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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 20192022
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______to_______
evrg-20221231_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
001-38515EVERGY, 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
000-51873Exact name of registrant as specified in its charter,EVERGY METRO, INC.
Commissionstate of incorporation, address of principalI.R.S. Employer
File Numberexecutive offices and telephone numberIdentification Number
001-38515EVERGY, INC.82-273339544-0308720
(a Missouri corporation)
1200 Main Street
Kansas City, Missouri 64105
(816) 556-2200
001-03523EVERGY KANSAS CENTRAL, INC.48-0290150
(formerly Westar Energy, Inc.)
(a Kansas corporation)
818 South Kansas Avenue
Topeka, Kansas 66612
(785) 575-6300
000-51873EVERGY METRO, INC.44-0308720
(formerly Kansas City Power & Light Company)
(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 YorkThe Nasdaq Stock ExchangeMarket LLC
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.
Evergy, Inc.Yes☒No☐
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
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.
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.
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 every Interactive Data File required to be submitted 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 such files).
Evergy, Inc.Yes☒No☐
Evergy Kansas Central, Inc.Yes☒No☐
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 accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Evergy, Inc.Large Accelerated Filer☒Accelerated Filer☐Non-accelerated Filer☐Smaller Reporting Company☐Emerging Growth Company☐
Evergy Kansas Central, Inc.Large Accelerated Filer☐Accelerated Filer☐Non-accelerated Filer☒Smaller Reporting Company☐Emerging Growth Company☐
Evergy Metro, Inc.Large Accelerated Filer☐Accelerated Filer☐Non-accelerated Filer☒Smaller Reporting Company☐Emerging Growth 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.
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).
Evergy, Inc.Yes☐No☒
Evergy Kansas Central, Inc.Yes☐No☒
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, 2019)2022) was approximately $14,138,041,261.$14,786,156,340. All of the common equity of Evergy Kansas Central, Inc. and Evergy Metro, Inc. is held by Evergy, Inc.

On February 24, 2020,17, 2023, Evergy, Inc. had 226,659,013229,568,060 shares of common stock outstanding.


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On February 24, 2020,17, 2023, Evergy Kansas Central, Inc. and Evergy Metro, Inc. each had 1one share of common stock outstanding and held by Evergy, Inc.
Evergy Kansas Central, Inc. and Evergy Metro, Inc. meet the conditions set forth in General Instruction (I)(1)(a) and (b) of Form 10-K and are therefore filing this Form 10-K with the reduced disclosure format.
Documents Incorporated by Reference
Portions of the 20202023 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
45
PART I
Item 1.
7
Item 1A.
1416
Item 1B.
2228
Item 2.
2329
Item 3.
2632
Item 4.
2632
PART II
Item 5.
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
2733
Item 6.
2834
Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
2934
Item 7A.
5462
Item 8.
5665
Item 9.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
147160
Item 9A.
147160
Item 9B.
151164
Item 9C.
164
PART III
Item 10.
151164
Item 11.
152165
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
152165
Item 13.
153166
Item 14.
153166
PART IV
Item 15.
154168
175189


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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 ourEvergy's strategic plan, including, without limitation, those related to earnings per share, and dividend, growth targets, operating and maintenance expense savings goals and future capital allocation plans;investment goals; the outcome of legislative efforts and regulatory and legal proceedings; future energy demand; future power prices; plans with respect to existing and potential future generation resources; the availability and cost of generation resources and energy 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, the Evergy Companies are providing a number of risks, uncertainties and other factors that could cause actual results to differ from the forward-looking information. These risks, uncertainties and other factors include, but are not limited to: economic and weather conditions and any impact on sales, prices and costs; changes in business strategy or operations; the impact of federal, state and local political, legislative, judicial and regulatory actions or developments, including deregulation, re-regulation, securitization and restructuring of the electric utility industry; decisions of regulators regarding, among other things, customer rates and the prudency 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 air and water quality and waste management and disposal; the impact of climate change, including increased frequency and severity of significant weather events and reduced demand for coal-based energy;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 and natural gas 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 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 attacks, acts including cyber terrorism;of war and other disruptions to the Evergy Companies' facilities or information technology infrastructure or the facilities and infrastructure of third-party service providers on which the Evergy Companies rely; impact of the Russian, Ukrainian conflict on the global energy market, ability to carry out marketing and sales plans; cost, availability, quality and timely provision of equipment, supplies, labor and fuel; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; delays and cost increases of generation, transmission, distribution or other projects; the Evergy Companies' ability to manage their transmission and distribution development plans and transmission joint ventures; the inherent risks associated with the ownership and operation of a nuclear facility, including environmental, health, safety, regulatory and financial risks; workforce risks, including those 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, wages, retirement, health care and other benefits; disruption, costs and uncertainties caused by or related to the actions of individuals or entities, such as activist shareholders or special interest groups, that seek to influence ourEvergy's strategic plan, financial results or operations; the impact of changing expectations and demands of the Evergy Companies' customers, regulators, investors and stakeholders, including heightened emphasis on environmental, social and governance concerns; 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 merger of Great Plains Energy Incorporated (Great Plains Energy) and Evergy Kansas Central that resultedto achieve in the creation of Evergy will not be realized,a timely manner or will not be realized within the expected time period; difficulties related to the integration, including the diversion of management time;at all; difficulties in maintaining relationships with customers, employees, regulators or suppliers; disruption related to the rebranding of the Evergy Companies, including the impact of the rebranding on receipt of customer payments; and other risks and uncertainties.

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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 the Evergy Companies. Other sections of this reportCompanies' other filings with the Securities and other periodicExchange Commission (SEC). Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Evergy Companies with the Securities and Exchange Commission (SEC) should also be read for more information regarding risk factors.SEC. Each forward-looking statement speaks only as of the date of the particular statement. The 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, except as required by law.

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Available InformationAVAILABLE 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, www.evergy.com.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 tab onsection of their website, www.evergy.com,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'sthe 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
AOCIAccumulated other comprehensive income
AROsAsset retirement obligations
Abbreviation or AcronymBSERDefinition
ACEAffordable Clean Energy
AEPAmerican Electric Power Company, Inc.
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, Evergy Kansas Central, Monarch Energy Holding, Inc. and King Energy, Inc.
AMTAlternative Minimum Tax
AROsAsset Retirement Obligations
ASCAccounting Standards Codification
ASRAccelerated share repurchase
ASUAccounting Standards Update
BSERBest system of emission reduction
CAAClean Air Act Amendments of 1990
CCRsCoal combustion residuals
CO2
Carbon dioxide
COLICorporate-owned life insurance
CPPCOVID-19Coronavirus
CPPClean Power Plan
CWACSAPRClean Water ActCross-State Air Pollution
D.C. CircuitU.S. Court of Appeals for the D.C. Circuit
DOEDepartment of Energy
EIRRELGEnvironmental Improvement Revenue Refunding
ELGEffluent limitations guidelines
EPAEnvironmental Protection Agency
EPSEarnings 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

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Abbreviation or AcronymDefinition
Evergy Kansas CentralEvergy Kansas Central, Inc., formerly known as Westar Energy, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Kansas SouthEvergy Kansas South, Inc., formerly known as Kansas Gas and Electric Company, a wholly-owned subsidiary of Evergy Kansas Central
Evergy MetroEvergy Metro, Inc., formerly known as Kansas City Power & Light Company, a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Metro Mortgage IndentureEvergy Metro General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented
Evergy Missouri WestEvergy Missouri West, Inc., formerly known as KCP&L Greater Missouri Operations Company, a wholly-owned subsidiary of Evergy
Evergy Transmission CompanyEvergy Transmission Company, LLC, formerly known as GPE Transmission Holding Company, LLC
Exchange ActThe Securities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
FERCFederal Energy Regulatory Commission
FMBFirst Mortgage Bond
GAAPGenerally Accepted Accounting Principles
GHGGreenhouse gas
Great Plains EnergyGreat Plains Energy Incorporated
JECJeffrey Energy Center
KCCState Corporation Commission of the State of Kansas
KDHEKansas Department of Health & Environment
King EnergyKing Energy, Inc., a wholly-owned subsidiary of Evergy
kWhEvergy Transmission CompanyKilowatt hourEvergy Transmission Company, LLC
LIBORExchange ActLondon Interbank Offered RateThe Securities Exchange Act of 1934, as amended
LTISALong-Term Incentive and Share Award plan
MDNRFebruary 2021 winter weather eventSignificant 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
FMBsFirst Mortgage Bonds
GAAPGenerally Accepted Accounting Principles
GHGGreenhouse gas
Great Plains EnergyGreat Plains Energy Incorporated
JECJeffrey Energy Center
KCCState Corporation Commission of the State of Kansas
KDHEKansas Department of Health & Environment
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Abbreviation or AcronymDefinition
kVKilovolt
MDNRMissouri Department of Natural Resources
MECGMidwest Energy Consumers Group
MEEIAMissouri Energy Efficiency Investment Act
Monarch EnergyMPSCMonarch Energy Holding, Inc.
MPSCPublic Service Commission of the State of Missouri
MWMegawatt
MWhMegawatt hour
NAAQSNational Ambient Air Quality Standards
NAVNet Asset Valueasset value
NRCNOLNuclear Regulatory CommissionNet operating loss
NSRNew source review
OCIOther comprehensive income
OPCOffice of the Public Counsel
PISAPlant-in service accounting
Prairie WindPrairie Wind Transmission, LLC, 50% owned by Evergy Kansas Central
RSURestricted share unit
RTORegional transmission organization
SECSecurities and Exchange Commission
SPPSIPState implementation plan
SPPSouthwest Power Pool, Inc.
TCJATax Cuts and Jobs Act

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Abbreviation or AcronymTDCDefinitionTransmission delivery charge
TCRTerm Loan FacilityTransmission Congestion RightsTerm Loan Credit Agreement
TFRTransmission formula rate
TransourceTransource Energy, LLC and its subsidiaries, 13.5% owned by Evergy Transmission Company
VIE
VIEVariable interest entity
Wolf CreekWolf Creek Generating Station

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PART I
ITEM 1. BUSINESS
General
Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc. are separate registrants filing this combined annual report on Form 10-K. The terms "Evergy," "Evergy Kansas Central," "Evergy Metro" and "Evergy Companies" are used throughout this report. "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Kansas Central" refers to Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated 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.
EVERGY, INC.
Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below. In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.
•Evergy Kansas Central, Inc. (Evergy Kansas Central), formerly known as Westar Energy, Inc., 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 operations, Evergy Kansas South, Inc. (Evergy Kansas South), formerly known as Kansas Gas and Electric Company..
•Evergy Metro, Inc. (Evergy Metro), formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
•Evergy Missouri West, Inc. (Evergy Missouri West), formerly known as KCP&L Greater Missouri Operations Company, is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
•Evergy Transmission Company, LLC (Evergy Transmission Company), formerly known as GPE Transmission Holding Company, LLC, owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, Inc. (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 kVkilovolt (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.
Since the rebranding in September 2019, Evergy Kansas Central, Evergy Kansas South, Evergy Metro, and Evergy Missouri West have been conductingconduct business in their respective service territories using the name Evergy. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operatesoperate in one segment). Evergy serves approximately 1,604,3001,652,200 customers located in Kansas and Missouri. Customers include approximately 1,407,7001,444,900 residences, 189,600199,500 commercial firms and 7,0007,800 industrials, municipalities and other electric utilities. Evergy is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter.

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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 – operating the business cost-effectively and investing in technology and infrastructure to keep rates affordable and improve regional rate competitiveness; mitigating fuel and purchased power volatility by investing in a diverse generation fleet;
•Reliability – targeting transmission and distribution infrastructure investment to support reliability, flexibility, public safety, and resiliency; deploying new technology to improve preventive maintenance and customer restoration times; and
•Sustainability - investing at sustainable capital expenditure levels to maintain reliability and customer affordability for the long-term and balancing clean energy investment to continue fuel diversification and enable a responsible generation portfolio transition.
See Item 7, Management's Discussion and Analysis of Financial Operations (MD&A) - Executive Summary – Strategy, for additional information.
The table below summarizes the percentage of Evergy's revenues by customer classification.
2019 2018 2017202220212020
Residential37% 37% 32%Residential37%34%39%
Commercial35% 32% 28%Commercial32%30%33%
Industrial12% 12% 16%Industrial12%11%12%
Wholesale7% 10% 12%Wholesale9%13%5%
Transmission6% 7% 11%Transmission6%6%6%
Other3% 2% 1%Other4%6%5%
Total100% 100% 100%Total100%100%100%
The table below summarizes the percentage of Evergy's retail electricity sales by customer class.
 2019 2018 2017
Residential36% 37% 32%
Commercial43% 41% 38%
Industrial21% 22% 30%
Total100% 100% 100%
Merger of Great Plains Energy and Evergy Kansas Central
Evergy was incorporated in 2017 as Monarch Energy Holding, Inc. (Monarch Energy), a wholly-owned subsidiary of Great Plains Energy Incorporated (Great Plains Energy). Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended and Restated Agreement and Plan of Merger, dated as of July 9, 2017, by and among Great Plains Energy, Evergy Kansas Central, Monarch Energy and King Energy, Inc. (King Energy), a wholly-owned subsidiary of Monarch Energy (Amended Merger Agreement).
On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement. As a result of the mergers, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger. Following the completion of these mergers, Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West, became wholly-owned subsidiaries of Evergy.
The merger was structured as a merger of equals in a tax-free exchange of shares that involved no premium paid or received with respect to either Great Plains Energy or Evergy Kansas Central. As a result of the closing of the merger transaction, each outstanding share of Great Plains Energy common stock was converted into 0.5981 shares of Evergy common stock and each outstanding share of Evergy Kansas Central common stock was converted into 1 share of Evergy common stock.
Evergy Kansas Central was determined to be the accounting acquirer in the merger and thus, the predecessor of Evergy. Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results of operations from June 4, 2018, the date of the closing of the merger, and thereafter.
See Note 2 to the consolidated financial statements for more information regarding the merger.
202220212020
Residential38%37%38%
Commercial42%42%42%
Industrial20%21%20%
Total100%100%100%
Regulation
Evergy Kansas Central's and Evergy Metro's Kansas operations are regulated by the State Corporation Commission of the State of Kansas (KCC) and Evergy Metro's Missouri operations and Evergy Missouri West are regulated by the Public Service Commission of the State of Missouri (MPSC), 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

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service territories. The Evergy Companies are also subject to regulation by the Federal Energy Regulatory Commission (FERC) with respect to transmission, wholesale sales and rates, the issuance of securities in certain cases and other matters. Evergy has 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.
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The table below summarizes the rate orders in effect for Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's retail rate jurisdictions.
RegulatorAllowed Return on EquityRate-Making Equity RatioEffective DateRegulatorAllowed Return on EquityRate-Making Equity RatioEffective Date
Evergy Kansas Central (a)
KCC9.3%51.46%September 2018
Evergy Kansas Central (a)
KCC9.3%51.46%September 2018
Evergy Metro - KansasKCC9.3%49.09%December 2018Evergy Metro - KansasKCC9.3%49.09%December 2018
Evergy Metro - MissouriMPSC(b)December 2018Evergy Metro - MissouriMPSC(b)January 2023
Evergy Missouri WestMPSC(b)December 2018Evergy Missouri WestMPSC(b)January 2023
(a) The KCC establishes rates for Evergy Kansas Central and Evergy Kansas South on a consolidated basis.
(b) Evergy Metro's and Evergy Missouri West's current MPSC rate order doesorders do not contain an allowed return on equity or rate-making equity ratio.
Evergy expects its 20202023 Kansas and Missouri jurisdictional retail revenues to be approximately 60% and 40%, respectively, based on historical averages of Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's total retail revenues.
See Item 7, MD&A, Critical Accounting Policies section, and Note 54 to the consolidated financial statements for additional information concerning regulatory matters.
Competition
Missouri and Kansas continue to operate on the fully integrated and regulated retail utility model. As a result, the Evergy Companies do not compete with others to supply and deliver electricity in their franchised service territories in exchange for agreeing to have their terms of service regulated by state regulatory bodies. If Missouri or Kansas were to pass and implement legislation authorizing or mandating retail choice, Evergy may no longer be able to apply regulated utility accounting principles to deregulated portions of its operations, which may require a surcharge to recover certain costs from legacy customers or could lead to a write-off of certain regulatory assets and liabilities.
Evergy 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 SPP Integrated Marketplace, in which Evergy Kansas Central, Evergy Metro and Evergy Missouri West are participants. This 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.
The SPP Integrated Marketplace is similar to other Regional Transmission Organization (RTO)RTO or Independent System Operator (ISO) markets currently operating in other regions of the United States.
Power Supply
Evergy has 14,700 MWsapproximately 15,400 megawatts (MWs) of owned generating capacity and renewable purchased power purchase agreements. Evergy's owned generation and purchased power purchases from others, as a percentage of total MWhsmegawatt hours (MWhs) generated and purchased, was approximately 71%70% and 29%30%, respectively, over the last twothree years. Evergy purchases power to meet its customers' needs, to satisfy firm power commitments or to meet renewable energy standards. Management believes Evergy will be able to meet its future purchased power 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.

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Evergy's total capacity by fuel type, including both owned generating capacity and purchased power purchase agreements, is detailed in the table below.
Fuel TypeEstimated MW CapacityPercent of Total CapacityFuel TypeEstimated 2023 MW CapacityPercent of Total Capacity
Coal5,903
40
%Coal5,916 38 %
Wind (a)
Wind (a)
4,326 28 
Natural gas and oil3,988
27
 Natural gas and oil3,998 26 
Wind (a)
3,642
24
 
Uranium1,104
8
 Uranium1,106 7 
Solar, landfill gas and hydroelectric (b)
72
1
 
Solar, landfill gas and hydroelectric (b)
78 1 
Total capacity14,709
100
%Total capacity15,424 100 %
(a) MWs are based on nameplate capacity of the wind facility. Includes owned generating capacity of 579 MWs and long-term power purchase agreements of approximately 3,0633,747 MWs of wind generation that expire infrom 2028 through 2048. See Item 2, Properties, for additional information.
(b) Includes a long-term power purchase agreement for approximately 6066 MWs of hydroelectric generation that expires in 2023.
Evergy's projected peak summer demand for 20202023 is approximately 10,36710,200 MWs. Evergy expects to meet its projected capacity requirements for the foreseeable future2023 with its existing generation assets and power purchases. See "Transitioning Evergy's Generation Fleet" below for further information regarding Evergy's long-term strategy with regards to its generating assets and capacitypower purchases.
Evergy Kansas Central, Evergy Metro and Evergy 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 competitive wholesale electricity prices in the region. As SPP members, Evergy Kansas Central, Evergy Metro and Evergy Missouri West are required to maintain a minimum reserve margin of 12%15%. 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 (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 15 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 greenhouse gasGHG emissions, (GHG), 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
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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.
TransformingTransitioning Evergy's Generation Fleet
The Evergy Companies are committed to a long-term strategy to reduce carbonCO2 emissions in a cost-effective and reliable manner and are targetingmanner. In 2022, Evergy achieved a reduction of CO2 emissions by nearly half from 2005 levels. Evergy has a goal to achieve net-zero CO2 emissions by 2045 with an 80%interim goal of a 70% reduction of carbon CO2 emissions by 2050 from 2005 levels.levels by 2030. The trajectory and timing of reaching thisthe net-zero goal could be impacted by political, legalare dependent on many external factors, including enabling technology developments, the reliability of the power grid, availability of transmission capacity, supportive energy policies and regulatory actionsregulations, and technological matters. other factors. See "Cautionary Statements Regarding Certain Forward-Looking Information" and Part I, Item 1A, Risk Factors, for additional information.
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 and avoid "stranding" assets by prematurely closing facilities.rates. The Evergy Companies use ana triennial integrated resource plan, which is a detailed analysis that estimates factors that influence the future supply and

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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, new generating capacity, cost of environmental compliance, integration of renewables, energy storage, energy efficiency and demand response initiatives. Strategies that the Evergy Companies have pursuedare 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 3,500 megawatts4,400 MWs of renewables,renewable generation, while retiring more than 2,400 megawattsMWs of fossil generation. The transition of their generation fleet has allowedSee Item 2, Properties, for additional information regarding the Evergy Companies to reduce carbon emissions by almost 40% since 2005.Companies' renewable generation resources. The Evergy Companies are also committed to transparency. On its website, www.evergy.com,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 reportdocuments contained therein, are not incorporated into this filing.
See Note 15 to the consolidated financial statements for information regarding environmental matters.
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Fuel
The fuel sources for Evergy's owned generation and purchased power purchase agreements are coal, wind and other renewable sources, uranium and natural gas and oil. The actual 20192022 fuel mix and fuel cost in cents per net kilowatt hour (kWh) delivered are outlined in the following table.
 Fuel cost in cents perFuel cost in cents per
Fuel Mix(a)
 
net kWh delivered (b)
Fuel Mix(a)
net kWh delivered
Actual ActualActualActual
Fuel2019 2019Fuel20222022
Coal50% $2.03Coal48%2.33¢
Wind, hydroelectric, landfill gas and solar27 2.36
Wind, hydroelectric, landfill gas and solar (b)
Wind, hydroelectric, landfill gas and solar (b)
312.20
Uranium18 0.60Uranium160.66
Natural gas and oil5  2.91Natural gas and oil59.26
Total100% $1.94 Total100%2.36
(a) Fuel mix based on percent of net MWhs generated by owned resources and delivered under renewable purchased power purchase agreements.
(b) Fuel cost in cents per net kWh delivered includes purchased power costs associated with renewable purchased power purchase agreements.
Coal
During 2020,2023, Evergy's generating units, including jointly-owned units, are projected to use approximately 17 million tons of coal. Evergy Kansas Central, Evergy Metro and Evergy 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 80%65%, 15% and 5% of the projected coal requirements for 20202023, 2024 and approximately 10% for 2021.2025, respectively. The remainder of the coal requirements is expected to be fulfilled through entering into additional contracts or spot market purchases.
Evergy Kansas Central, Evergy Metro and Evergy 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 20202023, 2024 and approximately 75% for 2021.2025. The contract rates adjust for changes in railroad costs.

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Nuclear Fuel
Evergy Kansas South and Evergy Metro each owns 47% of Wolf Creek, which is Evergy'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 2027.the first quarter of 2030. The owners also have under contract all of the uranium fabrication services required to operate Wolf Creek through September 2025.2045.
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 ourEvergy's exposure to commodity price risks, see Item 7A., Quantitative and Qualitative Disclosures About Market Risk.
Evergy Kansas Central, maintainsEvergy Metro and Evergy Missouri West maintain natural gas transportation arrangements with Kansas Gas Service and Southern Star Central Gas Pipeline. The Kansas Gas Service arrangement has historically expired on April 30 of each year and is renegotiated for an additional one-year term.Pipeline, Inc. The Southern Star Central Gas Pipeline, Inc. arrangement expires based on the generating unit being served with expiration dates from 20222023 to 2030.
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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 for the years 2020 through 2022 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 and Evergy Missouri West requested an extension of these programs and in May 2022 the MPSC approved the extension through 2023.
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 through 2026. The KCC's decision on Evergy Kansas Central's and Evergy Metro's KEEIA request is expected in the first half of 2023.
Human Capital Resources
At December 31, 2022, the Evergy Companies had 4,512 employees, including 2,406 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 labor agreements with each of these unions that expire at varying times in 2024 through 2026. The Evergy Companies employ 1,579 generation employees, 1,388 transmission and distribution employees and 1,545 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.
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 allowing 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, 2022, Evergy's workforce was 78% male and 22% female, and women represented 25% 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.
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Information About Evergy's Executive Officers
Set forth below is information relating to the executive 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)
54President and Chief Executive Officer2021
Kirkland B. Andrews(b)
54Executive Vice President and Chief Financial Officer2021
Kevin E. Bryant (c)
47Executive Vice President and Chief Operating Officer2006
Lesley L. Elwell (d)
52Senior Vice President, Chief Human Resources Officer and Chief Diversity Officer2021
Charles A. Caisley (e)
49Senior Vice President, Public Affairs and Chief Customer Officer2011
Heather A. Humphrey (f)
52Senior Vice President, General Counsel and Corporate Secretary2010
Charles L. King (g)
58Senior Vice President and Chief Technology Officer2013
Steven P. Busser (h)
54Vice 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) and as President and Chief Executive Officer of Sharyland Utilities, LLC (2016-2019), and in various roles with TXU Corp. and its affiliated entities (2004-2013).
(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, Inc. (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, Mergers and Acquisitions (2005-2007).
(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 Incorporated (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, 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)Ms. Elwell was appointed Senior Vice President, Chief Human Resources Officer and Chief Diversity Officer of Evergy, Inc. in January 2023. Ms. Elwell previously served as Senior Vice President and Chief Human Resources Officer of Evergy, Inc. (2021-2023). Ms. Elwell previously served as Chief People Officer at J.E. Dunn Construction Company (2017-2021), as Vice President People Strategy / HR Business Partner of Walmart Corporation (2016-2017), as Vice President HR Business Partner Operations at DIRECTV, Inc. (2012-2015), and in various roles of increasing responsibility, including as Vice President, with Sprint Corporation (1997-2012; 2015-2016).
(e)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
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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).
(f)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).
(g)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.
(h)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.
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 generation, transmission, distribution and sale of electricity. Evergy Kansas Central serves approximately 716,200734,300 customers located in central and eastern Kansas. Customers include approximately 624,400634,700 residences, 87,30094,200 commercial firms, and 4,5005,400 industrials, municipalities and other electric utilities. Evergy Kansas Central's retail revenues averaged approximately 76%73% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales, transmission and miscellaneous electric revenues accounted for 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.
Evergy Metro, Inc.
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. Evergy Metro serves approximately 558,200576,700 customers located in western Missouri and eastern Kansas. Customers include approximately 493,300510,000 residences, 62,90064,800 commercial firms, and 2,0001,900 industrials, municipalities and other electric utilities. Evergy Metro's retail revenues averaged approximately 92%85% 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 Evergy Metro's revenues. Evergy 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 56%55% and 44%45%, respectively, of total retail revenues over the last three years.
Employees
15
At December 31, 2019, the Evergy Companies had 4,617 employees, including 2,520 represented by five local unions of the International Brotherhood of Electrical Workers (IBEW). Evergy also has a 94% indirect ownership share in Wolf Creek, which, at December 31, 2019, had 858 employees, including 477 represented by a local union of the IBEW and a local union of the United Government Security Officers of America (UGSOA). Evergy Kansas Central has labor agreements with IBEW Locals 304 and 1523, representing power plant and transmission and distribution workers (expires June 30, 2021). Evergy Metro has labor agreements with IBEW Local 1613, representing clerical employees (expires March 31, 2021), with IBEW Local 1464, representing transmission and distribution workers (expires January 31, 2021), and with IBEW Local 412, representing power plant workers (expires February 28, 2021). Wolf Creek has labor agreements with IBEW Local 304 (expires September 20, 2021) and UGSOA Local 252 (expires July 31, 2020).

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Information About Evergy's Executive Officers
Set forth below is information relating to the executive 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 he or she does 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
Terry Bassham (a)
59President and Chief Executive Officer2005
Kevin E. Bryant (b)
44Executive Vice President and Chief Operating Officer2006
Gregory A. Greenwood (c)
54Executive Vice President, Strategy and Chief Administrative Officer2003
Anthony D. Somma (d)
56Executive Vice President and Chief Financial Officer2006
Jerl L. Banning (e)
58Senior Vice President and Chief People Officer2010
Charles A. Caisley (f)
46Senior Vice President, Marketing and Public Affairs and Chief Customer Officer2011
Heather A. Humphrey (g)
49Senior Vice President, General Counsel and Corporate Secretary2010
Charles L. King (h)
55Senior Vice President and Chief Technology Officer2013
Steven P. Busser (i)
51Vice President - Risk Management and Controller2014
(a)Mr. Bassham was appointed President and Chief Executive Officer of Evergy, Inc. in June 2018. Mr. Bassham served as Chairman of the Board of Great Plains Energy (2013-2018) and had served as Chief Executive Officer of Great Plains Energy, Evergy Metro and Evergy Missouri West 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, Evergy Metro and Evergy Missouri West (2011-2012) and as Executive Vice President - Utility Operations of Evergy Metro and Evergy Missouri West (2010-2011). He was Executive Vice President - Finance and Strategic Development and Chief Financial Officer of Great Plains Energy (2005-2010) and of Evergy Metro and Evergy Missouri West (2009-2010).
(b)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, 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).
(c)Mr. Greenwood was appointed Executive Vice President, Strategy and Chief Administrative Officer of Evergy, Inc. in June 2018. Mr. Greenwood previously served in the following officer roles for 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.
(d)Mr. Somma was appointed Executive Vice President and Chief Financial Officer of Evergy, Inc. in June 2018. Mr. Somma previously served as Senior Vice President, Chief Financial Officer and Treasurer (2011-2018) for Evergy Kansas Central, after having been appointed as Treasurer in 2006 and Vice President in 2009. He also served as Executive Director, Generation (2004-2006), Executive Director, Finance (1998-1999) and Director, Corporate Strategy (1996-1998) of Evergy Kansas Central, after having joined the company in 1994. From 1999 to 2004, Mr. Somma served in various leadership roles with a former affiliate of Evergy Kansas Central, including Senior Vice President, Finance and Administration, Chief Financial Officer and Secretary.

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(e)Mr. Banning was appointed Senior Vice President and Chief People Officer of Evergy, Inc. in June 2018. Mr. Banning previously served in the following officer roles for Evergy Kansas Central: Senior Vice President, Operations Support and Administration (2015-2018); Vice President, Human Resources and IT (2014); and Vice President, Human Resources (2010- 2013). Mr. Banning also served as Executive Director of Human Resources for Evergy Kansas Central (2008-2010).
(f)Mr. Caisley was appointed Senior Vice President, Marketing and Public Affairs and Chief Customer Officer of Evergy, Inc. in June 2018. 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 - Risk Management and Controller of Evergy, Inc. in June 2018. 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.
ITEM 1A. RISK FACTORS
Utility Regulatory Risks:
Prices are established by regulators and may not be sufficient to result in a recovery ofrecover costs or provide for a return on investment.
The prices that the FERC, KCC and MPSC authorize the utility subsidiaries of Evergy to charge significantly influence the Evergy Companies' results of operations, financial position and cash flows.
In general, utilities are allowed to recover in customer rates costs that were prudently incurred to provide utility service, plus a reasonable return on invested capital.  There can be no assurance, however, that regulators will determine costs to have been prudently incurred. Further, the amounts approved by the regulators may not be sufficient 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 results of operations, financial conditionposition and cash flows of Evergy and its utility subsidiaries.
The Evergy Companies are also exposed to cost-recovery shortfalls due to the inherent "regulatory lag" in the rate-setting process. 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. In connection with the merger, Evergy Kansas Central and Evergy Metro agreed

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to a five-year base rate moratorium in Kansas beginning in December 2018. See Note 2 to the consolidated financial statements for additional information. In addition, effective as of January 1, 2019, Evergy Metro and Evergy Missouri West elected intoutilize a plant-in service accounting (PISA), legislative mechanism in Missouri, which by law, 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.after a general rate case to approximately 3% on an annualized basis. Evergy Metro and Evergy Missouri West each filed rate cases in 2022 under the PISA constraints described above and new rates became effective in January 2023. These and other factors may result in under-recovery of costs or failure to earn the authorized return on investment, or both.
Furthermore, during 2021 and 2022, the United States' economy experienced a substantial rise in the inflation rate compared to recent historical inflation rates. While the Federal Reserve Bank has announced certain measures to combat rising inflation, there remains uncertainty in the near-term outlook as to whether inflation will continue and whether actions by the Federal Reserve Bank will result in a recession. Increases in inflation raise the Evergy Companies' costs for labor, materials and services. Furthermore, 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 and regulatory pressures, Evergy'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 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.
Legislative and regulatory requirements may increase costs and result in compliance penalties.
FERC, the North 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 apply to public utilities.  The MPSC and KCC have the authority to implement utility operational standards and
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requirements, such as vegetation management standards, facilities inspection requirements and quality of service standards.  In addition, Evergy 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 a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.  Furthermore, regulatory changes could result in operational changes that increase costs or 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, 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 GHG emissions,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 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 MetroSee Item 1. Business - Environmental Matters 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 GHGs. 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 15 to the consolidated financial statements for additional information. In general, over time these laws and regulations have become and continue to become increasingly stringent and compliance with these laws and regulations require an increasing share of capital and operating resources, which may reduce the amount of resources available for other business objectives, including capital investments.
Compliance with these laws, regulations and requirements requires significant capital and operating resources,resources. Regulators may also disagree with the Evergy Companies' interpretation or application of these laws, regulations and therequirements. The failure to comply with these laws, regulations and requirements could result in substantial fines, injunctive relief and other sanctions. For 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 reviewed and determined Evergy Kansas Central should have taken additional or alternative actions, even though the facility is closed. A resulting consent order with the EPA has been agreed to by Evergy Kansas Central and additional groundwater monitoring activities have been initiated at the site.
The EPA has begun issuing CCR Part A and Part B 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 addition, there isJanuary 2022, the EPA announced changes following a risktour by the EPA administrator conducted in the second half of lawsuits alleging violations2021 to address environmental justice issues in communities that are marginalized, underserved and overburdened by pollution. These changes will include additional unannounced inspections of environmental laws, regulations or requirements, claiming creation ofsuspected non-compliant facilities, deploying new assets to monitor air pollution and a public nuisance or other matters,general increase in overall monitoring and seeking injunctions or monetary damages or other relief.

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. In September 2022, the EPA and the Missouri
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Department of Natural Resources (MDNR) conducted a CAA environmental justice inspection of the Evergy Companies' Hawthorn Generating Station. No CAA noncompliance issues were found.
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 results of operations, financial position and cash flows of the Evergy Companies. In addition, compliance with environmental laws, regulations and requirements 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 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 seeking injunctions or monetary damages or other relief.
Costs of compliance with environmental laws, regulations and requirements, or fines, penalties or negative lawsuit outcomes, if not recovered in rates from customers, could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.  
Financial Risks:
Financial market disruptionsvolatility or declines in the Evergy Companies' credit ratings may increase financing costs and limit access to the credit markets, which may adversely affect liquidity and financial results.
The Evergy Companies rely on funds from operations and access to the capital and credit markets to fund capital expenditures and for working capital and liquidity. DisruptionVolatility in capital or credit markets, increases in interest rates, deterioration in the financial condition of the financial institutions on which the Evergy Companies rely, credit rating downgrades, delays in regulatory approvals for certain refinancings, a decrease in the market price of Evergy's common stock or a decrease or disappearance in the demand for debt securities issued by the Evergy Companies or subsidiaries could have material adverse effects on the Evergy Companies.  These effects could include, among others: reduced access to capital and increased cost of borrowed funds and collateral requirements; dilution resulting from equity issuances at reduced prices; increased nuclear decommissioning trust and pension and other post-retirement benefit plan funding requirements; reduced ability to pay dividends; rate case disallowance of costs of capital; reductions in or delays of capital expenditures; delayed access to the capital markets at opportune times; and limitations in the ability of Evergy to provide credit support for its subsidiaries.
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 capital 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 impact liquidity. In addition,Additionally, the appeal by the Office of the Public Counsel (OPC) of the financing order for Evergy Missouri West to recover costs incurred in connection with the February 2021 winter weather event through the issuance of securitized bonds will result in a delay of such issuance and may increase financing costs. Finally, market disruption and volatility could have an adverse impact on Evergy's lenders, suppliers and other counterparties or customers, causing them to fail to meet their obligations.
Evergy is a holding company and relies on the earnings of its subsidiaries to meet its financial obligations.
Evergy 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,
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particularly Evergy Kansas Central, Evergy Metro and Evergy Missouri West.  Evergy's subsidiaries are separate legal entities and have no obligation to provide Evergy with funds. The ability of Evergy's subsidiaries to pay dividends or make other distributions, and accordingly, Evergy's ability to pay dividends on its common stock and meet its financial obligations, principally depends on the earnings and cash flows, capital requirements and general financial position of its subsidiaries, as well as regulatory factors, financial covenants, general business conditions and other matters.
In addition, the Evergy Companies are subject to certain corporate and regulatory restrictions and financial covenants that could affect their ability to pay dividends.  Under the Federal Power Act, Evergy Kansas Central, Evergy Metro and Evergy Missouri West generally can pay dividends only out of retained earnings. In connection with approval of the merger in Missouri, eachEach of Evergy Metro and Evergy Missouri West agreedhas 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. In connection with approval of the merger in Kansas, eachEach of Evergy Kansas Central and Evergy Metro agreedhas 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. As described elsewhere in this Form 10-K,Under various debt agreements, the Evergy Companies are also required to maintain a

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consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00, which could restrict the amount of dividends the Evergy Companies are permitted to pay. Evergy cannot guarantee dividends will be paid in the future or that, if paid, dividends will satisfy announced targets or investor expectations or be paid with the same frequency as in the past.
In 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.
Supply chain disruptions and inflation could negatively impact the Evergy Companies' operations and corporate strategy.
The operations and business plans of the Evergy Companies depend on the global supply chain to procure the equipment, materials and other resources necessary to build and provide services in a safe and reliable manner. The delivery of components, materials, equipment and other resources that are critical to the Evergy Companies' business operations and corporate strategy has been restricted by domestic and global supply chain upheaval. This has resulted in the shortage of critical items. International tensions, including the ramifications of regional conflict, could further exacerbate the global supply chain upheaval. These disruptions and shortages could adversely impact business operations and corporate strategy. The constraints in the supply chain could restrict the availability and delay the construction, maintenance or repair of items that are needed to support normal operations or are required to execute on the Evergy Companies' corporate strategy for continued capital investment in utility equipment. These disruptions and constraints could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.
Supply chain disruptions have contributed to higher prices of components, materials, equipment and other needed commodities and these higher prices may continue in the future. The economy in the United States has encountered a material level of inflation and that has contributed to increased uncertainty in the outlook of near term economic activity, including whether inflation will continue and at what rate. Increases in inflation raise costs for labor, materials and services. The Evergy Companies typically recover increases in costs from customers through rates. Failure to recover increased costs could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.
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Public health crises, epidemics, or pandemics could adversely affect the Evergy Companies' business functions, financial condition, liquidity, and results of operations.
Public health crises, epidemics, or pandemics and any related government responses may adversely impact the economy and financial markets and could have a variety of adverse impacts on the Evergy Companies, including a decrease in revenues, increased credit loss expense; increases in past due accounts receivable balances; and access to the capital markets at unreasonable terms or rates.
Public health crises, epidemics, or pandemics and any related government responses could also impair the Evergy Companies' ability to develop, construct, and operate facilities. Risks include extended disruptions to supply chains and inflation, resulting in increased costs for labor, materials, and services, which could adversely impact the Evergy Companies' ability to implement their corporate strategy. The Evergy Companies may also be adversely impacted by labor disruptions and productivity as a result of infections, employee attrition, and a reduced ability to replace departing employees as a result of employees who leave or forego employment to avoid any required precautionary measures.
Despite the Evergy Companies' efforts to manage the impacts of public health crises, epidemics, or pandemics that may occur in the future, the extent to which they may affect them depends on factors beyond their knowledge or control. As a result, the Evergy Companies are unable to determine the potential impact any such public health crises, epidemics, or pandemics may have on their business plans and operations, liquidity, financial condition, and results of operations.
Increasing costs associated with defined benefit retirement and postretirement plans, health care plans and other employee benefits could adversely affect Evergy's financial position and liquidity.
Evergy maintains defined benefit retirement and other post-retirement employee benefit plans for certain current and 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 amount of any required or voluntary contributions to the plans.  The Evergy Companies have substantial unfunded liabilities under these plans.  Also, if the rate of retirements exceeds planned levels, these plans experience adverse market returns on investments or interest rates fall, required or voluntary contributions to the plans could 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 results of operations, financial position and cash flows of the Evergy Companies.
The costs of providing health care benefits to employees and retirees have increased in recent years and may continue to rise in the future. Future legislative changes related to health care could also cause significant changes to benefit programs and costs. The increasing costs associated with health care plans could have a significant adverse impact on the results of operations, financial position and cash flows of the Evergy Companies.
The useEvergy 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 derivative contractsfuel and purchased power necessary to satisfy these requirements, regulatory or legislative actions could resultlimit, eliminate or delay recovery of these expenses after the expenses have been incurred.

The Evergy Companies engage in financial lossesthe wholesale and impair liquidity.retail sale of electricity and the wholesale purchase of electricity as part of their regulated electric operations in addition to 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 as 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
The
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and the risk that counterparties fail to fulfill their obligations to the Evergy Companies. Market volatility can 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 hedge, fail to materialize. The 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.

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 delay in the recovery of, fuel and purchased power expenses; if the Evergy Companies fail to adequately hedge or mitigate commodity or energy market risks; if the Evergy Companies are required to provide 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 resultsposition and liquidity.
Tax 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. Over the last several years, income tax obligations have been reduced due to the use of bonus depreciation provisions that allow for an acceleration of deductions for tax purposes and IRS guidance on tax deductions for repairs. The Tax Cuts and Jobs Act of 2017 (TCJA) eliminates bonus depreciation for regulated utilities on new capital investments. 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 itstheir balance sheets to determine whether a valuation allowance is necessary. A reduction in, or disallowance of, these tax 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, such as those resulting from the TCJA, 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 resultsposition 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 operating and economic parameters,factors, including transmission constraints, the ability to timely complete construction of renewable energy facilities, adverse weather conditions and breakdown or failure of equipment, could

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significantly reduce these tax credits, which could have an adverse impact on the results of operations and financial resultsposition of the Evergy Companies.
The anticipated benefits of the mergerEvergy Companies' strategy may not be realized.
The Evergy Companies have incurred,Companies' strategy includes significant planned reductions in operating and expect to incur additional,maintenance expense and significant costs associated with combining the operationsplanned increases in capital investments. The Evergy Companies' strategy also includes a different mix of Great Plains Energy and Evergy Kansas Central. Additional unanticipated costs may also be incurredcapital investments than has been pursued in the integration of the businesses of Great Plains Energy and Evergy Kansas Central.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 expectfrom recovering, or earning a return on, the merger to produce various benefits, including, among other things, operating efficienciesinvestments in those facilities that were prudent when the investments were originally made. This concept is known as a "stranded asset," and cost savings. However, achieving the anticipated benefits is subject to a numbergeneration retirements outside of uncertainties, including:

the ability to efficiently and effectively combine operations of the merged companies;
general market and economic conditions;
general competitive factorsthose contemplated in the marketplace;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
higher than expected costs required to achieve reduce the anticipated benefitsEvergy's Companies results of the merger.operations and financial position.
No assurance can be given that these benefitsthe Evergy Companies will be achieved or achievedsuccessful in implementing their strategy in a timely manner. Integration costs could have a material adverse impact on the results of the Evergy Companies,manner or at all, and a failure to achieve the anticipated benefits of the mergerdo 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. In addition, the Evergy Companies may encounter difficulties in integrating the operations of the companies, including inconsistencies in standards, systems and controls, and management's focus and resources may be diverted from ordinary business activities and opportunities in order to focus on integration efforts. Any of the foregoing could have a materialan adverse effectimpact on the Evergy Companies.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; estimates or statements by the investment community; the ability of the Evergy Companies to implement their strategic plan or to realize the expected synergies and other benefits from the merger;plan; the ability of Evergy to deploy capital; actions by regulators; and speculationstatements in the press or investment community about the Evergy Companies' strategy, earnings per share or growth prospects, financial condition or results of operations. IndividualsNegative 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 as activist shareholders and special interest groups, may also 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. GeneralIn 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, domestic and international market conditions and U.S. economic factors and political events unrelated to the performance of Evergy (including the EvergyCOVID-19 pandemic and the Russia-Ukraine conflict) may also affect Evergy's stock price. For these reasons, shareholders should not rely on historical trends in the price of Great Plains Energy or Evergy Kansas Central common stock to predict the future price of Evergy's common stock or its financial results.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.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:
Changes in electricity consumption could have a material adverse effect on Evergy's results of operations, financial position and cash flows can be materially affected by changes in electricity consumption.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 impacthave a material adverse effect on the results of operations, financial resultsposition and cash flows of the Evergy Companies in adverse ways.

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Companies.
Technological advances, energy efficiency and other energy conservation measures have reduced and will continue to reduce customer electricity consumption. The Evergy Companies generate electricity at central station power plants to achieve economies of scale and produce electricity at a competitive cost. Self-generation and distributed generation technologies, 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 generating or storing electricity through these technologies is more 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 the 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 due to sustained financial market disruptions, downturns or sluggishness in the economy or other factors may also adversely affect the results of operations, financial position and cash flows of the Evergy Companies.
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Weather is a major driver of the results of operations, financial position and cash flows of the Evergy Companies and the Evergy Companies are subject to risks associated with climate change.
Weather conditions directly influence the demand for and price of electricity. The Evergy Companies are significantly impacted by seasonality, and, 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 tornados, snow, fire, rain, flooding, drought and ice storms, can be destructive and cause outages and property damage that can result in increased expenses, lower revenues and additional capital restoration costs.  Storm reserves established by the Evergy Companies may be insufficient and rates may not be adjusted in a timely manner, or at all, to recover these costs. Additionally, because many of the Evergy Companies' generating stations utilize water for cooling, low water and flow levels can increase maintenance costs at these stations, result in limited power production and require modifications to plant operations.  High water conditions can also impair planned deliveries of fuel to generating stations or otherwise adversely impact the ability of the Evergy Companies to operate these stations. Climate change may produce more frequent or severe weather events, such as storms, droughts or floodsfloods. These events could lead to unforeseen changes in water supply quality and create additional costs related to water treatment and complying with environmental discharge requirements. Climate change events could also impact the economic health of Evergy'sthe Evergy Companies' service territories. An increase in the frequency or severity of extreme weather events or a deterioration in the economic health of Evergy'sthe Evergy Companies' service territories could have a material adverse effect on the results 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 reduced sales and require significant costs to respond to such efforts. These efforts could also result in the early retirement of generation facilities, which could result in stranded costs if regulators disallow recovery of investments that were prudent when originally made. Themade and included in rates. Evergy Companies are targetinghas a goal to achieve net-zero CO2 emissions by 2045 with an 80%interim goal of a 70% reduction of carbon CO2 emissions by 2050 from 2005 levels.levels by 2030. The trajectory and timing of reaching the net-zero goal could be impacted by variousare dependent on many external factors, including policy, legal or regulatory actions, a lackenabling technology developments, the reliability of technological advancements orthe power grid, availability of transmission capacity, supportive energy policies and regulations, and other reasons. Anyfactors. These external factors are outside of Evergy's control, and without these enabling factors Evergy cannot be confident in achieving its net-zero carbon reduction goal. In addition, 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.
New climate disclosure rules proposed by the SEC may increase the Evergy Companies' costs of compliance and adversely impact their business.
On March 21, 2022, the SEC proposed new rules relating to the disclosure of a range of climate-related risks. The Evergy Companies are currently assessing the proposed rule, but at this time they cannot predict the costs of implementation or any potential adverse impacts resulting from the rule. To the extent this rule is finalized as proposed, the Evergy Companies could incur increased costs relating to the assessment and disclosure of climate-related risks. The Evergy Companies may also face increased litigation risks related to disclosures made pursuant to the rule if finalized as proposed. In addition, enhanced climate disclosure requirements could accelerate the trend of certain stakeholders and lenders restricting or seeking more stringent conditions with respect to their investments in certain carbon-intensive sectors.
Operational Risks:
Operational risks may adversely affect the Evergy Companies.
The operation of electric generation, transmission, distribution and information systems involves many risks, including breakdown or failure of equipment; aging infrastructure; operatoremployee 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 operation of

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information systems; transmission scheduling constraints; and catastrophic events such as fires, floods, droughts,
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explosions, terrorism or acts of war, severe weather, pandemics or other similar occurrences. Many of the Evergy Companies' generation, transmission and distribution resources are aged, which increases the risk of unplanned outages, reduced generation output and higher maintenance expense.  Any equipment or system outage or constraint can, among other things, reduce sales, increase costs and affect the ability to meet regulatory service metrics, customer expectations and regulatory reliability and security requirements.
The Evergy Companies have general liability and property insurance to cover a portion of their facilities, but such policies do not cover transmission or distribution systems, 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 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 revenues or increase costs, or both, and may materially affect the results of operations, financial position and cash flows of the Evergy Companies.
Physical and cybersecurity breaches, criminal activity, terrorist attacks, acts of war and other disruptions to facilities or information technology infrastructure could interfere with operations, expose the Evergy Companies or their customers or employees to a risk of loss, expose the Evergy Companies to legal or regulatory liability and cause reputational and other harm.
The Evergy Companies rely upon information technology networks 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, supply chain functions and the invoicing and collection 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 and personal information belonging to customers and employees.
The Evergy Companies' information technology networks and infrastructure, as well as the networks and infrastructure 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 one or more employees, contractors or service providers; unintended consequences related to software or hardware upgrades;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. events; or criminal activity, terrorist attacks or acts of war. Driven in part by the COVID-19 pandemic, the Evergy Companies have adopted the use of technology to enable remote-working arrangements, which may increase or expose previously unknown vulnerabilities. Public reports have 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 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; and result in legal claims or proceedings, liability or regulatory penalties,penalties; damage the Evergy Companies' reputationreputation; or otherwise harm their business.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 vulnerabilities or that unauthorized access or error will be identified and remediated.
The Evergy Companies are subject to laws and rules issued by multiple government agencies concerning cybersecurity and safeguarding and maintaining the confidentiality of their security, customer and business information. For example, NERC has issued comprehensive regulations and standards surrounding the security of the bulk power systemssystem, including both
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physical and iscybersecurity, and continually inevaluates the process of developing updatednecessity for updates and new requirements with which the utility industryEvergy Companies must 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 critical 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 ofby other utilities with applicablesubject to similar regulations or the

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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 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, including terrorist attacks and acts of war, may increase the likelihood 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. Furthermore, although the Evergy Companies maintain information security risk insurance coverage, or result in a decline in the U.S. economy.such insurance may not be adequate to cover any associated losses. Any of the foregoing could have a material adverse impact on the Evergy Companies' results of operations, or financial results.position and cash flows.
The cost and schedule of capital projects may materially change and expected performance may not be achieved.
The Evergy Companies' business is capital intensive and includes significant construction projects.  The risks of any capital project include: 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 to be inaccurate; risks associated with the capital and credit markets to fund projects; delays in receiving, or failure to receive, necessary permits, approvals and 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 labor or materials, including commodities such as steel, copper and aluminum that may be subject to uncertain or increased tariffs; inclement weather; new or changed laws, regulations and requirements, including environmental and health and safety laws, 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 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 costs of capital projects, delay the in-service dates of projects, adversely affect the performance of the projects and require the purchase of electricity on the wholesale market, at potentially more expensive prices, until the projects are completed.  These risks may significantly affect the Evergy Companies' results of operations, financial position and cash flows.
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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.
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 labor agreements with each of these unions that expire at varying times in 2024 through 2026. A failure to successfully negotiate these collective bargaining agreements could result in a labor disruption and have a significant adverse impact on the Evergy Companies' operations and results of operations.
The 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 attract and retain personnel that are qualified to implement 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 operations, financial position and cash flows of the Evergy Companies.
The Evergy Companies are exposed to risks associated with the ownership and operation of a nuclear generating unit, which could adversely impact the Evergy Companies' business and financial results.
Evergy indirectly owns 94% of Wolf Creek, with Evergy Kansas South and Evergy Metro each owning 47% of the nuclear plant.  Such ownership exposes the Evergy Companies to various risks unique to the nuclear industry. Damages, decommissioning or other costs could exceed the Evergy Companies' ability to recover such costs through rates or other mechanisms such as decommissioning trust assets or through external insurance coverage, including statutorily required nuclear incident insurance. 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. Such events could increase Wolf Creek's costs and impact the financial results of the Evergy Companies or result in a shutdown of Wolf Creek.
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 the results of operations, financial position and cash flows of the Evergy Companies in the event replacement power, damages, and other costs exceed or are not recovered through rates, insurance or insurance.decommissioning trust assets.  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 increasesmay increase the risk of unplanned outages and resultsmay result in higher maintenance costs.
On an annual basis, Evergy Kansas South and Evergy Metro are required to contribute money to tax-qualified trusts that were established to pay for decommissioning costs at the end of the unit's life. The amount of contributions varies depending on estimates of decommissioning expenses and projected return on trust assets. If the actual return on trust assets is below the projected level or actual decommissioning costs are higher than estimated, Evergy

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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.
The 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
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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, Evergy 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.
In 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 Wolf Creek could occur if the supplier is not able to perform under its contracts with Wolf Creek. Switching to another supplier could take an extended amount of time and would require NRC approval. An extended outage at Wolf Creek could affect the amount of Wolf Creek investment included in customer rates and could have a material impact on the Evergy Companies' financial results.
The structure of the regional power market in which the Evergy Companies operate could have an adverse effect on their results of operations, financial position and cash flows.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West are members of the SPP regional transmission organization, and each has transferred operational authority (but not ownership) of their transmission facilities to the SPP. The SPP's Integrated Marketplace 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 thatrules 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,dispatched, 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. Evergy Kansas Central, Evergy Metrosell and Evergy Missouri West acquire TCRs for the purpose of hedging against transmission congestion charges. There is a risk that the entities could incorrectly model the amount of TCRs needed, or that the TCRs acquired could be ineffective in hedging against transmission congestion charges, either oftransmit 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 costs and revenues of the 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 parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses.  The outcome of these matters cannot be determined, nor, in many cases, can the liability that could potentially result from each case be reasonably estimated.  The liability that the Evergy Companies may incur with respect to any of these cases may be in excess of amounts currently accrued and insured against with respect to such matters and could adversely impact the financial results for the Evergy Companies.
Environmental, Social and Governance Risks:
The Evergy Companies are subject to risks relating to environmental, social and governance (ESG) matters that could adversely affect their reputation, business, financial condition and results of operations.
The Evergy Companies are subject to a variety of risks, including reputational risk, associated with ESG issues. The public holds diverse and often conflicting views on ESG topics. The Evergy Companies have multiple stakeholders, including their shareholders, customers, associates, federal and state regulatory authorities and the communities in which they operate, and these stakeholders will often have differing priorities and expectations regarding ESG issues. If the Evergy Companies take action in conflict with one or another of those stakeholders' expectations, they could experience an increase in customer complaints, a loss of business or reputational harm. The Evergy Companies could also face negative publicity or reputational harm based on the identity of those with
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whom they choose to do business. Any adverse publicity in connection with ESG issues could damage their reputation, ability to attract new customers and retain employees, compete effectively and grow their business.
In addition, proxy advisory firms and certain institutional investors who manage investments in public companies are increasingly integrating ESG factors into their investment analysis. The consideration of ESG factors in making investment and voting decisions is relatively new. Accordingly, the frameworks and methods for assessing ESG policies are not fully developed, vary considerably among the investment community and will likely continue to evolve over time. Moreover, the subjective nature of methods used by various stakeholders to assess a company with respect to ESG criteria could result in erroneous perceptions or a misrepresentation of the Evergy Companies' actual ESG policies and practices. Organizations that provide ratings information to investors on ESG matters may also assign unfavorable ratings to the Evergy Companies. If the Evergy Companies fail to comply with specific ESG-related investor or stakeholder expectations and standards, or to provide the disclosure relating to ESG issues that any third parties may believe is necessary or appropriate (regardless of whether there is a legal requirement to do so), their reputation, business, financial condition and/or results of operations could be negatively impacted.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.

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ITEM 2. PROPERTIES
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 Plains  Kansas2009Wind99
—
—
99
—
 99
Flat Ridge  Kansas2009Wind50
—
—
50
50
(e)100
Western Plains  Kansas2017Wind281
—
—
281
—
 281
Meridian Way  Kansas2008Wind—
—
—
—
96
(e)96
Ironwood  Kansas2012Wind—
—
—
—
168
(e)168
Post Rock  Kansas2012Wind—
—
—
—
201
(e)201
Cedar Bluff  Kansas2015Wind—
—
—
—
199
(e)199
Kay Wind  Oklahoma2015Wind—
—
—
—
200
(e)200
Ninnescah  Kansas2016Wind—
—
—
—
208
(e)208
Kingman 1  Kansas2016Wind—
—
—
—
103
(e)103
Kingman 2  Kansas2016Wind—
—
—
—
103
(e)103
Rolling Meadows  Kansas2010Landfill Gas—
—
—
—
6
(e)6
Hutch Solar  Kansas2017Solar—
—
—
—
1
(e)1
Cimarron II  Kansas2012Wind—
—
—
—
131
(f)131
Spearville 1  Kansas2006Wind—
101
—
101
—
 101
Spearville 2  Kansas2010Wind—
48
—
48
—
 48
Spearville 3  Kansas2012Wind—
—
—
—
101
(f)101
Gray County  Kansas2001Wind—
—
—
—
110
(g)110
Ensign  Kansas2012Wind—
—
—
—
99
(g)99
Waverly  Kansas2016Wind—
—
—
—
200
(f)200
Slate Creek  Kansas2015Wind—
—
—
—
150
(f)150
Rock Creek  Missouri2017Wind—
—
—
—
300
(h)300
Osborn  Missouri2016Wind—
—
—
—
201
(h)201
Pratt  Kansas2018Wind—
—
—
—
243
(h)243
Greenwood Solar  Missouri2016Solar—
—
3
3
—
 3
Prairie Queen  Kansas2019Wind—
—
—
—
200
(h)200
CNPPID (NE) - Hydro  Nebraska1941Hydro—
—
—
—
60
(f)60
St Joseph Landfill  Missouri2012Landfill Gas—
—
2
2
—
 2
Total Renewable Generation:    430
149
5
584
3,130

3,714
Nuclear:            
Wolf Creek1(b)Kansas1985Uranium552
552
—
1,104
—
 1,104
Total Nuclear:     552
552
—
1,104
—

1,104

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 
23
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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
Nuclear:
Wolf Creek1(h)Kansas1985Uranium553 553 — 1,106 — 1,106 
Total Nuclear:553 553 — 1,106 — 1,106 
Coal:
Jeffrey Energy CenterKansas
Steam Turbines1-3(h)1978, 1980 &1983Coal2,007 — 175 2,182 — 2,182 
Lawrence Energy CenterKansas
Steam Turbines4 & 51960, 1971Coal485 — — 485 — 485 
La CygneKansas
Steam Turbines1 & 2(h)(i)1973, 1977Coal713 713 — 1,426 — 1,426 
IatanMissouri
Steam Turbines1 & 2(h)1980, 2010Coal— 983 288 1,271 — 1,271 
HawthornMissouri
Steam Turbines5(j)1969Coal— 552 — 552 — 552 
Total Coal:3,205 2,248 463 5,916 — 5,916 
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 
41975Oil70— — 70 — 70 
Spring Creek Energy CenterOklahoma
Combustion Turbines1 - 42001Natural Gas281— — 281 — 281 
State LineMissouri
Combined Cycle2-1, 2-2 & 2-3(h)2001Natural Gas205— — 205 — 205 
HawthornMissouri
Combined Cycle6/92000Natural Gas— 235 — 235 — 235 
Combustion Turbines7 & 82000Natural Gas— 153 — 153 — 153 
30
      
Unit Capability (MW) By Owner(a)
StationUnit No.LocationYear CompletedFuelEvergy Kansas CentralEvergy MetroEvergy Missouri WestTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased Power
Coal:            
Jeffrey Energy Center  Kansas         
Steam Turbines1-3(b) 1978, 1980 &1983Coal2,011
—
175
2,186
—
 2,186
Lawrence Energy Center  Kansas         
Steam Turbines4 & 5  1960, 1971Coal486
—
—
486
—
 486
La Cygne  Kansas         
Steam Turbines1 & 2(b)(c) 1973, 1977Coal699
699
—
1,398
—
 1,398
Iatan  Missouri         
Steam Turbines1 & 2(b) 1980, 2010Coal—
981
288
1,269
—
 1,269
Hawthorn  Missouri         
Steam Turbines5(d) 1969Coal—
564
—
564
—
 564
Total Coal:     3,196
2,244
463
5,903
—

5,903
Gas and Oil:            
Emporia Energy Center  Kansas         
Combustion Turbines1 - 7  2008 - 2009Natural Gas645
—
—
645
—
 645
Gordon Evans Energy Center  Kansas         
Combustion Turbines1 - 3  2000 - 2001Natural Gas289
—
—
289
—
 289
Hutchinson Energy Center  Kansas         
Combustion Turbines1 - 3  1974Natural Gas165
—
—
165
—
 165
 4  1975Oil58
—
—
58
—
 58
Spring Creek Energy Center  Oklahoma         
Combustion Turbines1 - 4  2001Natural Gas272
—
—
272
—
 272
State Line  Missouri         
Combined Cycle2-1, 2-2 & 2-3(b) 2001Natural Gas196
—
—
196
—
 196
Hawthorn  Missouri         
Combined Cycle6/9  2000Natural Gas—
225
—
225
—
 225
Combustion Turbines7 & 8  2000Natural Gas—
153
—
153
—
 153
West Gardner  Kansas         
Combustion Turbines1 - 4  2003Natural Gas—
313
—
313
—
 313
Osawatomie  Kansas         
Combustion Turbines1  2003Natural Gas—
76
—
76
—
 76

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Unit Capability (MW) By Owner(a)
Unit Capability (MW) By Owner(a)
StationUnit No.LocationYear CompletedFuelEvergy Kansas CentralEvergy MetroEvergy Missouri WestTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased PowerStationUnit No.LocationYear CompletedFuelEvergy Kansas CentralEvergy MetroEvergy Missouri WestTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased Power
Gas and Oil (continued):    Gas and Oil (continued):
West GardnerWest GardnerKansas
Combustion TurbinesCombustion Turbines1 - 42003Natural Gas— 309 — 309 — 309 
OsawatomieOsawatomieKansas
Combustion TurbinesCombustion Turbines12003Natural Gas— 75 — 75 — 75 
Ralph Green Missouri    Ralph GreenMissouri
Combustion Turbines3 1981Natural Gas—
—
69
69
—
 69
Combustion Turbines31981Natural Gas— — 69 69 — 69 
Nevada Missouri    NevadaMissouri
Combustion Turbines1 1974Oil—
—
19
19
—
 19
Combustion Turbines11974Oil— — 16 16 — 16 
Lake Road Missouri    Lake RoadMissouri
Combustion Turbines1 - 3 1951, 1958 & 1962Natural Gas—
—
42
42
—
 42
Combustion Turbines1 - 31951, 1958 & 1962Natural Gas— — 49 49 — 49 
5 - 7 1974, 1989 & 1990Oil—
—
104
104
—
 104
5 - 71974, 1989 & 1990Oil— — 88 88 — 88 
Steam Turbines4 1967Natural Gas—
—
97
97
—
 97
Steam Turbines41967Natural Gas— — 95 95 — 95 
Northeast Missouri    NortheastMissouri
Combustion Turbines11 - 18 1972 - 1977Oil—
416
—
416
—
 416
Combustion Turbines11 - 181972 - 1977Oil— 382 — 382 — 382 
Black Start Unit19 1985Oil—
2
—
2
—
 2
South Harper Missouri    South HarperMissouri
Combustion Turbines1 - 3 2005Natural Gas—
—
313
313
—
 313
Combustion Turbines1 - 32005Natural Gas— — 313 313 — 313 
Greenwood Energy Center Missouri    Greenwood Energy CenterMissouri
Combustion Turbines1 - 4 1975 - 1979Natural Gas—
—
237
237
—
 237
Combustion Turbines1 - 41975 - 1979Natural Gas— — 249 249 — 249 
Crossroads Energy Center Mississippi    Crossroads Energy CenterMississippi
Combustion Turbines1 - 4 2002Natural Gas—
—
297
297
—
 297
Combustion Turbines1 - 42002Natural Gas— — 295 295 — 295 
Total Gas and Oil 1,625
1,185
1,178
3,988
—

3,988
Total Gas and Oil1,670 1,154 1,174 3,998 — 3,998 
Total 5,803
4,130
1,646
11,579
3,130
 14,709
Total5,858 4,104 1,642 11,604 3,820 15,424 
(a) Capability (except for wind generating facilities) represents estimated 20202023 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 1,404996 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.
(c) (i) In 1987, Evergy Kansas South entered into a sale-leaseback transaction involving its 50% interest in the La Cygne Unit 2. Evergy and Evergy Kansas Central consolidate the leasing entity as a variable interest entity (VIE). See Note 19 to the consolidated financial statements for more information.
(d) (j) 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.
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(e) Table of ContentsEvergy Kansas Central renewable purchased power agreement.
(f) Evergy Metro renewable purchased power agreement.
(g) Evergy Missouri West renewable purchased power agreement.
(h) Evergy Metro and Evergy Missouri West renewable purchased power agreement.
Transmission and Distribution Resources
Evergy's electric transmission system interconnects with systems of other utilities for reliability and to permit wholesale transactions with other electricity suppliers. Evergy has approximately 10,100 circuit miles of

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transmission lines, 39,70044,900 circuit miles of overhead distribution lines and 12,70015,800 circuit miles of underground distribution lines in Missouri and Kansas. Evergy has all material franchise rights necessary to sell electricity within its retail service territory. Evergy'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.
General
Evergy's generating plants are located on property owned (or co-owned) by the Evergy Companies, except for certain facilities that are located on easements or are contractually controlled. Evergy's headquarters, service centers, electric substations and a portion of its transmission and distribution systems are located on property owned or leased by Evergy. 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. Evergy 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. Evergy's headquarters are located in leased office space.
Substantially all of the fixed property and franchises of 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 mortgage indentures pursuant to which bonds have been issued and are outstanding. See Note 1312 to the consolidated financial statements for more information.
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 54 and 15 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
PART II
ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
EVERGY, INC.
Evergy's common stock is listed on the New YorkNasdaq Stock ExchangeMarket LLC under the symbol "EVRG." At February 24, 2020,17, 2023, Evergy's common stock was held by 22,69517,419 shareholders of record.
Performance Graph
The following graph compares the performance of Evergy's common stock during the period that began on June 5, 2018 (the first day that Evergy's common stock traded), and ended on December 31, 2019,2022, 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 indices at the beginning of the period and a reinvestment of dividends paid on such investments throughout the period.
chart-61c7d1b94ba7ff7e37b.jpg



evrg-20221231_g2.jpg
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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 Securities Exchange Act of 1934, as amended (Exchange Act), during the three months ended December 31, 2019.2022.
Issuer Purchases of Equity SecuritiesIssuer Purchases of Equity SecuritiesIssuer 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(a)
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 —
 —
16,099,628
October 1 - 31— — — — 
November 1 - 30 628,929
(b)628,929
15,470,699
November 1 - 30427 $61.25— — 
December 1 - 31 635,720
(b)635,720
14,834,979
December 1 - 3111,217 $63.26— — 
Total 1,264,649
 1,264,649
14,834,979
Total11,644$63.18— — 
(a) In July 2018, theRepresents shares Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock with no expiration date. See Note 18purchased for withholding taxes related to the consolidated financial statements for additional information on Evergy's commonvesting of restricted stock repurchase program.
(b) In November 2019, a portion of the September 2019 accelerated share repurchase (ASR) agreement was settled, which resulted in the delivery of 628,929 additional shares of Evergy commonor restricted stock at no additional cost. The remainder of the September 2019 ASR agreement was settled in December 2019, which resulted in the delivery of 635,720 additional shares of Evergy common stock at no additional cost. In total, 7,815,204 shares were delivered under the September 2019 ASR agreement at an average price paid per share of $64.03.units.
Dividend Restrictions
For information regarding dividend restrictions, see Note 18 to the consolidated financial statements.
ITEM 6. SELECTED FINANCIAL DATA
Not applicable.
Year Ended December 31 2019 
2018(b)
 
2017(b)
 
2016(b)
 
2015(b)
Evergy (dollars in millions except per share amounts)
Operating revenues $5,148
 $4,276
 $2,571
 $2,562
 $2,459
Net income $686
 $546
 $337
 $361
 $302
Net income attributable to Evergy, Inc. $670
 $536
 $324
 $347
 $292
Basic earnings per common share $2.80
 $2.50
 $2.27
 $2.43
 $2.11
Diluted earnings per common share $2.79
 $2.50
 $2.27
 $2.43
 $2.09
Total assets at year end $25,976
 $25,598
 $11,624
 $11,487
 $10,706
Total long-term obligations at year end (a)
 $9,200
 $7,472
 $3,846
 $3,699
 $3,379
Cash dividends per common share $1.93
 $1.735
 $1.60
 $1.52
 $1.44
(a) Includes long-term debt, current maturities of long-term debt, finance leases, operating leases, long-term debt of VIEs and current maturities of long-term debt of VIEs. Obligations related to operating leases are only included beginning in 2019 due to Evergy's adoption of Topic 842, Leases. See Note 1 to the consolidated financial statements for additional information.
(b) On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results from the date of the closing of the merger and thereafter. Evergy amounts for 2017, 2016 and 2015 reflect the results of operation and financial position of Evergy Kansas Central as the accounting acquirer in the merger transaction.

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ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following combined Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)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 20192022 and 20182021 items and year-to-year comparisons between 20192022 and 2018.2021. Discussions of 20172020 items and year-to-year comparisons between 20182021 and 20172020 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, 2018.2021. Year-to-year comparisons of Evergy's gross margin (GAAP) and Evergy's utility gross margin (non-GAAP) between 2021 and 2020 can be found in the Evergy Results of Operations section within this MD&A.
EVERGY, INC.
EXECUTIVE SUMMARY
Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below. In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.
•Evergy Kansas Central formerly known as Westar Energy, Inc., 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 operations, Evergy Kansas South, formerly known as Kansas Gas and Electric Company.South.
•Evergy Metro formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
•Evergy Missouri West formerly known as KCP&L Greater Missouri Operations Company, is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
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•Evergy Transmission Company formerly known as GPE Transmission Holding Company, LLC, 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 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 Berkshire 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.
Since the rebranding in September 2019, Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West have been conductingconduct business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 14,70015,400 MWs of owned generating capacity and renewable purchased power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.61.7 million customers in the states of Kansas and Missouri. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).

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Strategy
Evergy expects to continue operating its integrated utilities within the currently existing regulatory frameworks.frameworks and is focused on empowering a better future for its customers, communities, employees and shareholders. The core tenets of Evergy's objectivesstrategy are as follows:
•Affordability - operating the business cost-effectively and investing in technology and infrastructure to deliver valuekeep rates affordable and improve regional rate competitiveness; mitigating fuel and purchased power volatility by investing in a diverse generation fleet;
•Reliability - targeting transmission and distribution infrastructure investment to shareholders through earningssupport reliability, flexibility, public safety, and dividend growth; serve customersresiliency; deploying new technology to improve preventive maintenance and communities with cost-effective, reliablecustomer restoration times; and
•Sustainability - investing at sustainable capital expenditure levels to maintain reliability and customer affordability for the long-term and balancing clean energy;energy investment to continue fuel diversification and maintainenable a rewarding and challenging work environment for employees. responsible generation portfolio transition.
Significant elements of Evergy's strategyplan to achieve theseits strategic objectives include:
•targeting ongoing reductions of operating and maintenance expense consistent with savings already achieved since the realization2018 merger of a totalEvergy Kansas Central and Great Plains Energy;
•targeting approximately $11.6 billion of expected base capital investments through 2027 including new generation of approximately $595 million of potential net savings over the first five years of operation of the combined company,$2.1 billion which formed in June 2018, resulting from synergies that areis expected to be created asprimarily renewable generation. See "Liquidity and Capital Resources; Capital Expenditures", for further information regarding Evergy's projected capital expenditures through 2027; and
•targeting a result of the merger;
anticipated rate base investment of approximately $7.6 billion from 2020 through 2024; and
the70% reduction of carbonCO2 emissions by 80%2030 (from 2005 levels) and net-zero by 2050 from 2005 levels2045 through the continued growth of Evergy's renewable energy portfolio and the retirement of older and less efficient fossil fuel plants. See "Transforming"Transitioning Evergy's Generation Fleet" in Part I, Item 1,1., Business, for additional information.
In March 2020, the Evergy Board announced the creation of a Strategic Review & Operations Committee that will explore ways to enhance long-term shareholder value (taking into account applicable legal and regulatory requirements and any other relevant considerations), including through a potential strategic combination or an enhanced long-term standalone operating plan and strategy. The committee is expected to complete its review and make a recommendation to Evergy's Board in the first half of 2020.
See "Cautionary Statements Regarding Certain Forward-Looking Information" and Part I, Item 1A, Risk Factors, for additional information.
Common Stock Repurchase Program
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Sibley Station
Evergy Missouri West retired its Sibley Station in 2018 and the retirement of Sibley Unit 3 met the criteria to be considered an abandonment. Evergy has classified the remaining net book value of Sibley Unit 3 as retired generation facilities within regulatory assets on its consolidated balance sheet. In October 2019, the MPSC issued an AAO requiring Evergy Missouri West to defer to a regulatory liability 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 its retirement in November 2018 to be considered in Evergy Missouri West's 2022 rate case.
In July 2018,January 2022, Evergy Missouri West filed an application with the Evergy Board authorized the repurchase of upMPSC requesting an increase to 60 million shares of Evergy's common stock. Evergy has utilized various methods to effectuate the share repurchase program since its authorization,retail revenues including the repurchasefull return of shares through ASR agreements and open market transactions. For 2019,return on its unrecovered investment related to the 2018 retirement of Sibley Station. In December 2022, the MPSC issued an amended final rate order which addressed the treatment of Evergy had total repurchasesMissouri West's unrecovered investment in Sibley Station. The order determined that Evergy Missouri West will be allowed to collect $182.3 million ($173.6 million attributable to Sibley Unit 3) from customers over a period of common stockeight years as a recovery of $1,628.7 millionits existing investment in Sibley Station but will not be allowed to collect the return on its unrecovered investment in Sibley Station. The order also required Evergy Missouri West to refund to customers all revenues collected from customers for return on investment, non-fuel operations and had repurchased 28.8 million shares under the repurchase program. Since the startmaintenance costs and other costs associated with Sibley Station following its retirement in November 2018 over a period of four years.
As a result of the repurchase programamended final order, Evergy recorded a $68.0 million reduction to operating revenues on its consolidated statements of comprehensive income in August2022 and a corresponding increase to its Sibley AAO regulatory liability for revenues collected from customers for return on investment in Sibley Station since December 2018, Evergy has made total repurchaseswhich had not previously been recorded as they were not determined to be probable of common stockrefund, and a $26.7 million impairment loss on Sibley Unit 3. As of $2,671.0December 31, 2022, the remaining net book value of Sibley Unit 3 was $146.3 million, and has repurchased 45.2 million shares under the repurchase program. Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committeewhich is representative of the Evergy Board conducts$173.6 million unrecovered investment in Sibley Unit 3 determined by the MPSC in its reviewDecember 2022 order less the 2022 impairment loss recorded and other amortization expense. As of ways to enhance long-term shareholder value, which is expected to concludeDecember 31, 2022, Evergy's Sibley AAO regulatory liability was $108.0 million. See "Abandoned Plant" in the first half of 2020.
See Note18 1 and "Evergy Missouri West Other Proceedings" in Note 4 to the consolidated financial statements for more information regarding Evergy's common stock repurchase program.additional information.
Great Plains EnergyEvergy Kansas Central FERC Transmission Formula Rate (TFR) Refund
In December 2022, FERC issued an order upholding in part, and denying in part, a formal challenge of Evergy Kansas Central's TFR by certain customers. As a result of this order, Evergy and Evergy Kansas Central Merger
Evergy was incorporated in 2017 as Monarch Energy,recorded a wholly-owned subsidiary$32.8 million decrease to operating revenues on their consolidated statements of Great Plains Energy. Priorincome and comprehensive income for 2022 for the deferral to a regulatory liability of the estimated refund of TFR revenue over-collections related to the closingcalculation of the merger transactions, Monarch Energy changed its name to Evergy and did not conduct any business activities other than those requiredKansas Central's capital structure for its formation and matters contemplated by the Amended Merger Agreement. On June 4,rate years 2018 in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into- 2022. Evergy Kansas Central with Evergy Kansas Central survivingcurrently expects that the merger. These merger transactions resulted in Evergy becoming the parent entity of Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West. As a resultrefund of the closing2020, 2021 and 2022 over-collections will occur as part of the merger transactions, each outstanding share of Great Plains Energy common stock was converted into 0.5981 shares of Evergy common stock, resulting in the issuance of 128.9 million shares. Additionally, each outstanding share of Evergy Kansas Central common stock was converted into 1 share of Evergy common stock.
Evergy Kansas Central was determinedits 2023 TFR, subject to be the accounting acquirer in the merger and thus, the predecessor of Evergy. Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy. The results of Great Plains

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Energy's direct subsidiaries have been included in Evergy's results of operations from June 4, 2018, the date of the closing of the merger, and thereafter.
an approval by FERC. See Note 24 to the consolidated financial statements for more informationadditional information.
Evergy Missouri West February 2021 Winter Weather Event Securitization
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). See Note 1 to the consolidated financial statements for additional information. In March 2022, Evergy Missouri West filed a petition for a financing order with the MPSC requesting authorization to finance its extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather event, including carrying costs, through the issuance of securitized bonds. Evergy Missouri West requested to repay the securitized bonds and collect the related amounts from customers over a period of approximately 15 years from the date of issuance of the securitized bonds.
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In November 2022, the MPSC issued a revised financing order authorizing Evergy Missouri West to issue securitized bonds to recover its extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather event. As part of the order, the MPSC found that Evergy Missouri West's costs were prudently incurred, that it should only be allowed to recover 95% of its extraordinary fuel and purchased power costs consistent with the 5% sharing provision of its fuel recovery mechanism, that it should be allowed to recover carrying costs incurred since February 2021 at Evergy Missouri West's long-term debt rate of 5.06% and approved a 15 year repayment period for the bonds with a 17 year legal maturity. In the third quarter of 2022, Evergy Missouri West recorded an increase of $15.0 million to its February 2021 winter weather event regulatory asset for the recovery of carrying charges granted in the MPSC's financing order. As of December 31, 2022 and 2021, the value of Evergy Missouri West's February 2021 winter weather event regulatory asset was $309.0 million and $281.6 million, respectively. Evergy Missouri West will continue to record carrying charges on its February 2021 winter weather event regulatory asset until it issues the securitized bonds.
In January 2023, the OPC filed an appeal with the Missouri Court of Appeals, Western District, challenging the financing order regarding the merger.treatment of income tax deductions, carrying costs and discount rates related to the financing of the extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather event. A final nonappealable financing order is required prior to the issuance of securitized bonds. A decision by the Missouri Court of Appeals, Western District, is currently expected in the second half of 2023, though the timeline for the decision is uncertain.
Inflation Reduction Act
In August 2022, the Inflation Reduction Act of 2022 (IRA) was signed into law by President Biden. The IRA extends tax credits for renewable energy technologies intended to reduce the impacts of climate change. The Production Tax Credit (PTC) and Investment Tax Credit (ITC) have been extended or reinstated for certain renewable energy projects beginning before January 1, 2025. The definition of property eligible for the ITC has been expanded to include standalone energy storage with a capacity of at least 5kWh. Both tax credits make a bonus credit available if certain prevailing wage, apprenticeship and domestic content requirements are met. The IRA modified and extended the Alternative Fuel Refueling Property Credit to include property placed in service before December 31, 2032 and it also removes the limitation per location. The IRA created a Nuclear Power Production Tax Credit for taxable years beginning on or after January 1, 2024 through December 31, 2032. For taxable years beginning after December 31, 2022, certain renewable energy tax credits may be transferred to third parties. The IRA also implemented a new 15% corporate minimum tax based on modified GAAP net income and a 1% excise tax on stock buybacks.
The Evergy Companies anticipate utilizing the PTC and ITC for future renewable generation projects and are evaluating the Nuclear Power Production Tax Credit in connection with operations at Wolf Creek. The new corporate minimum tax and excise tax on stock buybacks are not expected to have a material impact on the Evergy Companies' operations or consolidated financial results and the Evergy Companies continue to evaluate the remaining IRA provisions for the effect on their future financial results.
Missouri Property Tax Tracker
In June 2022, Missouri Senate Bill (S.B.) 745 was signed into law by the Governor of Missouri and became effective in August 2022. Among other items, S.B. 745 includes a provision requiring Missouri electric utilities to defer to a regulatory asset or regulatory liability, as appropriate, any difference between state or local property tax expenses incurred and the amounts included in rates. Any amounts deferred to a regulatory asset or liability under this provision would be included in the electric utility's revenue requirement in subsequent rate cases and recovered over a reasonable period of time to be determined by the MPSC. Evergy Metro and Evergy Missouri West began deferring the amounts associated with S.B. 745 in the third quarter of 2022.
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Renewable Generation Investment
In August 2022, Evergy Missouri West entered into an agreement with a renewable energy development company to purchase for approximately $250 million an operational wind farm located in the state of Oklahoma with a generating capacity of approximately 199 MW. The purchase is subject to regulatory approvals and closing conditions, including the granting of a Certificate of Convenience and Necessity (CCN) by the MPSC. In January 2023, the MPSC staff recommended the MPSC reject Evergy Missouri West's application for a CCN and allow it to file a new application with updated economic analyses of the renewable generation investment or alternatively extend the procedural schedule to allow the MPSC staff time to evaluate the current economic analyses prepared by Evergy Missouri West. A final decision by the MPSC is expected in the first half of 2023.
Regulatory Proceedings
See Note 54 to the consolidated financial statements for information regarding regulatory proceedings.
Wolf Creek Refueling Outage
Wolf Creek's most recent refueling outage began in October 2022 and the unit returned to service in November 2022. Wolf Creek's next refueling outage is planned to begin in the first quarter of 2024.
Earnings Overview
The following table summarizes Evergy's net income and diluted earnings per share (EPS).
2022Change2021
(millions, except per share amounts)
Net income attributable to Evergy, Inc.$752.7 $(127.0)$879.7 
Earnings per common share, diluted3.27 (0.56)3.83 
 2019 2018 Change
 (millions, except per share amounts)
Net income attributable to Evergy, Inc.$669.9
 $535.8
 $134.1
Earnings per common share, diluted2.79
 2.50
 0.29
Net income attributable to Evergy, Inc. increaseddecreased in 20192022, compared to 2018,2021, primarily due to non-regulated energy marketing margins related to the February 2021 winter weather event, an impairment loss and other regulatory disallowances related to Evergy Missouri West's and Evergy Metro's final rate order received from the MPSC in December 2022, lower realized and unrealized gains from various equity investments, higher depreciation expense, higher interest expense, the ordered refund to customers of certain transmission revenues and the recording of an estimated refund obligation to customers related to Evergy Metro's Earnings Review and Sharing Plan (ERSP); partially offset by higher retail sales in 2022 driven by favorable weather and higher weather-normalized demand, lower income tax expense, higher transmission revenue and higher interest income.
Diluted EPS decreased in 2022, compared to 2021, primarily due to the inclusion of Evergy Metro's and Evergy Missouri West's earnings in the first five months of 2019, merger-related costs and reductions of revenue for customer bill credits incurred in June 2018 following the consummation of the merger, lower operating and maintenance expenses at fossil-fuel generating units and lower administrative and general expenses, partially offset by lower retail sales driven by unfavorable weather and higher depreciation expense.
Diluted EPS increased in 2019 compared to 2018, primarily due to the increasedecrease in net income attributable to Evergy, Inc. discussed above, partially offset by a higher number of diluted weighted average common shares outstanding in 2019, which diluted EPS by $0.34 for 2019.above.
For additional information regarding the change in net income, refer to the Evergy Results of Operations section within this MD&A.
Non-GAAP Measures
Evergy Utility Gross Margin (non-GAAP)
Utility gross margin (non-GAAP) is a financial measure that is not calculated in accordance with GAAP.  Utility gross margin (non-GAAP), as used by the Evergy Companies, is defined as operating revenues less fuel and purchased power costs and amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power 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 with 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 SPP network transmission costs are mostly reflected in the prices charged to customers with minimal impact on net income. The Evergy Companies' definition of utility gross margin (non-GAAP) may differ from similar terms used by other companies.
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Utility gross margin (non-GAAP) is intended to aid an investor's overall understanding of results. Management believes that utility gross margin (non-GAAP) provides a meaningful basis for evaluating the Evergy Companies' operations across periods because utility gross margin (non-GAAP) excludes the revenue effect of fluctuations in fuel and purchased power costs and SPP network transmission costs.  Utility gross margin (non-GAAP) is used internally to measure performance against budget and in reports for management and Evergy's Board of Directors (Evergy Board).  Utility gross margin (non-GAAP) should be viewed as a supplement to, and not a substitute for, gross margin, which is the most directly comparable financial measure prepared in accordance with GAAP. Gross margin under GAAP is defined as the excess of sales over cost of goods sold.
Utility gross margin (non-GAAP) differs from the GAAP definition of gross margin due to the exclusion of operating and maintenance expenses determined to be directly attributable to revenue-producing activities, depreciation and amortization and taxes other than income tax. See the Evergy Companies' Results of Operations for a reconciliation of utility gross margin (non-GAAP) to gross margin, the most comparable GAAP measure.
Adjusted Earnings (non-GAAP) and Adjusted EPS (non-GAAP)
Effective in the third quarter of 2022, the calculation of adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) excludes the revenues collected from customers for the return on investment of the retired Sibley Station in the current period and the 2022 deferral of the cumulative amount of revenues collected since December 2018 to be refunded to customers. See "Sibley Station" within this Executive Summary for additional information. Effective in the fourth quarter of 2022, the calculation of adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) excludes the transmission revenues collected from customers in the current period and the 2022 deferral of the cumulative amount of transmission revenues collected since 2018 through Evergy Kansas Central's FERC TFR to be refunded to customers as a result of a December 2022 FERC order. See "Evergy Kansas Central FERC TFR Refund" within this Executive Summary for additional information. Management believes that this is a representative measure of Evergy's recurring earnings, assists in the comparability of results and is consistent with how management reviews performance. Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for 20192021 have been recast, as applicable, to conform to the current year presentation.
Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for 2022 were$694.0 $853.8 million or $2.89$3.71 per share, respectively. share. For 2018,2021, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were$680.9 $795.2 million or $2.54$3.46 per share, respectively. share.
In addition to net income attributable to Evergy, Inc., and diluted EPS, pro forma net income attributable to Evergy, Inc. and pro forma diluted EPS as prepared in accordance with GAAP, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without i.) the costs and/income or benefitscosts resulting from rebranding, voluntary severance and significant itemsnon-regulated energy marketing margins from the February 2021 winter weather event; ii.) gains or losses related to equity investments subject to a restriction on sale; iii.) the Great Plains Energyrevenues collected from customers for the return on investment of the retired Sibley Station in the current period and the 2022 deferral of the cumulative amount of revenues collected since December 2018 for future refunds to customers; iv.) the estimated impairment loss on Sibley Unit 3 and other regulatory disallowances; v.) the mark-to-market impacts of economic hedges related to Evergy Kansas Central merger.Central's non-regulated 8% ownership share of Jeffrey Energy Center (JEC); vi.) the transmission revenues collected from customers through Evergy Kansas Central's FERC TFR to be refunded to customers in accordance with a December 2022 FERC order; and vii.) costs resulting from executive transition, severance, advisor expenses and COVID-19 vaccine incentives.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to enhanceaid an investor's overall understanding of results. AdjustedManagement 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 or that can create period to period earnings volatility.
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.

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Earnings (Loss)Earnings (Loss) per Diluted ShareEarnings (Loss)Earnings (Loss) per Diluted Share
20222021
(millions, except per share amounts)
Net income attributable to Evergy, Inc.$752.7 $3.27 $879.7 $3.83 
Non-GAAP reconciling items:
Non-regulated energy marketing margin related to February 2021
   winter weather event, pre-tax(a)
2.1 0.01 (94.5)(0.41)
Sibley Station return on investment, pre-tax(b)
51.4 0.22 (12.4)(0.05)
Mark-to-market impact of JEC economic hedges, pre-tax(c)
(11.2)(0.05)— — 
Non-regulated energy marketing costs related to February 2021
   winter weather event, pre-tax(d)
1.3 0.01 7.9 0.03 
Executive transition costs, pre-tax(e)
2.2 0.01 10.8 0.05 
Severance costs, pre-tax(f)
2.3 0.01 2.8 0.01 
Advisor expenses, pre-tax(g)
5.4 0.02 11.6 0.05 
COVID-19 vaccine incentive, pre-tax(h)
— — 1.2 0.01 
Sibley impairment loss and other regulatory disallowances, pre-tax(i)
34.9 0.15 — — 
Restricted equity investment losses (gains), pre-tax(j)
16.3 0.07 (27.7)(0.12)
TFR refund, pre-tax(k)
25.0 0.11 (9.9)(0.05)
Income tax (benefit) expense (l)
(28.6)(0.12)25.7 0.11 
Adjusted earnings (non-GAAP)$853.8 $3.71 $795.2 $3.46 
The following table provides a reconciliation between net income attributable(a)Reflects non-regulated energy marketing margins related to the February 2021 winter weather event that are included in operating revenues on the consolidated statements of comprehensive income.
(b)Reflects revenues collected from customers for the return on investment of the retired Sibley Station in the current period and the 2022 deferral of the cumulative amount of revenues collected since December 2018 that are included in operating revenues on the consolidated statements of comprehensive income.
(c)Reflects mark to market gains or losses related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Inc., diluted EPS, pro forma net income attributableKansas Central's non-regulated 8% ownership share of JEC that are included in operating revenues on the consolidated statements of comprehensive income.
(d)Reflects non-regulated energy marketing incentive compensation costs related to the February 2021 winter weather event that are included in operating and maintenance expense on the consolidated statements of comprehensive income.
(e)Reflects costs associated with executive transition including inducement bonuses, severance agreements and other transition expenses that are included in operating and maintenance expense on the consolidated statements of comprehensive income.
(f)Reflects severance costs incurred associated with certain severance programs at the Evergy Inc.Companies that are included in operating and pro forma diluted EPS as determinedmaintenance expense on the consolidated statements of comprehensive income.
(g)Reflects advisor expenses incurred associated with strategic planning that are included in operating and maintenance expense on the consolidated statements of comprehensive income.
(h)Reflects incentive compensation costs incurred associated with employees becoming fully vaccinated against COVID-19 that are included in operating and maintenance expense on the consolidated statements of comprehensive income.
(i)Reflects the impairment loss on Sibley Unit 3 and costs related to certain meter replacements that were disallowed in the 2022 Evergy Metro and Evergy Missouri West rate cases that are included in Sibley Unit 3 impairment loss and other regulatory disallowances on the consolidated statements of comprehensive income.
(j)Reflects (gains) losses related to equity investments which were subject to a restriction on sale that are included in investment earnings on the consolidated statements of comprehensive income.
(k)Reflects transmission revenues collected from customers in the current period and the 2022 deferral of the cumulative amount of transmission revenues collected since 2018 through Evergy Kansas Central's FERC TFR to be refunded to customers in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP).a December 2022 FERC order that are included in operating revenues on the consolidated statements of comprehensive income.
(l)Reflects an income tax effect calculated at a statutory rate of approximately 22%, with the exception of certain non-deductible items.
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 Earnings (Loss) Earnings (Loss) per Diluted ShareEarnings (Loss) Earnings (Loss) per Diluted Share
 20192018
 (millions, except per share amounts)
Net income attributable to Evergy, Inc.$669.9
 $2.79
$535.8
 $2.50
Pro forma adjustments(a):
      
Great Plains Energy earnings prior to merger—
 —
94.4
 0.35
Great Plains Energy shares prior to mergern/a
 —
n/a
 (0.50)
Non-recurring merger costs and other—
 —
84.1
 0.32
Pro forma net income attributable to Evergy, Inc.$669.9
 $2.79
$714.3
 $2.67
Non-GAAP reconciling items:      
Rebranding costs, pre-tax(b)
12.1
 0.05
—
 —
Voluntary severance costs, pre-tax(c)
19.8
 0.08
23.5
 0.09
Composite tax rate change(d)
—
 —
(52.6) (0.20)
Deferral of merger transition costs, pre-tax(e)
—
 —
(28.5) (0.11)
Inventory write-off at retiring generating units, pre-tax(f)
—
 —
31.0
 0.12
Income tax benefit(g)
(7.8) (0.03)(6.8) (0.03)
Adjusted earnings (non-GAAP)$694.0
 $2.89
$680.9
 $2.54
(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 external costs incurred to rebrand the legacy Westar Energy and KCP&L utility brands to Evergy and are included in operating and maintenance expense on the consolidated statements of comprehensive income.
(c)
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.
(d)
Reflects the revaluation of Evergy Kansas Central's deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018 and are included in income tax expense on the consolidated statements of comprehensive income.
(e)
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 consolidated statements of comprehensive income.
(f)
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 consolidated statements of comprehensive income.
(g)
Reflects an income tax effect calculated at a 26.1% statutory rate, with the exception of certain non-deductible items.
Wolf Creek Refueling Outage
Wolf Creek's most recent refueling outage began in September 2019 and the unit returned to service in November 2019. Wolf Creek's next refueling outage is planned to begin in the first quarter of 2021.
ENVIRONMENTAL MATTERS
See Note 15 to the consolidated financial statements for information regarding environmental matters.
RELATED PARTY TRANSACTIONS
See Note 17 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 Evergy's results of operations and financial position. Management has identified the following accounting policies as critical to the understanding of Evergy'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 Evergy Board.
Pensions
Evergy 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 109 to the consolidated financial statements for information regarding the assumptions used to determine benefit obligations and net costs.
The following table reflects the sensitivities associated with a 0.5% increase or a 0.5% decrease in key actuarial assumptions for Evergy's qualified pension plans. Each sensitivity reflects the impact of the change based on a change in that assumption only.
Impact onImpact on
Projected2023
Change inBenefitPension
Actuarial assumptionAssumptionObligationExpense
(millions)
Discount rate0.5 %increase$(76.4)$(6.7)
Rate of return on plan assets0.5 %increaseN/A(5.9)
Rate of compensation0.5 %increase16.9 3.5 
Discount rate0.5 %decrease84.7 7.3 
Rate of return on plan assets0.5 %decreaseN/A5.9 
Rate of compensation0.5 %decrease(15.8)(3.3)
41
   Impact onImpact on
   Projected2020
 Change inBenefitPension
Actuarial assumptionAssumptionObligationExpense
   (millions)
Discount rate0.5%increase $(197.7)  $(20.2) 
Rate of return on plan assets0.5%increase —
  (8.2) 
Rate of compensation0.5%increase 48.9
  9.7
 
Discount rate0.5%decrease 223.4
  22.5
 
Rate of return on plan assets0.5%decrease —
  8.2
 
Rate of compensation0.5%decrease (45.7)  (9.0) 
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Pension expense for Evergy Kansas Central, Evergy Metro and Evergy Missouri West is recorded in accordance with rate orders from the KCC and 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 2019,2022, Evergy's pension expense was $131.3$144.5 million under GAAP and $168.7$159.2 million for ratemaking. The impact on 20202023 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 is deferred to a regulatory asset or

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liability for future ratemaking treatment. See Note 109 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 43 to the consolidated financial statements for the balance of unbilled receivables for Evergy as of December 31, 20192022 and 2018.2021.
Regulatory Assets and Liabilities
Evergy 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 Evergy's rate case filings; decisions in other regulatory proceedings, including decisions related to other companies that establish precedent on matters applicable to 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. Evergy'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 Evergy'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 54 to the consolidated financial statements for additional information.
Impairments of Assets and Goodwill
Long-lived assets 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.
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. Evergy's consolidated operations are considered one reporting unit for assessment of impairment, as management assesses financial performance and allocates resources on a consolidated basis. The annual impairment test for the $2,336.6 million of goodwill from
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the Great Plains Energy and Evergy Kansas Central merger was conducted onas of May 1, 2019.2022. The fair value of the reporting unit substantially exceeded the carrying amount, including goodwill. As a result, there was no impairment of goodwill.
The determination of fair value for 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 multiple derived from the historical earnings before interest, income taxes, depreciation and amortization 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 determines 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 KCC and MPSC and after-tax cost of debt. Estimated future cash flows are based on Evergy'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 returns of 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 the 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 determines 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 the 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. Evergy 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 Evergy'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. Evergy 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 20 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.
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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. AThe 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 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.

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As of December 31, 20192022 and 2018,2021, Evergy had recorded AROs of $674.1$1,153.2 million and $687.1$960.1 million, respectively. See Note 76 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.regulators and to mitigate the impacts of inflationary pressures.
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 primarily use coal, uranium and uraniumgas for the generation of electricity for their customers and also purchase power through renewable power purchase power agreements or on the open market. The prices for fuel used in generation or the market price of purchased 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 the Missouri Energy Efficiency Investment Act (MEEIA),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, Evergy Metro and Evergy Metro's Kansas jurisdictionMissouri West have property tax surcharges or trackers 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.

rates.
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The following table summarizes Evergy's comparative results of operations.
2022Change2021
 (millions)
Operating revenues$5,859.1 $272.4 $5,586.7 
Fuel and purchased power1,821.2 264.2 1,557.0 
SPP network transmission costs323.0 32.6 290.4 
Operating and maintenance1,085.3 (22.2)1,107.5 
Depreciation and amortization929.4 33.0 896.4 
Taxes other than income tax398.1 17.6 380.5 
Sibley Unit 3 impairment loss and other regulatory disallowances34.9 34.9 — 
Income from operations1,267.2 (87.7)1,354.9 
Other income (expense), net(58.0)(76.8)18.8 
Interest expense404.0 31.4 372.6 
Income tax expense47.5 (69.9)117.4 
Equity in earnings of equity method investees, net of income taxes7.3 (0.9)8.2 
Net income765.0 (126.9)891.9 
Less: Net income attributable to noncontrolling interests12.3 0.1 12.2 
Net income attributable to Evergy, Inc.$752.7 $(127.0)$879.7 
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 2019 Change 2018 Change 2017
 (millions)
Operating revenues$5,147.8
 $871.9
 $4,275.9
 $1,704.9
 $2,571.0
Fuel and purchased power1,265.0
 186.3
 1,078.7
 537.2
 541.5
SPP network transmission costs251.3
 (8.6) 259.9
 12.0
 247.9
Operating and maintenance1,218.5
 102.7
 1,115.8
 552.3
 563.5
Depreciation and amortization861.7
 242.9
 618.8
 247.1
 371.7
Taxes other than income tax365.5
 96.4
 269.1
 101.5
 167.6
Income from operations1,185.8
 252.2
 933.6

254.8

678.8
Other expense, net(39.0) 15.4
 (54.4) (27.6) (26.8)
Interest expense374.0
 94.4
 279.6
 108.6
 171.0
Income tax expense97.0
 38.0
 59.0
 (92.2) 151.2
Equity in earnings of equity method investees, net of income taxes9.8
 4.4
 5.4
 (1.3) 6.7
Net income685.6
 139.6
 546.0

209.5

336.5
Less: Net income attributable to noncontrolling interests15.7
 5.5
 10.2
 (2.4) 12.6
Net income attributable to Evergy, Inc.$669.9
 $134.1
 $535.8

$211.9

$323.9


EvergyGross Margin (GAAP) and Utility Gross Margin and MWh Sales(non-GAAP)
UtilityThe following tables summarize Evergy's gross margin (GAAP) and MWhs sold and reconcile Evergy's gross margin (GAAP) to Evergy's utility gross margin (non-GAAP). See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).
Revenues and Expenses
2022Change2021Change2020
Retail revenues(millions)
Residential$2,168.2 $249.9 $1,918.3 $9.1 $1,909.2 
Commercial1,888.5 207.2 1,681.3 39.6 1,641.7 
Industrial686.2 89.2 597.0 8.3 588.7 
Other retail revenues(32.1)(65.2)33.1 (5.4)38.5 
Total electric retail4,710.8 481.1 4,229.7 51.6 4,178.1 
Wholesale revenues509.9 (207.3)717.2 453.2 264.0 
Transmission revenues343.7 (13.1)356.8 38.3 318.5 
Other revenues294.7 11.7 283.0 130.2 152.8 
Operating revenues5,859.1 272.4 5,586.7 673.3 4,913.4 
Fuel and purchased power(1,821.2)(264.2)(1,557.0)(458.0)(1,099.0)
SPP network transmission costs(323.0)(32.6)(290.4)(27.2)(263.2)
Operating and maintenance(a)
(542.6)(6.9)(535.7)12.4 (548.1)
Depreciation and amortization(929.4)(33.0)(896.4)(16.3)(880.1)
Taxes other than income tax(398.1)(17.6)(380.5)(16.3)(364.2)
Gross margin (GAAP)1,844.8 (81.9)1,926.7 167.9 1,758.8 
Operating and maintenance(a)
542.6 6.9 535.7 (12.4)548.1 
Depreciation and amortization929.4 33.0 896.4 16.3 880.1 
Taxes other than income tax398.1 17.6 380.5 16.3 364.2 
Utility gross margin (non-GAAP)$3,714.9 $(24.4)$3,739.3 $188.1 $3,551.2 
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $542.7 million, $571.8 million and $614.9 million for 2022, 2021 and 2020, respectively.
MWhs Sold2022Change2021Change2020
Retail sales(thousands)
Residential16,494 779 15,715 232 15,483 
Commercial18,176 517 17,659 664 16,995 
Industrial8,782 174 8,608 365 8,243 
Other retail131 — 131 (1)132 
Total electric retail sales43,583 1,470 42,113 1,260 40,853 
Wholesale sales17,103 1,187 15,916 1,056 14,860 
Total60,686 2,657 58,029 2,316 55,713 
Evergy's gross margin (GAAP) decreased $81.9 million in 2022, compared to 2021 and Evergy's utility gross margin (non-GAAP) decreased $24.4 million in 2022, compared to 2021, both measures were driven by:
•a $96.6 million decrease in non-regulated energy marketing margins recognized at Evergy Kansas Central related to the February 2021 winter weather event;
•a $68.0 million decrease due to the deferral of revenues in 2022 for the ordered refund of amounts collected from customers since December 2018 for the return on investment of the retired Sibley Station;
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•a $32.8 million decrease in transmission revenues collected from Evergy Kansas Central's customers through its FERC TFR which is a financial measure that is not calculatedto be refunded to customers in accordance with GAAP.  Utility gross margin, as useda December 2022 FERC order;
•a $22.7 million decrease in transmission revenues related to the amortization of excess deferred income taxes authorized by theFERC in December 2022 and which is offset in income tax expense;
•a $16.7 million reduction to Evergy Companies, is defined asMetro's operating revenues less fuel and purchased power costs and amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power 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 with 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 SPP network transmission costs are mostly reflected in the prices chargedrecording an estimated refund obligation to customers with minimal impact on net income.related to Evergy Metro's ERSP. See Note 3 to4 of the consolidated financial statements for additional information regardinginformation;
•a $1.4 million net decrease due to other impacts from the manner in whichFebruary 2021 winter weather event driven by:
◦a $33.8 million decrease at Evergy reflects SPP revenues and expenses.
Management believes that utility gross margin provides a meaningful basis for evaluating the Evergy Companies' operations across periods compared with operating revenues because utility gross margin excludes the revenue effectKansas Central driven by higher wholesale sales at its non-regulated 8% ownership share of fluctuations in these expenses.  Utility gross margin is used internallyJEC due to measure performance against budget and in reports for management and the Evergy Board.  The Evergy Companies' definition of utility gross margin may differ from similar terms used by other companies.

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The following tables summarize Evergy's utility gross marginhigher wholesale sales prices and MWhs sold.sold in February 2021; partially offset by
Utility Gross Margin2019 Change 2018 Change 2017
Retail revenues(millions)
Residential$1,908.1
 $329.3
 $1,578.8
 $777.5
 $801.3
Commercial1,781.6
 425.2
 1,356.4
 644.7
 711.7
Industrial621.6
 93.8
 527.8
 114.9
 412.9
Other retail revenues47.1
 16.5
 30.6
 7.8
 22.8
Total electric retail4,358.4
 864.8
 3,493.6
 1,544.9
 1,948.7
Wholesale revenues327.5
 (76.9) 404.4
 73.2
 331.2
Transmission revenues309.2
 1.1
 308.1
 23.3
 284.8
Other revenues152.7
 82.9
 69.8
 63.5
 6.3
Operating revenues5,147.8
 871.9
 4,275.9
 1,704.9
 2,571.0
Fuel and purchased power(1,265.0) (186.3) (1,078.7) (537.2) (541.5)
SPP network transmission costs(251.3) 8.6
 (259.9) (12.0) (247.9)
Utility gross margin (a)
$3,631.5
 $694.2
 $2,937.3
 $1,155.7
 $1,781.6
(a) ◦Utilitygross margin is a non-GAAP financial measure.  See explanation$21.0 million increase at Evergy Missouri West driven by $14.8 million of utility gross margin above.increased fuel and purchased power costs in February 2021 that are not recoverable from customers through its fuel recovery mechanism and a $6.2 million decrease related to a special requirements contract with an industrial customer; and
◦an $11.4 million increase 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
MWh Sales2019 Change 2018 Change 2017
Retail MWh Sales(thousands)
Residential15,492
 3,014
 12,478
 6,315
 6,163
Commercial18,295
 4,166
 14,129
 6,761
 7,368
Industrial8,570
 1,144
 7,426
 1,737
 5,689
Other retail revenues139
 29
 110
 37
 73
Total electric retail42,496
 8,353
 34,143
 14,850
 19,293
Wholesale revenues14,398
 587
 13,811
 3,465
 10,346
Operating revenues56,894
 8,940
 47,954
 18,315
 29,639
•a $138.2 million increase primarily due to higher retail sales driven by favorable weather (cooling degree days increased 7% and heating degree days increased by 12%) and an increase in weather-normalized demand;
Evergy's utility gross margin increased $694.2•a $42.5 million increase in 2019 comparedtransmission revenue primarily due to 2018 driven by:updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2022;
•an $11.2 million increase due to mark to market gains related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's non-regulated 8% ownership share of JEC;
•an $11.0 million increase due to higher revenues collected at Evergy Kansas Central and Evergy Metro related to property taxes and which has a $674.4direct offset in taxes other than income tax; and
•a $10.9 million increase due to the inclusioncessation of Evergy Metro's and Evergy Missouri West's utility gross margin in the first five months of 2019;
a $59.7 million increase in revenue due to one-timeannual bill credits recorded by Evergy Kansas Central and Evergy Metro and Evergy Missouri West in June 2018through January 2022 as a result of the expiration of conditions in the KCC and MPSCorder granting the 2018 merger orders; and
a $41.6 million increase from newof Evergy Kansas Central and Great Plains Energy.
Additionally, the decrease in Evergy's gross margin (GAAP) was also driven by:
•a $33.0 million increase in depreciation and amortization primarily driven by higher capital additions at Evergy Kansas Central and Evergy Metro in 2022 as described further below;
•a $17.6 million increase in taxes other than income taxes driven by an increase in property taxes in Missouri and Evergy Missouri West retail rates effective in 2018, net of a $124.2 million provision for rate refund recorded in 2018 for the change in the corporate income tax rate caused by the TCJA; partially offset by
a $53.0 million decreaseKansas primarily due to lowerhigher assessed property tax values as described further below; and
•a $6.9 million increase in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $10.5 million increase in transmission and distribution operating and maintenance expense as described further below.
Evergy's gross margin (GAAP) increased $167.9 million in 2021, compared to 2020 and Evergy's utility gross margin (non-GAAP) increased $188.1 million in 2021, compared to the same period in 2020, both measures were driven by:
•a $94.5 million of non-regulated energy marketing margins recognized at Evergy Kansas Central Evergy Metro and Evergy Missouri Westrelated to the February 2021 winter weather event;
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•an $84.1 million increase primarily due to higher retail sales driven by cooler summer weather. For 2019 compared to 2018, coolingfavorable weather (cooling degree days decreased 16%;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 $12.9$38.3 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC 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:
◦a $33.8 million increase at Evergy Kansas Central driven by higher wholesale sales at its non-regulated 8% ownership share of JEC due to higher wholesale sales prices and MWhs sold in February 2021; partially offset by
◦a $21.0 million decrease at Evergy Missouri West driven by $14.8 million of increased fuel and purchased power costs in February 2021 that are not recoverable from customers through its fuel recovery mechanism and a $6.2 million decrease related to a 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 Central's transmission delivery charge (TDC) rider;regarding its refund to customers for the net increase in wholesale revenues in February 2021; partially offset by
•a $10.2$30.2 million decrease in revenue relatedrevenues at Evergy Kansas Central and Evergy Metro due to rate reductions beginning January 1, 2021, in Kansas to reflect their exemption from Kansas corporate incomes taxes.
Additionally, the granting of an Accounting Authority Order (AAO) by the MPSCincrease in October 2019 requiring Evergy Missouri West to record Evergy's gross margin (GAAP) was also driven by:
•a regulatory liability for the estimated amount of revenues it has collected from customers for certain costs related to Sibley Station since its retirement in November 2018; and
a $5.4$12.4 million decrease for recovery of programs costs for energy efficiency programs under MEEIA, which have a direct offset in operating and maintenance expense.expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $16.9 million decrease in transmission and distribution operating and maintenance expenses; offset by

•a $16.3 million increase in depreciation and amortization primarily driven by higher capital additions at Evergy Kansas Central in 2021; and
38•a $16.3 million increase in taxes other than income taxes driven by an increase in property taxes in Missouri and Kansas primarily due to higher assessed property tax values.
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Operating and Maintenance
Evergy's operating and maintenance expense increased $102.7decreased $22.2 million in 20192022, compared to 20182021, primarily driven by:
•a $279.9$11.9 million increasedecrease in operating and maintenancecredit loss expense due to the inclusion of Evergy Metro's and Evergy Missouri West's operating and maintenance expenses in the first five months of 2019;
$12.1 million of rebranding costs incurred in 2019 to rebrand the legacy Westar Energy and KCP&L utility brands to Evergy; and
$11.8 million of Evergy Kansas Central,at Evergy Metro and Evergy Missouri West voluntaryprimarily due to resuming collection activities for accounts with lower balances due;
•an $8.6 million decrease in costs recorded in 2022 associated with executive transition, including inducement bonuses, severance agreements and other transition expenses;
•a $6.6 million decrease in costs incurred in 2022 at Evergy Kansas Central related to non-regulated energy marketing margins recognized during the February 2021 winter weather event; and
•a $6.2 million decrease in advisor expenses incurred in 2019;2022 associated with strategic planning; partially offset by
$75.8 million of merger-related costs incurred in 2018, consisting of:
◦$51.0 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees;
◦$47.9 million of Evergy Kansas Central and Evergy Metro voluntary severance and change in control payments as well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding Evergy Kansas Central equity compensation awards in accordance with the Amended Merger Agreement; and
◦$24.7 million of unconditional charitable contributions and community support recorded by Evergy in accordance with conditions in the KCC and MPSC merger orders; partially offset by
◦a $47.8 million decrease in operating and maintenance expense due to the deferral of merger transition costs to a regulatory asset in June 2018 for future recovery by Evergy Kansas Central, Evergy Metro and Evergy Missouri West in accordance with the KCC and MPSC merger orders;
•a $62.1 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily due to:
◦a $15.0 million decrease due to the retirement of Evergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center, Units 1 and 2 at Gordan Evans Energy Center and Evergy Metro's Montrose Station and Evergy Missouri West's Sibley Station in the fourth quarter of 2018;
◦$31.0 million of Evergy Kansas Central, Evergy Metro and Evergy Missouri West obsolete inventory write-offs at retiring fossil-fuel units in 2018;
◦$5.2 million of voluntary severance expenses incurred in the third quarter of 2018 by Evergy Kansas Central, Evergy Metro and Evergy Missouri West related to their Local 1523 and Local 412 union voluntary exit programs; and
◦a $3.7 million decrease due to an extended maintenance outage at Evergy Metro's Iatan No. 2 in 2018; partially offset by
◦an $8.4$10.5 million increase due to the write-off of a regulatory asset for costs incurred during the Jeffrey Energy Center (JEC) lease extension, see Note 5 to the consolidated financial statements;
a $35.6 million decrease in various administrativetransmission and generaldistribution operating and maintenance expenses primarily driven by higher contractor costs, a $15.3$2.0 million decreaseincrease in laborengineering and employee benefits expense primarily due to lower employee headcountenvironmental outside service fees and Evergy Kansas Central pension and post-retirementa $3.0 million increase in vegetation management costs in 2019 and $10.6 million of voluntary severance expenses incurred in the third quarter of 2018 by Evergy Kansas Central and Evergy Metro related to a Wolf Creek voluntary exit program;
a $9.5 million decrease in plant operating and maintenance expense at nuclear generating units related to Wolf Creek;
a $9.3 million decrease in transmission and distribution operating and maintenance expense primarily due to a higher level of Evergy Kansas Central vegetation management activity in 2018; and

2022.
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a $5.4 million decrease in program costs for energy efficiency programs under MEEIA, which have a direct offset in revenue.
Depreciation and Amortization
Evergy's depreciation and amortization increased $242.9$33.0 million in 20192022, compared to 20182021, primarily driven by:
a $173.4 million increase due to the inclusion of Evergy Metro's and Evergy Missouri West's depreciation expense in the first five months of 2019;
a $43.0 million increase primarily due to a change in depreciation rates as a result of Evergy Kansas Central's and Evergy Metro's rate cases effective in 2018; and
a $26.5 million increase primarily due toby higher capital additions at Evergy Kansas Central and Evergy Metro.Metro in 2022.
Taxes Other Than Income Tax
Evergy's taxes other than income tax increased $96.4$17.6 million in 20192022, compared to 20182021, driven by an increase in property taxes in Missouri and Kansas primarily driven by:
a $75.7 million increase due to the inclusion ofhigher assessed property tax values.
Sibley Unit 3 Impairment Loss and Other Regulatory Disallowances
Evergy recorded a $26.7 million impairment loss on Evergy Missouri West's regulatory asset for retired generation facilities related to Sibley Unit 3 in 2022 and $5.5 million and $2.7 million losses at Evergy Metro and Evergy Missouri West, amountsrespectively, in accordance with the first five monthsamended final rate order from the MPSC in their 2022 rate cases which disallowed the recovery of 2019;costs associated with the replacement of certain electric meters. See Notes 1 and 4 of the consolidated financial statements for additional information.
Other Income (Expense), Net
Evergy's other income, net in 2021 became other expense, net, in 2022 as a $22.9result of a $76.8 million increase in net other expense items, primarily driven by:
•a $66.7 million increase primarily due to increaseda $27.7 million unrealized gain in 2021 due to the change in fair value related to Evergy's equity investment in an early-stage energy solutions company, a $16.3 million realized loss related to this equity investment that was sold in 2022 through a share forward agreement, $14.0 million in realized gains from the sale of various equity investments in 2021 and a $9.9 million increase due to lower unrealized gains from various equity investments in 2022;
•a $7.3 million increase primarily due to higher pension non-service costs at Evergy Kansas Central property taxes.and Evergy Metro in 2022;
Other•$6.4 million of lower Evergy Kansas Central equity allowance for funds used during construction (AFUDC) primarily driven by higher short-term debt balances in 2022; and
•$6.1 million of other income recorded in 2021 related to contract termination fees; partially offset by
•a $20.2 million increase in interest income primarily due to $15.0 million of carrying charges recorded by Evergy Missouri West in the third quarter of 2022 associated with its regulatory asset for fuel and purchased power costs related to the February 2021 winter weather event, driven by an MPSC order allowing for their recovery as part of Evergy Missouri West's securitization financing request.
Interest Expense Net
Evergy's otherinterest expense net decreased $15.4increased $31.4 million in 20192022, compared to 20182021, primarily driven by:
•a $12.4$42.3 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates for Evergy, Inc., Evergy Kansas Central and Evergy Missouri West in 2022; and
•a $7.4 million increase due to the issuance of Evergy Missouri West's $250.0 million of 3.75% First Mortgage Bonds (FMBs) in March 2022; partially offset by
•an $8.3 million decrease due to recording higherthe repayment of Evergy's $287.5 million of 5.292% Senior Notes at maturity in June 2022; and
•a $5.8 million decrease due to the repayment of Evergy Kansas Central corporate-owned life insurance (COLI) benefitsMissouri West's $80.9 million of 8.27% Senior Notes at maturity in 2019;November 2021.
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Income Tax Expense
Evergy's income tax expense decreased $69.9 million in 2022, compared to 2021, primarily driven by:
•a $6.3$42.7 million decrease primarily due to lower Evergy Kansas Central and Evergy Metro pension non-service costsMissouri West pre-tax income in 2019;2022; and
•a $4.2$17.9 million decrease due to higher net unrealized gains in Evergy Kansas Central's rabbi trust in 2019; partially offset by
a $9.5 million increase due to the inclusion of Evergy Metro and Evergy Missouri West amounts in the first five months of 2019.
Interest Expense
Evergy's interest expense increased $94.4 million in 2019 compared to 2018 primarily driven by:
a $77.2 million increase due to the inclusion of Evergy Metro's and Evergy Missouri West's interest expense and Evergy's interest expense associated with the assumption of legacy Great Plains Energy debt in the first five months of 2019;
a $14.5 million increase due to Evergy's issuance of $1.6 billion of senior notes in September 2019; and
a $7.7 million increase primarily due to Evergy's borrowings under its $1.0 billion term loan credit agreement in 2019; partially offset by
a $10.1 million net decrease due to the repayment of Evergy Metro's $400.0 million of 7.15% Mortgage Bonds at maturity in April 2019, which decreased interest expense by $19.8 million, partially offset by a $9.7 million increase due to Evergy Metro's issuance of $400.0 million of 4.125% Mortgage Bonds in March 2019.
Income Tax Expense
Evergy's income tax expense increased $38.0 million in 2019 compared to 2018 primarily driven by:
a $52.6 million increase related to the revaluation of Evergy Kansas Central's deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in 2018; and
an $18.9 million increase due to higher Evergy Kansas Central pre-tax income; partially offset by

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a $39.0 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes.taxes authorized by FERC in December 2022.
EVERGY SIGNIFICANT BALANCE SHEET CHANGES
(December 31, 20192022 compared to December 31, 2018)2021)
•Evergy's cashreceivables, net increased $93.7 million primarily driven by a $52.1 million increase in retail electric accounts receivable and cash equivalentsa $48.3 million increase in wholesale sales accounts receivable driven by higher sales in December 2022 due to favorable weather.
•Evergy's accounts receivable pledged as collateral increased $40.0 million primarily driven by Evergy's increase in retail electric accounts receivable balances in December 2022, resulting in a higher level of retail electric receivables available for sale through Evergy's receivable sales facilities.
•Evergy's fuel and supplies inventory increased $106.2 million primarily driven by an $86.4 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.
•Evergy's income taxes receivable decreased $137.1by $18.7 million primarily due to the repurchaseapplication of common stockEvergy's 2021 overpayment of income taxes to Evergy's 2022 income tax payments.
•Evergy's other assets - current decreased $30.9 million primarily due to a $31.4 million investment in connection with Evergy's share repurchase program.an early-stage energy solutions company that was sold in 2022. See "Evergy Equity Investment" in Note 181 to the consolidated financial statements for additional information on information.
•Evergy's share repurchase program.
Evergy's income tax receivable increased by $17.5nuclear decommissioning trust funds decreased $115.4 million primarily due to the $37.9 million reclassification of Evergy's 2019 alternative minimum tax (AMT) credits from deferred income taxes, partially offsetdriven by the receipt of $18.6 million in 2019 related to Evergy's 2018 AMT tax credit.
Evergy's regulatory assets - current decreased by $72.2 million primarily due to fuel recovery mechanism recoveries exceeding under-collectionsrealized and unrealized losses on investments at Evergy MetroKansas Central's and Evergy Missouri West by $30.7 million and $24.3 million in 2019, respectively.Metro's nuclear decommissioning trusts.
•
Evergy's other assets increased by $115.0 million primarily due to $104.5 million of operating lease right-of-use assets, as of December 31, 2019, that were recorded as a result of Topic 842, Leases in 2019. See Note 1 to the consolidated financial statements for additional information on the new lease standard.
Evergy's current maturities of long-term debt decreased by $454.3increased $49.8 million primarily due to the repaymentreclassification of Evergy Metro's $400.0$300.0 million of 7.15% Mortgage Bonds at maturity in April 2019.
Evergy's notes payable3.15% Senior Notes and commercial paper decreased $176.7$79.5 million primarily due to a $162.5 million decrease atof 2.95% Environmental Improvement Revenue Refunding (EIRR) bonds and Evergy Kansas Central dueCentral's $50.0 million of 6.15% of FMBs from long-term to current, partially offset by the repaymentrepayments of commercial paper with funds from operationsEvergy's $287.5 million of 5.292% of Senior Notes and a $56.6 million decrease at Evergy Missouri West primarily due to the repayment of commercial paper with the proceeds from its issuance ofWest's $100.0 million of 3.74% Senior Notes in March 2019, partially offset by a $20.0 million increase at Evergy, Inc. due to cash borrowings under its master credit facility.Notes.
•Evergy's accountscollateralized note payable increased $77.3$40.0 million primarily due to the timingdriven by Evergy's increase in retail electric accounts receivable balances in December 2022, resulting in a higher level of cash payments.retail electric receivables available for sale through Evergy's receivable sales facilities.
•Evergy's regulatory liabilities - current decreased $46.9increased $84.7 million primarily due to a $70.9$48.4 million refundordered to be refunded to TFR customers in the next 12 months for over-collections related to the calculation of tax reform benefits at Evergy Kansas Central, Evergy MetroCentral's capital structure for the rate years 2020 - 2022 and Evergy Missouri West in 2019, partially offset bythe amortization of excess deferred income taxes, and a $30.2$26.4 million increase in the current portion of Evergy Missouri West's Sibley AAO regulatory liability. See "Evergy Kansas Central's regulatory liability for its fuel recovery mechanism due to recoveries exceeding under-collections.
•
Evergy's other liabilities - current increased $48.9 million primarily due to a $23.7 million increase in funds received from customers for the construction of transmission assets at Evergy Kansas Central and $15.6 million of operating lease liabilities, as of December 31, 2019, that were recorded as a result of the adoption of Topic 842, Leases in 2019. See Note 1 to the consolidated financial statements for additional information on the new lease standard.
Evergy's long-term debt increased by $2,110.4 million primarily due to the issuance of Evergy's $1.6 billion of senior notesCentral TFR Formal Challenge" in September 2019 and Evergy Metro's issuance of $400.0 million of 4.125% Mortgage Bonds in March 2019.
•
Evergy's other liabilities - long-term increased $104.0 million primarily due to $82.4 million of operating lease liabilities, as of December 31, 2019, that were recorded as a result of the adoption of Topic 842, Leases in 2019. See Note 1 to the consolidated financial statements for additional information on the new lease standard.
Evergy's common stock decreased $1,614.8 million primarily due to the repurchase of common stock for a total cost of approximately $1,628.7 million in 2019 pursuant to Evergy's share repurchase program. See Note 184 to the consolidated financial statements for additional information on information.
•Evergy's share repurchase program.asset retirement obligations - current increased $20.9 million primarily due to changes in estimates and the expected timing of remediation at several Evergy Kansas Central and Evergy Metro ponds and landfills containing CCRs.

•Evergy's pension and post-retirement liability decreased $420.7 million primarily due to a decrease in benefit obligations driven by $160.4 million and $145.9 million decreases due to actuarial
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remeasurements at Evergy Metro and Evergy Kansas Central, respectively, and pension contributions of $46.9 million and $21.0 million at Evergy Metro and Evergy Kansas Central, respectively.
•Evergy's asset retirement obligations - long-term increased $172.2 million primarily due to changes in the estimates of several Evergy Kansas Central and Evergy Metro ponds and landfills containing CCRs. See Note 6 to the consolidated financial statements for additional information.
LIQUIDITY AND CAPITAL RESOURCES 
Evergy relies primarily upon cash from operations, short-term borrowings, debt and equity issuances and its existing 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 and the repurchase of common shares.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 weather and economic 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 $1,801.9 million, $1,351.7 million and $1,753.8 million in 2022, 2021 and 2020, respectively.
Short-Term Borrowings
As of December 31, 2019,2022, Evergy had $1.9$1.2 billion of available borrowing capacity fromunder its master credit facility. The available borrowing capacity under the master credit facility consisted of $429.3$449.3 million for Evergy, Inc., $736.6$227.9 million for Evergy Kansas Central, $400.7$239.0 million for Evergy Metro and $354.5$250.8 million for Evergy Missouri West. The Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West'sCompanies' borrowing capacity under the master credit facility also supports their issuance of commercial paper. See Note 1211 to the consolidated financial statements for more information regarding the master credit facility.
In February 2022, Evergy, Inc. entered into a $500.0 million unsecured Term Loan Facility that originally expired in February 2023. In February 2023, Evergy, Inc. amended the $500.0 million Term Loan Facility to expire in February 2024. As a result of the amendment, Evergy, Inc. demonstrated its intent and ability to refinance the Term Loan Facility and reflected this $500 million borrowing within long-term debt, net, on Evergy's consolidated balance sheets as of December 31, 2022. Evergy's borrowings under the Term Loan Facility were used for, among other things, working capital, capital expenditures and general corporate purposes.
Along with cash flows from operations and receivable sales facilities, Evergy generally uses borrowings under its master credit facility and the issuance of commercial paper to meet its day-to-day cash flow requirements. Evergy also had short-term borrowingsbelieves that its existing cash on hand and available borrowing capacity under a term loanits master credit agreement that was repaid in September 2019 and is discussed further below.
In March 2019, Evergy entered into a $1.0 billion, 6-month term loan credit agreement with a group of banks tofacility provide short-term financingsufficient liquidity for its common stock repurchase program. The agreement allowed for two term loans during the 6-month term of the agreement, in an aggregate principal amount not to exceed the credit limit of the agreement. At closing, Evergy borrowed $500.0 million under the agreement, allowing for one additional term loan borrowing in a principal amount up to $500.0 million, which was subsequently utilized in June 2019. In September 2019, Evergy repaid its $1.0 billion of borrowings under the term loan credit agreement with proceeds from its issuance of $1.6 billion of senior notes in September 2019.existing capital requirements.
Long-Term Debt and Equity Issuances
From time to time, Evergy issues long-term debt and equity to repay short-term debt, refinance maturing long-term debt and finance growth. As of December 31, 20192022 and 2018, Evergy’s2021, Evergy's capital structure, excluding short-term debt, was as follows:
December 31
20222021
Common equity48%49%
Long-term debt, including VIEs52%51%
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 December 31
 2019 2018
Common equity49% 57%
Noncontrolling interests<0% <0%
Long-term debt, including VIEs51% 43%
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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, 2019,2022, the Evergy Companies were in compliance with these covenants.
Significant Debt Issuances
See Note 1312 to the consolidated financial statements for information regarding significant debt issuances.

Equity Issuance
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See Note 18 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 ratings 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 20, 2020,23, 2023, 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+
Commercial PaperP-2A-2
Evergy Kansas CentralMoody'sS&P Global
Outlook
Investors Service(a)
Stable
RatingsNegative(a)
Evergy
OutlookStableStable
Corporate Credit Rating--Baa1A-
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 DebtBaa2--BBB+A
Commercial PaperP-2A-1
Evergy Kansas Central
OutlookEvergy Missouri WestStableStable
OutlookStableNegative
Corporate Credit RatingBaa1Baa2A-
Senior Secured DebtA2A3A
Commercial PaperP-2A-2
Evergy Kansas South
OutlookStableStable
Corporate Credit RatingBaa1A-
Senior Secured DebtA2A
Short-Term RatingP-2A-2
Evergy Metro
OutlookStableStable
Corporate Credit RatingBaa1A
Senior Secured DebtA2A+
Senior Unsecured DebtBaa1A
Commercial PaperP-2A-1
Evergy Missouri West
OutlookStableStable
Corporate Credit RatingBaa2A-
Senior Unsecured DebtBaa2A-
Commercial PaperP-2A-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.

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Shelf Registration Statements and Regulatory Authorizations
Evergy
In November 2018,September 2021, Evergy filed an automatic shelf registration statement providing for the sale of unlimited amounts of securities with the SEC, which expires in November 2021.September 2024.

Evergy Kansas Central
In November 2018,September 2021, Evergy Kansas Central filed an automatic shelf registration statement providing for the sale of unlimited amounts of unsecured debt securities and First Mortgage Bonds (FMBs)FMBs with the SEC, which expires in November 2021.September 2024.
Evergy Metro
In November 2018,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 November 2021.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, 2019.2022.
Type of AuthorizationCommissionExpiration DateAuthorization AmountAvailable Under AuthorizationType of AuthorizationCommissionExpiration DateAuthorization AmountAvailable Under Authorization
Evergy Kansas Central & Evergy Kansas South (in millions)Evergy Kansas Central &
Evergy Kansas South		(in millions)
Short-Term DebtFERCDecember 2020$1,250.0$1,000.8Short-Term DebtFERCDecember 2024$1,250.0 $477.9 
Evergy Metro  Evergy Metro
Short-Term DebtFERCDecember 2020$1,250.0$1,050.7Short-Term DebtFERCDecember 2024$1,250.0 $1,139.0 
Evergy Missouri West Evergy Missouri West
Short-Term DebtFERCDecember 2020$750.0$656.7Short-Term DebtFERCDecember 2024$750.0 $240.3 
Long-Term DebtFERCDecember 2020$100.0$—Long-Term DebtFERCOctober 2024$600.0 $300.0 
In addition to the above regulatory authorizations, the Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy MetroMissouri West 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, Evergy Metro and Evergy MetroMissouri West must comply with these restrictions prior to the issuance of additional FMBs, general 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, 2019, $305.42022, $416.4 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

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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, 2019,2022, 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, 2019,2022, approximately $4,923.3$5,254.1 million principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage.
Under the First Mortgage Indenture and Deed of Trust, dated as of March 1, 2022 (Evergy Missouri West Mortgage Indenture), additional Evergy Missouri West mortgage bonds may be issued on the basis of 75% of property additions or retired bonds. As of December 31, 2022, approximately $1,905.0 million principal
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amount of additional Evergy Missouri West mortgage bonds could be issued under the most restrictive provisions in the mortgage.

Cash and Cash Equivalents
At December 31, 2019,2022, Evergy had approximately $23.2$25.2 million of cash and cash equivalents on hand.
Capital Requirements
Capital Expenditures
Evergy requires significant capital investments and expects to need cash primarily for its long-term strategy of transitioning its generation fleet to be more sustainable by reducing CO2 emissions as well as executing other utility construction programs designedrequired to maintain Evergy's electric utility operations, improve reliability and expand facilities related to providing electric service, whichservice. These capital expenditures could include, but are not limited to, expenditures to develop new transmission lines and make 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 $1,210.1$2,166.5 million, $1,069.7$1,972.5 million and $764.6$1,560.3 million in 2019, 20182022, 2021 and 2017,2020, respectively.
Capital expenditures projected for the next five years, excluding allowance for fund used during construction (AFUDC)AFUDC and including costs of removal, are detailed in the following table. This capital expenditure plan is subject to management's discretion and continual review and could change. See Part I, Item 1A, Risk Factors for information regarding potential risks to Evergy's capital expenditure plan.
20232024202520262027
(millions)
Generating facilities - new renewable/other generation$375.0 $89.0 $670.0 $603.0 $400.0 
Generating facilities - other414.0 354.0 335.0 290.0 364.0 
Transmission facilities662.0 694.0 598.0 629.0 678.0 
Distribution facilities697.0 622.0 669.0 642.0 715.0 
General facilities258.0 247.0 189.0 195.0 218.0 
Total capital expenditures$2,406.0 $2,006.0 $2,461.0 $2,359.0 $2,375.0 
  2020 2021 2022 2023 2024 
 (millions)
Generating facilities $487
 $555
 $563
 $455
 $263
 
Transmission and distribution facilities 893
 914
 886
 867
 1,006
 
General facilities 238
 117
 122
 92
 94
 
Total capital expenditures $1,618
 $1,586
 $1,571
 $1,414
 $1,363
 

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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 period20232024202520262027After 2027Total
Long-term debt(millions)
Principal$439.5 $1,300.0 $636.0 $350.0��$621.9 $6,984.9 $10,332.3 
Interest356.8 345.1 325.3 304.7 292.0 3,572.3 5,196.2 
Pension and other post-retirement plans (a)
32.0 32.0 32.0 32.0 32.0 (a)160.0 
Purchase commitments
Fuel308.6 157.5 130.4 132.9 57.1 148.3 934.8 
Power62.7 57.1 57.5 57.5 57.5 275.2 567.5 
Payment due by period2020 2021 2022 2023 2024After 2024Total
Long-term debt(millions)
Principal$251.1
 $432.0
 $387.5
 $439.5
 $800.0
 $6,642.9
 $8,953.0
Interest350.8
 327.2
 304.1
 288.9
 279.7
 3,930.7
 5,481.4
Long-term debt of VIEs             
Principal32.3
 18.8
 —
 —
 —
 —
 51.1
Interest0.8
 0.2
 —
 —
 —
 —
 1.0
Lease commitments             
Operating leases20.5
 17.0
 14.1
 11.0
 9.2
 44.7
 116.5
Finance leases8.1
 7.4
 6.7
 5.8
 4.7
 46.2
 78.9
Pension and other post-retirement plans (a)
131.9
 131.9
 131.9
 131.9
 131.9
 (a)
 659.5
Purchase commitments             
Fuel486.9
 137.0
 83.2
 84.7
 17.1
 94.1
 903.0
Power47.3
 47.4
 47.6
 47.8
 41.7
 325.2
 557.0
Other147.7
 42.3
 30.0
 25.1
 19.4
 117.7
 382.2
Total contractual commitments (a)
$1,477.4
 $1,161.2
 $1,005.1
 $1,034.7
 $1,303.7
 $11,201.5
 $17,183.6
(a)(a)    Evergy expects to make contributions to the pension and other post-retirement plans beyond 2027 but the amounts are not yet determined.
Evergy expects to make contributions to the pension and other post-retirement plans beyond 2024 but the amounts are not yet determined.
Long-term debt includes current maturities. Long-term debt principal excludes $80.7$79.6 million of unamortized net discounts and debt issuance costs and a $125.5$92.1 million fair value adjustment recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger.merger that was completed in 2018. Variable rate interest obligations are based on rates as of December 31, 2019.2022.
Operating lease commitments include leases for office buildings, computer equipment, operating facilities, vehicles and 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 its proportionate share
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Table of the cost. Finance lease commitments include obligations for both principal and interest.Contents
Evergy expects to contribute $131.9$32.0 million to the pension and other post-retirement plans in 2020,2023, of which the majority is expected to be paid by Evergy Kansas Central and Evergy Metro. Additional contributions to the plans are expected beyond 20242027 in amounts at least sufficient to meet the greater of Employee Retirement Income Security Act of 1974, as amended (ERISA) or regulatory funding requirements; however, these amounts have not yet been determined. Amounts for years after 20202023 are estimates based on information available in determining the amount for 2020.2023. Actual amounts for years after 20202023 could be significantly different than the estimated amounts in the table above.
Fuel 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. Other represents individualagreements, capacity purchases and firm transmission service.
At December 31, 2022, Evergy has other insignificant commitments entered into in the ordinary course of business.
Evergy hasas well as other insignificant long-term liabilities recorded on its consolidated balance sheet, at December 31, 2019, which do not have a definitive cash payout date and are not included in the table above.

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Common Stock Dividends
The amount and timing of dividends 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 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 2020.2023.
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 18 to the consolidated financial statements for further discussion of restrictions on dividend payments.
Common Stock Repurchase Program
In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock. For 2019, Evergy had total repurchases of common stock of $1,628.7 million and had repurchased 28.8 million shares under the repurchase program. Since the start of the repurchase program in August 2018, Evergy has made total repurchases of common stock of $2,671.0 million and has repurchased 45.2 million shares under the repurchase program. Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committee of the Evergy Board conducts its review of ways to enhance long-term shareholder value, which is expected to conclude in the first half of 2020.

See Note 18 to the consolidated financial statements for more information regarding Evergy's common stock repurchase program.
Off-Balance Sheet Arrangements
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. In connection with the closing of the merger, Evergy assumed the guarantees previously provided to Evergy Missouri West by Great Plains Energy. 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, 2019, Evergy has provided $110.2 million of credit support for Evergy Missouri West as follows:
Evergy direct guarantees to Evergy Missouri West counterparties totaling $17.0 million, which expire in 2020, and
Evergy's guarantee of Evergy Missouri West long-term debt totaling $93.2 million, which includes debt with maturity dates ranging from 2020 to 2023.
Evergy has also guaranteed Evergy Missouri West's short-term debt, including its commercial paper program. At December 31, 2019, Evergy Missouri West had $93.4 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.
The Evergy Companies also have off-balance sheet arrangements in the form of letters of credit entered into in the ordinary course of business.

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Cash Flows
The following table presents Evergy's cash flows from operating, investing and financing activities.
 201920182017
 (millions)
Cash flows from operating activities$1,749.0
$1,497.8
$912.7
Cash flows from (used in) investing activities(1,080.3)197.4
(780.8)
Cash flows used in financing activities(805.8)(1,538.4)(131.6)
20222021
(millions)
Cash flows from operating activities$1,801.9 $1,351.7 
Cash flows used in investing activities(2,152.2)(1,913.8)
Cash flows from financing activities349.3 443.4 
Cash Flows from Operating Activities
Evergy's $251.2 million increase in cash flows from operating activities increased $450.2 million in 20192022, compared to 2018 was2021, primarily driven by:
•a $382.7 million increase in cash receipts for retail electric sales in 2022 primarily driven by favorable weather and an increase in weather-normalized demand; and
•$365.5 million of cash payments for net fuel and purchased power costs during the February 2021 winter weather event; partially offset by
•a $252.3$104.8 million increasedecrease in cash payments in 2022 primarily due to the inclusiontiming of Evergy Metro'spayments made to taxing authorities for property tax payments as well as various suppliers and Evergy Missouri West's cash flows from operating activitiesservice providers for goods and services purchased in the first five monthsordinary course of 2019business; and $35.6
•$89.9 million of merger success fees paid by Evergy and Evergy Kansas Central uponcash receipts related to non-regulated energy marketing margins earned during the completion of the merger in June 2018.February 2021 winter weather event.
Cash Flows from (used in)used in Investing Activities
Evergy's cash flows used in investing activities increased $1,277.7$238.4 million in 20192022, compared to 20182021, primarily driven by:
$1,154.2 million of cash acquired from Great Plains Energy in June 2018;
by a $243.6$194.0 million increase in additions to property, plant and equipment due to the inclusionincreases at Evergy Kansas
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Central, Evergy Metro and Evergy Missouri West activityof $83.2 million, $98.0 million and $17.0 million, 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.
Cash Flows from Financing Activities
Evergy's cash flows from financing activities decreased $94.1 million in 2022, compared to 2021, primarily driven by:
•a $167.6 million decrease in short-term debt borrowings primarily driven by:
◦a $275.5 million decrease at Evergy Missouri West due primarily to $296.4 million of fuel and purchased power costs related to the first five monthsFebruary 2021 winter weather event; partially offset by
◦a $111.0 million increase at Evergy Metro primarily due to increased borrowings in 2022 driven by higher cash capital expenditures; and
•$112.5 million of 2019; andEvergy common stock issued in April 2021 pursuant to a securities purchase agreement with an affiliate of Bluescape Energy Partners, LLC (Bluescape); partially offset by
$140.6•an $81.0 increase in collateralized short-term debt, net primarily due to Evergy's increase in retail electric accounts receivable balances in 2022, resulting in a higher level of retail electric receivables available for sale through Evergy's receivable sales facilities;
•a $70.4 million increase in proceeds from the settlementlong-term debt, net primarily due to Evergy Missouri West's issuance of deal contingent interest rate swaps$300.0 million of 5.15% FMBs in June 2018;December 2022 and Evergy Missouri West's issuance of $250.0 million of 3.75% FMBs in March 2022; partially offset by Evergy Missouri West's issuance of $500.0 million of Series A, B and C Senior Notes in April 2021; and
an increase•a $34.3 million decrease in the repayment of $154.9 million in proceeds from COLI investments,borrowings against cash surrender value of corporate-owned life insurance primarily from Evergy Kansas Central due to a higher number of policy settlements in 2019.2021.
Cash Flows used in Financing Activities
Evergy's cash flows used in financing activities decreased $732.6 million in 2019 compared to 2018 primarily driven by:
a $2,081.8 million increase in proceeds from long-term debt, net, as further described in Note 13 to the consolidated financial statements; partially offset by
a $586.4 million increase of repurchased common stock under the common stock repurchase program, as further described in Note 18 to the consolidated financial statements;
a $305.3 million increase in retirement of long-term debt, as further described in Note 13 to the consolidated financial statements;
a $211.0 million decrease in collateralized short-term debt, net borrowings primarily due to the establishment of Evergy Kansas Central’s receivable sale facility in the fourth quarter of 2018;
a $123.6 million increase in the repayment of borrowings from the cash surrender value of COLI, primarily from Evergy Kansas Central due to a higher number of policy settlements in 2019; and
a $69.8 million payment for the settlement of Evergy's interest rate swap that was designated as a cash flow hedge of its issuance of $800.0 million of 2.90% Senior Notes in September 2019.

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EVERGY KANSAS CENTRAL, 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 Evergy Kansas Central's comparative results of operations.
2022Change2021
 (millions)
Operating revenues$3,055.9 $208.6 $2,847.3 
Fuel and purchased power855.5 216.8 638.7 
SPP network transmission costs323.0 32.6 290.4 
Operating and maintenance536.3 5.5 530.8 
Depreciation and amortization484.6 17.4 467.2 
Taxes other than income tax216.5 12.6 203.9 
Income from operations640.0 (76.3)716.3 
Other expense, net(29.0)(21.4)(7.6)
Interest expense181.8 21.5 160.3 
Income tax expense12.3 (39.4)51.7 
Equity in earnings of equity method investees, net of income taxes4.0 — 4.0 
Net income420.9 (79.8)500.7 
Less: Net income attributable to noncontrolling interests12.3 0.1 12.2 
Net income attributable to Evergy Kansas Central, Inc.$408.6 $(79.9)$488.5 
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 2019 Change 2018
 (millions)
Operating revenues$2,507.4
 $(107.5) $2,614.9
Fuel and purchased power493.0
 (106.2) 599.2
SPP network transmission costs251.3
 (8.6) 259.9
Operating and maintenance530.5
 (110.2) 640.7
Depreciation and amortization443.8
 52.9
 390.9
Taxes other than income tax192.3
 18.6
 173.7
Income from operations596.5
 46.0
 550.5
Other expense, net(12.9) 20.6
 (33.5)
Interest expense177.0
 0.2
 176.8
Income tax expense (benefit)52.1
 56.4
 (4.3)
Equity in earnings of equity method investees, net of income taxes4.6
 —
 4.6
Net income359.1
 10.0
 349.1
Less: Net income attributable to noncontrolling interests15.7
 5.5
 10.2
Net income attributable to Evergy Kansas Central, Inc.$343.4
 $4.5
 $338.9
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Evergy Kansas Central Gross Margin (GAAP) and Utility Gross Margin and MWh Sales(non-GAAP)
The following table summarizes Evergy Kansas Central's utility gross margin (GAAP) and MWhs sold.
 Revenues and ExpensesMWhs Sold
 2019 Change 2018 2019 Change 2018
Retail revenues(millions)(thousands)
Residential$793.9
 $(52.5) $846.4
 6,460
 (276) 6,736
Commercial709.1
 6.3
 702.8
 7,399
 (97) 7,496
Industrial401.3
 4.9
 396.4
 5,622
 (20) 5,642
Other retail revenues21.0
 1.0
 20.0
 45
 (13) 58
Total electric retail1,925.3
 (40.3) 1,965.6
 19,526
 (406) 19,932
Wholesale revenues239.9
 (106.2) 346.1
 7,540
 (2,629) 10,169
Transmission revenues273.3
 (15.6) 288.9
 N/A
 N/A
 N/A
Other revenues68.9
 54.6
 14.3
 N/A
 N/A
 N/A
Operating revenues2,507.4
 (107.5) 2,614.9
 27,066
 (3,035) 30,101
Fuel and purchased power(493.0) 106.2
 (599.2)      
SPP network transmission costs(251.3) 8.6
 (259.9)      
Utility gross margin (a)
$1,763.1
 $7.3
 $1,755.8
      
(a)Utilitysold and reconciles Evergy Kansas Central's gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.
(GAAP) to Evergy Kansas Central's utility gross margin increased $7.3(non-GAAP). See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).
 Revenues and ExpensesMWhs Sold
2022Change20212022Change2021
Retail revenues(millions)(thousands)
Residential$980.1 $156.0 $824.1 6,954 389 6,565 
Commercial822.9 128.8 694.1 7,296 184 7,112 
Industrial465.7 74.0 391.7 5,658 125 5,533 
Other retail revenues17.9 0.8 17.1 40 — 40 
Total electric retail2,286.6 359.6 1,927.0 19,948 698 19,250 
Wholesale revenues389.9 (63.2)453.1 11,037 862 10,175 
Transmission revenues305.0 (17.9)322.9 N/AN/AN/A
Other revenues74.4 (69.9)144.3 N/AN/AN/A
Operating revenues3,055.9 208.6 2,847.3 30,985 1,560 29,425 
Fuel and purchased power(855.5)(216.8)(638.7)
SPP network transmission costs(323.0)(32.6)(290.4)
Operating and maintenance (a)
(261.6)2.5 (264.1)
Depreciation and amortization(484.6)(17.4)(467.2)
Taxes other than income tax(216.5)(12.6)(203.9)
Gross margin (GAAP)914.7 (68.3)983.0 
Operating and maintenance (a)
261.6 (2.5)264.1 
Depreciation and amortization484.6 17.4 467.2 
Taxes other than income tax216.5 12.6 203.9 
Utility gross margin (non-GAAP)$1,877.4 $(40.8)$1,918.2 
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $274.7 million and $266.7 million for 2022 and 2021, respectively.
Evergy Kansas Central's gross margin (GAAP) decreased $68.3 million in 20192022, compared to 20182021, and Evergy Kansas Central's utility gross margin (non-GAAP) decreased $40.8 million in 2022, compared to 2021, both measures were driven by:
•a $27.9$96.6 million decrease in non-regulated energy marketing margins recognized at Evergy Kansas Central related to the February 2021 winter weather event;
•a $33.8 million decrease related to other impacts from the February 2021 winter weather event driven by higher wholesale sales at Evergy Kansas Central's non-regulated 8% ownership share of JEC due to higher wholesale prices and MWhs sold in February 2021;
•a $32.8 million decrease in transmission revenues collected from customers through Evergy Kansas Central's FERC TFR which is to be refunded to customers in accordance with a December 2022 FERC order; and
•a $22.7 million decrease in transmission revenues related to the amortization of excess deferred income taxes authorized by FERC in December 2022 and which is offset in income tax expense; partially offset by
•an $80.2 million increase from newprimarily due to higher retail rates effective in September 2018, net of a $69.8 million provision for rate refund recorded in 2018 for the change in the corporate income tax rate causedsales driven by the TCJA;favorable weather (cooling degree days increased by 15% and

 heating degree days increased by 12%) and higher weather-normalized commercial and industrial demand; partially offset by lower weather-normalized residential demand;
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•a $23.1$37.6 million increase in transmission revenue primarily due to one-timeupdated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2022;
•an $11.2 million increase due to mark to market gains related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's non-regulated 8% ownership share of JEC;
•an $8.3 million increase due to higher revenues collected related to property taxes which has a direct offset in taxes other than income tax; and
•a $7.8 million increase due to the cessation of annual bill credits recorded in June 2018by Evergy Kansas Central through January 2022 as a result of the expiration of conditions in the KCC order granting the 2018 merger order; partially offset byof Evergy Kansas Central and Great Plains Energy.
a $30.9 millionAdditionally, the decrease primarily due to lower retail sales driven by cooler summer weather. For 2019 compared to 2018, cooling degree days decreased 15%; and
a $12.8 million decrease related toin Evergy Kansas Central's TDC rider.gross margin (GAAP) was also driven by:
•a $17.4 million increase in depreciation and amortization expense as described further below; and
•a $12.6 million increase in taxes other than income taxes as described further below.
Evergy Kansas Central Operating and Maintenance
Evergy Kansas Central's operating and maintenance expense decreased $110.2increased $5.5 million in 20192022, compared to 20182021, primarily driven by:
$51.9•an $8.7 million of merger-relatedincrease in costs incurredbilled for common use assets in 2018, consisting of:2022 from Evergy Metro related to facilities and software assets;
◦$44.2 million of voluntary severance and change in control payments as well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding equity compensation awards in accordance with the Amended Merger Agreement; and
◦$21.5 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; partially offset by
◦a $13.8 million decrease in operating and maintenance expense due to the net reallocation of incurred merger transition costs between Evergy Kansas Central, Evergy, Evergy Metro and Evergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Evergy Kansas Central in accordance with the KCC merger order;
•a $22.9$5.8 million increase in certain labor and employee benefits expenses;
•a $2.2 million increase in various administrative and general operating and maintenance expenses primarily due to increases in regulatory assessments from the KCC;
•a $1.5 million increase in various transmission and distribution operating and maintenance expenses primarily due to higher contractor costs; partially offset by a $3.5 million decrease in vegetation management costs in 2022;
•a $1.1 million increase in credit loss expense primarily due to a lower level of assumed uncollectible accounts and higher level of write-offs in 2022; and
•a $0.9 million increase in plant operating and maintenance expense at fossil-fuel generating units primarily due to:
◦$12.3 million of obsolete inventory write-offs at retiring fossil-fuel units in 2018;
◦a $7.3 million decrease due to the retirement of Evergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center and Units 1 and 2 at Gordan Evans Energy Center in the fourth quarter of 2018; and
◦$0.7 million of voluntary severance expenses incurred in 2018 related to the Local 1523 union voluntary exit program; partially offset by
◦an $8.4 million increase due to the write-off of a regulatory asset for costs incurred during the JEC lease extension, see Note 5 to the consolidated financial statements;
driven by maintenance outages at La Cygne Station and JEC in 2022; partially offset by a $19.2maintenance outage at Lawrence Energy Center in 2021; partially offset by
•a $6.8 million decrease in various administrativecosts recorded in 2022 associated with executive transition, including inducement bonuses, severance agreements and general operating and maintenance expenses primarily driven by other transition expenses;
•a $10.0$6.6 million decrease in laborcosts incurred in 2022 related to non-regulated energy marketing margins recognized during the February 2021 winter weather event; and employee benefits expense primarily due to lower employee headcount and pension and post-retirement costs
•a $3.0 million decrease in 2019 and $5.3 million of voluntary severanceadvisor expenses incurred in the third quarter of 2018 related to a Wolf Creek voluntary exit program;
a $9.6 million decrease in transmission and distribution operating and maintenance expense primarily due to a higher level of vegetation management activity in 2018; and
a $6.3 million decrease in plant operating and maintenance expense at nuclear generating units related to Wolf Creek; partially offset by
$9.3 million of voluntary severance expenses incurred in 2019.2022 associated with strategic planning.
Evergy Kansas Central Depreciation and Amortization
Evergy Kansas Central's depreciation and amortization expense increased $52.9$17.4 million in 20192022, compared to 20182021, primarily driven by:
a $32.4 million increase primarily due to a changeby higher capital additions in depreciation rates as a result of Evergy Kansas Central's rate case effective in September 2018; and
a $20.5 million increase primarily due to capital additions.

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2022.
Evergy Kansas Central Taxes Other Than Income Tax
Evergy Kansas Central's taxes other than income tax increased$18.6 $12.6 million in 20192022, compared to 2018 primarily2021, driven by an $18.3 million increase in property taxes.taxes in Kansas primarily due to higher assessed property tax values.
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Evergy Kansas Central Other Expense, Net
Evergy Kansas Central's other expense, net decreased $20.6increased $21.4 million in 20192022, compared to 2018the same period in 2021, primarily driven by:
•a $12.4$6.4 million decreaseincrease due to recordinglower equity AFUDC primarily driven by higher COLI benefitsaverage short-term debt balances in 2019;2022;
•a $4.2$5.1 million decreaseincrease due to lower investment earnings primarily driven by $4.0 million of higher net unrealized gainslosses in Evergy Kansas Central's rabbi trust in 2019; and2022;
•$2.8 million of other income recorded in 2021 related to contract termination fees;
•a $3.4$2.3 million decreaseincrease due to recording lower corporate-owned life insurance (COLI) benefits in 2022; and
•a $1.5 million increase due to higher pension non-service costs in 2019.2022.
Evergy Kansas Central Interest Expense
Evergy Kansas Central's interest expense increased $21.5 million in 2022, compared to 2021, primarily driven by a $15.8 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates in 2022.
Evergy Kansas Central Income Tax Expense
Evergy Kansas Central's income tax expense increased $56.4decreased $39.4 million in 20192022, compared to 20182021, primarily driven by:
•a $52.6 million increase related to the revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018; and
an $18.9 million increase due to higher pre-tax income; partially offset by
a $5.3$24.9 million decrease due to flow-through itemslower pre-tax income in 2022; and
•a $16.5 million decrease primarily driven bydue to higher amortization of excess deferred income taxes.taxes authorized by FERC in December 2022.

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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.
2022Change2021
 (millions)
Operating revenues$1,970.6 $56.9 $1,913.7 
Fuel and purchased power630.7 17.2 613.5 
Operating and maintenance334.4 (31.0)365.4 
Depreciation and amortization337.8 16.8 321.0 
Taxes other than income tax130.0 3.8 126.2 
Other regulatory disallowances5.5 5.5 — 
Income from operations532.2 44.6 487.6 
Other expense, net(15.8)(2.7)(13.1)
Interest expense110.7 0.9 109.8 
Income tax expense50.3 (2.1)52.4 
Net income$355.4 $43.1 $312.3 
60
 2019 Change 2018
 (millions)
Operating revenues$1,806.5
 $(16.6) $1,823.1
Fuel and purchased power482.1
 (38.5) 520.6
Operating and maintenance451.9
 (42.3) 494.2
Depreciation and amortization318.4
 37.1
 281.3
Taxes other than income tax127.6
 10.4
 117.2
Income from operations426.5
 16.7
 409.8
Other expense, net(15.8) 10.1
 (25.9)
Interest expense119.8
 (13.9) 133.7
Income tax expense35.7
 (51.6) 87.3
Net income$255.2
 $92.3
 $162.9
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Evergy Metro Gross Margin (GAAP) and Utility Gross Margin and MWh Sales(non-GAAP)
The following table summarizes Evergy Metro's utility gross margin (GAAP) and MWhs sold.
 Revenues and Expenses MWhs Sold
 2019 Change 2018 2019 Change 2018
Retail revenues(millions) (thousands)
Residential$712.4
 (23.2) $735.6
 5,425
 (261) 5,686
Commercial786.1
 (8.7) 794.8
 7,623
 (159) 7,782
Industrial136.9
 (1.9) 138.8
 1,713
 (41) 1,754
Other retail revenues16.3
 5.9
 10.4
 75
 (1) 76
Total electric retail1,651.7
 (27.9) 1,679.6
 14,836
 (462) 15,298
Wholesale revenues70.9
 17.4
 53.5
 6,098
 1,081
 5,017
Transmission revenues17.5
 3.0
 14.5
 N/A
 N/A
 N/A
Other revenues66.4
 (9.1) 75.5
 N/A
 N/A
 N/A
Operating revenues1,806.5
 (16.6) 1,823.1
 20,934
 619
 20,315
Fuel and purchased power(482.1) 38.5
 (520.6)      
Utility gross margin (a)
$1,324.4
 $21.9
 $1,302.5
 

   

(a) Utilitysold and reconciles Evergy Metro's gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.
(GAAP) to Evergy Metro's utility gross margin (non-GAAP). See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).
 Revenues and ExpensesMWhs Sold
2022Change20212022Change2021
Retail revenues(millions)(thousands)
Residential$746.4 54.5 $691.9 5,733 216 5,517 
Commercial758.6 45.3 713.3 7,464 178 7,286 
Industrial127.0 5.0 122.0 1,701 32 1,669 
Other retail revenues11.5 2.3 9.2 71 1 70 
Total electric retail1,643.5 107.1 1,536.4 14,969 427 14,542 
Wholesale revenues111.9 (130.7)242.6 5,751 228 5,523 
Transmission revenues18.2 1.1 17.1 N/AN/AN/A
Other revenues197.0 79.4 117.6 N/AN/AN/A
Operating revenues1,970.6 56.9 1,913.7 20,720 655 20,065 
Fuel and purchased power(630.7)(17.2)(613.5)
Operating and maintenance (a)
(203.6)(0.9)(202.7)
Depreciation and amortization(337.8)(16.8)(321.0)
Taxes other than income tax(130.0)(3.8)(126.2)
Gross margin (GAAP)668.5 18.2 650.3 
Operating and maintenance (a)
203.6 0.9 202.7 
Depreciation and amortization337.8 16.8 321.0 
Taxes other than income tax130.0 3.8 126.2 
Utility gross margin (non-GAAP)$1,339.9 $39.7 $1,300.2 
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $130.8 million and $162.7 million for 2022 and 2021, respectively.
Evergy Metro's gross margin (GAAP) increased $21.9$18.2 million in 20192022, compared to 20182021 and Evergy Metro's utility gross margin (non-GAAP) increased $39.7 million in 2022, compared to 2021, both measures were driven by:
•a $40.4$41.9 million increase primarily due to higher retail sales driven by favorable weather (heating degree days increased by 12%) and higher weather-normalized demand;
•an $11.4 million increase due to impacts from new retail rates effectivethe February 2021 winter weather event driven by jurisdictional allocation differences currently present between Evergy Metro's fuel recovery mechanisms in December 2018, net of a $72.4 million provision for rateMissouri and Kansas regarding its refund recorded for 2018to customers for the changenet increase in the corporate income tax rate caused by the TCJA;wholesale revenues in February 2021; and
•a $22.4$3.1 million increase in revenue due to one-timethe cessation of annual bill credits recorded in June 2018by Evergy Metro through January 2022 as a result of the expiration of conditions in the KCC order granting the 2018 merger of Evergy Kansas Central and MPSC merger orders;Great Plains Energy; partially offset by
•a $30.9$16.7 million decrease primarilyreduction to operating revenues due to lower retail sales driven by cooler summer weather. For 2019 comparedrecording an estimated refund obligation to 2018, cooling degree days decreased 18%;customers related to Evergy Metro's ERSP. See Note 4 of the consolidated financial statements for additional information.
Additionally, the increase in Evergy Metro's gross margin (GAAP) was also partially offset by:
•a $16.8 million increase in depreciation and amortization expense as described further below; and
•a $10.0$3.8 million decrease for recovery of programs costs for energy efficiency programs under MEEIA, which have a direct offsetincrease in operating and maintenance expense.

taxes other than income taxes as described further below.
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Evergy Metro Operating and Maintenance
Evergy Metro's operating and maintenance expense decreased$42.3 $31.0 million in 20192022, compared to 20182021, primarily driven by:
•a $26.4$10.1 million decrease in plant operatingcertain labor and maintenance expense at fossil-fuel generating units primarily driven by:employee benefits expenses;
◦a $10.9 million decrease due to the retirement of Montrose Station in 2018, which includes $7.3 million of obsolete inventory write-offs in 2018;
◦a $3.7 million decrease due to an extended maintenance outage at Iatan No. 2 in 2018; and
◦$3.2 million of voluntary severance expenses incurred in the third quarter of 2018 related to the Local 412 union voluntary exit program;
a $23.8•an $8.8 million decrease in various administrative and general operating and maintenance expenses, which includes $5.3 million of voluntary severance expenses incurred in the third quarter of 2018 related to a Wolf Creek voluntary exit program and a $3.5 million decrease in injuries and damagescredit loss expense primarily due to an increaseresuming collection activities for accounts with lower balances due;
•a $7.9 million decrease due to higher costs billed for common use assets in estimated workers compensation losses recorded in 2018;2022, primarily to Evergy Kansas Central related to facilities and software assets; and
•a $10.0$1.3 million decrease in program costs for energy efficiency programs under MEEIA, which have a direct offsetrecorded in revenue;
a $6.8 million decrease in plant operating2021 associated with executive transition, including inducement bonuses, severance agreements and maintenance expense at nuclear generating units related to Wolf Creek; and
$2.1 million of merger-related costs incurred in 2018;other transition expenses; partially offset by
•a $23.2$4.3 million increase in operating and maintenance expense due to the net reallocation of incurred merger transition costs between Evergy Metro, Evergy, Evergy Kansas Central and Evergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Evergy Metro in accordance with the KCC and MPSC merger orders;
a $7.1 million increase invarious transmission and distribution operating and maintenance expenseexpenses primarily due to higher contractor costs incurred from storms that occurredand a $3.0 million increase in January 2019; and
$6.8 million of voluntary severance expenses incurredvegetation management costs in 2019.2022.
Evergy Metro Depreciation and AmortizationExpense
Evergy Metro's depreciation and amortization expense increased $37.1$16.8 million in 20192022, compared to 20182021, primarily driven by:
a $19.3 million increase primarily due toby higher capital additions; and
a $17.8 million increase due to a changeadditions in depreciation rates effective in December 2018 as a result of Evergy Metro's 2018 Kansas rate case.2022.
Evergy Metro Taxes Other Than Income Tax
Evergy Metro's taxes other than income tax increased $10.4$3.8 million in 20192022, compared to 2018 primarily2021, driven by a $7.9 millionan increase in property taxes.

taxes in Missouri and Kansas primarily due to higher assessed property tax values.
Evergy Metro InterestOther Expense, Net
Evergy Metro's interestother expense, decreased $13.9net increased $2.7 million in 20192022, compared to 2018 primarily driven by a $12.8 million net decrease due to the repayment of $400.0 million of 7.15% Mortgage Bonds at maturity in April 2019, which decreased interest expense by $25.4 million, partially offset by a $12.6 million increase due to the issuance of $400.0 million of 4.125% Mortgage Bonds in March 2019.

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Evergy Metro Income Tax Expense
Evergy Metro's income tax expense decreased $51.6 million in 2019 compared to 20182021, primarily driven by:
•a $51.0 million decrease related to the revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018; and
a $21.4 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes; partially offset by
a $15.5 million increase related to the revaluation of deferred income tax assets and liabilities as a result of the enactment of Missouri state income tax reform in June 2018; and
a $10.8$4.3 million increase due to higher pre-tax income.pension non-service costs in 2022; and
•$2.4 million of other income recorded in 2021 related to contract termination fees; partially offset by
•a $2.7 million decrease due to higher investment earnings primarily due to an increase in interest income from money pool lending; and
•a $1.6 million decrease due to higher equity AFUDC in 2022 primarily driven by higher construction work in progress balances in 2022.
ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 
In the ordinary course of business, Evergy 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.
The Evergy Companies are exposed to market risks associated with commodity price and supply, interest rates and equitysecurity prices. Commodity price risk is the potential adverse price impact related to the purchase or sale of electricity and energy-related products.products, including natural gas and coal. 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 to fund non-qualified retirement benefits 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 Evergy's operating results. During the ordinary course of business, the Evergy 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. Evergy could experience losses, which could have a material adverse effect on its results of operations or financial position, due to many factors, including unexpectedly large or
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rapid movements or disruptions in the energy markets, 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
From time to time, Evergy utilizes derivative instruments to execute risk management and hedging strategies. Derivative instruments, such as futures, forward contracts, swaps or options, derive their value 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.
Commodity Price Risk
The Evergy Companies engage in the wholesale and retail sale of electricity and are exposedas part of their regulated electric operations in addition to non-regulated energy marketing activities. These activities expose the Evergy Companies to risks associated with the price of 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. Evergy's exposure to fluctuations in these factors is limited by the cost-based regulation of its regulated operations in Kansas and Missouri as these operations are typically allowed to recover substantially all of these costs through cost-recovery mechanisms, primarily 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. The majority of derivative instruments used to manage Evergy's commodity price exposure are either not designated as hedges or do not qualify for hedge accounting. Mark-to-market changes for these instruments entered into by regulated businesses are reflected as regulatory assets or regulatory liabilities on Evergy's consolidated balance sheets. Derivative instruments entered into for non-regulated energy marketing activities are marked-to-market each period, with changes in the fair value of the derivative instruments reflected in earnings. See Note 13 to the consolidated financial statements for more information.

Value at Risk (VaR) Associated with Energy Marketing Activities
Management uses a risk measurement model, which calculates VaR to measure Evergy's commodity price risk associated with its trading portfolio related to non-regulated energy marketing activities. The VaR is calculated using historical 30 day exponentially weighted volatilities and correlations and assumes a 95% confidence level and a one-day holding period. Based on this VaR analysis, as of December 31, 2022, a near term typical change in commodity prices is not expected to materially impact net income, cash flows or financial condition.
The following table shows the end, high, average and low market risk associated with its trading portfolio related to non-regulated energy marketing activities as measured by VaR for the periods indicated.
VaR Model Trading Portfolio
Year EndedYear Ended
December 31, 2022December 31, 2021
EndHighAverageLowEndHighAverageLow
(millions)(millions)
$0.3 $1.9 $0.6 $— $0.3 $1.3 $0.4 $0.1 
Management back-tests VaR results against performance due to actual price movements. Based on the assumed 95% confidence interval, the performance due to actual price movements would be expected to exceed the VaR at least once every 20 trading days.
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Interest Rate Risk
Evergy manages interest rate risk and short- and long-term liquidity by limiting its exposure to variable interest rate debt and debt-like financial instruments to a percentage of total debt, diversifying maturity dates and, from time to time, entering into interest rate hedging transactions. At December 31, 2019, 3%2022, 17.1% of Evergy's long-termtotal debt was variable rate debt. Evergy also has(including short-term borrowings consisting of short-term debt in excess of utility construction work in progress balances that is not eligible for capitalization as AFUDC and current maturities of fixed rate debt that areborrowings under Evergy's receivable sale facilities) were exposed to interest rate risk. Evergy computes and presents information regarding the sensitivity to changes in interest rates for variable rate debt, short-term borrowings and current maturities of fixed rate debt by assuming a 100-basis-point change in the current interest rates applicable to such debt over the remaining time the debt is outstanding.
At December 31, 2022, Evergy had $1,113.7$1,903.1 million of short-term borrowings, variable rate debt including notes payable, commercial paper and current maturities of fixed rate debt as of December 31, 2019.exposed to variable interest rate sensitivity. A 100-basis-point change in interest rates applicable to this debt would impact Evergy's income before income taxes on an annualized basis by approximately $9.9 million.$17.1 million, net of AFUDC borrowed funds which represents the allowed cost of capital used to finance utility construction activity and is a reduction of interest expense.
Credit Risk
Evergy is exposed to counterparty 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 largely mitigated by Evergy's large number of individual customers spread across diverse customer classes and the ability to recover 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 minimize their overall credit risk and monitor exposure. Credit risk of the Evergy Companies' derivative instruments relates to the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. See Note 13 to the consolidated financial statements for more information on potential loss on counterparty exposure for derivative instruments as of December 31, 2022.
Investment Risk
Evergy maintains trust funds, as required by the NRC, to fund its 94% share of decommissioning the Wolf Creek nuclear power plant and also maintains trusts to fund pension benefits as well as certain non-qualified retirement benefits. As of December 31, 2019,2022, these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet. The equity securities in the trusts are exposed to price fluctuations in equity markets and the value of debt securities are exposed to changes in interest rates and other market factors.
As nuclear decommissioning costs are currently recovered in customer rates, Evergy defers both realized and unrealized gains and losses for these securities as an offset to its regulatory assetliability for decommissioning Wolf Creek and as such, fluctuations in the value of these securities do not impact earnings. A significant decline in the value of pension or non-qualified retirement assets could require Evergy to increase funding of its pension plans in future periods, which could adversely affect cash flows in those periods. In addition, a decline in the fair value of these plan assets, in the absence of additional cash contributions to the plans by Evergy, could increase the amount of pension cost required to be recorded in future periods by Evergy.


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.
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm
Evergy, Inc.
5766
Evergy Kansas Central, Inc.
6069
Evergy Metro, Inc.
6172
Evergy, Inc.
6275
6376
6578
6679
Evergy Kansas Central, Inc.
6780
6881
7083
7184
Evergy Metro, Inc.
7285
7386
7588
7689
Combined Notes to Consolidated Financial Statements
Note 1:
7790
Note 2:
8593
Note 3:
90101
Note 4:
93
Note 5:
Rate Matters and Regulation
94102
Note 6:5:
101112
Note 7:6:
101112
Note 8:7:
102113
Note 9:8:
103114
Note 10:9:
104115
Note 11:10:
116128
Note 12:11:
120130
Note 13:12:
121131
Note 13:
134
Note 14:
124138
Note 15:
129143
Note 16:
133148
Note 17:
133149
Note 18:
135150
Note 19:
136151
Note 20:
137152
Note 21:
143157
Note 22:
Quarterly Operating Results (Unaudited)
146

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Evergy, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy, Inc. and subsidiaries (the "Company") as of December 31, 20192022 and 2018,2021, 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, 2019,2022, 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, 20192022 and 2018,2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019,2022, 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, 2019,2022, 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 March 2, 2020,February 23, 2023, 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 54 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 have 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
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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.disclosures.
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,interveners, and other publicly available

58
67




information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedenceprecedents 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 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 with the assistance of professionals in our firm having expertise in the application of accounting guidance for early retirements of regulated plants.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  
March 2, 2020February 23, 2023 

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






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68

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Evergy Kansas Central, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy Kansas Central, Inc. and subsidiaries (the "Company") as of December 31, 20192022 and 2018,2021, the related consolidated statements of income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2019,2022, 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, 20192022 and 2018,2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019,2022, 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 (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.
69
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 interveners, 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.
•We evaluated the reasonableness of management's judgments for potential indicators of abandonment by performing the following:
70
◦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  
March 2, 2020February 23, 2023  

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














60
71

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, 20192022 and 2018,2021, 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, 2019,2022, 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, 20192022 and 2018,2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019,2022, 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 have 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.
72
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 interveners, 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.
•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.
73
•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  
March 2, 2020February 23, 2023  

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




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74

EVERGY, INC.
Consolidated Statements of Comprehensive Income
Year Ended December 31202220212020
(millions, except per share amounts)
OPERATING REVENUES$5,859.1 $5,586.7 $4,913.4 
OPERATING EXPENSES:
Fuel and purchased power1,821.2 1,557.0 1,099.0 
SPP network transmission costs323.0 290.4 263.2 
Operating and maintenance1,085.3 1,107.5 1,163.0 
Depreciation and amortization929.4 896.4 880.1 
Taxes other than income tax398.1 380.5 364.2 
Sibley Unit 3 impairment loss and other regulatory disallowances34.9 — — 
Total Operating Expenses4,591.9 4,231.8 3,769.5 
INCOME FROM OPERATIONS1,267.2 1,354.9 1,143.9 
OTHER INCOME (EXPENSE):
Investment earnings9.4 59.9 10.8 
Other income29.9 46.3 31.3 
Other expense(97.3)(87.4)(78.2)
Total Other Income (Expense), Net(58.0)18.8 (36.1)
Interest expense404.0 372.6 383.9 
INCOME BEFORE INCOME TAXES805.2 1,001.1 723.9 
Income tax expense47.5 117.4 102.2 
Equity in earnings of equity method investees, net of income taxes7.3 8.2 8.3 
NET INCOME765.0 891.9 630.0 
Less: Net income attributable to noncontrolling interests12.3 12.2 11.7 
NET INCOME ATTRIBUTABLE TO EVERGY, INC.$752.7 $879.7 $618.3 
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC. (see Note 1)
Basic earnings per common share$3.27 $3.84 $2.72 
Diluted earnings per common share$3.27 $3.83 $2.72 
AVERAGE COMMON SHARES OUTSTANDING
Basic229.9 229.0 227.2 
Diluted230.3 229.6 227.5 
COMPREHENSIVE INCOME
NET INCOME$765.0 $891.9 $630.0 
Derivative hedging activity
Reclassification to expenses, net of tax5.5 5.5 3.0 
Derivative hedging activity, net of tax5.5 5.5 3.0 
Defined benefit pension plans
Net gain (loss) arising during period5.0 (0.1)(3.0)
Income tax (expense) benefit(1.2)— 0.7 
Net gain (loss) arising during period, net of tax3.8 (0.1)(2.3)
Amortization of net losses included in net periodic benefit costs, net of tax0.2 — (0.1)
Change in unrecognized pension expense, net of tax4.0 (0.1)(2.4)
Total other comprehensive income9.5 5.4 0.6 
COMPREHENSIVE INCOME774.5 897.3 630.6 
Less:  Comprehensive income attributable to noncontrolling interest12.3 12.2 11.7 
COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC.$762.2 $885.1 $618.9 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
75
EVERGY, INC.
Consolidated Statements of Comprehensive Income
     
Year Ended December 31 2019 2018 2017
 (millions, except per share amounts)
OPERATING REVENUES $5,147.8
 $4,275.9
 $2,571.0
OPERATING EXPENSES:      
Fuel and purchased power 1,265.0
 1,078.7
 541.5
SPP network transmission costs 251.3
 259.9
 247.9
Operating and maintenance 1,218.5
 1,115.8
 563.5
Depreciation and amortization 861.7
 618.8
 371.7
Taxes other than income tax 365.5
 269.1
 167.6
Total Operating Expenses 3,962.0
 3,342.3
 1,892.2
INCOME FROM OPERATIONS 1,185.8
 933.6
 678.8
OTHER INCOME (EXPENSE):      
Investment earnings 11.0
 8.8
 4.0
Other income 26.9
 15.5
 8.3
Other expense (76.9) (78.7) (39.1)
Total Other Expense, Net (39.0) (54.4) (26.8)
Interest expense 374.0
 279.6
 171.0
INCOME BEFORE INCOME TAXES 772.8
 599.6
 481.0
Income tax expense 97.0
 59.0
 151.2
Equity in earnings of equity method investees, net of income taxes 9.8
 5.4
 6.7
NET INCOME 685.6
 546.0
 336.5
Less: Net income attributable to noncontrolling interests 15.7
 10.2
 12.6
NET INCOME ATTRIBUTABLE TO EVERGY, INC. $669.9
 $535.8
 $323.9
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY (see Note 1)      
Basic earnings per common share $2.80
 $2.50
 $2.27
Diluted earnings per common share $2.79
 $2.50
 $2.27
AVERAGE COMMON SHARES OUTSTANDING      
Basic 239.5
 213.9
 142.5
Diluted 239.9
 214.1
 142.6
COMPREHENSIVE INCOME      
NET INCOME $685.6
 $546.0
 $336.5
OTHER COMPREHENSIVE INCOME      
Derivative hedging activity      
Loss on derivative hedging instruments (64.4) (5.4) —
Income tax benefit 16.5
 1.4
 —
Net loss on derivative hedging instruments (47.9) (4.0) —
Reclassification to expenses, net of tax 1.5
 —
 —
Derivative hedging activity, net of tax (46.4) (4.0) —
Defined benefit pension plans      
Net gain (loss) arising during period (0.8) 1.4
 —
Income tax expense (benefit) 0.2
 (0.4) —
Net gain (loss) arising during period, net of tax (0.6) 1.0
 —
Change in unrecognized pension expense, net of tax (0.6) 1.0
 —
Total other comprehensive loss (47.0) (3.0) —
Comprehensive income 638.6
 543.0
 336.5
Less: comprehensive income attributable to noncontrolling interest 15.7
 10.2
 12.6
COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC. $622.9
 $532.8
 $323.9
EVERGY, INC.
Consolidated Balance Sheets
December 31
 20222021
ASSETS(millions, except share amounts)
CURRENT ASSETS: 
Cash and cash equivalents$25.2 $26.2 
Receivables, net of allowance for credit losses of $31.4 and $32.9, respectively315.3 221.6 
Accounts receivable pledged as collateral359.0 319.0 
Fuel inventory and supplies672.9 566.7 
Income taxes receivable9.3 28.0 
Regulatory assets368.0 424.1 
Prepaid expenses47.8 49.3 
Other assets44.5 75.4 
Total Current Assets1,842.0 1,710.3 
PROPERTY, PLANT AND EQUIPMENT, NET22,136.5 21,002.6 
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET140.7 147.8 
OTHER ASSETS:  
Regulatory assets1,846.3 1,991.1 
Nuclear decommissioning trust fund653.3 768.7 
Goodwill2,336.6 2,336.6 
Other534.5 563.4 
Total Other Assets5,370.7 5,659.8 
TOTAL ASSETS$29,489.9 $28,520.5 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

6276

EVERGY, INC.
Consolidated Balance Sheets
    
 December 31
 2019 2018
ASSETS(millions, except share amounts)
CURRENT ASSETS:       
Cash and cash equivalents $23.2
   $160.3
 
Receivables, net 228.5
   193.7
 
Accounts receivable pledged as collateral 339.0
   365.0
 
Fuel inventory and supplies 481.6
   511.0
 
Income taxes receivable 85.5
   68.0
 
Regulatory assets 231.7
   303.9
 
Prepaid expenses and other assets 78.2
   79.1
 
Total Current Assets 1,467.7
   1,681.0
 
PROPERTY, PLANT AND EQUIPMENT, NET 19,184.4
   18,782.5
 
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET 162.0
   169.2
 
OTHER ASSETS:  
    
 
Regulatory assets 1,740.5
   1,757.9
 
Nuclear decommissioning trust fund 573.2
   472.1
 
Goodwill 2,336.6
   2,338.9
 
Other 511.5
   396.5
 
Total Other Assets 5,161.8
   4,965.4
 
TOTAL ASSETS $25,975.9
   $25,598.1
 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

63

EVERGY, INC.
Consolidated Balance Sheets
  
 December 31
 2019 2018
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:       
Current maturities of long-term debt $251.1
   $705.4
 
Current maturities of long-term debt of variable interest entities 32.3
   30.3
 
Notes payable and commercial paper 561.9
   738.6
 
Collateralized note payable 339.0
   365.0
 
Accounts payable 528.8
   451.5
 
Accrued taxes 145.1
   133.6
 
Accrued interest 122.3
   110.9
 
Regulatory liabilities 63.3
   110.2
 
Asset retirement obligations 71.3
   49.8
 
Other 220.8
   171.9
 
Total Current Liabilities 2,335.9
   2,867.2
 
LONG-TERM LIABILITIES:  
    
 
Long-term debt, net 8,746.7
   6,636.3
 
Long-term debt of variable interest entities, net 18.8
   51.1
 
Deferred income taxes 1,744.4
   1,599.2
 
Unamortized investment tax credits 375.4
   373.2
 
Regulatory liabilities 2,248.3
   2,218.8
 
Pension and post-retirement liability 1,017.6
   987.6
 
Asset retirement obligations 602.8
   637.3
 
Other 340.7
   236.7
 
Total Long-Term Liabilities 15,094.7
   12,740.2
 
Commitments and Contingencies (Note 15) 


   


 
EQUITY:       
Evergy, Inc. Shareholders' Equity:       
Common stock - 600,000,000 shares authorized, without par value
226,641,443 and 255,326,252 shares issued, stated value		 7,070.4
   8,685.2
 
Retained earnings 1,551.5
   1,346.0
 
Accumulated other comprehensive loss (50.0)   (3.0) 
Total Evergy, Inc. Shareholders' Equity 8,571.9
   10,028.2
 
Noncontrolling Interests (26.6)   (37.5) 
Total Equity 8,545.3
   9,990.7
 
TOTAL LIABILITIES AND EQUITY $25,975.9
   $25,598.1
 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

64

EVERGY, INC.
Consolidated Statements of Cash Flows
      
Year Ended December 312019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$685.6
 $546.0
 $336.5
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization861.7
 618.8
 371.7
Amortization of nuclear fuel51.4
 43.6
 32.2
Amortization of deferred refueling outage25.5
 21.2
 16.1
Amortization of corporate-owned life insurance19.8
 22.6
 20.6
Non-cash compensation16.3
 29.9
 8.8
Net deferred income taxes and credits121.5
 124.2
 149.6
Allowance for equity funds used during construction(2.2) (3.1) (2.0)
Payments for asset retirement obligations(17.8) (22.4) (16.0)
Equity in earnings of equity method investees, net of income taxes(9.8) (5.4) (6.7)
Income from corporate-owned life insurance(29.6) (2.3) (2.8)
Other(3.2) (5.2) (8.7)
Changes in working capital items:     
Accounts receivable(23.1) 265.1
 (2.1)
Accounts receivable pledged as collateral26.0
 (185.0) —
Fuel inventory and supplies29.9
 54.7
 7.2
Prepaid expenses and other current assets43.4
 (128.1) 55.8
Accounts payable16.9
 56.7
 10.0
Accrued taxes(8.2) (76.4) 9.2
Other current liabilities(59.4) 92.0
 (118.0)
Changes in other assets79.8
 66.8
 32.0
Changes in other liabilities(75.5) (15.9) 19.3
Cash Flows from Operating Activities1,749.0
 1,497.8
 912.7
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: 
  
  
Additions to property, plant and equipment(1,210.1) (1,069.7) (764.6)
Cash acquired from the merger with Great Plains Energy—
 1,154.2
 —
Purchase of securities - trusts(55.8) (117.5) (41.0)
Sale of securities - trusts47.3
 117.7
 41.2
Investment in corporate-owned life insurance(18.3) (17.1) (17.0)
Proceeds from investment in corporate-owned life insurance161.7
 6.8
 4.2
Proceeds from settlement of interest rate swap—
 140.6
 —
Other investing activities(5.1) (17.6) (3.6)
Cash Flows from (used in) Investing Activities(1,080.3) 197.4
 (780.8)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: 
  
  
Short term debt, net(176.7) (104.0) (91.3)
Proceeds from term loan facility1,000.0
 —
 —
Repayment of term loan facility(1,000.0) —
 —
Collateralized short-term borrowings, net(26.0) 185.0
 —
Proceeds from long-term debt2,372.7
 290.9
 296.2
Retirements of long-term debt(701.1) (395.8) (125.0)
Retirements of long-term debt of variable interest entities(30.3) (28.5) (26.8)
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 insurance59.4
 56.5
 55.1
Repayment of borrowings against cash surrender value of corporate-owned life insurance(127.5) (3.9) (1.0)
Cash dividends paid(462.5) (475.0) (223.1)
Repurchase of common stock under repurchase plan(1,628.7) (1,042.3) —
Distributions to shareholders of noncontrolling interests(8.6) —
 (5.8)
Other financing activities(6.7) (21.3) (9.9)
Cash Flows used in Financing Activities(805.8) (1,538.4) (131.6)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(137.1) 156.8
 0.3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:     
Beginning of period160.3
 3.5
 3.2
End of period$23.2
 $160.3
 $3.5
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

65

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, 2016141,791,153
$2,727.3
$1,078.6
$—
$27.3
$3,833.2
Net income—
—
323.9
—
12.6
336.5
Issuance of stock12,131
0.6
—
—
—
0.6
Issuance of stock compensation and reinvested dividends, net of tax withholding290,991
(1.9)—
—
—
(1.9)
Dividends declared on common stock ($1.60 per share)—
—
(229.2)—
—
(229.2)
Stock compensation expense—
8.8
—
—
—
8.8
Deconsolidation of noncontrolling interests—
—
—
—
(81.9)(81.9)
Distributions to shareholders of noncontrolling interests—
—
—
—
(5.7)(5.7)
Balance as of December 31, 2017142,094,275
2,734.8
1,173.3
—
(47.7)3,860.4
Net income—
—
535.8
—
10.2
546.0
Issuance of stock to Great Plains Energy shareholders128,947,518
6,979.9
—
—
—
6,979.9
Issuance of restricted common stock122,505
—
—
—
—
—
Issuance of stock compensation and reinvested dividends,
net of tax withholding		533,273
(16.7)—
—
—
(16.7)
Dividends declared on common stock ($1.735 per share)—
—
(362.1)—
—
(362.1)
Dividend equivalents declared—
—
(1.0)—
—
(1.0)
Stock compensation expense—
29.9
—
—
—
29.9
Repurchase of common stock(16,371,319)(1,042.3)—
—
—
(1,042.3)
Derivative hedging activity, net of tax—
—
—
(4.0)—
(4.0)
Change in unrecognized pension expense, net of tax—
—
—
1.0
—
1.0
Other—
(0.4)—
—
—
(0.4)
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 withholding		111,849
(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
EVERGY, INC.
Consolidated Balance Sheets
December 31
 20222021
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:  
Current maturities of long-term debt$439.1 $389.3 
Notes payable and commercial paper1,332.3 1,159.3 
Collateralized note payable359.0 319.0 
Accounts payable600.8 639.7 
Accrued taxes163.0 150.4 
Accrued interest124.3 118.8 
Regulatory liabilities155.4 70.7 
Asset retirement obligations40.4 19.5 
Accrued compensation and benefits81.1 51.6 
Other198.4 184.6 
Total Current Liabilities3,493.8 3,102.9 
LONG-TERM LIABILITIES:  
Long-term debt, net9,905.7 9,297.9 
Deferred income taxes1,996.6 1,861.9 
Unamortized investment tax credits174.6 181.4 
Regulatory liabilities2,566.8 2,705.0 
Pension and post-retirement liability458.4 879.1 
Asset retirement obligations1,112.8 940.6 
Other287.9 310.0 
Total Long-Term Liabilities16,502.8 16,175.9 
Commitments and Contingencies (Note 15)
EQUITY:
Evergy, Inc. Shareholders' Equity:
Common stock - 600,000,000 shares authorized, without par value
229,546,105 and 229,299,900 shares issued, stated value
7,219.7 7,205.5 
Retained earnings2,298.5 2,082.9 
Accumulated other comprehensive loss(34.5)(44.0)
Total Evergy, Inc. Shareholders' Equity9,483.7 9,244.4 
Noncontrolling Interests9.6 (2.7)
Total Equity9,493.3 9,241.7 
TOTAL LIABILITIES AND EQUITY$29,489.9 $28,520.5 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

77
66

EVERGY, INC.
Consolidated Statements of Cash Flows
Year Ended December 31202220212020
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$765.0 $891.9 $630.0 
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization929.4 896.4 880.1 
Amortization of nuclear fuel55.5 51.4 58.3 
Amortization of deferred refueling outage22.3 25.1 25.4 
Amortization of corporate-owned life insurance25.0 24.1 20.1 
Non-cash compensation18.8 15.6 16.0 
Net deferred income taxes and credits7.3 102.2 126.9 
Allowance for equity funds used during construction(22.5)(29.4)(17.2)
Payments for asset retirement obligations(13.0)(22.6)(18.4)
Equity in earnings of equity method investees, net of income taxes(7.3)(8.2)(8.3)
Income from corporate-owned life insurance(5.6)(14.2)(8.2)
Sibley Unit 3 impairment loss and other regulatory disallowances34.9 — — 
Other0.7 (13.8)0.8 
Changes in working capital items:
Accounts receivable(59.8)69.9 (4.9)
Accounts receivable pledged as collateral(40.0)41.0 (21.0)
Fuel inventory and supplies(105.6)(61.6)(22.3)
Prepaid expenses and other current assets(3.1)(299.8)16.9 
Accounts payable2.1 (55.1)134.3 
Accrued taxes32.2 41.4 6.7 
Other current liabilities0.8 (19.4)(98.9)
Changes in other assets81.0 (251.5)119.5 
Changes in other liabilities83.8 (31.7)(82.0)
Cash Flows from Operating Activities1,801.9 1,351.7 1,753.8 
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:  
Additions to property, plant and equipment(2,166.5)(1,972.5)(1,560.3)
Purchase of securities - trusts(50.5)(158.2)(65.6)
Sale of securities - trusts27.3 115.7 56.5 
Investment in corporate-owned life insurance(16.5)(14.2)(19.1)
Proceeds from investment in corporate-owned life insurance35.2 77.0 65.9 
Other investing activities18.8 38.4 (11.1)
Cash Flows used in Investing Activities(2,152.2)(1,913.8)(1,533.7)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:  
Short-term debt, net172.9 840.5 (246.9)
Proceeds from term loan facility500.0 — — 
Collateralized short-term borrowings, net40.0 (41.0)21.0 
Issuance of common stock— 112.5 — 
Proceeds from long-term debt567.7 497.3 888.8 
Retirements of long-term debt(410.9)(432.0)(251.1)
Retirements of long-term debt of variable interest entities— (18.8)(32.3)
Borrowings against cash surrender value of corporate-owned life insurance53.5 54.4 55.5 
Repayment of borrowings against cash surrender value of corporate-owned life insurance(28.0)(62.3)(54.8)
Cash dividends paid(534.8)(497.9)(465.0)
Other financing activities(11.1)(9.3)(13.6)
Cash Flows from (used in) Financing Activities349.3 443.4 (98.4)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(1.0)(118.7)121.7 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period26.2 144.9 23.2 
End of period$25.2 $26.2 $144.9 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
78
EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Income
       
Year Ended December 31 2019 2018 2017
  (millions)
OPERATING REVENUES $2,507.4
 $2,614.9
 $2,571.0
OPERATING EXPENSES:      
Fuel and purchased power 493.0
 599.2
 541.5
SPP network transmission costs 251.3
 259.9
 247.9
Operating and maintenance 530.5
 640.7
 563.5
Depreciation and amortization 443.8
 390.9
 371.7
Taxes other than income tax 192.3
 173.7
 167.6
Total Operating Expenses 1,910.9
 2,064.4
 1,892.2
INCOME FROM OPERATIONS 596.5
 550.5
 678.8
OTHER INCOME (EXPENSE):      
Investment earnings (loss) 4.1
 (0.6) 4.0
Other income 23.1
 13.9
 8.3
Other expense (40.1) (46.8) (39.1)
Total Other Expense, Net (12.9) (33.5) (26.8)
Interest expense 177.0
 176.8
 171.0
INCOME BEFORE INCOME TAXES 406.6
 340.2
 481.0
Income tax expense (benefit) 52.1
 (4.3) 151.2
Equity in earnings of equity method investees, net of income taxes 4.6
 4.6
 6.7
NET INCOME 359.1
 349.1
 336.5
Less: Net income attributable to noncontrolling interests 15.7
 10.2
 12.6
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC. $343.4
 $338.9
 $323.9
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, 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 
Net income— — 752.7 — 12.3 765.0 
Issuance of stock compensation and reinvested dividends, net of tax withholding246,205 (5.2)— — — (5.2)
Dividends declared on common stock ($2.33 per share)— — (534.8)— — (534.8)
Dividend equivalents declared— — (2.3)— — (2.3)
Stock compensation expense— 18.1 — — — 18.1 
Unearned compensation
Compensation expense recognized— 0.7 — — — 0.7 
Derivative hedging activity, net of tax— — — 5.5 — 5.5 
Change in unrecognized pension expense, net of tax— — — 4.0 — 4.0 
Other— 0.6 — — — 0.6 
Balance as of December 31, 2022229,546,105 $7,219.7 $2,298.5 $(34.5)$9.6 $9,493.3 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
79
EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Income
Year Ended December 31202220212020
(millions)
OPERATING REVENUES$3,055.9 $2,847.3 $2,418.1 
OPERATING EXPENSES:
Fuel and purchased power855.5 638.7 427.6 
SPP network transmission costs323.0 290.4 263.2 
Operating and maintenance536.3 530.8 513.6 
Depreciation and amortization484.6 467.2 453.1 
Taxes other than income tax216.5 203.9 193.3 
Total Operating Expenses2,415.9 2,131.0 1,850.8 
INCOME FROM OPERATIONS640.0 716.3 567.3 
OTHER INCOME (EXPENSE):
Investment earnings (loss)(3.8)1.3 4.8 
Other income14.4 27.0 21.4 
Other expense(39.6)(35.9)(38.9)
Total Other Expense, Net(29.0)(7.6)(12.7)
Interest expense181.8 160.3 167.6 
INCOME BEFORE INCOME TAXES429.2 548.4 387.0 
Income tax expense12.3 51.7 155.8 
Equity in earnings of equity method investees, net of income taxes4.0 4.0 4.6 
NET INCOME420.9 500.7 235.8 
Less: Net income attributable to noncontrolling interests12.3 12.2 11.7 
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC.$408.6 $488.5 $224.1 
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.


80
67

EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
December 31
 20222021
ASSETS(millions, except share amounts)
CURRENT ASSETS: 
Cash and cash equivalents$8.7 $3.1 
Receivables, net of allowance for credit losses of $16.9 and $13.0, respectively249.4 201.6 
Related party receivables7.9 21.2 
Accounts receivable pledged as collateral185.0 153.0 
Fuel inventory and supplies349.5 283.2 
Income taxes receivable— 9.6 
Regulatory assets121.9 257.3 
Prepaid expenses18.7 19.4 
Other assets28.8 21.6 
Total Current Assets969.9 970.0 
PROPERTY, PLANT AND EQUIPMENT, NET11,080.8 10,548.9 
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET140.7 147.8 
OTHER ASSETS:  
Regulatory assets590.0 753.6 
Nuclear decommissioning trust fund318.8 368.4 
Other268.1 286.9 
Total Other Assets1,176.9 1,408.9 
TOTAL ASSETS$13,368.3 $13,075.6 
EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
    
 December 31
 2019 2018
ASSETS(millions, except share amounts)
CURRENT ASSETS:       
Cash and cash equivalents $5.2
   $44.5
 
Receivables, net 140.4
   84.3
 
Related party receivables 9.9
   2.6
 
Accounts receivable pledged as collateral 171.0
   185.0
 
Fuel inventory and supplies 266.4
   276.8
 
Income taxes receivable 30.4
   42.7
 
Regulatory assets 93.3
   97.1
 
Prepaid expenses and other assets 34.3
   35.0
 
Total Current Assets 750.9
   768.0
 
PROPERTY, PLANT AND EQUIPMENT, NET 9,864.9
   9,718.3
 
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET 162.0
   169.2
 
OTHER ASSETS:  
    
 
Regulatory assets 730.4
   700.4
 
Nuclear decommissioning trust fund 272.5
   227.5
 
Other 266.0
   233.4
 
Total Other Assets 1,268.9
   1,161.3
 
TOTAL ASSETS $12,046.7
   $11,816.8
 
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

68
81




EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
December 31
 20222021
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:  
Current maturities of long-term debt$50.0 $— 
Notes payable and commercial paper772.1 406.0 
Collateralized note payable185.0 153.0 
Accounts payable247.3 232.2 
Related party payables28.9 27.5 
Accrued taxes125.5 106.1 
Accrued interest72.6 71.5 
Regulatory liabilities72.1 12.8 
Asset retirement obligations21.3 7.3 
Accrued compensation and benefits39.4 13.8 
Other135.0 126.3 
Total Current Liabilities1,749.2 1,156.5 
LONG-TERM LIABILITIES:  
Long-term debt, net3,886.9 3,934.2 
Deferred income taxes844.5 867.9 
Unamortized investment tax credits57.3 61.7 
Regulatory liabilities1,368.9 1,469.4 
Pension and post-retirement liability244.7 435.6 
Asset retirement obligations543.8 436.6 
Other165.6 172.2 
Total Long-Term Liabilities7,111.7 7,377.6 
Commitments and Contingencies (Note 15)
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 earnings1,760.2 1,806.6 
Total Evergy Kansas Central, Inc. Shareholder's Equity4,497.8 4,544.2 
Noncontrolling Interests9.6 (2.7)
Total Equity4,507.4 4,541.5 
TOTAL LIABILITIES AND EQUITY$13,368.3 $13,075.6 
EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
  
 December 31
 2019 2018
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:       
Current maturities of long-term debt $250.0
   $300.0
 
Current maturities of long-term debt of variable interest entities 32.3
   30.3
 
Notes payable and commercial paper 249.2
   411.7
 
Collateralized note payable 171.0
   185.0
 
Accounts payable 200.5
   154.4
 
Related party payables 14.8
   14.9
 
Accrued taxes 98.7
   88.6
 
Accrued interest 74.2
   74.4
 
Regulatory liabilities 42.3
   19.5
 
Asset retirement obligations 23.3
   17.1
 
Other 130.2
   83.0
 
Total Current Liabilities 1,286.5
   1,378.9
 
LONG-TERM LIABILITIES:  
    
 
Long-term debt, net 3,436.1
   3,389.8
 
Long-term debt of variable interest entities, net 18.8
   51.1
 
Deferred income taxes 817.7
   815.4
 
Unamortized investment tax credits 253.2
   249.7
 
Regulatory liabilities 1,132.5
   1,101.8
 
Pension and post-retirement liability 495.5
   474.7
 
Asset retirement obligations 249.6
   264.0
 
Other 151.8
   130.7
 
Total Long-Term Liabilities 6,555.2
   6,477.2
 
Commitments and Contingencies (Note 15) 


   


 
EQUITY:  
     
Evergy Kansas Central, Inc. Shareholder's Equity:  
    
 
Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued 2,737.6
   2,737.6
 
Retained earnings 1,494.0
   1,260.6
 
Total Evergy Kansas Central, Inc. Shareholder's Equity 4,231.6
   3,998.2
 
Noncontrolling Interests (26.6)   (37.5) 
Total Equity 4,205.0
   3,960.7
 
TOTAL LIABILITIES AND EQUITY $12,046.7
   $11,816.8
 
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.


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EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Cash Flows
Year Ended December 31202220212020
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$420.9 $500.7 $235.8 
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization484.6 467.2 453.1 
Amortization of nuclear fuel27.6 25.6 28.8 
Amortization of deferred refueling outage10.6 12.6 12.7 
Amortization of corporate-owned life insurance25.0 24.1 20.1 
Net deferred income taxes and credits(87.4)(1.4)146.6 
Allowance for equity funds used during construction(8.5)(14.9)(9.1)
Payments for asset retirement obligations(6.9)(6.2)(2.2)
Equity in earnings of equity method investees, net of income taxes(4.0)(4.0)(4.6)
Income from corporate-owned life insurance(5.6)(14.2)(8.2)
Other(5.5)(5.5)(5.5)
Changes in working capital items:
Accounts receivable(11.0)23.5 (33.8)
Accounts receivable pledged as collateral(32.0)27.0 (9.0)
Fuel inventory and supplies(65.7)(6.2)(9.4)
Prepaid expenses and other current assets102.7 (196.1)10.0 
Accounts payable2.9 (39.1)111.6 
Accrued taxes29.0 20.3 (6.7)
Other current liabilities22.8 (55.0)(95.5)
Changes in other assets42.3 (48.3)42.9 
Changes in other liabilities4.0 (10.0)(30.2)
Cash Flows from Operating Activities945.8 700.1 847.4 
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:  
Additions to property, plant and equipment(918.9)(835.7)(719.0)
Purchase of securities - trusts(24.9)(129.9)(20.2)
Sale of securities - trusts11.2 97.5 18.6 
Investment in corporate-owned life insurance(16.4)(14.2)(18.3)
Proceeds from investment in corporate-owned life insurance35.2 77.0 63.8 
Other investing activities11.0 26.5 (2.2)
Cash Flows used in Investing Activities(902.8)(778.8)(677.3)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:  
Short-term debt, net366.1 354.0 (199.2)
Collateralized short-term debt, net32.0 (27.0)9.0 
Proceeds from long-term debt— — 492.7 
Retirements of long-term debt— — (250.0)
Retirements of long-term debt of variable interest entities— (18.8)(32.3)
Borrowings against cash surrender value of corporate-owned life insurance51.6 51.4 52.7 
Repayment of borrowings against cash surrender value of corporate-owned life insurance(28.0)(62.3)(53.7)
Cash dividends paid(455.0)(240.0)(160.0)
Other financing activities(4.1)(4.2)(5.8)
Cash Flows from (used in) Financing Activities(37.4)53.1 (146.6)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH5.6 (25.6)23.5 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period3.1 28.7 5.2 
End of period$8.7 $3.1 $28.7 
EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Cash Flows
 
Year Ended December 312019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$359.1
 $349.1
 $336.5
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization443.8
 390.9
 371.7
Amortization of nuclear fuel25.6
 26.0
 32.2
Amortization of deferred refueling outage12.8
 13.7
 16.1
Amortization of corporate-owned life insurance19.8
 22.6
 20.6
Non-cash compensation—
 19.9
 8.8
Net deferred income taxes and credits11.6
 (2.2) 149.6
Allowance for equity funds used during construction—
 (2.9) (2.0)
Payments for asset retirement obligations(14.8) (12.0) (16.0)
Equity in earnings of equity method investees, net of income taxes(4.6) (4.6) (6.7)
Income from corporate-owned life insurance(29.0) (2.3) (2.8)
Other(5.5) (5.4) (8.7)
Changes in working capital items:     
Accounts receivable(65.9) 207.9
 (2.1)
Accounts receivable pledged as collateral14.0
 (185.0) —
Fuel inventory and supplies10.9
 17.3
 7.2
Prepaid expenses and other current assets(11.7) (134.2) 55.8
Accounts payable6.9
 (17.6) 10.0
Accrued taxes20.2
 (24.1) 9.2
Other current liabilities12.1
 88.3
 (118.0)
Changes in other assets47.0
 42.7
 32.0
Changes in other liabilities(29.5) (36.2) 19.3
Cash Flows from Operating Activities822.8
 751.9
 912.7
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: 
  
  
Additions to property, plant and equipment(596.1) (713.3) (764.6)
Purchase of securities - trusts(21.8) (99.4) (41.0)
Sale of securities - trusts21.6
 104.2
 41.2
Investment in corporate-owned life insurance(17.6) (17.1) (17.0)
Proceeds from investment in corporate-owned life insurance158.9
 6.8
 4.2
Other investing activities(3.2) (8.6) (3.6)
Cash Flows used in Investing Activities(458.2) (727.4) (780.8)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: 
  
  
Short term debt, net(162.5) 133.7
 (91.3)
Collateralized short-term debt, net(14.0) 185.0
 —
Proceeds from long-term debt294.7
 121.9
 296.2
Retirements of long-term debt(300.0) (121.9) (125.0)
Retirements of long-term debt of variable interest entities(30.3) (28.5) (26.8)
Borrowings against cash surrender value of corporate-owned life insurance56.5
 56.5
 55.1
Repayment of borrowings against cash surrender value of corporate-owned life insurance(125.4) (3.9) (1.0)
Cash dividends paid(110.0) (305.1) (223.1)
Distributions to shareholders of noncontrolling interests(8.6) —
 (5.8)
Other financing activities(4.3) (21.2) (9.9)
Cash Flows from (used in) Financing Activities(403.9) 16.5
 (131.6)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(39.3) 41.0
 0.3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:     
Beginning of period44.5
 3.5
 3.2
End of period$5.2
 $44.5
 $3.5
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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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, 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 
Net income— — 408.6 12.3 420.9 
Dividends declared on common stock— — (455.0)— (455.0)
Balance as of December 31, 20221 $2,737.6 $1,760.2 $9.6 $4,507.4 
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, 2016141,791,153
$2,727.3
$1,078.6
$27.3
$3,833.2
Net income—
—
323.9
12.6
336.5
Issuance of stock12,131
0.6
—
—
0.6
Issuance of stock for compensation and reinvested dividends, net of tax withholding290,991
(1.9)—
—
(1.9)
Dividends declared on common stock—
—
(229.2)—
(229.2)
Stock compensation expense—
8.8
—
—
8.8
Deconsolidation of noncontrolling interest—
—
—
(81.9)(81.9)
Distributions to shareholders of noncontrolling interests—
—
—
(5.7)(5.7)
Balance as of December 31, 2017142,094,275
2,734.8
1,173.3
(47.7)3,860.4
Net income——
338.9
10.2
349.1
Issuance of stock for compensation and reinvested dividends, net of tax withholding516,990(17.2)—
—
(17.2)
Stock cancelled pursuant to Amended Merger Agreement(142,611,264)—
—
—
—
Dividends declared on common stock——
(251.6)—
(251.6)
Stock compensation expense—19.9
—
—
19.9
Other—0.1
—
—
0.1
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
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.


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71

EVERGY METRO, INC.
Consolidated Statements of Comprehensive Income
Year Ended December 31202220212020
(millions)
OPERATING REVENUES$1,970.6 $1,913.7 $1,705.6 
OPERATING EXPENSES:  
Fuel and purchased power630.7 613.5 416.1 
Operating and maintenance334.4 365.4 407.5 
Depreciation and amortization337.8 321.0 326.1 
Taxes other than income tax130.0 126.2 121.6 
Other regulatory disallowances5.5 — — 
Total Operating Expenses1,438.4 1,426.1 1,271.3 
INCOME FROM OPERATIONS532.2 487.6 434.3 
OTHER INCOME (EXPENSE):
Investment earnings2.9 0.2 1.4 
Other income15.2 16.1 9.2 
Other expense(33.9)(29.4)(25.5)
Total Other Expense, Net(15.8)(13.1)(14.9)
Interest expense110.7 109.8 113.6 
INCOME BEFORE INCOME TAXES405.7 364.7 305.8 
Income tax expense50.3 52.4 7.1 
NET INCOME$355.4 $312.3 $298.7 
COMPREHENSIVE INCOME
NET INCOME$355.4 $312.3 $298.7 
OTHER COMPREHENSIVE INCOME:
Derivative hedging activity
Reclassification to expenses, net of tax(0.3)(0.3)(0.2)
Derivative hedging activity, net of tax(0.3)(0.3)(0.2)
Total other comprehensive loss(0.3)(0.3)(0.2)
COMPREHENSIVE INCOME$355.1 $312.0 $298.5 
EVERGY METRO, INC.
Consolidated Statements of Comprehensive Income
     
Year Ended December 31 2019 2018 2017
  (millions)
OPERATING REVENUES $1,806.5
 $1,823.1
 $1,890.7
OPERATING EXPENSES:  
  
  
Fuel and purchased power 482.1
 520.6
 480.7
Operating and maintenance 451.9
 494.2
 474.8
Depreciation and amortization 318.4
 281.3
 266.3
Taxes other than income tax 127.6
 117.2
 182.5
Total Operating Expenses 1,380.0
 1,413.3
 1,404.3
INCOME FROM OPERATIONS 426.5
 409.8
 486.4
OTHER INCOME (EXPENSE):      
Investment earnings 2.4
 2.8
 2.0
Other income 3.2
 2.2
 9.2
Other expense (21.4) (30.9) (50.8)
Total Other Expense, Net (15.8) (25.9) (39.6)
Interest expense 119.8
 133.7
 138.8
INCOME BEFORE INCOME TAXES 290.9
 250.2
 308.0
Income tax expense 35.7
 87.3
 128.2
NET INCOME $255.2
 $162.9
 $179.8
COMPREHENSIVE INCOME  
  
  
NET INCOME $255.2
 $162.9
 $179.8
OTHER COMPREHENSIVE INCOME  
  
  
Derivative hedging activity  
  
  
Reclassification to expenses, net of tax: 0.7
 3.7
 4.6
Derivative hedging activity, net of tax 0.7
 3.7
 4.6
Total other comprehensive income 0.7
 3.7
 4.6
COMPREHENSIVE INCOME $255.9
 $166.6
 $184.4
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
 20222021
ASSETS(millions, except share amounts)
CURRENT ASSETS: 
Cash and cash equivalents$3.1 $2.1 
Receivables, net of allowance for credit losses of $9.3 and $13.3, respectively37.8 31.0 
Related party receivables170.4 277.8 
Accounts receivable pledged as collateral124.0 116.0 
Fuel inventory and supplies240.6 211.0 
Income taxes receivable0.2 — 
Regulatory assets42.3 86.3 
Prepaid expenses22.4 22.6 
Other assets11.0 19.7 
Total Current Assets651.8 766.5 
PROPERTY, PLANT AND EQUIPMENT, NET7,844.2 7,474.9 
OTHER ASSETS:  
Regulatory assets331.5 410.7 
Nuclear decommissioning trust fund334.5 400.3 
Other87.2 104.4 
Total Other Assets753.2 915.4 
TOTAL ASSETS$9,249.2 $9,156.8 
EVERGY METRO, INC.
Consolidated Balance Sheets
    
 December 31
 2019 2018
ASSETS(millions, except share amounts)
CURRENT ASSETS:       
Cash and cash equivalents $2.0
   $2.6
 
Receivables, net 48.1
   62.7
 
Related party receivables 93.9
   101.8
 
Accounts receivable pledged as collateral 118.0
   130.0
 
Fuel inventory and supplies 163.0
   177.6
 
Income taxes receivable 8.7
   —
 
Regulatory assets 95.4
   130.9
 
Prepaid expenses 22.8
   20.1
 
Other assets 15.0
   16.8
 
Total Current Assets 566.9
   642.5
 
PROPERTY, PLANT AND EQUIPMENT, NET 6,839.0
   6,688.1
 
OTHER ASSETS:  
    
 
Regulatory assets 464.4
   495.2
 
Nuclear decommissioning trust fund 300.7
   244.6
 
Other 134.1
   50.1
 
Total Other Assets 899.2
   789.9
 
TOTAL ASSETS $8,305.1
   $8,120.5
 
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
 20222021
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:  
Current maturities of long-term debt$379.5 $— 
Notes payable and commercial paper111.0 — 
Collateralized note payable124.0 116.0 
Accounts payable252.3 305.2 
Related party payables0.9 0.1 
Accrued taxes40.5 38.6 
Accrued interest27.9 26.4 
Regulatory liabilities55.3 54.6 
Asset retirement obligations17.1 11.0 
Accrued compensation and benefits41.7 37.8 
Other49.2 48.8 
Total Current Liabilities1,099.4 638.5 
LONG-TERM LIABILITIES:  
Long-term debt, net2,547.1 2,925.0 
Deferred income taxes720.9 606.1 
Unamortized investment tax credits114.7 117.2 
Regulatory liabilities872.8 954.2 
Pension and post-retirement liability196.6 420.9 
Asset retirement obligations427.1 370.0 
Other84.3 103.7 
Total Long-Term Liabilities4,963.5 5,497.1 
Commitments and Contingencies (Note 15)
EQUITY:  
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value1,563.1 1,563.1 
Retained earnings1,619.2 1,453.8 
Accumulated other comprehensive income4.0 4.3 
Total Equity3,186.3 3,021.2 
TOTAL LIABILITIES AND EQUITY$9,249.2 $9,156.8 
EVERGY METRO, INC.
Consolidated Balance Sheets
  
 December 31
 2019 2018
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:       
Current maturities of long-term debt $—
   $400.0
 
Notes payable and commercial paper 199.3
   176.9
 
Collateralized note payable 118.0
   130.0
 
Accounts payable 233.6
   211.1
 
Related party payables 4.6
   —
 
Accrued taxes 38.8
   39.7
 
Accrued interest 26.7
   28.9
 
Regulatory liabilities 11.4
   52.8
 
Asset retirement obligations 36.1
   29.2
 
Accrued compensation benefits 45.1
   52.5
 
Other 34.0
   17.2
 
Total Current Liabilities 747.6
   1,138.3
 
LONG-TERM LIABILITIES:  
    
 
Long-term debt, net 2,525.0
   2,130.1
 
Deferred income taxes 642.8
   631.8
 
Unamortized investment tax credits 119.6
   120.7
 
Regulatory liabilities 792.2
   794.3
 
Pension and post-retirement liability 499.7
   491.9
 
Asset retirement obligations 217.5
   231.8
 
Other 180.0
   81.8
 
Total Long-Term Liabilities 4,976.8
   4,482.4
 
Commitments and Contingencies (Note 15) 


   


 
EQUITY:  
    
 
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value 1,563.1
   1,563.1
 
Retained earnings 1,012.8
   932.6
 
Accumulated other comprehensive income 4.8
   4.1
 
Total Equity 2,580.7
   2,499.8
 
TOTAL LIABILITIES AND EQUITY $8,305.1
   $8,120.5
 
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 31202220212020
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$355.4 $312.3 $298.7 
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization337.8 321.0 326.1 
Amortization of nuclear fuel27.9 25.8 29.5 
Amortization of deferred refueling outage11.7 12.6 12.7 
Net deferred income taxes and credits68.1 10.0 (3.5)
Allowance for equity funds used during construction(14.2)(12.6)(8.0)
Payments for asset retirement obligations(5.3)(7.4)(7.5)
Other regulatory disallowances5.5 — — 
Other(0.4)(0.4)(0.4)
Changes in working capital items:
Accounts receivable5.1 43.2 (13.2)
Accounts receivable pledged as collateral(8.0)14.0 (12.0)
Fuel inventory and supplies(29.6)(40.6)(7.4)
Prepaid expenses and other current assets(6.2)(16.3)(7.9)
Accounts payable(43.2)(1.1)24.6 
Accrued taxes1.7 6.9 1.6 
Other current liabilities(30.6)44.0 2.4 
Changes in other assets59.1 61.5 59.1 
Changes in other liabilities(3.7)(38.7)(47.3)
Cash Flows from Operating Activities731.1 734.2 647.5 
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:  
Additions to property, plant and equipment(780.9)(682.9)(565.4)
Purchase of securities - trusts(25.6)(28.3)(45.4)
Sale of securities - trusts16.1 18.2 37.9 
Net money pool lending124.0 (55.0)(100.0)
Other investing activities6.2 6.8 4.6 
Cash Flows used in Investing Activities(660.2)(741.2)(668.3)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:  
Short-term debt, net111.0 — (199.3)
Collateralized short-term debt, net8.0 (14.0)12.0 
Proceeds from long-term debt23.4 — 396.2 
Retirements of long-term debt(23.4)— — 
Cash dividends paid(190.0)(50.0)(120.0)
Other financing activities1.1 1.5 1.5 
Cash Flows from (used in) Financing Activities(69.9)(62.5)90.4 
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH1.0 (69.5)69.6 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period2.1 71.6 2.0 
End of period$3.1 $2.1 $71.6 
EVERGY METRO, INC.
Consolidated Statements of Cash Flows
      
Year Ended December 312019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$255.2
 $162.9
 $179.8
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization318.4
 281.3
 266.3
Amortization of nuclear fuel25.9
 26.2
 32.1
Amortization of deferred refueling outage12.8
 13.5
 18.3
Net deferred income taxes and credits(30.6) 48.6
 82.5
Allowance for equity funds used during construction(2.2) (1.4) (6.0)
Payments for asset retirement obligations(2.5) (13.1) (25.5)
Other0.3
 3.9
 7.5
Changes in working capital items:    

Accounts receivable37.0
 36.5
 13.8
Accounts receivable pledged as collateral12.0
 —
 (20.0)
Fuel inventory and supplies14.6
 19.4
 (5.2)
Prepaid expenses and other current assets28.0
 7.2
 8.4
Accounts payable9.1
 (34.6) 11.7
Accrued taxes(9.6) 16.1
 9.1
Other current liabilities(53.2) 10.4
 (0.1)
Changes in other assets33.7
 42.9
 31.7
Changes in other liabilities(34.7) 37.9
 6.5
Cash Flows from Operating Activities614.2
 657.7
 610.9
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: 
  
  
Additions to property, plant and equipment(445.0) (430.7) (468.6)
Purchase of securities - trusts(34.0) (35.1) (33.6)
Sale of securities - trusts25.7
 27.1
 30.3
Other investing activities9.0
 4.8
 0.9
Cash Flows used in Investing Activities(444.3) (433.9) (471.0)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: 
  
  
Short term debt, net22.4
 8.0
 34.6
Collateralized short-term debt, net(12.0) —
 20.0
Proceeds from long-term debt393.2
 465.6
 296.2
Retirements of long-term debt(400.0) (519.9) (281.0)
Cash dividends paid(175.0) (180.0) (212.0)
Other financing activities0.9
 2.9
 —
Cash Flows used in Financing Activities(170.5) (223.4) (142.2)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(0.6) 0.4
 (2.3)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:     
Beginning of period2.6
 2.2
 4.5
End of period$2.0
 $2.6
 $2.2
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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88

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, 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 
Net income— — 355.4 — 355.4 
Dividends declared on common stock— — (190.0)— (190.0)
Derivative hedging activity, net of tax— — — (0.3)(0.3)
Balance as of December 31, 20221 $1,563.1 $1,619.2 $4.0 $3,186.3 
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, 20161
$1,563.1
$982.6
$(4.2)$2,541.5
Net income—
—
179.8
—
179.8
Cumulative effect of adoption of ASU 2016-09—
—
(0.7)—
(0.7)
Dividends declared on common stock—
—
(212.0)—
(212.0)
Derivative hedging activity, net of tax—
—
—
4.6
4.6
Balance as of December 31, 20171
1,563.1
949.7
0.4
2,513.2
Net income—
—
162.9
—
162.9
Dividends declared on common stock—
—
(180.0)—
(180.0)
Derivative hedging activity, net of tax—
—
—
3.7
3.7
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
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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89

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 Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc., all registrants under this filing.  The terms "Evergy," "Evergy Kansas Central," "Evergy Metro" and "Evergy Companies" are used throughout this report.  "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated.  "Evergy Kansas Central" refers to Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated 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
Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below. In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.
•Evergy Kansas Central, Inc. (Evergy Kansas Central), formerly known as Westar Energy, Inc., is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has 1one active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South), formerly known as Kansas Gas and Electric Company..
•Evergy Metro, Inc. (Evergy Metro), formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
•Evergy Missouri West, Inc. (Evergy Missouri West), formerly known as KCP&L Greater Missouri Operations Company, is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
•Evergy Transmission Company, LLC (Evergy Transmission Company), formerly known as GPE Transmission Holding Company, LLC, owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, Inc. (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.

Since the rebranding in September 2019, Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West have been conductingconduct business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 14,70015,400 MWs of owned generating capacity and renewable purchased power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.61.7 million customers in the states of Kansas and Missouri.
Evergy was incorporated in 2017 as Monarch Energy Holding, Inc. (Monarch Energy), a wholly-owned subsidiary of Great Plains Energy Incorporated (Great Plains Energy). Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy and did not conduct any business activities other than those required for its

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formation and matters contemplated by the Amended and Restated Agreement and Plan of Merger, dated as of July 9, 2017, by and among Great Plains Energy, Evergy Kansas Central, Monarch Energy and King Energy, Inc. (King Energy), a wholly-owned subsidiary of Monarch Energy (Amended Merger Agreement). On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger. These merger transactions resulted in Evergy becoming the parent entity of Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West. See Note 2 for additional information regarding the merger.
Principles of Consolidation
Evergy Kansas Central was determined to be the accounting acquirer in the merger and thus, the predecessor of Evergy. Therefore, Evergy's consolidated financial statements reflect the results of operations of Evergy Kansas Central for 2017. Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results of operations from the date of the closing of the merger and thereafter.
Evergy Metro elected not to apply "push-down accounting" related to the merger, whereby the adjustments 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 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.
Each of Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated financial statements includes the accounts of their 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 Incorporated (Great Plains Energy) and Evergy Kansas Central merger in 2018, whereby the adjustments 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 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 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.

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Fuel Inventory and Supplies
The Evergy Companies record fuel inventory and supplies at average cost. The following table separately states the balances for fuel inventory and supplies.
 December 31
 2019 2018
Evergy(millions)
Fuel inventory$146.4
 $168.9
Supplies335.2
 342.1
Fuel inventory and supplies$481.6
 $511.0
Evergy Kansas Central   
Fuel inventory$80.2
 $87.8
Supplies186.2
 189.0
Fuel inventory and supplies$266.4
 $276.8
Evergy Metro   
Fuel inventory$46.1
 $57.8
Supplies116.9
 119.8
Fuel inventory and supplies$163.0
 $177.6

December 31
20222021
Evergy(millions)
Fuel inventory$180.7 $160.9 
Supplies492.2 405.8 
Fuel inventory and supplies$672.9 $566.7 
Evergy Kansas Central
Fuel inventory$97.2 $74.3 
Supplies252.3 208.9 
Fuel inventory and supplies$349.5 $283.2 
Evergy Metro
Fuel inventory$59.0 $62.0 
Supplies181.6 149.0 
Fuel inventory and supplies$240.6 $211.0 
Property, Plant and Equipment
The Evergy Companies record the value of property, plant and equipment, including that of VIEs, 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 rates used to compute gross AFUDC are compounded semi-annually.
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The amounts of the Evergy Companies' AFUDC for borrowed and equity funds are detailed in the following table.
 2019 2018 2017
Evergy(millions)
AFUDC borrowed funds$14.5
 $10.4
 $5.6
AFUDC equity funds2.2
 3.1
 2.0
Total$16.7
 $13.5
 $7.6
Evergy Kansas Central     
AFUDC borrowed funds$7.5
 $6.6
 $5.6
AFUDC equity funds—
 2.9
 2.0
Total$7.5
 $9.5
 $7.6
Evergy Metro(a)
     
AFUDC borrowed funds$4.3
 $4.9
 $6.1
AFUDC equity funds2.2
 1.4
 6.0
Total$6.5
 $6.3
 $12.1
(a) Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
202220212020
Evergy(millions)
AFUDC borrowed funds$15.8 $14.7 $16.5 
AFUDC equity funds22.5 29.4 17.2 
Total$38.3 $44.1 $33.7 
Evergy Kansas Central
AFUDC borrowed funds$6.9 $7.1 $8.5 
AFUDC equity funds8.5 14.9 9.1 
Total$15.4 $22.0 $17.6 
Evergy Metro
AFUDC borrowed funds$6.5 $6.0 $6.0 
AFUDC equity funds14.2 12.6 8.0 
Total$20.7 $18.6 $14.0 
The average rates used in the calculation of AFUDC are detailed in the following table.
 2019 2018 2017
Evergy Kansas Central3.0% 3.3% 2.3%
Evergy Metro4.6% 3.9% 4.9%
Evergy Missouri West3.7% 2.9% 1.9%


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202220212020
Evergy Kansas Central3.1%4.9%4.7%
Evergy Metro5.7%5.6%5.2%
Evergy Missouri West2.3%2.6%3.5%
When property units are retired or otherwise disposed, the original cost, net of salvage, is charged to accumulated depreciation. Repair of property 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 deferred and amortized to expense ratably over the period between planned outages.
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%. See Note 87 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 detailed in the following table.
EvergyEvergy Kansas CentralEvergy Metro
(years)
Generating facilities8to878to8720to60
Transmission facilities15to9436to9415to70
Distribution facilities8to7319to738to55
Other5to847to845to50

Abandoned Plant to be Retired, Net
When the 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 and 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 as a regulatory asset on the consolidated balance sheets.
The 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.
Evergy Missouri West has determined thatretired its NovemberSibley Station in 2018 and the retirement of Sibley No.Unit 3 Unit meetsmet the criteria to be considered an abandonment. As of December 31, 2019, Evergy has classified the remaining Sibley No. 3 Unit net book value of $130.5 millionSibley Unit 3 as retired generation facilities within regulatory assets on its consolidated balance sheet. This regulatory asset is reduced 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 forMPSC issued an Accounting Authority Orderaccounting authority order (AAO) that requiresrequiring Evergy Missouri West to recorddefer to 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'sits retirement in November 2018 for considerationto be considered in Evergy Missouri West's next2022 rate case, which is expected to be completed no later than 2022.case. See Note 54 for additional information regarding the AAO.
AAO and Evergy Missouri West expects that the MPSC's decision in its nextWest's 2022 rate case regarding the AAO could impact the valuation of its regulatory asset for retired generation facilities but as of December 31, 2019, has concluded that no impairment is required based on the relevant facts and circumstances.case.

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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, Evergy Kansas Central and Evergy Metro each contribute to a tax-qualified trust fund to be used to decommission Wolf Creek. Related liabilities for decommissioning are included on Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated balance sheets in asset 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 76 for discussion of AROs including those associated with nuclear plant decommissioning costs.
Regulatory Accounting
Accounting standards are applied that recognize the economic effects of rate regulation. Accordingly, regulatory assets and liabilities have been recorded when required by a regulatory order or based on regulatory precedent. See Note 54 for additional information concerning regulatory matters.
Cash Surrender Value of Life Insurance
Amounts related to corporate-owned life insurance (COLI) are recorded on the consolidated balance sheets in other long-termslong-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
  2019 2018
Evergy (millions)
Cash surrender value of policies $1,370.0
 $1,441.7
Borrowings against policies (1,237.1) (1,306.9)
Corporate-owned life insurance, net $132.9
 $134.8

December 31
20222021
Evergy(millions)
Cash surrender value of policies$1,387.4 $1,363.0 
Borrowings against policies(1,256.6)(1,232.3)
Corporate-owned life insurance, net$130.8 $130.7 
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.
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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.
Derivative instruments - The Evergy Companies' derivative instruments are recorded at fair value based on quoted market prices for exchange-traded derivative instruments, quoted prices for similar contracts and/or valuation models.
Pension plans - For financial reporting purposes, the market value of plan assets is the fair value.value based on quoted market prices of the investments held by the fund and/or valuation models.
Derivative Instruments
The Evergy Companies record derivative instruments on the balance sheet at fair value in accordance with GAAP. The Evergy Companies enter into derivative contracts to manage risk exposure to commodity price and interest rate fluctuations and also for trading purposes. See Note 13 for additional information regarding derivative financial instruments and hedging activities.
Revenue Recognition
The Evergy Companies recognize revenue on the sale of electricity to customers over time as the service is provided in the amount they have the right to invoice. 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' 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 43 for the balance of unbilled receivables for each of Evergy, Evergy Kansas Central and Evergy Metro as of December 31, 20192022 and 2018.

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2021.
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 are not reflected on the consolidated statements of income and comprehensive income for Evergy, Evergy Kansas Central and Evergy Metro.
See Note 32 for additional details regarding revenue recognition from sales of electricity by the Evergy Companies.
Allowance for Doubtful AccountsCredit Losses
Historical loss information generally provides the basis for the Evergy Companies' assessment of expected credit losses. The Evergy Companies determine their allowance for doubtfuluse an aging of accounts based onreceivable method to assess historical loss information. When historical experience may not fully reflect the age of their receivables. 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 historical loss information.
Receivables are charged off when they are deemed uncollectible, which is based on a number of factors including specific facts surrounding an account and management's judgment.
Property Gains and Losses
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.
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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 65 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.
The Evergy Companies recognize tax benefits based on a "more-likely-than-not" recognition threshold. In addition, the Evergy Companies recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.
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. Evergy Kansas Central's and Evergy Metro's income tax provisions include taxes allocated based on their separate company's income or loss.
The Evergy Companies have established a net regulatory liability for 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 Evergy Kansas Central, Evergy Metro and Evergy Missouri West investment tax credits that have been deferred and amortized over the remaining service lives of the related properties.

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Other Income (Expense), Net
In 2022 and 2021, Evergy's investment earnings included a realized loss of $16.3 million and unrealized gain of $27.7 million, respectively, related to Evergy's equity investment in an early-stage energy solutions company. See "Evergy Equity Investment" within this Note 1 for further information.
The Evergy Companies' other income includes income from AFUDC equity funds. See "Property, Plant and Equipment" within this Note 1 for these amounts for 2022, 2021 and 2020.
The table below shows the detail of other expense for each of the Evergy Companies.
202220212020
Evergy(millions)
Non-service cost component of net benefit cost$(62.9)$(55.6)$(58.6)
Other(34.4)(31.8)(19.6)
Other expense$(97.3)$(87.4)$(78.2)
Evergy Kansas Central
Non-service cost component of net benefit cost$(17.1)$(15.6)$(21.2)
Other(22.5)(20.3)(17.7)
Other expense$(39.6)$(35.9)$(38.9)
Evergy Metro
Non-service cost component of net benefit cost$(31.0)$(26.7)$(24.2)
Other(2.9)(2.7)(1.3)
Other expense$(33.9)$(29.4)$(25.5)
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 2019 2018 2017
Evergy(millions)
Non-service cost component of net benefit cost$(55.6) $(47.8) $(20.0)
Other(21.3) (30.9) (19.1)
Other expense$(76.9) $(78.7) $(39.1)
Evergy Kansas Central     
Non-service cost component of net benefit cost$(20.1) $(23.5) $(20.0)
Other(20.0) (23.3) (19.1)
Other expense$(40.1) $(46.8) $(39.1)
Evergy Metro(a)
     
Non-service cost component of net benefit cost$(20.9) $(25.9) $(42.7)
Other(0.5) (5.0) (8.1)
Other expense$(21.4) $(30.9) $(50.8)
(a) Table of ContentsEvergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
Earnings Per Share
To compute basic earnings per share (EPS), Evergy divides net income attributable to Evergy, Inc. by the weighted average number of common shares outstanding. Diluted EPS includes the effect of issuable common shares resulting from restricted share units (RSUs), performance sharesrestricted stock and restricted stock.a warrant. Evergy computes the dilutive effects of potential issuances of common shares using the treasury stock method.method or the contingently issuable share method, as applicable.
The following table reconciles Evergy's basic and diluted EPS.
 2019 2018 2017
Income(millions, except per share amounts)
Net income$685.6
 $546.0
 $336.5
Less: Net income attributable to noncontrolling interests15.7
 10.2
 12.6
Net income attributable to Evergy, Inc.$669.9
 $535.8
 $323.9
Common Shares Outstanding   
  
Weighted average number of common shares outstanding - basic239.5
 213.9
 142.5
Add: effect of dilutive securities0.4
 0.2
 0.1
Diluted average number of common shares outstanding239.9
 214.1
 142.6
Basic EPS$2.80
 $2.50
 $2.27
Diluted EPS$2.79
 $2.50
 $2.27

 202220212020
Income(millions, except per share amounts)
Net income$765.0 $891.9 $630.0 
Less: Net income attributable to noncontrolling interests12.3 12.2 11.7 
Net income attributable to Evergy, Inc.$752.7 $879.7 $618.3 
Common Shares Outstanding  
Weighted average number of common shares outstanding - basic229.9 229.0 227.2 
Add: effect of dilutive securities0.4 0.6 0.3 
Diluted average number of common shares outstanding230.3 229.6 227.5 
Basic EPS$3.27 $3.84 $2.72 
Diluted EPS$3.27 $3.83 $2.72 
Anti-dilutive securities excluded from the computation of diluted EPS for 2022 were 3,950,000 common shares issuable pursuant to a warrant. There were no anti-dilutive securities excluded from the computation of diluted EPS for 2021. Anti-dilutive shares excluded from the computation of diluted EPS for 20192020 were 785127,884 RSUs. There were 0 anti-dilutive securities excluded from the computation of diluted EPS for 2018 and 2017.

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Supplemental Cash Flow Information
Year Ended December 31202220212020
Evergy(millions)
Cash paid for (received from):
Interest, net of amount capitalized$393.7 $356.9 $367.6 
Interest of VIEs— 0.2 0.8 
Income taxes, net of refunds21.6 (19.6)(46.5)
Non-cash investing transactions:
Property, plant and equipment additions354.7 269.3 463.3 
Non-cash financing transactions:
Issuance of stock for compensation and reinvested dividends— 0.7 0.9 
Year Ended December 31202220212020
Evergy Kansas Central(millions)
Cash paid for (received from):
Interest, net of amount capitalized$170.2 $149.3 $157.5 
Interest of VIEs— 0.2 0.8 
Income taxes, net of refunds79.8 37.5 4.7 
Non-cash investing transactions:
Property, plant and equipment additions203.9 101.9 235.4 
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Year Ended December 31 2019 2018 2017
Evergy (millions)
Cash paid for (received from):      
Interest on financing activities, net of amount capitalized $329.5
 $255.9
 $153.9
Interest on financing activities of VIEs 1.6
 2.3
 3.1
Income taxes, net of refunds (5.2) (0.9) (12.7)
Non-cash investing transactions:      
Property, plant and equipment additions (reductions) 186.0
 (7.8) 158.8
Deconsolidation of property, plant and equipment of VIE —
 —
 (72.9)
Non-cash financing transactions:      
Issuance of stock for compensation and reinvested dividends (0.3) 0.5
 5.1
Deconsolidation of VIE —
 —
 (83.1)
Year Ended December 31202220212020
Evergy Metro(millions)
Cash paid for (received from):
Interest, net of amount capitalized$114.6 $110.8 $109.9 
Income taxes, net of refunds(15.2)36.6 4.8 
Non-cash investing transactions:
Property, plant and equipment additions125.8 102.2 192.5 
Year Ended December 31 2019 2018 2017
Evergy Kansas Central (millions)
Cash paid for (received from):      
Interest on financing activities, net of amount capitalized $143.0
 $155.3
 $153.9
Interest on financing activities of VIEs 1.6
 2.3
 3.1
Income taxes, net of refunds 29.9
 37.5
 (12.7)
Non-cash investing transactions:      
Property, plant and equipment additions (reductions) 92.1
 (32.5) 158.8
Deconsolidation of property, plant and equipment of VIE —
 —
 (72.9)
Non-cash financing transactions:      
Issuance of stock for compensation and reinvested dividends —
 —
 5.1
Deconsolidation of VIE —
 —
 (83.1)
Year Ended December 31 2019 2018 2017
Evergy Metro(a)
 (millions)
Cash paid for (received from):      
Interest on financing activities, net of amount capitalized $118.4
 $129.4
 $128.0
Income taxes, net of refunds 77.0
 31.2
 38.8
Non-cash investing transactions:      
Property, plant and equipment additions 80.7
 19.2
 36.6
(a) Non-cash property, plant and equipment additions in 2022 and 2020 for Evergy, Evergy Kansas Central and Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
See Note 2 for theinclude a non-cash informationaddition related to the merger transaction, includingrevision in estimate of various ARO liabilities in the fair valuefourth quarter of Great Plains Energy's assets acquired and liabilities assumed2022 and the issuanceWolf Creek ARO liability in the third quarter of Evergy common stock.2020. See Note 6 for more details.
Dividends Declared
In February 2020,2023, Evergy's Board of Directors (Evergy Board) declared a quarterly dividend of $0.505$0.6125 per share on Evergy's common stock.  The common dividend is payable March 20, 2020,22, 2023, to shareholders of record as of March 9, 2020.2023.
February 2021 Winter Weather Event
In February 2020,2021, 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). These circumstances resulted in higher than normal market prices within the SPP Integrated Marketplace for both natural gas and power for the duration of the February 2021 winter weather event. 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 $367.9 million. This $367.9 million of net fuel and purchased power costs incurred was primarily driven by $296.6 million of costs at Evergy Missouri West and $134.3 million of costs at Evergy Kansas Central's andCentral, partially offset by $63.0 million of net wholesale revenues at Evergy Metro's Boards of Directors each declared cash dividends payable to Evergy of $60.0 million, payable on March 19, 2020.

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Recently Adopted Accounting Standards
Leases
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 pattern of expense recognition in the income statement.  Lessor accounting remains largely unchanged. In January 2018, the FASB issued ASU No. 2018-01, Leases: Land Easement Practical Expedient for Transition to Topic 842, which permits entities to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity's adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which updates narrow aspects of the guidance issued in ASU No. 2016-02. Also in July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements, which provides an optional transition method that allows entities to initially apply Topic 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating prior periods. In December 2018, the FASB issued ASU No. 2018-20, Leases: Narrow-Scope Improvements for Lessors, which is expected to reduce a lessor's implementation and ongoing costs associated with applying ASU No. 2016-02. In March 2019, the FASB issued ASU No. 2019-01, Leases: Codification Improvements, which clarifies certain lessor accounting and interim reporting requirements. ASU No. 2016-02 and the subsequent amendments are effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted, and requires a modified retrospective transition approach with an option to either adjust or not adjust comparative periods. Metro.
The Evergy Companies adopted the new guidance on January 1, 2019, without adjusting comparative periods for all leases existing as of January 1, 2019, by electing the optional transition method permitted by ASU No. 2018-11. As a result, Evergy, Evergy Kansas Central and Evergy Metro recorded an increase to assets and liabilities of approximately $110 million, $40 million and $80 million, respectively, as of January 1, 2019. Evergy Kansas Central and Evergy Metro have certain lease transactions between them for which the related assets and liabilities are eliminated at consolidated Evergy. The adoption of Topic 842 did not have a material impact on the Evergy Companies consolidated statements of income and comprehensive income and there was no cumulative-effect adjustment recorded to the opening balance of retained earnings. The Evergy Companies also elected a practical expedient to forgo reassessing existing or expired contracts as leases to determine whether each is in scope of Topic 842 and to forgo reassessing lease classification for existing and expired leases.
Revenue Recognition
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. The ASU replaced most existing revenue recognition guidance in GAAP when it became effective. The Evergy Companies adopted ASU No. 2014-09 and its related amendments (Accounting Standards Codification (ASC) 606) on January 1, 2018, using the modified retrospective transition method for all contracts not completed as of the date of adoption. Results for reporting periods beginning after January 1, 2018, are presented under ASC 606 while historical periods have not been adjusted and continue to be reported in accordance with the legacy guidance in ASC 605 - Revenue Recognition. There was no cumulative effect adjustment to the opening balance of retained earnings in 2018 for the Evergy Companies as a result of the adoption of the new guidance.
2. MERGER OF GREAT PLAINS ENERGY AND EVERGY KANSAS CENTRAL
Description of Merger Transaction
On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement. As a result of the mergers, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger. Following the completion of these mergers, Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West, became wholly-owned subsidiaries of Evergy.
The merger was structured as a merger of equals in a tax-free exchange of shares that involved no premium paid or received with respect to either Great Plains Energy or Evergy Kansas Central. As a result of the closing of the

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merger transaction, each outstanding share of Great Plains Energy common stock was converted into 0.5981 shares of Evergy common stock and each outstanding share of Evergy Kansas Central common stock was converted into 1 share of Evergy common stock.
As provided in the Amended Merger Agreement,deferred substantially all of Evergy Kansas Central's outstanding equity compensation awards vestedthe fuel and were converted into a right to receive Evergy common stock and allpurchased power costs, net of Great Plains Energy's outstanding equity compensation awards were converted into equivalent Evergy awards subjectwholesale revenues, related to the same terms and conditions atFebruary 2021 winter weather event to a regulatory asset or liability for recovery or refund through the Great Plains Energy merger exchange ratio of 0.5981.
Merger Related Regulatory Matters
KCC
In May 2018, the KCC approved Great Plains Energy's, Evergy Metro's and Evergy Kansas Central's joint application for approval of the merger, including a settlement agreement that had been reached between Great Plains Energy, Evergy Metro, Evergy Kansas Central, KCC staff and certain other intervenors in the case. Through the joint application and settlement agreement, Great Plains Energy, Evergy Metro and Evergy Kansas Central agreed to the conditions and obligations listed below, in addition to other organizational, financing, customer service and civic responsibility commitments.
Provide a total of $30.6 million of one-time bill credits to Kansas electric retail customers as soon as practicable following the close of the merger and the completion of Evergy Kansas Central's and Evergy Metro's current rate cases in Kansas. Of this total, $23.1 million of the credits relate to Evergy Kansas Central's customers and the remaining $7.5 million of credits relate to Evergy Metro's Kansas customers.
Provide a total of approximately $46 million in additional bill credits consisting of $11.5 million in annual bill credits to Kansas electric retail customers from 2019 through 2022. Of the annual amount, $8.7 million of the credits relate to Evergy Kansas Central's customers and the remaining $2.8 million of credits relate to Evergy Metro's Kansas customers.
Provide for the inclusion of a total of $30.0 million of merger-related savings in Evergy Kansas Central's and Evergy Metro's current rate cases in Kansas. Of this total, $22.5 million of the savings are attributable to Evergy Kansas Central with the remaining $7.5 million of savings attributable to Evergy Metro's Kansas jurisdiction.
A five-year base rate moratorium for Evergy Kansas Central and Evergy Metro in Kansas that commenced following the conclusion of Evergy Metro's Kansas rate case in December 2018. The moratorium is subject to certain conditions and does not include Evergy Kansas Central's or Evergy Metro'srespective fuel recovery mechanisms and certain other cost recovery mechanisms in Kansas.
Require both Evergy Kansas Central and Evergy Metro to file rate cases in Kansas in a fashion that would allow for updated electric utility rates to become effective upon the end of the five-year rate moratorium in December 2023.
Participate in an Earnings Review and Sharing Plan for the years 2019 through 2022, which may result in Evergy Kansas Central and/or Evergy Metro being subject to refunding 50% of earned return on equity in excess of authorized return on equity to their Kansas customers.
Maintain charitable contributions and community involvement in the Kansas service territories of Evergy Kansas Central and Evergy Metro at levels equal to or greater than their respective 2015 levels for 5 years following the closing of the merger.
Commit that Evergy Kansas Central's and Evergy Metro's retail electric base rates will not increase asthrough a result of the merger.
Allow Evergy Kansas Central and Evergy Metro to recover a total of $30.9 million of merger transition costs consisting of $23.2 million for Evergy Kansas Central and $7.7 million for Evergy Metro's Kansas jurisdiction. Evergy Kansas Central and Evergy Metro have recorded these amounts as regulatory assets and they are being recovered over a ten-year period.

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MPSC
In May 2018, the MPSC approved Great Plains Energy's, Evergy Metro's, Evergy Missouri West's and Evergy Kansas Central's joint application for approval of the merger, including two stipulations and agreements between these companies, MPSC staff and certain other intervenors in the case. Through the joint application and stipulations and agreements, Great Plains Energy, Evergy Metro, Evergy Missouri West and Evergy Kansas Central agreed to the conditions and obligations listed below, in addition to other organizational,securitization financing customer service and civic responsibility commitments.
Provide a total of $29.1 million of one-time bill credits to Missouri electric retail customers within 120 days following the close of the merger. Of this total, $14.9 million of the credits relate to Evergy Metro's Missouri customers and the remaining $14.2 million of credits relate to Evergy Missouri West's customers.
Commit that Evergy Metro's and Evergy Missouri West's retail electric base rates will not increase as a result of the merger.
Maintain charitable contributions and community involvement in the Missouri service territories of Evergy Metro and Evergy Missouri Westorder at levels equal to or greater than their respective 2015 levels for 5 years following the closing of the merger.
Provide a total of $3.0 million of support over 10 years to community agencies to promote low-income weatherization efforts.
Support the recovery of a total of $16.9 million of merger transition costs in Evergy Metro's and Evergy Missouri West's 2018 rate cases, consisting of $9.7 million for Evergy Metro's Missouri jurisdiction and $7.2 million for Evergy Missouri West. Evergy Metro and Evergy Missouri West recordedSee Note 4 for additional information regarding these amounts as regulatory assets and they are being recovered over a ten-year period.
Accounting Charges and Deferrals Related to the Mergerproceedings.
The following pre-tax reductions of revenue, expenses and deferral were recognized following the consummation of the merger andEvergy Companies also engage in non-regulated energy marketing activities in various regional power markets. The energy marketing margins related to these non-regulatory energy marketing activities are includedrecorded net in operating revenues on the Evergy Companies' consolidated statements of income and comprehensive income for 2018.
DescriptionIncome Statement Line ItemExpected Payment Period Evergy Evergy Kansas Central Evergy Metro
    (millions)
One-time bill creditsOperating revenues2018 - 2019 $(59.7) $(23.1) $(22.4)
Annual bill creditsOperating revenues2019 - 2022 (10.5) (7.9) (2.6)
Total impact to operating revenues   $(70.2) $(31.0) $(25.0)
         
Charitable contributions and community supportOperating and maintenance2018 - 2027 $24.7
 $—
 $—
Voluntary severance and accelerated equity compensationOperating and maintenance2018 - 2019 47.9
 44.2
 2.6
Other transaction and transition costsOperating and maintenance2018 51.0
 21.5
 2.1
Reallocation and deferral of merger transition costsOperating and maintenancen/a (47.8) (13.8) (23.2)
Total impact to operating and maintenance expense   $75.8
 $51.9
 $(18.5)
Total   $(146.0) $(82.9) $(6.5)

Reductions of revenue related to customer bill credits and expenses related to charitable contributions and community support were incurred asincome. As a result of conditionsthe elevated market prices experienced in regional power markets across the MPSCcentral and KCC merger orderssouthern United States driven by the February 2021 winter weather event discussed above, Evergy and were recorded as liabilities in the amounts presented above following the consummation of the merger. Reductions of revenue for

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annual bill credits for Evergy Kansas Central's and Evergy Metro's Kansas electric retail customers are recognized ratably in the twelve-month period preceding their payment.
Voluntary severance and accelerated equity compensation represent costs related to payments for voluntary severance and change in control plans, as well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding 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).
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Evergy Equity Investment
From time to time, Evergy makes limited equity compensation awards.
Otherinvestments 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 and transition costs include merger success fees and fees for other outside services incurred.
Reallocation and deferralinvolving a special purpose acquisition company (SPAC). As a result of merger transition costs representsits equity investment in the net reallocation of incurred merger transition costs betweencompany that was acquired in the SPAC transaction, Evergy Evergy Kansas Central, Evergy Metro and Evergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset for future recovery in accordance with the KCC and MPSC merger orders.
Purchase Price
Based on an evaluationreceived shares of the provisions of ASC 805, Business Combinations, Evergy Kansas Central was determined to be the accounting acquirer in the merger. Pursuant to the Amended Merger Agreement, Great Plains Energy's common stock shares were exchanged for Evergy common stock shares at the fixed exchange rate of 0.5981. The total consideration transferred in the merger is based on the closing stock price of Evergy Kansas Central on June 4, 2018, and is calculated as follows.
  (millions, except share amounts)
Great Plains Energy common stock shares outstanding as of June 4, 2018 215,800,074
Great Plains Energy restricted stock awards outstanding as of June 4, 2018 (204,825)
Great Plains Energy shares to be converted to Evergy shares 215,595,249
Exchange ratio 0.5981
Evergy common stock shares issued to Great Plains Energy shareholders 128,947,518
Closing price of Evergy Kansas Central common stock as of June 4, 2018 $54.00
Fair value of Evergy shares issued to Great Plains Energy shareholders $6,963.2
Fair value of Great Plains Energy's equity compensation awards 12.5
Total purchase price $6,975.7

Great Plains Energy's equity compensation awards, including performance shares and restricted stock, were replaced by equivalent Evergy equity compensation awards subject to substantially the same terms and conditionsresulting public company upon the closing of the merger. In accordance withtransaction, which were subject to a restriction on sale for 150 days. Evergy recorded a $27.7 million unrealized gain in the accounting guidance in ASC 805,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 shares. The equity investment had a portion of the fair value of these awards is attributable$31.4 million as of December 31, 2021.
In March 2022, Evergy sold its shares in the equity investment to a financial institution through a share forward agreement following the expiration of the restriction on sale. As part of the share forward agreement, Evergy delivered its shares to the purchasefinancial institution in exchange for a series of cash settlements totaling $15.1 million based primarily on the volume-weighted average price as it represents consideration transferred(VWAP) of the shares over the term of the agreement, which was completed in June 2022. As a result of the completion of the share forward agreement, Evergy no longer has an equity investment in the merger.company.
Purchase Price Allocation
The fair valueIn 2022, Evergy recorded a pre-tax loss of Great Plains Energy's assets acquired and liabilities assumed as of June 4, 2018, was determined based$16.3 million in investment earnings on significant estimates and assumptions that are judgmental in nature. Third-party valuation specialists were engaged to assist in the valuation of these assets and liabilities.
The significant assets and liabilities recorded at fair values as of the merger date include long-term debt, asset retirement obligations, pension and post-retirement plans, accumulated deferred income tax liabilities and certain other long-term assets and liabilities.
The majority of Great Plains Energy's operations were subject to the rate-setting authority of the MPSC, the KCC and the Federal Energy Regulatory Commission (FERC) and were accounted for pursuant to GAAP, including the accounting guidance for regulated operations. The rate-setting and cost recovery provisions for Great Plains Energy's regulated operations provided revenue derived from costs including a return on investment of assets and liabilities included in rate base. Except for the significant assets and liabilities for which valuation adjustments

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were made as discussed above, the fair values of Great Plains Energy's tangible and intangible assets and liabilities subject to these rate-setting provisions approximated their carrying values and the assets and liabilities did not reflect any adjustments to these amounts other than for amounts not included in rate base. The difference between the fair value and pre-merger carrying amounts for Great Plains Energy's long-term debt, asset retirement obligations and pension and post-retirement plans that were related to regulated operations were recorded as a regulatory asset or liability. The excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed were recognized as goodwill as of the merger date.
The final purchase price allocation to Great Plains Energy's assets and liabilities as of June 4, 2018, is detailed in the following table.
  (millions)
Current assets $2,151.7
Property, plant and equipment, net 9,179.7
Goodwill 2,336.6
Other long-term assets, excluding goodwill 1,235.9
Total assets $14,903.9
Current liabilities 1,673.9
Long-term liabilities, excluding long-term debt 2,895.7
Long-term debt, net 3,358.6
Total liabilities $7,928.2
Total purchase price $6,975.7

The purchase price allocation in the table above reflects refinements made to the preliminary fair values of long-term liabilities, excluding long-term debt included in the Evergy Companies' combined 2018 annual report on Form 10-K. These refinements include adjustments associated with deferred income taxes that resulted in a decrease to goodwill of $2.3 million.
Impact of Merger
The impact of Great Plains Energy's subsidiaries on Evergy's revenues in theits consolidated statementstatements of comprehensive income for 2018 was an increase of $1,661.1 million. The impact of Great Plains Energy's subsidiaries on Evergy's net income attributable to Evergy in the consolidated statement of comprehensive income for 2018 was an increase of $236.2 million.
Evergy has incurred total merger-related costs, including reductions of revenue for customer bill credits, of $148.0 million for 2018 and $11.9 million for 2017.

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Pro Forma Financial Information
The following unaudited pro forma financial information reflects the consolidated results of operations of Evergy as if the merger transactions had taken place on January 1, 2017. The unaudited pro forma information was calculated after applying Evergy's accounting policies and adjusting Great Plains Energy's results to reflect purchase accounting adjustments.
The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of the consolidated results of operations that would have been achieved or the future consolidated results of operations of Evergy.
  2018 2017
 (millions, except per share amounts)
Operating revenues $5,334.6
 $5,279.2
Net income attributable to Evergy, Inc. 714.3
 468.9
Basic earnings per common share $2.67
 $1.73
Diluted earnings per common share $2.67
 $1.73

Evergy, Evergy Kansas Central and Great Plains Energy incurred non-recurring costs and a gain directly related to the merger that have been excludeddecrease in market value of its equity investment prior to sale and the settlement of the share forward agreement.
Renewable Generation Investment
In August 2022, Evergy Missouri West entered into an agreement with a renewable energy development company to purchase for approximately $250 million an operational wind farm located in the pro forma earnings presented above. On an after-tax basis, these non-recurring merger-related costsstate of Oklahoma with a generating capacity of approximately 199 MW. The purchase is subject to regulatory approvals and gain incurredclosing conditions, including the granting of a Certificate of Convenience and Necessity (CCN) by the MPSC. In January 2023, the MPSC staff recommended the MPSC reject Evergy Missouri West's application for a CCN and allow it to file a new application with updated economic analyses of the renewable generation investment or alternatively extend the procedural schedule to allow the MPSC staff time to evaluate the current economic analyses prepared by Evergy Evergy Kansas Central and Great Plains Energy included:Missouri West. A final decision by the MPSC is expected in the first half of 2023.
$74.7 million and $14.8 million in 2018 and 2017, respectively, of certain after-tax merger-related transition and transaction costs;
$44.4 million in 2018 of after-tax reductions in operating revenues related to one-time customer bill credits;
$278.0 million of after-tax financing charges in 2017 related to Great Plains Energy's previously contemplated acquisition of Evergy Kansas Central; and
$36.6 million and $7.3 million in 2018 and 2017, respectively, of after-tax mark-to-market gains on interest rate swaps for which cash settlement was contingent upon the consummation of the merger.
3.2. REVENUE
Evergy's, Evergy Kansas Central's and Evergy Metro's revenues disaggregated by customer class are summarized in the following tables.
Evergy2019 2018
Revenues(millions)
Residential$1,908.1
 $1,578.8
Commercial1,781.6
 1,356.4
Industrial621.6
 527.8
Other retail47.1
 30.6
Total electric retail$4,358.4
 $3,493.6
Wholesale327.5
 404.4
Transmission309.2
 308.1
Industrial steam and other24.5
 17.9
Total revenue from contracts with customers$5,019.6
 $4,224.0
Other128.2
 51.9
Operating revenues$5,147.8
 $4,275.9

Evergy
202220212020
Revenues(millions)
Residential$2,168.2 $1,918.3 $1,909.2 
Commercial1,888.5 1,681.3 1,641.7 
Industrial686.2 597.0 588.7 
Other retail(32.1)33.1 38.5 
Total electric retail$4,710.8 $4,229.7 $4,178.1 
Wholesale509.9 717.2 264.0 
Transmission343.7 356.8 318.5 
Industrial steam and other24.8 25.4 21.0 
Total revenue from contracts with customers5,589.2 5,329.1 4,781.6 
Other269.9 257.6 131.8 
Operating revenues$5,859.1 $5,586.7 $4,913.4 
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98




Evergy Kansas Central2019 2018
Revenues(millions)
Residential$793.9
 $846.4
Commercial709.1
 702.8
Industrial401.3
 396.4
Other retail21.0
 20.0
Total electric retail$1,925.3
 $1,965.6
Wholesale239.9
 346.1
Transmission273.3
 288.9
Other5.8
 6.0
Total revenue from contracts with customers$2,444.3
 $2,606.6
Other63.1
 8.3
Operating revenues$2,507.4
 $2,614.9

Evergy Metro(a)
2019 2018
Revenues(millions)
Residential$712.4
 $735.6
Commercial786.1
 794.8
Industrial136.9
 138.8
Other retail16.3
 10.4
Total electric retail$1,651.7
 $1,679.6
Wholesale70.9
 53.5
Transmission17.5
 14.5
Other2.8
 4.4
Total revenue from contracts with customers$1,742.9
 $1,752.0
Other63.6
 71.1
Operating revenues$1,806.5
 $1,823.1
(a) Evergy MetroEvergy's other retail electric revenues in 2022 include a $68.0 million deferral of revenues to a regulatory liability for the expected refund of amounts are included in consolidated Evergycollected from June 4,customers since December 2018 for the datereturn on investment of the closing of the merger, and thereafter.retired Sibley Station. See "Evergy Missouri West Other Proceedings" in Note 4 for additional information.
Evergy Kansas Central
202220212020
Revenues(millions)
Residential$980.1 $824.1 $801.2 
Commercial822.9 694.1 665.6 
Industrial465.7 391.7 379.9 
Other retail17.9 17.1 17.7 
Total electric retail$2,286.6 $1,927.0 $1,864.4 
Wholesale389.9 453.1 215.4 
Transmission305.0 322.9 287.3 
Other2.2 2.2 2.3 
Total revenue from contracts with customers$2,983.7 $2,705.2 $2,369.4 
Other72.2 142.1 48.7 
Operating revenues$3,055.9 $2,847.3 $2,418.1 


Evergy Metro
202220212020
Revenues(millions)
Residential$746.4 $691.9 $714.7 
Commercial758.6 713.3 717.1 
Industrial127.0 122.0 128.8 
Other retail11.5 9.2 11.7 
Total electric retail$1,643.5 $1,536.4 $1,572.3 
Wholesale111.9 242.6 35.0 
Transmission18.2 17.1 13.9 
Other0.9 3.6 2.6 
Total revenue from contracts with customers$1,774.5 $1,799.7 $1,623.8 
Other196.1 114.0 81.8 
Operating revenues$1,970.6 $1,913.7 $1,705.6 
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 on a monthly basis 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.
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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. Prior to the adoption of ASC 606 on January 1, 2018, Evergy Metro recorded sales taxes and franchise fees collected from its Missouri customers gross on Evergy Metro's statements of comprehensive income within operating revenues and taxes other than income taxes.

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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.
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 FERC,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.
Optional Exemption
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Evergy, Evergy Kansas Central and Evergy Metro do not disclose the value of unsatisfied performance obligations on certain bilateral wholesale contracts with an original expected duration of greater than one year for which they recognize revenue in the amount they have the right to invoice.

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4.3. RECEIVABLES
The Evergy Companies' receivables are detailed in the following table.
 December 31
  2019  2018 
Evergy (millions) 
Customer accounts receivable - billed $7.2
  $16.7
 
Customer accounts receivable - unbilled 104.0
  91.2
 
Other receivables 127.8
  95.0
 
Allowance for doubtful accounts (10.5)  (9.2) 
Total $228.5
  $193.7
 
Evergy Kansas Central   
Customer accounts receivable - billed $—
  $—
 
Customer accounts receivable - unbilled 49.7
  16.6
 
Other receivables 94.5
  71.6
 
Allowance for doubtful accounts (3.8)  (3.9) 
Total $140.4
  $84.3
 
Evergy Metro  
   
 
Customer accounts receivable - billed $3.1
  $7.8
 
Customer accounts receivable - unbilled 26.5
  42.9
 
Other receivables 23.1
  15.8
 
Allowance for doubtful accounts (4.6)  (3.8) 
Total $48.1
  $62.7
 

December 31
20222021
Evergy(millions)
Customer accounts receivable - billed$8.9 $13.7 
Customer accounts receivable - unbilled136.9 80.1 
Other receivables200.9 160.7 
Allowance for credit losses(31.4)(32.9)
Total$315.3 $221.6 
Evergy Kansas Central
Customer accounts receivable - billed$— $9.7 
Customer accounts receivable - unbilled71.4 26.4 
Other receivables194.9 178.5 
Allowance for credit losses(16.9)(13.0)
Total$249.4 $201.6 
Evergy Metro  
Customer accounts receivable - billed$— $2.7 
Customer accounts receivable - unbilled25.5 25.9 
Other receivables21.6 15.7 
Allowance for credit losses(9.3)(13.3)
Total$37.8 $31.0 
Evergy's,The Evergy Kansas Central's and Evergy Metro'sCompanies' other receivables at December 31, 20192022 and 2018,2021, consisted primarily of receivables from partners in jointly-owned electric utility plants, wholesale sales receivables and certain receivables related to alternative revenue programs. As of December 31, 2019,The Evergy Companies' other receivables for Evergy, Evergy Kansas Central and Evergy Metroalso included receivables from contracts with customers of $42.0 million, $37.7 million and $1.2 million, respectively. As of December 31, 2018, other receivables for Evergy, Evergy Kansas Central and Evergy Metro included receivables from contracts with customers of $65.8 million, $55.9 million and $5.5 million, respectively.
The Evergy Companies recorded bad debt expense related to contracts with customers as summarized in the following table.
December 31
20222021
(millions)
Evergy$113.0 $63.7 
Evergy Kansas Central110.8 62.6 
Evergy Metro1.3 0.5 
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 2019 2018 2017
 (millions)
Evergy$27.3
 $20.2
 $10.3
Evergy Kansas Central7.3
 8.5
 10.3
Evergy Metro (a)
13.7
 13.1
 7.6
The change in the Evergy Companies' allowance for credit losses is summarized in the following table.
(a) Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
20222021
Evergy(millions)
Beginning balance January 1$32.9 $19.3 
Credit loss expense16.1 28.0 
Write-offs(28.8)(26.4)
Recoveries of prior write-offs11.2 12.0 
Ending balance December 31$31.4 $32.9 
Evergy Kansas Central
Beginning balance January 1$13.0 $7.5 
Credit loss expense13.1 12.0 
Write-offs(13.7)(11.0)
Recoveries of prior write-offs4.5 4.5 
Ending balance December 31$16.9 $13.0 
Evergy Metro
Beginning balance January 1$13.3 $8.1 
Credit loss expense1.7 10.5 
Write-offs(10.2)(10.6)
Recoveries of prior write-offs4.5 5.3 
Ending balance December 31$9.3 $13.3 
Sale of Accounts Receivable
Evergy Kansas Central, Evergy Metro and Evergy Missouri West sell an undivided percentage ownership interest in their retail electric accounts receivable to independent outside investors. These sales of the undivided percentage ownership interests in accounts receivable to independent outside investors are accounted for as secured borrowings with accounts receivable pledged as collateral and a corresponding short-term collateralized note payable recognized on the balance sheets.  At December 31, 2019 and 2018, Evergy'sThe Evergy Companies' accounts receivable pledged as collateral and the corresponding short-term collateralized note payable were $339.0 million and $365.0 million, respectively. At December 31, 2019 and 2018, Evergy Kansas Central's accounts receivable pledged as collateral andare summarized in the corresponding short-term collateralized note payable were $171.0 million and $185.0 million, respectively.following table.

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At December 31, 2019 and 2018, Evergy Metro's accounts receivable pledged as collateral and the corresponding short-term collateralized note payable were $118.0 million and $130.0 million, respectively.
December 31
20222021
(millions)
Evergy$359.0 $319.0 
Evergy Kansas Central185.0 153.0 
Evergy Metro124.0 116.0 
Each receivable sale facility expires in September 2020.2024. Evergy Kansas Central's facility allows for $185.0 million in aggregate outstanding principal amount of borrowings from mid-October through mid-June and then $200.0 million from mid-June through the expiration date of the facility.mid-October. Evergy Metro's facility allows for $130.0 million in aggregate outstanding principal amount of borrowings at any time. Evergy Missouri West's facility allows for $50.0 million in aggregate outstanding principal amount of borrowings from mid-November through mid-June and then $65.0 million from mid-June through the expiration date of the facility.mid-November.
5.4. RATE MATTERS AND REGULATION
KCC Proceedings
Evergy Kansas Central 20192022 Transmission Delivery Charge (TDC)
In March 2019,2022, the KCC issued an order adjusting Evergy Kansas Central's retail prices to include updated transmission costs as reflected in the FERC transmission formula rate (TFR). The new prices were effective in April 20192022 and are expected to decreaseincrease Evergy Kansas Central's annual retail revenues by $7.7 million.$20.4 million when compared to 2021.
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Evergy Metro 20192022 TDC
In April 2019,2022, 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 20192022 and are expected to decreaseincrease Evergy Metro's annual retail revenues by $8.3 million.
Evergy Kansas Central Fuel Recovery Mechanism Recovery of 8% of Jeffrey Energy Center (JEC)
As part of the non-unanimous stipulation and agreement approved by the KCC in September 2018 in Evergy Kansas Central's 2018 rate case, it was agreed that in the event that Evergy Kansas Central purchased the 8% ownership interest in JEC that it had historically leased from a trust it would be entitled$7.9 million when compared to file a request with the KCC to recover operating and maintenance and capital costs associated with the 8% ownership through its fuel recovery mechanism as these amounts were not reflected in Evergy Kansas Central's rates established as part of the 2018 rate case.
In the first quarter of 2019, Evergy Kansas Central entered into an agreement with the trust to extend its lease of the 8% interest in JEC from the previous expiration date of January 2019 to August 2019 and to then purchase the 8% ownership interest from the trust at the time the lease expired. Pursuant to the agreement, Evergy Kansas Central's purchase of the 8% ownership interest of JEC closed in August 2019.
In March 2019, Evergy Kansas Central filed an application with the KCC to request recovery through its fuel recovery mechanism of deferred lease expense and operating and maintenance expense incurred during the lease extension and future operating and maintenance expense subsequent to the purchase of the 8% ownership interest in JEC. In September 2019, the KCC issued an order finding that the lease extension and subsequent purchase of the 8% ownership interest by Evergy Kansas Central were not prudent and disallowed the recovery from retail customers of all associated capital and operating costs that were incurred during the lease extension and will be incurred in the future. The KCC order also provided that Evergy Kansas Central be allowed to retain any wholesale electricity sales associated with the 8% ownership interest of JEC.
As a result of the KCC order in September 2019, Evergy and Evergy Kansas Central recorded an $8.4 million pre-tax loss to operating and maintenance expense in their consolidated statements of income and comprehensive income in 2019 associated with the write-off of a regulatory asset for the deferred lease expense and other operating expenses.2021.
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

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return on equity of 9.3% to the extent the excess earnings exceed the amount of annual bill credits that Evergy Kansas Central and Evergy Metro agreed to provide in connection with the merger that resulted in the formation of Evergy.
Evergy Kansas Central's and Evergy Metro's 2021 calculations of annual merger bill credits forearnings did not result in a refund obligation. These calculations were filed with the year being measured.
KCC in March 2022. As of December 31, 2019,2022, Evergy Kansas Central and Evergy Metro estimate their 2019estimates its 2022 annual earnings will not result in a significant refund obligation. As of December 31, 2022, Evergy Kansas CentralMetro estimates its 2022 annual earnings will result in a $16.7 million refund obligation, which was recorded as a reduction of operating revenues in the fourth quarter of 2022 on Evergy's and Evergy Metro expect to file their 2019 earnings calculations with the KCC in March 2020.Metro's consolidated statements of consolidated income and comprehensive income. The final refund obligation, if any,obligations for 2022 will be decided by the KCC and could vary from the current estimate.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 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 rate proceedings.
Evergy Kansas Central recognized a regulatory asset pursuant to the AAO of approximately $120 million related to its costs incurred during the February 2021 winter weather event, primarily consisting of increased fuel, purchased power, and associated carrying costs. Evergy Metro's Kansas jurisdiction recognized a regulatory liability of approximately $40 million related to its increased wholesale revenues during the February 2021 winter weather event and associated carrying costs.
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 2023. As part of the filing, Evergy Metro also requested a decrease to its February 2021 winter weather event refund to Kansas customers, 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.
In April 2022, Evergy Kansas Central, Evergy Metro, KCC staff and other intervenors filed a non-unanimous stipulation and agreement with the KCC that resolved all issues regarding the timing and method of recovery for costs and revenues deferred pursuant to the February 2021 winter weather event AAO. As part of the non-unanimous stipulation and agreement, Evergy Kansas Central and Evergy Metro agreed to recover or refund, as appropriate, their deferred February 2021 winter weather amounts to customers through their fuel recovery mechanisms over two years and one year, respectively, beginning in April 2023, and to use the rate of 1.00% to apply carrying charges to these deferred amounts. The non-unanimous stipulation and agreement also permitted Evergy Metro to request the future recovery in its next Kansas rate case of an approximately $5 million under-recovery related to its February 2021 winter weather event refund to Kansas customers for jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms.
In June 2022, the KCC issued an order approving the non-unanimous stipulation and agreement.
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MPSC Proceedings
Evergy Metro 2022 Rate Case Proceeding
In January 2022, Evergy Metro filed an application with the MPSC to request an increase to its retail revenues of $43.9 million before rebasing fuel and purchased power expense, with a return on equity of 10% and a rate-making equity ratio of 51.19%. The request reflected 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 also requested an additional $3.8 million increase associated with rebasing fuel and purchased power 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.
During the third quarter of 2022, Evergy Metro, MPSC staff and other intervenors in the case reached several non-unanimous partial stipulations and agreements to settle certain issues in the case. In September 2022, the MPSC issued an order approving the partial non-unanimous stipulations and agreements.
In December 2022, the MPSC issued an amended final rate order settling the remaining issues in the case. The order and prior partial stipulations and agreements approved by the MPSC provide for an increase to Evergy Metro's retail revenues of $25.0 million after rebasing fuel and purchased power expense. Also included in the final order was a disallowance related to the recovery of costs associated with the replacement of certain electric meters. As a result of this disallowance, Evergy and Evergy Metro recorded a loss of $5.5 million within other regulatory disallowances on their consolidated statements of comprehensive income for 2022. The rates established by the final rate order took effect in January 2023.
Evergy Missouri West 2022 Rate Case Proceeding
In January 2022, Evergy Missouri West filed an application with the MPSC to request an increase to its retail revenues of $27.7 million before rebasing fuel and purchased power expense, with a return on equity of 10% and a rate-making equity ratio of 51.81%. The request reflected 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 Missouri West also requested an additional $32.1 million increase associated with rebasing fuel and purchased power 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.
During the third quarter of 2022, Evergy Missouri West, MPSC staff and other intervenors in the case reached several non-unanimous partial stipulations and agreements to settle certain issues in the case. In September 2022, the MPSC issued an order approving the partial non-unanimous stipulations and agreements.
In December 2022, the MPSC issued an amended final rate order settling the remaining issues in the case, including the treatment of Evergy Missouri West's unrecovered investment in Sibley Station. The order and prior partial stipulations and agreements approved by the MPSC provide for an increase to Evergy Missouri West's retail revenues of $30.1 million after rebasing fuel and purchased power expense. The order determined that Evergy Missouri West will be allowed to collect $182.3 million ($173.6 million attributable to Sibley Unit 3) from customers over a period of eight years as a recovery of its existing investment in Sibley Station but will not be allowed to collect the return on its unrecovered investment in Sibley Station. The order also required Evergy Missouri West to refund to customers all revenues collected from customers for return on investment, non-fuel operations and maintenance costs and other costs associated with Sibley Station following its retirement in November 2018 over a period of four years. Also included in the final order was a disallowance related to the recovery of costs associated with the replacement of certain electric meters.
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As a result of the amended final order, Evergy recorded a $68.0 million reduction to operating revenues and a corresponding increase to its Sibley AAO regulatory liability for revenues collected from customers for return on investment in Sibley Station since December 2018, which had not previously been recorded as they were not determined to be probable of refund, a $26.7 million impairment loss on Sibley Unit 3 and a $2.7 million other regulatory disallowance related to the recovery of costs associated with the replacement of certain meters on its consolidated statement of comprehensive income for 2022. As of December 31, 2022, the remaining net book value of Sibley Unit 3 was $146.3 million, which is representative of the $173.6 million unrecovered investment in Sibley Unit 3 determined by the MPSC in its December 2022 order less the 2022 impairment loss recorded and other amortization expense. As of December 31, 2022, Evergy's Sibley AAO regulatory liability was $108.0 million. The rates established by this order took effect in January 2023.
Evergy Missouri West Other Proceedings
In December 2018, the Office of the Public Counsel (OPC) and the Midwest Energy Consumers Group (MECG) filed a petition with the MPSC requesting 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 to a regulatory liability for the revenues discussed above for consideration in Evergy Missouri West's nextcurrent rate case, which is expectedcase. Subsequent to be completed no later than 2022. Depending on the MPSC's decision in this next 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 a result of the MPSC order in 2019, Evergy has recorded a regulatory liability of $10.2 million as of December 31, 2019 for the estimated amount of revenues that Evergy Missouri West hashad collected from customers for Sibley Station since December 2018 that Evergy hashad determined iswas 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 next rate case.
The accrual for this estimated amount doesThis regulatory liability did not include certain revenues collected related to the return on investment in Sibley Station as Evergy determined that Evergy has determined tothey were not be probable of refund in the next rate case based on the relevant facts and circumstances. WhileAs of December 31, 2021, this Sibley AAO regulatory liability was $29.3 million.
As a result of the Evergy has determinedMissouri West current rate case determination, Evergy recorded an additional $68.0 million deferral to its Sibley AAO regulatory liability in 2022 for revenues collected from customers for return on investment in Sibley Station since December 2018. See "Evergy Missouri West 2022 Rate Case Proceeding" within this Note 4 for additional information.
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 initially deferred substantially all of their 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 ability to recover or refund these additionalamounts through their fuel recovery mechanisms, which allow for the recovery or refund of 95% of increases in fuel and purchased power 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. Evergy Metro's Missouri jurisdiction recognized a regulatory liability of approximately $25 million related to its increased wholesale revenues during the February 2021 winter weather event. Evergy Missouri West recognized a regulatory asset of approximately $280 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 March 2022, the MPSC ordered Evergy Metro in a separate regulatory proceeding to file an adjustment to its fuel recovery mechanism in order to allow its wholesale revenues from the February 2021 winter weather event to be probablerefunded to customers beginning in April 2022. The approximately $5 million decrease to the refund of refund,February 2021 winter weather amounts requested by Evergy Metro due to jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms was not included in the ultimateadjustment.
In April 2022, the MPSC staff filed a motion to suspend the February 2021 winter weather event AAO procedural schedule for Evergy Metro and Evergy Missouri West pending the resolution of this matter in Evergy Missouri West's next rate case is uncertainpetition for a securitization financing order discussed below. The MPSC granted the motion to suspend the AAO procedural schedule in April 2022. Evergy Metro began refunding the Missouri portion of its wholesale revenues from the February 2021 winter weather event to customers through its fuel recovery mechanism in April 2022.
Evergy Missouri West February 2021 Winter Weather Event Securitization
In March 2022, Evergy Missouri West filed a petition for financing order with the MPSC requesting authorization to finance its extraordinary fuel and could result in an estimated loss of up to approximately $12 million in excesspurchased power costs incurred as part of the amount accrued per year untilFebruary 2021 winter weather event, including carrying costs, through the issuance of securitized bonds. Evergy Missouri West requested to repay the securitized bonds and collect the related amounts from customers over a period of approximately 15 years from the date of issuance of the securitized bonds.
In November 2022, the MPSC issued a revised financing order authorizing Evergy Missouri West to issue securitized bonds to recover its extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather event. As part of this order, the MPSC found that Evergy Missouri West's new rates become effective. Evergy'scosts were prudently incurred, that it should only be allowed to recover 95% of its extraordinary fuel and purchased power costs consistent with the 5% sharing provision of its fuel recovery mechanism, that it should be allowed to recover carrying costs incurred since February 2021 at Evergy Missouri West's long-term debt rate of 5.06% and approved a 15 year repayment period for the bonds with a 17 year legal maturity. In the third quarter of 2022, Evergy Missouri West recorded an increase of $15.0 million to its February 2021 winter weather event regulatory liabilityasset for probable refunds asthe recovery of carrying charges granted in the MPSC's financing order. As of December 31, 20192022 and estimated loss in excess2021, the value of the amount accrued represent estimates that could change significantly based on ongoing developments including as a result of an appeal of the MPSC order, decisions in otherEvergy Missouri West's February 2021 winter weather event regulatory proceedings that establish precedent applicable to this matterasset was $309.0 million and positions of parties on this issue in a future$281.6 million, respectively. Evergy Missouri West rate case.will continue to record carrying charges on its February 2021 winter weather event regulatory asset until it issues the securitized bonds.
In January 2023, the OPC filed an appeal with the Missouri Court of Appeals, Western District, challenging the financing order regarding the treatment of income tax deductions, carrying costs and discount rates related to the financing of the extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather event. A final nonappealable financing order is required prior to the issuance of securitized bonds. A decision by the Missouri Court of Appeals, Western District, is currently expected in the second half of 2023, though the timeline for the decision is uncertain.
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 material and 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.

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Evergy Kansas Central TFR Annual Update
In the most recent three years, the updated TFR was expected to adjust Evergy Kansas Central's annual transmission revenues by approximately:
•$6.838.7 million increase effective in January 2020;
•
$11.2 million2023; decrease effective in January 2019; and
•
$2.3 million increase effective in January 2018.

•$33.2 million increase effective in January 2022; and
95•$32.4 million increase effective in January 2021.
Evergy Kansas Central TFR Formal Challenge
TableIn March 2022, certain Evergy Kansas Central TFR customers submitted a formal challenge regarding the implementation of ContentsEvergy Kansas Central's TFR, specifically with regards to how Evergy Kansas Central's capital structure was calculated as part of determining the Annual Transmission Revenue Requirement (ATRR). As part of this challenge, the customers requested that Evergy Kansas Central make refunds for over-collections in rate years 2018, 2019, 2020, 2021 and 2022 as a result of the calculation of its capital structure included in the TFR. Evergy Kansas Central disputed that any refunds for 2018 - 2022 were required as Evergy Kansas Central was following its approved TFR formula.




In December 2022, FERC issued an order upholding in part, and denying in part, the formal challenge of Evergy Kansas Central's TFR by certain customers. The order required Evergy Kansas Central to refund over-collections related to the calculation of its capital structure for the rate years 2020, 2021 and 2022, with interest. The order also denied approving the refund of 2018 and 2019 amounts as part of the formal challenge on a procedural basis but indicated that the customers could pursue a refund of over collections for these rate years through a separate FERC filing. As a result of this order, Evergy and Evergy Kansas Central recorded a $32.8 million decrease to operating revenues on their consolidated statements of income and comprehensive income for 2022 for the deferral to a regulatory liability of the estimated refund of TFR revenue over-collections related to the calculation of Evergy Kansas Central's capital structure for rate years 2018 - 2022. Evergy Kansas Central currently expects that the refund of the 2020, 2021 and 2022 over-collections will occur as part of its 2023 TFR. Evergy Kansas Central's calculation of its estimated refund to TFR customers must still be reviewed and approved by FERC, and that estimate could change based on that review.
Evergy Metro TFR Annual Update
In the most recent three years, the updated TFR was expected to adjust Evergy Metro's annual transmission revenues by approximately:
•
$1.7 million decrease effective in January 2020;
•$2.88.6 million increase effective in January 2023;
•$18.1 million increase effective in January 2022; and
•$3.9 million decrease effective in January 2019; and2021.
$3.7 million increase effective in January 2018.
Regulatory Assets and Liabilities
The 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 they 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 Evergy Kansas Central's, Evergy Metro's and 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 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
107
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.

96

The Evergy Companies' regulatory assets and liabilities are detailed in the following tables.
  December 31
  2019 2018
  Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Regulatory Assets (millions)
Pension and post-retirement costs $795.9
 $359.9
 $330.7
 $808.2
 $343.7
 $361.5
Debt reacquisition costs 105.8
 97.3
 7.5
 113.5
 104.1
 8.2
Debt fair value adjustment 112.0
 —
 —
 134.5
 —
 —
Asset retirement obligations fair value
adjustment		 114.3
 —
 —
 111.4
 —
 —
Depreciation 55.3
 55.3
 —
 58.0
 58.0
 —
Cost of removal 129.3
 94.4
 34.9
 102.4
 65.7
 36.7
Asset retirement obligations 167.1
 52.8
 79.4
 171.9
 49.5
 91.6
Analog meter unrecovered investment 29.9
 29.9
 —
 35.6
 35.6
 —
Treasury yield hedges 22.6
 22.6
 —
 23.7
 23.7
 —
Iatan No. 1 and common facilities 7.1
 —
 2.8
 7.4
 —
 2.9
Iatan No. 2 construction accounting costs 26.1
 —
 13.1
 26.8
 —
 13.5
Kansas property tax surcharge 21.7
 18.7
 3.0
 33.1
 23.7
 9.4
Disallowed plant costs 14.8
 14.8
 —
 15.0
 15.0
 —
La Cygne environmental costs 13.7
 11.2
 2.5
 14.8
 12.2
 2.6
Deferred customer programs 18.0
 6.2
 8.3
 19.9
 7.0
 8.0
Fuel recovery mechanisms 34.7
 —
 16.6
 91.2
 7.1
 41.7
Solar rebates 39.8
 —
 9.0
 45.2
 —
 13.9
Transmission delivery charge —
 —
 —
 0.8
 —
 0.8
Wolf Creek outage 31.0
 15.5
 15.5
 21.8
 10.9
 10.9
Pension and other post-retirement benefit
non-service costs		 31.8
 7.4
 15.6
 13.6
 5.2
 4.8
Retired generation facilities 130.5
 —
 —
 159.9
 —
 —
Merger transition costs 42.3
 20.3
 15.6
 47.0
 22.6
 17.3
Other regulatory assets 28.5
 17.4
 5.3
 6.1
 13.5
 2.3
Total 1,972.2

823.7

559.8

2,061.8

797.5

626.1
Less: current portion (231.7) (93.3) (95.4) (303.9) (97.1) (130.9)
Total noncurrent regulatory assets $1,740.5

$730.4

$464.4

$1,757.9

$700.4

$495.2


December 31
20222021
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Regulatory Assets(millions)
Pension and post-retirement costs$137.3 $54.9 $— $567.2 $265.6 $213.3 
Debt reacquisition costs87.7 80.9 6.0 94.4 86.7 6.7 
Debt fair value adjustment92.1 — — 96.5 — — 
Asset retirement obligations fair value
   adjustment		119.4 — — 117.9 — — 
Depreciation159.1 47.2 57.1 98.5 50.1 27.0 
Cost of removal346.8 158.2 140.6 257.5 141.0 90.2 
Asset retirement obligations127.5 54.5 53.4 119.3 52.3 49.1 
Analog meter unrecovered investment12.6 12.6 — 18.4 18.4 — 
Treasury yield hedges19.2 19.2 — 20.4 20.4 — 
Iatan No. 1 and common facilities6.2 — 2.6 6.5 — 2.7 
Iatan No. 2 construction accounting costs24.0 — 12.0 24.7 — 12.4 
Property taxes51.4 33.0 15.8 39.6 31.6 8.0 
Disallowed plant costs13.9 13.9 — 14.2 14.2 — 
La Cygne environmental costs10.0 7.9 2.1 11.2 9.0 2.2 
Deferred customer programs14.3 6.5 6.7 18.7 6.4 7.8 
Fuel recovery mechanisms188.5 — 13.5 202.5 120.8 19.8 
February 2021 winter weather event430.9 121.9 — 403.1 121.5 — 
Solar rebates15.6 — — 20.2 — — 
Transmission delivery charge1.5 — 1.5 — — — 
Wolf Creek outage22.8 11.4 11.4 20.4 10.2 10.2 
Pension and other post-retirement benefit
   non-service costs		75.3 24.8 30.7 65.6 23.0 29.6 
Retired generation facilities146.3 — — 123.4 — — 
Merger transition costs28.1 13.3 10.5 32.7 15.6 12.1 
Other regulatory assets83.8 51.7 9.9 42.3 24.1 5.9 
Total2,214.3 711.9 373.8 2,415.2 1,010.9 497.0 
Less: current portion(368.0)(121.9)(42.3)(424.1)(257.3)(86.3)
Total noncurrent regulatory assets$1,846.3 $590.0 $331.5 $1,991.1 $753.6 $410.7 
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108




  December 31
  2019 2018
  Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Regulatory Liabilities (millions)
Taxes refundable through future rates $1,656.5
 $856.4
 $568.9
 $1,703.6
 $853.2
 $609.2
Deferred regulatory gain from sale
leaseback		 53.6
 53.6
 —
 59.1
 59.1
 —
Emission allowances 50.1
 —
 50.1
 54.1
 —
 54.1
Nuclear decommissioning 267.3
 116.5
 150.8
 188.2
 84.5
 103.7
Pension and post-retirement costs 59.3
 31.5
 20.3
 53.4
 28.3
 25.1
Jurisdictional allowance for funds used
during construction		 28.7
 28.7
 —
 30.3
 30.3
 —
La Cygne leasehold dismantling costs 29.6
 29.6
 —
 29.5
 29.5
 —
Cost of removal 49.1
 —
 —
 48.1
 —
 —
Kansas tax credits 17.0
 17.0
 —
 16.5
 16.5
 —
Purchase power agreement 7.4
 7.4
 —
 8.8
 8.8
 —
Merger customer credits —
 —
 —
 7.5
 —
 7.5
Fuel recovery mechanisms 34.1
 30.2
 —
 —
 —
 —
Sibley AAO 10.2
 —
 —
 —
 —
 —
Refund of tax reform benefits —
 —
 —
 70.9
 7.2
 36.3
Other regulatory liabilities 48.7
 3.9
 13.5
 59.0
 3.9
 11.2
Total 2,311.6
 1,174.8
 803.6
 2,329.0
 1,121.3
 847.1
Less: current portion (63.3) (42.3) (11.4) (110.2) (19.5) (52.8)
Total noncurrent regulatory liabilities $2,248.3
 $1,132.5
 $792.2
 $2,218.8
 $1,101.8
 $794.3

December 31
20222021
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Regulatory Liabilities(millions)
Taxes refundable through future rates$1,866.6 $1,084.2 $586.6 $1,969.5 $1,143.7 $616.1 
Deferred regulatory gain from sale
leaseback		37.1 37.1 — 42.6 42.6 — 
Emission allowances38.2 — 38.2 42.1 — 42.1 
Nuclear decommissioning246.3 103.4 142.9 400.1 175.7 224.4 
Pension and post-retirement costs98.4 23.0 72.5 44.4 23.2 15.9 
Jurisdictional allowance for funds used
during construction		25.9 24.2 1.7 27.5 25.8 1.7 
La Cygne leasehold dismantling costs29.6 29.6 — 29.6 29.6 — 
Kansas tax credits23.5 23.5 — 16.7 16.7 — 
Purchase power agreement4.1 4.1 — 5.8 5.8 — 
Fuel recovery mechanisms4.7 4.5 0.2 6.5 — 6.5 
February 2021 winter weather event37.8 — 37.8 65.1 — 65.1 
Sibley AAO108.0 — — 29.3 — — 
TFR refunds55.5 55.5 — — — — 
Other regulatory liabilities146.5 51.9 48.2 96.5 19.1 37.0 
Total2,722.2 1,441.0 928.1 2,775.7 1,482.2 1,008.8 
Less: current portion(155.4)(72.1)(55.3)(70.7)(12.8)(54.6)
Total noncurrent regulatory liabilities$2,566.8 $1,368.9 $872.8 $2,705.0 $1,469.4 $954.2 
The following summarizes the nature and period of recovery for each of the regulatory assets listed in the table above.
Pension and post-retirement costs: Represents unrecognized gains and losses and prior service 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, $735.4 million, $359.9$116.3 million and $312.9$54.9 million for Evergy and Evergy Kansas Central, and Evergy Metro, respectively, are not included in rate base and are amortized over various periods. Additionally, $288.4$201.0 million, ($23.6)$(5.6) million and $131.1$126.2 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.
Debt 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 Plains Energy and Evergy Kansas Central merger. Amount is amortized over the life of the related plant and is not included in rate base.

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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 7.6. 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, $21.6$10.1 million is not included in rate base for Evergy and Evergy Kansas Central and is being amortized over a five-yearfive-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.
Iatan 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 2059.
Kansas property tax surcharge:Property taxes: Represents actual costs incurred for property taxes in excess of amounts collected in revenues.revenues in both Kansas and Missouri. These costs are expected to be recovered over a one-year periodvarious periods 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, $10.2$7.2 million for Evergy and $8.3$6.1 million for Evergy Metro are not included in rate base and are amortized 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-yearone-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. Of these amounts, $121.9 million for Evergy and Evergy Kansas Central is 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.
Transmission delivery charge: Represents costs associated with the transmission delivery charge. The amounts are not included in rate base and are amortized over a one-year period.
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.
110
Retired generation facilities: Represents amounts to be recovered for facilities that have been retired and are probable of recovery.
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.

99

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-yearfive-year period.
Merger customer credits: Represents one-time merger bill credits to Evergy Metro's Kansas electric retail customers that were provided in the first quarter of 2019.
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-yearone-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 recordedcollected in connection with an AAO granted by the MPSC in October 2019 and deferred amounts will be considered byrepresent revenues that Evergy Missouri West collected from customers for the MPSCreturn on its unrecovered investment in Sibley Station, non-fuel operations and maintenance costs and other costs associated with Sibley Station following its retirement in November 2018. The amended final order in Evergy Missouri West's next2022 rate case.case required Evergy Missouri West to refund these revenues to customers over a four-year period.
Refund of tax reform benefits:TFR refunds: Represents amounts collected fromthe amount ordered to be refunded to TFR customers in 2018for over-collections related to federal income tax in excessthe calculation of Evergy Kansas Central's capital structure for the income tax owed by the Evergy Companiesrate years 2020 - 2022. This difference is expected to be refunded as a resultpart of its 2023 TFR. In addition, this includes amounts probable of refund for similar issues for years 2018 - 2019 and amounts related to the lower federalamortization of excess deferred income tax rate enactedtaxes authorized by the Tax Cuts and Jobs Act (TCJA) and were refunded to customersFERC in 2019.
111
December 2022. See "Evergy Kansas Central TFR Formal Challenge" within this Note 4 for additional information.
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.

100

6.5. GOODWILL
Accounting rules requireGAAP requires goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. Evergy's impairment test for the $2,336.6 million of goodwill that was recorded as a result of the Great Plains Energy and Evergy Kansas Central merger was conducted as of May 1, 2019.2022. 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. Evergy's consolidated operations are considered 1one reporting unit for assessment of impairment, as management assesses financial performance and 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 multiple derived from the historical earnings before interest, income taxes, depreciation and amortization 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. The fair value of the reporting unit exceeded the carrying amount, including goodwill. As a result, there was no impairment of goodwill.
7.6. 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.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West have AROs related to asbestos abatement and the closure and post-closure care of ponds and landfills containing coal combustion residuals (CCRs).In addition, Evergy Kansas Central and Evergy Metro have AROs related to decommissioning Wolf Creek and the retirement of wind generation facilities.
The following table summarizes the change in the Evergy Companies' AROs.AROs for the periods ending December 31, 2022 and 2021.
EvergyEvergy Kansas CentralEvergy Metro
202220212022202120222021
(millions)
Beginning balance January 1$960.1 $941.9 $443.9 $427.2 $381.0 $378.9 
Revision in timing and/or estimates161.8 13.5 103.1 3.8 51.3 9.5 
Settlements(13.0)(38.7)(6.9)(10.6)(5.3)(24.4)
Accretion44.3 43.4 25.0 23.5 17.2 17.0 
Ending balance$1,153.2 $960.1 $565.1 $443.9 $444.2 $381.0 
Less: current portion(40.4)(19.5)(21.3)(7.3)(17.1)(11.0)
Total noncurrent asset
   retirement obligation		$1,112.8 $940.6 $543.8 $436.6 $427.1 $370.0 
  Evergy  Evergy Kansas Central  
Evergy Metro(a)
 
  2019  2018  2019  2018  2019  2018 
  (millions) 
Beginning balance $687.1
  $405.1
  $281.1
  $405.1
  $261.0
  $266.3
 
Liabilities assumed upon merger with Great Plains Energy —
  412.2
  —
  —
  —
  —
 
Liabilities incurred during the year —
  7.4
  —
  7.4
  —
  —
 
Revision in timing and/or estimates (22.3)  (150.1)  (12.4)  (138.7)  (9.9)  (11.4) 
Settlements (17.8)  (22.4)  (14.8)  (12.0)  (2.5)  (13.1) 
Accretion 27.1
  34.9
  19.0
  19.3
  5.0
  19.2
 
Ending balance $674.1
  $687.1
  $272.9
  $281.1
  $253.6
  $261.0
 
Less: current portion (71.3)  (49.8)  (23.3)  (17.1)  (36.1)  (29.2) 
Total noncurrent asset retirement obligation $602.8
  $637.3
  $249.6
  $264.0
  $217.5
  $231.8
 
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(a) Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
See Note 2 for more information regarding Evergy Metro's and Evergy Missouri West's ARO liabilities that Evergy assumed as a result of the merger.

101




In 2018,2022, the Evergy Companies completed an engineering study that resulted in recording revisions in estimates for AROs at ponds and Evergy Kansas Central recorded a $127.0 million revisionlandfills containing CCRs, primarily at La Cygne Station and JEC, driven by higher cost estimates primarily due to increased scope of surface area remediation, cost inflation and changes in estimate primarily related to Evergy Kansas Central's ARO to decommission its 47% indirect ownership shareassumed method of Wolf Creek.closure at certain sites, among other factors.
8.7. PROPERTY, PLANT AND EQUIPMENT
The following tables summarize the property, plant and equipment of Evergy, Evergy Kansas Central and Evergy Metro.
December 31, 2019 Evergy Evergy Kansas Central Evergy Metro
   (millions) 
Electric plant in service  $27,768.8
   $13,538.1
   $10,776.5
 
Electric plant acquisition adjustment  740.6
   740.6
   —
 
Accumulated depreciation  (10,293.7)   (4,951.5)   (4,272.0) 
Plant in service  18,215.7
   9,327.2
   6,504.5
 
Construction work in progress  839.2
   472.8
   269.9
 
Nuclear fuel, net  128.5
   63.9
   64.6
 
Plant to be retired, net (a)
  1.0
   1.0
   —
 
Net property, plant and equipment  $19,184.4
   $9,864.9
   $6,839.0
 
       
   
 
December 31, 2018 Evergy Evergy Kansas Central Evergy Metro
   (millions) 
Electric plant in service  $26,916.7
   $13,176.7
   $10,439.1
 
Electric plant acquisition adjustment  740.6
   740.6
   —
 
Accumulated depreciation  (9,694.1)   (4,642.8)   (4,022.4) 
Plant in service  17,963.2
   9,274.5
   6,416.7
 
Construction work in progress  685.2
   376.7
   204.4
 
Nuclear fuel, net  133.1
   66.1
   67.0
 
Plant to be retired, net (a)
  1.0
   1.0
   —
 
Net property, plant and equipment  $18,782.5
   $9,718.3
   $6,688.1
 

December 31, 2022EvergyEvergy Kansas CentralEvergy Metro
(millions)
Electric plant in service$32,129.3 $15,376.9 $12,343.3 
Electric plant acquisition adjustment724.3 724.3 — 
Accumulated depreciation(12,304.9)(5,922.9)(5,065.3)
Plant in service20,548.7 10,178.3 7,278.0 
Construction work in progress1,421.2 819.5 482.6 
Nuclear fuel, net165.8 82.2 83.6 
Plant to be retired, net (a)
0.8 0.8 — 
Net property, plant and equipment$22,136.5 $11,080.8 $7,844.2 
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 
(a) As of December 31, 20192022 and 2018,2021, 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 
  2019 2018
   (millions) 
Electric plant of VIEs  $392.1
   $392.1
 
Accumulated depreciation of VIEs  (230.1)   (222.9) 
Net property, plant and equipment of VIEs  $162.0
   $169.2
 


December 31
20222021
(millions)
Electric plant of VIEs$392.1 $392.1 
Accumulated depreciation of VIEs(251.4)(244.3)
Net property, plant and equipment of VIEs$140.7 $147.8 
102
113




Depreciation Expense
The Evergy Companies' depreciation expense is detailed in the following table.
  2019 2018 2017
 (millions)
Evergy (a)
 $786.3
 $567.9
 $350.0
Evergy Kansas Central (a)
 425.8
 371.3
 350.0
Evergy Metro (b)
 262.7
 235.3
 228.4

202220212020
(millions)
Evergy (a)
$836.1 $813.6 $804.7 
Evergy Kansas Central (a)
468.2 450.3 435.1 
Evergy Metro261.7 255.9 269.5 
(a) Approximately $7.1 million, $7.1 million and $8.3 million of depreciation expense in 2019, 2018each of 2022, 2021 and 2017, respectively,2020 was attributable to property, plant and equipment of VIEs.
(b) Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
9.8. JOINTLY-OWNED ELECTRIC UTILITY PLANTS
Evergy's, Evergy Kansas Central's and Evergy Metro's share of jointly-owned electric utility plants at December 31, 2019,2022, 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		$4,132.4 $2,251.9 $773.6 $1,409.5 $508.2 $2,546.9 $115.0 
Accumulated depreciation2,124.5 874.2 269.0 506.2 132.4 1,102.3 89.9 
Nuclear fuel, net165.8 — — — — — — 
Construction work in progress209.1 25.9 19.8 5.3 11.2 60.1 26.9 
2023 accredited
   capacity-MWs		1,106 1,426 618 653 n/a2,182 205 
(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 19 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$2,070.5 $1,052.3 $2,331.3 $115.0 
Accumulated depreciation1,036.1 503.6 1,006.7 89.9 
Nuclear fuel, net82.2 — — — 
Construction work in progress99.9 10.0 55.2 26.9 
2023 accredited capacity-MWs553 713 2,007 205 
(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 19 for additional information.
114
Evergy                            
  Wolf Creek Unit 
La Cygne Units (a)
 Iatan No. 1 Unit Iatan No. 2 Unit Iatan Common Jeffrey Energy Center State Line
  (millions, except MW amounts)
Evergy's share  94%   100%   88%   73%   79%   100%   40% 
                             
Utility plant in service  $3,827.8
   $2,202.4
   $718.9
   $1,379.7
   $484.3
   $2,428.6
   $114.6
 
Accumulated depreciation  1,835.3
   751.6
   269.2
   447.2
   116.4
   918.1
   75.9
 
Nuclear fuel, net  128.6
   —
   —
   —
   —
   —
   —
 
Construction work in progress  141.4
   21.0
   54.4
   23.5
   9.4
   38.9
   2.8
 
2020 accredited capacity-MWs  1,104
   1,398
   616
   650
   NA
   2,186
   196
 
(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 19 for additional information.
Evergy Kansas Central                
  Wolf Creek Unit 
La Cygne Units (a)
  Jeffrey Energy Center
State
Line
  
(millions, except MW amounts)

Evergy Kansas Central's share  47%   50%   92%   40% 
                 
Utility plant in service  $1,884.5
   $1,048.0
   $2,223.4
   $114.6
 
Accumulated depreciation  862.2
   426.5
   832.5
   75.9
 
Nuclear fuel, net  63.9
   —
   —
   —
 
Construction work in progress  67.3
   14.6
   34.9
   2.8
 
2020 accredited capacity-MWs  552
   699
   2,011
   196
 
(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 19 for additional information.

103




Evergy Metro                    
  Wolf Creek Unit La Cygne Units Iatan No. 1 Unit Iatan No. 2 Unit Iatan Common
  (millions, except MW amounts)
Evergy Metro's share  47%   50%   70%   55%   61% 
                     
Utility plant in service  $1,943.3
   $1,154.4
   $575.1
   $1,060.7
   $390.1
 
Accumulated depreciation  973.1
   325.1
   214.9
   393.0
   99.8
 
Nuclear fuel, net  64.7
   —
   —
   —
   —
 
Construction work in progress  74.1
   6.4
   25.9
   3.5
   1.3
 
2020 accredited capacity-MWs  552
   699
   490
   491
   NA
 

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$2,061.9 $1,199.6 $601.0 $1,068.9 $403.2 
Accumulated depreciation1,088.4 370.6 219.6 431.0 111.5 
Nuclear fuel, net83.6 — — — — 
Construction work in progress109.2 15.9 15.8 4.0 8.5 
2023 accredited capacity-MWs553 713 492 491 n/a
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.
10.9. PENSION PLANS AND POST-RETIREMENT BENEFITS
Evergy and certain of its subsidiaries maintain, and Evergy Kansas Central and Evergy Metro participate in, qualified non-contributory defined benefit pension plans covering the majority of Evergy Kansas Central's and Evergy Metro's employees as well as certain non-qualified plans covering certain active and retired officers. Evergy is also responsible for its indirect 94% ownership share of Wolf Creek's defined benefit 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. However, 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 2012 are derived from a cash balance account formula. The plan was closed to future non-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 provide certain post-retirement health care and life insurance benefits for substantially all retired employees of Evergy Kansas Central and Evergy Metro and their respective shares of Wolf Creek's post-retirement benefit plans.
The Evergy Companies record pension and post-retirement expense in accordance with rate orders from the KCC and MPSC 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.
For 2019,2022, Evergy, Evergy Kansas Central and Evergy Metro recorded pension and post-retirement special termination benefits of $59.5 million, $17.0 million and $42.5 million, respectively. For 2021, Evergy, Evergy Kansas Central and Evergy Metro recorded pension settlement charges of $34.3 million, $25.6 million and $13.7 million, respectively. For 2020, Evergy and Evergy Metro recorded pension settlement charges of $15.6$11.2 million and $23.0$14.3 million, respectively,respectively. These settlement charges and special termination benefits were the result of accelerated and enhanced pension distributions as a result of accelerated pension distributions related to voluntary severance programs.employee retirements and annuity purchases for certain plan participants. 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.


104115




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. Net periodic benefit costs reflect total plan benefit costs prior to the effects of capitalization and sharing with joint owners of power plants. Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Change in projected benefit obligation (PBO)(millions)
PBO at January 1, 2022$2,561.7 $1,264.4 $1,273.5 $258.4 $133.9 $124.5 
Service cost79.7 30.7 49.0 3.0 1.5 1.5 
Interest cost79.3 38.8 39.8 7.9 4.1 3.8 
Contribution by participants— — — 6.9 1.0 5.8 
Plan amendments0.6 0.3 0.3 — — — 
Actuarial gain(717.9)(334.3)(378.6)(58.1)(28.7)(29.4)
Benefits paid(189.4)(100.1)(88.0)(23.1)(10.2)(12.9)
Special termination benefits52.8 15.6 37.2 6.7 1.4 5.3 
Other(16.3)(3.7)(12.6)— — — 
PBO at December 31, 2022$1,850.5 $911.7 $920.6 $201.7 $103.0 $98.6 
Change in plan assets
Fair value of plan assets at January 1, 2022$1,714.7 $835.7 $879.0 $242.3 $124.0 $118.3 
Actual return on plan assets(192.6)(97.1)(95.5)(34.9)(19.2)(15.7)
Contributions by employer and participants88.4 31.2 57.2 7.0 1.1 5.9 
Benefits paid(185.0)(97.6)(87.4)(21.5)(9.7)(11.8)
Other(16.3)(3.7)(12.6)— — — 
Fair value of plan assets at December 31, 2022$1,409.2 $668.5 $740.7 $192.9 $96.2 $96.7 
Funded status at December 31, 2022$(441.3)$(243.2)$(179.9)$(8.8)$(6.8)$(1.9)
Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Amounts recognized in the consolidated balance sheets(millions)
Non-current asset$— $— $— $16.8 $— $16.8 
Current pension and other post-retirement liability(7.2)(4.7)(1.3)(1.3)(0.6)(0.7)
Noncurrent pension liability and other post-retirement liability(434.1)(238.5)(178.6)(24.3)(6.2)(18.0)
Net amount recognized before regulatory treatment(441.3)(243.2)(179.9)(8.8)(6.8)(1.9)
Accumulated OCI or regulatory asset/liability(140.2)50.3 (180.3)(24.5)(12.8)(18.4)
Net amount recognized at December 31, 2022$(581.5)$(192.9)$(360.2)$(33.3)$(19.6)$(20.3)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:
Actuarial (gain) loss$(153.8)$35.0 $(179.0)$(25.3)$(13.2)$(13.1)
Prior service cost13.6 15.3 (1.3)0.8 0.4 (5.3)
Net amount recognized at December 31, 2022$(140.2)$50.3 $(180.3)$(24.5)$(12.8)$(18.4)
  Pension Benefits Post-Retirement Benefits
  Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Change in projected benefit obligation (PBO) (millions)
PBO at January 1, 2019 $2,553.4
 $1,258.9
 $1,272.4
 $249.3
 $133.6
 $115.7
Service cost 79.1
 29.0
 50.1
 2.5
 1.1
 1.4
Interest cost 108.0
 53.7
 53.3
 10.5
 5.6
 4.9
Contribution by participants —
 —
 —
 8.8
 1.9
 6.9
Actuarial loss 262.4
 120.3
 140.5
 20.9
 9.5
 11.4
Benefits paid (180.5) (136.9) (42.3) (27.7) (13.0) (14.7)
Settlements (96.6) —
 (96.6) —
 —
 —
Other (7.6) (1.6) (6.0) —
 —
 —
PBO at December 31, 2019 $2,718.2
 $1,323.4
 $1,371.4
 $264.3
 $138.7
 $125.6
Change in plan assets            
Fair value of plan assets at January 1, 2019 $1,603.4
 $804.6
 $798.8
 $223.3
 $109.7
 $113.6
Actual return on plan assets 284.0
 130.5
 153.5
 30.0
 20.0
 10.0
Contributions by employer and participants 125.2
 43.0
 82.2
 13.2
 3.5
 9.7
Benefits paid (175.6) (134.4) (41.2) (26.6) (12.7) (13.9)
Settlements (96.6) —
 (96.6) —
 —
 —
Other (7.6) (1.6) (6.0) —
 —
 —
Fair value of plan assets at December 31, 2019 $1,732.8
 $842.1
 $890.7
 $239.9
 $120.5
 $119.4
Funded status at December 31, 2019 $(985.4) $(481.3) $(480.7) $(24.4) $(18.2) $(6.2)
116

  Pension Benefits Post-Retirement Benefits
  Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Amounts recognized in the consolidated balance sheets (millions)
Non-current asset $—
 $—
 $—
 $15.0
 $—
 $15.0
Current pension and other post-retirement liability (5.6) (3.0) (1.3) (1.9) (1.0) (0.9)
Noncurrent pension liability and other post-retirement liability (979.8) (478.3) (479.4) (37.5) (17.2) (20.3)
Net amount recognized before regulatory treatment (985.4) (481.3) (480.7) (24.4) (18.2) (6.2)
Accumulated OCI or regulatory asset/liability 454.1
 354.9
 192.3
 (4.4) (2.9) (13.0)
Net amount recognized at December 31, 2019 $(531.3) $(126.4) $(288.4) $(28.8) $(21.1) $(19.2)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:            
Actuarial (gain) loss $439.7
 $342.3
 $189.4
 $(5.7) $(4.2) $(4.9)
Prior service cost 14.4
 12.6
 2.9
 1.3
 1.3
 (8.1)
Net amount recognized at December 31, 2019 $454.1
 $354.9
 $192.3
 $(4.4) $(2.9) $(13.0)


105




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 Post-Retirement Benefits
  Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Change in projected benefit obligation (PBO) (millions)
PBO at January 1, 2018 $1,367.0
 $1,367.0
 $1,331.7
 $138.6
 $138.6
 $133.2
Service cost 60.7
 32.2
 48.6
 2.3
 1.3
 2.0
Interest cost 82.5
 50.7
 49.9
 8.0
 5.0
 4.8
Contribution by participants —
 —
 —
 5.6
 1.8
 6.6
Plan amendments 13.4
 11.4
 2.0
 —
 —
 —
Actuarial gain (98.8) (100.1) (89.6) (11.3) (2.6) (18.0)
Benefits paid (137.9) (97.9) (70.2) (17.3) (10.5) (12.9)
Obligations assumed upon merger with Great Plains
   Energy
 1,275.9
 —
 —
 123.4
 —
 —
Other (9.4) (4.4) —
 —
 —
 —
PBO at December 31, 2018 $2,553.4
 $1,258.9
 $1,272.4
 $249.3
 $133.6
 $115.7
Change in plan assets            
Fair value of plan assets at January 1, 2018 $887.0
 $887.0
 $848.4
 $124.1
 $124.1
 $115.8
Actual return on plan assets (79.7) (30.9) (60.1) (7.5) (7.4) (1.2)
Contributions by employer and participants 114.5
 47.9
 80.3
 11.6
 3.2
 11.4
Benefits paid (134.0) (95.0) (69.8) (16.7) (10.2) (12.4)
Assets acquired upon merger with Great Plains
   Energy
 825.0
 —
 —
 111.8
 —
 —
Other (9.4) (4.4) —
 —
 —
 —
Fair value of plan assets at December 31, 2018 $1,603.4
 $804.6
 $798.8
 $223.3
 $109.7
 $113.6
Funded status at December 31, 2018 $(950.0) $(454.3) $(473.6) $(26.0) $(23.9) $(2.1)

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)
  Pension Benefits Post-Retirement Benefits
  Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Amounts recognized in the consolidated balance sheets (millions)
Non-current asset $—
 $—
 $—
 $17.5
 $—
 $17.5
Current pension and other post-retirement liability (4.4) (2.6) (0.5) (1.7) (0.9) (0.8)
Noncurrent pension liability and other post-
   retirement liability
 (945.6) (451.7) (473.1) (41.8) (23.0) (18.8)
Net amount recognized before regulatory treatment (950.0) (454.3) (473.6) (26.0) (23.9) (2.1)
Accumulated OCI or regulatory asset/liability 419.9
 337.5
 230.1
 (6.0) 0.8
 (19.1)
Net amount recognized at December 31, 2018 $(530.1) $(116.8) $(243.5) $(32.0) $(23.1) $(21.2)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:            
Actuarial (gain) loss $403.6
 $323.2
 $226.3
 $(7.8) $(1.0) $(11.0)
Prior service cost 16.3
 14.3
 3.8
 1.8
 1.8
 (8.1)
Net amount recognized at December 31, 2018 $419.9
 $337.5
 $230.1
 $(6.0) $0.8
 $(19.1)



106

higher market interest rates. See the weighted average assumptions used to determine the benefit obligations within this Note 9 for further information.
As of December 31, 20192022 and 2018,2021, Evergy's pension benefits include non-qualified benefit obligations of $49.4$37.8 million and $46.9$49.2 million, respectively, which are funded by trusts containing assets of $45.5$34.1 million and $43.8$44.2 million, respectively. As of December 31, 20192022 and 2018,2021, Evergy Kansas Central's pension benefits include non-qualifiednon-
117
qualified benefit obligations of $26.0$19.6 million and $24.8$25.4 million, respectively, which are funded by trusts containing assets of $31.7$24.9 million and $30.6$31.7 million, respectively. The assets in the aforementioned trusts are not included in the table above. See Note 14 for more information on these amounts.
Pension BenefitsPost-Retirement Benefits
Year Ended December 31, 2022EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Components of net periodic benefit costs(millions)
Service cost$79.7 $30.7 $49.0 $3.0 $1.5 $1.5 
Interest cost79.3 38.8 39.8 7.9 4.1 3.8 
Expected return on plan assets(104.0)(51.2)(56.4)(10.2)(6.5)(3.7)
Prior service cost1.9 2.0 — 0.5 0.4 (1.4)
Recognized net actuarial (gain) loss34.8 25.6 38.6 (0.3)(0.2)(0.7)
Settlement and special termination benefits52.8 15.6 37.2 6.7 1.4 5.3 
Net periodic benefit costs before regulatory adjustment and intercompany allocations144.5 61.5 108.2 7.6 0.7 4.8 
Regulatory adjustment14.7 0.7 (12.1)(7.1)(3.6)(1.3)
Intercompany allocationsn/a2.9 (18.4)n/a0.3 (0.6)
Net periodic benefit costs (income)159.2 65.1 77.7 0.5 (2.6)2.9 
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities
Current year net gain(421.4)(186.1)(226.7)(13.0)(3.0)(10.0)
Amortization of gain (loss)(34.7)(25.6)(38.6)0.4 0.2 0.7 
Prior service cost0.6 0.4 0.4 — — — 
Amortization of prior service cost(1.9)(2.0)— (0.5)(0.4)1.4 
Total recognized in OCI or regulatory asset/liability(457.4)(213.3)(264.9)(13.1)(3.2)(7.9)
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability$(298.2)$(148.2)$(187.2)$(12.6)$(5.8)$(5.0)
  Pension Benefits Post-Retirement Benefits
Year Ended December 31, 2019 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Components of net periodic benefit costs (millions)
Service cost $79.1
 $29.0
 $50.1
 $2.5
 $1.1
 $1.4
Interest cost 108.0
 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 cost 1.9
 1.7
 0.9
 0.5
 0.5
 —
Recognized net actuarial (gain) loss 33.0
 25.5
 49.8
 (1.2) (0.6) (1.4)
Settlement and special termination benefits 15.6
 —
 23.0
 —
 —
 —
Net periodic benefit costs before regulatory adjustment and intercompany allocations 131.3
 55.1
 128.2
 2.3
 (0.1) 1.6
Regulatory adjustment 37.4
 3.0
 (19.2) (3.4) (3.0) 0.4
Intercompany allocations n/a
 —
 (34.4) n/a
 —
 (0.4)
Net periodic benefit costs 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) loss 84.7
 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/liability 34.2
 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

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)
  Pension Benefits Post-Retirement Benefits
Year Ended December 31, 2018 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Components of net periodic benefit costs (millions)
Service cost $60.7
 $32.2
 $48.6
 $2.3
 $1.3
 $2.0
Interest cost 82.5
 50.7
 49.9
 8.0
 5.0
 4.8
Expected return on plan assets (86.4) (55.9) (55.5) (8.8) (7.0) (2.8)
Prior service cost 0.7
 0.7
 0.7
 0.5
 0.5
 0.1
Recognized net actuarial (gain) loss 32.6
 32.6
 45.1
 (0.6) (0.6) (0.2)
Net periodic benefit costs before regulatory adjustment and intercompany allocations 90.1
 60.3
 88.8
 1.4
 (0.8) 3.9
Regulatory adjustment 8.3
 8.8
 0.7
 (1.7) (2.0) (0.1)
Intercompany allocations n/a
 —
 (21.6) n/a
 —
 (1.1)
Net periodic benefit costs 98.4
 69.1
 67.9
 (0.3) (2.8) 2.7
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities            
Current year net (gain) loss 67.2
 (13.2) 25.9
 4.9
 11.7
 (14.0)
Amortization of gain (loss) (32.6) (32.6) (45.1) 0.6
 0.6
 0.2
Prior service cost 13.4
 11.4
 2.0
 —
 —
 —
Amortization of prior service cost (0.7) (0.7) (0.7) (0.5) (0.5) (0.1)
Total recognized in OCI or regulatory asset/liability 47.3
 (35.1) (17.9) 5.0
 11.8
 (13.9)
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability $145.7
 $34.0
 $50.0
 $4.7
 $9.0
 $(11.2)
118


107




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 Benefits Post-Retirement Benefits
Year Ended December 31, 2017 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Components of net periodic benefit costs (millions)
Service cost $28.7
 $28.7
 $44.2
 $1.2
 $1.2
 $2.1
Interest cost 52.4
 52.4
 52.6
 5.5
 5.5
 5.4
Expected return on plan assets (53.6) (53.6) (51.2) (6.9) (6.9) (2.5)
Prior service cost 0.7
 0.7
 0.7
 0.5
 0.5
 —
Recognized net actuarial (gain) loss 26.9
 26.9
 49.0
 (0.8) (0.8) (0.5)
Settlement and special termination benefits 0.4
 0.4
 16.3
 —
 —
 —
Net periodic benefit costs before regulatory adjustment and intercompany allocations 55.5
 55.5
 111.6
 (0.5) (0.5) 4.5
Regulatory adjustment 14.5
 14.5
 (9.2) (1.9) (1.9) 1.3
Intercompany allocations n/a
 —
 (37.1) n/a
 —
 (1.5)
Net periodic benefit costs 70.0
 70.0
 65.3
 (2.4) (2.4) 4.3
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities            
Current year net (gain) loss 47.1
 47.1
 71.3
 (5.8) (5.8) 3.0
Amortization of gain (loss) (26.9) (26.9) (64.9) 0.8
 0.8
 0.5
Amortization of prior service cost (0.7) (0.7) (0.7) (0.5) (0.5) —
Total recognized in OCI or regulatory asset/liability 19.5
 19.5
 5.7
 (5.5) (5.5) 3.5
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability $89.5
 $89.5
 $71.0
 $(7.9) $(7.9) $7.8

For financial reporting purposes, the estimated prior service cost and net actuarial (gain) loss for the defined benefit plans are amortized from accumulated other comprehensive income (OCI) or a regulatory asset into net periodic benefit cost. The Evergy Companies amortize prior service cost on a straight-line basis over the average future service of the active employees (plan participants) benefiting under the plan. Evergy and Evergy Kansas Central amortize the net actuarial (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. The estimated amounts to be amortized in 2020 are detailed in the following table.
  Pension Benefits Post-Retirement Benefits
  Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
  (millions)
Actuarial (gain) loss amortization $45.4
 $33.9
 $45.1
 $0.2
 $—
 $(0.6)
Prior service cost amortization 1.8
 1.6
 0.8
 0.5
 0.5
 —
119


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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 tables.
December 31, 2019 Evergy Evergy Kansas Central Evergy Metro
  (millions)
ABO for all defined benefit pension plans $2,390.5
 $1,196.8
 $1,170.2
Pension plans with the PBO in excess of plan assets      
Projected benefit obligation $2,718.2
 $1,323.4
 $1,371.4
Fair value of plan assets 1,732.8
 842.1
 890.7
Pension plans with the ABO in excess of plan assets      
Accumulated benefit obligation $2,390.5
 $1,196.8
 $1,170.2
Fair value of plan assets 1,732.8
 842.1
 890.7
Other post-retirement benefit plans with the APBO in excess of plan assets      
Accumulated other post-retirement benefit obligation $264.3
 $138.7
 $125.6
Fair value of plan assets 239.9
 120.5
 119.4

December 31, 2022EvergyEvergy Kansas CentralEvergy Metro
(millions)
ABO for all defined benefit pension plans$1,687.3 $844.4 $824.6 
Pension plans with the PBO in excess of plan assets
Projected benefit obligation$1,850.5 $911.7 $920.6 
Fair value of plan assets1,409.2 668.5 740.7 
Pension plans with the ABO in excess of plan assets
Accumulated benefit obligation$1,687.3 $844.4 $824.6 
Fair value of plan assets1,409.2 668.5 740.7 
Other post-retirement benefit plans with the APBO in excess of plan assets
Accumulated other post-retirement benefit obligation$201.7 $103.0 $98.6 
Fair value of plan assets192.9 96.2 96.7 
December 31, 2018 Evergy Evergy Kansas Central Evergy Metro
  (millions)
ABO for all defined benefit pension plans $2,257.9
 $1,139.1
 $1,096.7
Pension plans with the PBO in excess of plan assets      
Projected benefit obligation $2,553.4
 $1,258.9
 $1,272.4
Fair value of plan assets 1,603.4
 804.6
 798.8
Pension plans with the ABO in excess of plan assets      
Accumulated benefit obligation $2,257.9
 $1,139.1
 $1,096.7
Fair value of plan assets 1,603.4
 804.6
 798.8
Other post-retirement benefit plans with the APBO in excess of plan assets      
Accumulated other post-retirement benefit obligation $249.3
 $133.6
 $57.7
Fair value of plan assets 223.3
 109.7
 38.2

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 
The expected long-term rate of return on plan assets represents the 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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120




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, 2022Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Discount rate5.72 %5.72 %5.72 %5.74 %5.75 %5.72 %
Rate of compensation increase3.72 %3.78 %3.70 %3.75 %n/a3.75 %
Interest crediting rate for cash balance plans4.13 %4.00 %4.43 %n/an/an/a
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, 2019 Pension Benefits Post-Retirement Benefits
 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 3.62% 3.61% 3.64% 3.56% 3.54% 3.58%
Rate of compensation increase 3.74% 3.78% 3.71% 3.75% n/a 3.75%
             
Weighted-average assumptions used to determine the benefit obligation at December 31, 2018 Pension Benefits Post-Retirement Benefits
 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 4.35% 4.35% 4.36% 4.33% 4.33% 4.33%
Rate of compensation increase 3.76% 4.03% 3.64% 3.50% n/a 3.50%
Weighted-average assumptions used to determine net costs for the year ended December 31, 2019 Pension Benefits Post-Retirement Benefits
 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 4.35% 4.35% 4.36% 4.33% 4.33% 4.33%
Expected long-term return on plan assets 6.61% 6.75% 6.47% 4.44% 6.00% 2.94%
Rate of compensation increase 3.76% 4.03% 3.64% 3.50% n/a 3.50%
             
Weighted-average assumptions used to determine net costs for the year ended December 31, 2018 Pension Benefits Post-Retirement Benefits
 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 3.73% 3.73% 3.72% 3.67% 3.73% 3.64%
Expected long-term return on plan assets 6.52% 6.67% 6.46% 6.00% 6.00% 2.80%
Rate of compensation increase 3.92% 4.00% 3.62% 3.50% n/a 3.50%

Weighted-average assumptions used to determine net costs for the year ended December 31, 2022Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Discount rate3.10 %3.10 %3.11 %3.12 %3.11 %3.13 %
Expected long-term return on plan assets6.71 %6.80 %6.63 %4.53 %5.75 %3.25 %
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 net costs for the year ended December 31, 2021Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Discount rate2.95 %2.93 %2.97 %2.84 %2.80 %2.88 %
Expected long-term return on plan assets6.63 %6.70 %6.57 %3.93 %5.55 %2.27 %
Rate of compensation increase3.71 %3.78 %3.71 %3.75 %n/a3.75 %
Interest crediting rate for cash balance plans4.12 %4.00 %4.46 %n/an/an/a
Evergy expects to contribute $128.1$30.4 million to the pension plans in 20202023 to meet Employee Retirement Income Security Act of 1974, as amended (ERISA) funding requirements and regulatory orders, of which $45.5$11.7 million is expected to be paid by Evergy Kansas Central and $82.6$18.7 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. Also in 2020,2023, Evergy expects to contribute $3.8$1.6 million to the post-retirement benefit plans, of which $0.8$0.5 million is expected to be paid by Evergy Kansas Central and $3.0$1.1 million is expected to be paid by Evergy Metro.

110121




The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid through 2029.2032.
 Pension Benefits Post-Retirement Benefits
 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
 (millions)
2020$180.6
 $95.1
 $84.3
 $16.7
 $9.6
 $7.1
2021182.4
 95.6
 85.5
 16.7
 9.5
 7.2
2022181.1
 93.3
 86.5
 16.4
 9.3
 7.1
2023181.8
 91.5
 89.0
 16.3
 9.2
 7.1
2024185.0
 91.9
 91.7
 15.9
 8.8
 7.1
2025-2029918.2
 428.3
 482.3
 75.2
 40.3
 34.9

Pension BenefitsPost-Retirement Benefits
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
(millions)
2023$339.3 $141.4 $196.6 $18.3 $10.0 $8.3 
2024120.8 65.0 54.4 16.9 9.0 7.8 
2025125.2 66.1 57.6 16.4 8.7 7.7 
2026130.0 67.2 61.2 16.0 8.4 7.6 
2027134.9 69.9 63.4 15.5 8.2 7.4 
2028-2032697.2 344.6 345.2 69.3 36.6 32.7 
As of December 31, 2022, Evergy Kansas Central and Evergy Metro each maintainmaintained 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 both their qualified pension and post-retirement benefits.benefits as of December 31, 2022. These plans are managed in accordance with prudent investor guidelines contained in the ERISA requirements.
The primary objective of the Evergy Kansas CentralCentral's and Evergy Metro's pension planplans is to provide a source of retirement income for its participants and beneficiaries, and the primary financial objectiveobjectives of the plan isplans are to improve its funded status. The primary objective ofminimize funding deficiencies and maintain the Evergy Kansas Central post-retirementplans' ability to pay all benefit plan is growth in assets and the preservation of principal, while minimizing interim volatility, to meet anticipated claims of plan participants.expense obligations when due.
The primary objective of the Evergy Metro pension plans is to meet or exceed the target rate of return for the plan within a reasonableKansas Central's and prudent level of risk. The primary objective of the Evergy MetroMetro's post-retirement benefit plans is to preserve capital, maintain sufficient liquidity and earn a consistent rate of return.
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 assets.
 Pension Benefits Post-Retirement Benefits
 Evergy Kansas Central Evergy Metro Evergy Kansas Central Evergy Metro
Domestic equities29% 31% 33% 3%
International equities20% 21% 22% —%
Bonds36% 35% 45% 85%
Mortgage & asset backed securities—% —% —% 4%
Real estate investments4% 6% —% —%
Other investments11% 7% —% 8%

Pension BenefitsPost-Retirement Benefits
Evergy Kansas CentralEvergy MetroEvergy Kansas CentralEvergy Metro
Domestic equities26%26%26%18%
International equities20%19%18%10%
Bonds39%38%56%66%
Mortgage & asset backed securities—%—%—%5%
Real estate investments4%6%—%—%
Other investments11%11%—%1%
Fair Value Measurements
Evergy classifies recurring and non-recurring fair value measurements based on the fair value hierarchy as discussed in Note 14. The following are descriptions 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

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share, derived from the quoted prices in active markets of the underlying securities are not classified within the fair value hierarchy.
122
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 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.
Corporate bonds - consists of individually held, primarily domestic, corporate bonds 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 and agency 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 Level 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 Level 1.


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The fair values of the Evergy Companies' pension plan assets at December 31, 20192022 and 2018,2021, by asset category are in the following tables.
  Fair Value Measurements Using
 
 
Description		December 31
2022		Level 1Level 2Level 3Assets measured at NAV
Evergy Kansas Central Pension Plans(millions)
Domestic equities$156.8 $129.2 $— $— $27.6 
International equities129.1 129.1 — — — 
Bond funds241.7 241.7 — — — 
Real estate investments26.8 — — — 26.8 
Combination debt/equity/other fund30.8 30.8 — — — 
Alternative investment funds63.9 — — — 63.9 
Short-term investments19.4 — — — 19.4 
Total$668.5 $530.8 $— $— $137.7 
Evergy Metro Pension Plans    
Domestic equities$156.1 $135.5 $— $— $20.6 
International equities136.7 136.7 — — — 
Bond funds195.2 195.2 — — — 
Corporate bonds23.7 — 23.7 — — 
U.S. Treasury and agency bonds14.0 5.8 8.2 — — 
Mortgage and asset backed securities5.0 — 5.0 — — 
Real estate investments59.0 — — — 59.0 
Combination debt/equity/other fund31.2 31.2 — — — 
Alternative investment funds63.1 — — — 63.1 
Cash and cash equivalents44.6 44.6 — — — 
Short-term investments14.6 — — — 14.6 
Other(2.5)— (2.5)— — 
Total$740.7 $549.0 $34.4 $— $157.3 
    Fair Value Measurements Using
 
 
Description
December 31
2019		Level 1 Level 2 Level 3 Assets measured at NAV
  (millions)
Evergy Kansas Central Pension Plans                 
Domestic equities $233.8
  $150.6
   $—
   $—
   $83.2
International equities 162.4
  101.5
   —
   —
   60.9
Bond funds 281.7
  233.0
   —
   —
   48.7
Real estate investments 46.5
  —
   —
   —
   46.5
Combination debt/equity/other fund 30.1
  30.1
   —
   —
   —
Alternative investment funds 78.5
  —
   —
   —
   78.5
Short-term investments 9.1
  —
   —
   —
   9.1
Total $842.1
  $515.2
   $—
   $—
  
$326.9
                  
Evergy Metro Pension Plans                 
Domestic equities $244.8
  $195.3
   $—
   $—
   $49.5
International equities 178.7
  117.7
   —
   —
   61.0
Bond funds 71.0
  15.6
   —
   —
   55.4
Corporate bonds 123.9
  —
   123.9
   —
   —
U.S. Treasury and agency bonds 70.9
  53.5
   17.4
   —
   —
Mortgage and asset backed securities 5.7
  —
   5.7
   —
   —
Real estate investments 50.8
  12.8
   —
   —
   38.0
Combination debt/equity/other fund 11.9
  11.9
   —
   —
   —
Alternative investment funds 36.6
  —
   —
   —
   36.6
Cash and cash equivalents 92.9
  92.9
   —
   —
   —
Short-term investments 1.0
  —
   —
   —
   1.0
Other 2.5
  —
   2.5
   —
   —
Total $890.7
  $499.7
   $149.5
   $—
  
$241.5
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  Fair Value Measurements Using
 
 
Description		December 31
2021		Level 1Level 2Level 3Assets measured at NAV
Evergy Kansas Central Pension Plans(millions)
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 


113
125




    Fair Value Measurements Using
 
 
Description
December 31
2018		Level 1 Level 2 Level 3 Assets measured at NAV
  (millions) 
Evergy Kansas Central Pension Plans                  
Domestic equities $215.0
  $144.7
   $—
   $—
   $70.3
 
International equities 138.7
  91.8
   —
   —
   46.9
 
Bond funds 296.4
  255.4
   —
   —
   41.0
 
Real estate investments 44.8
  —
   —
   —
   44.8
 
Combination debt/equity/other fund 30.1
  30.1
   —
   —
   —
 
Alternative investment funds 73.6
  —
   —
   —
   73.6
 
Short-term investments 6.0
  —
   —
   —
   6.0
 
Total $804.6
  $522.0
   $—
   $—
   $282.6
 
                   
Evergy Metro Pension Plans                  
Domestic equities $238.1
  $198.6
   $—
   $—
   $39.5
 
International equities 150.9
  104.0
   —
   —
   46.9
 
Bond funds 67.4
  19.3
   —
   —
   48.1
 
Corporate bonds 123.6
  —
   123.6
   —
   —
 
U.S. Treasury and agency bonds 69.9
  52.4
   17.5
   —
   —
 
Mortgage and asset backed securities 5.5
  —
   5.5
   —
   —
 
Real estate investments 48.2
  12.6
   —
   —
   35.6
 
Combination debt/equity/other fund 13.5
  13.5
   —
   —
   —
 
Alternative investment funds 31.6
  —
   —
   —
   31.6
 
Cash and cash equivalents 49.8
  49.8
   —
   —
   —
 
Other 0.3
  —
   0.3
   —
   —
 
Total $798.8
  $450.2
   $146.9
   $—
   $201.7
 




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The fair values of the Evergy Companies' post-retirement plan assets at December 31, 20192022 and 2018,2021, by asset category are in the following tables.
    Fair Value Measurements Using
 
 
Description
December 31
2019		Level 1 Level 2 Level 3 Assets measured at NAV
  (millions) 
Evergy Kansas Central Post-Retirement Benefit Plans 
                
Domestic equities $40.5
  $—
   $—
   $—
   $40.5
 
International equities 26.0
  —
   —
   —
   26.0
 
Bond funds 52.9
  —
   —
   —
   52.9
 
Cash and cash equivalents 1.1
  1.1
   —
   —
   —
 
Total $120.5
  $1.1
   $—
   $—
   $119.4
 
                   
Evergy Metro Post-Retirement Benefit Plans    

   

   

     
Domestic equities $3.2
  $3.2
   $—
   $—
   $—
 
International equities 1.1
  1.1
   —
   —
   —
 
Bond funds 77.5
  0.1
   —
   —
   77.4
 
Corporate bonds 17.8
  —
   17.8
   —
   —
 
U.S. Treasury and agency bonds 11.5
  4.1
   7.4
   —
   —
 
Mortgage and asset backed securities 1.3
  —
   1.3
   —
   —
 
Cash and cash equivalents 6.7
  6.7
   —
   —
   —
 
Other 0.3
  —
   0.3
   —
   —
 
Total $119.4
  $15.2
   $26.8
   $—
   $77.4
 

  Fair Value Measurements Using
 
 
Description		December 31
2022		Level 1Level 2Level 3Assets measured at NAV
Evergy Kansas Central Post-Retirement Benefit Plans(millions)
Domestic equities$24.2 $24.2 $— $— $— 
International equities17.5 17.5 — — — 
Bond funds48.7 48.7 — — — 
Combination debt/equity/other fund4.8 4.8 — — — 
Short-term investments1.0 — — — 1.0 
Total$96.2 $95.2 $— $— $1.0 
Evergy Metro Post-Retirement Benefit Plans 
Domestic equities$18.7 $18.7 $— $— $— 
International equities11.6 11.6 — — — 
Bond funds34.9 34.9 — — — 
Corporate bonds14.6 — 14.6 — — 
U.S. Treasury and agency bonds12.3 6.0 6.3 — — 
Mortgage and asset backed securities1.3 — 1.3 — — 
Combination debt/equity/other fund2.9 2.9 — — — 
Cash and cash equivalents0.2 0.2 — — — 
Other0.2 — 0.2 — — 
Total$96.7 $74.3 $22.4 $— $— 
    Fair Value Measurements Using
 
 
Description
December 31
2018		Level 1 Level 2 Level 3 Assets measured at NAV
  (millions) 
Evergy Kansas Central Post-Retirement Benefit Plans                  
Domestic equities $56.4
  $—
   $—
   $—
   $56.4
 
International equities 14.0
  —
   —
   —
   14.0
 
Bond funds 38.4
  —
   —
   —
   38.4
 
Short-term investments 0.7
  —
   —
   —
   0.7
 
Cash and cash equivalents 0.2
  0.2
   —
   —
   —
 
Total $109.7
  $0.2
   $—
   $—
   $109.5
 
                   
Evergy Metro Post-Retirement Benefit Plans                  
Domestic equities $2.5
  $2.5
   $—
   $—
   $—
 
International equities 0.9
  0.9
   —
   —
   —
 
Bond funds 75.0
  0.2
   —
   —
   74.8
 
Corporate bonds 17.4
  —
   17.4
   —
   —
 
U.S. Treasury and agency bonds 10.3
  2.6
   7.7
   —
   —
 
Mortgage and asset backed securities 2.5
  —
   2.5
   —
   —
 
Cash and cash equivalents 4.7
  4.7
   —
   —
   —
 
Other 0.3
  —
   0.3
   —
   —
 
Total $113.6
  $10.9
   $27.9
   $—
   $74.8
 
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115




  Fair Value Measurements Using
 
 
Description		December 31
2021		Level 1Level 2Level 3Assets measured at NAV
Evergy Kansas Central Post-Retirement Benefit Plans(millions)
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 
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The cost trend assumptions are detailed in the following tables.
Assumed annual health care cost growth rates as of December 31, 2022EvergyEvergy Kansas CentralEvergy Metro
Health care cost trend rate assumed for next year7.3 %7.3 %7.3 %
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, 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
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Table of Contents
Assumed annual health care cost growth rates as of December 31, 2019 Evergy Evergy Kansas Central Evergy Metro
Health care cost trend rate assumed for next year 6.3% 6.3% 6.3%
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 trend 2027
 2027
 2027
       
Assumed annual health care cost growth rates as of December 31, 2018 Evergy Evergy Kansas Central Evergy Metro
Health care cost trend rate assumed for next year 6.5% 6.5% 6.5%
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 trend 2027
 2027
 2027

The effects of a one-percentage point change in the assumed health care cost trend rates, holding all other assumptions constant, at December 31, 2019, are detailed in the following table.
  Evergy 
Evergy Kansas Central(a)
 Evergy Metro
Effect of 1% increase (millions)
Effect on total service and interest component $—
 $—
 $—
Effect on post-retirement benefit obligation 0.5
 (0.1) 0.6
Effect of 1% decrease      
Effect on total service and interest component $—
 $—
 $—
Effect on post-retirement benefit obligation (0.4) 0.1
 (0.5)

(a) Evergy Kansas Central includes only the effect of health care cost trend rates for Wolf Creek because the Evergy Kansas Central post-retirement benefit plan includes a fixed monthly stipend for health care and therefore is not affected by changes in health care costs.
Employee Savings Plans
Evergy has defined contribution savings plans (401(k)) that cover substantially all employees. Evergy matches employee contributions, subject to limits. The annual costs of the plans are detailed in the following table. Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
  2019 2018 2017
  (millions)
Evergy $17.6
 $16.3
 $9.7
Evergy Kansas Central 9.6
 9.9
 9.7
Evergy Metro 8.0
 8.3
 7.7

202220212020
(millions)
Evergy$25.3 $25.6 $17.4 
Evergy Kansas Central12.0 11.7 9.6 
Evergy Metro13.3 13.9 7.8 
11.10. EQUITY COMPENSATION
Upon the consummation of the merger, Evergy assumed both Evergy Kansas Central's Long-Term Incentive and Share Award plan (LTISA) and Great Plains Energy's AmendedEvergy's Long-Term Incentive Plan which was renamed theis an equity compensation plan approved by Evergy Inc.shareholders. The Long-Term Incentive Plan. All outstanding share-based payment awards under Evergy Kansas Central's LTISA vested atPlan permits the closinggrant of the merger transaction and were converted into a right to receive Evergy commonrestricted stock, with the exception of certain RSUs andrestricted stock units, bonus shares, stock options, stock appreciation rights, limited stock appreciation rights, director shares, director deferred director share units issued priorand performance shares to the closing of the merger to certain directors, officers and other employees of Evergy. Common stock shares delivered by Evergy Kansas Central. The vesting of these shares resulted

116

under the Long-Term Incentive Plan may be authorized but unissued, held in the recognitiontreasury or purchased on the open market (including private purchases) in accordance with applicable securities laws. Evergy has a policy of $14.6 million ofdelivering newly issued shares and does not expect to repurchase common shares during 2023 to satisfy equity compensation expense in Evergy's and Evergy Kansas Central's consolidated statements of income and comprehensive income for 2018.
All of Great Plains Energy's outstanding performance shares, restricted stock, RSUspayments and director deferred share units under Great Plains Energy's Amended Long-Term Incentive Plan were converted into equivalentunit conversion. Evergy performance shares, restricted stock, RSUs and director deferred share units at Great Plains Energy's merger exchange ratio of 0.5981. The estimated fair value of these converted awards that was allocated to the purchase price was $12.5 million, after-tax. See Note 2 for more information regarding the merger.recognizes forfeitures as they occur.
The following table summarizes the Evergy Companies' equity compensation expense and the associated income tax benefit.
  2019 2018 2017
Evergy (millions)
Equity compensation expense $15.5
 $30.7
 $8.9
Income tax benefit 3.0
 1.4
 3.5
Evergy Kansas Central      
Equity compensation expense 6.7
 24.8
 8.9
Income tax benefit 1.9
 1.4
 3.5
Evergy Metro(a)
      
Equity compensation expense 5.7
 6.5
 4.2
Income tax benefit 0.3
 0.1
 1.6

(a) Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
202220212020
Evergy(millions)
Equity compensation expense$18.8 $15.6 $15.5 
Income tax (expense) benefit2.6 (0.1)2.2 
Evergy Kansas Central
Equity compensation expense8.4 6.9 7.6 
Income tax (expense) benefit1.7 (0.2)1.6 
Evergy Metro
Equity compensation expense6.0 5.1 5.7 
Income tax (expense) benefit0.2 (0.6)0.2 
Restricted Share Units
Evergy has utilizedutilizes RSUs for new grants of stock-based compensation awards subsequent to the merger.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 expirationthe achievement of the award termspecific performance goals or RSUs with only service requirements that vest solely upon the passage of time.
RSUs with Performance Measures
The payment of RSUs with performance measures 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 numbers of RSUs with performances measures ultimately paid can vary from the numbers of RSUs with performance measures initially granted depending on Evergy's performance over the stated performance periods. Compensation expense for RSUs with performance measures 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 measures ultimately paid.
The fair value of RSUs with performance measures is estimated using the market value of Evergy's stock at the valuation date and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected
128
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 the actual closing stock price on the valuation date. For shares granted in 2019,2022, inputs for expected volatility, dividend yield and the risk-free ratesrate were 18%32%, 3.45%3.76% and 2.6%1.45%, respectively.

117

RSU activity for awards with performance measures for 20192022 is summarized in the following table.
Nonvested
Restricted Share Units		Grant Date
Fair Value*
Nonvested
Restricted Share Units
 
Grant Date
Fair Value*
Beginning balance January 1, 2019 —
 $—
 
Beginning balance January 1, 2022Beginning balance January 1, 2022513,715 $58.79 
Granted 202,107
 37.87
 Granted238,542 57.95 
VestedVested(146,115)37.87 
Forfeited (4,857)  37.87
 Forfeited(59,244)61.28 
Ending balance December 31, 2019 197,250
 37.87
 
Ending balance December 31, 2022Ending balance December 31, 2022546,898 63.57 
* weighted-average
At December 31, 2019,2022, the remaining weighted-average contractual term related to RSU awards with performance measures was 2.21.4 years.  The weighted-average grant-date fair value of RSUs granted with performance measures was $37.87$57.95, $57.21 and $87.98 in 2019.2022, 2021 and 2020, respectively. At December 31, 2019,2022, there was $5.4$14.7 million of unrecognized compensation expense related to unvested RSUs with performance measures. NaNThe total fair value of RSUs with performance measures that vested was $5.5 million in 2022 and no RSUs with performance measures vested in 2019.2021 and 2020.
RSUs with Only Service Requirements
Evergy measures the fair value of RSUs with only service requirements based on the fair market value of the underlying common stock as of the grant date. RSU awards with only service conditions recognize compensation expense by multiplying shares by the grant-date fair value related to the RSU and recognizing it on a straight-line basis over the requisite service period for the entire award, including for those RSUs that have a gradedaward. Dividends are accrued over the vesting schedule. Nonforfeitable dividend equivalents, or the rights to receive cash equalperiod and are invested in additional RSU's subject to the value of dividends paid on Evergy's common stock, are paid on certain of these RSUs during the vesting period. Nonforfeitable dividend equivalents are recorded directly to retained earnings.same service conditions.
RSU activity for awards with only service requirements for 20192022 is summarized in the following table.
Nonvested
Restricted Share Units		Grant Date
Fair Value*
Nonvested
Restricted Share Units
 
Grant Date
Fair Value*
Beginning balance January 1, 2019 217,256
 $54.07
 
Beginning balance January 1, 2022Beginning balance January 1, 2022253,046 $57.18 
Granted 70,395
 54.47
 Granted91,764 60.93 
Vested (48,767) 54.20
 Vested(84,503)55.81 
Forfeited (5,534)  54.23
 Forfeited(20,812)56.41 
Ending balance December 31, 2019 233,350
 54.16
 
Ending balance December 31, 2022Ending balance December 31, 2022239,495 58.98 
* weighted-average
At December 31, 2019,2022, the remaining weighted-average contractual term related to RSU awards with only service requirements was 1.11.4 years.  The weighted-average grant-date fair value of RSUs granted with only service requirements was $54.47, $52.16$60.93, $55.30 and $53.25$68.92 in 2019, 20182022, 2021 and 2017,2020, respectively. At December 31, 2019,2022, there was $5.2$6.3 million of unrecognized compensation expense related to unvested RSUs. The total fair value of RSUs with only service requirements that vested was $2.6$4.7 million, $16.0$2.4 million and $6.1$6.5 million in 2019, 20182022, 2021 and 2017,2020, respectively.
Performance Shares
Evergy'sIn addition to RSU's, Evergy also had 36,012 shares and 108,010 shares of restricted stock and performance shares, represent legacyrespectively, that vested in 2021 related to Great Plains Energy performance sharesequity compensation awards that converted intoto equivalent Evergy performance sharesawards at the closing of the merger transaction. The vesting of performance shares 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 Evergy Board. The number of performance shares ultimately vested can vary from the number of shares initially granted depending on Evergy's performance over stated performance periods. Compensation expense for performance shares is calculated by recognizing the portion of the grant date 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 performance shares ultimately paid.

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The fair value of performance share awards was estimated using the market value of Evergy Kansas Central's and Great Plains Energy's common stock at the valuation date upon conversion at the mergerEnergy and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected volatilities, dividend yield and risk-free rates. Expected volatility was based on daily stock price change based on historical common stock information during a historical period commensurate with the remaining term of the performance period of the grant. The risk-free rate was 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 was based on the most recent dividends paid by Evergy Kansas Central as Evergy's stock price assumed Evergy Kansas Central's stock price on a forward basis, and the grant date stock price on the valuation date.
Performance share activity for 2019 is summarized in the following table. Performance adjustment represents the difference between the number of shares of common stock related to performance shares ultimately issued from the number of performance shares initially granted which can vary depending on Evergy's performance over a stated period of time.
 
Performance
Shares
 
Grant Date
Fair Value*
Beginning balance January 1, 2019 348,496
   $63.80
 
Vested (69,317)   46.11
 
Forfeited (6,481)   69.65
 
Performance adjustment (44,442)   42.97
 
Ending balance December 31, 2019 228,256
   73.06
 
* weighted-average
At December 31, 2019, the remaining weighted-average contractual term was 0.5 years.  There were no shares granted in 2019. The weighted-average grant-date fair value of shares granted was $63.79 in 2018. At December 31, 2019, there was $2.2 million of total unrecognized compensation expense, net of forfeiture rates, related to performance shares granted under the Evergy, Inc. Long-Term Incentive Plan, which will be recognized over the remaining weighted-average contractual term. The total fair value of performance shares vested was $3.2 million in 2019. There were 0 vested performance sharesmerger in 2018.
Restricted Stock
Evergy's restricted stock represents legacy Great Plains Energy restricted stock that converted into equivalent Evergy restricted stock at the closing of the merger transaction. Restricted stock cannot be sold or otherwise transferred by the recipient prior to vesting and has a value equal to the fair market value of the shares on the issue date. Restricted stock shares vest over a stated period of time with accruing reinvested dividends subject to the same restrictions. Compensation expense, calculated by multiplying shares by the grant-date fair value related to restricted stock, is recognized on a straight-line basis over the requisite service period of the award.
Restricted stock activity for 2019 is summarized in the following table.
129
 
Nonvested
Restricted Stock
 
Grant Date
Fair Value*
Beginning balance January 1, 2019 116,675
   $54.03
 
Vested (38,404)   54.35
 
Forfeited (2,161)   53.88
 
Ending balance December 31, 2019 76,110
   53.87
 
* weighted-average
At December 31, 2019, the remaining weighted-average contractual term was 0.7 years.  There were 0 shares granted in 2019. The weighted-average grant-date fair value of shares granted was $54.05 in 2018. At December 31, 2019, there was $0.8 million of total unrecognized compensation expense, net of forfeiture rates, related to nonvested restricted stock granted under the Evergy, Inc. Long-Term Incentive Plan, which will be

119




recognized over the remaining weighted-average contractual term. The total fair value of shares vested was $2.1 million and $0.3 million for 2019 and 2018, respectively.
12.11. SHORT-TERM BORROWINGS AND SHORT-TERM BANK LINES OF CREDIT
Evergy's $2.5 billion master credit facility expires in 2023.2026. Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West have borrowing capacity under the master credit facility with specific 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. The applicable interest rates and commitment fees of the facility are subject to upward or downward adjustments, within 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 any borrower under the facility or one of theirits significant subsidiaries on other indebtedness totaling more than $100.0 million constitutes 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, 2019,2022, 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 4)3) available to the Evergy Companies as of December 31, 20192022 and 2018.2021.
Amounts Drawn
 Amounts Drawn  Master Credit FacilityCommercial PaperLetters of CreditCash BorrowingsAvailable BorrowingsWeighted Average Interest Rate on Short-Term Borrowings
Credit FacilityCommercial PaperLetters of CreditCash BorrowingsAvailable Borrowings Weighted Average Interest Rate on Short-Term Borrowings
December 31, 2019(millions) 
December 31, 2022December 31, 2022(millions)
Evergy, Inc.$450.0
n/a$0.7
$20.0
$429.3
 2.99%Evergy, Inc.$450.0 $— $0.7 $— $449.3 —%
Evergy Kansas Central1,000.0
249.2
14.2
—
736.6
 2.07%Evergy Kansas Central1,000.0 772.1 — — 227.9 4.91%
Evergy Metro600.0
199.3
—
—
400.7
 2.02%Evergy Metro350.0 111.0 — — 239.0 5.02%
Evergy Missouri West450.0
93.4
2.1
—
354.5
 2.02%Evergy Missouri West700.0 449.2 — — 250.8 4.84%
Evergy$2,500.0
$541.9
$17.0
$20.0
$1,921.1
 Evergy$2,500.0 $1,332.3 $0.7 $— $1,167.0 
  
December 31, 2018  
December 31, 2021December 31, 2021
Evergy, Inc.$450.0
n/a$1.0
$—
$449.0
 —%Evergy, Inc.$700.0 $358.0 $0.7 $— $341.3 0.34%
Evergy Kansas Central1,000.0
411.7
18.3
—
570.0
 3.08%Evergy Kansas Central750.0 406.0 0.1 — 343.9 0.41%
Evergy Metro600.0
176.9
2.7
—
420.4
 2.95%Evergy Metro350.0 — — — 350.0 —%
Evergy Missouri West450.0
150.0
2.1
—
297.9
 3.00%Evergy Missouri West700.0 395.3 — — 304.7 0.40%
Evergy$2,500.0
$738.6
$24.1
$—
$1,737.3
 
Evergy$2,500.0 $1,159.3 $0.8 $— $1,339.9 
In March 2019,February 2022, Evergy, Inc. entered into a $1.0 billion, 6-month term loan credit agreement with$500.0 million unsecured Term Loan Credit Agreement (Term Loan Facility) that originally expired in February 2023. In February 2023, Evergy, Inc. amended the $500.0 million Term Loan Facility to expire in February 2024. As a group of banks to provide short-term financing for its common stock repurchase program. The agreement allowed for 2 term loans during the 6-month termresult of the agreement, in an aggregate principal amount notamendment, Evergy, Inc. demonstrated its intent and ability to exceedrefinance the credit limitTerm Loan Facility and reflected this $500 million borrowing within long-term debt, net, on Evergy's consolidated balance sheets as of the agreement. At closing, Evergy borrowed $500.0 million under the agreement, allowingDecember 31, 2022. The weighted average interest rate for 1 additional term loan borrowing in a principal amount up to $500.0 million, which was subsequently utilized in June 2019. In September 2019, Evergy repaid its $1.0 billion of borrowings under the term loan credit agreementTerm Loan Facility as of December 31, 2022, was 5.12%. Evergy's borrowings under the Term Loan Facility were used for, among other things, working capital, capital expenditures and general corporate purposes. The Term Loan Facility contains customary covenants, including one that sets the ratio of maximum allowed total indebtedness to total capitalization of not greater than 0.65 to 1.00, for Evergy and its subsidiaries on a consolidated basis. As of December 31, 2022, Evergy was in compliance with proceeds from its issuance of $1.6 billion of senior notes in September 2019.

this covenant.
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13.12. LONG-TERM DEBT
The Evergy Companies' long-term debt is detailed in the following tables.
December 31, 2019Issuing Entity Year Due Evergy Evergy Kansas Central Evergy Metro
Mortgage Bonds    (millions)
5.10% SeriesEvergy Kansas Central, Inc. 2020 $250.0
 $250.0
 $—
3.25% SeriesEvergy Kansas Central, Inc. 2025 250.0
 250.0
 —
2.55% SeriesEvergy Kansas Central, Inc. 2026 350.0
 350.0
 —
3.10% SeriesEvergy Kansas Central, Inc. 2027 300.0
 300.0
 —
4.125% SeriesEvergy Kansas Central, Inc. 2042 550.0
 550.0
 —
4.10% SeriesEvergy Kansas Central, Inc. 2043 430.0
 430.0
 —
4.625% SeriesEvergy Kansas Central, Inc. 2043 250.0
 250.0
 —
4.25% SeriesEvergy Kansas Central, Inc. 2045 300.0
 300.0
 —
3.25% SeriesEvergy Kansas Central, Inc. 2049 300.0
 300.0
 


6.15% SeriesEvergy Kansas South, Inc. 2023 50.0
 50.0
 —
6.53% SeriesEvergy Kansas South, Inc. 2037 175.0
 175.0
 —
6.64% SeriesEvergy Kansas South, Inc. 2038 100.0
 100.0
 —
4.30% SeriesEvergy Kansas South, Inc. 2044 250.0
 250.0
 —
2.95% EIRR bondsEvergy Metro, Inc. 2023 79.5
 —
 79.5
4.125% SeriesEvergy Metro, Inc. 2049 400.0
 —
 400.0
9.44% SeriesEvergy Missouri West, Inc. 2020-2021 2.3
 —
 —
Pollution Control Bonds         
1.39% Series(b)
Evergy Kansas Central, Inc. 2032 45.0
 45.0
 —
1.39% Series(b)
Evergy Kansas Central, Inc. 2032 30.5
 30.5
 —
1.39% Series(b)
Evergy Kansas South, Inc. 2027 21.9
 21.9
 —
2.50% SeriesEvergy Kansas South, Inc. 2031 50.0
 50.0
 —
1.39% Series(b)
Evergy Kansas South, Inc. 2032 14.5
 14.5
 —
1.39% Series(b)
Evergy Kansas South, Inc. 2032 10.0
 10.0
 —
1.432% Series 2007A and 2007B(b)
Evergy Metro, Inc. 2035 146.5
 —
 146.5
2.75% Series 2008Evergy Metro, Inc. 2038 23.4
 —
 23.4
Senior Notes         
3.15% Series(g)
Evergy Metro, Inc. 2023 300.0
 —
 300.0
3.65% Series(g)
Evergy Metro, Inc. 2025 350.0
 —
 350.0
6.05% Series (5.78% rate)(a)(g)
Evergy Metro, Inc. 2035 250.0
 —
 250.0
5.30% Series(g)
Evergy Metro, Inc. 2041 400.0
 —
 400.0
4.20% Series(g)
Evergy Metro, Inc. 2047 300.0
 —
 300.0
4.20% Series(g)
Evergy Metro, Inc. 2048 300.0
 —
 300.0
8.27% SeriesEvergy Missouri West, Inc. 2021 80.9
 —
 —
3.49% Series AEvergy Missouri West, Inc. 2025 36.0
 —
 —
4.06% Series BEvergy Missouri West, Inc. 2033 60.0
 —
 —
4.74% Series CEvergy Missouri West, Inc. 2043 150.0
 —
 —
3.74% SeriesEvergy Missouri West, Inc. 2022 100.0
 —
 —
4.85% Series
Evergy, Inc.(f)
 2021 350.0
 —
 —
5.292% Series
Evergy, Inc.(f)
 2022 287.5
 —
 —
2.45% SeriesEvergy, Inc. 2024 800.0
 —
 —
2.90% Series (3.77% rate)(a)
Evergy, Inc. 2029 800.0
 —
 —
Medium Term Notes     
    
7.33% SeriesEvergy Missouri West, Inc. 2023 3.0
 —
 —
7.17% SeriesEvergy Missouri West, Inc. 2023 7.0
 —
 —
Fair value adjustment(e)
    125.5
 —
 —
Current maturities    (251.1) (250.0) —
Unamortized debt discount and debt issuance costs   (80.7) (40.8) (24.4)
Total excluding current maturities(d)
    $8,746.7
 $3,436.1
 $2,525.0


December 31, 2022Issuing 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 — 
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 
2.25% SeriesEvergy Metro, Inc.2030400.0 — 400.0 
4.125% SeriesEvergy Metro, Inc.2049400.0 — 400.0 
5.15% SeriesEvergy Missouri West, Inc.2027300.0 — — 
3.75% SeriesEvergy Missouri West, Inc.2032250.0 — — 
Pollution Control Bonds
3.54% Series(a)
Evergy Kansas Central, Inc.203245.0 45.0 — 
3.54% Series(a)
Evergy Kansas Central, Inc.203230.5 30.5 — 
3.54% Series(a)
Evergy Kansas South, Inc.202721.9 21.9 — 
2.50% SeriesEvergy Kansas South, Inc.203150.0 50.0 — 
3.54% Series(a)
Evergy Kansas South, Inc.203214.5 14.5 — 
3.54% Series(a)
Evergy Kansas South, Inc.203210.0 10.0 — 
3.287% Series 2007A and 2007B(a)
Evergy Metro, Inc.2035146.5 — 146.5 
2.75% Series 2008Evergy Metro, Inc.203823.4 — 23.4 
Senior Notes 
3.15% Series(b)
Evergy Metro, Inc.2023300.0 — 300.0 
3.65% Series(b)
Evergy Metro, Inc.2025350.0 — 350.0 
6.05% Series (5.78% rate)(b)(c)
Evergy Metro, Inc.2035250.0 — 250.0 
5.30% Series(b)
Evergy Metro, Inc.2041400.0 — 400.0 
4.20% Series(b)
Evergy Metro, Inc.2047300.0 — 300.0 
4.20% Series(b)
Evergy Metro, Inc.2048300.0 — 300.0 
3.49% Series A(d)
Evergy Missouri West, Inc.202536.0 — — 
4.06% Series B(d)
Evergy Missouri West, Inc.203360.0 — — 
4.74% Series C(d)
Evergy Missouri West, Inc.2043150.0 — — 
2.86% Series A(d)
Evergy Missouri West, Inc.2031350.0 — — 
3.01% Series B(d)
Evergy Missouri West, Inc.203375.0 — — 
3.21% Series C(d)
Evergy Missouri West, Inc.203675.0 — — 
2.45% SeriesEvergy, Inc.2024800.0 — — 
2.90% Series (3.77% rate)(c)
Evergy, Inc.2029800.0 — — 
Medium Term Notes  
7.33% Series(d)
Evergy Missouri West, Inc.20233.0 — — 
7.17% Series(d)
Evergy Missouri West, Inc.20237.0 — — 
Term Loan Facility(e)
Evergy, Inc.2024500.0 — — 
Fair value adjustment(f)
92.1 — — 
Current maturities(g)
(439.1)(50.0)(379.5)
Unamortized debt discount and debt issuance costs(79.6)(40.0)(22.8)
Total excluding current maturities(h)
$9,905.7 $3,886.9 $2,547.1 
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131




December 31, 2021Issuing 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 — 
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 
2.25% SeriesEvergy Metro, Inc.2030400.0 — 400.0 
4.125% SeriesEvergy Metro, Inc.2049400.0 — 400.0 
Pollution Control Bonds
0.132% Series(a)
Evergy Kansas Central, Inc.203245.0 45.0 — 
0.132% Series(a)
Evergy Kansas Central, Inc.203230.5 30.5 — 
0.132% Series(a)
Evergy Kansas South, Inc.202721.9 21.9 — 
2.50% SeriesEvergy Kansas South, Inc.203150.0 50.0 — 
0.132% Series(a)
Evergy Kansas South, Inc.203214.5 14.5 — 
0.132% Series(a)
Evergy Kansas South, Inc.203210.0 10.0 — 
0.167% Series 2007A and 2007B(a)
Evergy Metro, Inc.2035146.5 — 146.5 
2.75% Series 2008Evergy Metro, Inc.203823.4 — 23.4 
Senior Notes 
3.15% Series(b)
Evergy Metro, Inc.2023300.0 — 300.0 
3.65% Series(b)
Evergy Metro, Inc.2025350.0 — 350.0 
6.05% Series (5.78% rate)(b)(c)
Evergy Metro, Inc.2035250.0 — 250.0 
5.30% Series(b)
Evergy Metro, Inc.2041400.0 — 400.0 
4.20% Series(b)
Evergy Metro, Inc.2047300.0 — 300.0 
4.20% Series(b)
Evergy Metro, Inc.2048300.0 — 300.0 
3.49% Series A(d)
Evergy Missouri West, Inc.202536.0 — — 
4.06% Series B(d)
Evergy Missouri West, Inc.203360.0 — — 
4.74% Series C(d)
Evergy Missouri West, Inc.2043150.0 — — 
3.74% Series(d)
Evergy Missouri West, Inc.2022100.0 — — 
2.86% Series A(d)
Evergy Missouri West, Inc.2031350.0 — — 
3.01% Series B(d)
Evergy Missouri West, Inc.203375.0 — — 
3.21% Series C(d)
Evergy Missouri West, Inc.203675.0 — — 
5.292% SeriesEvergy, Inc.2022287.5 — — 
2.45% SeriesEvergy, Inc.2024800.0 — — 
2.90% Series (3.77% rate)(c)
Evergy, Inc.2029800.0 — — 
Medium Term Notes
7.33% Series(d)
Evergy Missouri West, Inc.20233.0 — — 
7.17% Series(d)
Evergy Missouri West, Inc.20237.0 — — 
Fair value adjustment(f)
97.9 — — 
Current maturities(g)
(389.3)— — 
Unamortized debt discount and debt issuance costs(80.5)(42.7)(24.4)
Total excluding current maturities(h)
$9,297.9 $3,934.2 $2,925.0 
December 31, 2018Issuing Entity Year Due Evergy Evergy Kansas Central Evergy Metro
Mortgage Bonds    (millions)
5.10% SeriesEvergy Kansas Central, Inc. 2020 $250.0
 $250.0
 $—
3.25% SeriesEvergy Kansas Central, Inc. 2025 250.0
 250.0
 —
2.55% SeriesEvergy Kansas Central, Inc. 2026 350.0
 350.0
 —
3.10% SeriesEvergy Kansas Central, Inc. 2027 300.0
 300.0
 —
4.125% SeriesEvergy Kansas Central, Inc. 2042 550.0
 550.0
 —
4.10% SeriesEvergy Kansas Central, Inc. 2043 430.0
 430.0
 —
4.625% SeriesEvergy Kansas Central, Inc. 2043 250.0
 250.0
 —
4.25% SeriesEvergy Kansas Central, Inc. 2045 300.0
 300.0
 —
6.70% SeriesEvergy Kansas South, Inc. 2019 300.0
 300.0
 —
6.15% SeriesEvergy Kansas South, Inc. 2023 50.0
 50.0
 —
6.53% SeriesEvergy Kansas South, Inc. 2037 175.0
 175.0
 —
6.64% SeriesEvergy Kansas South, Inc. 2038 100.0
 100.0
 —
4.30% SeriesEvergy Kansas South, Inc. 2044 250.0
 250.0
 —
2.95% EIRR bondsEvergy Metro, Inc. 2023 79.5
 —
 79.5
7.15% Series 2009A (8.59% rate)(a)
Evergy Metro, Inc. 2019 400.0
 —
 400.0
9.44% SeriesEvergy Missouri West, Inc. 2019-2021 3.4
 —
 —
Pollution Control Bonds         
2.46% Series(b)
Evergy Kansas Central, Inc. 2032 45.0
 45.0
 —
2.46% Series(b)
Evergy Kansas Central, Inc. 2032 30.5
 30.5
 —
2.46% Series(b)
Evergy Kansas South, Inc. 2027 21.9
 21.9
 —
2.50% SeriesEvergy Kansas South, Inc. 2031 50.0
 50.0
 —
2.46% Series(b)
Evergy Kansas South, Inc. 2032 14.5
 14.5
 —
2.46% Series(b)
Evergy Kansas South, Inc. 2032 10.0
 10.0
 —
1.865% Series 2007A and 2007B(b)
Evergy Metro, Inc. 2035 146.5
 —
 146.5
2.75% Series 2008Evergy Metro, Inc. 2038 23.4
 —
 23.4
Senior Notes         
3.15% SeriesEvergy Metro, Inc. 2023 300.0
 —
 300.0
3.65% SeriesEvergy Metro, Inc. 2025 350.0
 —
 350.0
6.05% Series (5.78% rate)(a)
Evergy Metro, Inc. 2035 250.0
 —
 250.0
5.30% SeriesEvergy Metro, Inc. 2041 400.0
 —
 400.0
4.20% SeriesEvergy Metro, Inc. 2047 300.0
 —
 300.0
4.20% SeriesEvergy Metro, Inc. 2048 300.0
 —
 300.0
8.27% SeriesEvergy Missouri West, Inc. 2021 80.9
 —
 —
3.49% Series AEvergy Missouri West, Inc. 2025 36.0
 —
 —
4.06% Series BEvergy Missouri West, Inc. 2033 60.0
 —
 —
4.74% Series CEvergy Missouri West, Inc. 2043 150.0
 —
 —
4.85% Series
Evergy, Inc.(f)
 2021 350.0
 —
 —
5.292% Series
Evergy, Inc.(f)
 2022 287.5
 —
 —
Medium Term Notes         
7.33% SeriesEvergy Missouri West, Inc. 2023 3.0
 —
 —
7.17% SeriesEvergy Missouri West, Inc. 2023 7.0
 —
 —
Fair value adjustment(e)
    144.8
 —
 —
Current maturities (c)
    (705.4) (300.0) (400.0)
Unamortized debt discount and debt issuance costs   (57.2) (37.1) (19.3)
Total excluding current maturities(d)
    $6,636.3
 $3,389.8
 $2,130.1

(a)Variable rate.
(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, 2018, includes $4.3 million of fair value adjustments recorded in connection with purchase accounting for the merger transaction.
(d)
At December 31, 2019 and 2018, 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)
(b)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.
(c)Rate after amortizing gains/losses recognized in OCI on settlements of interest rate hedging instruments.
(d)Unconditionally guaranteed by Evergy, Inc
(e) Evergy demonstrated the intent and ability to refinance the Term Loan Facility that originally expired in February 2023 with a new maturity date of February 2024 and therefore it is reflected in long-term debt, net on Evergy's consolidated balance sheets as of December 31, 2022.
(f)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 Evergy Metro and Evergy Missouri West in connection with purchase accounting for the merger transaction. This amount is not part of future principal payments and will amortize over the remaining life of the associated debt instruments.
(f)
Originally issued by Great Plains Energy but assumed by Evergy, Inc. as part of the merger transaction.
(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 issued to the trustee for the unsecured senior notes in March 2019.

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The following table summarizes Evergy's and Evergy Kansas Central's long-termCentral merger. This amount is not part of future principal payments and will amortize over the remaining life of the associated debt of VIEs.instruments.
   December 31 
  2019 2018
   (millions) 
2.398% due 2021  $51.1
   $81.4
 
Current maturities  (32.3)   (30.3) 
Total excluding current maturities  $18.8
   $51.1
 
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(g) Evergy's current maturities total as of December 31, 2022 and 2021, includes $(0.4) million and $1.8 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger.

(h) At December 31, 2022 and 2021, 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.
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, 2019,2022, approximately $305.4$416.4 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 of 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, 2019,2022, approximately $4,923.3$5,254.1 million principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage.
In March 2022, Evergy Missouri West has issued mortgage bonds under the Generalentered into a First Mortgage Indenture and Deed of Trust, dated Aprilas of March 1, 1946, as supplemented, which creates2022 (Evergy Missouri West Mortgage Indenture), establishing a first mortgage lien on a portionsubstantially all of its present properties and certain after-acquired properties, subject to certain exceptions. In connection with the establishment of the Evergy Missouri West's utility plant.
In March 2019,West Mortgage Indenture, Evergy MetroMissouri West issued collateral mortgage bonds secured by the Evergy MetroMissouri West Mortgage Indenture to serve as collateral for Evergy Metro'sMissouri West's obligations under the following outstanding unsecured senior notes:
•
$300.0 million of 3.15% Series, maturing in 2023;$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;
•$350.0 million of 2.86% Series A, maturing in 2031;
•$75.0 million of 3.01% Series B, maturing in 2033; and
•$75.0 million of 3.21% Series C, maturing in 2036.
Under the Evergy Missouri West Mortgage Indenture, additional Evergy Missouri West mortgage bonds may be issued on the basis of 75% of property additions or retired bonds. As of December 31, 2022, approximately $1,905.0 million principal amount of additional Evergy Missouri West mortgage bonds could be issued under the most restrictive provisions in the mortgage.
•
$350.0 million of 3.65% Series, maturing in 2025;
•
$250.0 million of 6.05% Series, maturing in 2035;
•
$400.0 million of 5.30% Series, maturing in 2041;
•
$300.0 million of 4.20% Series, maturing in 2047; and
•
$300.0 million of 4.20% Series, maturing in 2048.
The collateral mortgage bonds were issued to the applicable trustee forholders of the unsecured senior notes, are only payable if Evergy MetroMissouri West defaults on the underlying unsecured senior notes and do not increase the amount of outstanding debt for Evergy Metro.Missouri West.
As a result of the above transactions, Evergy Metro'sMissouri West's outstanding senior notes have effectively become secured by the mortgage lien of the Evergy MetroMissouri West Mortgage Indenture and rank equally and ratably with all of Evergy Metro'sMissouri West's mortgage bonds, regardless of series, from time to time issued and outstanding under the Evergy MetroMissouri West Mortgage Indenture.
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Also in March 2019,2022, Evergy MetroMissouri West issued, at a discount, $400.0$250.0 million of 4.125% Mortgage Bonds,3.75% FMBs, maturing in 2049. Evergy Metro also repaid its $400.0 million of 7.15% Mortgage Bonds at maturity in April 2019.

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2032.
In June 2019,December 2022, Evergy Kansas South repaid its $300.0 million of 6.70% FMBs at maturity.
In August 2019, Evergy Kansas CentralMissouri West issued, at a discount, $300.0 million of 3.25%5.15% FMBs, maturing in 2049.2027.
Senior Notes
Under the terms of the note purchase agreementagreements for certain Evergy Missouri West's Series A, B and C Senior Notes, West senior notes, Evergy Missouri West is required to maintain a consolidated indebtedness to consolidated capitalization ratio, as defined in the agreement,agreements, not greater than 0.65 to 1.00. In addition, Evergy 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, 2019,2022, Evergy Missouri West was in compliance with these covenants.
In March 2019,2022, Evergy Missouri West issuedrepaid its $100.0 million of 3.74% Senior Notes at maturity.
In June 2022, Evergy repaid its $287.5 million of 5.292% Senior Notes at maturity.
Pollution Control Bonds
In July 2022, Evergy Metro remarketed its unsecured Series 2008 Environmental Improvement Revenue Refunding (EIRR) bonds maturing in 2022, under a note purchase agreement.
In September 2019, Evergy issued,2038 totaling $23.4 million at a discount, $800.0 millionfixed rate of 2.45% Senior Notes, maturing in 2024 and $800.0 million of 2.90% Senior Notes, maturing in 2029.3.50% through June 30, 2025.
Scheduled Maturities
Evergy's, Evergy Kansas Central's and Evergy Metro's long-term debt maturities and the long-term debt maturities of VIEs for the next five years are detailed in the following table.
20232024202520262027
(millions)
Evergy$439.5 $1,300.0 $636.0 $350.0 $621.9 
Evergy Kansas Central50.0 — 250.0 350.0 321.9 
Evergy Metro379.5 — 350.0 — — 
13. DERIVATIVE INSTRUMENTS
The Evergy Companies engage in the wholesale and retail sale of electricity as part of their regulated electric operations, in addition to limited non-regulated energy marketing activities. These activities expose the Evergy Companies to market risks associated with the price of electricity, natural gas and other energy-related products. Management has established risk management policies and strategies to reduce the potentially adverse effects that the volatility of the markets may have on the Evergy Companies' operating results. The Evergy Companies' commodity risk management activities, which are subject to the management, direction and control of an internal risk management committee, utilize derivative instruments to reduce the effects of fluctuations in wholesale sales and fuel and purchased power expense caused by commodity price volatility.
The Evergy Companies are also exposed to market risks arising from changes in interest rates and may use derivative instruments to manage these risks. The Evergy Companies' interest rate risk management activities have included using derivative instruments to hedge against future interest rate fluctuations on anticipated debt issuances.
The Evergy Companies also engage in non-regulated energy marketing activity for trading purposes, primarily at Evergy Kansas Central, which focuses on seizing market opportunities to create value driven by expected changes in the market prices of commodities, primarily electricity and natural gas.
The Evergy Companies consider various qualitative factors, such as contract and marketplace attributes, in designating derivative instruments at inception. The Evergy Companies 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 under accrual accounting. The Evergy Companies account for derivative instruments that are not designated as NPNS primarily as either economic hedges or trading contracts (non-hedging derivatives) which are recorded as assets or liabilities on the consolidated balance sheets at fair value. See Note 14 for additional information on the
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  2020 2021 2022 2023 2024
  (millions)
Evergy(a)
 $251.1
 $432.0
 $387.5
 $439.5
 $800.0
Evergy Kansas Central(a)
 250.0
 —
 —
 50.0
 —
Evergy Metro —
 —
 —
 379.5
 —
VIEs 32.3
 18.8
 —
 —
 —
Evergy Companies' methods for assessing the fair value of derivative instruments. Changes in the fair value of non-hedging derivatives that are related to the Evergy Companies’ regulated operations are deferred to a regulatory asset or regulatory liability when determined to be probable of future recovery or refund from customers. Recovery of the actual costs incurred by regulated activities will not impact earnings but will impact cash flows due to the timing of the recovery mechanism. Cash flows for all derivative instruments are classified as operating activities on the Evergy Companies' statements of cash flows, with the exception of cash flows for interest rate swap agreements accounted for as cash flows hedges of forecasted debt transactions, which are recorded as financing activities. Changes in the fair value of non-hedging derivatives that are not related to the Evergy Companies' regulated operations are recorded in operating revenues on the Evergy Companies' statements of income and comprehensive income.
(a) Excludes long-term debt maturities of VIEs.
The Evergy Companies 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).
The gross notional contract amount by commodity type for derivative instruments is summarized in the following table.
December 31
Non-hedging derivativesNotional volume unit of measure20222021
Evergy(millions)
Commodity contracts
PowerMWhs67.2 59.8 
Natural gasMMBtu772.7 375.6 
Evergy Kansas Central
Commodity contracts
PowerMWhs41.6 36.7 
Natural gasMMBtu769.6 373.6 
Evergy Metro
Commodity contracts
PowerMWhs18.2 17.7 
The fair values of Evergy's open derivative positions and balance sheet classifications are summarized in the following tables. The fair values below are gross values before netting agreements and netting of cash collateral.
December 31
Evergy20222021
Non-hedging derivativesBalance sheet location
Commodity contracts(millions)
PowerOther assets - current$41.6 $33.1 
Other assets - long-term65.6 47.8 
Natural gasOther assets - current221.0 61.5 
Other assets - long-term1.6 1.2 
Total derivative assets$329.8 $143.6 
Commodity contracts
PowerOther liabilities - current$41.0 $23.3 
Other liabilities - long-term61.5 44.1 
Natural gasOther liabilities - current218.8 57.7 
Other liabilities - long-term1.6 1.3 
Total derivative liabilities$322.9 $126.4 
135
December 31
Evergy Kansas Central20222021
Non-hedging derivativesBalance sheet location
Commodity contracts(millions)
PowerOther assets - current$36.7 $22.6 
Other assets - long-term65.6 47.7 
Natural gasOther assets - current221.0 61.4 
Other assets - long-term1.6 1.3 
Total derivative assets$324.9 $133.0 
Commodity contracts
PowerOther liabilities - current$35.6 $20.9 
Other liabilities - long-term61.5 44.1 
Natural gasOther liabilities - current215.1 57.7 
Other liabilities - long-term1.6 1.3 
Total derivative liabilities$313.8 $124.0 
December 31
Evergy Metro20222021
Non-hedging derivativesBalance sheet location
Commodity contracts(millions)
PowerOther assets - current$3.5 $6.9 
Total derivative assets$3.5 $6.9 
Commodity contracts
PowerOther liabilities - current$4.1 $0.4 
Total derivative liabilities$4.1 $0.4 
The following tables presentthe line items on the Evergy Companies' consolidated balance sheets where derivative assets and liabilities are reported. The gross amounts offset in the tables below show the effect of master netting arrangements and include collateral posted to offset the net position.
December 31, 2022EvergyEvergy Kansas CentralEvergy Metro
Derivative Assets(millions)
Current
Gross amounts recognized$262.6 $257.7 $3.5 
Gross amounts offset(237.4)(232.9)(3.5)
Net amounts presented in other assets - current$25.2 $24.8 $— 
Long-Term
Gross amounts recognized$67.2 $67.2 $— 
Gross amounts offset(42.1)(42.1)— 
Net amounts presented in other assets - long-term$25.1 $25.1 $— 
Derivative Liabilities
Current
Gross amounts recognized$259.8 $250.7 $4.1 
Gross amounts offset(234.0)(229.4)(3.5)
Net amounts presented in other liabilities - current$25.8 $21.3 $0.6 
Long-Term
Gross amounts recognized$63.1 $63.1 $— 
Gross amounts offset(36.4)(36.4)— 
Net amounts presented in other liabilities - long-term$26.7 $26.7 $— 
136
December 31, 2021EvergyEvergy Kansas CentralEvergy Metro
Derivative Assets(millions)
Current
Gross amounts recognized$94.6 $84.0 $6.9 
Gross amounts offset(66.3)(63.9)(0.4)
Net amounts presented in other assets - current$28.3 $20.1 $6.5 
Long-Term
Gross amounts recognized$49.0 $49.0 $— 
Gross amounts offset(21.9)(21.9)— 
Net amounts presented in other assets - long-term$27.1 $27.1 $— 
Derivative Liabilities
Current
Gross amounts recognized$81.0 $78.6 $0.4 
Gross amounts offset(66.3)(63.9)(0.4)
Net amounts presented in other liabilities - current$14.7 $14.7 $— 
Long-Term
Gross amounts recognized$45.4 $45.4 $— 
Gross amounts offset(21.9)(21.9)— 
Net amounts presented in other liabilities - long-term$23.5 $23.5 $— 
The following table summarizes the amounts of gain (loss) recognized in income for the change in fair value of derivatives not designated as hedging instruments for the Evergy Companies. The amount of gain (loss) recognized in income for the change in fair value of derivatives not designated as hedging instruments for 2020 was not significant for the Evergy Companies.
Location of gain (loss)Contract type20222021
Evergy(millions)
Operating revenuesCommodity$84.6 $117.5 
Total$84.6 $117.5 
Evergy Kansas Central
Operating revenuesCommodity$84.6 $117.5 
Total$84.6 $117.5 
Credit risk of the Evergy Companies' derivative instruments relates to the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. The Evergy Companies maintain credit policies and employ credit risk mitigation, such as collateral requirements or letters of credit, when necessary to minimize their overall credit risk and monitor exposure. Substantially all of the Evergy Companies' counterparty credit risk associated with derivative instruments relates to Evergy Kansas Central's non-regulated energy marketing activities. As of December 31, 2022, if counterparty groups completely failed to perform on contracts, Evergy's and Evergy Kansas Central's maximum exposure related to derivative assets was $54.4 million. As of December 31, 2022, the potential loss after the consideration of applicable master netting arrangements and collateral received for Evergy and Evergy Kansas Central was not significant.
Certain of the Evergy Companies' derivative instruments contain collateral provisions that are tied to the Evergy Companies' credit ratings and may require the posting of collateral for various reasons, including if the Evergy Companies' credit ratings were to fall below investment grade. Substantially all of these derivative instruments relate to Evergy Kansas Central's non-regulated energy marketing activities. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position as of December 31, 2022, was $47.1 million for which Evergy and Evergy Kansas Central have posted collateral of $7.1 million in the normal course of business. If the credit-risk-related contingent features underlying these agreements were
137
triggered as of December 31, 2022, Evergy and Evergy Kansas Central could be required to post an additional $34.3 million of collateral to their counterparties.
14. FAIR VALUE MEASUREMENTS
Values of Financial Instruments
GAAP establishes a hierarchical framework for disclosing the transparency of the inputs utilized in measuring assets and liabilities at fair value. Management'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 fair value hierarchy levels. In addition, the Evergy Companies measure certain investments that do not have a readily determinable fair value at NAV, which are not included in the fair value hierarchy. Further explanation of these levels and NAV is summarized below.
Level 1 – Quoted prices are available in active markets for identical assets or liabilities. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on public exchanges.exchanges or exchange-traded derivative instruments.
Level 2 –  Pricing inputs are not quoted prices in active markets but are either directly or 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 other financialnon-exchange traded derivative instruments priced with models using highly observable inputs.forward curves and options contracts.
Level 3 – Significant inputs to pricing have little or no transparency. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation. The types of assets and liabilities included in Level 3 are non-exchange traded derivative instruments for which observable market data is not available to corroborate the valuation inputs and TCRs in the SPP Integrated Marketplace.
NAV - Investments that do not have a readily determinable fair value are measured at NAV. These investments do not consider the observability of inputs and, therefore, they are not included within the fair value hierarchy. The Evergy Companies include in this category investments in private equity, real estate and alternative investment

124

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.
The Evergy Companies record cash and cash equivalents, accounts receivable and short-term borrowings on their consolidated balance sheets at cost, which approximates fair value due to the short-term nature of these instruments.
Interest Rate Derivatives
The 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 interest rate swap agreements to protect against unfavorable interest rate changes relating to forecasted debt transactions. These interest rate swap agreements can be designated as cash flow hedges, in which case gains and losses on the interest rate swaps are deferred in other comprehensive income to be recognized as an adjustment to interest expense over the same period that the hedged interest payments affect earnings. The Evergy Companies classify all cash inflows and outflows for interest rate swap agreements accounted 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 settle an interest rate swap agreement with a notional amount of $500.0 million that was designated as a cash flow hedge of interest payments on the debt issuance. Evergy entered into the interest rate swap agreement in December 2018. The $69.8 million pre-tax loss was recorded in other comprehensive loss on Evergy's consolidated statements of comprehensive income and is being reclassified from accumulated other comprehensive loss to interest expense over the ten-year term of the debt. For 2019, $2.0 million and ($0.5) million were reclassified from accumulated other comprehensive loss to interest expense and income tax expense, respectively, on Evergy's consolidated statements of comprehensive income. As of December 31, 2019, Evergy expects to amortize $5.2 million to earnings from accumulated other comprehensive loss over the next twelve months.
Fair Value of Long-Term Debt
The Evergy Companies measure the fair value of long-term debt using Level 2 measurements available as of the measurement date. The book value and fair value of the Evergy Companies' long-term debt and long-term debt of variable interest entities is summarized in the following table.
 December 31
 2019 2018December 31, 2022December 31, 2021
 Book Value Fair Value Book Value Fair ValueBook ValueFair ValueBook ValueFair Value
Long-term debt(a)
 (millions)
Long-term debt(a)
(millions)
Evergy(b)
 $8,997.8
 $9,750.2
 $7,341.7
 $7,412.1
Evergy(b)
$10,344.8 $9,160.0 $9,687.2 $10,758.5 
Evergy Kansas Central 3,686.1
 4,078.8
 3,689.8
 3,771.3
Evergy Kansas Central3,936.9 3,389.4 3,934.2 4,522.5 
Evergy Metro 2,525.0
 2,932.2
 2,530.1
 2,637.5
Evergy Metro2,926.6 2,661.7 2,925.0 3,400.8 
Long-term debt of variable interest entities(a)
        
Evergy $51.1
 $51.5
 $81.4
 $81.3
Evergy Kansas Central 51.1
 51.5
 81.4
 81.3
(a) Includes current maturities.
(b) Book value as of December 31, 20192022 and 2018,2021, includes $125.5$92.1 million and $144.8$97.9 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger, which are not part of future principal payments and will amortize over the remaining life of the associated debt instrument.


125138




Recurring Fair Value Measurements
The following tables include the Evergy Companies' balances of financial assets and liabilities measured at fair value on a recurring basis.
DescriptionDecember 31, 2019 Level 1 Level 2Level 3NAV
Evergy Kansas Central (millions)
Assets               
Nuclear decommissioning trust(a)
               
Domestic equity funds $86.1
  $78.6
  $—
  $—
  $7.5
 
International equity funds 52.0
  52.0
  —
  —
  —
 
Core bond fund 39.3
  39.3
  —
  —
  —
 
High-yield bond fund 22.3
  22.3
  —
  —
  —
 
Emerging markets bond fund 19.4
  19.4
  —
  —
  —
 
Combination debt/equity/other fund 16.4
  16.4
  —
  —
  —
 
Alternative investments fund 23.9
  —
  —
  —
  23.9
 
Real estate securities fund 12.6
  —
  —
  —
  12.6
 
Cash equivalents 0.5
  0.5
  —
  —
  —
 
Total nuclear decommissioning trust 272.5
  228.5
  —
  —
  44.0
 
Rabbi trust               
Core bond fund 25.3
  —
  —
  —
  25.3
 
Combination debt/equity/other fund 6.3
  —
  —
  —
  6.3
 
Cash equivalents 0.1
  0.1
  —
  —
  —
 
Total rabbi trust 31.7
  0.1
  —
  —
  31.6
 
Total $304.2
  $228.6
  $—
  $—
  $75.6
 
Evergy Metro               
Assets               
Nuclear decommissioning trust(a)
               
Equity securities $211.1
  $211.1
  $—
  $—
  $—
 
Debt securities 

             
U.S. Treasury 50.3
  50.3
  —
  —
  —
 
U.S. Agency 0.4
  —
  0.4
  —
  —
 
State and local obligations 2.2
  —
  2.2
  —
  —
 
Corporate bonds 33.2
  —
  33.2
  —
  —
 
Foreign governments 0.1
  —
  0.1
  —
  —
 
Cash equivalents 3.1
  3.1
  —
  —
  —
 
Other 0.3
  —
  0.3
  —
  —
 
Total nuclear decommissioning trust 300.7
  264.5
  36.2
  —
  —
 
Self-insured health plan trust(b)
               
Equity securities 0.5
  0.5
  —
  —
  —
 
Debt securities 6.7
  1.4
  5.3
  —
  —
 
Cash and cash equivalents 2.7
  2.7
  —
  —
  —
 
Total self-insured health plan trust 9.9
  4.6
  5.3
  —
  —
 
Total $310.6
  $269.1
  $41.5
  $—
  $—
 
Other Evergy               
Assets               
Rabbi trusts               
Fixed income fund $13.3
  $—
  $—
  $—
  $13.3
 
Cash and cash equivalents 0.5
  0.5
  —
  —
  —
 
Total rabbi trusts $13.8
  $0.5
  $—
  $—
  $13.3
 
Evergy  
   
   
   
    
Assets  
   
   
   
    
Nuclear decommissioning trust(a)
 $573.2
  $493.0
  $36.2
  $—
  $44.0
 
Rabbi trusts 45.5
  0.6
  —
  —
  44.9
 
Self-insured health plan trust(b)
 9.9
  4.6
  5.3
  —
  —
 
Total $628.6
  $498.2
  $41.5
  $—
  $88.9
 

DescriptionDecember 31, 2022NettingLevel 1Level 2Level 3NAV
Evergy Kansas Central(millions)
Assets
Nuclear decommissioning trust(a)
Domestic equity funds$112.5 $— $100.4 $— $— $12.1 
International equity funds62.9 — 62.9 — — — 
Core bond fund51.0 — 51.0 — — — 
High-yield bond fund25.3 — 25.3 — — — 
Emerging markets bond fund16.0 — 16.0 — — — 
Alternative investments fund31.8 — — — — 31.8 
Real estate securities fund18.9 — — — — 18.9 
Cash equivalents0.4 — 0.4 — — — 
Total nuclear decommissioning trust318.8 — 256.0 — — 62.8 
Rabbi trust
Fixed income funds15.6 — 15.6 — — — 
Equity funds7.3 — 7.3 — — — 
Combination debt/equity/other fund1.9 — 1.9 — — — 
Cash equivalents0.1 — 0.1 — — — 
Total rabbi trust24.9 — 24.9 — — — 
Derivative instruments - commodity contracts(b)
Power42.6 (59.7)45.5 46.5 10.3 — 
Natural gas7.3 (215.3)222.5 0.1 — — 
Total derivative assets49.9 (275.0)268.0 46.6 10.3 — 
Total assets393.6 (275.0)548.9 46.6 10.3 62.8 
Liabilities
Derivative instruments - commodity contracts(b)
Power46.6 (50.5)34.0 55.9 7.2 — 
Natural gas1.4 (215.3)216.6 0.1 — — 
Total derivative liabilities48.0 (265.8)250.6 56.0 7.2 — 
Total liabilities$48.0 $(265.8)$250.6 $56.0 $7.2 $— 
Evergy Metro
Assets    
Nuclear decommissioning trust(a)
    
Equity securities$243.4 $— $243.4 $— $— $— 
Debt securities
U.S. Treasury40.7 — 40.7 — — — 
U.S. Agency0.4 — 0.4 — — — 
State and local obligations4.2 — — 4.2 — — 
Corporate bonds39.1 — — 39.1 — — 
Foreign governments0.1 — — 0.1 — — 
Cash equivalents6.6 — 6.6 — — — 
Total nuclear decommissioning trust334.5 — 291.1 43.4 — — 
Self-insured health plan trust(c)
Equity securities1.6 — 1.6 — — — 
Debt securities8.0 — 2.5 5.5 — — 
Cash and cash equivalents1.6 — 1.6 — — — 
Total self-insured health plan trust11.2 — 5.7 5.5 — — 
Derivative instruments - commodity contracts(b)
Power— (3.5)— — 3.5 — 
Total derivative assets— (3.5)— — 3.5 — 
Total assets345.7 (3.5)296.8 48.9 3.5 — 
Liabilities
Derivative instruments - commodity contracts(b)
Power0.6 (3.5)— — 4.1 — 
Total derivative liabilities0.6 (3.5)— — 4.1 — 
Total liabilities$0.6 $(3.5)$— $— $4.1 $— 
126
139




DescriptionDecember 31, 2022NettingLevel 1Level 2Level 3NAV
Other Evergy
Assets
Rabbi trusts
Core bond fund$9.2 $— $9.2 $— $— $— 
Total rabbi trusts9.2 — 9.2 — — — 
Derivative instruments - commodity contracts(b)
Power0.4 (1.0)— — 1.4 — 
Total derivative assets0.4 (1.0)— — 1.4 — 
Total assets9.6 (1.0)9.2 — 1.4 — 
Liabilities
Derivative instruments
Power0.2 (1.1)0.2 — 1.1 — 
Natural gas3.7 — — 3.7 — — 
Total derivative liabilities3.9 (1.1)0.2 3.7 1.1 — 
Total liabilities$3.9 (1.1)$0.2 $3.7 $1.1 $— 
Evergy    
Assets    
Nuclear decommissioning trust(a)
$653.3 $— $547.1 $43.4 $— $62.8 
Rabbi trusts34.1 — 34.1 — — — 
Self-insured health plan trust(c)
11.2 — 5.7 5.5 — — 
Derivative instruments - commodity contracts(b)
Power43.0 (64.2)45.5 46.5 15.2 — 
Natural gas7.3 (215.3)222.5 0.1 — — 
Total derivative assets50.3 (279.5)268.0 46.6 15.2 — 
Total assets748.9 (279.5)854.9 95.5 15.2 62.8 
Liabilities
Derivative instruments - commodity contracts(b)
Power47.4 (55.1)34.2 55.9 12.4 — 
Natural gas5.1 (215.3)216.6 3.8 — — 
Total derivative liabilities52.5 (270.4)250.8 59.7 12.4 — 
Total liabilities$52.5 $(270.4)$250.8 $59.7 $12.4 $— 
DescriptionDecember 31, 2018Level 1Level 2Level 3NAV
Evergy Kansas Central (millions)
Assets               
Nuclear decommissioning trust(a)
               
Domestic equity funds $70.6
  $63.9
  $—
  $—
  $6.7
 
International equity funds 36.2
  36.2
  —
  —
  —
 
Core bond fund 37.5
  37.5
  —
  —
  —
 
High-yield bond fund 18.9
  18.9
  —
  —
  —
 
Emerging markets bond fund 15.4
  15.4
  —
  —
  —
 
Combination debt/equity/other fund 12.9
  12.9
  —
  —
  —
 
Alternative investments fund 24.1
  —
  —
  —
  24.1
 
Real estate securities fund 11.8
  —
  —
  —
  11.8
 
Cash equivalents 0.1
  0.1
  —
  —
  —
 
Total nuclear decommissioning trust 227.5
  184.9
  —
  —
  42.6
 
Rabbi trust               
Core bond fund 24.8
  —
  —
  —
  24.8
 
Combination debt/equity/other fund 5.6
  —
  —
  —
  5.6
 
Cash equivalents 0.2
  0.2
  —
  —
  —
 
Total rabbi trust 30.6
  0.2
  —
  —
  30.4
 
Total $258.1
  $185.1
  $—
  $—
  $73.0
 
Evergy Metro               
Assets               
Nuclear decommissioning trust(a)
               
Equity securities $166.6
  $166.6
  $—
  $—
  $—
 
Debt securities  
   
   
   
   
 
U.S. Treasury 42.1
  42.1
  —
  —
  —
 
U.S. Agency 0.4
  —
  0.4
  —
  —
 
State and local obligations 2.1
  —
  2.1
  —
  —
 
Corporate bonds 30.9
  —
  30.9
  —
  —
 
Foreign governments 0.1
  —
  0.1
  —
  —
 
Cash equivalents 1.7
  1.7
  —
  —
  —
 
Other 0.7
  0.7
  —
  —
  —
 
Total nuclear decommissioning trust 244.6
  211.1
  33.5
  —
  —
 
Self-insured health plan trust(b)
               
Equity securities 0.5
  0.5
  —
  —
  —
 
Debt securities 3.9
  0.3
  3.6
  —
  —
 
Cash and cash equivalents 8.0
  8.0
  —
  —
  —
 
Total self-insured health plan trust 12.4
  8.8
  3.6
  —
  —
 
Total $257.0
  $219.9
  $37.1
  $—
  $—
 
Other Evergy               
Assets               
Rabbi trusts               
Fixed income fund $13.2
  $—
  $—
  $—
  $13.2
 
Total rabbi trusts $13.2
  $—
  $—
  $—
  $13.2
 
Liabilities               
Interest rate swaps(c)
 $5.4
  $—
  $5.4
  $—
  $—
 
Total $5.4
  $—
  $5.4
  $—
  $—
 
Evergy  
   
   
   
    
Assets  
   
   
   
    
Nuclear decommissioning trust(a)
 $472.1
  $396.0
  $33.5
  $—
  $42.6
 
Rabbi trust 43.8
  0.2
  —


—
  43.6
 
Self-insured health plan trust(b)
 12.4
  8.8
  3.6
  —
  —
 
Total $528.3
  $405.0
  $37.1
  $—
  $86.2
 
Liabilities               
Interest rate swaps(c)
 $5.4
  $—
  $5.4
  $—
  $—
 
Total $5.4
  $—
  $5.4
  $—
  $—
 
140

(a)
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)
The fair value of interest rate swaps are 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 (LIBOR) swap rates.

127




DescriptionDecember 31, 2021NettingLevel 1Level 2Level 3NAV
Evergy Kansas Central(millions)
Assets
Nuclear decommissioning trust(a)
Domestic equity funds$140.4 $— $126.5 $— $— $13.9 
International equity funds74.0 — 74.0 — — — 
Core bond fund58.1 — 58.1 — — — 
High-yield bond fund29.6 — 29.6 — — — 
Emerging markets bond fund18.0 — 18.0 — — — 
Alternative investments fund32.7 — — — — 32.7 
Real estate securities fund15.2 — — — — 15.2 
Cash equivalents0.4 — 0.4 — — — 
Total nuclear decommissioning trust368.4 — 306.6 — — 61.8 
Rabbi trust
Fixed income funds19.6 — 19.6 — — — 
Equity funds9.5 — 9.5 — — — 
Combination debt/equity/other fund2.4 — 2.4 — — — 
Cash equivalents0.2 — 0.2 — — — 
Total rabbi trust31.7 — 31.7 — — — 
Derivative instruments - commodity contracts(b)
Power42.0 (28.3)28.2 37.2 4.9 — 
Natural gas5.2 (57.5)62.2 0.5 — — 
Total derivative assets47.2 (85.8)90.4 37.7 4.9 — 
Total assets447.3 (85.8)428.7 37.7 4.9 61.8 
Liabilities
Derivative instruments - commodity contracts(b)
Power36.7 (28.3)14.7 46.3 4.0 — 
Natural gas1.5 (57.5)58.7 0.3 — — 
Total derivative liabilities38.2 (85.8)73.4 46.6 4.0 — 
Total liabilities$38.2 $(85.8)$73.4 $46.6 $4.0 $— 
Evergy Metro
Assets    
Nuclear decommissioning trust(a)
   
Equity securities$299.2 $— $299.2 $— $— $— 
Debt securities     
U.S. Treasury46.1 — 46.1 — — — 
U.S. Agency0.4 — — 0.4 — — 
State and local obligations4.0 — — 4.0 — — 
Corporate bonds43.7 — — 43.7 — — 
Foreign governments0.1 — — 0.1 — — 
Cash equivalents6.8 — 6.8 — — — 
Total nuclear decommissioning trust400.3 — 352.1 48.2 — — 
Self-insured health plan trust(c)
Equity securities2.0 — 2.0 — — — 
Debt securities8.7 — 2.7 6.0 — — 
Cash and cash equivalents1.8 — 1.8 — — — 
Total self-insured health plan trust12.5 — 6.5 6.0 — — 
Derivative instruments - commodity contracts(b)
Power6.5 (0.4)— — 6.9 — 
Total derivative assets6.5 (0.4)— — 6.9 — 
Total assets419.3 (0.4)358.6 54.2 6.9 — 
Liabilities
Derivative instruments - commodity contracts(b)
Power— (0.4)— — 0.4 — 
Total derivative liabilities— (0.4)— — 0.4 — 
Total liabilities$— $(0.4)$— $— $0.4 $— 
141
DescriptionDecember 31, 2021NettingLevel 1Level 2Level 3NAV
Other Evergy(millions)
Assets
Other Evergy investments
Equity securities(d)
$31.4 $— $— $31.4 $— $— 
Total other Evergy investments31.4 — — 31.4 — — 
Rabbi trusts
Core bond fund12.5 — 12.5 — — — 
Total rabbi trusts12.5 — 12.5 — — — 
Derivative instruments - commodity contracts(b)
Power1.7 (2.0)— — 3.7 — 
Total derivative assets1.7 (2.0)— — — — 
Total assets45.6 (2.0)12.5 31.4 — — 
Liabilities
Derivative instruments - commodity contracts(b)
Power— (2.0)— — 2.0 — 
Total derivative liabilities— (2.0)— — 2.0 — 
Total liabilities$— $(2.0)$— $— $2.0 $— 
Evergy    
Assets    
Nuclear decommissioning trust(a)
$768.7 $— $658.7 $48.2 $— $61.8 
Rabbi trusts44.2 — 44.2 — — — 
Self-insured health plan trust(c)
12.5 — 6.5 6.0 — — 
Other Evergy investments(d)
31.4 — — 31.4 — — 
Derivative instruments - commodity contracts(b)
Power50.2 (30.7)28.2 37.2 15.5 — 
Natural gas5.2 (57.5)62.2 0.5 — — 
Total derivative assets55.4 (88.2)90.4 37.7 15.5 — 
Total assets912.2 (88.2)799.8 123.3 15.5 61.8 
Liabilities
Derivative instruments - commodity contracts(b)
Power36.7 (30.7)14.7 46.3 6.4 — 
Natural gas1.5 (57.5)58.7 0.3 — — 
Total derivative liabilities38.2 (88.2)73.4 46.6 6.4 — 
Total liabilities$38.2 $(88.2)$73.4 $46.6 $6.4 $— 
(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)Derivative instruments classified as Level 1 consist of exchange-traded derivative instruments with fair value based on quoted market prices. Derivative instruments classified as Level 2 consist of non-exchange traded derivative instruments with observable forward curves and option contracts priced with models using observable inputs. Derivative instruments classified as Level 3 consist of non-exchange traded derivative instruments for which observable market data is not available to corroborate the valuation inputs and TCRs valued at the most recent auction price in the SPP Integrated Marketplace.
(c)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.
(d)Fair value was 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.
142
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 provides additional information on these Evergy and Evergy Kansas Central investments.
December 31, 2022December 31, 2021December 31, 2022
FairUnfundedFairUnfundedRedemptionLength of
ValueCommitmentsValueCommitmentsFrequencySettlement
Evergy Kansas Central(millions)
Nuclear decommissioning trust:
Domestic equity funds$12.1 $1.5 $13.9 $1.7 (a)(a)
Alternative investments fund(b)
31.8 — 32.7 — Quarterly65 days
Real estate securities fund(b)
18.9 — 15.2 — Quarterly65 days
Total Evergy investments at NAV$62.8 $1.5 $61.8 $1.7 
 December 31, 2019 December 31, 2018 December 31, 2019
 Fair Unfunded Fair Unfunded Redemption Length of
 Value Commitments Value Commitments Frequency Settlement
Evergy Kansas Central(millions)    
Nuclear decommissioning trust:     
Domestic equity funds$7.5
 $3.3
 $6.7
 $4.3
 (a) (a)
Alternative investments fund(b)
23.9
 —
 24.1
 —
 Quarterly 65 days
Real estate securities fund(b)
12.6
 —
 11.8
 —
 Quarterly 65 days
Total$44.0
 $3.3
 $42.6
 $4.3
    
Rabbi trust:           
Core bond fund$25.3
 $—
 $24.8
 $—
 (c) (c)
Combination debt/equity/other fund6.3
 —
 5.6
 —
 (c) (c)
Total$31.6
 $—
 $30.4
 $—
    
Other Evergy           
Rabbi trusts:           
Fixed income fund$13.3
 $—
 $13.2
 $—
 (c) (c)
Total Evergy investments at NAV$88.9
 $3.3
 $86.2
 $4.3
    
(a)(a)This investment is in five long-term private equity funds that do not permit early withdrawal. Investments in these funds cannot be distributed until the underlying investments have been liquidated, which may take years from the date of initial liquidation. Three 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 three 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.
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 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 fund 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 will be 15 years after the initial closing date, 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.
(c)
This investment can be redeemed immediately and is not subject to any restrictions on redemptions.

128

There is a holdback on final redemptions.
The Evergy Companies hold equity and debt investments classified as securities in various trusts including for the purposes 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 consolidated statements of income and comprehensive income.
The following table summarizes the net unrealized gains (losses) for the Evergy Companies' nuclear decommissioning trusts and rabbi trusts.
202220212020
Evergy(millions)
Nuclear decommissioning trust - equity securities$(123.3)$101.8 45.5 
Nuclear decommissioning trust - debt securities(15.2)(4.5)5.3 
Rabbi trusts - equity securities(7.1)(1.8)(5.6)
Total$(145.6)$95.5 $45.2 
Evergy Kansas Central
Nuclear decommissioning trust - equity securities$(62.8)$50.5 21.9 
Rabbi trust - equity securities(5.4)(1.4)(6.1)
Total$(68.2)$49.1 $15.8 
Evergy Metro
Nuclear decommissioning trust - equity securities$(60.5)$51.3 23.6 
Nuclear decommissioning trust - debt securities(15.2)(4.5)5.3 
Total$(75.7)$46.8 $28.9 
  2019 2018 2017
Evergy Kansas Central(millions)
Nuclear decommissioning trust - equity securities $33.3
 $(31.8) 15.7
Rabbi trust - equity securities 3.2
 1.0
 (14.3)
Total $36.5
 $(30.8) $1.4
Evergy Metro(a)
      
Nuclear decommissioning trust - equity securities $40.7
 $(20.7) 26.7
Nuclear decommissioning trust - debt securities 5.1
 (2.5) 0.5
Total $45.8
 $(23.2) $27.2
Evergy      
Nuclear decommissioning trust - equity securities $74.0
 $(54.1) 15.7
Nuclear decommissioning trust - debt securities 5.1
 (0.5) —
Rabbi trusts - equity securities 3.1
 1.0
 (14.3)
Total $82.2
 $(53.6) $1.4
(a) Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
15. 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
143
evolved over time. These laws, regulations, interpretations and regulationsactions can also change, restrict or otherwise impact the Evergy Companies' operations or financial results in many ways, including the handling or disposal of waste material and the planning for future construction activities.results. The failure to comply with these laws, regulations, interpretations and regulationsactions could result in the assessment of administrative, civil and criminal penalties and/orand the imposition of remedial requirements. The Evergy Companies believe that all of 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.
Cross-StateClean Air Pollution Update RuleAct - Startup, Shutdown and Malfunction (SSM) Regulation
In September 2016,2015, the Environmental Protection Agency (EPA) finalizedissued a final rule addressing how state implementation plans (SIPs) can treat excess emissions during SSM events. This rule was referred to as the Cross-State Air Pollution (CSAPR) Update2015 SIP Call Rule. The final rule addresses interstate transport of nitrogen oxidesrequired 36 states to submit SIP revisions by November 2016 to remove certain exemptions and other discretionary enforcement provisions that apply to excess emissions in 22 states including Kansas, Missouri and Oklahoma during the ozone seasonSSM events. Legal challenges ensued and the impact from the formation of ozone on downwind states with respect to the 2008 ozone National Ambient Air Quality Standards (NAAQS).case was eventually placed in abeyance. In December 2018, the EPA finalized a determination, known as the CSAPR Close-Out Rule, demonstrating the CSAPR Update Rule fully addressed certain upwind states' 2008 ozone NAAQS interstate transport obligations. Various states and others have challenged both the CSAPR Update Rule and the CSAPR Close-Out Rule in2021, the U.S. Court of Appeals for the

129

D.C. Circuit (D.C. Circuit). In restarted the fourth quarterlitigation and oral arguments were held in March 2022. An additional case was also taking place in the U.S. District Court for the Northern District of 2019,California (District Court of Northern California) and in June 2022, the District Court of Northern California entered a final consent decree establishing deadlines for the EPA to take final action on SIP revisions that were submitted in response to the 2015 SIP Call Rule. Deadlines for 26 states and air districts, including Kansas, Missouri and Oklahoma, are listed in the final consent decree. Final action from the EPA could result in required SIP revisions in Oklahoma, Kansas and Missouri which could have a material impact on the Evergy Companies. If the D.C. Circuit granted these petitions and remanded a portionoverturns the EPA's 2015 SIP Call Rule, the final consent decree's deadlines will no longer be valid.
Ozone Interstate Transport State Implementation Plans (ITSIP)
In 2015, the EPA lowered the Ozone National Ambient Air Quality Standards (NAAQS) from 75 ppb to 70 ppb. Impacted states were required to submit ITSIPs in 2018 to comply with the "Good Neighbor Provisions" of the CSAPR Update Rule backClean Air Act (CAA). The EPA did not act on these ITSIP submissions and was challenged in a court filing in May 2021 to address them. In February 2022, the EPA published proposed disapprovals of ITSIPs for nineteen states including Missouri and Oklahoma. In April 2022, the EPA published a final approval of the Kansas ITSIP in the Federal Register. In June 2022, the Missouri Department of Natural Resources (MDNR) announced that it intended to submit a supplemental ITSIP to the EPA and vacatedplaced the CSAPR Close-Outdocument on public notice until August 2022. MDNR submitted the supplemental ITSIP to the EPA on November 1, 2022.
Ozone Interstate Transport Federal Implementation Plans (ITFIP)
In April 2022, the EPA published in the Federal Register the proposed ITFIP to resolve outstanding "Good Neighbor" obligations with respect to the 2015 Ozone NAAQS for 26 states including Missouri and Oklahoma. This ITFIP would establish a revised Cross-State Air Pollution Rule (CSAPR) ozone season nitrogen oxide (NOx) emissions trading program for electric generating units (EGUs), and would limit ozone season NOx emissions from certain industrial stationary sources. The proposed rule would also establish a new daily backstop NOx emissions rate limit for applicable coal-fired units larger than 100 MW, as well as unit-specific NOx emission rate limits for certain industrial emission units and would feature "dynamic" adjustments of emission budgets for EGUs beginning with ozone season 2025. The proposed ITFIP includes reductions to the state ozone season NOx budgets for Missouri and Oklahoma beginning in its entirety.2023 with additional reductions in future years. The Evergy Companies provided formal comments as part of the rulemaking process. The EPA intends to issue final ITFIPs for applicable states in March 2023. Due to uncertainty regarding the uncertainty in what the future CSAPR Update Rule will include,proposed ITFIP, the Evergy Companies cannot determineare unable to accurately assess the impactimpacts of these potential EPA actions on their operations or consolidated financial results, but itthe cost to comply with the ITFIP could be material.
Particulate Matter and Ozone National Ambient Air Quality Standards
In January 2023, the EPA proposed strengthening the primary annual PM2.5 (particulate matter less than 2.5 microns in diameter) NAAQS. The EPA is proposing to lower the primary annual PM2.5 NAAQS from 12.0 µg/m3
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(micrograms per cubic meter) to a level that would be between 9.0 and 10.0 µg/m3. The EPA is proposing to retain the other PM NAAQS at their current levels. The EPA is also in the process of reconsidering its December 2020 decisions to retain each of the Ozone NAAQS at the level set in 2015. Due to uncertainty regarding the potential lowering of the ozone and PM2.5 NAAQS, the Evergy Companies are unable to accurately assess the impacts of these potential EPA actions on their operations or consolidated financial results, but the cost to comply with lower future ozone or PM2.5 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 Environment (KDHE) and MDNR as they worked to draft their SIP revisions. The Missouri SIP revision does not require any additional reductions from the Evergy Companies' generating units in the state. MDNR submitted the Missouri SIP revision to the EPA in August 2022, however, they failed to do so by the EPA's revised submittal deadline of August 15, 2022. As a result, on August 30, 2022, the EPA published "finding of failure" with respect to Missouri and fourteen other states for failing to submit their Regional Haze SIP revisions by the applicable deadline. This finding of failure established a two-year deadline for the EPA to issue a Regional Haze federal implementation plan (FIP) for each state unless the state submits and the EPA approves a revised SIP that meets all applicable requirements before the EPA issues the FIP. 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 revised SIP or 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)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 August 2018,July 2019, the EPA published the final Affordable Clean Energy (ACE) rule in the Federal Register proposed regulations, whichRegister. This rule contained (1) emission guidelines for GHG emissions from existing electric utility generating units (EGUs), (2) and revisions to emission guideline implementing regulations and (3) revisions to the new source review (NSR) program. These emission guidelines are better known as the Affordable Clean Energy (ACE) Rule. In July 2019, the EPA published in the Federal Register the final ACE Rule with one significant change from the proposal.regulations. The NSR program revisions were not included in the final version and are expected to be addressed in a future rulemaking. The ACE Rule establishes emission guidelines for states to use in the development of plans to reduce GHG emissions from existing coal-fired EGUs. This rule definesdefined the "best system of emission reduction" (BSER) for GHG emissions from existing coal-fired EGUs as on-site, heat-rate efficiency improvements. The final rule also provides states with a list of candidate technologies that can be used to establish standards of performance and incorporate these performance standards into state plans. In order for the states to be able to effectively implement the emission guidelines contained in the ACE Rule, the EPA is finalizing new regulations under Section 111(d) of the CAA to help clarify this process. The ACE Rule became effective in September 2019. In conjunction with the finalization of the ACE Rule,rule, the EPA repealed its previously adopted Clean Power Plan (CPP). Also on the basis that the EPA had exceeded its statutory authority under CAA section 111(d) by defining BSER through generation shifting. A number of states and industry parties filed petitions for review in September 2019, the D.C. Circuit, granted motions to dismiss challenges tochallenging the EPA's repeal of the CPP and challenges to EPA's denial of reconsiderationits enactment of the CPP.ACE rule, and in January 2021, the D.C. Circuit issued a decision holding that CAA section 111(d) could be read in a manner that allows the EPA to define BSER as including generation shifting. The D.C. Circuit therefore vacated both the EPA's repeal of the CPP and its replacement of that rule with the ACE rule, and remanded them to the EPA for further consideration. In October 2021, the Supreme Court granted petitions for certiorari to review the D.C. Circuit decision. The Supreme Court issued its decision in June 2022, reversing the D.C. Circuit's decision and holding that, absent specific authorization
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from Congress, the EPA lacks authority to define BSER through generation shifting. Given that the Supreme Court found the CPP to be unlawful and that the deadlines established in the ACE rule have passed, neither rule is in effect following the Supreme Court's ruling. In January 2023, the EPA announced its intent to propose GHG regulations that would apply to EGUs by April 2023.
Due to uncertainty regarding whatthe future state implementation plans will require for compliance withof the ACE Rule as well as legal challenges that have been filed,EPA's GHG regulations, the Evergy Companies cannot determine the impactimpacts on their operations or consolidated financial results, but the cost to comply with the ACE Rule, should it be upheld and implemented in its current or a substantially similar form,potential GHG rules could be material.
Water
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. On November 22,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 issue a proposed rule in the fall of 2022 to address the vacated limitations for legacy wastewater and landfill leachate. This proposed rule has not yet been issued and the EPA is now expected to initiate this proposed rulemaking in early 2023. 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 a proposed modification to the final ELG reconsideration rule. The proposedThis rule modifiesadjusts 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 also delayed by two years toas 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 ELG 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 are inhave reviewed the process of reviewing the proposed rule2020 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.
In April 2019,August 2021, based on an order issued by the U.S. District Court of Appeals for the 5th Circuit (5th Circuit)District of Arizona, which vacated and remanded the EPA's 2020 Navigable Waters Protection Rule (NWPR), the EPA and the U.S. Army Corps of Engineers announced that they had halted implementation of the NWPR nationwide, and were interpreting "Waters of the United States" consistent with the regulatory regime that was in place prior to 2015. In December 2021, the EPA and the Department of the Army published a proposed rule that would formally repeal the NWPR and revise the definition of "Waters of the United States". In December 2022, the EPA and the Department of the Army issued a ruling that vacates and remands portionsfinal rule establishing a definition for "Waters of the original ELG rule. Due to this ruling, future ELG modifications for the best available technology economically achievable for legacy waste water and leachate are likely.
In October 2014, the EPA'sUnited States". The final standards for cooling water intake structures at power plants to protect aquatic life took effect. The standards, based on Section 316(b) ofrule was published in the federal Clean Water Act (CWA), require subject facilities to choose among seven best available technology options to reduce fish impingement. In addition, some facilities must conduct studies to assist permitting authorities to determine whetherregister in January 2023 and what site-specific controls, if any, would be required to reduce entrainment of aquatic organisms.will take effect in March 2023. The Evergy Companies' current analysis indicates this rule will not have a significantCompanies are reviewing the final rulemaking and the impact on their coal plants that employ cooling towersoperations or cooling lakes that can

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be classified as closed cycle cooling and doconsolidated financial results are not expect the impact from this ruleexpected to be material. Plants without closed cycle cooling are under evaluation for compliance with these standards and may require additional controls that could be material.
Evergy Metro holds a permit from the Missouri Department of Natural Resources (MDNR) covering water discharge from its Hawthorn Station.  The permit authorizes Evergy Metro to, among other things, withdraw water from the Missouri River for cooling purposes and return the heated water to the Missouri River.  Evergy Metro 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, Evergy Metro continues to operate under its current permit. Evergy and Evergy Metro 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 material impact on Evergy's and Evergy Metro's operations and consolidated financial results.  
Regulation of Coal Combustion Residuals
In the course of operating their coal generation plants, the Evergy Companies produce CCRs,coal combustion residuals (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. In January 2022, the EPA published proposed determinations for facilities that filed closure extensions for unlined or clay-lined CCR units. These proposed determinations include various interpretations of the CCR regulations and compliance expectations that may impact all owners of CCR units. These 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 are possible. In April 2022,
In March 2019,
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the Utility Solid Waste Activities Group (USWAG) and other interested parties filed similar petitions in the D.C. Circuit challenging the EPA's legal positions regarding the CCR rule determinations proposed in January 2022. Some CCR units at Lawrence Energy Center and Sibley Station have moved into corrective action. In January 2022, the EPA issued a ruling"Notice of Potential Violation" to grant the EPA's request to remand the Phase I, Part ITecumseh Energy Center (TEC) suggesting a closed CCR rule. This was in responseimpoundment should enter corrective action. In November 2022, Evergy agreed to a prior court ruling requiringConsent Agreement and Final Order (CAFO) with the EPA Region 7 addressing the alleged potential violation. In the CAFO, Evergy agreed to address un-lined surfacere-open the TEC CCR impoundment closure requirements. On December 2, 2019,for further assessment of groundwater. It is possible that the TEC impoundment or other CCR units at other generation stations could move into corrective action based on the EPA published a proposedCCR rule calledinterpretations, enforcement actions, or execution of the Part AEvergy Companies' CCR Rule. This proposal reclassifies clay-lined surface impoundments from "lined" to "unlined" and establishes a deadline of August 31, 2020 to initiate closure.strategy. The prior rule included a deadline of October 31, 2020 for unlined impoundments to initiate closure. In February 2020, the EPA released a pre-publication version of a proposed rule called the Part B CCR Rule. This proposal includes a process to allow unlined impoundments to continue to operate if a demonstration is made to prove that they are not adversely impacting groundwater, human health or the environment. The proposal also includes clarification regarding ash used in the closure of landfills and surface impoundments. The Evergy Companies are in the process of reviewing these proposed rules and the costscost to comply with these changesproposed determinations by the EPA could be material.
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.ponds and landfills. If revisions to these AROs are necessary, the impact on the Evergy Companies' operations or consolidated financial results could be material.
Storage of Spent Nuclear Fuel
Under the Nuclear Waste Policy Act of 1982, the Department of Energy (DOE) is responsible for the permanent disposal of spent nuclear fuel. In 2010, the DOE filed a motion with the Nuclear Regulatory Commission (NRC) to withdraw its then pending application to construct a national repository for the disposal of spent nuclear fuel and high-level radioactive waste at Yucca Mountain, Nevada. The NRC has not yet issued a final decision on the matter.
Wolf Creek has elected to build a dry cask storage facility to expand its existing on-site spent nuclear fuel storage, which is expected to provide additional capacity prior to 2022. The Evergy Companies expect that the majority of the costs to construct the dry cask storage facility that would not have otherwise been incurred had the DOE begun accepting spent nuclear fuel will be reimbursed by the DOE. The Evergy Companies cannot predict when, or if, an off-site storage site or alternative disposal site will be available to receive Wolf Creek's spent nuclear fuel and will continue to monitor this activity.
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

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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 $13.9$13.7 billion. This limit of liability consists of the maximum available commercial insurance of $0.4$0.5 billion and the remaining $13.5$13.2 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 $129.2$129.4 million and each of Evergy Kansas Central's and Evergy Metro's is $64.6$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 $33.2$28.3 million (Evergy's share is $31.2$26.6 million and each of Evergy Kansas Central's and Evergy Metro's is $15.6$13.3 million).
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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.

Contractual Commitments - Fuel Power and OtherPower
The Evergy Companies' contractual commitments for fuel and power at December 31, 2019, excluding pensions, long-term debt and leases,2022 are detailed in the following tables. See Notes 10, 139, 12 and 21 for information regarding pension, long-term debt and lease commitments, respectively.
Evergy
20232024202520262027After 2027Total
Purchase commitments(millions)
Fuel$308.6 $157.5 $130.4 $132.9 $57.1 $148.3 $934.8 
Power62.7 57.1 57.5 57.5 57.5 275.2 567.5 
Total fuel and power commitments$371.3 $214.6 $187.9 $190.4 $114.6 $423.5 $1,502.3 
Evergy              
Evergy Kansas CentralEvergy Kansas Central
 2020 2021 2022 2023 2024 After 2024Total20232024202520262027After 2027Total
Purchase commitments (millions)Purchase commitments(millions)
Fuel $486.9
 $137.0
 $83.2
 $84.7
 $17.1
 $94.1
 $903.0
Fuel$160.3 $100.6 $83.9 $83.7 $30.3 $77.9 $536.7 
Power 47.3
 47.4
 47.6
 47.8
 41.7
 325.2
 557.0
Power0.9 0.9 0.9 0.9 0.9 2.7 7.2 
Other 147.7
 42.3
 30.0
 25.1
 19.4
 117.7
 382.2
Total contractual commitments $681.9
 $226.7
 $160.8
 $157.6
 $78.2
 $537.0
 $1,842.2
Total fuel and power commitmentsTotal fuel and power commitments$161.2 $101.5 $84.8 $84.6 $31.2 $80.6 $543.9 

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Evergy Kansas Central                    
  2020  2021  2022  2023  2024 After 2024Total
Purchase commitments (millions)
Fuel $269.9
  $33.0
  $47.2
  $45.7
  $11.5
  $59.0
  $466.3
Other 76.5
  11.7
  4.7
  3.0
  0.2
  —
  96.1
Total contractual commitments $346.4
  $44.7
  $51.9
  $48.7
  $11.7
  $59.0
  $562.4
Evergy Metro                    
  2020  2021  2022  2023  2024 After 2024Total
Purchase commitments (millions)
Fuel $180.2
  $92.5
  $36.0
  $39.0
  $5.6
  $35.1
  $388.4
Power 34.8
  34.9
  35.1
  35.3
  29.2
  225.4
  394.7
Other 58.4
  29.0
  24.2
  21.6
  18.7
  112.9
  264.8
Total contractual commitments $273.4
  $156.4
  $95.3
  $95.9
  $53.5
  $373.4
  $1,047.9

Evergy Metro
20232024202520262027After 2027Total
Purchase commitments(millions)
Fuel$128.2 $49.1 $39.7 $42.3 $22.5 $70.4 $352.2 
Power35.3 29.2 29.2 29.2 29.2 166.9 319.0 
Total fuel and power commitments$163.5 $78.3 $68.9 $71.5 $51.7 $237.3 $671.2 
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. Other represents individual commitments entered into in the ordinary course of business.agreements, capacity purchases and firm transmission service.
16. 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. In connection with the closing of the merger, Evergy assumed the guarantees previously provided to Evergy Missouri West by Great Plains Energy. The majority of these agreements guarantee Evergy's own future performance, so a liability for the fair value of the obligation is not recorded.
AtAs of December 31, 2019,2022, Evergy has provided $110.2$804.0 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 as follows:long-term debt totaling $756.0 million, which includes debt with maturity dates ranging from 2023 to 2043.
•
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Evergy direct guarantees to Evergy Missouri West counterparties totaling $17.0 million, which expire in 2020, and
•
Evergy's guarantee of Evergy Missouri West long-term debt totaling $93.2 million, which includes debt with maturity dates ranging from 2020 to 2023.
Evergy has also guaranteed Evergy Missouri West's commercial paper program.program. At December 31, 2019,2022, Evergy Missouri West had $93.4$449.2 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.
17. 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. Transactions between Evergy Kansas Central and either Evergy Metro or Evergy Missouri West prior to June 4, 2018, the date of the merger, are not reflected below.
Jointly-Owned Plants and Shared Services
Employees of Evergy Kansas Central and Evergy Metro employees 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.  The operating expenses and capital costs billed from Evergy Metro to Evergy Missouri West were $172.8 million for 2019, $183.2 million for 2018 and $196.3 million for 2017.

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Evergy Kansas Central employees manage JECJeffrey Energy Center (JEC) and operate its facilities at cost, including Evergy Missouri West's 8% ownership interest in JEC. The operating expenses and capital costs billed fromEmployees of Evergy Kansas Central to Evergy Missouri West for JEC and other various business activities were $24.9 million for 2019 and $12.3 million for 2018.
Evergy Metro employees 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 employees 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 from Evergy Metro to Evergy Kansas Central were $154.9 million for 2019jointly-owned plants and $82.9 million for 2018. The operating and capital costs billed from Evergy Kansas Central to Evergy Metro were $40.6 million for 2019 and $17.5 million for 2018.shared services are detailed in the following table.
202220212020
(millions)
Evergy Kansas Central billings to Evergy Missouri West$32.7 $32.5 $37.6 
Evergy Metro billings to Evergy Missouri West140.5 142.1 168.7 
Evergy Kansas Central billings to Evergy Metro33.1 29.4 34.7 
Evergy Metro billings to Evergy Kansas Central238.4 134.7 130.8 
Money Pool
Evergy Kansas Central, Evergy Metro and Evergy Missouri West are also 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 tobetween Evergy Kansas Central, Evergy Metro, and Evergy Missouri West fromand Evergy, Inc. and between Evergy, Metro and Evergy Missouri West. AtInc. can lend but not borrow under the money pool.
As of December 31, 2019 and 2018,2022, Evergy Metro had 0a $31.0 million outstanding receivables or payablesreceivable from Evergy Missouri West under the money pool. As of December 31, 2021, Evergy Metro had a $155.0 million outstanding receivable from Evergy Missouri West under the money pool.
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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 
  2019  2018 
Evergy Kansas Central (millions) 
Net receivable from Evergy Missouri West $3.1
  $2.6
 
Net payable to Evergy Metro (14.9)  (13.5) 
Net receivable from (payable to) Evergy 6.9
  (1.4) 
       
Evergy Metro      
Net receivable from Evergy Missouri West $78.7
  $72.6
 
Net receivable from Evergy Kansas Central 14.9
  13.5
 
Net receivable from (payable to) Evergy (4.3)  15.7
 

December 31
20222021
Evergy Kansas Central(millions)
Net payable to Evergy$(12.7)$(2.2)
Net payable to Evergy Metro(15.7)(14.5)
Net receivable from Evergy Missouri West7.4 10.4 
Evergy Metro
Net receivable from Evergy$16.3 $8.7 
Net receivable from Evergy Kansas Central15.7 14.5 
Net receivable from Evergy Missouri West137.5 254.5 
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. As of December 31, 2019 and 2018,The following table summarizes Evergy Kansas Central hadCentral's and Evergy Metro's income taxes receivable from Evergy of $37.9 million and $42.7 million, respectively. As of December 31, 2019 and 2018, Evergy Metro had income taxes payable to Evergy of $14.1 million and $2.0 million, respectively.
Leases
Evergy Metro leases certain transmission equipment from Evergy Kansas Central. This lease was entered into prior to the merger in an arms-length transaction and is accounted for as an operating lease. As of December 31, 2019, Evergy Metro had a right-of-use asset of $29.5 million recorded within other long-term assets, $0.6 million of lease liability recorded in other current liabilities and $28.9 million of lease liability recorded in other long-term liabilities on its consolidated balance sheet related to this lease. The assets and liabilities related to this lease between Evergy Kansas Central and Evergy Metro are eliminated at consolidated(payable to) Evergy.

December 31
20222021
Evergy Kansas Central(millions)
Income taxes receivable from (payable to) Evergy$(10.3)$9.6 
Evergy Metro
Income taxes receivable from (payable to) Evergy$0.2 $(2.5)
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18. 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 November 2018,September 2021, Evergy filed an automatic shelf registration statement providing for the sale of unlimited amounts of securities with the SEC,Securities and Exchange Commission (SEC), which expires in November 2021.September 2024.
150
In September 2021, Evergy has 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 plansplan may be either newly issued shares or shares purchased on the open market.
Common Stock Repurchase Program
In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock. Evergy has utilized various methods to effectuate the share repurchase program since its authorization, including the repurchase of shares through accelerated share repurchase (ASR) agreements and open market transactions. Evergy retires repurchased common stock shares in the period the shares are repurchased. For 2019, Evergy had total repurchases of common stock of $1,628.7 million and had repurchased 28.8 million shares under the repurchase program. Since the start of the repurchase program in August 2018, Evergy has made total repurchases of common stock of $2,671.0 million and has repurchased 45.2 million shares under the repurchase program. Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committee of the Evergy Board conducts its review of ways to enhance long-term shareholder value, which is expected to conclude in the first half of 2020.
The following table summarizes the ASRs completed as part of Evergy's common stock repurchase program.
Date ASR Entered Final Settlement Date Amount Shares Delivered
    (millions)
August 2018 October/November 2018 $450.0
 7.9
November 2018 February 2019 475.0
 8.3
March 2019 June 2019 450.0
 7.8
June 2019 September 2019 500.0
 8.1
September 2019 November/December 2019 500.0
 7.8

Under the ASR agreements entered into with various financial institutions, Evergy was delivered a number of shares of its common stock based on the amount of the ASR agreement and the average daily volume-weighted average price of its common stock during the term of the ASR agreement, less a negotiated discount. Evergy reflects ASRs as a repurchase of common stock in the period the shares are delivered for purposes of calculating earnings per share and as forward contracts indexed to its own common stock. Evergy's ASRs have met all of the applicable criteria for equity classification and therefore are not accounted for as derivative instruments.
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.

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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 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, 2019,2022, 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 $152.0$222.9 million. As of December 31, 2022, Evergy's subsidiaries had restricted net assets of approximately $5.0 billion as of December 31, 2019.$5.8 billion. These restrictions are not expected to affect the Evergy Companies' ability to pay dividends at the current level for the foreseeable future.
19. 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 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 the third quarter of 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
151
an owner participant and debt issued by the trust. The trust was created specifically to purchase the 50% interest in

136

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 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
20222021
Assets:(millions)
Property, plant and equipment of variable interest entities, net$140.7 $147.8 
  December 31
  2019 2018
Assets: (millions)
Property, plant and equipment of variable interest entities, net $162.0
 $169.2
Liabilities:    
Current maturities of long-term debt of variable interest entities $32.3
 $30.3
Accrued interest(a)
 0.3
 0.5
Long-term debt of variable interest entities, net 18.8
 51.1
(a)
Included in accrued interest on Evergy's and Evergy Kansas Central's consolidated balance sheets.
All of the liabilities noted in the table above relate to the purchase of the property, plant and equipment of the VIE. The assets of the VIE can be used only to settle obligations of the VIE and the VIE's debt holders have no recourse to the general credit of Evergy and Evergy Kansas Central. Evergy and Evergy Kansas Central have not provided financial or other support to the VIE and are not required to provide such support. Evergy and Evergy Kansas Central did not record any gain or loss upon the initial consolidation of the VIE.
20. TAXES
Components of income tax expense are detailed in the following tables.
Evergy2019 2018 2017
Current income taxes(millions)
Federal$(39.5) $(67.4) $0.1
State15.0
 2.2
 0.4
Total(24.5) (65.2) 0.5
Deferred income taxes 
  
  
Federal93.2
 160.1
 122.8
State27.5
 (32.3) 30.7
Total120.7
 127.8
 153.5
Investment tax credit     
Deferral5.2
 —
 —
Amortization(4.4) (3.6) (2.8)
Total0.8
 (3.6) (2.8)
Income tax expense$97.0
 $59.0
 $151.2

Evergy202220212020
Current income taxes(millions)
Federal$31.9 $15.6 $(26.8)
State8.3 (0.4)2.1 
Total40.2 15.2 (24.7)
Deferred income taxes   
Federal17.2 92.8 73.1 
State(3.4)14.7 59.8 
Total13.8 107.5 132.9 
Investment tax credit
Deferral— 0.4 — 
Amortization(6.5)(5.7)(6.0)
Total(6.5)(5.3)(6.0)
Income tax expense$47.5 $117.4 $102.2 
137
152




Evergy Kansas Central202220212020
Current income taxes(millions)
Federal$95.8 $53.3 $14.5 
State3.9 (0.2)(5.3)
Total99.7 53.1 9.2 
Deferred income taxes   
Federal(78.7)3.8 (16.7)
State(4.6)(1.2)168.1 
Total(83.3)2.6 151.4 
Investment tax credit
Deferral— 0.3 — 
Amortization(4.1)(4.3)(4.8)
Total(4.1)(4.0)(4.8)
Income tax expense$12.3 $51.7 $155.8 
Evergy Kansas Central2019 2018 2017
Current income taxes(millions)
Federal$37.9
 $(0.3) $0.1
State2.6
 (1.8) 0.4
Total40.5
 (2.1) 0.5
Deferred income taxes 
  
  
Federal(8.9) 43.5
 122.8
State18.4
 (42.9) 30.7
Total9.5
 0.6
 153.5
Investment tax credit     
Deferral5.2
 —
 —
Amortization(3.1) (2.8) (2.8)
Total2.1
 (2.8) (2.8)
Income tax expense (benefit)$52.1
 $(4.3) $151.2
Evergy Metro(a)
2019 2018 2017
Current income taxes(millions)
Federal$43.9
 $29.8
 $37.4
State22.4
 8.9
 8.3
Total66.3
 38.7
 45.7
Deferred income taxes 
  
  
Federal(24.5) (3.4) 74.7
State(5.0) 53.0
 8.8
Total(29.5) 49.6
 83.5
Investment tax credit     
Amortization(1.1) (1.0) (1.0)
Total(1.1) (1.0) (1.0)
Income tax expense$35.7
 $87.3
 $128.2

(a)Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
Evergy Metro202220212020
Current income taxes(millions)
Federal$(21.9)$39.2 $(0.2)
State4.1 3.2 10.8 
Total(17.8)42.4 10.6 
Deferred income taxes   
Federal69.9 6.5 29.8 
State0.6 4.8 (32.2)
Total70.5 11.3 (2.4)
Investment tax credit
Amortization(2.4)(1.3)(1.1)
Total(2.4)(1.3)(1.1)
Income tax expense$50.3 $52.4 $7.1 
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.
Evergy2019 2018 2017
Federal statutory income tax21.0 % 21.0 % 35.0 %
COLI policies(1.8) (1.9) (3.1)
State income taxes5.0
 4.9
 4.1
Flow through depreciation for plant-related differences(4.5) 0.8
 2.3
Federal tax credits(4.9) (6.4) (6.9)
Non-controlling interest(0.4) (0.4) (0.9)
AFUDC equity(0.1) (0.1) (0.2)
Amortization of federal investment tax credits(0.5) (0.6) (0.6)
Changes in uncertain tax positions, net(0.2) 0.1
 —
Federal or state tax rate change—
 (8.7) 2.5
Valuation allowance(1.0) 0.4
 0.3
Stock compensation0.1
 (0.4) (0.9)
Officer compensation limitation0.1
 1.2
 0.2
Other(0.4) (0.2) (0.8)
Effective income tax rate12.4 % 9.7 % 31.0 %

Evergy202220212020
Federal statutory income tax21.0 %21.0 %21.0 %
COLI policies(1.2)(1.0)(1.6)
State income taxes0.3 1.0 4.3 
Flow through depreciation for plant-related differences(8.4)(5.4)(5.3)
Federal tax credits(4.0)(2.8)(4.6)
Non-controlling interest(0.3)(0.3)(0.3)
AFUDC equity(0.6)(0.6)(0.5)
Amortization of federal investment tax credits(0.6)(0.4)(0.6)
Federal or state tax rate change— — 1.9 
Valuation allowance— — (0.2)
Stock compensation(0.2)— (0.1)
Officer compensation limitation0.3 0.5 0.2 
Other(0.5)(0.4)(0.2)
Effective income tax rate5.8 %11.6 %14.0 %
138
153




Evergy Kansas Central202220212020
Federal statutory income tax21.0 %21.0 %21.0 %
COLI policies(2.2)(1.7)(2.8)
State income taxes(0.4)(0.4)3.8 
Flow through depreciation for plant-related differences(6.6)(3.0)(0.1)
Federal tax credits(7.2)(5.0)(7.1)
Non-controlling interest(0.6)(0.5)(0.6)
AFUDC equity(0.4)(0.6)(0.5)
Amortization of federal investment tax credits(0.5)(0.5)(0.7)
Federal or state tax rate change— — 27.8 
Stock compensation(0.2)(0.1)(0.1)
Officer compensation limitation0.1 0.3 — 
Other(0.2)(0.1)(0.9)
Effective income tax rate2.8 %9.4 %39.8 %

Evergy Metro202220212020
Federal statutory income tax21.0 %21.0 %21.0 %
COLI policies(0.1)(0.2)(0.3)
State income taxes0.9 1.7 4.9 
Flow through depreciation for plant-related differences(7.2)(7.8)(10.0)
Federal tax credits(0.1)(0.2)(1.9)
AFUDC equity(0.7)(0.7)(0.5)
Amortization of federal investment tax credits(0.6)(0.4)(0.4)
Federal or state tax rate change— — (10.5)
Stock compensation(0.2)— (0.4)
Officer compensation limitation0.5 0.9 0.4 
Other(1.1)0.1 — 
Effective income tax rate12.4 %14.4 %2.3 %
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Evergy Kansas Central2019 2018 2017
Federal statutory income tax21.0 % 21.0 % 35.0 %
COLI policies(3.3) (3.3) (3.1)
State income taxes5.3
 5.0
 4.1
Flow through depreciation for plant-related differences(0.1) 1.6
 2.3
Federal tax credits(7.4) (10.4) (6.9)
Non-controlling interest(0.8) (0.6) (0.9)
AFUDC equity(0.1) (0.2) (0.2)
Amortization of federal investment tax credits(0.7) (0.8) (0.6)
Changes in uncertain tax positions, net(0.4) 0.1
 —
Federal or state tax rate change—
 (15.3) 2.5
Valuation allowance(0.4) 0.5
 0.3
Stock compensation(0.1) (0.8) (0.9)
Officer compensation limitation—
 1.8
 0.2
Other(0.3) 0.2
 (0.8)
Effective income tax rate12.7 % (1.2)% 31.0 %
Evergy Metro(a)
2019 2018 2017
Federal statutory income tax21.0 % 21.0 % 35.0 %
COLI policies(0.2) (0.2) (0.3)
State income taxes4.7
 5.5
 3.8
Flow through depreciation for plant-related differences(9.4) (2.5) 0.5
Federal tax credits(2.5) (2.1) (2.4)
AFUDC equity(0.2) (0.1) (0.7)
Amortization of federal investment tax credits(0.4) (0.4) (0.3)
Federal or state tax rate change—
 14.1
 5.3
Valuation allowance—
 —
 0.4
Stock compensation—
 —
 0.2
Officer compensation limitation0.3
 0.6
 0.1
Other(1.0) (1.0) —
Effective income tax rate12.3 % 34.9 % 41.6 %

(a)Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.

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Deferred Income Taxes
The tax effects of major temporary differences resulting in deferred income tax assets (liabilities) in the consolidated balance sheets is in the following table.
 December 31
 2019 2018
 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Deferred tax assets:(millions)
Tax credit carryforward$548.9
 $337.3
 $204.4
 $508.1
 $307.1
 $194.0
Income taxes refundable to customers, net466.3
 234.3
 176.2
 478.1
 233.1
 186.9
Deferred employee benefit costs197.0
 93.4
 120.4
 215.4
 89.6
 118.3
Net operating loss carryforward163.4
 23.1
 61.9
 383.3
 60.7
 119.2
Deferred state income taxes64.4
 64.4
 —
 62.5
 62.5
 —
Alternative minimum tax carryforward37.9
 13.4
 —
 73.4
 26.7
 —
Accrued liabilities80.4
 14.5
 29.1
 82.6
 13.6
 32.8
Other183.2
 99.1
 55.1
 193.5
 101.7
 46.7
Total deferred tax assets before valuation
   allowance
1,741.5
 879.5
 647.1
 1,996.9
 895.0
 697.9
Valuation allowances(17.5) —
 —
 (27.3) (1.7) —
Total deferred tax assets, net1,724.0
 879.5
 647.1
 1,969.6
 893.3
 697.9
Deferred tax liabilities:           
Plant-related(3,107.1) (1,481.7) (1,157.0) (3,164.9) (1,491.6) (1,199.7)
Deferred employee benefit costs(173.3) (93.4) (79.5) (199.9) (89.6) (86.1)
Acquisition premium(68.2) (68.2) —
 (72.6) (72.6) —
Other(119.8) (53.9) (53.4) (131.4) (54.9) (43.9)
Total deferred tax liabilities(3,468.4) (1,697.2) (1,289.9) (3,568.8) (1,708.7) (1,329.7)
Net deferred income tax liabilities$(1,744.4) $(817.7) $(642.8) $(1,599.2) $(815.4) $(631.8)

December 31
20222021
EvergyEvergy Kansas CentralEvergy MetroEvergyEvergy Kansas CentralEvergy Metro
Deferred tax assets:(millions)
Tax credit carryforward$311.0 $226.9 $77.6 $375.2 $206.3 $162.1 
Income taxes refundable to customers, net311.0 156.5 113.6 336.6 168.5 123.8 
Deferred employee benefit costs86.2 45.1 54.7 158.3 84.8 86.8 
Net operating loss carryforward31.7 — — 40.2 — — 
Deferred state income taxes145.6 99.8 38.6 146.9 101.0 38.6 
Accrued liabilities169.7 77.5 61.6 157.6 71.3 56.4 
Other248.1 112.7 58.8 200.0 100.6 59.6 
Total deferred tax assets before
  valuation allowance		1,303.3 718.5 404.9 1,414.8 732.5 527.3 
Valuation allowances(12.8)— — (12.8)— — 
Total deferred tax assets, net1,290.5 718.5 404.9 1,402.0 732.5 527.3 
Deferred tax liabilities:
Plant-related(2,770.9)(1,333.2)(1,016.4)(2,701.1)(1,308.7)(996.7)
Deferred employee benefit costs(8.8)(8.3)— (96.8)(52.9)(43.5)
ARO regulatory assets(144.3)(59.4)(54.3)(133.7)(53.9)(49.9)
Acquisition premium(40.6)(40.6)— (43.9)(43.9)— 
Other regulatory assets(195.6)(41.7)(28.6)(152.1)(53.3)(20.4)
Other(126.9)(79.8)(26.5)(136.3)(87.7)(22.9)
Total deferred tax liabilities(3,287.1)(1,563.0)(1,125.8)(3,263.9)(1,600.4)(1,133.4)
Net deferred income tax liabilities$(1,996.6)$(844.5)$(720.9)$(1,861.9)$(867.9)$(606.1)
Tax Credit Carryforwards
At December 31, 20192022 and 2018,2021, Evergy had $379.0$311.0 million and $333.8$373.6 million, respectively, of federal general business income tax credit carryforwards.  At December 31, 20192022 and 2018,2021, Evergy Kansas Central had $168.8$226.9 million and $134.0$204.7 million, respectively, of federal general business income tax credit carryforwards. At December 31, 20192022 and 2018,2021, Evergy Metro had $203.2$77.6 million and $192.8$162.1 million, respectively, of federal general business income tax credit carryforwards.  The carryforwards for Evergy, Evergy Kansas Central and Evergy Metro relate primarily to wind production tax credits and advanced coal investmentresearch and development tax credits and expire in the years 20202023 to 2039.2042. Approximately $0.4$0.1 million of Evergy's credits are related to Low Income Housing credits that were acquired in Great Plains Energy's acquisition of Evergy Missouri West.  Due to federal limitations on the utilization of income tax attributes acquired in the Evergy Missouri West acquisition, Evergy expects a portion of these credits to expire unutilized and has provided a valuation allowance against $0.3 million of the federal income tax benefit.

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155




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, 20192022 are detailed in the following table.
 Amount of Benefit Amount of Benefit
Year of Origin Evergy Evergy Kansas Central Evergy Metro Year of OriginEvergyEvergy Kansas CentralEvergy Metro
 (millions) (millions)
2000 $7.3
 $7.3
 $—
 
2001 9.7
 9.7
 —
 
2002 0.3
 0.2
 —
 
2003 0.3
 0.2
 —
 
2004 0.3
 0.2
 —
 
2005 0.3
 0.2
 —
 20050.1 — — 
2006 0.3
 0.2
 —
 20060.1 — — 
2007 0.6
 0.6
 —
 20070.1 — — 
2008 39.8
 0.5
 38.9
 
2009 47.7
 0.2
 47.4
 
2010 18.4
 —
 18.2
 
2011 13.3
 —
 13.2
 
2012 14.4
 3.6
 10.7
 
2013 24.3
 11.3
 12.9
 20139.1 4.3 4.8 
2014 24.1
 10.7
 13.0
 201424.1 10.8 13.0 
2015 24.7
 10.9
 13.2
 201524.7 10.9 13.2 
2016 27.1
 11.0
 12.4
 201627.1 11.0 12.4 
2017 43.9
 35.1
 8.2
 201743.9 35.0 8.3 
2018 43.9
 36.3
 7.5
 201843.9 36.3 7.5 
2019 38.3
 30.6
 7.6
 201937.7 30.8 6.7 
2020202035.9 28.4 7.4 
2021202131.9 28.1 3.7 
2022202232.4 31.3 0.6 
 $379.0
 $168.8
 $203.2
 $311.0 $226.9 $77.6 

At December 31, 2019 and 2018, Evergy had $169.9 million and $174.3 million, respectively, of tax benefits related to state income tax credit carryforwards. At December 31, 2019 and 2018, Evergy Kansas Central had $168.5 million and $173.1 million, respectively, of tax benefit related to state income tax credit carryforwards. At December 31, 2019 and 2018, Evergy Metro had $1.2 million of tax benefits related to state income tax credit carryforwards. The state income tax credits relate primarily to the Kansas high performance incentive program tax credits and expire in the years 2024 to 2034.
Net Operating Loss Carryforwards
At December 31, 20192022 and 2018,2021, Evergy had $132.4$25.4 million and $324.2$33.6 million, respectively, of tax benefits related to federal net operating loss (NOL) carryforwards.  At December 31, 2019 and 2018, Evergy Kansas Central had $12.3Approximately $7.1 million and $40.1 million, respectively, of Evergy's tax benefits related to federal NOL carryforwards. At December 31, 2019 and 2018, Evergy Metro had $56.2 million and $107.5 million, respectively, of tax benefits related to federal NOL carryforwards. Approximately $51.1 million at December 31, 20192022 are are tax benefits related to NOLs that were acquired in the Evergy 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 creditsfederal 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 2037.2024.  

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The year of origin of Evergy's Evergy Kansas Central's and Evergy Metro's related tax benefit amounts for federal NOL carryforwards as of December 31, 20192022 are detailed in the following table.
  Amount of Benefit 
Year of Origin Evergy Evergy Kansas Central Evergy Metro 
  (millions) 
2005 $19.1
 $—
 $—
 
2006 32.0
 —
 —
 
2014 2.8
 0.2
 0.9
 
2015 58.8
 —
 55.3
 
2016 4.6
 —
 —
 
2017 15.1
 12.1
 —
 
  $132.4
 $12.3
 $56.2
 

Year of OriginAmount of Benefit
(millions)
2006$25.4 
In addition, Evergy also had deferred tax benefits of $31.0$6.3 million and $59.1 million related to state NOLs as of December 31, 2019 and 2018, respectively.  Evergy Kansas Central had deferred tax benefits of $10.8 million and $20.6$6.6 million related to state NOLs as of December 31, 20192022 and 2018, respectively. Evergy Metro had deferred tax benefits of $5.7 million and $11.7 million related to state NOLs as of December 31, 2019 and 2018,2021, respectively.  The state NOL carryforwards expire in years 20202023 to 2038.2040. Evergy does not expect to utilize $10.1$5.7 million of NOLs before the expiration date of the carryforwards of NOLs in certain states. Therefore, a valuation allowance has been provided against $10.1$5.7 million of state tax benefits.
Alternative Minimum Tax Carryforwards
At December 31, 2019 and 2018, Evergy had $37.9 million and $73.4 million, respectively, of federal alternative minimum tax (AMT) credit carryforwards. At December 31, 2019 and 2018, Evergy Kansas Central had $13.4 million and $26.7 million, respectively, of federal AMT carryforwards.  These credits do not expire and can be used to reduce taxes paid in the future or become refundable starting in 2018.
Valuation Allowances
Evergy is required to assess the ultimate realization of deferred tax assets using a "more likely than not" assessment threshold.  This assessment takes into consideration tax planning strategies within Evergy's control.  As a result of this assessment, Evergy has established a partial valuation allowance for federal and state tax NOL carryforwards and tax credit carryforwards. During 2019, $9.8 million of tax benefit was recorded in continuing operations primarily related
Uncertain Tax Positions
Evergy is considered open to AMT credits and the expiration of certain state NOL carryforwards.
Federal Tax Reform
In December 2017, the U.S. Congress passed and President Donald Trump signed Public Law No. 115-97, commonly referred to as the TCJA. The TCJA represents the first major reform in U.S. income tax law since 1986. Most notably, the TCJA reduces the current top corporate income tax rate from 35% to 21% beginning in 2018, repeals the corporate AMT, makes existing AMT tax credit carryforwards refundable, and changes the deductibility and taxability of certain items, among other things. Prior to the change in tax rates that has been reflected in their 2018 rate cases, Evergy Kansas Central, Evergy Metro and Evergy Missouri West recovered the cost of income taxes in rates from their customers based on the 35% federal corporate income tax rate.
In January 2018, the KCC issued an order requiring certain regulated public utilities, including Evergy Kansas Central and Evergy Metro, to begin recording a regulatory liabilityexamination for the difference between the new federal corporate tax rate and amounts currently collected in rates. In the second quarter of 2018, Evergy Kansas Central and Evergy Metro entered into settlement agreements with KCC staff and other intervenors in which they further agreed to begin deferring any impacts of the TCJA on their excess accumulated deferred income taxes to a regulatory liability. The KCC approved these settlement agreements in June 2018. Evergy Metro and Evergy

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Missouri West had also recorded regulatory liabilities in 2018years after 2009 due to the probability that they would also be required to make similar refunds to their Missouri customers.
The final regulatory treatmentcarryforward of these regulatory liabilities for the refund of tax reform benefits was determined in each of Evergy Kansas Central's, Evergy Metro'snet operating losses and Evergy Missouri West's rate cases with the KCC and MPSC. See Note 5 for more information and the amounts of the regulatory liabilities recorded by the Evergy Companies.

Missouri Tax Reform
On June 1, 2018, the Missouri governor signed Senate Bill (S.B.) 884 into law. Most notably, S.B. 884 reduces the corporategeneral business income tax rate from 6.25%credits. With few exceptions, Evergy is no longer subject to 4.0% beginning in 2020, providesstate and local
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tax examinations by tax authorities for the mandatory useyears before 2018. As of the single sales factor formula and eliminates intercompany transactions between corporations that file a consolidated MissouriDecember 31, 2022, Evergy does not have any significant income tax return.issues under examination.
As a result of the change in the Missouri corporate income tax rate, Evergy Metro revalued and restated its deferred income tax assets and liabilities as of June 1, 2018. Evergy Metro decreased its net deferred income tax liabilities by $46.6 million, primarily consisting of a $28.8 million adjustment for the revaluation and restatement of deferred income tax assets and liabilities included in Missouri jurisdictional rate base and a $9.9 million tax gross-up adjustment for ratemaking purposes. The decrease to Evergy Metro's net deferred income tax liabilities included in Missouri jurisdictional rate base were offset by a corresponding increase in regulatory liabilities. The net regulatory liabilities will be amortized to customers over a period to be determined in a future rate case.
Evergy Metro recognized $15.5 million of income tax benefit primarily related to the difference between Evergy Metro's revaluation of its deferred income tax assets and liabilities for financial reporting purposes and the amount of the revaluation pertaining to Evergy Metro's Missouri jurisdictional rate base.
21. 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 other owners' proportionate share of the costs. 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 842.842-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 1916 years, 1 to 1916 years and 1 to 2610 years, respectively. Leases that have original lease terms of twelve months or less are not recognized on the 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

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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 fair market value and economic life of the leased asset. Operating leases recognize a consistent expense each period over the lease term, while finance leases will result in the separate presentation of interest expense on the lease liability and amortization of the right-of-use asset. Finance leases are treated as operating leases for rate-making purposes and as such, the Evergy Companies defer to a regulatory asset or liability any material differences between expense recognition and the timing of payments in order to match what is being recovered in customer rates.
The Evergy Companies’Companies' lease expense is detailed in the following table.
Evergy202220212020
Finance lease costs(millions)
Amortization of right-of-use assets$5.3 $5.1 $7.7 
Interest on lease liabilities2.4 2.5 3.1 
Operating lease costs21.9 21.8 22.9 
Short-term lease costs4.9 5.9 2.1 
Variable lease costs for renewable purchase power agreements318.0 280.3 296.6 
Total lease costs$352.5 $315.6 $332.4 
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Year Ended December 31, 2019 Evergy Evergy Kansas Central Evergy Metro
Evergy Kansas CentralEvergy Kansas Central202220212020
Finance lease costs (millions)Finance lease costs(millions)
Amortization of right-of-use assets $5.2
 $5.0
 $0.1
Amortization of right-of-use assets$4.7 $4.5 $7.2 
Interest on lease liabilities 2.9
 2.7
 0.1
Interest on lease liabilities2.2 2.4 2.8 
Operating lease costs 23.8
 13.2
 9.2
Operating lease costs12.1 12.9 11.9 
Short-term lease costs 4.0
 1.2
 2.6
Short-term lease costs1.4 1.8 0.5 
Variable lease costs for renewable purchase power agreements 313.0
 130.8
 129.2
Variable lease costs for renewable purchase power agreements155.2 145.8 135.6 
Total lease costs $348.9
 $152.9
 $141.2
Total lease costs$175.6 $167.4 $158.0 
Evergy Metro202220212020
Finance lease costs(millions)
Amortization of right-of-use assets$0.5 $0.4 $0.3 
Interest on lease liabilities0.1 0.1 0.1 
Operating lease costs8.7 9.0 9.3 
Short-term lease costs3.3 3.0 1.5 
Variable lease costs for renewable purchase power agreements122.6 101.0 112.2 
Total lease costs$135.2 $113.5 $123.4 
Supplemental cash flow information related to the Evergy Companies' leases is detailed in the following table.
Year Ended December 31, 2019Evergy Evergy Kansas Central Evergy Metro
Cash paid for amounts included in the measurement of lease liabilities:(millions)
Operating cash flows from operating leases$21.7
 $13.7
 $9.9
Operating cash flows from finance leases2.8
 2.6
 0.1
Financing cash flows from finance leases5.0
 4.8
 0.1
Right-of-use assets obtained in exchange for new operating lease liabilities10.4
 6.1
 2.4
Right-of-use assets obtained in exchange for new finance lease liabilities8.3
 8.3
 —

Evergy202220212020
Cash paid for amounts included in the measurement of lease liabilities:(millions)
Operating cash flows from operating leases$21.1 $20.7 $22.2 
Operating cash flows from finance leases2.4 2.6 2.8 
Financing cash flows from finance leases5.9 5.3 5.6 
Right-of-use assets obtained in exchange for new operating lease liabilities12.2 16.4 6.9 
Right-of-use assets obtained in exchange for new finance lease liabilities7.0 1.4 5.6 

Evergy Kansas Central202220212020
Cash paid for amounts included in the measurement of lease liabilities:(millions)
Operating cash flows from operating leases$11.4 $11.8 $12.9 
Operating cash flows from finance leases2.2 2.4 2.5 
Financing cash flows from finance leases5.1 4.7 5.1 
Right-of-use assets obtained in exchange for new operating lease liabilities12.0 7.1 6.6 
Right-of-use assets obtained in exchange for new finance lease liabilities7.0 1.4 4.0 
Evergy Metro202220212020
Cash paid for amounts included in the measurement of lease liabilities:(millions)
Operating cash flows from operating leases$9.3 $10.4 $10.8 
Operating cash flows from finance leases0.1 0.1 0.1 
Financing cash flows from finance leases0.7 0.5 0.4 
Right-of-use assets obtained in exchange for new operating lease liabilities0.2 9.3 0.3 
Right-of-use assets obtained in exchange for new finance lease liabilities— — 1.6 
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158




Finance Leases
Right-of-use assets for finance leases are included in property, plant and equipment on the Evergy Companies’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 December 31, 2019,2022, are detailed in the following table.
  Evergy Evergy Kansas Central Evergy Metro
  (millions)
2020 $8.1
 $7.6
 $0.2
2021 7.4
 7.0
 0.2
2022 6.7
 6.2
 0.2
2023 5.8
 5.4
 0.2
2024 4.7
 4.3
 0.2
After 2024 46.2
 44.6
 0.9
Total finance lease payments 78.9
 75.1
 1.9
Amounts representing imputed interest (26.1) (25.0) (0.5)
Present value of lease payments 52.8
 50.1
 1.4
Less: current portion (4.9) (4.7) (0.1)
Total long-term obligations under finance leases $47.9
 $45.4
 $1.3
       
Right-of-use assets under finance leases included in property, plant and equipment, net on the consolidated balance sheets $302.8
 $43.5
 $1.4
       
Weighted-average remaining lease term (years) 14.3
 14.6
 8.7
Weighted-average discount rate 5.6% 5.5% 7.6%


EvergyEvergy Kansas CentralEvergy Metro
(millions)
2023$8.0 $7.2 $0.5 
20246.7 6.0 0.5 
20255.8 5.3 0.3 
20265.4 5.0 0.2 
20274.9 4.5 0.2 
After 202736.8 36.4 0.2 
Total finance lease payments67.6 64.4 1.9 
Amounts representing imputed interest(21.1)(20.6)(0.2)
Present value of lease payments46.5 43.8 1.7 
Less: current portion(5.7)(5.1)(0.4)
Total long-term obligations under finance leases$40.8 $38.7 $1.3 
Right-of-use assets under finance leases included in property, plant and equipment, net on the consolidated balance sheets
$315.0 $56.0 $1.7 
Weighted-average remaining lease term (years)12.112.73.3
Weighted-average discount rate5.5 %5.5 %4.8 %
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159




Operating Leases
Right-of-use assets for operating leases are included in other long-term assets on the Evergy Companies’Companies' balance sheets. Lease liabilities for operating leases are included in other current and other long-term liabilities. Lease payments and other supplemental information for operating leases as of December 31, 2019,2022, are detailed in the following table.
  Evergy Evergy Kansas Central Evergy Metro
  (millions)
2020 $20.5
 $11.6
 $10.7
2021 17.0
 8.6
 10.1
2022 14.1
 6.4
 9.3
2023 11.0
 3.8
 8.8
2024 9.2
 2.3
 8.5
After 2024 44.7
 1.5
 82.8
Total operating lease payments 116.5
 34.2
 130.2
Amounts representing imputed interest (18.5) (2.3) (35.4)
Present value of lease payments 98.0
 31.9
 94.8
Less: current portion (15.6) (9.1) (7.0)
Total long-term obligations under operating leases $82.4
 $22.8
 $87.8
       
Right-of-use assets under operating leases included in other assets on the consolidated balance sheets $104.5
 $39.4
 $76.6
       
Weighted-average remaining lease term (years) 8.8
 3.8
 15.8
Weighted-average discount rate 3.8% 3.4% 4.2%

EvergyEvergy Kansas CentralEvergy Metro
(millions)
2023$17.6 $8.6 $8.7 
202415.0 6.7 8.0 
202510.6 4.3 6.5 
20267.9 2.6 5.4 
20276.4 1.2 5.4 
After 202725.0 0.1 24.9 
Total operating lease payments82.5 23.5 58.9 
Amounts representing imputed interest(6.4)(1.3)(5.1)
Present value of lease payments76.1 22.2 53.8 
Less: current portion(16.1)(8.2)(7.7)
Total long-term obligations under operating leases$60.0 $14.0 $46.1 
Right-of-use assets under operating leases included in other assets on the consolidated balance sheets
$77.4 $23.8 $40.2 
Weighted-average remaining lease term (years)7.13.38.7
Weighted-average discount rate2.4 %3.1 %2.2 %
22. QUARTERLY OPERATING RESULTS (UNAUDITED)
  Quarter
Evergy 1st 2nd 3rd 4th
2019 (millions, except per share amounts)
Operating revenue $1,216.9
 $1,221.7
 $1,577.6
 $1,131.6
Operating income 209.6
 271.7
 538.7
 165.8
Net income 103.4
 144.6
 370.9
 66.7
Net income attributable to Evergy, Inc. 99.5
 139.7
 366.8
 63.9
Basic and diluted earnings per common share 0.39
 0.57
 1.56
 0.28
2018        
Operating revenue $600.2
 $893.4
 $1,582.5
 $1,199.8
Operating income 123.5
 126.9
 533.1
 150.1
Net income 62.9
 104.4
 357.6
 21.1
Net income attributable to Evergy, Inc. 60.5
 101.8
 355.0
 18.5
Basic and diluted earnings per common share 0.42
 0.56
 1.32
 0.07

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  Quarter
Evergy Kansas Central 1st 2nd 3rd 4th
2019 (millions)
Operating revenue $596.8
 $585.5
 $749.0
 $576.1
Operating income 124.3
 127.6
 242.4
 102.2
Net income 68.3
 67.2
 168.2
 55.4
Net income attributable to Evergy Kansas Central, Inc. 64.4
 62.3
 164.1
 52.6
2018        
Operating revenue $600.2
 $650.9
 $764.8
 $599.0
Operating income 123.5
 76.1
 256.9
 94.0
Net income 62.9
 77.6
 178.0
 30.6
Net income attributable to Evergy Kansas Central, Inc. 60.5
 75.0
 175.4
 28.0
  Quarter
Evergy Metro 1st 2nd 3rd 4th
2019 (millions)
Operating revenue $425.4
 $437.0
 $568.8
 $375.3
Operating income 56.9
 101.9
 215.5
 52.2
Net income 16.0
 59.4
 151.9
 27.9
2018        
Operating revenue $397.1
 $452.2
 $559.6
 $414.2
Operating income 61.0
 114.7
 189.4
 44.7
Net income (loss) 20.2
 24.6
 120.3
 (2.2)

Quarterly data is subject to seasonal fluctuations with peak periods occurring in the summer months. Evergy's results reflect the results of operations of Evergy Kansas Central for all periods in 2018 and Evergy Metro and Evergy Missouri West beginning with the quarter ended June 30, 2018. See Note 1 for more information.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
EVERGY
Disclosure Controls and Procedures
Evergy carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act).  This evaluation was conducted under the supervision, and with the participation, of Evergy's management, including the chief executive officer and chief financial officer, and Evergy's disclosure committee.  Based upon this evaluation, the chief executive officer and chief financial officer of Evergy have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy were effective at a reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There has been no change in Evergy’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2019,2022, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

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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
160
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, 2019.2022.  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 has concluded that, as of December 31, 2019,2022, 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 Evergy’s internal control over financial reporting, which is included below.


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161




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Evergy, Inc.
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Evergy, Inc. and subsidiaries (the "Company") as of December 31, 2019,2022, 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, 2019,2022, 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, 2019,2022, of the Company and our report dated March 2, 2020,February 23, 2023, expressed an unqualified opinion on those financial statements and financial statement schedules.
Basis for Opinion
The Company'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'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 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  
March 2, 2020

February 23, 2023
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162

EVERGY KANSAS CENTRAL
Disclosure Controls and Procedures
Evergy Kansas Central carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act).  This evaluation was conducted under the supervision, and with the participation, of Evergy Kansas Central's management, including the chief executive officer and chief financial officer, and Evergy Kansas Central's disclosure committee.  Based upon this evaluation, the chief executive officer and chief financial officer of Evergy Kansas Central have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy Kansas Central were effective at a reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There has been no change in Evergy Kansas Central'sCentral’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2019,2022, 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, 2019.2022. 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 has concluded that, as of December 31, 2019,2022, Evergy Kansas Central’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.  
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 Exchange 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 the disclosure controls and procedures of Evergy Metro were effective at a reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There has been no change in Evergy Metro'sMetro’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2019,2022, 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 Metro.  Under the supervision and with the participation of Evergy Metro’s chief executive officer and chief financial officer, management evaluated the effectiveness of Evergy Metro’s internal control over financial reporting as of December 31, 2019.2022.  Management

150163




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 has concluded that, as of December 31, 2019,2022, Evergy Metro’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.  
ITEM 9B.  OTHER INFORMATION
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, www.evergy.com,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 Evergy will be included in an amendment to this Form 10-K, or incorporated by reference to Evergy's definitive proxy statement with respect to its 20202023 Annual Meeting of Shareholders (Proxy Statement) on or before April 29, 2020.28, 2023.
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Evergy
The information required by this item will be included in an amendment to this Form 10-K or will be incorporated by reference from the following sections of the Proxy Statement:
•Information regarding the directors of Evergy will be contained in the Proxy Statement section titled "Election"Proposal I: Election of Directors."
•If applicable, information regarding compliance with Section 16(a) of the Exchange Act will be contained in the Proxy Statement section titled "Security Ownership of Directors, Management and Beneficial Owners."
•Information regarding the Audit Committee of Evergy will be contained in the Proxy Statement section titled "Board"Corporate Governance Matters - Board Structure - Committees of the Board.Audit Committee."
•Information regarding Evergy's Code of Ethics will be contained in the Proxy Statement section titled "Corporate Governance Matters - Corporate Governance Practices - Code of Ethics."
Information required by this item regarding Evergy's executive officers is contained in this report in Part I, Item 1 in "Information About Evergy's Executive Officers."
164
Evergy Kansas Central and Evergy Metro
Other information required by this item regarding Evergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K.

151

ITEM 11. EXECUTIVE COMPENSATION
Evergy
The information required by this item will be included in an amendment to this Form 10-K or will be incorporated by reference to the following sections of the Proxy Statement: "Executive"Proxy Statement Summary and Highlights - Executive Compensation Highlights," "Director Compensation," "Executive Summary of Compensation Matters," "Compensation Discussion and Analysis," "Compensation Committee Report"Report," "Executive Compensation Tables," "Director Independence" and "Director Independence"Other Matters - Compensation Committee Interlocks and Insider Participation."
Evergy Kansas Central and Evergy Metro
Other information required by this item regarding Evergy 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
Evergy
The information required by this item regarding security ownership of the directors and executive officers of Evergy will be included in an amendment to this Form 10-K or will be incorporated by reference to the "Security Ownership of Directors, Management and Beneficial Owners" section of the Proxy Statement.
Evergy Kansas Central and Evergy Metro
The information required by this item regarding Evergy 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, 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 Evergy.
165
The following table provides information, as of December 31, 2019,2022, 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 any defined contribution savings plans.
     Number of securitiesNumber of securities
Number of   remaining availableNumber ofremaining available
securities   for future issuancesecuritiesfor future issuance
to be issued upon Weighted-average under equityto be issued uponWeighted-averageunder equity
exercise of exercise price of compensation plansexercise ofexercise price ofcompensation plans
outstanding options, outstanding options, (excluding securitiesoutstanding options,outstanding options,(excluding securities
warrants and rights warrants and rights reflected in column (a))warrants and rightswarrants and rightsreflected in column (a))
Plan Category(a) (b) (c)Plan Category(a)(b)(c)
Equity compensation plans approved by security holders (1)
       
Equity compensation plans approved by security holders (3)
Equity compensation plans approved by security holders (3)
Evergy Long-Term Incentive Plan 673,320
(2) 
 $—
(3) 
 1,937,404
 Evergy Long-Term Incentive Plan955,804 (1)$— (2)6,766,695 
Equity compensation plans not approved by security holders —
 —
 —
 Equity compensation plans not approved by security holders— — — 
Total 673,320
(2) 
 $—
(3) 
 1,937,404
 Total955,804 (1)$— (2)6,766,695 
(1)Includes 239,495 RSUs with time-based requirements, 546,898 RSUs with performance measures at target performance levels, 18,018 restricted share awards and director deferred share units for 151,393 shares of Evergy common stock outstanding at December 31, 2022.
(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. Long-Term Incentive and Share Award PlanLTISA will not be used for future awards. As of December 31, 2019,2022, there were approximately 87,126 RSUs with only service requirements outstanding under the plan, and approximately 360,368260,392 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.

152

(2)Includes 228,256 performance shares at target performance levels, 146,224 RSUs with only service requirements, 197,250 RSUs with performance measures and director deferred share units for 101,590 shares of Evergy common stock outstanding at December 31, 2019.
(3)The performance shares, RSUs 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
Evergy
The information required by this item will be included in an amendment to this Form 10-K or will be incorporated by reference to the "Director Independence" and "Related"Other Matters - Related Party Transactions" sections of the Proxy Statement.
Evergy Kansas Central and Evergy Metro
The information required by this item regarding Evergy 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
Evergy
The information required by this item regarding the independent auditors of Evergy and its subsidiaries will be included in an amendment to this Form 10-K or will be incorporated by reference to the "Ratification of Appointment of Independent Auditors"Deloitte & Touche LLP" (PCAOB ID No. 34) section of the Proxy Statement.
166
Evergy Kansas Central and Evergy Metro
The Audit Committee of the Evergy Board functions as the Audit Committee of Evergy Kansas Central and Evergy Metro. The following tables set forth the aggregate fees billed by Deloitte & Touche LLP for audit services rendered in connection with the consolidated financial statements and reports for 20192022 and 20182021 and for other services rendered during 20192022 and 20182021 on behalf of Evergy Kansas Central and Evergy Metro, as well as all out-of-pocket costs incurred in connection with these services:
Evergy Kansas Central20222021
Fee Category
Audit Fees$1,801,625 $1,852,798 
Audit-Related Fees25,618 50,734 
Tax Fees42,845 86,098 
All Other Fees— — 
Total Fees$1,870,088 $1,989,630 
Evergy Kansas Central20192018
Fee Category  
Audit Fees$2,044,100
$2,168,000
Audit-Related Fees24,000
40,000
Tax Fees—
—
All Other Fees—
—
Total Fees$2,068,100
$2,208,000
Evergy Metro20192018Evergy Metro20222021
Fee Category Fee Category
Audit Fees$1,503,000
$1,801,396
Audit Fees$1,336,725 $1,293,049 
Audit-Related Fees24,000
23,000
Audit-Related Fees25,618 50,734 
Tax Fees—
34,765
Tax Fees16,669 29,219 
All Other Fees—
—
All Other Fees— — 
Total Fees$1,527,000
$1,859,161
Total Fees$1,379,012 $1,373,002 
Audit Fees: Consists of fees billed for professional services rendered for the audits of the annual consolidated financial statements of Evergy 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

153

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 Evergy Kansas Central and Evergy Metro and are not reported under "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 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. Management provides quarterly updates to the Audit Committee regarding actual fees spent with respect to
167
pre-approved services.  The Chair of the Audit Committee may pre-approve audit, audit-related, tax 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.
Evergy, Inc.Page No.
a.
Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 20182022, 2021 and 20172020
6275
b.
6376
c.
Consolidated Statements of Cash Flows for the years ended December 31, 2019, 20182022, 2021 and 20172020
6578
d.
Consolidated Statements of Changes in Equity for the years ended December 31, 2019, 20182022, 2021 and 20172020
6679
e.
7790
f.
5766
Evergy Kansas Central, Inc.
g.
6780

154

h.
6881
i.
7083
j.
7184
k.
7790
l.
6069
Evergy Metro, Inc.
m.
Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 20182022, 2021 and 20172020
7285
n.
7386
o.
Consolidated Statements of Cash Flows for the years ended December 31, 2019, 20182022, 2021 and 20172020
7588
p.
Consolidated Statements of Changes in Equity for the years ended December 31, 2019, 20182022, 2021 and 20172020
7689
168
Table of Contents
q.
Notes to Consolidated Financial Statements
7790
r.
Report of Independent Registered Public Accounting Firm
6172
Financial Statement Schedules
Evergy, Inc.
Evergy, Inc.
a.
169183
b.
173187
Evergy Kansas Central, Inc.
c.
173187
Evergy Metro, Inc.
d.
174188

155
169
Table of Contents




Exhibits 
Exhibit
Number 
 
Description of Document
 
Registrant
2.1*∆Evergy
Evergy Kansas Central
2.2*∆Evergy
Evergy Kansas Central
3.1*Evergy
3.2*Evergy
3.3*Evergy Metro
3.4*Evergy Metro
3.5*
Evergy Kansas Central

3.6*
Evergy Kansas Central

4.1*Evergy
4.2*Evergy

156

4.3*Evergy
170
Table of Contents
4.4*Evergy
4.5*Evergy
4.6*Evergy
4.7*Evergy
4.8*Evergy
4.9*Evergy
4.10*Evergy
4.11*Evergy
4.12*Evergy

157

4.13
4.13*Evergy
171
Table of Contents
4.14*Evergy
4.15*Evergy
Evergy Metro
4.16*Evergy
Evergy Metro
4.17*Evergy
Evergy Metro
4.18*Evergy
Evergy Metro
4.19*Evergy
Evergy Metro
4.20*Evergy
Evergy Metro
4.21*Evergy
Evergy Metro

158

4.22*Evergy
Evergy Metro
172
Table of Contents
4.23*Evergy
Evergy Metro
4.24*Evergy
Evergy Metro
4.25*Evergy
Evergy Metro
4.26*Evergy
Evergy Metro
4.264.27*Evergy
Evergy Metro
4.274.28*Evergy
Evergy Metro
4.284.29*Evergy
Evergy Metro
4.294.30*Evergy
Evergy Metro
4.304.31*Evergy
Evergy Metro
4.314.32*Evergy
Evergy Metro

159

173
Table of Contents
4.32
4.33*Evergy
Evergy Metro
4.334.34*Evergy
Evergy Metro
4.344.35*Evergy
Evergy Metro
4.354.36*Evergy
Evergy Metro
4.364.37*Evergy
Evergy Metro
4.374.38*Evergy
Evergy Metro
4.384.39*Evergy
4.394.40*Evergy
4.404.41*Evergy
174
Table of Contents
4.42*Evergy
Evergy Kansas Central

160

4.414.43*
*

First Supplemental Indenture, dated July 1, 1939, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.36 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).
Evergy
Evergy Kansas Central
4.424.44*Evergy
Evergy Kansas Central
4.434.45*Evergy
Evergy Kansas Central
4.444.46*Evergy
Evergy Kansas Central
4.454.47*Evergy
Evergy Kansas Central
4.464.48*Evergy
Evergy Kansas Central
4.474.49*Evergy
Evergy Kansas Central
4.484.50*Evergy
Evergy Kansas Central
175
Table of Contents
4.494.51*Evergy
Evergy Kansas Central
4.504.52*Evergy
Evergy Kansas Central

161

4.53
4.51*Evergy
Evergy Kansas Central
4.524.54*Evergy
Evergy Kansas Central
4.534.55*Evergy
Evergy Kansas Central
4.544.56*Evergy
Evergy Kansas Central
4.554.57*Evergy
Evergy Kansas Central
4.564.58*Evergy
Evergy Kansas Central
4.574.59*Evergy
Evergy Kansas Central
176
Table of Contents
4.584.60*Evergy
Evergy Kansas Central
4.594.61*Evergy
Evergy Kansas Central

162

4.604.62*Evergy
Evergy Kansas Central
4.63*Evergy
Evergy Kansas Central
4.614.64*Evergy
Evergy Kansas Central
4.624.65*
Evergy

Evergy Kansas Central

Evergy Metro
10.14.66*+Evergy
4.67*Evergy
10.1*+Evergy
Evergy Metro
10.2*+
Evergy, Inc. (successor to Great Plains Energy Incorporated) Long-Term Incentive Plan Awards Standards and Performance Criteria Effective as of January 1, 2016 (Exhibit 10.3 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2016).
Evergy
Evergy Metro
10.3*+
Evergy, Inc. (successor to Great Plains Energy Incorporated) Long-Term Incentive Plan Awards Standards and Performance Criteria Effective January 1, 2017 (Exhibit 10.3 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2017).
Evergy
Evergy Metro
10.4*+
Evergy, Inc. (successor to Great Plains Energy Incorporated) Long-Term Incentive Plan Awards Standards and Performance Criteria Effective January 1, 2018 (Exhibit 10.3 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2018).
Evergy
Evergy Metro
10.5*+
Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2016 three-year Performance Share Agreement (Exhibit 10.1 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2016).
Evergy
Evergy Metro
10.6*+
Form of Amendment to Appendix A to Evergy, Inc. (formerly Great Plains Energy Incorporated) 2016 three-year Performance Share Agreement (Exhibit 10.6 to Evergy's Form 10-K for the fiscal year ended December 31, 2018).
Evergy
Evergy Metro
10.7*+
Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2016 Restricted Stock Agreement (Exhibit 10.2 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2016).
Evergy
Evergy Metro
10.8*+
Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2017 three-year Performance Share Agreement (Exhibit 10.1 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2017).
Evergy
Evergy Metro

163

10.2
10.9*+Evergy
Evergy Metro
10.10*+
Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2017 Restricted Stock Agreement (Exhibit 10.2 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2017).
Evergy
Evergy Metro
10.11*+
Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2018 three-year Performance Share Agreement (Exhibit 10.1 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2018).
Evergy
Evergy Metro
10.12*+
Form of Amendment to Appendix A to Evergy, Inc. (successor to Great Plains Energy Incorporated) 2018 three-year Performance Share Agreement (Exhibit 10.12 to Evergy's Form 10-K for the fiscal year ended December 31, 2018).
Evergy
Evergy Metro
10.13*+
Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2018 Restricted Stock Agreement (Exhibit 10.2 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2018).
Evergy
Evergy Metro
10.14*+
Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2018 Restricted Stock Unit Agreement (Exhibit 10.1 to Great Plains Energy's Form 8-K filed on June 4, 2018).
Evergy
Evergy Metro
10.15*+
Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2018 Cash Retention Payment Agreement (Exhibit 10.2 to Great Plains Energy's Form 8-K filed on June 4, 2018).
Evergy
Evergy Metro
10.16*+
Evergy, Inc. Long-Term Incentive Plan (formerly the Great Plains Energy Incorporated Long-Term Incentive Plan, as amended), effective June 4, 2018 (Exhibit 99.1 to Evergy's Registration Statement on Form S-8 filed on June 15, 2018 (File No. 333-225673)).
Evergy
Evergy Metro

Evergy Kansas Central
177
Table of Contents
10.1710.3*+Evergy
Evergy Metro
Evergy Kansas Central
10.4*+Evergy
Evergy Metro
Evergy Kansas Central
10.5*+Evergy
Evergy Metro
Evergy Kansas Central
10.6*+Evergy
Evergy Metro
Evergy Kansas Central
10.7*+Evergy
Evergy Metro
Evergy Kansas Central
10.8*+Evergy
Evergy Metro
Evergy Kansas Central
10.9+Evergy
Evergy Metro
Evergy Kansas Central
10.10+Evergy
Evergy Metro
Evergy Kansas Central
10.11*+Evergy
Evergy Metro
Evergy Kansas Central
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
178
Table of Contents
10.16*+
Evergy
Evergy Metro

Evergy Kansas Central
10.18*+
Form of Evergy, Inc. 2019 Time-Based Restricted Stock Unit Agreement (Exhibit 10.2 to Evergy's Form 8-K filed on February 15, 2019).
Evergy
Evergy Metro
Evergy Kansas Central
10.19+
Form of Evergy, Inc. 2020 Performance-Based Restricted Stock Unit Agreement.
Evergy
Evergy Metro
Evergy Kansas Central

164

10.2010.17*+
Evergy
Evergy Metro
Evergy Kansas Central
10.21*+
Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Amended and Restated Long-Term Incentive and Share Award Plan, effective January 1, 2016 (Appendix B to Evergy Kansas Central's Proxy Statement filed on April 1, 2016).
Evergy
Evergy Kansas Central
10.2210.18*+Evergy
Evergy Kansas Central
10.23*+
Evergy, Inc. 2019 Annual Incentive Plan (Exhibit 10.5 to Evergy's Form 10-Q for the quarter ended March 31, 2019).
Evergy
Evergy Metro
Evergy Kansas Central
10.24+
Evergy, Inc. 2020 Annual Incentive Plan.
Evergy
Evergy Metro
Evergy Kansas Central
10.25*+
Form of Indemnification Agreement with Evergy, Inc. officers and directors (Exhibit 10.2 to Evergy's Form 10-Q for the quarter ended September 30, 2018).
Evergy
Evergy Metro
Evergy Kansas Central
10.26*+
Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) Change in Control Severance Agreement (Exhibit 10.1.e to Great Plains Energy's Form 10-Q for the quarter ended September 30, 2006).
Evergy
Evergy Metro
10.27*+
Form of Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Amended and Restated Change in Control Agreement (Exhibit 10(g) to Evergy Kansas Central's Form 10-K for the period ended December 31, 2015).
Evergy
Evergy Kansas Central
10.2810.19*+
Evergy
Evergy Metro

Evergy Kansas Central
10.2910.20*+Evergy
10.3010.21*+
Evergy
Evergy Metro

Evergy Kansas Central
10.3110.22*+Evergy
Evergy Kansas Central

165

10.3210.23*+Evergy
Evergy Kansas Central
10.3310.24*+Evergy
Evergy Kansas Central
10.3410.25*+
Evergy
Evergy Metro

Evergy Kansas Central
10.3510.26*+Evergy
Evergy Metro
Evergy Kansas Central
10.27*+Evergy
Evergy Metro
Evergy Kansas Central
179
Table of Contents
10.3610.28*
Amended and Restated Credit Agreement, dated September 18, 2018,August 31, 2021, by and among Evergy, Inc., Evergy Metro, inc. (formerly Kansas City Power & Light Company), Evergy Missouri West, Inc. (formerly KCP&L Greater Missouri Operations Company), Evergy Metro, Inc. (formerly Kansas City Power & Light Company), Evergy Kansas Central, Inc. (formerrly(formerly Westar Energy, Inc.), as Borrowers, the several lenders from timereferred to time parties thereto,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 the other issuing lendersU.S. Bank National Association as Co-Syndication Agents and agents party theretoIssuing Lenders, Wells Fargo Securities, LLC, as Sustainability Structuring Agent, and Wells Fargo Securities, LLC, Citigroup Global Markets Inc., BOFA Securities, Inc., MUFG Bank, Ltd., TD Securities (USA) LLC and U.S. Bank National Association as Joint Lead Arrangers and Joint Bookrunners. (Exhibit 10.1 to Evergy's Form 8-K filed September 18, 2018)on August 31, 2021).
Evergy
Evergy Metro

Evergy Kansas Central
10.3710.29*
Evergy
Evergy Metro
Evergy Kansas Central
10.38*
Term Loan Agreement, dated March 15, 2019,of February 25, 2022, by and among Evergy, Inc., Wells Fargo Bank, National Association, as Administrative Agent, and the lenders referred to thereintherein. (Exhibit 10.1 to Evergy's Form 8-K on March 15, 2019)February 28, 2022).
Evergy
10.3910.30*Evergy
21.1
List of Subsidiaries.
Evergy
Evergy Kansas Central
23.1
Consent of Independent Registered Public Accounting Firm.
Evergy

166

10.31
23.2*Evergy Metro
23.3
Consent of Independent Registered Public Accounting Firm.
Evergy Kansas Central
24.1
Powers of Attorney.
Evergy
24.2
Powers of Attorney.
Evergy Kansas Central
24.3
Powers of Attorney.
Evergy Metro
31.1
Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham.
Evergy
31.2
Rule 13a-14(a)/15d-14(a) Certification of Anthony D. Somma.
Evergy
31.3
Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham.
Evergy Metro
31.4
Rule 13a-14(a)/15d-14(a) Certification of Anthony D. Somma.
Evergy Metro
31.5
Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham.
Evergy Kansas Central
31.6
Rule 13a-14(a)/15d-14(a) Certification of Anthony D. Somma.
Evergy Kansas Central
32.1**
Section 1350 Certifications.
Evergy
32.2**
Section 1350 Certifications.
Evergy Metro
32.3**
Section 1350 Certifications.
Evergy Kansas Central
101.INS***XBRL Instance Document.n/a
101.SCHInline XBRL Taxonomy Extension Schema Document.
Evergy
Evergy Metro
Evergy Kansas Central
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document.
Evergy
Evergy Metro
Evergy Kansas Central
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document.
Evergy
Evergy Metro
Evergy Kansas Central
101.LABInline XBRL Taxonomy Extension Labels Linkbase Document.
Evergy
Evergy Metro
Evergy Kansas Central

167

101.PRE10.32*Evergy
10.33*Evergy
10.34*Evergy
10.35*Evergy
180
Table of Contents
10.36*Evergy
10.37*Evergy
10.38*Evergy
10.39*Evergy
21.1Evergy
Evergy Kansas Central
23.1Evergy
23.2Evergy Metro
23.3Evergy Kansas Central
24.1Evergy
24.2Evergy Kansas Central
24.3Evergy Metro
31.1Evergy
31.2Evergy
31.3Evergy Metro
31.4Evergy Metro
31.5Evergy Kansas Central
31.6Evergy Kansas Central
32.1**Evergy
32.2**Evergy Metro
32.3**Evergy Kansas Central
181
Table of Contents
101.INS***XBRL Instance Document.n/a
101.SCHInline XBRL Taxonomy Extension Schema Document.Evergy
Evergy Metro
Evergy Kansas Central
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document.Evergy
Evergy Metro
Evergy Kansas Central
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document.Evergy
Evergy Metro
Evergy Kansas Central
101.LABInline XBRL Taxonomy Extension Labels Linkbase Document.Evergy
Evergy Metro
Evergy Kansas Central
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.
Evergy
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.
** Furnished and shall not be deemed filed for the purpose of Section 18 of the Exchange 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.
∆ Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K, and Evergy will furnish the omitted schedules to the SEC upon request.

Copies of any of the exhibits filed with the SEC in connection with this report may be obtained from the 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.

182
168

Schedule I - Parent Company Financial Statements
EVERGY, INC.EVERGY, INC.EVERGY, INC.
Statements of Income of Parent Company
Statements of Comprehensive Income of Parent CompanyStatements of Comprehensive Income of Parent Company
   
2019 Period from June 4, 2018 through
December 31, 2018		202220212020
OPERATING EXPENSES: (millions)OPERATING EXPENSES: (millions)
Operating and maintenance$19.4
 $54.6
Operating and maintenance$11.5 $13.2 $39.3 
Total Operating Expenses19.4
 54.6
Total Operating Expenses11.5 13.2 39.3 
INCOME FROM OPERATIONS(19.4) (54.6)INCOME FROM OPERATIONS(11.5)(13.2)(39.3)
OTHER INCOME (EXPENSE)   OTHER INCOME (EXPENSE)
Equity in earnings from subsidiaries698.2
 364.7
Equity in earnings from subsidiaries816.1 932.9 683.4 
Investment earnings32.7
 26.3
Investment earnings7.1 19.2 32.1 
Other expense(0.1) (2.6)Other expense(8.3)(8.3)(0.1)
Total Other Income, Net730.8
 388.4
Total Other Income, Net814.9 943.8 715.4 
Interest expense60.7
 19.6
Interest expense73.9 74.3 86.3 
INCOME BEFORE INCOME TAXES650.7
 314.2
INCOME BEFORE INCOME TAXES729.5 856.3 589.8 
Income tax benefit(13.7) (10.7)Income tax benefit(19.1)(16.5)(22.7)
NET INCOME$664.4
 $324.9
NET INCOME$748.6 $872.8 $612.5 
COMPREHENSIVE INCOME   COMPREHENSIVE INCOME
NET INCOME$664.4
 $324.9
NET INCOME$748.6 $872.8 $612.5 
OTHER COMPREHENSIVE INCOME
 
OTHER COMPREHENSIVE INCOME
Derivative hedging activity

 

Derivative hedging activity
Loss on derivative hedging instruments(64.4) (5.4)
Income tax benefit16.5
 1.4
Net loss on derivative hedging instruments(47.9) (4.0)
Reclassification to expenses, net of taxes1.5
 —
Reclassification to expenses, net of taxes5.5 5.5 3.0 
Derivative hedging activity, net of tax(46.4) (4.0)Derivative hedging activity, net of tax5.5 5.5 3.0 
Other comprehensive income from subsidiaries, net(0.6) 1.0
Total other comprehensive loss(47.0) (3.0)
Other comprehensive income (loss) from subsidiaries, netOther comprehensive income (loss) from subsidiaries, net4.0 (0.1)(2.4)
Total other comprehensive incomeTotal other comprehensive income9.5 5.4 0.6 
COMPREHENSIVE INCOME$617.4
 $321.9
COMPREHENSIVE INCOME$758.1 $878.2 $613.1 
The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

183
169

EVERGY, INC.EVERGY, INC.EVERGY, INC.
Balance Sheets of Parent CompanyBalance Sheets of Parent CompanyBalance Sheets of Parent Company
December 31December 31
20192018 20222021
ASSETS(millions, except share amounts)ASSETS(millions, except share amounts)
CURRENT ASSETS:   CURRENT ASSETS:  
Cash and cash equivalents$11.6
 $107.1
Cash and cash equivalents$0.4 $7.5 
Accounts receivable from subsidiaries24.5
 35.2
Accounts receivable from subsidiaries65.0 72.2 
Notes receivable from subsidiaries2.0
 2.0
Notes receivable from subsidiaries31.5 289.5 
Income taxes receivable8.0
 0.2
Income taxes receivable5.8 14.8 
Prepaid expenses and other assets2.4
 2.0
Prepaid expenses and other assets2.1 2.0 
Total Current Assets48.5
 146.5
Total Current Assets104.8 386.0 
OTHER ASSETS: 
  
OTHER ASSETS:  
Investment in subsidiaries10,023.1
 9,785.6
Investment in subsidiaries11,367.3 10,992.1 
Note receivable from subsidiaries634.9
 634.9
Deferred income taxes34.2
 36.3
Deferred income taxes18.5 19.0 
Other0.9
 1.1
Other0.8 1.2 
Total Other Assets10,693.1
 10,457.9
Total Other Assets11,386.6 11,012.3 
TOTAL ASSETS$10,741.6
 $10,604.4
TOTAL ASSETS$11,491.4 $11,398.3 
LIABILITIES AND EQUITY   LIABILITIES AND EQUITY
CURRENT LIABILITIES:   CURRENT LIABILITIES:  
Notes payable$20.0
 $—
Current maturities of long-term debtCurrent maturities of long-term debt$— $287.5 
Notes payable and commercial paperNotes payable and commercial paper— 358.0 
Accounts payable to subsidiaries13.1
 28.1
Accounts payable to subsidiaries19.8 22.3 
Accrued interest14.6
 2.1
Accrued interest12.6 12.4 
Derivative instruments—
 5.4
Other8.1
 6.3
Other7.3 8.1 
Total Current Liabilities55.8
 41.9
Total Current Liabilities39.7 688.3 
LONG-TERM LIABILITIES:   LONG-TERM LIABILITIES:
Long-term debt, net2,223.7
 638.1
Long-term debt, net2,092.0 1,590.1 
Other16.9
 17.6
Other19.4 14.9 
Total Long-Term Liabilities2,240.6
 655.7
Total Long-Term Liabilities2,111.4 1,605.0 
Commitments and Contingencies (Note 15)


 


Commitments and Contingencies (Note 15)
EQUITY: 
  
EQUITY:  
Evergy, Inc. Shareholders' Equity: 
  
Evergy, Inc. Shareholders' Equity:  
Common stock - 600,000,000 shares authorized, without par value, 226,641,443 shares issued7,053.7
 8,668.3
Common stock - 600,000,000 shares authorized, without par value, 229,546,105 and 229,299,900 shares issuedCommon stock - 600,000,000 shares authorized, without par value, 229,546,105 and 229,299,900 shares issued7,202.9 7,188.7 
Retained earnings1,441.5
 1,241.5
Retained earnings2,171.9 1,960.3 
Accumulated other comprehensive loss(50.0) (3.0)Accumulated other comprehensive loss(34.5)(44.0)
Total shareholders' equity8,445.2
 9,906.8
Total Shareholders' EquityTotal Shareholders' Equity9,340.3 9,105.0 
TOTAL LIABILITIES AND EQUITY$10,741.6
 10,604.4
TOTAL LIABILITIES AND EQUITY$11,491.4 11,398.3 
The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

184
170

EVERGY, INC.EVERGY, INC.EVERGY, INC.
Statements of Cash Flows of Parent CompanyStatements of Cash Flows of Parent CompanyStatements of Cash Flows of Parent Company
   
2019 Period from June 4, 2018 through
December 31, 2018		202220212020
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$664.4
 $324.9
Net income$748.6 $872.8 $612.5 
Adjustments to reconcile income to net cash from operating activities:   Adjustments to reconcile income to net cash from operating activities:
Non-cash compensation16.3
 10.0
Non-cash compensation18.8 15.6 16.0 
Net deferred income taxes and credits21.4
 (6.3)Net deferred income taxes and credits(1.0)— 9.6 
Equity in earnings from subsidiaries(698.2) (364.7)Equity in earnings from subsidiaries(816.1)(932.9)(683.4)
Other2.1
 —
Other7.1 7.0 7.0 
Changes in working capital items:   Changes in working capital items:
Accounts receivable from subsidiaries8.9
 (8.5)Accounts receivable from subsidiaries7.2 (18.2)(30.0)
Income taxes receivable(7.8) (0.2)Income taxes receivable9.0 (7.5)0.6 
Prepaid expenses and other current assets(0.1) (1.0)Prepaid expenses and other current assets— — 0.8 
Accounts payable to subsidiaries(15.0) 4.7
Accounts payable to subsidiaries(2.5)3.9 5.0 
Accrued taxes—
 (35.2)
Accrued interest12.5
 (13.6)Accrued interest0.2 (1.4)(0.7)
Other current liabilities1.7
 2.4
Other current liabilities(0.8)(3.2)2.9 
Cash dividends from subsidiaries460.0
 236.0
Cash dividends from subsidiaries645.0 290.0 355.0 
Changes in other assets0.2
 0.1
Changes in other assets0.3 0.1 0.3 
Changes in other liabilities(3.5) 20.0
Changes in other liabilities5.5 4.8 (3.7)
Cash Flows from Operating Activities462.9
 168.6
Cash Flows from Operating Activities621.3 231.0 291.9 
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:   CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Cash acquired from the merger with Great Plains Energy—
 1,142.2
Proceeds from interest rate swap—
 140.6
Repayment of intercompany noteRepayment of intercompany note287.5 347.4 — 
Net money pool lendingNet money pool lending(29.5)— — 
Equity contributionEquity contribution(200.0)— — 
Cash Flows from Investing Activities—
 1,282.8
Cash Flows from Investing Activities58.0 347.4 — 
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:   CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short term debt, net20.0
 (56.1)Short term debt, net(358.0)157.1 180.0 
Proceeds from long-term debt1,585.0
 —
Payment for settlement of interest rate swap accounted for as a cash flow hedge(69.8) —
Proceeds from term loan facilityProceeds from term loan facility500.0 — — 
Retirements of long-term debtRetirements of long-term debt(287.5)(350.0)— 
Cash dividends paid(462.5) (245.9)Cash dividends paid(534.8)(497.9)(465.0)
Repurchase of common stock(1,628.7) (1,042.3)
Issuance of common stockIssuance of common stock— 112.5 — 
Other financing activities(2.4) —
Other financing activities(6.1)(3.6)(7.5)
Cash Flows used in Financing Activities(558.4) (1,344.3)Cash Flows used in Financing Activities(686.4)(581.9)(292.5)
NET CHANGE IN CASH AND CASH EQUIVALENTS(95.5) 107.1
NET CHANGE IN CASH AND CASH EQUIVALENTS(7.1)(3.5)(0.6)
CASH AND CASH EQUIVALENTS:   CASH AND CASH EQUIVALENTS:
Beginning of period107.1
 —
Beginning of period7.5 11.0 11.6 
End of period$11.6
 $107.1
End of period$0.4 $7.5 $11.0 
The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

185
171

EVERGY, INC.
NOTES TO FINANCIAL STATEMENTS OF PARENT COMPANY
The Evergy, Inc. Notes to Consolidated Financial Statements in Part II, Item 8 should be read in conjunction with the Evergy, Inc. Parent Company Financial Statements.
1. ORGANIZATION AND BASIS OF PRESENTATION
The Evergy, Inc. Parent Company Financial Statements have been prepared to comply 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 closing of the merger transactions, Monarch Energy changed its name to Evergy, Inc. and did 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, including Evergy Metro and Evergy Missouri West.
See Note 2 to the consolidated financial statements for additional information regarding the merger.
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 1312 to the consolidated financial statements for additional information on Evergy, Inc.'s long-term debt.
3. GUARANTEES
See Note 16 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 $460.0$645.0 million for the year ended December 31, 2019 and $236.02022, $290.0 million for the period from June 4, 2018 throughyear ended December 31, 2018.2021 and $355.0 million for the year ended December 31, 2020. See Note 18 to the consolidated financial statements for information regarding the dividend restrictions of Evergy, Inc. and its subsidiaries.

186
172

Schedule II - Valuation and Qualifying Accounts and Reserves
Evergy, Inc.Evergy, Inc.Evergy, Inc.
Valuation and Qualifying AccountsValuation and Qualifying AccountsValuation and Qualifying Accounts
Years Ended December 31, 2019, 2018 and 2017
Years Ended December 31, 2022, 2021 and 2020Years Ended December 31, 2022, 2021 and 2020
           
   Additions     Additions
 Charged Charged
Balance AtTo CostsCharged BalanceBalance AtTo CostsChargedBalance
BeginningAndTo Other At EndBeginningAndTo OtherAt End
DescriptionOf PeriodExpensesAccountsDeductionsOf PeriodDescriptionOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2019(millions)
Year Ended December 31, 2022Year Ended December 31, 2022(millions)
Allowance for uncollectible accounts $9.2
 $27.2
 $12.4
(a) 
 $38.3
(b) 
 $10.5
 Allowance for uncollectible accounts$32.9 $16.1 $11.2 (a)$28.8 (b)$31.4 
Tax valuation allowance 27.3
 0.6
 —
 10.4
(c) 
 17.5
 Tax valuation allowance12.8 0.1 — 0.1 (c)12.8 
Year Ended December 31, 2018           
Year Ended December 31, 2021Year Ended December 31, 2021
Allowance for uncollectible accounts $6.7
 $20.7
 $16.9
(e) 
 $35.1
(b) 
 $9.2
 Allowance for uncollectible accounts$19.3 $28.0 $12.0 (a)$26.4 (b)$32.9 
Tax valuation allowance —
 2.2
 26.8
(d) 
 1.7
(c) 
 27.3
 Tax valuation allowance14.4 — — 

1.6 (c)12.8 
Year Ended December 31, 2017           
Year Ended December 31, 2020Year Ended December 31, 2020
Allowance for uncollectible accounts $6.7
 $10.5
 $7.0
(a) 
 $17.5
(b) 
 $6.7
 Allowance for uncollectible accounts$10.5 $24.9 $12.5 (e)$28.6 (b)$19.3 
Tax valuation allowanceTax valuation allowance17.5 — — (d)3.1 (c)14.4 
(a) Recoveries.
(b) Uncollectible accounts charged off.
(c) Reversal of tax valuation allowance.
(d) Primarily represents the addition of Great Plains Energy's allowance as of the date of the merger.
Evergy Kansas Central, Inc.
Valuation and Qualifying Accounts
Years Ended December 31, 2022, 2021 and 2020
Additions
Charged
Balance AtTo CostsChargedBalance
BeginningAndTo OtherAt End
DescriptionOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2022(millions)
Allowance for uncollectible accounts$13.0 $13.1 $4.5 (a)$13.7 (b)$16.9 
Year Ended December 31, 2021
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 
(e) Recoveries and the addition of Great Plains Energy's allowance as of the date of the merger.
Evergy Kansas Central, Inc.
Valuation and Qualifying Accounts
Years Ended December 31, 2019, 2018 and 2017
                
    Additions      
  Charged   
 Balance AtTo CostsCharged Balance
 BeginningAndTo Other At End
DescriptionOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2019(millions)
Allowance for uncollectible accounts $3.9
  $7.2
  $3.4
(a) 
 $10.7
(b) 
 $3.8
 
Tax valuation allowance 1.7
  —
  —
  1.7
(c) 
 —
 
Year Ended December 31, 2018               
Allowance for uncollectible accounts $6.7
  $9.0
  $7.4
(a) 
 $19.2
(b)��
 $3.9
 
Tax valuation allowance —
  1.7
  —
  —
  1.7
 
Year Ended December 31, 2017               
Allowance for uncollectible accounts $6.7
  $10.5
  $7.0
(a) 
 $17.5
(b) 
 $6.7
 
(a) Recoveries.
(b) Uncollectible accounts charged off.
(c) Reversal of tax valuation allowance.
187

173

Evergy Metro, Inc.Evergy Metro, Inc.Evergy Metro, Inc.
Valuation and Qualifying AccountsValuation and Qualifying AccountsValuation and Qualifying Accounts
Years Ended December 31, 2019, 2018 and 2017
Years Ended December 31, 2022, 2021 and 2020Years Ended December 31, 2022, 2021 and 2020
           
   Additions     Additions
 Charged Charged
Balance AtTo CostsCharged BalanceBalance AtTo CostsChargedBalance
BeginningAndTo Other At EndBeginningAndTo OtherAt End
DescriptionOf PeriodExpensesAccountsDeductionsOf PeriodDescriptionOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2019(millions)
Year Ended December 31, 2022Year Ended December 31, 2022(millions)
Allowance for uncollectible accounts $3.8
 $13.7
 $6.3
(a) 
 $19.2
(b) 
 $4.6
 Allowance for uncollectible accounts$13.3 $1.7 $4.5 (a)$10.2 (b)$9.3 
Year Ended December 31, 2018         
 
Year Ended December 31, 2021Year Ended December 31, 2021
Allowance for uncollectible accounts $2.2
 $13.1
 $4.4
(a) 
 $15.9
(b) 
 $3.8
 Allowance for uncollectible accounts$8.1 $10.5 $5.3 (a)$10.6 (b)$13.3 
Year Ended December 31, 2017           
Year Ended December 31, 2020Year Ended December 31, 2020
Allowance for uncollectible accounts $1.8
 $7.5
 $5.6
(a) 
 $12.7
(b) 
 $2.2
 Allowance for uncollectible accounts$4.6 $9.0 $6.9 (a)$12.4 (b)$8.1 
Tax valuation allowance —
 1.2
 —
 1.2
(c) 
 —
 
(a) Recoveries.
(b) Uncollectible accounts charged off.
(c) Reversal of tax valuation allowance.
188

174

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.
EVERGY, INC.
Date: March 2, 2020February 23, 2023
By: /s/ Terry BasshamDavid Campbell
Terry BasshamDavid 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/ Terry BasshamDavid CampbellDirector, President and Chief Executive Officer)March 2, 2020February 23, 2023
Terry BasshamDavid Campbell(Principal Executive Officer))
)
/s/ Anthony D. SommaKirkland B. AndrewsExecutive Vice President and Chief Financial Officer)
Anthony D. SommaKirkland B. Andrews(Principal Financial Officer))
)
/s/ Steven P. BusserVice President - Risk Management and ControllerChief Accounting Officer)
Steven P. Busser(Principal Accounting Officer))
)
Mark A. Ruelle*ChairmanChair of the Board of Directors)
)
Mollie Hale Carter*Director)
)
Charles Q. Chandler IV*Director)
)
Gary D. Forsee*Director)
)
Scott D. Grimes*Director)
)
Richard L. Hawley*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)
)
John J. Sherman*James Scarola*Director)
)
S. Carl Soderstrom Jr.*Director)
)
C. John Arthur Stall*Wilder*Director)
*By    /s/ Terry BasshamDavid Campbell
Terry Bassham    David Campbell
Attorney-in-Fact*


175
189




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.
EVERGY KANSAS CENTRAL, INC.
Date: March 2, 2020February 23, 2023
By: /s/ Terry BasshamDavid Campbell
Terry BasshamDavid 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/ Terry BasshamDavid CampbellDirector, President and Chief Executive Officer)March 2, 2020February 23, 2023
Terry BasshamDavid Campbell(Principal Executive Officer))
)
/s/ Anthony D. SommaKirkland B. AndrewsExecutive Vice President and Chief Financial Officer)
Anthony D. SommaKirkland B. Andrews(Principal Financial Officer))
)
/s/ Steven P. BusserVice President - Risk Management and ControllerChief Accounting Officer)
Steven P. Busser(Principal Accounting Officer))
)
Mark A. Ruelle*ChairmanChair of the Board of Directors)
)
Mollie Hale Carter*Director)
)
Charles Q. Chandler IV*Director)
)
Gary D. Forsee*Director)
)
Scott D. Grimes*Director)
)
Richard L. Hawley*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)
)
John J. Sherman*James Scarola*Director)
)
S. Carl Soderstrom Jr.*Director)
)
C. John Arthur Stall*Wilder*Director)
*By    /s/ Terry BasshamDavid Campbell
Terry Bassham    David Campbell
Attorney-in-Fact*

176190




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.
EVERGY METRO, INC.
Date: March 2, 2020February 23, 2023
By: /s/ Terry BasshamDavid Campbell
Terry BasshamDavid 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/ Terry BasshamDavid CampbellDirector, President and Chief Executive Officer)March 2, 2020February 23, 2023
Terry BasshamDavid Campbell(Principal Executive Officer))
)
/s/ Anthony D. SommaKirkland B. AndrewsExecutive Vice President and Chief Financial Officer)
Anthony D. SommaKirkland B. Andrews(Principal Financial Officer))
)
/s/ Steven P. BusserVice President - Risk Management and ControllerChief Accounting Officer)
Steven P. Busser(Principal Accounting Officer))
)
Mark A. Ruelle*ChairmanChair of the Board of Directors)
)
Mollie Hale Carter*Director)
)
Charles Q. Chandler IV*Director)
)
Gary D. Forsee*Director)
)
Scott D. Grimes*Director)
)
Richard L. Hawley*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)
)
John J. Sherman*James Scarola*Director)
)
S. Carl Soderstrom Jr.*Director)
)
C. John Arthur Stall*Wilder*Director)
*By    /s/ Terry BasshamDavid Campbell
Terry Bassham    David Campbell
Attorney-in-Fact*


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