fixed amount. Evergy Kansas Central has the potential to receive benefits from the trust that could potentially be significant if the fair value of the 50% interest in La Cygne Unit 2 at the end of the agreement is greater than the fixed amount.
The following table summarizes the assets and liabilities related to the VIE described above that are recorded on Evergy's and Evergy Kansas Central's consolidated balance sheets.
December 31
20212020
Assets:(millions)
Property, plant and equipment of variable interest entities, net$147.8 $154.9 
Liabilities:  
Current maturities of long-term debt of variable interest entities$— $18.8 
Accrued interest(a)
— 0.1 
(a)Included in accrued interest on Evergy's and Evergy Kansas Central's consolidated balance sheets.
All of the liabilities noted in the table above relate to the purchase of the property, plant and equipment of the VIE. The assets of the VIE can be used only to settle obligations of the VIE and the VIE's debt holders have no recourse to the general credit of Evergy and Evergy Kansas Central. Evergy and Evergy Kansas Central have not provided financial or other support to the VIE and are not required to provide such support. Evergy and Evergy Kansas Central did not record any gain or loss upon the initial consolidation of the VIE.
19. TAXES
Components of income tax expense are detailed in the following tables.
Great Plains Energy2017 2016 2015
Current income taxes(millions)
Federal$(1.7) $0.3
 $(0.2)
State1.0
 0.7
 (1.1)
Total(0.7) 1.0
 (1.3)
Deferred income taxes 
  
  
Federal223.5
 140.6
 96.9
State11.9
 29.5
 28.0
Total235.4
 170.1
 124.9
Investment tax credit     
Deferral—
 2.5
 0.5
Amortization(1.4) (1.4) (1.4)
Total(1.4) 1.1
 (0.9)
Income tax expense$233.3
 $172.2
 $122.7
Great Plains Energy's 2017 federal deferred income tax expense includes $130.3 million of additional income tax expense due to the impacts of U.S. federal income tax reform, discussed further below.
Evergy202120202019
Current income taxes(millions)
Federal$15.6 $(26.8)$(39.5)
State(0.4)2.1 15.0 
Total15.2 (24.7)(24.5)
Deferred income taxes   
Federal92.8 73.1 93.2 
State14.7 59.8 27.5 
Total107.5 132.9 120.7 
Investment tax credit
Deferral0.4 — 5.2 
Amortization(5.7)(6.0)(4.4)
Total(5.3)(6.0)0.8 
Income tax expense$117.4 $102.2 $97.0 
144
KCP&L2017 2016 2015
Current income taxes(millions)
Federal$37.4
 $24.8
 $(18.7)
State8.3
 4.7
 (3.4)
Total45.7
 29.5
 (22.1)
Deferred income taxes 
  
  
Federal74.7
 76.4
 81.9
State8.8
 17.0
 17.5
Total83.5
 93.4
 99.4
Investment tax credit     
Deferral—
 —
 0.5
Amortization(1.0) (1.0) (1.0)
Total(1.0) (1.0) (0.5)
Income tax expense$128.2
 $121.9
 $76.8

113


Evergy Kansas Central202120202019
Current income taxes(millions)
Federal$53.3 $14.5 $37.9 
State(0.2)(5.3)2.6 
Total53.1 9.2 40.5 
Deferred income taxes   
Federal3.8 (16.7)(8.9)
State(1.2)168.1 18.4 
Total2.6 151.4 9.5 
Investment tax credit
Deferral0.3 — 5.2 
Amortization(4.3)(4.8)(3.1)
Total(4.0)(4.8)2.1 
Income tax expense$51.7 $155.8 $52.1 
Evergy Metro202120202019
Current income taxes(millions)
Federal$39.2 $(0.2)$43.9 
State3.2 10.8 22.4 
Total42.4 10.6 66.3 
Deferred income taxes   
Federal6.5 29.8 (24.5)
State4.8 (32.2)(5.0)
Total11.3 (2.4)(29.5)
Investment tax credit
Amortization(1.3)(1.1)(1.1)
Total(1.3)(1.1)(1.1)
Income tax expense$52.4 $7.1 $35.7 
Effective Income Tax Rates
Effective income tax rates reflected in the financial statements and the reasons for their differences from the statutory federal rates are detailed in the following tables.
Great Plains Energy2017 2016 2015
Federal statutory income tax rate35.0 % 35.0 % 35.0 %
Differences between book and tax depreciation not normalized0.1
 (0.1) —
Amortization of investment tax credits(1.1) (0.3) (0.4)
Federal income tax credits(5.8) (2.6) (4.1)
State income taxes8.3
 4.2
 4.0
Transaction-related costs42.5
 0.9
 —
Valuation allowance8.9
 —
 1.5
Federal tax rate change95.3
 —
 —
Other0.3
 0.2
 0.5
Effective income tax rate183.5 % 37.3 % 36.5 %
The increase in Great Plains Energy's effective income tax rate for 2017 is driven by significant transaction-related costs incurred in connection with the anticipated merger with Westar that are not deductible for tax purposes and the impacts of U.S. federal income tax reform, discussed further below.
Evergy202120202019
Federal statutory income tax21.0 %21.0 %21.0 %
COLI policies(1.0)(1.6)(1.8)
State income taxes1.0 4.3 5.0 
Flow through depreciation for plant-related differences(5.4)(5.3)(4.5)
Federal tax credits(2.8)(4.6)(4.9)
Non-controlling interest(0.3)(0.3)(0.4)
AFUDC equity(0.6)(0.5)(0.1)
Amortization of federal investment tax credits(0.4)(0.6)(0.5)
Changes in uncertain tax positions, net— — (0.2)
Federal or state tax rate change— 1.9 — 
Valuation allowance— (0.2)(1.0)
Stock compensation— (0.1)0.1 
Officer compensation limitation0.5 0.2 0.1 
Other(0.4)(0.2)(0.4)
Effective income tax rate11.6 %14.0 %12.4 %
145
KCP&L2017 2016 2015
Federal statutory income tax rate35.0 % 35.0 % 35.0 %
Differences between book and tax depreciation not normalized(0.1) (0.3) —
Amortization of investment tax credits(0.3) (0.3) (0.5)
Federal income tax credits(2.4) (3.1) (5.6)
State income taxes3.8
 4.1
 4.0
Valuation allowance0.4
 —
 0.3
Federal tax rate change5.3
 —
 —
Other(0.1) (0.2) 0.3
Effective income tax rate41.6 % 35.2 % 33.5 %

114


Evergy Kansas Central202120202019
Federal statutory income tax21.0 %21.0 %21.0 %
COLI policies(1.7)(2.8)(3.3)
State income taxes(0.4)3.8 5.3 
Flow through depreciation for plant-related differences(3.0)(0.1)(0.1)
Federal tax credits(5.0)(7.1)(7.4)
Non-controlling interest(0.5)(0.6)(0.8)
AFUDC equity(0.6)(0.5)(0.1)
Amortization of federal investment tax credits(0.5)(0.7)(0.7)
Changes in uncertain tax positions, net— — (0.4)
Federal or state tax rate change— 27.8 — 
Valuation allowance— — (0.4)
Stock compensation(0.1)(0.1)(0.1)
Officer compensation limitation0.3 — — 
Other(0.1)(0.9)(0.3)
Effective income tax rate9.4 %39.8 %12.7 %
Evergy Metro202120202019
Federal statutory income tax21.0 %21.0 %21.0 %
COLI policies(0.2)(0.3)(0.2)
State income taxes1.7 4.9 4.7 
Flow through depreciation for plant-related differences(7.8)(10.0)(9.4)
Federal tax credits(0.2)(1.9)(2.5)
AFUDC equity(0.7)(0.5)(0.2)
Amortization of federal investment tax credits(0.4)(0.4)(0.4)
Federal or state tax rate change— (10.5)— 
Stock compensation— (0.4)— 
Officer compensation limitation0.9 0.4 0.3 
Other0.1 — (1.0)
Effective income tax rate14.4 %2.3 %12.3 %
146
Deferred Income Taxes
The tax effects of major temporary differences resulting in deferred income tax assets (liabilities) in the consolidated balance sheets areis in the following tables.table.
  Great Plains Energy KCP&L
December 31 2017 2016 2017 2016
Noncurrent deferred income taxes (millions)
Plant related $(1,549.0) $(2,107.6) $(1,114.9) $(1,492.2)
Income taxes on future regulatory refunds (recoveries) 236.0
 (148.7) 179.1
 (123.9)
Derivative instruments (19.2) (17.0) 1.6
 8.5
Pension and post-retirement benefits 9.4
 10.5
 28.6
 38.6
SO2 emission allowance sales
 14.9
 24.1
 15.0
 24.1
Fuel recovery mechanisms (17.9) (22.3) (15.9) (27.2)
Tax credit carryforwards 279.8
 271.1
 185.8
 177.4
Customer demand programs (17.4) (34.3) (11.7) (21.8)
Solar rebates (15.2) (27.3) (5.8) (11.4)
Net operating loss carryforward 473.0
 718.0
 131.2
 198.3
Other 6.9
 20.2
 (9.1) 1.3
Net noncurrent deferred income tax liability before valuation allowance (598.7) (1,313.3) (616.1) (1,228.3)
Valuation allowance (23.0) (16.4) —
 —
Net noncurrent deferred income tax liability $(621.7) $(1,329.7) $(616.1) $(1,228.3)
  Great Plains Energy KCP&L
December 31 2017 2016 2017 2016
  (millions)
Gross deferred income tax assets $2,017.4
 $1,360.9
 $1,261.5
 $747.7
Gross deferred income tax liabilities (2,639.1) (2,690.6) (1,877.6) (1,976.0)
Net deferred income tax liability $(621.7) $(1,329.7) $(616.1) $(1,228.3)
December 31
20212020
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Deferred tax assets:(millions)
Tax credit carryforward$375.2 $206.3 $162.1 $379.6 $176.5 $195.9 
Income taxes refundable to customers, net336.6 168.5 123.8 418.2 237.5 132.8 
Deferred employee benefit costs158.3 84.8 86.8 227.6 105.4 117.9 
Net operating loss carryforward40.2 — — 51.0 — 0.2 
Deferred state income taxes146.9 101.0 38.6 145.9 101.7 37.8 
Accrued liabilities157.6 71.3 56.4 152.7 61.8 61.0 
Other200.0 100.6 59.6 181.0 91.4 44.8 
Total deferred tax assets before
  valuation allowance		1,414.8 732.5 527.3 1,556.0 774.3 590.4 
Valuation allowances(12.8)— — (14.4)— — 
Total deferred tax assets, net1,402.0 732.5 527.3 1,541.6 774.3 590.4 
Deferred tax liabilities:
Plant-related(2,701.1)(1,308.7)(996.7)(2,693.7)(1,341.2)(972.1)
Deferred employee benefit costs(96.8)(52.9)(43.5)(171.4)(75.6)(76.3)
ARO regulatory assets(133.7)(53.9)(49.9)(136.7)(49.9)(54.3)
Acquisition premium(43.9)(43.9)— (46.9)(46.9)— 
Other regulatory assets(152.1)(53.3)(20.4)(28.8)(2.8)(16.4)
Other(136.3)(87.7)(22.9)(128.9)(82.4)(30.1)
Total deferred tax liabilities(3,263.9)(1,600.4)(1,133.4)(3,206.4)(1,598.8)(1,149.2)
Net deferred income tax liabilities$(1,861.9)$(867.9)$(606.1)$(1,664.8)$(824.5)$(558.8)
Tax Credit Carryforwards
At December 31, 20172021 and 2016, Great Plains Energy2020, Evergy had $191.0$373.6 million and $183.5$379.6 million,, respectively, of federal general business income tax credit carryforwards.  At December 31, 20172021 and 2016, KCP&L2020, Evergy Kansas Central had $184.6$204.7 million and $177.4$176.5 million,, respectively, of federal general business income tax credit carryforwards. At December 31, 2021 and 2020, Evergy Metro had $162.1 million and $195.9 million, respectively, of federal general business income tax credit carryforwards.  The carryforwards for both Great Plains EnergyEvergy, Evergy Kansas Central and KCP&LEvergy Metro relate primarily to Advanced Coal Investment Tax Creditswind production tax credits and Wind Productionadvanced coal investment tax credits and expire in the years 20282022 to 2037.2041. Approximately $0.5$0.1 million of Great Plains Energy'sEvergy's credits are related to Low Income Housing credits that were acquired in the GMO acquisition.Great Plains Energy's acquisition of Evergy Missouri West.  Due to federal limitations on the utilization of income tax attributes acquired in the GMOEvergy Missouri West acquisition, managementEvergy expects a portion of these credits to expire unutilized and has provided a valuation allowance against $0.4 million of the federal income tax benefit. 
At December 31, 2017 and 2016, Great Plains Energy had $87.6 million of federal alternative minimum tax credit carryforwards, all of which were acquired in the GMO acquisition.  These credits do not expire and can be used to reduce taxes paid in the future or become refundable starting in 2018. Due to potential federal budget sequestration reductions for refundable income tax credits, management expects a portion of these credits will not be refunded and has provided a valuation allowance against $5.8$0.1 million of the federal income tax benefit.
At December 31, 2017, Great Plains Energy and KCP&L had $1.2 million of state income tax credit carryforwards. The state income tax credits relate primarily to the Company's Kansas research and development tax credits, which do not expire.

115
147


The year of origin of Evergy's, Evergy Kansas Central's and Evergy Metro's related tax benefit amounts for federal tax credit carryforwards as of December 31, 2021 are detailed in the following table.
Amount of Benefit
Year of OriginEvergyEvergy Kansas CentralEvergy Metro
(millions)
20040.1 — — 
20050.1 — — 
20060.1 — — 
20070.1 — — 
200938.2 0.2 37.9 
201018.3 — 18.2 
201113.3 — 13.2 
201212.8 2.0 10.7 
201324.3 11.3 12.9 
201424.1 10.7 13.0 
201524.7 10.9 13.2 
201627.1 11.0 12.4 
201743.9 35.1 8.2 
201843.9 36.3 7.5 
201937.7 30.9 6.7 
202035.9 28.3 7.4 
202129.0 28.0 0.8 
$373.6 $204.7 $162.1 
Net Operating Loss Carryforwards
At December 31, 20172021 and 2016, Great Plains Energy2020, Evergy had $382.0$33.6 million and $643.8$42.2 million,, respectively, of tax benefits related to federal net operating loss (NOL) carryforwards.  Approximately $179.3$7.1 million and $306.2 million of Evergy's tax benefits at December 31, 2017 and 2016, respectively,2021 are tax benefits related to NOLs that were acquired in the GMOEvergy Missouri West acquisition. Due to federal limitations on the utilization of income tax attributes acquired in the Evergy Missouri West acquisition, Evergy expects a portion of these federal NOL carryforwards to expire unutilized and has provided a valuation allowance against $7.1 million of the federal income tax benefit. The federal NOL carryforwards expire in years 2023 to 2036.  2024.  
The year of origin of Great Plains Energy'sEvergy's related tax benefit amounts for federal NOL carryforwards as of December 31, 20172021 are detailed in the following table.
Year of OriginAmount of Benefit
(millions)
2005$1.9 
200631.7 
$33.6 
  Amount of 
Year of Origin Benefit 
  (millions) 
2003 $9.5
 
2004 91.4
 
2005 44.4
 
2006 32.0
 
2007 0.8
 
2008 1.4
 
2009 21.9
 
2010 2.5
 
2011 65.3
 
2012 0.2
 
2013 0.8
 
2014 52.0
 
2015 59.2
 
2016 0.6
 
  $382.0
 
In addition, Great Plains EnergyEvergy also had deferred tax benefits of $91.0$6.6 millionand $74.2$8.8 million related to state NOLs as of December 31, 20172021 and 2016,2020, respectively.  Of these amounts, approximately $42.1Evergy Metro had deferred tax benefits of $0.2 million and $36.1 million at December 31, 2017 and 2016, respectively, were acquired related to state NOLs as of 2020. The state NOL carryforwards expire in the GMO acquisition.  Managementyears 2022 to 2038. Evergy does not expect to utilize $16.8$5.6 million of NOLs before the expiration date of the carryforwards of NOLs in certain states. Therefore, a valuation allowance has been provided against $16.8$5.6 million of state tax benefits.
148
Alternative Minimum Tax (AMT) Carryforwards
At December 31, 2021, Evergy and Evergy Kansas Central had $1.6 million of federal AMT carryforwards.
Valuation Allowances
Great Plains EnergyEvergy is required to assess the ultimate realization of deferred tax assets using a “more"more likely than not”not" assessment threshold.  This assessment takes into consideration tax planning strategies within Great Plains Energy'sEvergy's control.  As a result of this assessment, Great Plains EnergyEvergy has established a partial valuation allowance for federal and state tax NOL carryforwards and tax credit carryforwards. During 2017, $6.62021, $1.5 million of tax expensebenefit was recorded in continuing operations primarily related to a reduction inutilization or expiration of certain state NOL carryforwards.
Uncertain Tax Positions
Evergy is considered open to U.S. federal examination for years after 2009 due to the refundable portioncarryforward of federal Alternative Minimum Tax (AMT)net operating losses and general business income tax credits. With few exceptions, Evergy is no longer subject to state and local tax examinations by tax authorities for years before 2016. As of December 31, 2021, Evergy does not have any significant income tax issues under examination.
Kansas Tax Reform
In December 2017,May 2020, the U.S. Congress passedstate of Kansas exempted certain public utilities, including Evergy Kansas Central and President Donald Trump signed Public Law No. 115-97, commonly referred to as the Tax Cuts and Jobs Act (Tax Act). The Tax Act represents the first major reform in U.S. income tax law since 1986. Most notably, the Tax Act reduces the current topEvergy Metro, from Kansas corporate income tax rate from 35% to 21% beginning in 2018, repeals2021 and authorized the corporate AMT, makes existing AMT tax credit carryforwards refundable, andKCC to approve changes the deductibility and taxability of certain items, among other things.
In December 2017, the SEC staff issued Staff Accounting Bulletin (SAB) 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companiesin rates related to complete the accounting under ASC 740,

116

Income Taxes. In accordance with SAB 118, a company must reflect theincreases or decreases in federal or state income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate to be included in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. Great Plains Energy’s and KCP&L’s accounting for the Tax Act under ASC 740 as of December 31, 2017 is complete and is detailed further below.rates.
As a result of the change in theexemption from Kansas corporate income tax, rate, Great Plains Energy and KCP&Lthe Evergy Companies revalued and restated their deferred income tax assets and liabilities in December 2017. Great Plains EnergyMay 2020. Evergy decreased its net deferred income tax liabilities by $814.5$233.8 million, primarily consisting of a $645.5$400.4 million adjustment for the revaluation and restatement of deferred income tax assets and liabilities included in rate base and a $222.8$31.7 million tax gross-up adjustment on this amount for ratemaking purposes and $13.8 million of income tax expense primarily related to the revaluation of deferred income taxes that will not be recovered from customers in future rates; partially offset by a decrease to unamortized investment tax credits of $183.6 million due to the revaluation of certain Kansas income tax credits and a $16.9 million tax gross-up adjustment on this amount for ratemaking purposes. KCP&L
Evergy Kansas Central decreased its net deferred income tax liabilities by $682.8$17.6 million,, primarily consisting of a$471.8 $293.7 million adjustment for the revaluation and restatement of deferred income tax assets and liabilities included in rate base and a $163.6$17.3 million tax gross-up adjustment on this amount for ratemaking purposes. purposes; partially offset by a decrease to unamortized investment tax credits of $183.6 million due to the revaluation of certain Kansas income tax credits and a $16.9 million tax gross-up adjustment on this amount for ratemaking purposes and $109.0 million of income tax expense primarily related to the revaluation of deferred income taxes that will not be recovered from customers in future rates.
Evergy Metro decreased its net deferred income tax liabilities by $152.9 million, primarily consisting of a $106.7 million adjustment for the revaluation of deferred income tax assets and liabilities included in rate base and a $14.4 million tax gross-up adjustment on this amount for ratemaking purposes and $32.2 million of income tax benefit primarily related to the revaluation of deferred income taxes that will not be refunded to customers in future rates.
The decreaseschanges to Great Plains Energy's and KCP&L'sthe Evergy Companies' net deferred income tax liabilities included in rate base were offset by a corresponding increasechanges in regulatory liabilities. The net regulatory liabilities will be refunded to customers in future rates by amortizing the amounts related to plant assets over the remaining useful life of the assets, and amortizing the amounts related to other items over a period to be determined in a future rate case.
Great Plains Energy recognized $130.3 million The changes to the Evergy Companies' unamortized investment tax credits were related to the portion of certain Kansas income tax credits that are not expected to be used after December 31, 2020. The amounts of income tax expense consisting of $110.1 million primarily(benefit) recognized by the Evergy Companies related to the revaluation of GMO’s non-regulateddeferred income taxes that will not be recovered from or refunded to customers in future rates primarily pertain to deferred tax adjustments related to the difference between Evergy's consolidated tax rate and the statutory tax rates used for setting rates at Evergy Kansas Central, Evergy Metro and Evergy Missouri West as well as deferred income tax assets, $9.1 millionadjustments related to the reassessmentnon-regulated operations.
149
Prior to 2021, Evergy Kansas Central and state NOLs and $11.1 million related to KCP&L and GMO deferred income taxes not included in rate base. KCP&L recognized $16.5 million of income tax expense related to deferred income taxes not included in rate base.
KCP&L and GMO currently recoverEvergy Metro recovered the cost of Kansas corporate income taxes in rates from their customers based onat the 35% federal corporate income tax rate. Both KCP&L and GMO have announced their intentions to passstatutory rate of 7%. In accordance with the provisions of the income tax savings generatedexemption, Evergy Metro and Evergy Kansas Central filed a joint application with the KCC in July 2020 to reduce their retail rates to reflect their exemption from Kansas corporate income taxes beginning in 2021. In the joint application, Evergy Metro requested to implement its rate reduction in one phase, effective January 1, 2021, and Evergy Kansas Central requested to implement its rate reduction in three phases, effective January 1 in each of 2021, 2022 and 2023. In November 2020, the KCC approved Evergy Kansas Central's and Evergy Metro's joint application.
20. LEASES
The Evergy Companies lease office buildings, computer equipment, vehicles, rail cars, generating plant and other property and equipment, including rail cars to serve jointly-owned generating units where Evergy Kansas Central or Evergy Metro is the managing partner and is reimbursed by other joint-owners for the tax rate change, currently estimated at approximately $100 million annually, through to customers as part of upcoming general rate cases, including applications filed by KCP&L and GMO in Missouri in January 2018. However, both the MPSC and KCC have also initiated investigatory dockets regarding the impactother owners' proportionate share of the Tax Actcosts. Under GAAP, a contract is or contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Evergy Companies assess a contract as being or containing a lease if the contract identifies property, plant and equipment, provides the lessee the right to obtain substantially all of the economic benefits from use of the property, plant and equipment and provides the lessee the right to direct the use of the property, plant and equipment.
The Evergy Companies have entered into several agreements to purchase energy through renewable purchase power agreements that are accounted for as leases that commenced prior to the application of Topic 842-Leases.Due to the intermittent nature of renewable generation, these leases have significant variable lease payments not included in the initial and subsequent measurement of the lease liability. Variable lease payments are expensed as incurred. In addition, certain other contracts contain payment for activity that transfers a separate good or service such as utilities or common area maintenance. The Evergy Companies have elected a practical expedient permitted by GAAP to not separate such components of the lease from other lease components for all leases.
The Evergy, Evergy Kansas Central and Evergy Metro leases have remaining terms ranging from 1 to 17 years, 1 to 17 years and 1 to 11 years, respectively. Leases that have original lease terms of twelve months or less are not recognized on customerthe Evergy Companies’ balance sheets. Some leases have options to renew the lease or terminate early at the election of the Evergy Companies. Judgment is applied at lease commencement to determine the reasonably certain lease term based on then-current assumptions about use of the leased asset, market conditions and terms in the contract. The judgment applied to determine the lease term can significantly impact the measurement of the lease liability and right-of-use asset and lease classification.
The Evergy Companies typically discount lease payments over the term of the lease using their incremental borrowing rates at lease commencement to measure its initial and subsequent lease liability. For leases that existed at the initial application of Topic 842, the Evergy Companies used the incremental borrowing rates that corresponded to the remaining lease term as of January 1, 2019.
Leases may be classified as either operating leases or finance leases. The lease classification is based on assumptions of the lease term and discount rate, as discussed above, and the actual rate treatmentfair market value and economic life of tax reformthe leased asset. Operating leases recognize a consistent expense each period over the lease term, while finance leases will not be known until orders specifying that treatmentresult in the separate presentation of interest expense on the lease liability and amortization of the right-of-use asset. Finance leases are received fromtreated as operating leases for rate-making purposes and as such, the MPSC and KCC. In January 2018, KCC issued an order requiring certain regulated public utilities, including KCP&L,Evergy Companies defer to begin recording a regulatory asset or liability forany material differences between expense recognition and the difference between the new corporate tax rate and amounts currently collectedtiming of payments in rates. The treatment of the regulatory liability will be addressed by KCCorder to match what is being recovered in future orders.
22. SEGMENTS AND RELATED INFORMATION
Great Plains Energy has one reportable segment based on its method of internal reporting, which segregates reportable segments based on products and services, management responsibility and regulation.  The one reportable business segment is Electric Utility, consisting of KCP&L, GMO's regulated utility operations and GMO Receivables Company.  Other includes GMO activity other than its regulated utility operations, GPETHC and unallocated corporate charges, including certain costs to achieve the anticipated merger with Westar.  The summary of significant accounting policies applies to the reportable segment.  Segment performance is evaluated based on net income (loss).

customer rates.
117
150


The Evergy Companies’ lease expense is detailed in the following tables reflect summarized financialtable.
Evergy202120202019
Finance lease costs(millions)
Amortization of right-of-use assets$5.1 $7.7 $5.2 
Interest on lease liabilities2.5 3.1 2.9 
Operating lease costs21.8 22.9 23.8 
Short-term lease costs5.9 2.1 4.0 
Variable lease costs for renewable purchase power agreements280.3 296.6 313.0 
Total lease costs$315.6 $332.4 $348.9 
Evergy Kansas Central202120202019
Finance lease costs(millions)
Amortization of right-of-use assets$4.5 $7.2 $5.0 
Interest on lease liabilities2.4 2.8 2.7 
Operating lease costs12.9 11.9 13.2 
Short-term lease costs1.8 0.5 1.2 
Variable lease costs for renewable purchase power agreements145.8 135.6 130.8 
Total lease costs$167.4 $158.0 $152.9 
Evergy Metro202120202019
Finance lease costs(millions)
Amortization of right-of-use assets$0.4 $0.3 $0.1 
Interest on lease liabilities0.1 0.1 0.1 
Operating lease costs9.0 9.3 9.2 
Short-term lease costs3.0 1.5 2.6 
Variable lease costs for renewable purchase power agreements101.0 112.2 129.2 
Total lease costs$113.5 $123.4 $141.2 
Supplemental cash flow information concerning Great Plains Energy's reportable segment.related to the Evergy Companies' leases is detailed in the following table.
Evergy202120202019
Cash paid for amounts included in the measurement of lease liabilities:(millions)
Operating cash flows from operating leases$20.7 $22.2 $21.7 
Operating cash flows from finance leases2.6 2.8 2.8 
Financing cash flows from finance leases5.3 5.6 5.0 
Right-of-use assets obtained in exchange for new operating lease liabilities16.4 6.9 10.4 
Right-of-use assets obtained in exchange for new finance lease liabilities1.4 5.6 8.3 
Evergy Kansas Central202120202019
Cash paid for amounts included in the measurement of lease liabilities:(millions)
Operating cash flows from operating leases$11.8 $12.9 $13.7 
Operating cash flows from finance leases2.4 2.5 2.6 
Financing cash flows from finance leases4.7 5.1 4.8 
Right-of-use assets obtained in exchange for new operating lease liabilities7.1 6.6 6.1 
Right-of-use assets obtained in exchange for new finance lease liabilities1.4 4.0 8.3 
151
2017
Electric
Utility
 Other Eliminations 
Great Plains
Energy
  (millions)
Operating revenues $2,708.2
   $—
   $—
   $2,708.2
 
Depreciation and amortization (371.1)   —
   —
   (371.1) 
Interest charges (196.9)   (125.9)   32.1
   (290.7) 
Income tax expense (169.4)   (63.9)   —
   (233.3) 
Net income (loss) 256.9
   (363.1)   —
   (106.2) 
2016
Electric
Utility
 Other Eliminations 
Great Plains
Energy
  (millions)
Operating revenues $2,676.0
   $—
   $—
   $2,676.0
 
Depreciation and amortization (344.8)   —
   —
   (344.8) 
Interest charges (196.1)   2.5
   32.1
   (161.5) 
Income tax expense (164.3)   (7.9)   —
   (172.2) 
Net income (loss) 292.1
   (2.1)   —
   290.0
 
2015
Electric
Utility
 Other Eliminations 
Great Plains
Energy
  (millions)
Operating revenues $2,502.2
   $—
   $—
   $2,502.2
 
Depreciation and amortization (330.4)   —
   —
   (330.4) 
Interest charges (190.9)   (40.5)   32.1
   (199.3) 
Income tax expense (120.8)   (1.9)   —
   (122.7) 
Net income (loss) 223.8
   (10.8)   —
   213.0
 
 
Electric
Utility
 Other Eliminations 
Great Plains
Energy
2017 (millions) 
Assets $11,508.1
   $1,285.7
   $(335.9)   $12,457.9
 
Capital expenditures 573.5
   —
   —
   573.5
 
2016  
    
    
    
 
Assets $11,444.2
   $2,461.3
   $(335.5)   $13,570.0
 
Capital expenditures 609.4
   —
   —
   609.4
 
2015               
Assets $11,045.5
   $(51.1)   $(255.8)   $10,738.6
 
Capital expenditures 677.1
   —
   —
   677.1
 

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Evergy Metro202120202019
Cash paid for amounts included in the measurement of lease liabilities:(millions)
Operating cash flows from operating leases$10.4 $10.8 $9.9 
Operating cash flows from finance leases0.1 0.1 0.1 
Financing cash flows from finance leases0.5 0.4 0.1 
Right-of-use assets obtained in exchange for new operating lease liabilities9.3 0.3 2.4 
Right-of-use assets obtained in exchange for new finance lease liabilities— 1.6 — 
23. JOINTLY-OWNED ELECTRIC UTILITY PLANTSFinance Leases
Great Plains Energy'sRight-of-use assets for finance leases are included in property, plant and KCP&L's shareequipment on the Evergy Companies’ balance sheets. Lease liabilities for finance leases are included in other current and other long-term liabilities.Payments and other supplemental information for finance leases as of jointly-owned electric utility plants at December 31, 2017,2021, are detailed in the following tables.table.
EvergyEvergy Kansas CentralEvergy Metro
(millions)
2022$7.8 $7.1 $0.6 
20236.7 5.9 0.6 
20245.5 4.7 0.6 
20254.7 4.2 0.3 
20264.4 3.9 0.2 
After 202638.5 37.8 0.3 
Total finance lease payments67.6 63.6 2.6 
Amounts representing imputed interest(21.3)(20.6)(0.4)
Present value of lease payments46.3 43.0 2.2 
Less: current portion(5.4)(4.9)(0.5)
Total long-term obligations under finance leases$40.9 $38.1 $1.7 
Right-of-use assets under finance leases included in property, plant and equipment, net on the consolidated balance sheets
$310.3 $50.6 $2.2 
Weighted-average remaining lease term (years)13.313.95.0
Weighted-average discount rate5.6 %5.6 %5.1 %
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Great Plains Energy                        
  Wolf Creek Unit La Cygne Units Iatan No. 1 Unit Iatan No. 2 Unit Iatan Common Jeffrey Energy Center
  (millions, except MW amounts)
Great Plains Energy's share  47%   50%   88%   73%   79%   8% 
                         
Utility plant in service  $1,854.2
   $1,191.1
   $699.9
   $1,355.8
   $491.1
   $201.1
 
Accumulated depreciation  918.1
   347.8
   280.8
   413.0
   130.7
   82.0
 
Nuclear fuel, net  72.4
   —
   —
   —
   —
   —
 
Construction work in progress  91.8
   8.6
   31.8
   35.0
   21.7
   2.5
 
2018 accredited capacity-MWs  552
   699
   616
   641
   NA
   173
 
Operating Leases
KCP&L                    
  Wolf Creek Unit La Cygne Units Iatan No. 1 Unit Iatan No. 2 Unit Iatan Common
  (millions, except MW amounts)
KCP&L's share  47%   50%   70%   55%   61% 
                     
Utility plant in service  $1,854.2
   $1,191.1
   $561.7
   $1,041.6
   $401.8
 
Accumulated depreciation  918.1
   347.8
   228.9
   366.6
   117.5
 
Nuclear fuel, net  72.4
   —
   —
   —
   —
 
Construction work in progress  91.8
   8.6
   7.6
   14.8
   12.0
 
2018 accredited capacity-MWs  552
   699
   490
   482
   NA
 

Each owner must fund its own portion of the plant'sRight-of-use assets for operating expenses and capital expenditures. KCP&L's and GMO's share of direct expensesleases are included in other long-term assets on the appropriateEvergy Companies’ balance sheets. Lease liabilities for operating expense classificationsleases are included in Great Plains Energy'sother current and KCP&L's financial statements.

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24. QUARTERLY OPERATING RESULTS (UNAUDITED)
  Quarter
Great Plains Energy 1st 2nd 3rd 4th
2017 (millions, except per share amounts)
Operating revenue $570.7
 $682.6
 $857.2
 $597.7
Operating income 47.4
 176.5
 305.9
 73.8
Net income (loss) (9.6) (7.0) 10.5
 (100.1)
Basic and diluted earnings (loss) per common share (0.11) (0.10) 0.02
 (0.46)
2016        
Operating revenue $572.1
 $670.8
 $856.8
 $576.3
Operating income 89.9
 182.3
 281.9
 64.8
Net income 26.4
 32.0
 133.6
 98.0
Basic and diluted earnings per common share 0.17
 0.20
 0.86
 0.39
  Quarter
KCP&L 1st 2nd 3rd 4th
2017 (millions)
Operating revenue $395.9
 $482.7
 $595.7
 $416.4
Operating income 58.2
 113.8
 209.9
 61.8
Net income 14.2
 49.6
 114.1
 1.9
2016        
Operating revenue $400.9
 $475.6
 $597.6
 $401.3
Operating income 70.6
 137.9
 219.2
 54.4
Net income 24.6
 65.9
 117.7
 16.8
In the fourth quarter of 2017, Great Plains Energy recorded $130.3 million of additional income tax expense due to the impacts of U.S. federal income tax reform. See Note 21 for additional information regarding the impact of tax reform on Great Plains Energy.
Quarterly data is subject to seasonal fluctuations with peak periods occurringDecember 31, 2021, are detailed in the summer months.following table.

EvergyEvergy Kansas CentralEvergy Metro
(millions)
2022$18.8 $9.4 $9.2 
202315.3 6.5 8.6 
202412.5 4.3 7.9 
20258.5 2.2 6.4 
20265.9 0.7 5.4 
After 202630.3 0.1 30.3 
Total operating lease payments91.3 23.2 67.8 
Amounts representing imputed interest(7.3)(1.0)(6.3)
Present value of lease payments84.0 22.2 61.5 
Less: current portion(17.1)(9.0)(8.0)
Total long-term obligations under operating leases$66.9 $13.2 $53.5 
Right-of-use assets under operating leases included in other assets on the consolidated balance sheets
$90.7 $29.0 $46.7 
Weighted-average remaining lease term (years)7.63.09.3
Weighted-average discount rate2.2 %2.4 %2.1 %
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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
GREAT PLAINS ENERGYEVERGY
Disclosure Controls and Procedures
Great Plains EnergyEvergy carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) orand 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)).  This evaluation was conducted under the supervision, and with the participation, of Great Plains Energy'sEvergy's management, including the chief executive officer and chief financial officer, and Great Plains Energy'sEvergy's disclosure committee.  Based upon this evaluation, the chief executive officer and chief financial officer of Great Plains EnergyEvergy have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Great Plains EnergyEvergy were effective at a reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There has been no change in Great Plains Energy'sEvergy’s internal control over financial reporting (as defined in RuleRules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2017,2021, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

Management's Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for Evergy.  Under the supervision and with the
153
participation of Evergy’s chief executive officer and chief financial officer, management evaluated the effectiveness of Evergy’s internal control over financial reporting as of December 31, 2021.  Management used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission.
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.  Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) for Great Plains Energy.  Under the supervision and with the participation of Great Plains Energy's chief executive officer and chief financial officer, management evaluated the effectiveness of Great Plains Energy's internal control over financial reporting as of December 31, 2017.  Management used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission.

Management has concluded that, as of December 31, 2017, Great Plains Energy's2021, Evergy’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.  Deloitte & Touche LLP, the independent registered public accounting firm that audited the financial statements included in this annual report on Form 10-K, has issued its attestation report on Great Plains Energy'sEvergy’s internal control over financial reporting, which is included below.








121
154


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Great Plains Energy IncorporatedEvergy, Inc.
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Great Plains Energy IncorporatedEvergy, Inc. and subsidiaries (the “Company”"Company") as of December 31, 2017,2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017,2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedules as of and for the year ended December 31, 2017,2021, of the Company and our report dated February 21, 2018,24, 2022, expressed an unqualified opinion on those financial statements and financial statement schedules.
Basis for Opinion
The Company’sCompany's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’sCompany's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’scompany's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’scompany's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’scompany's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/DELOITTE & TOUCHE LLP
Kansas City, Missouri  
February 21, 2018

24, 2022
122
155

KCP&LEVERGY KANSAS CENTRAL
Disclosure Controls and Procedures
KCP&LEvergy Kansas Central carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) orand 15d-15(e) under the Exchange Act).  This evaluation was conducted under the supervision, and with the participation, of KCP&L'sEvergy Kansas Central's management, including the chief executive officer and chief financial officer, and KCP&L'sEvergy Kansas Central's disclosure committee.  Based upon this evaluation, the chief executive officer and chief financial officer of KCP&LEvergy Kansas Central have concluded as of the end of the period covered by this report that the disclosure controls and procedures of KCP&LEvergy Kansas Central were effective at a reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There has been no change in KCP&L'sEvergy Kansas Central’s internal control over financial reporting (as defined in RuleRules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2017,2021, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

Management's Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for Evergy Kansas Central.  Under the supervision and with the participation of Evergy Kansas Central’s chief executive officer and chief financial officer, management evaluated the effectiveness of Evergy Kansas Central’s internal control over financial reporting as of December 31, 2021. Management used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the COSO of the Treadway Commission.
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.  Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) for KCP&L.  Under the supervision and with the participation of KCP&L's chief executive officer and chief financial officer, management evaluated the effectiveness of KCP&L's internal control over financial reporting as of December 31, 2017.  Management used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the COSO of the Treadway Commission.
Management has concluded that, as of December 31, 2017, KCP&L's2021, Evergy Kansas Central’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.  Deloitte & Touche LLP,
EVERGY METRO
Disclosure Controls and Procedures
Evergy Metro carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the independent registered public accounting firmExchange Act).  This evaluation was conducted under the supervision, and with the participation, of Evergy Metro's management, including the chief executive officer and chief financial officer, and Evergy Metro's disclosure committee.  Based upon this evaluation, the chief executive officer and chief financial officer of Evergy Metro have concluded as of the end of the period covered by this report that audited the financial statements includeddisclosure controls and procedures of Evergy Metro were effective at a reasonable assurance level.
Changes in this annual report on Form 10-K,Internal Control Over Financial Reporting
There has issued its attestation report on KCP&L'sbeen no change in Evergy Metro’s internal control over financial reporting which(as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2021, that has materially affected, or is included below.reasonably likely to materially affect, its internal control over financial reporting.















123

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Kansas City Power & Light Company
OpinionManagement's Report on Internal Control overOver Financial Reporting
We have audited theManagement is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for Evergy Metro.  Under the supervision and with the participation of Kansas City Power & Light CompanyEvergy Metro’s chief executive officer and subsidiaries (the “Company”) aschief financial officer, management evaluated the effectiveness of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effectiveEvergy Metro’s internal control over financial reporting as of December 31, 2017, based on criteria established2021.  Management
156
used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standardsCOSO of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedule as of an for the year ended December 31, 2017,Treadway Commission.
Because of the Company and our report dated February 21, 2018, expressed an unqualified opinion on those financial statements and financial statement schedule.
Basis for Opinion
The Company’s management is responsible for maintaining effectiveinherent limitations of internal control over financial reporting, including the possibility of collusion or improper override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and for its assessmentpresentation.  Also, projections of any evaluation of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/DELOITTE & TOUCHE LLPManagement has concluded that, as of December 31, 2021, Evergy Metro’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.  
Kansas City, Missouri  
February 21, 2018  

124

ITEM 9B.  OTHER INFORMATION
None.Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations tab on their website, http://investors.evergy.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on Evergy's website is not part of this document.
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
PART III
Information required by Items 10-14 of Part III of this Form 10-K with respect to Great Plains EnergyEvergy will be included in an amendment to this Form 10-K, or incorporated by reference to Great Plains Energy’sEvergy's definitive proxy statement with respect to its 20182022 Annual Meeting of Shareholders (Proxy Statement), if such definitive proxy statement is filed with the SEC on or before April 30, 2018. Due to the pending merger with Westar, Great Plains Energy may not be required to file the Proxy Statement, in which case Great Plains Energy will file an amendment to this Form 10-K on or before April 30, 2018, to include the information that is otherwise incorporated by reference.29, 2022.
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Great Plains Energy DirectorsEvergy
The information required by this item iswill be included in an amendment to this Form 10-K or will be incorporated by reference from the following sections of the Proxy Statement, which will be filed with the SEC no later than April 30, 2018:Statement:
•Information regarding the directors of Great Plains Energy required by this item isEvergy will be contained in the Proxy Statement section titled “Directors.”"Election of Directors."
Information•If applicable, information regarding compliance with Section 16(a) of the Securities Exchange Act of 1934 required by this item iswill be contained in the Proxy Statement section titled “Security"Security Ownership of CertainDirectors, Management and Beneficial Owners, Directors and Officers - Section 16(a) Beneficial Ownership Reporting Compliance.”Owners."
•Information regarding the Audit Committee of Great Plains Energy required by this item isEvergy will be contained in the Proxy Statement section titled “Corporate"Corporate Governance Matters - CommitteesBoard Structure - Audit Committee."
•Information regarding Evergy's Code of Ethics will be contained in the Board.”
Great Plains Energy and KCP&L Executive OfficersProxy Statement section titled "Corporate Governance Practices - Code of Ethics."
Information required by this item regarding theEvergy's executive officers of Great Plains Energy and KCP&L is contained in this report in the Part I, Item 1 section titled “Executivein "Information About Evergy's Executive Officers.”"
Great Plains Energy
157
Evergy Kansas Central and KCP&L Code of Ethical Business Conduct
The Companies have adopted a Code of Ethical Business Conduct (Code), which applies to all directors, officers and employees of Great Plains Energy, KCP&L and their subsidiaries.  The Code is posted on the corporate governance page of the Internet websites at www.greatplainsenergy.com and www.kcpl.com.  A copy of the Code is available, without charge, upon written request to Corporate Secretary, Great Plains Energy Incorporated, 1200 Main St., Kansas City, Missouri 64105.  Great Plains Energy and KCP&L intend to satisfy the disclosure requirements under Item 5.05 of Form 8-K regarding an amendment to, or a waiver from, a provision of the Code that applies to the principal executive officer, principal financial officer, principal accounting officer or controller of those companies by posting such information on the corporate governance page of the Internet websites.Evergy Metro
Other KCP&L Information
The other information required by this item regarding KCP&LEvergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I). to Form 10-K.
ITEM 11. EXECUTIVE COMPENSATION
Great Plains EnergyEvergy
The information required by this item containedwill be included in an amendment to this Form 10-K or will be incorporated by reference to the following sections titled “Executiveof the Proxy Statement: "Proxy Statement Summary and Highlights - Executive Compensation” “Director Highlights," "Director Compensation,” “Compensation" "Executive Summary of Compensation Matters," "Compensation Discussion and Analysis”, “CompensationAnalysis," "Compensation Committee Report”Report," "Executive Compensation Tables," "Director Independence" and “Director Independence"Other Matters - Compensation Committee Interlocks and Insider Participation” of the Proxy Statement is incorporated by reference.Participation."
Evergy Kansas Central and Evergy Metro

125

KCP&L
The otherOther information required by this item regarding KCP&LEvergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I). to Form 10-K.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Great Plains EnergyEvergy
The information required by this item regarding security ownership of the directors and executive officers of Great Plains Energy containedEvergy will be included in an amendment to this Form 10-K or will be incorporated by reference to the section titled “Security"Security Ownership of CertainDirectors, Management and Beneficial Owners, Directors and Officers”Owners" section of the Proxy Statement is incorporated by reference.Statement.
KCP&LEvergy Kansas Central and Evergy Metro
The information required by this item regarding KCP&LEvergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I). to Form 10-K.
Equity Compensation Plans
Upon the consummation of the merger, Evergy assumed both Evergy Kansas Central's LTISA and Great Plains Energy's Amended Long-Term Incentive Plan, is an equity compensation plan approved by its shareholders.which was renamed the Evergy, Inc. Long-Term Incentive Plan. The renamed Evergy Long-Term Incentive Plan permits the grant of restricted stock, restricted stock units, bonus shares, stock options, stock appreciation rights, director shares, director deferred share units, performance shares and other stock-based awards to directors, officers and other employees of Great Plains EnergyEvergy.
In connection with the 2022 annual meeting of shareholders, Evergy is seeking shareholder approval to amend and KCP&L.

KCP&L does not have an equity compensation plan; however, KCP&L officers and certain employees participate in Great Plains Energy'srestate the Evergy, Inc. Long-Term Incentive Plan.Plan, and increase the number of shares of common stock available for future issuance, among other things. Additional information required by this item can be found in "Proposal 3: Approval of the Amended and Restated Evergy Long-Term Incentive Plan" and "Appendix C" of the Proxy Statement.

158
The following table provides information, as of December 31, 2017,2021, regarding the number of common shares to be issued upon exercise of outstanding options, warrants and rights, their weighted average exercise price, and the number of shares of common stock remaining available for future issuance. The table excludes shares issued or issuable under Great Plains Energy'sany defined contribution savings plans.
Number of securities
Number ofremaining available
securitiesfor future issuance
to be issued uponWeighted-averageunder equity
exercise ofexercise price ofcompensation plans
outstanding options,outstanding options,(excluding securities
warrants and rightswarrants and rightsreflected in column (a))
Plan Category(a)(b)(c)
Equity compensation plans approved by security holders (3)
Evergy Long-Term Incentive Plan930,845 (1)$— (2)1,296,632 
Equity compensation plans not approved by security holders— — — 
Total930,845 (1)$— (2)1,296,632 
         Number of securities
 Number of     remaining available
 securities     for future issuance
 to be issued upon Weighted-average under equity
 exercise of exercise price of compensation plans
 outstanding options, outstanding options, (excluding securities
 warrants and rights warrants and rights reflected in column (a))
Plan Category(a) (b) (c)
Equity compensation plans approved by security holders           
Great Plains Energy Long-Term Incentive Plan 684,238
(1) 
  $—
(2) 
  4,022,044
 
Equity compensation plans not approved by security holders —
   —
   —
 
Total 684,238
(1) 
  $—
(2) 
  4,022,044
 
(1)Includes 253,046 RSUs with time-based requirements, 513,715 RSUs with performance measures at target performance levels, 36,036 restricted share awards and director deferred share units for 128,048 shares of Evergy common stock outstanding at December 31, 2021.
(2)The RSUs, RSAs and director deferred share units have no exercise price and therefore are not reflected in the weighted-average exercise price.
(3) The Evergy Kansas Central, Inc. LTISA will not be used for future awards. As of December 31, 2021, there were approximately 312,568 units outstanding that were deferred pursuant to the Evergy Kansas Central, Inc. non-employee deferred compensation program. Deferred units will continue to receive deferred dividend equivalents in the form of additional deferred units until payouts pursuant to elections begin.
(1)
Includes 545,087 performance shares at target performance levels and director deferred share units for 139,151 shares of Great Plains Energy common stock outstanding at December 31, 2017.
(2)
The performance shares and director deferred share units have no exercise price and therefore are not reflected in the weighted average exercise price.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
Great Plains EnergyEvergy
The information required by this item containedwill be included in an amendment to this Form 10-K or will be incorporated by reference to the sections titled “Director Independence”"Director Independence" and “Related"Other Matters - Related Party Transactions”Transactions" sections of the Proxy Statement is incorporated by reference.Statement.

126

KCP&LEvergy Kansas Central and Evergy Metro
The information required by this item regarding KCP&LEvergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I). to Form 10-K.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Great Plains EnergyEvergy
The information required by this item regarding the independent auditors of Great Plains EnergyEvergy and its subsidiaries containedwill be included in an amendment to this Form 10-K or will be incorporated by reference to the section titled “Ratification"Ratification of Appointment of Independent Auditors”Deloitte & Touche LLP" (PCAOB ID No. 34) section of the Proxy Statement is incorporated by reference.Statement.
KCP&L
159
Evergy Kansas Central and Evergy Metro
The Audit Committee of the Great Plains EnergyEvergy Board functions as the Audit Committee of KCP&L.Evergy Kansas Central and Evergy Metro. The following table setstables set forth the aggregate fees billed by Deloitte & Touche LLP for audit services rendered in connection with the consolidated financial statements and reports for 20172021 and 20162020 and for other services rendered during 20172021 and 20162020 on behalf of KCP&L,Evergy Kansas Central and Evergy Metro, as well as all out-of-pocket costs incurred in connection with these services:
Evergy Kansas Central20212020
Fee Category
Audit Fees$1,852,798 $2,025,969 
Audit-Related Fees50,734 — 
Tax Fees86,098 51,385 
All Other Fees— — 
Total Fees$1,989,630 $2,077,354 
Evergy MetroEvergy Metro20212020
Fee Category20172016Fee Category
Audit Fees$1,304,550
$1,184,550
Audit Fees$1,293,049 $1,412,546 
Audit-Related Fees22,000
21,000
Audit-Related Fees50,734 — 
Tax Fees24,905
24,822
Tax Fees29,219 40,799 
All Other Fees—
—
All Other Fees— — 
Total Fees$1,351,455
$1,230,372
Total Fees$1,373,002 $1,453,345 
Audit Fees: Consists of fees billed for professional services rendered for the audits of the annual consolidated financial statements of KCP&LEvergy Kansas Central and Evergy Metro and reviews of the interim condensed consolidated financial statements included in quarterly reports. Audit fees also include: services provided by Deloitte & Touche LLP in connection with statutory and regulatory filings or engagements; audit reports on audits of the effectiveness of internal control over financial reporting and other attest services, except those not required by statute or regulation; services related to filings with the SEC, including comfort letters, consents and assistance with and review of documents filed with the SEC; and accounting research in support of the audit.
Audit-Related Fees: Consists of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of consolidated financial statements of KCP&LEvergy Kansas Central and Evergy Metro and are not reported under “Audit Fees”."Audit Fees." These services include consultation concerning financial accounting and reporting standards.
Tax Fees: Consists of fees billed for tax compliance and related support of tax returns and other tax services, including assistance with tax audits, and tax research and planning.
All Other Fees: Consists of fees for all other services other than those described above.
Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services
The Audit Committee has adopted policies and procedures for the pre-approval of all audit services, audit-related services, tax services and other services to be provided by the independent registered public accounting firm for KCP&L.  The Audit Committee's policy is to pre-approve all audit, audit-related, tax or other services to be provided by the independent registered public accounting firm.Evergy Kansas Central and Evergy Metro. Under these policies and procedures, the Audit Committee may pre-approve certain types of services, up to the aggregate fee levels it sets. Any proposed service within a pre-approved type of service that would cause the applicable fee level to be exceeded cannot be provided unless the Audit Committee either amends the applicable fee level or specifically approves the proposed service. The Audit Committee, as well, may specifically approve audit, audit-related, tax or other services on a case-by-case basis. Pre-approval is generally provided for up to one year, unless the Audit Committee specifically provides for a different period. The CompanyManagement provides quarterly updates to the Audit Committee regarding actual fees spent with respect to
160
pre-approved services.  The ChairmanChair of the Audit Committee may pre-approve audit, audit-related, tax

127

and other services provided by the independent registered public accounting firm as required between meetings and report such pre-approval at the next Audit Committee meeting.
PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
Financial Statements
Evergy, Inc.Page No.
Great Plains EnergyPage No.
a.
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2017, 20162021, 2020 and 20152019
5972
b.
6073
c.
Consolidated Statements of Cash Flows for the years ended December 31, 2017, 20162021, 2020 and 20152019
6275
d.
Consolidated Statements of Shareholders'Changes in Equity for the years ended December 31, 2017, 20162021, 2020 and 20152019
6376
e.
6987
f.
5763
KCP&LEvergy Kansas Central, Inc.
g.
77
h.
78
i.
80
j.
81
k.
87
l.
66
Evergy Metro, Inc.
m.
Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 20162021, 2020 and 20152019
6482
h.n.
6583
i.o.
Consolidated Statements of Cash Flows for the years ended December 31, 2017, 20162021, 2020 and 20152019
6785
j.p.
Consolidated Statements of Common Shareholder'sChanges in Equity for the years ended December 31, 2017, 20162021, 2020 and 20152019
6886
161
Table of Contents
k.q.
Notes to Consolidated Financial Statements

6987
l.r.
Report of Independent Registered Public Accounting Firm

5869
Financial Statement Schedules
Evergy, Inc.
Great Plains Energy
a.
142178
b.
145182
KCP&LEvergy Kansas Central, Inc.
c.
146182
Evergy Metro, Inc.
d.
183

128162
Table of Contents


Exhibits
Exhibit
Number
 
Description of Document
 
Registrant
2.1*Great Plains EnergyEvergy
Evergy Kansas Central
2.2*Great Plains EnergyEvergy
Evergy Kansas Central
3.1*Evergy
3.2*Evergy
3.3*Great Plains EnergyEvergy Metro
3.23.4*Great Plains EnergyEvergy Metro
3.33.5*KCP&LEvergy Kansas Central
3.43.6*KCP&LEvergy Kansas Central
4.1*Great Plains EnergyEvergy
4.2*Great Plains EnergyEvergy
4.3*Great Plains EnergyEvergy
163
Table of Contents
4.4*Great Plains EnergyEvergy
4.5*Great Plains EnergyEvergy
4.6*Great Plains Energy

129

Evergy
4.7*Evergy
4.8*Evergy
4.9*Great Plains EnergyEvergy
4.84.10*Great Plains EnergyEvergy
4.94.11*Evergy
4.12*Evergy
4.104.13*Great Plains EnergyEvergy
164
Table of Contents
4.114.14*Great Plains EnergyEvergy
4.124.15*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.134.16*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.144.17*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.154.18*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.164.19*Great Plains Energy
KCP&L
4.17*
Twelfth Supplemental Indenture, dated as of March 1, 2009, between Kansas City Power & Light Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.2 to Form 8-K filed on March 24, 2009).
Great Plains Energy
KCP&L

130

Evergy
Evergy Metro
4.184.20*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.194.21*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.204.22*Great Plains Energy
KCP&LEvergy
Evergy Metro
165
Table of Contents
4.214.23*Evergy
Evergy Metro
4.24*Evergy
Evergy Metro
4.25*Evergy
Evergy Metro
4.26*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.224.27*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.234.28*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.244.29*Evergy
Evergy Metro
4.30*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.254.31*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.264.32*Great Plains Energy
KCP&LEvergy
Evergy Metro
166
Table of Contents
4.274.33*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.284.34*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.294.35*Great Plains Energy
KCP&L

131

Evergy
Evergy Metro
4.304.36*Great Plains Energy
KCP&LEvergy
Evergy Metro
4.314.37*Evergy
Evergy Metro
4.38*Evergy
Evergy Metro
4.39*Great Plains EnergyEvergy
10.14.40*+Evergy
4.41*Evergy
167
Table of Contents
4.42*Great Plains Energy
KCP&LEvergy
Evergy Kansas Central
10.24.43*+
Evergy
Evergy Kansas Central
4.44*Evergy
Evergy Kansas Central
4.45*Evergy
Evergy Kansas Central
4.46*Evergy
Evergy Kansas Central
4.47*Evergy
Evergy Kansas Central
4.48*Evergy
Evergy Kansas Central
4.49*Evergy
Evergy Kansas Central
4.50*Evergy
Evergy Kansas Central
168
Table of Contents
4.51*Evergy
Evergy Kansas Central
4.52*Evergy
Evergy Kansas Central
4.53*Evergy
Evergy Kansas Central
4.54*Great Plains Energy
KCP&LEvergy
Evergy Kansas Central
10.34.55*+Great Plains Energy
KCP&LEvergy
Evergy Kansas Central
10.44.56*+Evergy
Evergy Kansas Central
4.57*Evergy
Evergy Kansas Central
4.58*Evergy
Evergy Kansas Central
4.59*Evergy
Evergy Kansas Central
169
Table of Contents
4.60*Evergy
Evergy Kansas Central
4.61*Evergy
Evergy Kansas Central
4.62*Evergy
Evergy Kansas Central
4.63*Great Plains Energy
KCP&LEvergy
Evergy Kansas Central
10.54.64*+Evergy
Evergy Kansas Central
4.65*Evergy
Evergy Kansas Central
Evergy Metro
10.1*+Great Plains Energy
KCP&LEvergy
Evergy Metro
10.610.2*+Great Plains Energy
KCP&LEvergy
Evergy Metro
10.710.3*+Great Plains Energy
KCP&LEvergy
Evergy Metro
10.810.4*+Great Plains Energy
KCP&L
10.9*+
Great Plains Energy Incorporated Long-Term Incentive Plan Awards Standards and Performance Criteria Effective as of January 1, 2016 (Exhibit 10.3 to Form 10-Q for the quarter ended March 31, 2016).
Great Plains Energy
KCP&L
10.10*+
Great Plains Energy Incorporated Long-Term Incentive Plan Awards Standards and Performance Criteria Effective as of January 1, 2017 (Exhibit 10.3 toEnergy's Form 10-Q for the quarter ended March 31, 2017).
Great Plains Energy
KCP&LEvergy
Evergy Metro
170
Table of Contents
10.1110.5*+Evergy
Evergy Metro
10.6*+Evergy
Evergy Metro
10.7*+Evergy
Evergy Metro
10.8*+Evergy
Evergy Metro
10.9*+Evergy
Evergy Metro
10.10*+Evergy
Evergy Metro
10.11*+Evergy
Evergy Metro
10.12*+Evergy
Evergy Metro
Evergy Kansas Central
10.13*+Evergy
Evergy Metro
Evergy Kansas Central
10.14*+Evergy
Evergy Metro
Evergy Kansas Central
10.15*+Evergy
Evergy Metro
Evergy Kansas Central
10.16*+Evergy
Evergy Metro
Evergy Kansas Central

132171
Table of Contents


10.1210.17*+Evergy
Evergy Metro
Evergy Kansas Central
10.18*+Evergy
Evergy Metro
Evergy Kansas Central
10.19+Evergy
Evergy Metro
Evergy Kansas Central
10.20+Evergy
Evergy Metro
Evergy Kansas Central
10.21+Evergy
Evergy Metro
Evergy Kansas Central
10.22*+Evergy
Evergy Kansas Central
10.23*+Evergy
Evergy Kansas Central
10.24*+Great Plains Energy
KCP&LEvergy
Evergy Metro
Evergy Kansas Central
10.1310.25*+Evergy
Evergy Metro
Evergy Kansas Central
10.26*+Evergy
Evergy Metro
Evergy Kansas Central
10.27*+Evergy
Evergy Metro
Evergy Kansas Central
10.28*+Evergy
Evergy Metro
Evergy Kansas Central
10.29*+Evergy
Evergy Metro
Evergy Kansas Central
172
Table of Contents
10.30*+Great Plains Energy
KCP&LEvergy
Evergy Metro
Evergy Kansas Central
10.1410.31*+Great Plains Energy
KCP&L
10.15*+
Form of 2014 three-year Performance Share Agreement (Exhibit 10.1 to Form 10-Q for the quarter ended March 31, 2014).
Great Plains Energy
KCP&L
10.16*+
Form of 2014 Restricted Stock Agreement (Exhibit 10.2 to Form 10-Q for the quarter ended March 31, 2014).
Great Plains Energy
KCP&L
10.17*+
Form of 2015 three-year Performance Share Agreement (Exhibit 10.1 to Form 10-Q for the quarter ended March 31, 2015).
Great Plains Energy
KCP&L
10.18*+
Form of 2015 Restricted Stock Agreement (Exhibit 10.2 to Form 10-Q for the quarter ended March 31, 2015).
Great Plains Energy
KCP&L
10.19*+
Form of 2016 three-year Performance Share Agreement (Exhibit 10.1 to Form 10-Q for the quarter ended March 31, 2016).
Great Plains Energy
KCP&L
10.20*+
Form of 2016 Restricted Stock Agreement (Exhibit 10.2 to Form 10-Q for the quarter ended March 31, 2016).
Great Plains Energy
KCP&L
10.21*+
Form of 2017 three-year Performance Share Agreement (Exhibit 10.1 to Form 10-Q for the quarter ended March 31, 2017).
Great Plains Energy
KCP&L
10.22*+
Form of 2017 Restricted Stock Agreement (Exhibit 10.2 to Form 10-Q for the quarter ended March 31, 2017).
Great Plains Energy
KCP&L
10.23*+
Aquila, Inc. 2002 Omnibus Incentive Compensation Plan (Exhibit 10.3 toEvergy's Form 10-Q for the quarter ended September 30, 2002, filed by Aquila, Inc.)2018).
Great Plains Energy
KCP&L
10.24*+
Great Plains Energy Incorporated,Evergy
Evergy Metro
Evergy Kansas City Power & Light Company and KCP&L Greater Missouri Operations Company Annual Incentive Plan amended effective as of January 1, 2016 (Exhibit 10.4 to Form 10-Q for the quarter ended March 31, 2016).
Great Plains Energy
KCP&L
10.25*+
Form of Indemnification Agreement with each officer and director (Exhibit 10-f to Form 10-K for year ended December 31, 1995).
Great Plains Energy
KCP&L
10.26*+
Form of Conforming Amendment to Indemnification Agreement with each officer and director (Exhibit 10.1.a to Form 10-Q for the quarter ended March 31, 2003).
Great Plains Energy
KCP&L
10.27*+
Form of Indemnification Agreement with each director and officer (Exhibit 10.1 to Form 8-K filed on December 8, 2008).
Great Plains Energy
KCP&L

133

Central
10.2810.32*+Great Plains Energy
KCP&L
10.29*+
Form of Indemnification Agreement with officers and directors (Exhibit 10.1 to Form 8-K filed on December 16, 2013).
Great Plains Energy
KCP&L
10.30*+
Form of Incorporated) Change in Control Severance Agreement with other executive officers of(Exhibit 10.1.e to Great Plains Energy Incorporated and Kansas City Power & Light Company (Exhibit 10.1.e toEnergy's Form 10-Q for the quarter ended September 30, 2006).
Great Plains Energy
KCP&LEvergy
Evergy Metro
10.3110.33*+Evergy
Evergy Kansas Central
10.34*+Evergy
Evergy Metro
Evergy Kansas Central
10.35*+Great Plains Energy
KCP&L
10.32*+
Great Plains Energy Incorporated Supplemental Executive Retirement Plan (As Amended and Restated for I.R.C. §409A), as amended February 10, 2009 (Exhibit 10.1.29 to Form 10-K for the year ended December 31, 2008.
Great Plains Energy
KCP&L
10.33*+
Great Plains Energy Incorporated Supplemental Executive Retirement Plan (As Amended and Restated for I.R.C. §409A), as amended December 8, 2009 (Exhibit 10.1.27 to Form 10-K for the year ended December 31, 2009).
Great Plains Energy
KCP&L
10.34*+
Amendment dated October 28, 2014, to the Great Plains Energy Incorporated Supplemental Executive Retirement Plan as amended and restated on December 8, 2009 (Exhibit 10.1 to Form 10-Q for the quarter ended September 30, 2014).
Great Plains Energy
KCP&L
10.35*+
Great Plains Energy Incorporated Nonqualified Deferred Compensation Plan (As Amended and Restated for I.R.C. §409A) (Exhibit 10.1.11 to Form 10-Q for the quarter ended September 30, 2007).
Great Plains Energy
KCP&L
10.36*+
Great Plains Energy Incorporated Nonqualified Deferred Compensation Plan (As Amended and Restated for I.R.C. §409A), amended effective January 1, 2010 (Exhibit 10.1.5 to Form 10-Q for the quarter ended March 31, 2010).
Great Plains Energy
KCP&L
10.37*
Joint Motion and Settlement Agreement, dated as of February 26, 2008, among Great Plains Energy Incorporated, Kansas City Power & Light Company, the Kansas Corporation Commission Staff, the Citizens’ Utility Ratepayers Board, Aquila, Inc. d/b/a Aquila Networks, Black Hills Corporation, and Black Hills/Kansas Gas Utility Company, LLC (Exhibit 10.1.7 to Form 10-Q for the quarter ended March 31, 2008).
Great Plains Energy
KCP&L
10.38*
Credit Agreement, dated as of August 9, 2010, among Great Plains Energy Incorporated, Certain Lenders, Bank of America, N.A., as Administrative Agent, and Union Bank, N.A. and Wells Fargo Bank, National Association, as Syndication Agents, Barclays Bank PLC and U.S. Bank National Association, as Documentation Agents, Banc of America Securities LLC, Union Bank, N.A. and Wells Fargo Securities, LLC as Joint Lead Arrangers and Joint Book Managers (Exhibit 10.1 to Form 10-Q for the quarter ended September 30, 2010).
Great Plains Energy

134

Evergy
10.36*+Evergy
Evergy Metro
Evergy Kansas Central
10.39
10.37*+Evergy
Evergy Kansas Central
10.38*+Evergy
Evergy Kansas Central
10.39*+Evergy
Evergy Kansas Central
10.40*+Evergy
Evergy Metro
Evergy Kansas Central
10.41*+Evergy
Evergy Metro
Evergy Kansas Central
173
Table of Contents
10.42*Evergy
Evergy Metro
Evergy Kansas Central
10.43*Great Plains EnergyEvergy
Evergy Metro
Evergy Kansas Central
10.4010.44*
Second Amendment to Amended and Restated Credit Agreement, dated as of October 17, 2013,August 31, 2021, by and among Great PlainsEvergy, Inc., Evergy Missouri West, Inc. (formerly KCP&L Greater Missouri Operations Company), Evergy Metro, Inc. (formerly Kansas City Power & Light Company), Evergy Kansas Central, Inc. (formerly Westar Energy, Incorporated, Certain Lenders, Bank of America, N.A., JPMorgan Chase Bank, N.A. and Union Bank, N.A.Inc.), as Syndication AgentsBorrowers, the lenders referred to therein, as Lenders, and Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender, Bank of America, N.A., Citibank, N.A., MUFG Bank, Ltd., TD Bank, N.A. and U.S. Bank National Association as Co-Syndication Agents and Issuing Lenders, Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morganas Sustainability Structuring Agent, and Wells Fargo Securities, LLC, Citigroup Global Markets Inc., BOFA Securities, Inc., MUFG Bank, Ltd., TD Securities (USA) LLC and UnionU.S. Bank N.A.,National Association as Joint Lead Arrangers and Joint Book ManagersBookrunners. (Exhibit 10.1 to Evergy's Form 10-Q for the quarter ended September 30, 2013)8-K filed on August 31, 2021).
Great Plains EnergyEvergy
Evergy Metro
Evergy Kansas Central
10.4110.45*Great Plains Energy
10.42*
Third Amendment to the CreditTerm Loan Agreement, dated as of June 13, 2016,March 15, 2019, by and among Great Plains Energy Incorporated, Certain Lenders, Bank of America, N.A.Evergy, Inc., JPMorgan Chase Bank, N.A., and Union Bank, N.A., as Syndication Agents and Wells Fargo Bank, National Association, as Administrative Agent, and Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, and Union Bank, N.A., as Joint Lead Arrangers and Joint Book Managersthe lenders referred to therein (Exhibit 10.1 to Evergy's Form 10-Q for the quarter ended June 30, 2016)8-K on March 15, 2019).
Great Plains Energy
10.43*
Credit Agreement, dated as of August 9, 2010, among Kansas City Power & Light Company, Certain Lenders, Bank of America, N.A., as Administrative Agent, and Union Bank, N.A. and Wells Fargo Bank, National Association, as Syndication Agents, JPMorgan Chase Bank, N.A. and The Bank of Nova Scotia, as Documentation Agents, Banc of America Securities LLC, Union Bank, N.A. and Wells Fargo Securities, LLC as Joint Lead Arrangers and Joint Book Managers (Exhibit 10.2 to Form 10-Q for the quarter ended September 30, 2010).
Great Plains Energy
KCP&L

135

Evergy
10.4410.46*Great Plains Energy
KCP&L
10.45*
Second Amendment to Credit Agreement, dated as of October 17, 2013, among Kansas City Power & Light Company, Certain Lenders, Bank of America, N.A., JPMorgan Chase Bank, N.A., and Union Bank, N.A., as Syndication Agents and Wells Fargo Bank, National Association, as Administrative Agent, and Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, and Union Bank, N.A., as Joint Lead Arrangers and Joint Book Managers (Exhibit 10.2 to Form 10-Q for the quarter ended September 30, 2013).
Great Plains Energy
KCP&L
10.46*
First Extension Agreement and Waiver, dated as of December 17, 2014, among Kansas City Power & Light Company, Certain Lenders, Bank of America, N.A., JPMorgan Chase Bank, N.A., and MUFG Union Bank, N.A., as Syndication Agents and Wells Fargo Bank, National Association, as Administrative Agent, Swing Line Lender and an Issuer, Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, and MUFG Union Bank, N.A., as Joint Lead Arrangers and Joint Book Managers (Exhibit 10.41 to Form 10-K for the year ended December 31, 2014).
Great Plains Energy
KCP&L
10.47*
Credit Agreement, dated as of August 9, 2010, among KCP&L Greater Missouri Operations Company, Great Plains Energy Incorporated, as Guarantor, Certain Lenders, Bank of America, N.A., as Administrative Agent, and Union Bank, N.A. and Wells Fargo Bank, National Association, as Syndication Agents, The Royal Bank of Scotland PLC and BNP Paribas , as Documentation Agents, Banc of America Securities LLC, Union Bank, N.A. and Wells Fargo Securities, LLC as Joint Lead Arrangers and Joint Book Managers (Exhibit 10.3 to Form 10-Q for the quarter ended September 30, 2010).
Great Plains Energy
10.48*
First Amendment to Credit Agreement, dated as of December 9, 2011, among KCP&L Greater Missouri Operations Company, Great Plains Energy Incorporated, as Guarantor, Certain Lenders, Union Bank, N.A. and Wells Fargo Bank, National Association, as Syndication Agents, Bank of America, N.A., as Administrative Agent, The Royal Bank of Scotland PLC and BNP Paribas, as Documentation Agents, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Union Bank, N.A. and Wells Fargo Securities, LLC as Joint Lead Arrangers and Joint Book Managers (Exhibit 10.63 to Form 10-K for the year ended December 31, 2011).
Great Plains Energy

136

10.49*
Second Amendment to Credit Agreement, dated as of October 17, 2013, among KCP&L Greater Missouri Operations Company, Certain Lenders, Bank of America, N.A., JPMorgan Chase Bank, N.A., and Union Bank, N.A., as Syndication Agents and Wells Fargo Bank, National Association, as Administrative Agent, and Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, and Union Bank, N.A., as Joint Lead Arrangers and Joint Book Managers (Exhibit 10.3 to Form 10-Q for the quarter ended September 30, 2013).
Great Plains Energy
10.50*
First Extension Agreement and Waiver, dated as of December 17, 2014, among KCP&L Greater Missouri Operations Company, Certain Lenders, Bank of America, N.A., JPMorgan Chase Bank, N.A., and MUFG Union Bank, N.A., as Syndication Agents and Wells Fargo Bank, National Association, as Administrative Agent, Swing Line Lender and an Issuer, Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, and MUFG Union Bank, N.A., as Joint Lead Arrangers and Joint Book Managers (Exhibit 10.45 to Form 10-K for the year ended December 31, 2014).
Great Plains Energy
10.51*
Guaranty, dated as of July 15, 2008, issued by Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) in favor of Union Bank of California, N.A., as successor trustee, and the holders of the Evergy Missouri West, Inc. (formerly Aquila, Inc.), 8.27% Senior Notes due November 15, 2021 (Exhibit 10.6 to Great Plains Energy's Form 8-K filed on July 18, 2008).
Great Plains Energy
10.52*
Insurance Agreement, dated as of September 1, 2005, between Kansas City Power & Light Company and XL Capital Assurance Inc. (Exhibit 10.2.e to Form 10-K for the year ended December 31, 2005).
Great Plains Energy
KCP&L
10.53*
Insurance Agreement, dated as of September 1, 2005, between Kansas City Power & Light Company and XL Capital Assurance Inc. (Exhibit 10.2.f to Form 10-K for the year ended December 31, 2005).
Great Plains Energy
KCP&L
10.54*
Purchase and Sale Agreement, dated as of July 1, 2005, between Kansas City Power & Light Company, as Originator, and Kansas City Power & Light Receivables Company, as Buyer (Exhibit 10.2.b to Form 10-Q for the quarter ended June 30, 2005).
Great Plains Energy
KCP&L
10.55*
Receivables Sale Agreement, dated as of July 1, 2005, among Kansas City Power & Light Receivables Company, as the Seller, Kansas City Power & Light Company, as the Initial Collection Agent, The Bank of Tokyo-Mitsubishi, Ltd., New York Branch, as the Agent, and Victory Receivables Corporation (Exhibit 10.2.c to Form 10-Q for the quarter ended June 30, 2005).
Great Plains Energy
KCP&L
10.56*
Amendment No. 1, dated as of April 2, 2007, among Kansas City Power & Light Receivables Company, Kansas City Power & Light Company, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch and Victory Receivables Corporation to the Receivables Sale Agreement dated as of July 1, 2005 (Exhibit 10.2.2 to Form 10-Q for the quarter ended March 31, 2007).
Great Plains Energy
KCP&L

137

Evergy
10.5710.47*Great Plains Energy
KCP&L
10.58*
Amendment, dated as of July 9, 2009, to Receivables Sale Agreement dated as of July 1, 2005 among Kansas City Power & Light Receivables Company, Kansas City Power & Light Company, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch and Victory Receivables Corporation (Exhibit 10.4 toEvergy's Current Report on Form 8-K filed on July 13, 2009)April 20, 2021).
Great Plains Energy
KCP&LEvergy
174
Table of Contents
10.5910.48*Great Plains Energy
KCP&L
10.60*
Amendment, dated as of May 5, 2010, to Receivables Sale Agreement dated as of July 1, 2005 among Kansas City Power & Light Receivables Company, Kansas City Power & Light Company, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch and Victory Receivables Corporation (Exhibit 10.2.2 to Form 10-Q for the quarter ended March 31, 2010).
Great Plains Energy
KCP&L
10.61*
Amendment, dated as of February 23, 2011, to Receivables Sale Agreement dated as of July 1, 2005 among Kansas City Power & Light Receivables Company, Kansas City Power & Light Company, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch and Victory Receivables Corporation. (Exhibit 10.5 to Form 10-Q for the quarter ended March 31, 2011).
Great Plains Energy
KCP&L
10.62*
Amendment, dated as of September 9, 2011, to Receivables Sale Agreement dated as of July 1, 2005, among Kansas City Power & Light Receivables Company, Kansas City Power & Light Company, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch and Victory Receivables Corporation (Exhibit 10.1 toEvergy's Form 8-K filed on September 13, 2011)April 20, 2021).
Great Plains Energy
KCP&L
10.63*
Amendment dated as of September 9, 2014, to the Receivables Sales Agreement dated as of July 1, 2005, among Kansas City Power & Light Receivables Company, as the Seller, Kansas City Power & Light Company, as the Initial Collection Agent, The Bank of Tokyo-Mitsubishi, Ltd., New York Branch, as the Agent and Victory Receivables Corporation, as the Purchaser (Exhibit 10.1 to Form 8-K filed on September 15, 2014).
Great Plains Energy
KCP&L
10.64*
Amendment dated as of September 9, 2015, to the Receivables Sales Agreement dated as of July 1, 2005, among Kansas City Power & Light Receivables Company, as the Seller, Kansas City Power & Light Company, as the Initial Collection Agent, The Bank of Tokyo-Mitsubishi, Ltd., New York Branch, as the Agent and Victory Receivables Corporation, as the Purchaser (Exhibit 10.1 to Form 8-K filed on September 11, 2015).
Great Plains Energy
KCP&L

138

Evergy
10.6510.49*Great Plains Energy
KCP&L
10.66*
Purchase and Sale Agreement, dated as of May 31, 2012, between KCP&L Greater Missouri Operations Company, as Originator, and GMO Receivables Company, as Buyer (Exhibit 10.2. to Form 10-Q for the quarter ended June 30, 2012).
Great Plains Energy
10.67*
Receivables Sale Agreement, dated as of May 31, 2012, among GMO Receivables Company, as the Seller, KCP&L Greater Missouri Operations Company, as the Initial Collection Agent, The Bank of Tokyo-Mitsubishi, Ltd., New York Branch, as the Agent, and Victory Receivables Corporation (Exhibit 10.3 to Form 10-Q for the quarter ended June 30, 2012).
Great Plains Energy
10.68*
First Amendment dated as of September 9, 2014, to the Receivables Sales Agreement dated as of May 31, 2012, among GMO Receivables Company, as the Seller, KCP&L Greater Missouri Operations Company, as the Initial Collection Agent, The Bank of Tokyo-Mitsubishi, Ltd., New York Branch, as the Agent and Victory Receivables Corporation, as the Purchaser. (Exhibit 10.2 to Form 8-K filed on September 15, 2014).
Great Plains Energy
10.69*
Second Amendment dated as of September 9, 2015, to the Receivables Sales Agreement dated as of May 31, 2012, among GMO Receivables Company, as the Seller, KCP&L Greater Missouri Operations Company, as the Initial Collection Agent, The Bank of Tokyo-Mitsubishi, Ltd., New York Branch, as the Agent and Victory Receivables Corporation, as the Purchaser. (Exhibit 10.2 to Form 8-K filed on September 11, 2015).
Great Plains Energy
10.70*
Third Amendment dated as of September 9, 2016, to the Receivables Sales Agreement dated as of May 31, 2012, among GMO Receivables Company, as the Seller, KCP&L Greater Missouri Operations Company, as the Initial Collection Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the Agent and Victory Receivables Corporation, as the Purchaser (Exhibit 10.2 to Form 8-K filed September 13, 2016).
Great Plains Energy
10.71*
Amendment dated as of September 8, 2017, to the Receivables Sales Agreement dated as of July 1, 2005, among Kansas City Power & Light Receivables Company, as the Seller, Kansas City Power & Light Company, as the Initial Collection Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the Agent and Victory Receivables Corporation, as the Purchaser. (Exhibit 10.1 to Form 8-K filed on September 11, 2017).
KCP&L
10.72*
Fourth Amendment dated as of September 8, 2017, to the Receivables Sales Agreement dated as of May 31, 2012, among GMO Receivables Company, as the Seller, KCP&L Greater Missouri Operations Company, as the Initial Collection Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the Agent and Victory Receivables Corporation, as the Purchaser. (Exhibit 10.2 to Form 8-K filed on September 11, 2017).
Great Plains Energy

139

Evergy
10.7310.50*Great Plains Energy
KCP&L
10.74*
Joint Motion and Settlement Agreement dated as of February 26, 2008, among Great Plains Energy Incorporated, Kansas City Power & Light Company, the Kansas Corporation Commission Staff, the Citizens’ Utility Ratepayers Board, Aquila, Inc. d/b/a Aquila Networks, Black Hills Corporation, and Black Hills/Kansas Gas Utility Company, LLC (Exhibit 10.1.7 to Form 10-Q for the quarter ended March 31, 2008).
Great Plains Energy
KCP&L
10.75*
Stipulation and Agreement dated April 24, 2009, among Kansas City Power & Light Company, Staff of the Missouri Public Service Commission, Office of Public Counsel, Praxair, Inc., Midwest Energy Users Association, U.S. Department of Energy and the U.S. Nuclear Security Administration, Ford Motor Company, Missouri Industrial Energy Consumers and Missouri Department of Natural ResourcesElliott International, L.P. (Exhibit 10.1 to Form 8-K filed April 30, 2009).
Great Plains Energy
KCP&L
10.76*
Non-Unanimous Stipulation and Agreement dated May 22, 2009 among KCP&L Greater Missouri Operations Company, the Staff of the Missouri Public Service Commission, the Office of the Public Counsel, Missouri Department of Natural Resources and Dogwood Energy, LLC (Exhibit 10.1 to Form 8-K filed on May 27, 2009).Evergy's
Great Plains Energy
10.77*
Collaboration Agreement dated as of March 19, 2007, among Kansas City Power & Light Company, Sierra Club and Concerned Citizens of Platte County, Inc. (Exhibit 10.1 to Form 8-K filed on March 20, 2007)2, 2020).
Great Plains Energy
KCP&L
10.78*
Amendment to the Collaboration Agreement effective as of September 5, 2008 among Kansas City Power & Light Company, Sierra Club and Concerned Citizens of Platte County, Inc. (Exhibit 10.2.20 to Form 10-K for the year ended December 31, 2009).
Great Plains Energy
KCP&L
10.79*
Joint Operating Agreement between Kansas City Power & Light Company and Aquila, Inc., dated as of October 10, 2008 (Exhibit 10.2.2 to Form 10-Q for the quarter ended September 30, 2008).
Great Plains Energy
KCP&L
12.1
Computation of Ratios of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Dividend Requirements.
Great Plains Energy
12.2
Computation of Ratio of Earnings to Fixed Charges.
KCP&L
21.1
List of Subsidiaries of Great Plains Energy Incorporated.
Great Plains Energy
23.1
Consent of Independent Registered Public Accounting Firm.
Great Plains Energy
23.2
Consent of Independent Registered Public Accounting Firm.
KCP&L

140

Evergy
24.110.51*Evergy
10.52*Evergy
10.53*Evergy
10.54*Evergy
10.55*Evergy
21.1Evergy
Evergy Kansas Central
23.1Evergy
23.2Evergy Metro
23.3Evergy Kansas Central
24.1Great Plains EnergyEvergy
24.2KCP&LEvergy Kansas Central
175
Table of Contents
31.124.3Evergy Metro
31.1Great Plains EnergyEvergy
31.2Great Plains EnergyEvergy
31.3KCP&LEvergy Metro
31.4KCP&LEvergy Metro
32.131.5**Evergy Kansas Central
31.6Evergy Kansas Central
32.1**Great Plains EnergyEvergy
32.2**KCP&LEvergy Metro
101.INS32.3**Evergy Kansas Central
101.INS***XBRL Instance Document.Great Plains Energy
KCP&Ln/a
101.SCHInline XBRL Taxonomy Extension Schema Document.Great Plains Energy
KCP&LEvergy
Evergy Metro
Evergy Kansas Central
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document.Great Plains Energy
KCP&LEvergy
Evergy Metro
Evergy Kansas Central
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document.Great Plains Energy
KCP&LEvergy
Evergy Metro
Evergy Kansas Central
101.LABInline XBRL Taxonomy Extension Labels Linkbase Document.Great Plains Energy
KCP&LEvergy
Evergy Metro
Evergy Kansas Central
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.Great Plains Energy
KCP&LEvergy
Evergy Metro
Evergy Kansas Central
104Cover Page Interactive Data File (embedded within the Inline XBRL document).Evergy
Evergy Metro
Evergy Kansas Central
* Filed with the SEC as exhibits to prior SEC filings and are incorporated herein by reference and made a part hereof.  The SEC filings and the exhibit number of the documents so filed, and incorporated herein by reference, are stated in parenthesis in the description of such exhibit.
176
Table of Contents
** Furnished and shall not be deemed filed for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act).Act.  Such document shall not be incorporated by reference into any registration statement or other document pursuant to the Exchange Act or the Securities Act of 1933, as amended, unless otherwise indicated in such registration statement or other document.
*** The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
+ Indicates management contract or compensatory plan or arrangement.
Copies of any of the exhibits filed with the SEC in connection with this documentreport may be obtained from KCP&Lthe applicable registrant upon written request. The registrants agree to furnish to the SEC upon request any instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of total assets of such registrant and its subsidiaries on a consolidated basis.

177
141

Schedule I - Parent Company Financial Statements
GREAT PLAINS ENERGY INCORPORATED
Statements of Comprehensive Income (Loss) of Parent Company
        
Year Ended December 31 2017 2016 2015 
Operating Expenses  (millions, except per share amounts) 
General and administrative $2.3
 $2.7
 $0.9
 
Costs to achieve the anticipated merger with Westar Energy, Inc. 16.1
 18.3
 —
 
General taxes 0.1
 0.1
 0.2
 
Total 18.5
 21.1
 1.1
 
Operating loss (18.5) (21.1) (1.1) 
Other Income (Expense)       
Equity in earnings from subsidiaries 141.4
 287.5
 220.9
 
Non-operating income 51.5
 31.3
 29.7
 
Loss on extinguishment of debt (82.8) —
 —
 
Loss on Series B Preferred Stock dividend make-whole provisions (124.8) —
 —
 
Total (14.7) 318.8
 250.6
 
Interest (charges) income (125.6) 2.6
 (40.3) 
Income (loss) before income taxes (158.8) 300.3
 209.2
 
Income tax (expense) benefit 52.6
 (10.3) 3.8
 
Net income (loss) (106.2) 290.0
 213.0
 
Preferred stock dividend requirements and redemption premium 37.3
 16.5
 1.6
 
Earnings (loss) available for common shareholders $(143.5) $273.5
 $211.4
 
        
Average number of basic common shares outstanding 215.5
 169.4
 154.2
 
Average number of diluted common shares outstanding 215.5
 169.8
 154.8
 
        
Basic and diluted earnings (loss) per common share $(0.67) $1.61
 $1.37
 
Comprehensive Income       
Net income (loss) $(106.2) $290.0
 $213.0
 
Other comprehensive income       
Derivative hedging activity       
Reclassification to expenses 0.4
 0.4
 0.5
 
Income tax expense (0.1) (0.2) (0.1) 
Net reclassification to expenses 0.3
 0.2
 0.4
 
Derivative hedging activity, net of tax 0.3
 0.2
 0.4
 
Other comprehensive income from subsidiaries, net of tax 4.1
 5.2
 6.3
 
Total other comprehensive income 4.4
 5.4
 6.7
 
Comprehensive income (loss) $(101.8) $295.4
 $219.7
 
EVERGY, INC.
Statements of Comprehensive Income of Parent Company
202120202019
OPERATING EXPENSES: (millions)
Operating and maintenance$13.2 $39.3 $19.4 
Total Operating Expenses13.2 39.3 19.4 
INCOME FROM OPERATIONS(13.2)(39.3)(19.4)
OTHER INCOME (EXPENSE)
Equity in earnings from subsidiaries932.9 683.4 698.2 
Investment earnings19.2 32.1 32.7 
Other expense(8.3)(0.1)(0.1)
Total Other Income, Net943.8 715.4 730.8 
Interest expense74.3 86.3 60.7 
INCOME BEFORE INCOME TAXES856.3 589.8 650.7 
Income tax benefit(16.5)(22.7)(13.7)
NET INCOME$872.8 $612.5 $664.4 
COMPREHENSIVE INCOME
NET INCOME$872.8 $612.5 $664.4 
OTHER COMPREHENSIVE INCOME
Derivative hedging activity
Loss on derivative hedging instruments— — (64.4)
Income tax benefit— — 16.5 
Net loss on derivative hedging instruments— — (47.9)
Reclassification to expenses, net of taxes5.5 3.0 1.5 
Derivative hedging activity, net of tax5.5 3.0 (46.4)
Other comprehensive loss from subsidiaries, net(0.1)(2.4)(0.6)
Total other comprehensive income (loss)5.4 0.6 (47.0)
COMPREHENSIVE INCOME$878.2 $613.1 $617.4 
The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

178
142

GREAT PLAINS ENERGY INCORPORATED
Balance Sheets of Parent Company
        
 December 31
 2017 2016
ASSETS(millions, except share amounts)
Current Assets       
Cash and cash equivalents $1,114.2
   $1,283.9
 
Time deposit —
   1,000.0
 
Accounts receivable from subsidiaries 34.8
   10.6
 
Notes receivable from subsidiaries 2.0
   2.0
 
Interest rate derivative instruments 91.4
   79.3
 
Other 2.3
   26.1
 
Total 1,244.7
   2,401.9
 
Investments and Other Assets  
    
 
Investment in KCP&L 2,513.2
   2,541.5
 
Investment in other subsidiaries 1,240.1
   1,341.6
 
Note receivable from subsidiaries 634.9
   634.9
 
Deferred income taxes 11.6
   12.8
 
Other 1.0
   16.3
 
Total 4,400.8
   4,547.1
 
Total $5,645.5
   $6,949.0
 
        
LIABILITIES AND CAPITALIZATION       
Current Liabilities       
Notes payable $11.0
   $—
 
Current maturities of long-term debt —
   100.0
 
Accounts payable to subsidiaries 21.7
   10.8
 
Accrued taxes —
   12.9
 
Accrued interest 2.1
   10.1
 
Other 5.9
   12.8
 
Total 40.7
   146.6
 
Deferred Credits and Other Liabilities 1.8
   2.2
 
Capitalization  
    
 
Great Plains Energy shareholders' equity  
    
 
Common stock - 600,000,000 shares authorized without par value
215,801,723 and 215,479,105 shares issued, stated value		 4,233.1
   4,217.0
 
Preference stock - 11,000,000 shares authorized without par value
     7.00% Series B Mandatory Convertible Preferred Stock
       $1,000 per share liquidation preference, 0 and 862,500 shares issued and outstanding
 —
   836.2
 
Retained earnings 737.9
   1,119.2
 
Treasury stock - 137,589 and 128,087 shares, at cost (4.0)   (3.8) 
Accumulated other comprehensive loss (2.2)   (6.6) 
Total shareholders' equity 4,964.8
   6,162.0
 
Long-term debt 638.2
   638.2
 
Total 5,603.0
   6,800.2
 
Commitments and Contingencies 

   

 
Total $5,645.5
   $6,949.0
 
EVERGY, INC.
Balance Sheets of Parent Company
December 31
 20212020
ASSETS(millions, except share amounts)
CURRENT ASSETS:  
Cash and cash equivalents$7.5 $11.0 
Accounts receivable from subsidiaries72.2 54.1 
Notes receivable from subsidiaries289.5 349.4 
Income taxes receivable14.8 7.4 
Prepaid expenses and other assets2.0 1.9 
Total Current Assets386.0 423.8 
OTHER ASSETS:  
Investment in subsidiaries10,992.1 10,349.2 
Note receivable from subsidiaries— 287.5 
Deferred income taxes19.0 20.5 
Other1.2 0.5 
Total Other Assets11,012.3 10,657.7 
TOTAL ASSETS$11,398.3 $11,081.5 
LIABILITIES AND EQUITY
CURRENT LIABILITIES:  
Current maturities of long-term debt$287.5 $350.0 
Notes payable and commercial paper358.0 200.0 
Accounts payable to subsidiaries22.3 18.4 
Accrued interest12.4 13.9 
Other8.1 11.0 
Total Current Liabilities688.3 593.3 
LONG-TERM LIABILITIES:
Long-term debt, net1,590.1 1,875.7 
Other14.9 11.7 
Total Long-Term Liabilities1,605.0 1,887.4 
Commitments and Contingencies (Note 14)00
EQUITY:  
Evergy, Inc. Shareholders' Equity:  
Common stock - 600,000,000 shares authorized, without par value, 229,299,900 and 226,836,670 shares issued7,188.7 7,063.2 
Retained earnings1,960.3 1,587.0 
Accumulated other comprehensive loss(44.0)(49.4)
Total Shareholders' Equity9,105.0 8,600.8 
TOTAL LIABILITIES AND EQUITY$11,398.3 11,081.5 
The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

179
143

GREAT PLAINS ENERGY INCORPORATED
Statements of Cash Flows of Parent Company
          
Year Ended December 312017   2016   2015
Cash Flows from Operating Activities(millions)
Net income (loss)$(106.2)   $290.0
   $213.0
Adjustments to reconcile income (loss) to net cash from operating activities:         
Amortization26.2
   30.4
   0.8
Deferred income taxes, net2.3
   21.8
   (1.7)
Equity in earnings from subsidiaries(141.4)   (287.5)   (220.9)
Fair value impact of interest rate swaps(12.1)   (79.3)   —
Loss on Series B Preferred Stock dividend make-whole provisions124.8
   —
   —
Loss on extinguishment of debt82.8
   —
   —
Cash flows affected by changes in:         
Accounts receivable from subsidiaries(21.6)   (9.8)   (0.1)
Accounts payable to subsidiaries10.9
   (20.9)   1.3
Other accounts payable(2.2)   7.0
   —
Accrued taxes(12.9)   8.4
   0.3
Accrued interest(8.0)   6.0
   —
Cash dividends from subsidiaries275.0
   239.0
   157.0
Other22.3
   8.0
   8.7
Net cash from operating activities239.9
   213.1
   158.4
Cash Flows from Investing Activities 
    
    
Purchase of time deposit—
   (1,000.0)   —
Proceeds from time deposit1,000.0
   —
   —
Intercompany lending—
   —
   (1.4)
Net money pool lending—
   3.7
   (0.4)
Investment in subsidiary(0.6)   (7.3)   (7.8)
Net cash from investing activities999.4
   (1,003.6)   (9.6)
Cash Flows from Financing Activities 
    
    
Issuance of common stock2.9
   1,603.7
   3.0
Issuance of preferred stock—
   862.5
   —
Issuance of long-term debt4,291.9
   —
   —
Issuance fees(32.2)   (143.4)   —
Repayment of long-term debt, including redemption premium(4,443.0)   —
   —
Net change in short-term borrowings11.0
   (10.0)   6.0
Dividends paid(272.0)   (194.0)   (155.5)
Redemption of preferred stock(963.4)   (40.1)   —
Other financing activities(4.2)   (4.3)   (2.3)
Net cash from financing activities(1,409.0)   2,074.4
   (148.8)
Net Change in Cash and Cash Equivalents(169.7)   1,283.9
   —
Cash and Cash Equivalents at Beginning of Year1,283.9
   —
   —
Cash and Cash Equivalents at End of Year$1,114.2
   $1,283.9
   $—
EVERGY, INC.
Statements of Cash Flows of Parent Company
202120202019
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$872.8 $612.5 $664.4 
Adjustments to reconcile income to net cash from operating activities:
Non-cash compensation15.6 16.0 16.3 
Net deferred income taxes and credits— 9.6 21.4 
Equity in earnings from subsidiaries(932.9)(683.4)(698.2)
Other7.0 7.0 2.1 
Changes in working capital items:
Accounts receivable from subsidiaries(18.2)(30.0)8.9 
Income taxes receivable(7.5)0.6 (7.8)
Prepaid expenses and other current assets— 0.8 (0.1)
Accounts payable to subsidiaries3.9 5.0 (15.0)
Accrued interest(1.4)(0.7)12.5 
Other current liabilities(3.2)2.9 1.7 
Cash dividends from subsidiaries290.0 355.0 460.0 
Changes in other assets0.1 0.3 0.2 
Changes in other liabilities4.8 (3.7)(3.5)
Cash Flows from Operating Activities231.0 291.9 462.9 
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Repayment of intercompany note347.4 — — 
Cash Flows from Investing Activities347.4 — — 
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short term debt, net157.1 180.0 20.0 
Proceeds from long-term debt— — 1,585.0 
Retirements of long-term debt(350.0)— — 
Payment for settlement of interest rate swap accounted for as a cash flow hedge— — (69.8)
Cash dividends paid(497.9)(465.0)(462.5)
Issuance of common stock112.5 — — 
Repurchase of common stock— — (1,628.7)
Other financing activities(3.6)(7.5)(2.4)
Cash Flows used in Financing Activities(581.9)(292.5)(558.4)
NET CHANGE IN CASH AND CASH EQUIVALENTS(3.5)(0.6)(95.5)
CASH AND CASH EQUIVALENTS:
Beginning of period11.0 11.6 107.1 
End of period$7.5 $11.0 $11.6 
The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.
180
GREAT PLAINS ENERGY INCORPORATED
EVERGY, INC.
NOTES TO FINANCIAL STATEMENTS OF PARENT COMPANY
The Great Plains Energy IncorporatedEvergy, Inc. Notes to Consolidated Financial Statements in Part II, Item 8 should be read in conjunction with the Great Plains Energy IncorporatedEvergy, Inc. Parent Company Financial Statements.
1. ORGANIZATION AND BASIS OF PRESENTATION
The Great Plains Energy IncorporatedEvergy, Inc. Parent Company Financial Statements have been prepared to presentcomply with Rule 12-04 of Regulation S-X.
Evergy, Inc. was incorporated in 2017 as Monarch Energy, a wholly-owned subsidiary of Great Plains Energy. Prior to the financial position, resultsclosing of operationsthe merger transactions, Monarch Energy changed its name to Evergy, Inc. and cash flowsdid not conduct any business activities other than those required for its formation and matters contemplated by the Amended Merger Agreement. On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, Inc., with Evergy, Inc. surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger. These merger transactions resulted in Evergy, Inc. becoming the parent entity of Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, on a stand-alone basis as a holding company. Investmentsincluding Evergy Metro and Evergy Missouri West.
Evergy, Inc. operates primarily through its wholly-owned direct subsidiaries. Evergy, Inc.'s investments in subsidiaries are accounted for using the equity method. Fair value adjustments and goodwill related to the acquired assets and liabilities of Great Plains Energy and its direct subsidiaries are only reflected on Evergy's consolidated financial statements and as such, are not included in Evergy, Inc.'s Parent Company Financial Statements. See Note 1 to the consolidated financial statement for additional information.

2. LONG-TERM DEBT
See Note 12 to the consolidated financial statements for additional information on Evergy, Inc.'s long-term debt.
3. GUARANTEES
See Note 15 to the consolidated financial statements for additional information regarding Evergy, Inc.'s guarantees.
4. DIVIDENDS
Cash dividends paid to Evergy, Inc. by its subsidiaries were $290.0 million for the year ended December 31, 2021, $355.0 million for the year ended December 31, 2020 and $460.0 million for the year ended December 31, 2019. See Note 17 to the consolidated financial statements for information regarding the dividend restrictions of Evergy, Inc. and its subsidiaries.
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181

Schedule II - Valuation and Qualifying Accounts and Reserves
Evergy, Inc.
Valuation and Qualifying Accounts
Years Ended December 31, 2021, 2020 and 2019
Additions
Charged
Balance AtTo CostsChargedBalance
BeginningAndTo OtherAt End
DescriptionOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2021(millions)
Allowance for uncollectible accounts$19.3 $28.0 $12.0 (a)$26.4 (b)$32.9 
Tax valuation allowance14.4 — — 1.6 (c)12.8 
Year Ended December 31, 2020
Allowance for uncollectible accounts$10.5 $24.9 $12.5 (a)$28.6 (b)$19.3 
Tax valuation allowance17.5 — — 

3.1 (c)14.4 
Year Ended December 31, 2019
Allowance for uncollectible accounts$9.2 $27.2 $12.4 (e)$38.3 (b)$10.5 
Tax valuation allowance27.3 0.6 — (d)10.4 (c)17.5 
Great Plains Energy Incorporated
Valuation and Qualifying Accounts
Years Ended December 31, 2017, 2016 and 2015
                
    Additions      
  Charged   
 Balance AtTo CostsCharged Balance
 BeginningAndTo Other At End
DescriptionOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2017(millions)
Allowance for uncollectible accounts $4.0
  $10.5
  $8.1
(a) 
 $17.9
(b) 
 $4.7
 
Legal reserves 16.1
  0.8
  —
  9.2
(c) 
 7.7
 
Environmental reserves 1.7
  0.1
  —
  —
  1.8
 
Tax valuation allowance 16.4
  11.3
  —
  4.7
(d) 
 23.0
 
Year Ended December 31, 2016               
Allowance for uncollectible accounts $3.8
  $9.0
  $8.1
(a) 
 $16.9
(b) 
 $4.0
 
Legal reserves 5.9
  10.4
  —
  0.2
(c) 
 16.1
 
Environmental reserves 1.7
  —
  —
  —
  1.7
 
Tax valuation allowance 19.9
  0.1
  —
  3.6
(d) 
 16.4
 
Year Ended December 31, 2015               
Allowance for uncollectible accounts $2.8
  $10.5
  $8.7
(a) 
 $18.2
(b) 
 $3.8
 
Legal reserves 4.7
  2.6
  —
  1.4
(c) 
 5.9
 
Environmental reserves 1.7
  —
  —
  —
  1.7
 
Tax valuation allowance 16.6
  4.9
  —
  1.6
(d) 
 19.9
 
(a) Recoveries.
(a)    Recoveries.
(b) Uncollectible accounts charged off.
(c) Payment of claims/settlements.
(d)    Reversal of tax valuation allowance.

145
Evergy Kansas Central, Inc.
Valuation and Qualifying Accounts
Years Ended December 31, 2021, 2020 and 2019
Additions
Charged
Balance AtTo CostsChargedBalance
BeginningAndTo OtherAt End
DescriptionOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2021(millions)
Allowance for uncollectible accounts$7.5 $12.0 $4.5 (a)$11.0 (b)$13.0 
Year Ended December 31, 2020
Allowance for uncollectible accounts$3.8 $11.1 $2.6 (a)$10.0 (b)$7.5 
Year Ended December 31, 2019
Allowance for uncollectible accounts$3.9 $7.2 $3.4 (a)$10.7 (b)$3.8 
Tax valuation allowance1.7 — 

— 1.7 (c)— 
Table of Contents(a) Recoveries.


Kansas City Power & Light Company
Valuation and Qualifying Accounts
Years Ended December 31, 2017, 2016 and 2015
                
    Additions      
  Charged   
 Balance AtTo CostsCharged Balance
 BeginningAndTo Other At End
DescriptionOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2017(millions)
Allowance for uncollectible accounts $1.8
  $7.5
  $5.6
(a) 
 $12.7
(b) 
 $2.2
 
Legal reserves 15.1
  —
  —
  9.0
(c) 
 6.1
 
Environmental reserves 0.3
  —
  —
  —
  0.3
 
Tax valuation allowance —
  1.2
  —
  1.2
(d) 
 —
 
Year Ended December 31, 2016               
Allowance for uncollectible accounts $1.8
  $6.4
  $5.5
(a) 
 $11.9
(b) 
 $1.8
 
Legal reserves 5.3
  9.8
  —
  —
(c) 
 15.1
 
Environmental reserves 0.3
  —
  —
  —
  0.3
 
Tax valuation allowance 0.7
  —
  —
  0.7
  —
 
Year Ended December 31, 2015               
Allowance for uncollectible accounts $1.2
  $7.1
  $5.8
(a) 
 $12.3
(b) 
 $1.8
 
Legal reserves 2.9
  2.6
  —
  0.2
(c) 
 5.3
 
Environmental reserves 0.3
  —
  —
  —
  0.3
 
Tax valuation allowance —
  0.7
  —
  —
  0.7
 
(a)    Recoveries.
(b) Uncollectible accounts charged off.
(c) Payment of claims/settlements.
(d)    Reversal of tax valuation allowance.


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182

Evergy Metro, Inc.
Valuation and Qualifying Accounts
Years Ended December 31, 2021, 2020 and 2019
Additions
Charged
Balance AtTo CostsChargedBalance
BeginningAndTo OtherAt End
DescriptionOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2021(millions)
Allowance for uncollectible accounts$8.1 $10.5 $5.3 (a)$10.6 (b)$13.3 
Year Ended December 31, 2020
Allowance for uncollectible accounts$4.6 $9.0 $6.9 (a)$12.4 (b)$8.1 
Year Ended December 31, 2019
Allowance for uncollectible accounts$3.8 $13.7 $6.3 (a)$19.2 (b)$4.6 
(a) Recoveries.
(b) Uncollectible accounts charged off.
183
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
EVERGY, INC.
Date: February 24, 2022GREAT PLAINS ENERGY INCORPORATED
By: /s/ David Campbell
David Campbell
Date: February 21, 2018
By: /s/ Terry Bassham
Terry Bassham
Chairman, President and Chief Executive Officer


Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
SignatureTitleDate
/s/ Terry BasshamDavid CampbellChairman,Director, President and Chief Executive Officer)February 21, 201824, 2022
Terry BasshamDavid Campbell(Principal Executive Officer))
)
/s/ Kevin E. BryantKirkland B. AndrewsSeniorExecutive Vice President - Finance and Strategy and Chief Financial Officer)
Kevin E. BryantKirkland B. Andrews(Principal Financial Officer))
)
/s/ Steven P. BusserVice President - Risk Management and ControllerChief Accounting Officer)
Steven P. Busser(Principal Accounting Officer))
)
David L. Bodde*Mark A. Ruelle*DirectorChair of the Board of Directors)
)
Randall C. Ferguson, Jr.*Mollie Hale Carter*Director)
)
Gary D. Forsee*Director)
)
Scott D. Grimes*Director)
)
Thomas D. Hyde*Director)
)
B. Anthony Isaac*Director)
)
Paul M. Keglevic*Director)
)
Mary L. Landrieu*Director)
Sandra A.J. Lawrence*Director)
)
Ann D. Murtlow*Director)
)
Sandra J. Price*Director)
)
S. Carl Soderstrom Jr.*Director)
)
John J. Sherman*Arthur Stall*Director)
)
C. John Wilder*Director)
*By    /s/ Terry BasshamDavid Campbell
Terry Bassham    David Campbell
Attorney-in-Fact*


147
184


SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.                
EVERGY KANSAS CENTRAL, INC.
Date: February 24, 2022KANSAS CITY POWER & LIGHT COMPANY
By: /s/ David Campbell
David Campbell
Date: February 21, 2018
By: /s/ Terry Bassham
Terry Bassham
Chairman, President and Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
SignatureTitleDate
/s/ Terry BasshamDavid CampbellChairman,Director, President and Chief Executive Officer)February 21, 201824, 2022
Terry BasshamDavid Campbell(Principal Executive Officer))
)
/s/ Kevin E. BryantKirkland B. AndrewsSeniorExecutive Vice President - Finance and Strategy and Chief Financial Officer)
Kevin E. BryantKirkland B. Andrews(Principal Financial Officer))
)
/s/ Steven P. BusserVice President - Risk Management and ControllerChief Accounting Officer)
Steven P. Busser(Principal Accounting Officer))
)
David L. Bodde*Mark A. Ruelle*DirectorChair of the Board of Directors)
)
Randall C. Ferguson, Jr.*Mollie Hale Carter*Director)
)
Gary D. Forsee*Director)
)
Scott D. Grimes*Director)
)
Thomas D. Hyde*Director)
)
B. Anthony Isaac*Director)
)
Paul M. Keglevic*Director)
)
Mary L. Landrieu*Director)
Sandra A.J. Lawrence*Director)
)
Ann D. Murtlow*Director)
)
Sandra J. Price*Director)
)
S. Carl Soderstrom Jr.*Director)
)
John J. Sherman*Arthur Stall*Director)
)
C. John Wilder*Director)
*By    /s/ Terry BasshamDavid Campbell
Terry Bassham    David Campbell
Attorney-in-Fact*

185

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.                
EVERGY METRO, INC.
Date: February 24, 2022
By: /s/ David Campbell
David Campbell
President and Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
SignatureTitleDate
/s/ David CampbellDirector, President and Chief Executive Officer)February 24, 2022
David Campbell(Principal Executive Officer))
)
/s/ Kirkland B. AndrewsExecutive Vice President and Chief Financial Officer)
Kirkland B. Andrews(Principal Financial Officer))
)
/s/ Steven P. BusserVice President and Chief Accounting Officer)
Steven P. Busser(Principal Accounting Officer))
)
Mark A. Ruelle*Chair of the Board of Directors)
)
Mollie Hale Carter*Director)
)
Thomas D. Hyde*Director)
)
B. Anthony Isaac*Director)
)
Paul M. Keglevic*Director)
)
Mary L. Landrieu*Director)
Sandra A.J. Lawrence*Director)
)
Ann D. Murtlow*Director)
)
Sandra J. Price*Director)
)
S. Carl Soderstrom Jr.*Director)
)
John Arthur Stall*Director)
)
C. John Wilder*Director)
*By    /s/ David Campbell
    David Campbell
    Attorney-in-Fact*

148
186