~~11.~~9. LONG-TERM DEBT

~~Great Plains Energy's and KCP&L's long-term debt is detailed in the following table.~~

September 30 December 31
Year Due 2017 2016
KCP&L (millions)
General Mortgage Bonds
2.95% EIRR bonds 2023 $ 79.5
$ 110.5
7.15% Series 2009A (8.59% rate)^(a)
2019 400.0
400.0
Senior Notes

5.85% Series (5.72% rate)^(a)

—
250.0
6.375% Series (7.49% rate)^(a)
2018 350.0
350.0
3.15% Series 2023 300.0
300.0
3.65% Series 2025 350.0
350.0
6.05% Series (5.78% rate)^(a)
2035 250.0
250.0
5.30% Series 2041 400.0
400.0
4.20% Series 2047 300.0
—
EIRR Bonds
0.889% Series 2007A and 2007B^(b)
2035 146.5
146.5
2.875% Series 2008 2038 23.4
23.4
Current maturities (350.0 ) (281.0 )
Unamortized discount and debt issuance costs (17.7 ) (15.4 )
Total KCP&L excluding current maturities^(c)
2,231.7
2,284.0
Other Great Plains Energy

GMO First Mortgage Bonds 9.44% Series 2018-2021 4.6
5.7
GMO Senior Notes
8.27% Series 2021 80.9
80.9
3.49% Series A 2025 125.0
125.0
4.06% Series B 2033 75.0
75.0
4.74% Series C 2043 150.0
150.0
GMO Medium Term Notes

7.33% Series 2023 3.0
3.0
7.17% Series 2023 7.0
7.0
Great Plains Energy Senior Notes
6.875% Series (7.33% rate)^(a)

—
100.0
4.85% Series 2021 350.0
350.0
5.292% Series 2022 287.5
287.5
Current maturities (1.1 ) (101.1 )
Unamortized discount and premium, net and debt issuance costs (1.6 ) (1.8 )
Total Great Plains Energy excluding current maturities^(c)
$ 3,312.0
$ 3,365.2


^(a)	~~Rate after amortizing gains/losses recognized in other comprehensive income (OCI) on settlements of interest rate hedging instruments~~


^(b)	~~Variable rate~~


^(c)	At September 30, 2017, and December 31, 2016, does not include $50.0 million and $21.9 million of secured Series 2005 Environmental Improvement Revenue Refunding (EIRR) bonds because the bonds were repurchased in September 2015 and are held by KCP&L

~~Table of Contents~~

~~Great Plains Energy Senior Notes~~Mortgage Bonds

In March ~~2017, Great Plains Energy~~2019, Evergy Metro issued ~~at a discount,~~collateral mortgage bonds secured by the General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented (Evergy Metro Mortgage Indenture) to serve as collateral for Evergy Metro's obligations under the following ~~series~~outstanding unsecured senior notes:

$300.0 million of 3.15% Series, maturing in 2023;

$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;

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$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 trustee for the unsecured senior notes, ~~in order to fund~~are only payable if Evergy Metro defaults on the ~~majority of the cash portion of the acquisition of Westar under the Original Merger Agreement:~~

~~$750.0 million of 2.50% Notes, maturing in 2020;~~

~~$1,150.0 million of 3.15% Notes, maturing in 2022;~~

~~$1,400.0 million of 3.90% Notes, maturing in 2027; and~~

~~$1,000.0 million of 4.85% Notes, maturing in 2047.~~

In July 2017, as a result of the Amended Merger Agreement, Great Plains Energy determined in its reasonable judgment that the acquisition of Westar would not close prior to November 30, 2017 and exercised its special optional redemption right to redeem each series of theunderlying unsecured senior notes ~~issued in March 2017. The redemption price was equal to 101% of~~and do not increase the ~~principle~~ amount of ~~the senior notes, including accrued and unpaid interest,~~outstanding debt for ~~a total redemption cost of $4,400.1 million. As a result of the redemption, Great Plains Energy recorded a loss on extinguishment of debt of $82.8 million in July 2017.~~

~~Great Plains Energy repaid its $100.0 million of 6.875% unsecured Senior Notes at maturity in September 2017.~~

~~KCP&L Senior Notes~~

~~In June 2017, KCP&L issued, at a discount,~~ ~~$300.0 million~~ of ~~4.20%~~ ~~unsecured Senior Notes, maturing in 2047. KCP&L also repaid its $250.0 million of 5.85% unsecured Senior Notes at maturity in June 2017.~~

~~KCP&L General Mortgage Bonds~~

~~KCP&L repaid its $31.0 million secured Series 1992 EIRR bonds at maturity in July 2017.~~

~~12. PREFERRED STOCK~~

~~Series A Mandatory Convertible Preferred Stock~~

On May 29, 2016, Great Plains Energy entered into a stock purchase agreement with OMERS, pursuant to which Great Plains Energy will issue and sell to OMERS 750,000 shares of Series A Preferred Stock, for an aggregate purchase price equal to $750 million at the closing of the Original Merger Agreement.

In July 2017, as a result of the Amended Merger Agreement, Great Plains Energy and OMERS terminated their stock purchase agreement for the Series A Preferred Stock. As a result of this termination, Great Plains Energy recorded $15 million of previously deferred offering fees to non-operating expenses in the third quarter of 2017.

~~Series B Mandatory Convertible Preferred Stock~~

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

~~(a) $1,000 per share plus accumulated and unpaid dividends up to the redemption date; or~~

~~(b) if the average price of Great Plains Energy's common stock exceeded a certain threshold amount, then a repurchase price that is equal to a make-whole formula.~~

The Series B Preferred Stock also contained a fundamental change conversion option whereby upon the occurrence of certain events deemed to be a fundamental change, including an acquisition, liquidation, or delisting of Great Plains Energy common stock, holders of the Series B Preferred Stock could:

~~(a) convert their existing shares into shares of Great Plains Energy common stock; and~~

~~(b) receive a dividend make-whole payment.~~

~~Table of Contents~~

Evergy Metro.

As a result of the ~~Amended Merger Agreement, Great Plains Energy determined~~above transactions, Evergy Metro's outstanding senior notes have effectively become secured by the mortgage lien of the Evergy Metro Mortgage Indenture and will rank equally and ratably with all of Evergy Metro's mortgage bonds, regardless of series, from time to time issued and outstanding under the Evergy Metro Mortgage Indenture.

Also in its reasonable judgment that the acquisition of Westar would not close and exercised its acquisition termination redemption option and redeemed the Series B Preferred Stock in August 2017. The Series B Preferred Stock was redeemedMarch 2019, Evergy Metro issued, at a ~~redemption price that was equal to~~discount, $400.0 million of 4.125% Mortgage Bonds, maturing in 2049. Evergy Metro also repaid its $400.0 million of 7.15% Mortgage Bonds at maturity in April 2019.

In June 2019, Evergy Kansas South repaid its $300.0 million of 6.70% First Mortgage Bonds at maturity.

In August 2019, Evergy Kansas Central issued, at a ~~make-whole formula set forth~~discount, $300.0 million of 3.25% First Mortgage Bonds, maturing in 2049.

Senior Notes

In March 2019, Evergy Missouri West issued $100.0 million of 3.74% Senior Notes, maturing in 2022, under a note purchase agreement.

In September 2019, Evergy issued, at a discount, $800.0 million of 2.45% Senior Notes, maturing in 2024 and $800.0 million of 2.90% Senior Notes, maturing in 2029.

10. FAIR VALUE MEASUREMENTS

Values of Financial Instruments

GAAP establishes a hierarchical framework for disclosing the ~~terms~~transparency of the ~~Series B Preferred Stock. The total cost of the redemption was $963.4 million. Great Plains Energy made the entire redemption payment~~inputs utilized in ~~cash.~~

~~The dividend make-whole provisions within both the acquisition termination redemption~~measuring assets and fundamental change conversion options discussed above represented embedded derivatives that in accordance with GAAP, were accounted for on a combined basis separately from the Series B Preferred Stock and reportedliabilities at fair value. ~~The~~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 net asset value (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.

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 financial instruments priced with models using highly observable inputs.

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.

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 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.

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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 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 Series B Preferred Stock dividend make-whole provisions at inception and December 31, 2016 was insignificant. As part of the $963.4 million redemption of the Series B Preferred Stock, the Series B Preferred Stock dividend make-whole provisions liability was settled in August 2017.debt. For the three months ended and year to date September 30, ~~2017,~~2019, a $0.2 million loss has been reclassified from accumulated other comprehensive loss to interest expense on Evergy's consolidated statements of comprehensive income. As of September 30, 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.



	September 30, 2019				December 31, 2018
	Book Value		Fair Value		Book Value		Fair Value
Long-term debt^(a)	(millions)
Evergy^(b)	$	9,000.3	$	9,843.1	$	7,341.7	$	7,412.1
Evergy Kansas Central	3,685.6		4,139.0		3,689.8		3,771.3
Evergy Metro	2,524.6		2,962.7		2,530.1		2,637.5
Long-term debt of variable interest entities^(a)
Evergy	$	51.1	$	51.3	$	81.4	$	81.3
Evergy Kansas Central	51.1		51.3		81.4		81.3

^(a)Includes current maturities.

^(b)Book value as of September 30, 2019 and December 31, 2018, includes $129.2 million and $144.8 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy ~~recognized~~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.

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Recurring Fair Value Measurements

The following tables include the Evergy Companies' balances of financial assets and liabilities measured at fair value on a ~~loss~~recurring basis.



Description	September 30, 2019			Level 1		Level 2			Level 3			NAV
Evergy Kansas Central		(millions)
Assets
Nuclear decommissioning trust^(a)
Domestic equity funds		$	84.0	$	77.5		$	—		$	—		$	6.5
International equity funds		46.7		46.7			—			—			—
Core bond fund		36.6		36.6			—			—			—
High-yield bond fund		21.3		21.3			—			—			—
Emerging markets bond fund		17.2		17.2			—			—			—
Combination debt/equity/other fund		15.4		15.4			—			—			—
Alternative investments fund		24.8		—			—			—			24.8
Real estate securities fund		12.4		—			—			—			12.4
Cash equivalents		0.1		0.1			—			—			—
Total nuclear decommissioning trust		258.5		214.8			—			—			43.7
Rabbi trust
Core bond fund		25.5		—			—			—			25.5
Combination debt/equity/other fund		6.1		—			—			—			6.1
Cash equivalents		0.2		0.2			—			—			—
Total rabbi trust		31.8		0.2			—			—			31.6
Total		$	290.3	$	215.0		$	—		$	—		$	75.3
Evergy Metro
Assets
Nuclear decommissioning trust^(a)
Equity securities		$	193.7	$	193.7		$	—		$	—		$	—
Debt securities
U.S. Treasury		50.1		50.1			—			—			—
U.S. Agency		0.4		—			0.4			—			—
State and local obligations		2.2		—			2.2			—			—
Corporate bonds		33.0		—			33.0			—			—
Foreign governments		0.1		—			0.1			—			—
Cash equivalents		2.6		2.6			—			—			—
Other		0.4		—			0.4			—			—
Total nuclear decommissioning trust		282.5		246.4			36.1			—			—
Self-insured health plan trust^(b)
Equity securities		0.5		0.5			—			—			—
Debt securities		6.1		1.3			4.8			—			—
Cash and cash equivalents		3.7		3.7			—			—			—
Total self-insured health plan trust		10.3		5.5			4.8			—			—
Total		$	292.8	$	251.9		$	40.9		$	—		$	—
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)		$	541.0	$	461.2		$	36.1		$	—		$	43.7
Rabbi trusts		45.6		0.7			—			—			44.9
Self-insured health plan trust^(b)		10.3		5.5			4.8			—			—
Total		$	596.9	$	467.4		$	40.9		$	—		$	88.6

Table of ~~$67.7 million~~Contents



Description	December 31, 2018			Level 1			Level 2			Level 3			NAV
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		$	—		$	—


^(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 LIBOR swap rates.

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Certain Evergy and ~~$124.8 million, respectively,~~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.



	September 30, 2019				December 31, 2018				September 30, 2019
	Fair		Unfunded		Fair		Unfunded		Redemption	Length of
	Value		Commitments		Value		Commitments		Frequency	Settlement
Evergy Kansas Central	(millions)
Nuclear decommissioning trust:
Domestic equity funds	$	6.5	$	3.6	$	6.7	$	4.3	(a)	(a)
Alternative investments fund^(b)	24.8		—		24.1		—		Quarterly	65 days
Real estate securities fund^(b)	12.4		—		11.8		—		Quarterly	65 days
Total	$	43.7	$	3.6	$	42.6	$	4.3
Rabbi trust:
Core bond fund	$	25.5	$	—	$	24.8	$	—	(c)	(c)
Combination debt/equity/other fund	6.1		—		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	$	88.6	$	3.6	$	86.2	$	4.3

^(a)

This investment is in 5 long-term private equity funds that do not permit early withdrawal. Investments in these funds cannot be distributed until the 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 the second quarter of 2016 and first quarter of 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.

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The Evergy Companies hold equity and debt investments classified as securities in various trusts including for the ~~settlement~~purposes of ~~these provisions, which is recorded within loss~~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 ~~Series B Preferred Stock dividend make-whole provisions~~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 (loss).~~income.

~~Great Plains Energy also recognized a redemption premium of $2.4 million~~The following table summarizes the net unrealized gains (losses) for the Evergy Companies' nuclear decommissioning trusts and rabbi trusts.



	Three Months Ended September 30						Year to Date September 30
	2019			2018			2019		2018
Evergy Kansas Central	(millions)
Nuclear decommissioning trust - equity securities	$	0.2		$	6.5		$	26.2	$	(6.4	)
Rabbi trust - equity securities	0.5			3.7			2.7		3.2
Total	$	0.7		$	10.2		$	28.9	$	(3.2	)
Evergy Metro^(a)
Nuclear decommissioning trust - equity securities	$	(0.5	)	$	8.6		$	24.7	$	9.1
Nuclear decommissioning trust - debt securities	1.5			(0.5		)	5.9		(2.8		)
Total	$	1.0		$	8.1		$	30.6	$	6.3
Evergy
Nuclear decommissioning trust - equity securities	$	(0.3	)	$	15.1		$	50.9	$	1.1
Nuclear decommissioning trust - debt securities	1.5			(0.5		)	5.9		(0.8		)
Rabbi trusts - equity securities	0.9			3.7			2.4		3.1
Total	$	2.1		$	18.3		$	59.2	$	3.4

^(a)Evergy Metro amounts are included in ~~connection with~~consolidated Evergy from June 4, 2018, the ~~redemption~~date of the Series B Preferred Stock for the three months ended and year to date September 30, 2017. This premium is represented as the difference between the redemption cost of $963.4 million and the $836.2 million carrying valueclosing of the Series B Preferred Stock, less the $124.8 million paid to settle the Series B Preferred Stock dividend make-whole provisions. The redemption premium is recorded as a reduction to earnings (loss) available for common shareholdersmerger, and ~~is recorded within preferred stock dividend requirements and redemption premium on the consolidated statements of comprehensive income (loss).~~thereafter.

~~13.~~11. COMMITMENTS AND CONTINGENCIES

~~Environmental Matters~~Interest Rate Derivatives

~~Great Plains Energy~~The Evergy Companies are exposed to market risks arising from changes in interest rates and ~~KCP&L are subject~~may use derivative instruments to ~~extensive federal, state and local environmental laws, regulations and permit requirements~~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 ~~air~~forecasted debt transactions. These interest rate swap agreements can be designated as cash flow hedges, in which case gains and water quality, waste management and disposal, natural resources and health and safety. In addition to imposing continuing compliance obligations and remediation costs, these laws, regulations and permits authorizelosses on the ~~imposition of substantial penalties for noncompliance, including fines, injunctive relief and~~interest rate swaps are deferred in other ~~sanctions. The cost of complying with current and future environmental requirements is expected~~comprehensive income to be ~~material~~recognized as an adjustment to ~~Great Plains Energy~~interest expense over the same period that the hedged interest payments affect earnings. The Evergy Companies classify all cash inflows and ~~KCP&L. Failure to comply with environmental requirements or to timely recover environmental costs through rates could have a material effect~~outflows for interest rate swap agreements accounted for as cash flow hedges of forecasted debt transactions as financing activities on ~~Great Plains Energy's and KCP&L's results~~their consolidated statements of ~~operations, financial position and~~ cash flows.

Great Plains Energy's and KCP&L's current estimates of capital expenditures (exclusive of Allowance for Funds Used During Construction (AFUDC) and property taxes) over the next four years to comply with environmental regulations are in the following table. The total cost of compliance with any existing, proposed or future laws and regulations may be significantly different from these cost estimates provided.

2017 2018 2019 2020
(millions)
Great Plains Energy $ 36.3
$ 16.6
$ 9.2
$ 13.7
KCP&L 34.9
16.5
7.9
13.0

The Companies expect to seek recovery of the costs associated with environmental requirements through rate increases; however, there can be no assurance that such rate increases would be granted. The Companies may be subject to materially adverse rate treatment in response to competitive, economic, political, legislative or regulatory factors and/or public perception of the Companies' environmental reputation.

~~The following discussion groups environmental and certain associated matters into the broad categories of air and climate change, water, solid waste and remediation.~~

~~Table of Contents~~

~~Clean Air Act and Climate Change Overview~~

The Clean Air Act Amendments of 1990 (Clean Air Act) and associated regulations enacted by the Environmental Protection Agency (EPA) form a comprehensive program to preserve and enhance air quality. States are required to establish regulations and programs to address all requirements of the Clean Air Act and have the flexibility to enact more stringent requirements. All of Great Plains Energy's and KCP&L's generating facilities, and certain of their other facilities, are subject to the Clean Air Act.

~~Climate Change~~

~~The Companies' current generation capacity is primarily coal-fired and is estimated to produce about one ton of carbon dioxide (CO~~₂) per MWh, or approximately 19 million tons and 15 million tons per year for Great Plains Energy and KCP&L, respectively. The Companies are subject to existing greenhouse gas reporting regulations and certain greenhouse gas requirements. Federal or state legislation concerning the reduction of emissions of greenhouse gases, including CO₂, could be enacted in the future. At the international level, the Paris Agreement was adopted in December 2015 by nearly 200 countries and became effective in November 2016. The Paris Agreement does not result in any new, legally binding obligations on the United States to meet a particular greenhouse gas emissions target, but establishes a framework for international cooperation on climate change. In June 2017, United States President Donald Trump announced the United States would withdraw from the Paris Agreement. Under the rules of the Paris Agreement, the earliest any country can withdraw is November 2020. Other international agreements legally binding on the United States may be reached in the future. Greenhouse gas legislation has the potential of having significant financial and operational impacts on Great Plains Energy and KCP&L; however, the ultimate financial and operational consequences to Great Plains Energy and KCP&L cannot be determined until such legislation is passed. In the absence of new Congressional mandates, the EPA is proceeding with the regulation of greenhouse gases under the existing Clean Air Act.

~~In August 2015, the EPA finalized CO~~₂ emission standards for new, modified and reconstructed affected fossil-fuel-fired electric utility generating units. The standards would not apply to Great Plains Energy's and KCP&L's existing units unless the units were modified or reconstructed in the future. Also in August 2015, the EPA finalized its Clean Power Plan which sets CO₂ ~~emission performance rates for existing affected fossil-fuel-fired electric generating units. Nationwide, by 2030, the EPA projects the Clean Power Plan would achieve CO~~₂ ~~emission reductions from the power sector of approximately 32% from CO~~₂ ~~emission levels in 2005.~~

In February 2016, the U.S. Supreme Court granted a stay of the Clean Power Plan putting the rule on hold pending review in the United States Court of Appeals for the District of Columbia Circuit and any subsequent review by the U.S. Supreme Court if such review is sought. In October 2017, the EPA proposed to repeal the Clean Power Plan on the basis that it exceeded the EPA’s statutory authority. The EPA has not yet determined if it will propose a new rule to replace the Clean Power Plan and if so, what form that rule would take and when it will do so. Compliance with the Clean Power Plan or any replacement rule has the potential of having significant financial and operational impacts on Great Plains Energy and KCP&L; however, the ultimate financial and operational consequences to Great Plains Energy and KCP&L cannot be determined until the outcome of the EPA's proposal to repeal the Clean Power Plan and pending litigation is known.

~~Clean Water Act~~

The Clean Water Act and associated regulations enacted by the EPA form a comprehensive program to restore and preserve water quality. Like the Clean Air Act, states are required to establish regulations and programs to address all requirements of the Clean Water Act, and have the flexibility to enact more stringent requirements. All of Great Plains Energy's and KCP&L's generating facilities, and certain of their other facilities, are subject to the Clean Water Act.

In May 2014, the EPA finalized regulations pursuant to Section 316(b) of the Clean Water Act regarding cooling water intake structures pursuant to a court approved settlement. KCP&L generation facilities with cooling water intake structures are subject to the best technology available standards based on studies completed to comply with

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such standards. The rule provides flexibility to work with the states to develop the best technology available to minimize aquatic species impacted by being pinned against intake screens (impingement) or drawn into cooling water systems (entrainment). Estimated costs to comply with Section 316(b) of the Clean Water Act are included in the estimated capital expenditures table above.

KCP&L holds a permit from the Missouri Department of Natural Resources (MDNR) covering water discharge from its Hawthorn Station. The permit authorizes KCP&L to, among other things, withdraw water from the Missouri River for cooling purposes and return the heated water to the Missouri River. KCP&L has applied for a renewal of this permit and the EPA has submitted an interim objection letter regarding the allowable amount of heat that can be contained in the returned water. Until this matter is resolved, KCP&L continues to operate under its current permit. Great Plains Energy and KCP&L cannot predict the outcome of this matter; however, while less significant outcomes are possible, this matter may require a reduction in generation, installation of cooling towers or other technology to cool the water, or both, any of which could have a significant impact on Great Plains Energy's and KCP&L's results of operations, financial position and cash flows.

In September ~~2015,~~2019, Evergy issued $800.0 million of 2.90% Senior Notes 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 ~~EPA finalized a revision~~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 technology-based effluent limitations guidelines and standards regulation to make the existing controls on discharges from steam electric power plants more stringent. The final rule sets the first federal limits on the levels of toxic metals in wastewater that can be discharged from power plants. The new requirements for existing power plants would be phased in between 2018 and 2023. The final rule establishes new or additional requirements for wastewaters associated with the following processes and byproducts at certain KCP&L and GMO stations: flue gas desulfurization, fly ash, bottom ash, flue gas mercury control, and combustion residual leachate from landfills and surface impoundments. In September 2017, the EPA announced it intends to conduct a rulemaking to potentially revise certain effluent limitations and standards for existing sources required by the rule. The EPA is postponing the earliest compliance dates for flue gas desulfurization and bottom ash transport waste water in the rule for a period of two years. Estimated capital costs to comply with the final rule are included in the estimated capital expenditures table above.

~~Solid Waste~~

Solid and hazardous waste generation, storage, transportation, treatment and disposal are regulated at the federal and state levels under various laws and regulations. In December 2014, the EPA finalized regulations to regulate coal combustion residuals (CCRs) under the Resource Conservation and Recovery Act (RCRA) subtitle D to address the risks from the disposal of CCRs generated from the combustion of coal at electric generating facilities. The Companies use coal in generating electricity and dispose of the CCRs in both on-site facilities and facilities owned by third parties. KCP&L's Iatan, La Cygne, and Montrose Stations and GMO's Sibley Station have on-site facilities affected by the rule. The rule requires periodic assessments; groundwater monitoring; location restrictions; design and operating requirements; recordkeeping and notifications; and closure, among other requirements, for CCR units. The rule was promulgated in the Federal Register on April 17, 2015, and became effective six months after promulgation with various obligations effective at specified times within the rule. Estimated capital costs to comply with the CCR rule are included in the estimated capital expenditures table above. Certain requirements of the rule would require Great Plains Energy or KCP&L to expedite or incur additional capital expenditures in the future.

Great Plains Energy and KCP&L have asset retirement obligations (AROs) on their balance sheets for closure and post-closure of ponds and landfills containing CCRs. Certain requirements of the rule could in the future require further evaluation of the expected method of compliance and refinement of assumptions underlying the cost estimates for closure and post-closure. Great Plains Energy's and KCP&L's AROs could increase from the amounts presently recorded.

~~Remediation~~

Certain federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), hold current and previous owners or operators of contaminated facilities and persons who arranged for the disposal or treatment of hazardous substances liable for the cost of investigation and cleanup. CERCLA and other laws also authorize the EPA and other agencies to issue orders compelling potentially responsible parties to clean up sites that are determined to present an actual or potential threat to human health or the environment. GMO

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retains some environmental liability for several operations and investments it no longer owns. In addition, GMO also owns, or has acquired liabilities from companies that once owned or operated, former manufactured gas plant (MGP) sites, which are subject to the supervision of the EPA and various state environmental agencies.

At September 30, 2017, and December 31, 2016, KCP&L had $0.3 million accrued for environmental remediation expenses, which covers ground water monitoring at a former MGP site. The amount accrued was established on an undiscounted basis and KCP&L does not currently have an estimated time frame over which the accrued amount may be paid.

In addition to the $0.3 million accrual above, at September 30, 2017, and December 31, 2016, Great Plains Energy had $1.4 million accrued for the future investigation and remediation of certain additional GMO identified MGP sites and retained liabilities. This estimate was based upon review of the potential costs associated with conducting investigative and remedial actions at identified sites, as well as the likelihood of whether such actions will be necessary. This estimate could change materially after further investigation, and could also be affected by the actions of environmental agencies and the financial viability of other potentially responsible parties; however, given the uncertainty of these items the possible loss or range of loss in excess of the amount accrued is not estimable.

GMO has pursued recovery of remediation costs from insurance carriers and other potentially responsible parties. As a result of a settlement with an insurance carrier, approximately $1.5 million in insurance proceeds less an annual deductible is available to GMO to recover qualified MGP remediation expenses. GMO would seek recovery of additional remediation costs and expenses through rate increases; however, there can be no assurance that such rate increases would be granted.

~~14. LEGAL PROCEEDINGS~~

~~GMO Western Energy Crisis~~

In response to complaints of excessive prices in the California energy markets, FERC issued an order in July 2001 requiring net sellers of power in the California markets from October 2, 2000, through June 20, 2001, at prices above a FERC-determined competitive market clearing price, to make refunds to net purchasers of power in the California market during that time period. MPS Merchant was a net purchaser of power during the refund period.

In November 2014, FERC issued an order finding that MPS Merchant engaged in tariff violations during the periods prior to October 2, 2000 (the Summer Period) and ordered refunds in the form of disgorgement of certain revenues. In November 2015 and February 2016, FERC issued additional orders regarding the refunds MPS Merchant owed.

In October 2016, MPS Merchant reached a settlement agreement, which was subsequently revised in February 2017, with certain California utilities and governmental agencies that would settle all issues in the case in exchange for $7.5 million of cash consideration as well as MPS Merchant's interest in additional funds it was entitled to during the refund period discussed above. In September 2017, the settlement agreement was approved by FERC and the settlement payment was made by MPS Merchant in October 2017. In accordance with the terms of the settlement agreement, the $7.5 million of cash consideration accrued interest at the FERC interest rate beginning on January 1, 2017, until the date of the payment of the settlement. At September 30, 2017, and December 31, 2016, Great Plains Energy had accrued for the cash consideration and any applicable interest pursuant to the settlement agreement.

~~15. RELATED PARTY TRANSACTIONS AND RELATIONSHIPS~~

KCP&L employees manage GMO's business and operate its facilities at cost, including GMO's 18% ownership interest in KCP&L's Iatan Nos. 1 and 2. The operating expenses and capital costs billed from KCP&L to GMO were $49.2 million and $145.0 million, respectively, fordebt. For the three months ended and year to date September 30, ~~2017. These costs totaled $48.9~~2019, a $0.2 million loss has been reclassified from accumulated other comprehensive loss to interest expense on Evergy's consolidated statements of comprehensive income. As of September 30, 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



	September 30, 2019				December 31, 2018
	Book Value		Fair Value		Book Value		Fair Value
Long-term debt^(a)	(millions)
Evergy^(b)	$	9,000.3	$	9,843.1	$	7,341.7	$	7,412.1
Evergy Kansas Central	3,685.6		4,139.0		3,689.8		3,771.3
Evergy Metro	2,524.6		2,962.7		2,530.1		2,637.5
Long-term debt of variable interest entities^(a)
Evergy	$	51.1	$	51.3	$	81.4	$	81.3
Evergy Kansas Central	51.1		51.3		81.4		81.3

^(a)Includes current maturities.

^(b)Book value as of September 30, 2019 and December 31, 2018, includes $129.2 million and ~~$143.8~~$144.8 million, respectively, ~~for the three months ended and year to date September 30, 2016.~~

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~~KCP&L and GMO are also authorized to participate~~fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy ~~money pool, an internal financing arrangement in~~and Evergy Kansas Central merger, which ~~funds may be lent~~are not part of future principal payments and will amortize over the remaining life of the associated debt instrument.

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Recurring Fair Value Measurements

The following tables include the Evergy Companies' balances of financial assets and liabilities measured at fair value on a ~~short-term basis to KCP&L~~recurring basis.



Description	September 30, 2019			Level 1		Level 2			Level 3			NAV
Evergy Kansas Central		(millions)
Assets
Nuclear decommissioning trust^(a)
Domestic equity funds		$	84.0	$	77.5		$	—		$	—		$	6.5
International equity funds		46.7		46.7			—			—			—
Core bond fund		36.6		36.6			—			—			—
High-yield bond fund		21.3		21.3			—			—			—
Emerging markets bond fund		17.2		17.2			—			—			—
Combination debt/equity/other fund		15.4		15.4			—			—			—
Alternative investments fund		24.8		—			—			—			24.8
Real estate securities fund		12.4		—			—			—			12.4
Cash equivalents		0.1		0.1			—			—			—
Total nuclear decommissioning trust		258.5		214.8			—			—			43.7
Rabbi trust
Core bond fund		25.5		—			—			—			25.5
Combination debt/equity/other fund		6.1		—			—			—			6.1
Cash equivalents		0.2		0.2			—			—			—
Total rabbi trust		31.8		0.2			—			—			31.6
Total		$	290.3	$	215.0		$	—		$	—		$	75.3
Evergy Metro
Assets
Nuclear decommissioning trust^(a)
Equity securities		$	193.7	$	193.7		$	—		$	—		$	—
Debt securities
U.S. Treasury		50.1		50.1			—			—			—
U.S. Agency		0.4		—			0.4			—			—
State and local obligations		2.2		—			2.2			—			—
Corporate bonds		33.0		—			33.0			—			—
Foreign governments		0.1		—			0.1			—			—
Cash equivalents		2.6		2.6			—			—			—
Other		0.4		—			0.4			—			—
Total nuclear decommissioning trust		282.5		246.4			36.1			—			—
Self-insured health plan trust^(b)
Equity securities		0.5		0.5			—			—			—
Debt securities		6.1		1.3			4.8			—			—
Cash and cash equivalents		3.7		3.7			—			—			—
Total self-insured health plan trust		10.3		5.5			4.8			—			—
Total		$	292.8	$	251.9		$	40.9		$	—		$	—
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)		$	541.0	$	461.2		$	36.1		$	—		$	43.7
Rabbi trusts		45.6		0.7			—			—			44.9
Self-insured health plan trust^(b)		10.3		5.5			4.8			—			—
Total		$	596.9	$	467.4		$	40.9		$	—		$	88.6

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Description	December 31, 2018			Level 1			Level 2			Level 3			NAV
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		$	—		$	—


^(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 LIBOR swap rates.

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Certain Evergy and ~~GMO from Great Plains Energy~~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 ~~between KCP&L~~Evergy Kansas Central investments.



	September 30, 2019				December 31, 2018				September 30, 2019
	Fair		Unfunded		Fair		Unfunded		Redemption	Length of
	Value		Commitments		Value		Commitments		Frequency	Settlement
Evergy Kansas Central	(millions)
Nuclear decommissioning trust:
Domestic equity funds	$	6.5	$	3.6	$	6.7	$	4.3	(a)	(a)
Alternative investments fund^(b)	24.8		—		24.1		—		Quarterly	65 days
Real estate securities fund^(b)	12.4		—		11.8		—		Quarterly	65 days
Total	$	43.7	$	3.6	$	42.6	$	4.3
Rabbi trust:
Core bond fund	$	25.5	$	—	$	24.8	$	—	(c)	(c)
Combination debt/equity/other fund	6.1		—		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	$	88.6	$	3.6	$	86.2	$	4.3

^(a)


^(b)	There is a holdback on final redemptions.


^(c)	This investment can be redeemed immediately and is not subject to any restrictions on redemptions.

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The Evergy Companies hold equity and ~~GMO. At September 30, 2017,~~debt investments classified as securities in various trusts including for the purposes of funding the decommissioning of Wolf Creek and ~~December 31, 2016, KCP&L had no outstanding receivables or payables under~~for the ~~money pool.~~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 ~~KCP&L's related party~~the net ~~receivables.~~unrealized gains (losses) for the Evergy Companies' nuclear decommissioning trusts and rabbi trusts.

September 30 December 31
2017 2016
(millions)
Net receivable from GMO $ 55.1
$ 64.6

Net receivable from Great Plains Energy 27.0
2.6



	Three Months Ended September 30						Year to Date September 30
	2019			2018			2019		2018
Evergy Kansas Central	(millions)
Nuclear decommissioning trust - equity securities	$	0.2		$	6.5		$	26.2	$	(6.4	)
Rabbi trust - equity securities	0.5			3.7			2.7		3.2
Total	$	0.7		$	10.2		$	28.9	$	(3.2	)
Evergy Metro^(a)
Nuclear decommissioning trust - equity securities	$	(0.5	)	$	8.6		$	24.7	$	9.1
Nuclear decommissioning trust - debt securities	1.5			(0.5		)	5.9		(2.8		)
Total	$	1.0		$	8.1		$	30.6	$	6.3
Evergy
Nuclear decommissioning trust - equity securities	$	(0.3	)	$	15.1		$	50.9	$	1.1
Nuclear decommissioning trust - debt securities	1.5			(0.5		)	5.9		(0.8		)
Rabbi trusts - equity securities	0.9			3.7			2.4		3.1
Total	$	2.1		$	18.3		$	59.2	$	3.4

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

~~16. FAIR VALUE MEASUREMENTS~~11. COMMITMENTS AND CONTINGENCIES

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad categories, giving the highest priority to quoted prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs. A definition of the various levels, as well as discussion of the various measurements within the levels, is as follows:

~~Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets that Great Plains Energy and KCP&L have access to at the measurement date.~~

~~Level 2 – Market-based inputs for assets or liabilities that are observable (either directly or indirectly) or inputs that are not observable but are corroborated by market data.~~

~~Level 3 – Unobservable inputs, reflecting Great Plains Energy's and KCP&L's own assumptions about the assumptions market participants would use in pricing the asset or liability.~~

~~Great Plains Energy and KCP&L record cash and cash equivalents and short-term borrowings on the balance sheet at cost, which approximates fair value due to the short-term nature of these instruments.~~

Interest Rate Derivatives

~~In June 2016, Great Plains Energy entered~~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 ~~four~~ interest rate ~~swaps, with a total notional amount of $4.4 billion,~~swap agreements to ~~hedge~~protect against unfavorable interest rate ~~fluctuations on future issuances of long-term~~changes relating to forecasted debt ~~expected to be issued to finance a portion of the cash consideration for the acquisition of Westar under the Original Merger Agreement. The~~transactions. These interest rate ~~swaps were~~swap agreements can be designated as ~~economic~~cash flow hedges, ~~(non-hedging derivatives). Settlement of~~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 and paid $69.8 million to settle an interest rate swap agreement with a notional amount of $500.0 million that was ~~contingent~~designated as a cash flow hedge of interest payments on the ~~consummation of the acquisition of Westar. In July 2017,~~debt issuance. Evergy entered into the interest rate swap ~~agreements were amended~~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 ~~make them contingent on~~interest expense over the ~~consummation~~ten-year term of the ~~anticipated merger with Westar under the Amended Merger Agreement by November 30, 2018.~~

In March 2017, in connection with Great Plains Energy's $4.3 billion senior note issuance, the settlement value of the interest rate swaps to Great Plains Energy of $140.6 million was fixed. Cash settlement of the $140.6 million is contingent on the consummation of the anticipated merger with Westar by November 30, 2018. The fair value of the interest rate swaps recorded on Great Plains Energy's balance sheets reflects a contingency factor that management believes is representative of what a market participant would use in valuing these instruments in order to account for the contingent nature of the cash settlement of the interest rate swaps. The contingency factor was 0.45 and 0.35 at September 30, 2017, and December 31, 2016, respectively. At September 30, 2017, and December 31, 2016, the fair value of the interest rate swaps was $77.4 million and $79.3 million, respectively, and was recorded on the consolidated balance sheets in interest rate derivative instruments.debt. For the three months ended and year to date September 30, ~~2017, Great Plains Energy recognized~~2019, a ~~$28.2 million gain and a $1.9~~$0.2 million loss ~~respectively, in~~has been reclassified from accumulated other comprehensive loss to interest ~~charges for the change in fair value. For the three months ended and year to date~~

~~Table~~expense on Evergy's consolidated statements of ~~Contents~~

comprehensive income. As of September 30, ~~2016, Great Plains Energy recognized losses of $1.8~~2019, Evergy expects to amortize $5.2 million ~~and $78.8 million, respectively, in interest charges for~~to earnings from accumulated other comprehensive loss over the ~~change in fair value.~~next twelve months.

Fair Value of Long-Term Debt

~~Great Plains Energy and KCP&L record long-term debt on~~The Evergy Companies measure the ~~balance sheet at amortized cost. The~~ fair value of long-term debt ~~is measured as a~~using Level 2 ~~liability and is based on quoted market prices, with~~measurements available as of the ~~incremental borrowing rate for similar debt used to determine fair value if quoted market prices are not available. At September 30, 2017, the~~measurement date. The book value and fair value of ~~Great Plains Energy's~~the Evergy Companies' long-term debt ~~including current maturities, were $3.7 billion~~ and ~~$3.9 billion, respectively. At December 31, 2016, the book value and fair value of Great Plains Energy's~~ long-term debt ~~including~~of variable interest entities is summarized in the following table.



	September 30, 2019				December 31, 2018
	Book Value		Fair Value		Book Value		Fair Value
Long-term debt^(a)	(millions)
Evergy^(b)	$	9,000.3	$	9,843.1	$	7,341.7	$	7,412.1
Evergy Kansas Central	3,685.6		4,139.0		3,689.8		3,771.3
Evergy Metro	2,524.6		2,962.7		2,530.1		2,637.5
Long-term debt of variable interest entities^(a)
Evergy	$	51.1	$	51.3	$	81.4	$	81.3
Evergy Kansas Central	51.1		51.3		81.4		81.3

^(a)Includes current ~~maturities, were $3.8 billion and $4.0 billion, respectively. At~~maturities.

^(b)Book value as of September 30, 2017, the book value and fair value of KCP&L's long-term debt, including current maturities, were $2.6 billion and $2.8 billion, respectively. At December 31, 2016, the book value and fair value of KCP&L's long-term debt, including current maturities, were $2.6 billion and $2.7 billion, respectively.

~~Supplemental Executive Retirement Plan~~

~~At September 30, 2017,~~2019 and December 31, ~~2016, GMO's Supplemental Executive Retirement Plan rabbi trusts included $15.0~~2018, includes $129.2 million and ~~$16.0~~$144.8 million, respectively, of ~~fixed income funds valued at net asset~~fair value ~~per share (or its equivalent) that~~adjustments recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger, which are not ~~categorized in~~part of future principal payments and will amortize over the ~~fair value hierarchy. The fixed income fund invests primarily in intermediate and long-term~~remaining life of the associated debt ~~securities, can be redeemed immediately and is not subject to any restrictions on redemptions.~~instrument.

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Recurring Fair Value Measurements

The following tables include ~~Great Plains Energy's and KCP&L's~~the Evergy Companies' balances of financial assets and liabilities measured at fair value on a recurring basis.


Description	September 30 2017			Level 1		Level 2			Level 3			September 30, 2019			Level 1		Level 2			Level 3			NAV
KCP&L		(millions)
Evergy Kansas Central													(millions)
Assets
Nuclear decommissioning trust^(a)
Domestic equity funds													$	84.0	$	77.5		$	—		$	—		$	6.5
International equity funds													46.7		46.7			—			—			—
Core bond fund													36.6		36.6			—			—			—
High-yield bond fund													21.3		21.3			—			—			—
Emerging markets bond fund													17.2		17.2			—			—			—
Combination debt/equity/other fund													15.4		15.4			—			—			—
Alternative investments fund													24.8		—			—			—			24.8
Real estate securities fund													12.4		—			—			—			12.4
Cash equivalents													0.1		0.1			—			—			—
Total nuclear decommissioning trust													258.5		214.8			—			—			43.7
Rabbi trust
Core bond fund													25.5		—			—			—			25.5
Combination debt/equity/other fund													6.1		—			—			—			6.1
Cash equivalents													0.2		0.2			—			—			—
Total rabbi trust													31.8		0.2			—			—			31.6
Total													$	290.3	$	215.0		$	—		$	—		$	75.3
Evergy Metro
Assets
Nuclear decommissioning trust ^(a)
Equity securities		$	174.2	$	174.2		$	—		$	—		$	193.7	$	193.7		$	—		$	—		$	—
Debt securities
U.S. Treasury		33.6		33.6			—			—			50.1		50.1			—			—			—
U.S. Agency		0.4		—			0.4			—			0.4		—			0.4			—			—
State and local obligations		2.5		—			2.5			—			2.2		—			2.2			—			—
Corporate bonds		33.2		—			33.2			—			33.0		—			33.0			—			—
Foreign governments		0.1		—			0.1			—			0.1		—			0.1			—			—
Cash equivalents		2.9		2.9			—			—			2.6		2.6			—			—			—
Other		0.6		0.6			—			—			0.4		—			0.4			—			—
Total nuclear decommissioning trust		247.5		211.3			36.2			—			282.5		246.4			36.1			—			—
Self-insured health plan trust ^(b)
Equity securities		0.4		0.4			—			—			0.5		0.5			—			—			—
Debt securities		2.8		0.4			2.4			—			6.1		1.3			4.8			—			—
Cash and cash equivalents		8.1		8.1			—			—			3.7		3.7			—			—			—
Total self-insured health plan trust		11.3		8.9			2.4			—			10.3		5.5			4.8			—			—
Total		$	258.8	$	220.2		$	38.6		$	—		$	292.8	$	251.9		$	40.9		$	—		$	—
Other Great Plains Energy
Other Evergy
Assets
Interest rate derivative instruments ^(c)		$	77.4	$	—		$	—		$	77.4
Total		$	77.4	$	—		$	—		$	77.4
Great Plains Energy
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)		$	247.5	$	211.3		$	36.2		$	—		$	541.0	$	461.2		$	36.1		$	—		$	43.7
Rabbi trusts													45.6		0.7			—			—			44.9
Self-insured health plan trust ^(b)		11.3		8.9			2.4			—			10.3		5.5			4.8			—			—
Interest rate derivative instruments ^(c)		77.4		—			—			77.4
Total		$	336.2	$	220.2		$	38.6		$	77.4		$	596.9	$	467.4		$	40.9		$	—		$	88.6

Components of income tax expense are detailed in the following tables.

Three Months Ended
September 30 Year to Date
September 30
Great Plains Energy 2017 2016 2017 2016
Current income taxes (millions)
Federal $ (1.1 ) $ —
$ (1.1 ) $ (0.1 )
State (0.3 ) —
(0.3 ) 0.3
Total (1.4 ) —
(1.4 ) 0.2
Deferred income taxes

Federal 86.6
70.1
74.7
91.5
State 17.5
13.0
15.0
18.4
Total 104.1
83.1
89.7
109.9
Investment tax credit
Deferral —
—
—
2.5
Amortization (0.4 ) (0.4 ) (1.1 ) (1.1 )
Total (0.4 ) (0.4 ) (1.1 ) 1.4
Income tax expense $ 102.3
$ 82.7
$ 87.2
$ 111.5

Three Months Ended
September 30 Year to Date
September 30
KCP&L 2017 2016 2017 2016
Current income taxes (millions)
Federal $ 41.8
$ 35.4
$ 56.2
$ 36.6
State 7.6
6.4
10.2
6.7
Total 49.4
41.8
66.4
43.3
Deferred income taxes

Federal 10.3
22.5
27.2
61.5
State 2.8
4.5
6.2
12.5
Total 13.1
27.0
33.4
74.0
Investment tax credit amortization (0.3 ) (0.3 ) (0.8 ) (0.8 )
Income tax expense $ 62.2
$ 68.5
$ 99.0
$ 116.5



Evergy
	Three Months Ended September 30						Year to Date September 30
	2019			2018			2019			2018
Current income taxes	(millions)
Federal	$	(31.2	)	$	(30.3	)	$	(10.6	)	$	(21.5	)
State	(0.8		)	1.5			(1.6		)	1.9
Total	(32.0		)	(28.8		)	(12.2		)	(19.6		)
Deferred income taxes
Federal	75.5			70.6			78.0			86.0
State	23.0			23.3			36.5			(35.7		)
Total	98.5			93.9			114.5			50.3
Investment tax credit amortization	(1.0		)	(1.0		)	(3.1		)	(2.4		)
Income tax expense	$	65.5		$	64.1		$	99.2		$	28.3



Evergy Kansas Central
	Three Months Ended September 30						Year to Date September 30
	2019			2018			2019			2018
Current income taxes	(millions)
Federal	$	11.2		$	8.0		$	39.1		$	18.9
State	(1.2		)	(9.2		)	(2.4		)	(6.7		)
Total	10.0			(1.2		)	36.7			12.2
Deferred income taxes
Federal	4.6			12.3			(9.3		)	15.4
State	12.0			12.0			21.1			(47.6		)
Total	16.6			24.3			11.8			(32.2		)
Investment tax credit amortization	(0.8		)	(0.7		)	(2.3		)	(2.0		)
Income tax expense (benefit)	$	25.8		$	22.4		$	46.2		$	(22.0	)

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Evergy Metro^(a)
	Three Months Ended September 30						Year to Date September 30
	2019			2018			2019			2018
Current income taxes	(millions)
Federal	$	(2.2	)	$	20.7		$	32.1		$	43.5
State	3.9			6.8			9.3			11.6
Total	1.7			27.5			41.4			55.1
Deferred income taxes
Federal	26.3			(1.9		)	1.4			(23.4		)
State	4.5			2.7			1.9			49.4
Total	30.8			0.8			3.3			26.0
Investment tax credit amortization	(0.3		)	(0.3		)	(0.8		)	(0.8		)
Income tax expense	$	32.2		$	28.0		$	43.9		$	80.3

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

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.



Evergy
	Three Months Ended September 30				Year to Date September 30
	2019		2018		2019		2018
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Effect of:
COLI policies	(1.6	)	(2.4	)	(1.7	)	(2.4	)
State income taxes	4.0		4.6		3.9		4.7
Flow through depreciation for plant-related differences	(3.1	)	(1.5	)	(3.2	)	(1.6	)
Federal tax credits	(3.9	)	(7.5	)	(3.9	)	(7.5	)
Non-controlling interest	(0.4	)	(0.4	)	(0.4	)	(0.4	)
AFUDC equity	—		(0.1	)	—		(0.1	)
Amortization of federal investment tax credits	(0.5	)	(0.6	)	(0.5	)	(0.6	)
Changes in uncertain tax positions, net	(0.4	)	—		(0.3	)	—
State tax rate change	—		0.1		—		(9.5	)
Valuation allowance	—		—		(1.1	)	0.4
Stock compensation	0.3		—		0.2		(0.5	)
Officer compensation limitation	0.1		1.2		0.1		1.2
Other	(0.5	)	0.8		(0.3	)	0.4
Effective income tax rate	15.0	%	15.2	%	13.8	%	5.1	%

Three Months Ended
September 30 Year to Date
September 30
Great Plains Energy 2017 2016 2017 2016
Federal statutory income tax rate 35.0 % 35.0 % 35.0 % 35.0 %
Differences between book and tax depreciation not normalized (0.6 ) (0.3 ) (0.9 ) (0.2 )
Amortization of investment tax credits (1.5 ) (0.2 ) (1.9 ) (0.4 )
Federal income tax credits (7.8 ) (1.1 ) (10.0 ) (2.7 )
State income taxes 9.8
3.9
11.5
4.0
Transaction-related costs 54.1
1.0
70.8
1.0
Valuation allowance 1.7
—
2.4
—
Other (0.1 ) (0.1 ) 0.5
—
Effective income tax rate 90.6 % 38.2 % 107.4 % 36.7 %

Three Months Ended
September 30 Year to Date
September 30
KCP&L 2017 2016 2017 2016
Federal statutory income tax rate 35.0 % 35.0 % 35.0 % 35.0 %
Differences between book and tax depreciation not normalized (0.6 ) (0.5 ) (0.5 ) (0.3 )
Amortization of investment tax credits (0.4 ) (0.1 ) (0.4 ) (0.2 )
Federal income tax credits (3.1 ) (1.2 ) (2.6 ) (2.3 )
State income taxes 3.8
3.8
3.8
3.8
Valuation allowance 0.7
—
0.4
—
Other (0.1 ) (0.2 ) 0.1
(0.1 )
Effective income tax rate 35.3 % 36.8 % 35.8 % 35.9 %

~~The increase in Great Plains Energy's effective income~~Evergy's state tax rate change for ~~the three months ended and~~ year to date September 30, ~~2017, compared~~2018, is due to the ~~same periods~~revaluation of Evergy Kansas Central's state deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger.

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Evergy Kansas Central
	Three Months Ended September 30				Year to Date September 30
	2019		2018		2019		2018
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Effect of:
COLI policies	(2.8	)	(4.0	)	(3.0	)	(4.0	)
State income taxes	4.4		1.1		4.2		3.3
Flow through depreciation for plant-related differences	0.8		1.5		0.5		0.3
Federal tax credits	(6.2	)	(11.8	)	(6.1	)	(11.7	)
Non-controlling interest	(0.8	)	(0.6	)	(0.8	)	(0.7	)
AFUDC equity	(0.1	)	(0.1	)	(0.1	)	(0.1	)
Amortization of federal investment tax credits	(0.7	)	(0.8	)	(0.7	)	(0.8	)
Changes in uncertain tax positions, net	(0.9	)	0.1		(0.5	)	0.1
State tax rate change	—		—		—		(17.7	)
Valuation allowance	—		—		(0.5	)	0.6
Stock compensation	—		—		(0.1	)	(0.9	)
Officer compensation limitation	—		1.9		—		1.9
Other	(1.4	)	2.9		(0.7	)	1.3
Effective income tax rate	13.3	%	11.2	%	13.2	%	(7.4	)%

Evergy Kansas Central's state tax rate change for year to date September 30, 2018, is due to the revaluation of Evergy Kansas Central's state deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger.



Evergy Metro
	Three Months Ended September 30				Year to Date September 30
	2019		2018		2019		2018
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Effect of:
COLI policies	(0.1	)	(0.2	)	(0.1	)	(0.2	)
State income taxes	3.6		5.0		3.2		5.1
Flow through depreciation for plant-related differences	(6.1	)	(4.9	)	(6.1	)	(4.9	)
Federal tax credits	(1.3	)	(1.9	)	(1.4	)	(1.8	)
AFUDC equity	—		—		—		(0.1	)
Amortization of federal investment tax credits	(0.3	)	(0.4	)	(0.3	)	(0.4	)
State tax rate change	—		—		—		14.5
Officer compensation limitation	0.3		0.7		0.3		0.5
Other	0.4		(0.4	)	(0.4	)	(1.0	)
Effective income tax rate	17.5	%	18.9	%	16.2	%	32.7	%

Evergy Metro's state tax rate change for year to date September 30, 2018, is due to the revaluation of Evergy Metro's state deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger, partially offset by a revaluation of Evergy Metro's state deferred income tax assets and liabilities as a result of the enactment of Missouri state income tax reform in 2016, is primarily driven by significant transaction-related costs incurred in connection with the anticipated merger with Westar and the previous plan to acquire Westar that are not deductible for tax purposes.June 2018.

~~19. SEGMENTS AND RELATED INFORMATION~~15. LEASES

~~Great Plains Energy has one reportable segment~~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

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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 several agreements to purchase energy through renewable purchase power agreements accounted for as leases that commenced prior to the application of Topic 842.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 20 years, 1 to 20 years and 2 to 27 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 ~~method~~initial and subsequent lease liability. For leases that existed at the initial application of ~~internal reporting, which segregates reportable segments~~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 ~~products~~assumptions of the lease term and ~~services, management responsibility~~discount rate, as discussed above, and ~~regulation. The one reportable business segment~~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 electric utility, consisting of KCP&L, GMO's regulated utility operations and GMO Receivables Company. Other includes GMO activity other than its regulated utility operations, GPETHC and unallocated corporate charges including certain costs to achieve the anticipated merger with Westar. The summary of significant accounting policies applies to the reportable segment. Segment performance is evaluated based on net income (loss).being recovered in customer rates.

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The Evergy Companies’ lease expense is detailed in the following ~~tables reflect summarized financial information concerning Great Plains Energy's reportable segment.~~table.

Three Months Ended September 30, 2017
Electric
Utility
Other Eliminations
Great Plains
Energy
(millions)
Operating revenues $ 857.2
$ —
$ —
$ 857.2

Depreciation and amortization (92.7 ) —
—
(92.7 )
Interest (charges) income (49.1 ) 10.1
8.1
(30.9 )
Income tax expense (92.7 ) (9.6 ) —
(102.3 )
Net income (loss) 162.9
(152.4 ) —
10.5

��
Year to Date September 30, 2017
Electric
Utility
Other Eliminations
Great Plains
Energy
(millions)
Operating revenues $ 2,110.5
$ —
$ —
$ 2,110.5

Depreciation and amortization (277.7 ) —
—
(277.7 )
Interest (charges) income (149.3 ) (117.6 ) 24.1
(242.8 )
Income tax (expense) benefit (142.6 ) 55.4
—
(87.2 )
Net income (loss) 247.4
(253.5 ) —
(6.1 )

Three Months Ended September 30, 2016
Electric
Utility
Other Eliminations
Great Plains
Energy
(millions)
Operating revenues $ 856.8
$ —
$ —
$ 856.8

Depreciation and amortization (86.4 ) —
—
(86.4 )
Interest (charges) income (49.3 ) (26.4 ) 8.1
(67.6 )
Income tax (expense) benefit (95.9 ) 13.2
—
(82.7 )
Net income (loss) 161.1
(27.5 ) —
133.6

Year to Date September 30, 2016
Electric
Utility
Other Eliminations
Great Plains
Energy
(millions)
Operating revenues $ 2,099.7
$ —
$ —
$ 2,099.7

Depreciation and amortization (256.9 ) —
—
(256.9 )
Interest (charges) income (147.4 ) (128.4 ) 24.1
(251.7 )
Income tax (expense) benefit (160.2 ) 48.7
—
(111.5 )
Net income (loss) 278.4
(86.4 ) —
192.0



Three Months Ended September 30, 2019	Evergy		Evergy Kansas Central		Evergy Metro
Finance lease costs	(millions)
Amortization of right-of-use assets	$	2.3	$	2.4	$	—
Interest on lease liabilities	1.0		0.9		—
Operating lease costs	4.8		2.0		2.4
Short-term lease costs	0.8		0.3		0.5
Variable lease costs for renewable purchase power agreements	71.3		30.3		29.0
Total lease costs	$	80.2	$	35.9	$	31.9

Year to Date September 30, 2019	Evergy		Evergy Kansas Central		Evergy Metro
Finance lease costs	(millions)
Amortization of right-of-use assets	$	4.0	$	3.9	$	0.1
Interest on lease liabilities	2.3		2.1		0.1
Operating lease costs	17.9		9.9		6.9
Short-term lease costs	2.3		0.6		1.6
Variable lease costs for renewable purchase power agreements	222.1		94.3		91.0
Total lease costs	$	248.6	$	110.8	$	99.7

Electric
Utility
Other Eliminations
Great Plains
Energy
September 30, 2017 (millions)
Assets $ 11,586.7
$ 1,244.0
$ (401.8 ) $ 12,428.9

Capital expenditures ^(a)
392.5
—
—
392.5

December 31, 2016

Assets $ 11,444.2
$ 2,461.3
$ (335.5 ) $ 13,570.0

Capital expenditures ^(a)
609.4
—
—
609.4

^(a)~~Capital expenditures reflect year~~Supplemental cash flow information related to ~~date amounts for~~ the ~~periods presented.~~

~~20. PLANT TO BE RETIRED, NET~~

~~When Great Plains Energy and KCP&L retire utility plant, the original cost, net of salvage,~~Evergy Companies' leases 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~~detailed in the ~~near term, the cost of the asset and related accumulated depreciation is~~following table.



Year to Date September 30, 2019	Evergy		Evergy Kansas Central		Evergy Metro
Cash paid for amounts included in the measurement of lease liabilities:	(millions)
Operating cash flows from operating leases	$	17.4	$	10.2	$	7.2
Operating cash flows from finance leases	2.0		1.9		0.1
Financing cash flows from finance leases	3.3		3.2		0.1
Right-of-use assets obtained in exchange for new operating lease liabilities	3.0		0.6		2.4
Right-of-use assets obtained in exchange for new finance lease liabilities	2.3		2.3		—

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~~recognized as a separate asset as a probable abandonment. If the asset is still~~Finance Leases

Right-of-use assets for finance leases are included in ~~service, the net amount is classified as~~property, plant ~~to be retired, net~~and equipment on the ~~consolidated~~Evergy Companies’ balance sheets. ~~If the asset is no longer~~Lease liabilities for finance leases are included in ~~service, the net amount is classified in regulatory assets on the consolidated balance sheets.~~

~~Great Plains Energy~~other current and ~~KCP&L 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~~other long-term liabilities.Payments for the abandonment is dependent upon amounts that may be recovered through regulated rates, including any return. An impairment charge, if any, would equal the difference between the remaining net book value of the asset and the present value of the future revenues expected from the asset.

In June 2017, Great Plains Energy and KCP&L announced the expected retirement of certain older generating units, including GMO's Sibley No. 3 Unit, over the next several years. As of September 30, 2017, Great Plains Energy has determined that Sibley No. 3 Unit meets the criteria to be considered probable of abandonment and has classified its remaining net book value of $146.3 million within plant to be retired, net on its consolidated balance sheet. The Company is currently allowed a full recovery of and a full return on Sibley No. 3 Unit in rates and has concluded that no impairment is requiredfinance leases as of September 30, ~~2017.~~2019, are detailed in the following table.



	Evergy			Evergy Kansas Central			Evergy Metro
	(millions)
October 2019 through December 2019	$	1.8		$	1.7		$	0.1
2020	7.0			6.6			0.2
2021	6.5			6.0			0.2
2022	5.7			5.2			0.2
2023	4.8			4.4			0.2
After 2023	48.4			46.4			1.0
Total finance lease payments	74.2			70.3			1.9
Amounts representing imputed interest	(25.9		)	(24.8		)	(0.5		)
Present value of lease payments	48.3			45.5			1.4
Less: current portion	(4.8		)	(4.6		)	(0.1		)
Total long-term obligations under finance leases	$	43.5		$	40.9		$	1.3

Weighted-average remaining lease term (years)	15.3			15.7			8.9
Weighted-average discount rate	5.8		%	5.7		%	7.6		%

Estimated future commitments under finance leases as of December 31, 2018, are detailed in the following table.



	Evergy			Evergy Kansas Central			Evergy Metro
	(millions)
2019	$	6.4		$	6.0		$	0.2
2020	5.8			5.4			0.2
2021	5.3			4.9			0.2
2022	4.7			4.3			0.2
2023	4.0			3.6			0.2
After 2023	48.6			46.4			1.1
Total finance lease payments	74.8			70.6			2.1
Amounts representing imputed interest	(25.8		)	(24.6		)	(0.6		)
Present value of net minimum lease payments under finance leases	49.0			46.0			1.5
Less: current portion	(3.9		)	(3.7		)	(0.1		)
Total long-term obligations under finance leases	$	45.1		$	42.3		$	1.4

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Operating Leases

Right-of-use assets for operating leases are included in other long-term assets on the Evergy Companies’ balance sheets. Lease liabilities for operating leases are included in other current and other long-term liabilities.Lease payments for operating leases as of September 30, 2019, are detailed in the following table.



	Evergy			Evergy Kansas Central			Evergy Metro
	(millions)
October 2019 through December 2019	$	5.0		$	2.8		$	2.7
2020	18.9			10.3			10.7
2021	15.4			7.4			10.1
2022	12.4			5.2			9.3
2023	9.4			2.7			8.8
After 2023	52.5			2.8			91.3
Total operating lease payments	113.6			31.2			132.9
Amounts representing imputed interest	(18.9		)	(2.1		)	(36.5		)
Present value of lease payments	94.7			29.1			96.4
Less: current portion	(15.2		)	(9.2		)	(6.8		)
Total long-term obligations under operating leases	$	79.5		$	19.9		$	89.6

Weighted-average remaining lease term (years)	9.1			3.7			15.9
Weighted-average discount rate	3.9		%	3.4		%	4.2		%

Estimated future commitments under operating leases as of December 31, 2018, are detailed in the following table.



	Evergy		Evergy Kansas Central		Evergy Metro
	(millions)
2019	$	24.2	$	14.0	$	10.2
2020	20.7		10.1		10.6
2021	18.4		8.1		10.3
2022	15.2		5.2		10.0
2023	12.4		2.8		9.6
After 2023	95.0		3.1		91.8
Total operating lease payments	$	185.9	$	43.3	$	142.5

ITEM 2. 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) should be read in conjunction with the consolidated financial statements and accompanying notes in this combined Quarterly Report on Form 10-Q and the Evergy Companies' combined 2018 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.

~~GREAT PLAINS ENERGY INCORPORATED~~

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EVERGY, INC.

EXECUTIVE SUMMARY

~~Description of Business~~

~~Great Plains Energy~~Evergy is a public utility holding company incorporated in 2017 and ~~does not own or operate any~~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 ~~assets other than~~operations, Evergy Kansas South, formerly known as Kansas Gas and Electric Company.

Evergy Metro, formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers in the ~~stock~~states of ~~its subsidiaries~~Missouri and ~~cash and cash equivalents.~~Kansas.

~~Great Plains Energy's sole reportable business segment is electric utility. Electric utility consists of~~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, 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 ~~regulated utility, GMO's regulated utility operations~~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 ~~GMO Receivables~~affiliates of AEP and Berkshire Hathaway Energy Company. ~~Electric utility has~~ 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 conducting business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately ~~6,500~~14,700 MWs of owned generating capacity and ~~engages~~renewable purchased power agreements and engage in the generation, transmission, distribution and sale of electricity to approximately ~~864,400~~1.6 million customers in the states of ~~Missouri~~Kansas and ~~Kansas. Electric utility's retail electricity rates are comparable to the national average of investor-owned utilities.~~Missouri. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).

Great Plains ~~Energy's corporate~~Energy and ~~other~~Evergy Kansas Central Merger

Evergy 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 and did not conduct any business activities ~~not included in the sole reportable business segment includes GMO activity~~ other than those required for its ~~regulated utility operations, GPETHC~~formation and ~~unallocated corporate charges including certain costs to achieve the anticipated merger with Westar.~~

~~Anticipated Merger with Westar Energy, Inc.~~

~~On July 9, 2017, Great Plains Energy entered into an Amended Merger Agreement~~matters contemplated by ~~and among Great Plains Energy, Westar, Holdco, and Merger Sub. Pursuant to~~ the Amended Merger ~~Agreement, subject to the satisfaction or waiver of certain conditions, Great Plains Energy will merge~~Agreement. On June 4, 2018, in accordance with and into Holdco, with Holdco surviving such merger, and Merger Sub will merge with and into Westar, with Westar surviving such merger. Upon closing, pursuant to the Amended Merger Agreement, each outstanding share of Great Plains Energy's and Westar's common stock will be converted into the right to receive 0.5981 and 1.0, respectively, of validly issued, fully paid and nonassessable shares of common stock, no par value, of Holdco. Following the mergers, Holdco, with a new name that has yet to be established, will be the parent of Great Plains Energy's direct subsidiaries, including KCP&L, and Westar.

The anticipated merger has been structured as a merger of equals in a tax-free exchange of shares that involves no premium paid or received with respect to either Great Plains Energy or Westar. Following the completion of the anticipated merger, Westar shareholders will own approximately 52.5 percent and Great Plains Energy shareholders will own approximately 47.5 percent of the combined company.

~~In the third quarter of 2017, as a result of~~ the Amended Merger Agreement, Great Plains Energy ~~redeemed~~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. As a result of the closing 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 determined to be the accounting acquirer 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.

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Common Stock Repurchase Program

In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock. Although this repurchase authorization has no expiration date, Evergy expects to repurchase approximately 60 million shares by mid-2020. Evergy is utilizing and plans to continue to utilize various methods to effectuate the share repurchase program, including but not limited to a series of transactions that may include ASRs, open market transactions or other means, subject to market conditions and applicable legal requirements. The repurchase program may be suspended, discontinued or resumed at any time. Year to date September 30, 2019, Evergy had total repurchases of common stock of $1,628.7 million and had repurchased 27.5 million shares under the repurchase program. Since its ~~$4.3~~inception, Evergy has made total repurchases of common stock of approximately $2.7 billion and has repurchased 43.9 million shares under the repurchase program. These repurchase totals include shares repurchased under ASR agreements, one of ~~unsecured senior notes issued in March 2017 and its Series B Preferred Stock issued in October 2016.~~which had not reached final settlement as of September 30, 2019.

See Note 213 to the consolidated financial statements for more information regarding ~~the anticipated merger and redemption of acquisition financing.~~

~~Expected Plant Retirements~~

In June 2017, Great Plains Energy and KCP&L announced plans to retire KCP&L's Montrose Station and GMO's Sibley Station by December 31, 2018 and GMO's Lake Road Unit 4/6 by December 31, 2019. The decision to retire these generating units was primarily driven by the age of the plants, expected environmental compliance costs and expected future generation capacity needs. See Note 20 to the consolidated financial statements for more information regarding the retirement of Sibley No. 3 Unit.

~~Earnings Overview~~

Great Plains Energy had earnings available for common shareholders of $3.4 million or $0.02 per share for the three months ended September 30, 2017, compared to $132.7 million or $0.86 per share for the same period in 2016 driven by higher depreciation expense; a write-off of deferred offering fees related to Series A Preferred

~~Table of Contents~~

Stock; a loss on the settlement of the Series B Preferred Stock dividend make-whole provisions; a loss on extinguishment of debt related to the redemption of Great Plains Energy's $4.3 billion senior notes; higher income tax expense and increased preferred stock dividend requirements and redemption premium; partially offset by a decrease in utility operating and maintenance expense; a decrease in costs to achieve the anticipated merger with Westar; an increase in interest income and a decrease in interest charges.

~~In addition, a higher number of average shares outstanding due to Great Plains Energy's registered public offering of 60.5 million shares of~~Evergy's common stock ~~in October 2016 diluted earnings per share by $0.01 for the three months ended September 30, 2017.~~repurchase program.

Great Plains Energy had a loss available for common shareholders of $43.4 million or $0.20 per share year to date September 30, 2017, compared to earnings of $190.3 million or $1.23 per share for the same period in 2016 driven by lower gross margin; an increase in costs to achieve the anticipated merger with Westar; higher depreciation expense; a write-off of deferred offering fees related to Series A Preferred Stock; a loss on the settlement of the Series B Preferred Stock dividend make-whole provisions; a loss on extinguishment of debt related to the redemption of Great Plains Energy's $4.3 billion senior notes and increased preferred stock dividend requirements and redemption premium; partially offset by an increase in interest income; a decrease in interest charges and lower income tax expense.

In addition, a higher number of average shares outstanding due to Great Plains Energy's registered public offering of 60.5 million shares of common stock in October 2016 diluted the loss per share by $0.08 year to date September 30, 2017.

For additional information regarding the change in earnings (loss), refer to the Great Plains Energy Results of Operations and the Electric Utility Results of Operations sections within this Management's Discussion and Analysis of Financial Condition and Results of Operations. Gross margin is a non-GAAP financial measure. See the explanation of gross margin under Great Plains Energy's Results of Operations.

~~Adjusted Earnings (Non-GAAP) and Adjusted Earnings Per Share (Non-GAAP)~~

Great Plains Energy's adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) for the three months ended and year to date September 30, 2017, were $162.9 million or $1.05 per share and $249.8 million or $1.61 per share, respectively. Great Plains Energy's adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) for the three months ended and year to date September 30, 2016, were $154.2 million or $1.00 per share and $265.8 million or $1.72 per share, respectively. In addition to earnings (loss) available for common shareholders and diluted earnings (loss) per common share, Great Plains Energy's management uses adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) to evaluate earnings and earnings per share without the impact of the anticipated merger with Westar. Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) excludes certain costs, expenses, gains, losses and the per share dilutive effect of equity issuances resulting from the anticipated merger and the previous plan to acquire Westar. This information is intended to enhance an investor's overall understanding of results. Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) are used internally to measure performance against budget and in reports for management and the Great Plains Energy Board. Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report.

~~Table of Contents~~

The following tables provide a reconciliation between earnings (loss) available for common shareholders and diluted earnings (loss) per common share as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP):

Reconciliation of GAAP to Non-GAAP Earnings Earnings per diluted share
Three Months Ended September 30 2017 2016 2017 2016
(millions, except per share amounts)
Earnings available for common shareholders $ 3.4
$ 132.7
$ 0.02
$ 0.86
Costs to achieve the anticipated merger with Westar:
Operating expense, pre-tax ^(a)
(2.4 ) 14.4
(0.02 ) 0.09
Financing, pre-tax ^(b)
8.2
14.3
0.05
0.09
Mark-to-market impacts of interest rate swaps, pre-tax ^(c)
(28.2 ) 1.8
(0.18 ) 0.01
Interest income, pre-tax ^(d)
(4.9 ) —
(0.03 ) —
Loss on Series B Preferred Stock dividend make-whole provisions, pre-tax ^(e)
67.7
—
0.44
—
Loss on extinguishment of debt, pre-tax ^(f)
82.8
—
0.53
—
Write-off of Series A deferred offering expenses, pre-tax ^(g)
15.0
—
0.10
—
Income tax expense (benefit) ^(h)
14.2
(9.6 ) 0.08
(0.05 )
Preferred stock ⁽ⁱ⁾
7.1
0.6
0.05
—
Impact of October 2016 share issuance ^(j)
N/A
N/A
0.01
—
Adjusted earnings (non-GAAP) $ 162.9
$ 154.2
$ 1.05
$ 1.00
Average Shares Outstanding
Shares used in calculating diluted earnings per common share 215.7
154.9
Adjustment for October 2016 share issuance ^(j)
(60.5 ) —
Shares used in calculating adjusted earnings per share (non-GAAP) 155.2
154.9

^(a)Reflects legal, advisory and consulting fees, certain severance expenses and a fair value adjustment to the forward contract to issue Series A Preferred Stock and are included in Costs to achieve the anticipated merger with Westar on the consolidated statements of comprehensive income (loss).

^(b)Reflects fees and interest incurred to finance the acquisition of Westar under the Original Merger Agreement, including fees for a bridge term loan facility and interest on Great Plains Energy's $4.3 billion senior notes issued in March 2017 and are included in Interest charges on the consolidated statements of comprehensive income (loss).

^(c)Reflects the mark-to-market impacts of interest rate swaps entered into in connection with financing the acquisition of Westar under the Original Merger Agreement and is included in Interest charges on the consolidated statements of comprehensive income (loss).

^(d) Reflects interest income earned on the proceeds from Great Plains Energy's October 2016 equity offerings and March 2017 issuance of senior notes to fund the majority of the cash consideration for the acquisition of Westar under the Original Merger Agreement and is included in Non-operating income on the consolidated statements of comprehensive income (loss).

^(e) Reflects the loss on the settlement of the Series B Preferred Stock dividend make-whole provisions in connection with the redemption of Great Plains Energy's Series B Preferred Stock in August 2017 and is included within Loss on Series B Preferred Stock dividend make-whole provisions on the consolidated statements of comprehensive income (loss).

^(f)Reflects the loss on extinguishment of debt due to Great Plains Energy's redemption of its $4.3 billion senior notes in July 2017 and is included within Loss on extinguishment of debt on the consolidated statements of comprehensive income (loss).

^(g) Reflects the write-off of deferred offering fees as a result of the termination of the stock purchase agreement for $750 million of Series A Preferred Stock between Great Plains Energy and OMERS and is included within Non-operating expenses on the consolidated statements of comprehensive income (loss).

^(h) ~~Reflects an income tax effect calculated at a 38.9% statutory rate, with the exception of certain non-deductible legal and financing fees.~~

⁽ⁱ⁾ Reflects reductions to earnings available for common shareholders related to preferred stock dividend requirements for Great Plains Energy's Series B Preferred Stock issued in October 2016 and the redemption premiums associated with the redemption of the Series B Preferred Stock in August 2017 and cumulative preferred stock in August 2016 and are included in Preferred stock dividend requirements and redemption premium on the consolidated statements of comprehensive income (loss).

^(j) ~~Reflects the average share impact of Great Plains Energy's issuance of 60.5 million shares of common stock in October 2016.~~

~~Table of Contents~~

Reconciliation of GAAP to Non-GAAP Earnings (loss) Earnings (loss) per diluted share
Year to Date September 30 2017 2016 2017 2016
(millions, except per share amounts)
Earnings (loss) available for common shareholders $ (43.4 ) $ 190.3
$ (0.20 ) $ 1.23
Costs to achieve the anticipated merger with Westar:
Operating expense, pre-tax ^(a)
24.4
19.4
0.16
0.13
Financing, pre-tax ^(b)
85.5
19.0
0.55
0.12
Mark-to-market impacts of interest rate swaps, pre-tax ^(c)
1.9
78.8
0.01
0.51
Interest income, pre-tax ^(d)
(20.1 ) —
(0.13 ) —
Loss on Series B Preferred Stock dividend make-whole provisions, pre-tax ^(e)
124.8
—
0.80
—
Loss on extinguishment of debt, pre-tax ^(f)
82.8
—
0.54
—
Write-off of Series A deferred offering expenses, pre-tax ^(g)
15.0
—
0.10
—
Income tax benefit ^(h)
(58.4 ) (42.3 ) (0.38 ) (0.27 )
Preferred stock ⁽ⁱ⁾
37.3
0.6
0.24
—
Impact of October 2016 share issuance ^(j)
N/A
N/A
(0.08 ) —
Adjusted earnings (non-GAAP) $ 249.8
$ 265.8
$ 1.61
$ 1.72
Average Shares Outstanding
Shares used in calculating diluted earnings (loss) per common share 215.5 154.9
Adjustment for October 2016 share issuance ^(j)
(60.5) —
Shares used in calculating adjusted earnings per share (non-GAAP) 155.0 154.9

^(a)Reflects legal, advisory and consulting fees and certain severance expenses and are included in Costs to achieve the anticipated merger with Westar on the consolidated statements of comprehensive income (loss).

^(f) Reflects the loss on extinguishment of debt due to Great Plains Energy's redemption of its $4.3 billion senior notes in July 2017 and is included within Loss on extinguishment of debt on the consolidated statements of comprehensive income (loss).

^(h) ~~Reflects an income tax effect calculated at a 38.9% statutory rate, with the exception of certain non-deductible legal and financing fees.~~

^(j) ~~Reflects the average share impact of Great Plains Energy's issuance of 60.5 million shares of common stock in October 2016.~~

Regulatory Proceedings

See Note 65 to the consolidated financial statements for information regarding regulatory proceedings.

~~Impact of Recently Issued Accounting Standards~~Earnings Overview

~~See Note 1~~The following table summarizes Evergy's net income and diluted EPS.



	Three Months Ended September 30						Year to Date September 30
	2019		2018		Change		2019		2018		Change
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	366.8	$	355.0	$	11.8	$	606.0	$	517.3	$	88.7
Earnings per common share, diluted	1.56		1.32		0.24		2.49		2.61		(0.12		)

Net income attributable to Evergy, Inc. increased for the three months ended September 30, 2019, compared to the ~~consolidated financial statements~~same period in 2018, primarily due to new retail rates for Evergy Kansas Central, Evergy Metro and Evergy Missouri West effective in 2018, net of a provision for rate refund recorded in the third quarter of 2018 for the change in corporate income tax rate caused by the Tax Cut and Jobs Act (TCJA).

Diluted EPS increased for the three months ended September 30, 2019, compared to the same period in 2018, primarily due to the increase in net income attributable to Evergy, Inc. discussed above and a lower number of diluted weighted average common shares outstanding in 2019, which increased EPS by $0.20 for the three months ended September 30, 2019. The lower number of diluted weighted average common shares in 2019 was due to shares repurchased under Evergy's common stock repurchase program.

Net income attributable to Evergy, Inc. increased year to date September 30, 2019, compared to the same period in 2018, 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 coal-fired generating units and lower administrative and general expenses, partially offset by lower retail sales driven by unfavorable weather and higher depreciation expense.

Diluted EPS decreased year to date September 30, 2019, compared to the same period in 2018, primarily due to a higher number of diluted weighted average common shares outstanding in 2019, which diluted EPS by $0.58 year to date September 30, 2019, partially offset by the increase to net income attributable to Evergy, Inc. discussed above. The higher number of diluted weighted average common shares in 2019 was due to the issuance of common shares to shareholders as a result of the merger in June 2018, partially offset by shares repurchased under Evergy's common stock repurchase program.

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For additional information regarding the ~~impact~~change in net income, refer to the Evergy Results of ~~recently issued accounting standards.~~Operations section within this MD&A.

Adjusted Earnings (non-GAAP) and Adjusted Earnings Per Share (non-GAAP)

Evergy's adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) for the three months ended and year to date September 30, 2019, were $369.8 million or $1.57 per share and $621.2 million or $2.55 per share, respectively. For the three months ended and year to date September 30, 2018, Evergy's adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) were $370.9 million and $1.38 per share and $641.9 million or $2.36 per share, respectively. In addition to net income attributable to Evergy, Inc., diluted earnings per common share, pro forma net income attributable to Evergy, Inc. and pro forma diluted earnings per common share as prepared in accordance with GAAP, Evergy's management uses adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) to evaluate earnings and earnings per share without the non-recurring costs and/or benefits resulting from rebranding, voluntary severance and significant items related to the Great Plains Energy and Evergy Kansas Central merger.

Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) are intended to enhance an investor's overall understanding of results. Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) are used internally to measure performance against budget and in reports for management and the Evergy Board. Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report.

The following tables provide a reconciliation between net income attributable to Evergy, Inc., diluted earnings per common share, pro forma net income attributable to Evergy, Inc. and pro forma diluted earnings per common share as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP).



	Earnings (Loss)			Earnings (Loss) per Diluted Share		Earnings (Loss)			Earnings (Loss) per Diluted Share
Three Months Ended September 30	2019					2018
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	366.8		$	1.56	$	355.0		$	1.32
Pro forma adjustments^(a):
Non-recurring merger costs and other	—			—		3.9			0.02
Pro forma net income attributable to Evergy, Inc.	$	366.8		$	1.56	$	358.9		$	1.34
Non-GAAP reconciling items:
Rebranding costs, pre-tax^(b)	3.6			0.01		—			—
Voluntary severance costs, pre tax^(c)	0.4			—		16.3			0.06
Income tax benefit ^(g)	(1.0		)	—		(4.3		)	(0.02		)
Adjusted earnings (non-GAAP)	$	369.8		$	1.57	$	370.9		$	1.38

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	Earnings (Loss)			Earnings (Loss) per Diluted Share			Earnings (Loss)			Earnings (Loss) per Diluted Share
Year to Date September 30	2019						2018
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	606.0		$	2.49		$	517.3		$	2.61
Pro forma adjustments^(a):
Great Plains Energy earnings prior to merger	—			—			94.4			0.35
Great Plains Energy shares prior to merger	n/a			—			n/a			(0.71		)
Non-recurring merger costs and other	—			—			82.8			0.30
Pro forma net income attributable to Evergy, Inc.	$	606.0		$	2.49		$	694.5		$	2.55
Non-GAAP reconciling items:
Rebranding costs, pre-tax^(b)	4.7			0.02			—			—
Voluntary severance costs, pre tax^(c)	15.1			0.06			16.3			0.06
Composite tax rate change^(d)	—			—			(52.6		)	(0.19		)
Deferral of merger transition costs, pre-tax^(e)	—			—			(28.5		)	(0.10		)
Inventory write-off at retiring generating units, pre-tax^(f)	—			—			12.3			0.04
Income tax expense (benefit)^(g)	(4.6		)	(0.02		)	(0.1		)	—
Adjusted earnings (non-GAAP)	$	621.2		$	2.55		$	641.9		$	2.36


^(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' Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018 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 voluntary severance costs incurred associated with certain 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 and Units 1 and 2 at Gordon Evans Energy Center, which were committed to be retired upon the consummation of the merger, 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 ~~latest~~most recent refueling outage began onin September ~~10, 2016~~2019 and ~~ended on~~the unit is expected to return to service in November ~~21, 2016.~~2019. Wolf Creek's next refueling outage is planned to begin in the first quarter of ~~2018.~~2021.

ENVIRONMENTAL MATTERS

See Note 1311 to the consolidated financial statements for information regarding environmental matters.

RELATED PARTY TRANSACTIONS

See Note 1512 to the consolidated financial statements for information regarding related party transactions.

~~GREAT PLAINS ENERGY~~

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EVERGY RESULTS OF OPERATIONS

The following table summarizes ~~Great Plains Energy's~~Evergy's comparative results of operations.

Three Months Ended
September 30

Year to Date
September 30
2017 2016 2017 2016
(millions)
Operating revenues $ 857.2
$ 856.8
$ 2,110.5
$ 2,099.7
Fuel and purchased power (180.0 ) (184.1 ) (464.0 ) (462.2 )
Transmission (29.1 ) (23.8 ) (80.4 ) (64.5 )
Other operating expenses (251.9 ) (266.2 ) (734.2 ) (742.6 )
Costs to achieve the anticipated merger with Westar 2.4
(14.4 ) (24.4 ) (19.4 )
Depreciation and amortization (92.7 ) (86.4 ) (277.7 ) (256.9 )
Operating income 305.9
281.9
529.8
554.1
Non-operating income and expenses (12.2 ) 1.3
(0.3 ) (1.0 )
Loss on Series B Preferred Stock dividend make-whole provisions (67.7 ) —
(124.8 ) —
Loss on extinguishment of debt (82.8 ) —
(82.8 ) —
Interest charges (30.9 ) (67.6 ) (242.8 ) (251.7 )
Income tax expense (102.3 ) (82.7 ) (87.2 ) (111.5 )
Income from equity investments 0.5
0.7
2.0
2.1
Net income (loss) 10.5
133.6
(6.1 ) 192.0
Preferred dividends and redemption premium (7.1 ) (0.9 ) (37.3 ) (1.7 )
Earnings (loss) available for common shareholders $ 3.4
$ 132.7
$ (43.4 ) $ 190.3
Reconciliation of gross margin to operating revenues:
Operating revenues $ 857.2
$ 856.8
$ 2,110.5
$ 2,099.7
Fuel and purchased power (180.0 ) (184.1 ) (464.0 ) (462.2 )
Transmission (29.1 ) (23.8 ) (80.4 ) (64.5 )
Gross margin ^(a)
$ 648.1
$ 648.9
$ 1,566.1
$ 1,573.0



	Three Months Ended September 30									Year to Date September 30
	2019			Change			2018			2019			Change			2018
	(millions)
Operating revenues	$	1,577.6		$	(4.9	)	$	1,582.5		$	4,016.2		$	940.1		$	3,076.1
Fuel and purchased power	357.3			(26.4		)	383.7			978.9			230.0			748.9
SPP network transmission costs	62.4			4.0			58.4			188.7			(5.7		)	194.4
Other operating expenses	403.1			(10.3		)	413.4			1,183.5			245.8			937.7
Depreciation and amortization	216.1			22.2			193.9			645.1			233.5			411.6
Income from operations	538.7			5.6			533.1			1,020.0			236.5			783.5
Other expense, net	(15.1		)	9.2			(24.3		)	(32.5		)	11.2			(43.7		)
Interest expense	90.8			1.7			89.1			277.3			86.0			191.3
Income tax expense	65.5			1.4			64.1			99.2			70.9			28.3
Equity in earnings of equity method investees, net of income taxes	3.6			1.6			2.0			7.9			3.2			4.7
Net income	370.9			13.3			357.6			618.9			94.0			524.9
Less: Net income attributable to noncontrolling interests	4.1			1.5			2.6			12.9			5.3			7.6
Net income attributable to Evergy, Inc.	$	366.8		$	11.8		$	355.0		$	606.0		$	88.7		$	517.3


^(a)	~~Gross margin is a non-GAAP financial measure. See explanation of gross margin below.~~

~~Electric~~

Evergy Utility ~~Segment~~

~~Electric utility's net income increased $1.8 million for the three months ended September 30, 2017, compared to the same period in 2016 primarily due to:~~

a $0.8 million decrease in gross margin driven by cooler weather; partially offset by an increase in weather-normalized retail demand, new retail rates, an increase in Missouri Energy Efficiency Investment Act (MEEIA) throughput disincentive and an increase in other margin items;

~~a $7.3 million decrease in other operating expenses primarily driven by a decrease in plant operating and maintenance expenses; and~~

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~~a $6.3 million increase in depreciation and amortization expense primarily driven by capital additions.~~

~~Electric utility's net income decreased $31.0 million year to date September 30, 2017, compared to the same period in 2016 primarily due to:~~

a $6.9 million decrease in gross margin driven by milder weather and a decrease in MEEIA throughput disincentive; partially offset by an increase in weather-normalized retail demand, new retail rates, an increase in the recovery of program costs for energy efficiency programs under MEEIA and an increase in other margin items;

a $0.8 million decrease in other operating expenses primarily driven by a decrease in plant operating and maintenance expenses; partially offset by an increase in program costs for energy efficiency programs under MEEIA;

~~$15.4 million of costs to achieve the anticipated merger with Westar;~~

~~a $20.8 million increase in depreciation and amortization expense primarily driven by capital additions; and~~

~~a $17.6 million decrease in income tax expense primarily due to decreased pre-tax income.~~

~~Corporate and Other Activities~~

~~Great Plains Energy's corporate and other activities loss increased $131.1 million for the three months ended September 30, 2017, compared to the same period in 2016 primarily due to:~~

~~a $14.9 million decrease in operating expenses for costs to achieve the anticipated merger with Westar;~~

~~a $36.1 million decrease in interest charges due to:~~


◦	a $6.1 million decrease in costs incurred to finance the acquisition of Westar under the Original Merger Agreement including $13.9 million of fees and expenses for a bridge term loan facility incurred in the third quarter of 2016; partially offset by $8.2 million of interest on Great Plains Energy's $4.3 billion senior notes issued in March 2017 and redeemed in July 2017; and


◦	a $30.0 million increase in the mark-to-market gain on deal contingent interest rate swaps entered into in June 2016 to hedge against interest rate fluctuations prior to Great Plains Energy's issuance of $4.3 billion senior notes in March 2017;

a $4.9 million increase in non-operating income due to interest income earned on increased cash and cash equivalents at Great Plains Energy in 2017 related to the proceeds from Great Plains Energy's October 2016 common stock and Series B Preferred Stock offerings and March 2017 issuance of senior notes;

a $15.0 million increase in non-operating expenses due to the write-off of previously deferred offering fees as a result of the termination of the stock purchase agreement for $750 million of Series A Preferred Stock between Great Plains Energy and OMERS;

a $67.7 million loss on the settlement of the Series B Preferred Stock dividend make-whole provisions in connection with the redemption of Great Plains Energy's Series B Preferred Stock in August 2017;

~~an $82.8 million loss on extinguishment of debt due to Great Plains Energy's redemption of its $4.3 billion senior notes in July 2017;~~

~~a $23.2 million increase in income tax expense related to these items; and~~

a $6.5 million increase in reductions to earnings available for common shareholders primarily due to preferred stock dividend requirements and the redemption premium for Great Plains Energy's Series B Preferred Stock issued in October 2016 and redeemed in August 2017.

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~~Great Plains Energy's corporate and other activities loss increased $202.7 million year to date September 30, 2017, compared to the same period in 2016 primarily due to:~~

~~a $10.5 million decrease in operating expenses for costs to achieve the anticipated merger with Westar;~~

~~a $10.4 million decrease in interest charges due to:~~


◦	a $76.9 million increase in the mark-to-market gain on deal contingent interest rate swaps entered into in June 2016 to hedge against interest rate fluctuations prior to Great Plains Energy's issuance of $4.3 billion senior notes in March 2017; partially offset by


◦	a $66.5 million increase in costs incurred to finance the acquisition of Westar under the Original Merger Agreement including $59.1 million of interest on Great Plains Energy's $4.3 billion senior notes issued in March 2017 and redeemed in July 2017 and an increase of $7.9 million of fees and expenses for a bridge term loan facility;

a $20.1 million increase in non-operating income due to interest income earned on increased cash and cash equivalents at Great Plains Energy in 2017 related to the proceeds from Great Plains Energy's October 2016 common stock and Series B Preferred Stock offerings and March 2017 issuance of senior notes;

a $124.8 million loss on the settlement of the Series B Preferred Stock dividend make-whole provisions in connection with the redemption of Great Plains Energy's Series B Preferred Stock in August 2017;

~~an $82.8 million loss on extinguishment of debt due to Great Plains Energy's redemption of its $4.3 billion senior notes in July 2017;~~

~~a $10.1 million decrease in income tax expense related to these items; and~~

a $36.7 million increase in reductions to earnings available for common shareholders primarily due to preferred stock dividend requirements and the redemption premium for Great Plains Energy's Series B Preferred Stock issued in October 2016 and redeemed in August 2017.

Gross Margin and MWh Sales

~~Gross~~Utility gross margin is a financial measure that is not calculated in accordance with GAAP. ~~Gross~~Utility gross margin, as used by ~~Great Plains Energy and KCP&L,~~the Evergy Companies, is defined as operating revenues less fuel and purchased power costs and ~~transmission.~~amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power ~~and certain transmission~~ costs, offset by wholesale sales margin, are subject to recovery through cost adjustment mechanisms. As a result, changes in fuel and purchased power costs are offset in operating revenues ~~increase or decrease~~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 Regional Transmission Organization (RTO). As with fuel and purchased power costs, changes in ~~relation~~SPP network transmission costs are mostly reflected in the prices charged to ~~a significant portion of these expenses.~~ customers with minimal impact on net income.

Management believes that utility gross margin provides a meaningful basis for evaluating ~~electric utility's~~the Evergy Companies' operations across periods compared with operating revenues because utility gross margin excludes the revenue effect of fluctuations in these expenses. ~~Gross~~Utility gross margin is used internally to measure performance against budget and in reports for management and the ~~Great Plains Energy~~Evergy Board. The Evergy Companies' definition of utility gross margin may differ from similar terms used by other companies.

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~~ELECTRIC UTILITY RESULTS OF OPERATIONS~~

~~The following table summarizes the electric utility segment results of operations.~~

Three Months Ended
September 30
Year to Date
September 30
2017 2016 2017 2016
(millions)
Operating revenues $ 857.2
$ 856.8
$ 2,110.5
$ 2,099.7
Fuel and purchased power (180.0 ) (184.1 ) (464.0 ) (462.2 )
Transmission (29.1 ) (23.8 ) (80.4 ) (64.5 )
Other operating expenses (250.5 ) (257.8 ) (730.1 ) (730.9 )
Costs to achieve the anticipated merger with Westar 2.0
—
(15.4 ) —
Depreciation and amortization (92.7 ) (86.4 ) (277.7 ) (256.9 )
Operating income 306.9
304.7
542.9
585.2
Non-operating income and expenses (2.2 ) 1.6
(3.6 ) 0.8
Interest charges (49.1 ) (49.3 ) (149.3 ) (147.4 )
Income tax expense (92.7 ) (95.9 ) (142.6 ) (160.2 )
Net income $ 162.9
$ 161.1
$ 247.4
$ 278.4
Reconciliation of gross margin to operating revenues
Operating revenues $ 857.2
$ 856.8
$ 2,110.5
$ 2,099.7
Fuel and purchased power (180.0 ) (184.1 ) (464.0 ) (462.2 )
Transmission (29.1 ) (23.8 ) (80.4 ) (64.5 )
Gross margin ^(a)
$ 648.1
$ 648.9
$ 1,566.1
$ 1,573.0


^(a)	~~Gross margin is a non-GAAP financial measure. See explanation of gross margin under Great Plains Energy's Results of Operations.~~

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~~Electric Utility Gross Margin and MWh Sales~~

The following tables summarize ~~electric utility's~~Evergy's utility gross margin and MWhs sold.

Revenues and Costs % MWhs Sold %
Three Months Ended September 30 2017 2016
Change ^(c)
2017 2016 Change
Retail revenues (millions) (thousands)
Residential $ 380.3
$ 380.4
—
2,661
2,786
(5 )
Commercial 332.9
327.4
2
3,023
3,069
(2 )
Industrial 67.6
66.4
2
820
842
(3 )
Other retail revenues 4.5
5.3
(13 ) 23
29
(22 )
Provision for rate refund 3.2
1.5
N/M
N/A
N/A
N/A
Energy efficiency (MEEIA)^(a)
20.4
17.0
20
N/A
N/A
N/A
Total retail 808.9
798.0
1
6,527
6,726
(3 )
Wholesale revenues 33.4
48.0
(30 ) 1,572
1,878
(16 )
Other revenues 14.9
10.8
39
N/A
N/A
N/A
Operating revenues 857.2
856.8
—
8,099
8,604
(6 )
Fuel and purchased power (180.0 ) (184.1 ) (2 )
Transmission (29.1 ) (23.8 ) 23

Gross margin ^(b)
$ 648.1
$ 648.9
—

^(a)Consists of recovery of program costs of $15.8 million and $16.3 million for the three months ended September 30, 2017, and 2016, respectively, that have a direct offset in utility operating and maintenance expenses and recovery of throughput disincentive of $4.6 million and $0.7 million for the three months ended September 30, 2017, and 2016, respectively.
^(b) Gross margin is a non-GAAP financial measure. See explanation of gross margin under Great Plains Energy's Results of Operations.
^(c) N/M - not meaningful

Revenues and Costs % MWhs Sold %
Year to Date September 30 2017 2016
Change ^(c)
2017 2016 Change
Retail revenues (millions) (thousands)
Residential $ 862.1
$ 877.3
(2 ) 6,621
6,878
(4 )
Commercial 842.4
828.8
2
8,190
8,231
(1 )
Industrial 178.5
178.2
—
2,317
2,394
(3 )
Other retail revenues 13.7
15.9
(13 ) 76
87
(13 )
Provision for rate refund 10.5
(13.2 ) N/M
N/A
N/A
N/A
Energy efficiency (MEEIA)^(a)
48.6
47.6
2
N/A
N/A
N/A
Total retail 1,955.8
1,934.6
1
17,204
17,590
(2 )
Wholesale revenues 108.9
124.5
(13 ) 5,483
6,279
(13 )
Other revenues 45.8
40.6
13
N/A
N/A
N/A
Operating revenues 2,110.5
2,099.7
1
22,687
23,869
(5 )
Fuel and purchased power (464.0 ) (462.2 ) —

Transmission (80.4 ) (64.5 ) 25

Gross margin ^(b)
$ 1,566.1
$ 1,573.0
—

^(a)Consists of recovery of program costs of $39.9 million and $33.3 million year to date September 30, 2017, and 2016, respectively, that have a direct offset in utility operating and maintenance expenses, recovery of throughput disincentive of $8.5 million and $14.3 million year to date September 30, 2017, and 2016, respectively, and an earnings opportunity of $0.2 million year to date September 30, 2017.
^(b) Gross margin is a non-GAAP financial measure. See explanation of gross margin under Great Plains Energy's Results of Operations.
^(c) N/M - not meaningful

~~Electric utility's~~



	Revenues and Expenses									MWhs Sold
Three Months Ended September 30	2019			Change			2018			2019	Change		2018
Retail revenues	(millions)									(thousands)
Residential	$	653.0		$	5.9		$	647.1		4,937	98		4,839
Commercial	539.1			8.6			530.5			5,251	(8	)	5,259
Industrial	175.3			1.9			173.4			2,372	7		2,365
Other retail revenues	16.0			5.1			10.9			34	(6	)	40
Total electric retail	1,383.4			21.5			1,361.9			12,594	91		12,503
Wholesale revenues	96.3			(22.2		)	118.5			3,684	(199	)	3,883
Transmission revenues	80.4			(0.2		)	80.6			N/A	N/A		N/A
Other revenues	17.5			(4.0		)	21.5			N/A	N/A		N/A
Operating revenues	1,577.6			(4.9		)	1,582.5			16,278	(108	)	16,386
Fuel and purchased power	(357.3		)	26.4			(383.7		)
SPP network transmission costs	(62.4		)	(4.0		)	(58.4		)
Utility gross margin ^(a)	$	1,157.9		$	17.5		$	1,140.4

	Revenues and Expenses									MWhs Sold
Year to Date September 30	2019			Change			2018			2019	Change		2018
Retail revenues	(millions)									(thousands)
Residential	$	1,536.3		$	366.9		$	1,169.4		12,163	3,116		9,047
Commercial	1,391.2			446.2			945.0			14,009	4,215		9,794
Industrial	478.9			103.4			375.5			6,528	1,183		5,345
Other retail revenues	35.3			13.8			21.5			105	30		75
Total electric retail	3,441.7			930.3			2,511.4			32,805	8,544		24,261
Wholesale revenues	251.7			(50.7		)	302.4			10,872	1,083		9,789
Transmission revenues	233.5			5.9			227.6			N/A	N/A		N/A
Other revenues	89.3			54.6			34.7			N/A	N/A		N/A
Operating revenues	4,016.2			940.1			3,076.1			43,677	9,627		34,050
Fuel and purchased power	(978.9		)	(230.0		)	(748.9		)
SPP network transmission costs	(188.7		)	5.7			(194.4		)
Utility gross margin ^(a)	$	2,848.6		$	715.8		$	2,132.8
^(a)Utilitygross margin is a non-GAAP financial measure. See explanation of utility gross margin above.

Evergy's utility gross margin ~~decreased $0.8~~increased $17.5 million for the three months ended September 30, ~~2017,~~2019, compared to the same period in ~~2016~~2018 driven by:

~~an estimated $35~~a $24.2 million increase from new Evergy Kansas Central, Evergy Metro and Evergy Missouri West retail rates effective in 2018, net of a $63.3 million provision for rate refund recorded in the third quarter of 2018 for the change in the corporate income tax rate caused by the TCJA; and

a $5.4 million increase primarily due to higher retail sales driven by warmer weather. For the three months ended September 30, 2019, compared to the same period in 2018, cooling degree days increased 4%; partially offset by

a $12.1 million decrease ~~due~~related to ~~cooler weather driven by a 15% decrease in cooling degree days;~~Evergy Kansas Central's and Evergy Metro's TDC riders.

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~~an estimated $13 million increase due to weather-normalized retail demand;~~

~~an estimated $10 million increase due to new retail rates for KCP&L in Missouri effective June 8, 2017 and GMO effective February 22, 2017;~~

~~a $3.9 million increase in MEEIA throughput disincentive; and~~

~~an estimated $8 million increase in other margin items.~~

~~Electric utility's~~Evergy's utility gross margin ~~decreased $6.9~~increased $715.8 million year to date September 30, ~~2017,~~2019, compared to the same period in ~~2016~~2018 driven by:

~~an estimated $59 million decrease due to weather driven by~~ a ~~16% decrease in cooling degree days in the second and third quarters of 2017 and a 7% decrease in heating degree days in the first quarter of 2017;~~

~~a $5.8 million decrease in MEEIA throughput disincentive;~~

~~an estimated $31~~$674.4 million increase due to ~~weather-normalized retail demand;~~the inclusion of Evergy Metro's and Evergy Missouri West's utility gross margin in the first five months of 2019;

~~an estimated $13~~

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a $59.7 million increase in revenue due to one-time bill credits recorded by Evergy Kansas Central, Evergy Metro and Evergy Missouri West in June 2018 as a result of conditions in the KCC and MPSC merger orders; and

a $39.6 million increase from new Evergy Kansas Central, Evergy Metro and Evergy Missouri West retail rates effective in 2018, net of an $111.5 million provision for ~~KCP&L~~rate refund recorded year to date September 30, 2018 for the change in ~~Missouri effective June 8, 2017 and GMO effective February 22, 2017;~~the corporate income tax rate caused by the TCJA; partially offset by

a ~~$6.6~~$48.6 million ~~increase for recovery~~decrease primarily due to lower Evergy Kansas Central, Evergy Metro and Evergy Missouri West retail sales driven by cooler weather in the second quarter of ~~program costs for energy efficiency programs under MEEIA, which have~~ 2019. Year to date September 30, 2019, compared to the same period in 2018, cooling degree days decreased 16%; and

a ~~direct offset in utility~~$9.3 million decrease related to Evergy Kansas Central's and Evergy Metro's TDC riders.

Other Operating Expenses (including operating and maintenance ~~expense;~~expense and taxes other than income tax)

~~an estimated $7 million increase in other margin items.~~

~~Electric Utility Other Operating Expenses~~ ~~(including utility operating and maintenance expenses, general taxes and other)~~

~~Electric utility's~~Evergy's other operating expenses decreased ~~$7.3~~$10.3 million for the three months ended September 30, ~~2017,~~2019, compared to the same period in ~~2016~~2018 primarily ~~due~~driven by:

a $14.5 million decrease in various administrative and general operating and maintenance expenses primarily driven by $10.6 million of voluntary severance expenses incurred in the third quarter of 2018 by Evergy Kansas Central and Evergy Metro related to a ~~$5.8~~Wolf Creek voluntary exit program as well as lower labor expense; and

an $8.2 million decrease in plant operating and maintenance ~~expenses.~~expense at coal-fired generating units primarily due to:


◦	an $8.8 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, Evergy Metro's Montrose Station and Evergy Missouri West's Sibley Station in the fourth quarter of 2018; and


◦	$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; partially offset by


◦	an $8.4 million increase due to a write-off of a regulatory asset for costs incurred during the JEC lease extension, see Note 5 to the consolidated financial statements; partially offset by

an $8.5 million increase in taxes other than income taxes primarily due to increased Evergy Kansas Central property taxes; and

~~Electric utility's~~a $1.9 million increase in Evergy Kansas Central transmission and distribution operating and maintenance expense.

Evergy's other operating expenses ~~decreased $0.8~~increased $245.8 million ~~for~~ year to date September 30, ~~2017,~~2019, compared to the same period in ~~2016~~2018 primarily driven by:

a $279.9 million increase in operating and maintenance 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;

a $75.7 million increase in taxes other than income taxes due to the inclusion of Evergy Metro and Evergy Missouri West amounts in the first five months of 2019;

a $17.2 million increase in taxes other than income taxes primarily due to increased Evergy Kansas Central property taxes; and

$7.8 million of Evergy Kansas Central voluntary severance expenses incurred in 2019; partially offset by

$64.6 million of merger-related costs incurred year to date September 30, 2018, consisting of:


◦	$47.0 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees;

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◦	$40.7 million of Evergy Kansas Central change in control payments, voluntary severance and 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 ~~$10.4~~$30.1 million decrease in plant operating and maintenance ~~expenses;~~expense at coal-fired generating units primarily due to:


◦	an $11.9 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;


◦	$12.3 million of Evergy Kansas Central obsolete inventory write-offs at retiring coal-fired units in June 2018; and


◦	$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; partially offset by


◦	an $8.4 million increase due to a write-off of a regulatory asset for costs incurred during the JEC lease extension, see Note 5 to the consolidated financial statements;

a $29.3 million decrease in various administrative and general operating and maintenance expenses primarily driven by ~~a $6.6~~$10.6 million ~~increase in program costs for energy efficiency programs under MEEIA, which have a direct offset in revenue.~~

~~Electric Utility Costs to Achieve the Anticipated Merger with Westar~~

~~Electric utility's costs to achieve the anticipated merger with Westar~~ of ~~$15.4 million for year to date September 30, 2017 reflects consulting fees, certain~~voluntary severance expenses incurred in the third quarter of 2018 by Evergy Kansas Central and ~~other transition costs~~Evergy Metro related to a Wolf Creek voluntary exit program and lower labor and employee benefit expense in 2019; and

a $13.6 million decrease in transmission and distribution operating and maintenance expense primarily due to a higher level of Evergy Kansas Central vegetation management activity in the ~~anticipated merger with Westar.~~first half of 2018.

~~Electric Utility~~ Depreciation and Amortization

~~Electric utility's~~Evergy's depreciation and amortization increased ~~$6.3~~$22.2 million ~~and $20.8 million, respectively,~~ for the three months ended ~~and year to date~~ September 30, ~~2017,~~2019, compared to the same ~~periods~~period in ~~2016~~2018 driven by:

a $14.6 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 $7.6 million increase primarily due to capital additions.

~~Electric Utility Income Tax Expense~~

~~Electric utility's income tax expense decreased $17.6~~Evergy's depreciation and amortization increased$233.5 million year to date September 30, ~~2017,~~2019, compared to the same period in ~~2016~~2018 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 $39.0 million increase primarily due to ~~decreased pre-tax income.~~a change in depreciation rates as a result of Evergy Kansas Central's and Evergy Metro's rate cases effective in 2018; and

~~GREAT PLAINS ENERGY SIGNIFICANT BALANCE SHEET CHANGES~~

~~(September 30, 2017 compared to December 31, 2016)~~

~~Great Plains Energy's cash and cash equivalents decreased $195.2~~a $21.1 million increase primarily due to capital additions.

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Other Expense, Net

Evergy's other expense, net decreased $9.2 million for the ~~redemption~~three months ended September 30, 2019, compared to the same period in 2018, primarily driven by:

a $3.9 million decrease primarily due to a decrease in Evergy Kansas Central pension non-service costs; and

a $2.0 million decrease due to recording higher Evergy Kansas Central corporate-owned life insurance (COLI) benefits in 2019.

Evergy's other expense, net decreased $11.2 million year to date September 30, 2019, compared to the same period in 2018, primarily driven by:

a $10.7 million decrease due to recording higher Evergy Kansas Central COLI benefits in 2019; and

a $6.0 million decrease primarily due to a decrease in Evergy Kansas Central pension non-service costs; partially offset by

a $9.5 million increase due to the inclusion of ~~Great Plains Energy's $4.3~~Evergy Metro and Evergy Missouri West amounts in the first five months of 2019.

Interest Expense

Evergy's interest expense increased $1.7 million for the three months ended September 30, 2019, compared to the same period in 2018, primarily driven by:

a $5.6 million increase primarily due to a higher average commercial paper balance at Evergy Kansas Central in 2019 and Evergy's borrowings under its $1.0 billion ~~senior notes for $4,400.1~~term loan credit agreement in 2019; and

a $4.1 million ~~in July 2017, the redemption~~increase due to Evergy Metro's issuance of ~~Great Plains Energy's Series B Preferred Stock in August 2017 for $963.4 million and the maturity of Great Plains Energy's $100.0~~$400.0 million of ~~6.875% Senior Notes in September 2017; partially~~

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~~offset by the issuance of Great Plains Energy's $4.3 billion senior notes and the maturity of a $1.0 billion time deposit~~4.125% Mortgage Bonds in March ~~2017.~~2019; partially offset by

~~Great Plains Energy's time deposit decreased $1.0 billion due to its maturity in March 2017.~~

~~Great Plains Energy's plant to be retired, net increased $146.3~~an $8.6 million ~~in connection with the expected retirement of GMO's Sibley No. 3 Unit. See Note 20 to the consolidated financial statements for additional information.~~

~~Great Plains Energy's commercial paper decreased $86.9 million~~decrease due to the repayment of ~~commercial paper~~Evergy Metro's $400.0 million of ~~$60.9~~7.15% Mortgage Bonds at maturity in April 2019.

Evergy's interest expense increased $86.0 million ~~at KCP&L~~year to date September 30, 2019, compared to the same period in 2018, primarily driven by:

a $77.2 million increase due to the inclusion of Evergy Metro's and ~~$26.0 million at GMO primarily~~Evergy Missouri West's interest expense and Evergy's interest expense associated with ~~funds from operations.~~

the assumption of legacy Great Plains ~~Energy's accounts payable decreased $126.9~~Energy debt in the first five months of 2019;

a $10.1 million increase primarily due to ~~the timing~~a higher average commercial paper balance at Evergy Kansas Central in 2019 and Evergy's borrowings under its $1.0 billion term loan credit agreement in 2019; and

a $5.5 million increase due to Evergy Metro's issuance of ~~cash payments.~~$400.0 million of 4.125% Mortgage Bonds in March 2019; partially offset by

~~Great Plains Energy's accrued taxes increased $93.7~~an $11.4 million ~~primarily~~decrease due to the ~~timing~~repayment of ~~property~~Evergy Metro's $400.0 million of 7.15% Mortgage Bonds at maturity in April 2019.

Income Tax Expense

Evergy's income tax ~~payments.~~

~~Great Plains Energy's preference stock without par value decreased $836.2~~expense increased $70.9 million ~~due~~year to date September 30, 2019, compared to the ~~redemption of Great Plains Energy's Series B Preferred Stock~~same period in ~~August 2017.~~2018, primarily driven by:

~~CAPITAL REQUIREMENTS AND LIQUIDITY~~

Great Plains Energy operates through its subsidiaries and has no material assets other than the stock of its subsidiaries and cash and cash equivalents. Great Plains Energy's ability to make payments on its debt securities and its ability to pay dividends is dependent on its receipt of dividends or other distributions from its subsidiaries, proceeds from the issuance of its securities and borrowing under its revolving credit facility.

Great Plains Energy's capital requirements are principally comprised of debt maturities and electric utility's construction and other capital expenditures. These items as well as additional cash and capital requirements, including requirementsa $52.6 million increase related to the ~~anticipated~~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 ~~with Westar, are discussed below.~~in 2018; and

~~Great Plains Energy's liquid resources at September 30, 2017, consisted~~a $15.2 million increase due to higher Evergy Kansas Central pre-tax income.

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LIQUIDITY AND CAPITAL RESOURCES

Evergy relies primarily upon cash from operations, short-term borrowings, debt 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, the payment of dividends to shareholders and the repurchase of common shares. See the Evergy Companies' combined 2018 Form 10-K for more information on ~~hand~~Evergy's sources and ~~$996.4 million~~uses of cash.

Short-Term Borrowings

As of September 30, 2019, Evergy had $2.1 billion of available borrowing capacity ~~from unused bank lines of~~under its master credit ~~and receivable sale agreements.~~facility. The available borrowing capacity under the master credit facility consisted of ~~$199.0~~$449.0 million ~~from Great Plains Energy's revolving~~for Evergy, Inc., $808.4 million for Evergy Kansas Central, $525.1 million for Evergy Metro and $344.6 million for Evergy Missouri West. Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's borrowing capacity under the master credit facility ~~$525.3 million from KCP&L's credit facilities and $272.1 million from GMO's credit facilities.~~also supports their issuance of commercial paper. See ~~Notes 4 and 10~~Note 8 to the consolidated financial statements for more information regarding the master credit facility. Along with cash flows from operations and receivable ~~sale agreements~~sales facilities, Evergy generally uses borrowings under its master credit facility and ~~revolving credit facilities, respectively. Generally, Great Plains Energy uses these liquid resources~~the issuance of commercial paper to meet its day-to-day cash flow ~~requirements,~~requirements. Evergy also had short-term borrowings under a term loan credit agreement that was repaid in September 2019 and ~~from time~~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 to ~~time issues equity and/or long-term debt~~provide short-term financing for its common stock repurchase plan. The agreement allowed for two term loans during the 6-month term of the agreement, in an aggregate principal amount not to ~~repay short-term debt or increase cash balances.~~

~~The $1.1~~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. In June 2019, Evergy borrowed the remaining $500.0 million allowed under the agreement. In September 2019, Evergy repaid its $1.0 billion of cash and cash equivalents on hand at September 30, 2017 is primarily the result of Great Plains Energy's common stock offering in October 2016, the proceeds of which were to be used to fund a portion of the cash consideration for the acquisition of Westarborrowings under the ~~Original Merger Agreement. Great Plains Energy also expects to receive $140.6 million in~~term loan credit agreement with proceeds from its ~~deal contingent interest~~issuance of $1.6 billion of senior notes in September 2019.

Significant Debt Issuances

See Note 9 to the consolidated financial statements for information regarding significant debt issuances.

Pensions

Year to date September 30, 2019, Evergy made pension contributions of $54.6 million. Evergy expects to make additional pension contributions of $73.7 million in 2019 to satisfy ERISA funding requirements and KCC and MPSC rate ~~swaps upon the closing~~orders, of the anticipated merger with Westar. Under the Amended Merger Agreement, Great Plains Energy is required to have not less than $1.25 billion in cash and cash equivalents on its balance sheet at the closing of the anticipated merger with Westar. Itwhich $7.1 million is expected ~~that this excess cash will~~to be ~~returned~~paid by Evergy Kansas Central and $66.6 million is expected to ~~shareholders~~be paid by Evergy Metro.

Year to date September 30, 2019, Evergy made post-retirement benefit contributions of $2.2 million. Evergy expects to make additional contributions of $1.4 million to the ~~combined company through~~post-retirement benefit plans in 2019.

Common Stock Repurchase Program

In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock. Although this repurchase authorization has no expiration date, Evergy expects to repurchase approximately 60 million shares by mid-2020. Year to date September 30, 2019, Evergy had total repurchases of common stock ~~in a series~~ of ~~transactions over time after~~$1,628.7 million and had repurchased 27.5 million shares under the ~~closing~~repurchase program. Since its inception, Evergy has made total repurchases of common stock of approximately $2.7 billion and has repurchased 43.9 million shares under the ~~anticipated merger.~~repurchase program. These repurchase totals include shares repurchased under ASR agreements, one of which had not reached final settlement as of September 30, 2019.

~~Great Plains Energy intends~~See Note13 to meet day-to-day cash flow requirements including interest payments, retirement of maturing debt, construction requirements, dividends and pension benefit plan funding requirements with a combination of internally generated funds and proceeds from short-term debt. From time to time, Great Plains Energy issues equity and/or long-term debt to repay short-term debt or increase cash balances. Great Plains Energy's intention to meet a portion of these requirements with internally generated funds may be impacted by the ~~effect of inflation on operating expenses, the level of MWh sales, regulatory actions, compliance with~~consolidated financial statements for more information regarding Evergy's common stock repurchase program.

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~~environmental regulations~~Debt Covenants

As of September 30, 2019, Evergy was in compliance with all debt covenants under the master credit facility and certain debt instruments that contain restrictions that require the ~~availability~~maintenance of ~~generating units. In addition, Great Plains Energy may issue equity, equity-linked securities and/or debt~~certain capitalization and leverage ratios. See Note 8 to ~~finance growth.~~ the consolidated financial statements for more information.

Off-Balance Sheet Arrangement

Evergy's off-balance sheet arrangements were reported in the Evergy Companies' combined 2018 Form 10-K. As of September 30, 2019, there have been no material changes with regards to these off-balance sheet arrangements.

Cash Flows

The following table presents Evergy's cash flows from operating, investing and financing activities.



Year to Date September 30	2019			2018
	(millions)
Cash flows from operating activities	$	1,447.3		$	1,191.6
Cash flows from (used in) investing activities	(772.1		)	574.8
Cash flows used in financing activities	(785.4		)	(1,090.1		)

Cash Flows from Operating Activities

~~Great Plains Energy generated positive~~Evergy's cash flows from operating activities ~~for the periods presented. The $35.1~~increased $255.7 million ~~decrease in cash flows from operating activities for Great Plains Energy~~ year to date September 30, ~~2017,~~2019, compared to the same period in ~~2016 was~~2018, primarily driven by ana $252.3 million increase due to the inclusion of Evergy Metro's and Evergy Missouri West's cash flows from operating activities in ~~payments for costs to achieve~~ the ~~anticipated merger with Westar in 2017~~first five months of ~~$13.1 million, an increase in ARO settlement payments at KCP&L~~2019 and ~~GMO in 2017 of $6.8 million, an increase in Great Plains Energy's pension funding contributions in 2017 of $4.4 million and $7.5~~$35.6 million of ~~other changes~~merger success fees paid by Evergy and Evergy Kansas Central upon the completion of the merger in ~~working capital that are detailed in Note 3 to the consolidated financial statements. The individual components of working capital vary with normal business cycles and operations.~~June 2018.

Cash Flows from (used in) Investing Activities

Great Plains Energy's cash used for investing activities varies with the timing of utility capital expenditures and purchases of investments and nonutility property. Investing activities are offset by proceeds from the sale of properties and insurance recoveries.

~~Great Plains Energy's~~Evergy's cash flows ~~from~~used in investing activities increased ~~$1.1 billion~~$1,346.9 million year to date September 30, ~~2017,~~2019, compared to the same period in ~~2016~~2018, primarily driven by $1,154.2 million of cash acquired from Great Plains Energy in June 2018; a $243.6 million increase in additions to property, plant and equipment due to ~~$1.0 billion for~~the inclusion of Evergy Metro and Evergy Missouri West activity in the first five months of 2019; $140.6 million in proceeds from the ~~maturity~~settlement of ~~a time deposit~~deal contingent interest rate swaps in ~~March 2017. Great Plains Energy had purchased the $1.0 billion time deposit~~June 2018; partially offset by an increase of $92.6 million in ~~2016 with a portion of the~~ proceeds primarily from ~~its October 2016 common stock and depositary share offerings.~~Evergy Kansas Central COLI investments in 2019.

Cash Flows ~~from~~used in Financing Activities

~~Great Plains Energy's~~Evergy's cash flows ~~from~~used in financing activities decreased ~~$1.2 billion~~$304.7 million year to date September 30, ~~2017,~~2019, compared to the same period in ~~2016~~2018, primarily ~~due to the $963.4 million redemption of Series B Preferred Stock in August 2017, the maturity of Great Plains Energy's $100.0 million of 6.875% unsecured Senior Notes in September 2017,~~driven by a ~~$90.2~~$2,351.1 million increase in dividends paid in 2017 primarily due to Great Plains Energy's October 2016 common stock and depositary share offerings, and a $43.0 million redemption premium paid on the redemption of Great Plains Energy's $4.3 billion senior notes in July 2017.

~~Financing Authorization~~

Under stipulations with the MPSC and KCC, Great Plains Energy and KCP&L maintain common equity at not less than 30% and 35%, respectively, of total capitalization (including only the amount of short-term debt in excess of the amount of construction work in progress). KCP&L's long-term financing activities are subject to the authorization of the MPSC. In May 2017, the MPSC authorized KCP&L to issue up to $350.0 million ofproceeds from long-term debt, ~~through December 31, 2017. At September 30, 2017, KCP&L had utilized $300.0 million of this authorization.~~

~~KCP&L's and GMO's short-term financing activities are subject to the authorization of FERC. In November 2016, FERC authorized KCP&L to have outstanding at any one time up to a total of $1.0 billion~~net, as further described in short-term debt instruments through December 2018. At September 30, 2017, there was $928.0 million available under this authorization. In February 2016, FERC authorized GMO to have outstanding at any one time up to a total of $750.0 million in short-term debt instruments through March 2018. At September 30, 2017, there was $574.1 million available under this authorization.

KCP&L and GMO are also authorized by FERC to participate in the Great Plains Energy money pool, an internal financing arrangement in which funds may be lent on a short-term basis to KCP&L and GMO. At September 30, 2017, there were no outstanding payables under the money pool.

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~~Significant Financing Activities~~

~~Great Plains Energy~~

~~In March 2017, Great Plains Energy issued, at a discount, the following series of unsecured senior notes:~~

~~$750.0 million of 2.50% Notes, maturing in 2020;~~

~~$1,150.0 million of 3.15% Notes, maturing in 2022;~~

~~$1,400.0 million of 3.90% Notes, maturing in 2027; and~~

~~$1,000.0 million of 4.85% Notes, maturing in 2047.~~

~~In July 2017, as a result of the Amended Merger Agreement, Great Plains Energy redeemed each series of the senior notes issued in March 2017. See~~ Note 119 to the consolidated financial ~~statements for more information on the redemption~~statements; partially offset by a $1,142.6 million increase of ~~the senior notes.~~

~~In August 2017,~~repurchased common stock as a ~~result~~part of ~~the Amended Merger Agreement, Great Plains Energy redeemed its Series B Preferred Stock. See~~Evergy's common stock repurchase program as further described in Note 1213 to the consolidated financial ~~statements for more information on the redemption~~statements; a $573.7 million increase in retirement of ~~the Series B Preferred Stock.~~

~~In September 2017, Great Plains Energy repaid its $100.0 million of 6.875% unsecured Senior Notes at maturity.~~

~~KCP&L~~

~~In June 2017, KCP&L issued, at a discount, $300.0 million of 4.20% unsecured Senior Notes, maturing~~long-term debt as further described in ~~2047, with proceeds used to repay $250.0 million of 5.85% Senior Notes that matured in June 2017 and $31.0 million of secured Series 1992 EIRR bonds that matured in July 2017.~~

~~Debt Agreements~~

~~See~~ Note 109 to the consolidated financial ~~statements for information regarding revolving credit facilities.~~

~~Pensions~~

~~The Company incurs significant costs~~statements; and a $211.3 million decrease in ~~providing defined benefit plans for substantially all active and inactive employees~~short-term debt, net primarily due to an increase in repayments of ~~KCP&L and GMO and its 47% ownership share~~commercial paper by Evergy Kansas Central of ~~WCNOC's defined benefit plans. Funding of the plans follows legal and regulatory requirements with funding equaling or exceeding the minimum requirements of ERISA.~~

~~Year to date September 30, 2017, the Company contributed $28.0 million to the pension plans and expects to contribute an additional $51.6~~$277.6 million in ~~2017 to satisfy ERISA funding requirements and the MPSC and KCC rate orders, the majority of which is expected to be paid by KCP&L.~~2019 with funds from operations.

Additionally, the Company provides post-retirement health and life insurance benefits for certain retired employees and expects to make benefit contributions of $4.1 million under the provisions of these plans in 2017, the majority of which is expected to be paid by KCP&L.

~~Management believes the Company has adequate access to capital resources through cash flows from operations or through existing lines of credit to support these funding requirements.~~

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EVERGY KANSAS ~~CITY POWER & LIGHT COMPANY~~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 (H)(2)(a) to Form 10-Q.

The following table summarizes ~~KCP&L's consolidated~~Evergy Kansas Central's comparative results of operations.

Year to Date
September 30

2017 2016
(millions)
Operating revenues $ 1,474.3
$ 1,474.1

Fuel and purchased power (314.4 ) (298.7 )
Transmission (52.9 ) (44.8 )
Other operating expenses (514.9 ) (518.8 )
Costs to achieve the anticipated merger with Westar (10.3 ) —

Depreciation and amortization (199.9 ) (184.1 )
Operating income 381.9
427.7

Non-operating income and expenses 0.5
1.9

Interest charges (105.5 ) (104.9 )
Income tax expense (99.0 ) (116.5 )
Net income $ 177.9
$ 208.2

Reconciliation of gross margin to operating revenues:
Operating revenues $ 1,474.3
$ 1,474.1

Fuel and purchased power (314.4 ) (298.7 )
Transmission (52.9 ) (44.8 )
Gross margin ^(a)
$ 1,107.0
$ 1,130.6



Year to Date September 30	2019			Change			2018
	(millions)
Operating revenues	$	1,931.3		$	(84.6	)	$	2,015.9
Fuel and purchased power	375.3			(87.9		)	463.2
SPP network transmission costs	188.7			(5.7		)	194.4
Other operating expenses	541.7			(78.5		)	620.2
Depreciation and amortization	331.3			49.7			281.6
Income from operations	494.3			37.8			456.5
Other expense, net	(13.9		)	17.7			(31.6		)
Interest expense	134.1			2.0			132.1
Income tax expense (benefit)	46.2			68.2			(22.0		)
Equity in earnings of equity method investees, net of income taxes	3.6			(0.1		)	3.7
Net income	303.7			(14.8		)	318.5
Less: Net income attributable to noncontrolling interests	12.9			5.3			7.6
Net income attributable to Evergy Kansas Central, Inc.	$	290.8		$	(20.1	)	$	310.9

Evergy Kansas Central Utility Gross Margin and MWh Sales

The following table summarizes Evergy Kansas Central's utility gross margin and MWhs sold.



	Revenues and Expenses									MWhs Sold
Year to Date September 30	2019			Change			2018			2019	Change		2018
Retail revenues	(millions)									(thousands)
Residential	$	640.4		$	(31.5	)	$	671.9		5,103	(246	)	5,349
Commercial	556.4			13.6			542.8			5,673	(124	)	5,797
Industrial	308.5			11.3			297.2			4,286	11		4,275
Other retail revenues	15.8			0.5			15.3			35	(10	)	45
Total electric retail	1,521.1			(6.1		)	1,527.2			15,097	(369	)	15,466
Wholesale revenues	182.5			(81.2		)	263.7			5,591	(1,969	)	7,560
Transmission revenues	205.5			(10.8		)	216.3			N/A	N/A		N/A
Other revenues	22.2			13.5			8.7			N/A	N/A		N/A
Operating revenues	1,931.3			(84.6		)	2,015.9			20,688	(2,338	)	23,026
Fuel and purchased power	(375.3		)	87.9			(463.2		)
SPP network transmission costs	(188.7		)	5.7			(194.4		)
Utility gross margin ^(a)	$	1,367.3		$	9.0		$	1,358.3


^(a)	~~Gross~~Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin under ~~Great Plains Energy's~~Evergy's Results of Operations.

~~KCP&L~~Evergy Kansas Central's utility gross margin increased $9.0 million year to date September 30, 2019, compared to the same period in 2018 driven by:

a $24.5 million increase from new retail rates effective in September 2018, net of a $66.3 million provision for rate refund recorded year to date September 30, 2018 for the change in the corporate income tax rate caused by the TCJA; and

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a $23.1 million increase in revenue due to one-time bill credits recorded in June 2018 as a result of conditions in the KCC merger order; partially offset by

a $27.3 million decrease primarily due to lower retail sales driven by cooler weather in the second quarter of 2019. Year to date September 30, 2019, compared to the same period in 2018, cooling degree days decreased 14%; and

an $11.3 million decrease related to Evergy Kansas Central's TDC rider.

Evergy Kansas Central Other Operating Expenses (including operating and maintenance expense and taxes other than income tax)

Evergy Kansas Central's other operating expenses decreased $78.5 million year to date September 30, 2019, compared to the same period in 2018 primarily driven by:

$47.8 million of merger-related costs incurred year to date September 30, 2018, consisting of:


◦	$40.7 million of change in control payments, voluntary severance and 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


◦	$20.4 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; partially offset by


◦	a $13.3 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 $19.7 million decrease in various administrative and general operating and maintenance expenses primarily driven by $5.3 million of voluntary severance expenses incurred in 2018 related to a Wolf Creek voluntary exit program and lower labor and employee benefit expense in 2019;

a $17.5 million decrease in plant operating and maintenance expense at coal-fired generating units primarily due to:


◦	$12.3 million of obsolete inventory write-offs at retiring coal-fired units in June 2018;


◦	a $7.0 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 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 the third quarter of 2018 related to the Local 1523 union voluntary exit program; partially offset by


◦	an $8.4 million increase due to a write-off of a regulatory asset for costs incurred during the JEC lease extension, see Note 5 to the consolidated financial statements; and

a $12.2 million decrease in transmission and distribution operating and maintenance expense primarily due to a higher level of vegetation management activity in the first half of 2018; partially offset by

a $16.5 million increase in taxes other than income taxes primarily due to increased property taxes; and

$7.8 million of voluntary severance expenses incurred in 2019.

Evergy Kansas Central Depreciation and Amortization

Evergy Kansas Central's depreciation and amortization expense increased $49.7 million year to date September 30, 2019, compared to the same period in 2018 primarily due to a change in depreciation rates effective in September 2018 as a result of Evergy Kansas Central's 2018 rate case.

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Evergy Kansas Central Other Expense, Net

Evergy Kansas Central's other expense, net decreased $17.7 millionyear to dateSeptember 30, 2019, compared to the same period in 2018 primarily driven by:

a $10.7 million decrease due to recording higher COLI benefits in 2019; and

a $4.5 million decrease due to a decrease in pension non-service costs.

Evergy Kansas Central Interest Expense

Evergy Kansas Central's interest expense increased$2.0 million year to date September 30, 2019, compared to the same period in 2018 primarily driven by a higher average commercial paper balance in 2019.

Evergy Kansas Central Income Tax Expense

Evergy Kansas Central's income tax expense increased$68.2 million year to date September 30, 2019, compared to the same period in 2018 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

a $15.2 million increase due to higher pre-tax income.

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 (H)(2)(a) to Form 10-Q.

The following table summarizes Evergy Metro's comparative results of operations.



Year to Date September 30	2019			Change			2018
	(millions)
Operating revenues	$	1,431.2		$	22.3		$	1,408.9
Fuel and purchased power	380.4			(12.0		)	392.4
Other operating expenses	437.5			(4.9		)	442.4
Depreciation and amortization	239.0			30.0			209.0
Income from operations	374.3			9.2			365.1
Other expense, net	(11.5		)	7.6			(19.1		)
Interest expense	91.6			(9.0		)	100.6
Income tax expense	43.9			(36.4		)	80.3
Net income	$	227.3		$	62.2		$	165.1

Table of Contents

Evergy Metro Utility Gross Margin and MWh Sales

The following table summarizes ~~KCP&L's~~Evergy Metro's utility gross margin and MWhs sold.


	Revenues and Costs						%		MWhs Sold		%		Revenues and Expenses									MWhs Sold
Year to Date September 30	2017			2016			Change		2017	2016	Change		2019			Change			2018			2019	Change		2018
Retail revenues	(millions)								(thousands)				(millions)									(thousands)
Residential	$	566.6		$	573.2		(1	)	4,034	4,200	(4	)	$	575.5		$	(9.9	)	$	585.4		4,261	(219	)	4,480
Commercial	637.3			615.4			4		5,730	5,755	—		613.5			4.3			609.2			5,828	(103	)	5,931
Industrial	116.5			113.0			3		1,330	1,399	(5	)	106.7			1.3			105.4			1,303	(30	)	1,333
Other retail revenues	8.3			10.0			(17	)	53	63	(16	)	12.3			4.6			7.7			57	1		56
Provision for rate refund	0.7			0.5			36		N/A	N/A	N/A
Energy efficiency (MEEIA)^(a)	22.6			29.6			(24)		N/A	N/A	N/A
Total retail	1,352.0			1,341.7			1		11,147	11,417	(2	)
Total electric retail													1,308.0			0.3			1,307.7			11,449	(351	)	11,800
Wholesale revenues	102.4			115.3			(11	)	5,198	5,971	(13	)	54.7			16.2			38.5			4,685	932		3,753
Transmission revenues													14.0			3.0			11.0			N/A	N/A		N/A
Other revenues	19.9			17.1			17		N/A	N/A	N/A		54.5			2.8			51.7			N/A	N/A		N/A
Operating revenues	1,474.3			1,474.1			—		16,345	17,388	(6	)	1,431.2			22.3			1,408.9			16,134	581		15,553
Fuel and purchased power	(314.4		)	(298.7		)	5						(380.4		)	12.0			(392.4		)
Transmission	(52.9		)	(44.8		)	18
Gross margin ^(b)	$	1,107.0		$	1,130.6		(2	)
Utility gross margin ^(a)													$	1,050.8		$	34.3		$	1,016.5



	Exact name of registrant as specified in its charter,
Commission	state of incorporation, address of principal	I.R.S. Employer
File Number	executive offices and telephone number	Identification Number

~~001-32206~~001-38515	~~GREAT PLAINS ENERGY INCORPORATED~~EVERGY, INC.	~~43-1916803~~82-2733395



	~~(A Missouri Corporation)~~
001-03523	~~1200 Main Street~~EVERGY KANSAS CENTRAL, INC.	48-0290150


	~~Kansas City, Missouri 64105~~
	~~(816) 556-2200~~

000-51873	~~KANSAS CITY POWER & LIGHT COMPANY~~EVERGY METRO, INC.	44-0308720
	~~(A Missouri Corporation)~~
	~~1200 Main Street~~
	~~Kansas City, Missouri 64105~~
	~~(816) 556-2200~~



	Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Evergy, Inc. common stock	EVRG	New York Stock Exchange



TABLE OF CONTENTS
			Page Number
Cautionary Statements Regarding Certain Forward-Looking Information			4
Glossary of Terms			5

Part I - Financial Information

Item 1.	Financial Statements
	~~Great Plains Energy Incorporated~~Evergy, Inc.
	Unaudited Consolidated Balance Sheets		7
	Unaudited Consolidated Statements of Comprehensive Income ~~(Loss)~~		9
	Unaudited Consolidated Statements of Cash Flows		10
	Unaudited Consolidated Statements of ~~Shareholders'~~Changes in Equity		11
	Evergy Kansas ~~City Power & Light Company~~Central, Inc.
	Unaudited Consolidated Balance Sheets		1213
	Unaudited Consolidated Statements of ~~Comprehensive~~ Income		14
	~~Unaudited Consolidated Statements of Cash Flows~~		15
	Unaudited Consolidated Statements of ~~Common Shareholder's Equity~~Cash Flows		16
	Unaudited Consolidated Statements of Changes in Equity		17
	Evergy Metro, Inc.
	Unaudited Consolidated Balance Sheets		18
	Unaudited Consolidated Statements of Comprehensive Income		20
	Unaudited Consolidated Statements of Cash Flows		21
	Unaudited Consolidated Statements of Changes in Equity		22

	Combined Notes to Unaudited Consolidated Financial Statements for ~~Great Plains Energy Incorporated~~Evergy, Inc., Evergy Kansas Central, Inc. and ~~Kansas City Power & Light Company~~		17
	~~Note 1:~~	~~Summary of Significant Accounting Policies~~	17
	~~Note 2:~~	~~Anticipated Merger with Westar Energy,~~Evergy Metro, Inc.	19
	~~Note 3:~~	~~Supplemental Cash Flow Information~~	22
	~~Note 4:~~	~~Receivables~~	23
	Note 5:1:	~~Nuclear Plant~~Organization and Basis of Presentation	2423
	Note 6:2:	~~Regulatory Matters~~Merger of Great Plains Energy and Evergy Kansas Central	2628
	Note 7:3:	~~Goodwill~~Revenue	2630
	Note 8:4:	~~Pension Plans and Other Employee Benefits~~	27
	~~Note 9:~~	~~Equity Compensation~~	27
	~~Note 10:~~	~~Short-Term Borrowings and Short-Term Bank Lines of Credit~~	29
	~~Note 11:~~	~~Long-Term Debt~~	31
	~~Note 12:~~	~~Preferred Stock~~Receivables	32
	Note ~~13:~~5:	~~Commitments~~Rate Matters and ~~Contingencies~~Regulation	33
	Note ~~14:~~6:	~~Legal Proceedings~~Goodwill	3635
	Note ~~15:~~7:	~~Related Party Transactions~~Pension Plans and ~~Relationships~~Post-Retirement Benefits	3635
	Note ~~16:~~8:	~~Fair Value Measurements~~Short-Term Borrowings and Short-Term Bank Lines of Credit	3738
	Note ~~17:~~9:	~~Accumulated Other Comprehensive Income (Loss)~~Long-Term Debt	4138
	Note ~~18:~~10:	~~Taxes~~Fair Value Measurements	39
	Note 11:	Commitments and Contingencies	44
	Note ~~19:~~12:	~~Segments~~Related Party Transactions and ~~Related Information~~Relationships	4548
	Note ~~20:~~13:	~~Plant to be Retired, Net~~Shareholders' Equity	4649
	Note 14:	Taxes	51
	Note 15:	Leases	53
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		4857
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		6273
Item 4.	Controls and Procedures		6274

Part II - Other Information

Item 1.	Legal Proceedings		6474
Item 1A.	Risk Factors		6475
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		7175
Item 3.	Defaults Upon Senior Securities		7175
Item 4.	Mine Safety Disclosures		7175
Item 5.	Other Information		7175
Item 6.	Exhibits		7277

Signatures			7479



Abbreviation or Acronym		Definition

ACE		Affordable Clean Energy
AEP		American Electric Power Company, Inc.
AFUDC		Allowance for Funds Used During Construction
Amended Merger Agreement		Amended and Restated Agreement and Plan of Merger, dated as of July 9, 2017, by and among Great Plains Energy, ~~Westar,~~Evergy Kansas Central, Monarch Energy Holding, Inc. and King Energy, Inc.
~~ARO~~AROs		Asset Retirement ~~Obligation~~Obligations
ASC		Accounting Standards Codification
ASR		Accelerated share repurchase
ASU		Accounting Standards Update
~~CCRs~~BSER		~~Coal combustion residuals~~Best system of emission reduction
~~Clean Air Act~~CAA		Clean Air Act Amendments of 1990
CCRs		Coal combustion residuals
CO₂		Carbon dioxide
~~Company~~COLI		~~Great Plains Energy Incorporated and its consolidated subsidiaries~~Corporate-owned life insurance
~~Companies~~CPP		~~Great Plains Energy Incorporated and its consolidated subsidiaries and KCP&L and its consolidated subsidiaries~~Clean Power Plan
~~DOE~~CWA		~~Department of Energy~~Clean Water Act
~~DOJ~~D.C. Circuit		~~Department~~U.S. Court of ~~Justice~~Appeals for the D.C. Circuit
~~EIRR~~ELG		~~Environmental Improvement Revenue Refunding~~Effluent limitations guidelines
EPA		Environmental Protection Agency
EPS		Earnings ~~(loss)~~ per common share
ERISA		Employee Retirement Income Security Act of 1974, as amended
ERSP		Earnings Review and Sharing Plan
Evergy		Evergy, Inc. and its consolidated subsidiaries
Evergy Board		Evergy Board of Directors
Evergy Companies		Evergy, Evergy Kansas Central, and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group
Evergy Kansas Central		Evergy Kansas Central, Inc., formerly known as Westar Energy, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Kansas South		Evergy Kansas South, Inc., formerly known as Kansas Gas and Electric Company, a wholly-owned subsidiary of Evergy Kansas Central
Evergy Metro		Evergy Metro, Inc., formerly known as Kansas City Power & Light Company, a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Metro Mortgage Indenture		Evergy Metro General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented
Evergy Missouri West		Evergy Missouri West, Inc., formerly known as KCP&L Greater Missouri Operations Company, a wholly-owned subsidiary of Evergy
Evergy Transmission Company		Evergy Transmission Company, LLC, formerly known as GPE Transmission Holding Company, LLC
Exchange Act		The Securities Exchange Act of 1934, as amended
FASB		Financial Accounting Standards Board
FERC		~~The~~ Federal Energy Regulatory ~~Commission~~
~~FCC~~		~~The Federal Communications~~ Commission
GAAP		Generally Accepted Accounting Principles
~~GMO~~GHG		~~KCP&L Greater Missouri Operations Company, a wholly owned subsidiary of Great Plains Energy~~Greenhouse gas


~~GP Star~~
Abbreviation or Acronym		~~GP Star, Inc.~~
~~GPETHC~~		~~GPE Transmission Holding Company LLC, a wholly owned subsidiary of Great Plains Energy~~Definition
Great Plains Energy		Great Plains Energy Incorporated ~~and its consolidated subsidiaries~~
~~Great Plains Energy Board~~JEC		~~Great Plains~~Jeffrey Energy ~~Board of Directors~~
~~HSR~~		~~Hart-Scott-Rodino~~
~~Holdco~~		~~Monarch Energy Holding, Inc., a Missouri corporation~~Center
KCC		~~The~~ State Corporation Commission of the State of Kansas
~~KCP&L~~KDHE		Kansas ~~City Power~~Department of Health & ~~Light Company,~~Environment
King Energy		King Energy, Inc., a ~~wholly owned~~wholly-owned subsidiary of ~~Great Plains Energy, and its consolidated subsidiaries~~Evergy
~~KCP&L Receivables Company~~MDNR		~~Kansas City Power & Light Receivables Company, a wholly owned subsidiary~~Missouri Department of ~~KCP&L~~Natural Resources
~~kWh~~MECG		~~Kilowatt hour~~Midwest Energy Consumers Group
MEEIA		Missouri Energy Efficiency Investment Act
~~Merger Sub~~Monarch Energy		~~King~~Monarch Energy Holding, Inc.~~, a Kansas corporation and wholly owned subsidiary of Holdco~~
~~MGP~~		~~Manufactured gas plant~~
~~MPS Merchant~~		~~MPS Merchant Services, Inc., a wholly owned subsidiary of GMO~~
MPSC		Public Service Commission of the State of Missouri
MW		Megawatt
MWh		Megawatt hour



~~Abbreviation or Acronym~~NAAQS		~~Definition~~National Ambient Air Quality Standards
NAV		Net Asset Value
~~NRC~~ NO₂		~~Nuclear Regulatory Commission~~Nitrogen dioxide
~~OMERS~~NSR		~~OCM Credit Portfolio LP~~New source review
~~Original Merger Agreement~~OPC		~~Agreement and Plan~~Office of ~~Merger dated as of May 29, 2016,~~the Public Counsel
PM		Particulate matter
Prairie Wind		Prairie Wind Transmission, LLC, 50% owned by ~~and among Great Plains Energy, Westar and GP Star, Inc.~~Evergy Kansas Central
RSU		Restricted share unit
RTO		Regional transmission organization
SEC		Securities and Exchange Commission
~~Series A Preferred Stock~~ SO₂		~~7.25% Mandatory Convertible Preferred Stock, Series A~~Sulfur dioxide
~~Series B Preferred Stock~~SPP		~~7.00% Series B Mandatory Convertible Preferred Stock~~Southwest Power Pool, Inc.
TCJA		Tax Cuts and Jobs Act
TFR		Transmission formula rate
Transource		Transource Energy, LLC and its subsidiaries, 13.5% owned by ~~GPETHC~~Evergy Transmission Company
~~WCNOC~~VIE		~~Wolf Creek Nuclear Operating Corporation~~Variable interest entity
~~Westar~~WIIN		~~Westar Energy, Inc.~~
~~Westar Board~~		~~Westar Board of Directors~~Water Infrastructure Improvements for the Nation
Wolf Creek		Wolf Creek Generating Station
WOTUS		Waters of the United States



GREAT PLAINS ENERGY INCORPORATED
Consolidated Balance Sheets
(Unaudited)

	September 30			December 31
	2017			2016
ASSETS	(millions, except share amounts)
Current Assets
Cash and cash equivalents		$	1,097.9		$	1,293.1
Time deposit		—			1,000.0
Receivables, net		186.4			166.0
Accounts receivable pledged as collateral		195.0			172.4
Fuel inventories, at average cost		89.2			108.8
Materials and supplies, at average cost		171.9			162.2
Deferred refueling outage costs		10.2			22.3
Refundable income taxes		1.4			—
Interest rate derivative instruments		77.4			79.3
Prepaid expenses and other assets		31.5			55.4
Total		1,860.9			3,059.5
Utility Plant, at Original Cost
Electric		13,552.9			13,597.7
Less - accumulated depreciation		5,149.5			5,106.9
Net utility plant in service		8,403.4			8,490.8
Construction work in progress		415.0			403.9
Plant to be retired, net		146.3			—
Nuclear fuel, net of amortization of $196.2 and $172.1		64.9			62.0
Total		9,029.6			8,956.7
Investments and Other Assets
Nuclear decommissioning trust fund		247.5			222.9
Regulatory assets		1,005.5			1,048.0
Goodwill		169.0			169.0
Other		116.4			113.9
Total		1,538.4			1,553.8
Total		$	12,428.9		$	13,570.0



GREAT PLAINS ENERGY INCORPORATED
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
	Three Months Ended September 30						Year to Date September 30
	2017			2016			2017			2016
Operating Revenues	(millions, except per share amounts)
Electric revenues	$	857.2		$	856.8		$	2,110.5		$	2,099.7
Operating Expenses
Fuel and purchased power	180.0			184.1			464.0			462.2
Transmission	29.1			23.8			80.4			64.5
Utility operating and maintenance expenses	187.9			193.3			555.0			553.1
Costs to achieve the anticipated merger with Westar Energy, Inc.	(2.4		)	14.4			24.4			19.4
Depreciation and amortization	92.7			86.4			277.7			256.9
General taxes	63.5			63.7			176.1			174.5
Other	0.5			9.2			3.1			15.0
Total	551.3			574.9			1,580.7			1,545.6
Operating income	305.9			281.9			529.8			554.1
Other Income (Expense)
Non-operating income	8.1			4.3			27.6			9.7
Non-operating expenses	(20.3		)	(3.0		)	(27.9		)	(10.7		)
Loss on Series B Preferred Stock dividend make-whole provisions (Note 12)	(67.7		)	—			(124.8		)	—
Loss on extinguishment of debt (Note 11)	(82.8		)	—			(82.8		)	—
Total	(162.7		)	1.3			(207.9		)	(1.0		)
Interest charges	(30.9		)	(67.6		)	(242.8		)	(251.7		)
Income before income tax expense and income from equity investments	112.3			215.6			79.1			301.4
Income tax expense	(102.3		)	(82.7		)	(87.2		)	(111.5		)
Income from equity investments, net of income taxes	0.5			0.7			2.0			2.1
Net income (loss)	10.5			133.6			(6.1		)	192.0
Preferred stock dividend requirements and redemption premium	7.1			0.9			37.3			1.7
Earnings (loss) available for common shareholders	$	3.4		$	132.7		$	(43.4	)	$	190.3

Average number of basic common shares outstanding	215.6			154.6			215.5			154.5
Average number of diluted common shares outstanding	215.7			154.9			215.5			154.9

Basic and diluted earnings (loss) per common share	$	0.02		$	0.86		$	(0.20	)	$	1.23

Cash dividends per common share	$	0.275		$	0.2625		$	0.825		$	0.7875
Comprehensive Income (Loss)
Net income (loss)	$	10.5		$	133.6		$	(6.1	)	$	192.0
Other comprehensive income
Derivative hedging activity
Reclassification to expenses, net of tax	1.3			1.3			4.1			4.1
Derivative hedging activity, net of tax	1.3			1.3			4.1			4.1
Defined benefit pension plans
Amortization of net losses included in net periodic benefit costs, net of tax	0.1			0.2			0.3			0.4
Change in unrecognized pension expense, net of tax	0.1			0.2			0.3			0.4
Total other comprehensive income	1.4			1.5			4.4			4.5
Comprehensive income (loss)	$	11.9		$	135.1		$	(1.7	)	$	196.5



GREAT PLAINS ENERGY INCORPORATED
Consolidated Statements of Cash Flows
(Unaudited)

Year to Date September 30	2017			2016
Cash Flows from Operating Activities	(millions)
Net income (loss)	$	(6.1	)	$	192.0
Adjustments to reconcile income (loss) to net cash from operating activities:
Depreciation and amortization	277.7			256.9
Amortization of:
Nuclear fuel	24.1			22.4
Other	55.2			52.4
Deferred income taxes, net	89.7			109.9
Investment tax credit amortization	(1.1		)	(1.1		)
Income from equity investments, net of income taxes	(2.0		)	(2.1		)
Fair value impacts of interest rate swaps	1.9			78.8
Loss on Series B Preferred Stock dividend make-whole provisions (Note 12)	124.8			—
Loss on extinguishment of debt (Note 11)	82.8			—
Other operating activities (Note 3)	2.7			(24.4		)
Net cash from operating activities	649.7			684.8
Cash Flows from Investing Activities
Utility capital expenditures	(392.5		)	(435.3		)
Allowance for borrowed funds used during construction	(5.1		)	(4.7		)
Purchases of nuclear decommissioning trust investments	(23.8		)	(23.7		)
Proceeds from nuclear decommissioning trust investments	21.3			21.2
Proceeds from time deposit	1,000.0			—
Other investing activities	(30.7		)	(48.7		)
Net cash from investing activities	569.2			(491.2		)
Cash Flows from Financing Activities
Issuance of common stock	2.9			2.4
Issuance of long-term debt	4,591.1			—
Issuance fees	(38.3		)	(68.7		)
Repayment of long-term debt, including redemption premium	(4,725.1		)	(1.1		)
Net change in short-term borrowings	(86.9		)	27.1
Net change in collateralized short-term borrowings	22.6			15.0
Dividends paid	(212.7		)	(122.5		)
Redemption of preferred stock	(963.4		)	(40.1		)
Purchase of treasury stock	(4.1		)	(4.9		)
Other financing activities	(0.2		)	(0.1		)
Net cash from financing activities	(1,414.1		)	(192.9		)
Net Change in Cash and Cash Equivalents	(195.2		)	0.7
Cash and Cash Equivalents at Beginning of Year	1,293.1			11.3
Cash and Cash Equivalents at End of Period	$	1,097.9		$	12.0



GREAT PLAINS ENERGY INCORPORATED
Consolidated Statements of Shareholders' Equity
(Unaudited)

Year to Date September 30	2017					2016
	Shares		Amount			Shares		Amount
Common Stock	(millions, except share amounts)
Beginning balance	215,479,105		$	4,217.0		154,504,900		$	2,646.7
Issuance of common stock	319,743		11.6			420,207		12.5
Equity compensation expense, net of forfeitures			4.0					3.1
Unearned Compensation
Issuance of restricted common stock			(2.3		)			(2.8		)
Forfeiture of restricted common stock			0.6					—
Compensation expense recognized			1.7					2.0
Other			(1.5		)			0.2
Ending balance	215,798,848		4,231.1			154,925,107		2,661.7
Cumulative Preferred Stock
Beginning balance	—		—			390,000		39.0
Redemption of cumulative preferred stock	—		—			(390,000	)	(39.0		)
Ending balance	—		—			—		—
Preference Stock
Beginning balance	862,500		836.2			—		—
Redemption of Series B Preferred Stock	(862,500	)	(836.2		)	—		—
Ending balance	—		—			—		—
Retained Earnings
Beginning balance			1,119.2					1,024.4
Net income (loss)			(6.1		)			192.0
Redemption premium on preferred stock			(2.4		)			(0.6		)
Dividends:
Common stock ($0.825 and $0.7875 per share)			(177.8		)			(121.8		)
Preferred stock - at required rates			(34.9		)			(0.7		)
Performance shares			(0.4		)			(0.6		)
Ending balance			897.6					1,092.7
Treasury Stock
Beginning balance	(128,087	)	(3.8		)	(101,229	)	(2.6		)
Treasury shares acquired	(145,301	)	(4.2		)	(136,562	)	(4.1		)
Treasury shares reissued	136,436		4.0			109,695		2.9
Ending balance	(136,952	)	(4.0		)	(128,096	)	(3.8		)
Accumulated Other Comprehensive Income (Loss)
Beginning balance			(6.6		)			(12.0		)
Derivative hedging activity, net of tax			4.1					4.1
Change in unrecognized pension expense, net of tax			0.3					0.4
Ending balance			(2.2		)			(7.5		)
Total Great Plains Energy Shareholders' Equity			$	5,122.5				$	3,743.1



EVERGY, INC.
Consolidated Statements of Changes in Equity
(Unaudited)

	Evergy, Inc. Shareholders
	Common stock shares		Common stock			Retained earnings			AOCI		Non-controlling interests			Total equity
	(millions, except share amounts)
Balance as of December 31, 2017	142,094,275		$	2,734.8		$	1,173.3		$	—	$	(47.7	)	$	3,860.4
Net income	—		—			60.5			—		2.4			62.9
Issuance of stock compensation and reinvested dividends, net of tax withholding	138,828		(3.7		)	—			—		—			(3.7		)
Dividends declared on common stock ($0.40 per share)	—		—			(57.7		)	—		—			(57.7		)
Stock compensation expense	—		2.5			—			—		—			2.5
Balance as of March 31, 2018	142,233,103		2,733.6			1,176.1			—		(45.3		)	3,864.4
Net income	—		—			101.8			—		2.6			104.4
Issuance of stock to Great Plains Energy shareholders	128,947,518		6,979.9			—			—		—			6,979.9
Issuance of restricted common stock	122,505		—			—			—		—			—
Issuance of stock compensation and reinvested dividends, net of tax withholding	384,617		(13.3		)	—			—		—			(13.3		)
Dividends declared on common stock ($0.40 per share)	—		—			(57.8		)	—		—			(57.8		)
Stock compensation expense	—		19.3			—			—		—			19.3
Other	—		(1.4		)	(0.1		)	—		—			(1.5		)
Balance as of June 30, 2018	271,687,743		9,718.1			1,220.0			—		(42.7		)	10,895.4
Net income	—		—			355.0			—		2.6			357.6
Issuance of stock compensation and reinvested dividends, net of tax withholding	4,914		0.2			—			—		—			0.2
Dividends declared on common stock ($0.46 per share)	—		—			(122.0		)	—		—			(122.0		)
Dividend equivalents declared	—		—			(0.6		)	—		—			(0.6		)
Stock compensation expense	—		3.4			—			—		—			3.4
Repurchase of common stock	(6,895,073	)	(486.1		)	—			—		—			(486.1		)
Other	—		0.8			0.1			—		—			0.9
Balance as of September 30, 2018	264,797,584		$	9,236.4		$	1,452.5		$	—	$	(40.1	)	$	10,648.8



KANSAS CITY POWER & LIGHT COMPANY
Consolidated Balance Sheets
(Unaudited)

	September 30			December 31
	2017			2016
ASSETS	(millions, except share amounts)
Current Assets
Cash and cash equivalents		$	4.6		$	4.5
Receivables, net		143.8			139.1
Related party receivables		82.1			67.2
Accounts receivable pledged as collateral		130.0			110.0
Fuel inventories, at average cost		62.1			72.9
Materials and supplies, at average cost		126.1			118.9
Deferred refueling outage costs		10.2			22.3
Refundable income taxes		—			12.7
Prepaid expenses and other assets		26.9			27.9
Total		585.8			575.5
Utility Plant, at Original Cost
Electric		10,120.8			9,925.1
Less - accumulated depreciation		4,012.7			3,858.4
Net utility plant in service		6,108.1			6,066.7
Construction work in progress		310.8			300.4
Nuclear fuel, net of amortization of $196.2 and $172.1		64.9			62.0
Total		6,483.8			6,429.1
Investments and Other Assets
Nuclear decommissioning trust fund		247.5			222.9
Regulatory assets		761.4			801.8
Other		39.1			29.1
Total		1,048.0			1,053.8
Total		$	8,117.6		$	8,058.4



EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
(Unaudited)

	September 30			December 31
	2019			2018
ASSETS	(millions, except share amounts)
CURRENT ASSETS:
Cash and cash equivalents		$	7.7		$	44.5
Receivables, net		140.7			84.3
Related party receivables		3.1			2.6
Accounts receivable pledged as collateral		200.0			185.0
Fuel inventory and supplies		247.7			276.8
Income taxes receivable		6.1			42.7
Regulatory assets		71.7			97.1
Prepaid expenses and other assets		29.9			35.0
Total Current Assets		706.9			768.0
PROPERTY, PLANT AND EQUIPMENT, NET		9,753.7			9,718.3
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		163.8			169.2
OTHER ASSETS:
Regulatory assets		696.6			700.4
Nuclear decommissioning trust fund		258.5			227.5
Other		266.7			233.4
Total Other Assets		1,221.8			1,161.3
TOTAL ASSETS		$	11,846.2		$	11,816.8



EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Income
(Unaudited)

	Three Months Ended September 30						Year to Date September 30
	2019			2018			2019			2018
	(millions)
OPERATING REVENUES	$	749.0		$	764.8		$	1,931.3		$	2,015.9
OPERATING EXPENSES:
Fuel and purchased power	144.9			169.7			375.3			463.2
SPP network transmission costs	62.4			58.4			188.7			194.4
Operating and maintenance	140.4			141.7			396.4			491.4
Depreciation and amortization	110.9			95.9			331.3			281.6
Taxes other than income tax	48.0			42.2			145.3			128.8
Total Operating Expenses	506.6			507.9			1,437.0			1,559.4
INCOME FROM OPERATIONS	242.4			256.9			494.3			456.5
OTHER INCOME (EXPENSE):
Investment earnings (loss)	0.6			—			3.0			(0.4		)
Other income	2.3			1.3			13.0			4.9
Other expense	(10.8		)	(15.2		)	(29.9		)	(36.1		)
Total Other Expense, Net	(7.9		)	(13.9		)	(13.9		)	(31.6		)
Interest expense	41.7			43.9			134.1			132.1
INCOME BEFORE INCOME TAXES	192.8			199.1			346.3			292.8
Income tax expense (benefit)	25.8			22.4			46.2			(22.0		)
Equity in earnings of equity method investees, net of income taxes	1.2			1.3			3.6			3.7
NET INCOME	168.2			178.0			303.7			318.5
Less: Net income attributable to noncontrolling interests	4.1			2.6			12.9			7.6
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC.	$	164.1		$	175.4		$	290.8		$	310.9



KANSAS CITY POWER & LIGHT COMPANY
Consolidated Statements of Common Shareholder's Equity
(Unaudited)

Year to Date September 30	2017				2016
	Shares	Amount			Shares	Amount
	(millions, except share amounts)
Common Stock	1	$	1,563.1		1	$	1,563.1
Retained Earnings
Beginning balance		982.6				879.6
Net income		177.9				208.2
Cumulative effect of adoption of ASU 2016-09 (Note 1)		(0.7		)		—
Dividends:
Common stock held by Great Plains Energy		(182.0		)		(77.0		)
Ending balance		977.8				1,010.8
Accumulated Other Comprehensive Income (Loss)
Beginning balance		(4.2		)		(9.6		)
Derivative hedging activity, net of tax		3.8				4.0
Ending balance		(0.4		)		(5.6		)
Total Common Shareholder's Equity		$	2,540.5			$	2,568.3



EVERGY METRO, INC
Consolidated Statements of Changes in Equity
(Unaudited)

	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, 2017	1	$	1,563.1	$	949.7		$	0.4		$	2,513.2
Net income	—	—		20.2			—			20.2
Dividends declared on common stock	—	—		(60.0		)	—			(60.0		)
Derivative hedging activity, net of tax	—	—		—			0.9			0.9
Balance as of March 31, 2018	1	1,563.1		909.9			1.3			2,474.3
Net income	—	—		24.6			—			24.6
Dividends declared on common stock	—	—		(60.0		)	—			(60.0		)
Derivative hedging activity, net of tax	—	—		—			1.0			1.0
Balance as of June 30, 2018	1	1,563.1		874.5			2.3			2,439.9
Net income	—	—		120.3			—			120.3
Dividends declared on common stock	—	—		(60.0		)	—			(60.0		)
Derivative hedging activity, net of tax	—	—		—			0.8			0.8
Balance as of September 30, 2018	1	$	1,563.1	$	934.8		$	3.1		$	2,501.0

Balance as of December 31, 2018	1	$	1,563.1	$	932.6		$	4.1		$	2,499.8
Net income	—	—		16.0			—			16.0
Derivative hedging activity, net of tax	—	—		—			0.9			0.9
Balance as of March 31, 2019	1	1,563.1		948.6			5.0			2,516.7
Net income	—	—		59.4			—			59.4
Dividends declared on common stock	—	—		(65.0		)	—			(65.0		)
Derivative hedging activity, net of tax	—	—		—			(0.1		)	(0.1		)
Balance as of June 30, 2019	1	1,563.1		943.0			4.9			2,511.0
Net income	—	—		151.9			—			151.9
Dividends declared on common stock	—	—		(70.0		)	—			(70.0		)
Balance as of September 30, 2019	1	$	1,563.1	$	1,024.9		$	4.9		$	2,592.9



	(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



Three Months Ended September 30, 2018	Evergy		Evergy Kansas Central		Evergy Metro
Revenues	(millions)
Residential	$	647.1	$	270.5	$	243.5
Commercial	530.5		217.4		231.1
Industrial	173.4		111.9		39.1
Other retail	10.9		5.4		2.7
Total electric retail	$	1,361.9	$	605.2	$	516.4
Wholesale	118.5		82.4		29.9
Transmission	80.6		72.2		3.8
Industrial steam and other	6.0		1.5		0.7
Total revenue from contracts with customers	$	1,567.0	$	761.3	$	550.8
Other	15.5		3.5		8.8
Operating revenues	$	1,582.5	$	764.8	$	559.6

Year to Date September 30, 2018	Evergy		Evergy Kansas Central		Evergy Metro^(a)
Revenues	(millions)
Residential	$	1,169.4	$	671.9	$	585.4
Commercial	945.0		542.8		609.2
Industrial	375.5		297.2		105.4
Other retail	21.5		15.3		7.7
Total electric retail	$	2,511.4	$	1,527.2	$	1,307.7
Wholesale	302.4		263.7		38.5
Transmission	227.6		216.3		11.0
Industrial steam and other	10.0		4.6		3.0
Total revenue from contracts with customers	$	3,051.4	$	2,011.8	$	1,360.2
Other	24.7		4.1		48.7
Operating revenues	$	3,076.1	$	2,015.9	$	1,408.9



Great Plains Energy Other Operating Activities
Year to Date September 30	2017			2016
Cash flows affected by changes in:	(millions)
Receivables	$	(20.4	)	$	(45.9	)
Accounts receivable pledged as collateral	(22.6		)	(15.0		)
Fuel inventories	19.6			19.8
Materials and supplies	(9.7		)	(5.3		)
Accounts payable	(125.7		)	(119.8		)
Accrued taxes	92.4			97.2
Accrued interest	6.6			16.7
Deferred refueling outage costs	12.1			7.5
Pension and post-retirement benefit obligations	52.0			53.2
Allowance for equity funds used during construction	(3.4		)	(4.3		)
Fuel recovery mechanisms	(10.1		)	(16.8		)
Other	11.9			(11.7		)
Total other operating activities	$	2.7		$	(24.4	)
Cash paid during the period:
Interest	$	198.7		$	130.2
Income taxes	$	0.1		$	0.2
Non-cash investing activities:
Liabilities accrued for capital expenditures	$	31.2		$	30.7



KCP&L Other Operating Activities
Year to Date September 30	2017			2016
Cash flows affected by changes in:	(millions)
Receivables	$	(19.5	)	$	(53.5	)
Accounts receivable pledged as collateral	(20.0		)	—
Fuel inventories	10.8			12.7
Materials and supplies	(7.2		)	(3.8		)
Accounts payable	(75.1		)	(80.3		)
Accrued taxes	122.7			179.3
Accrued interest	8.1			8.9
Deferred refueling outage costs	12.1			7.5
Pension and post-retirement benefit obligations	48.6			53.7
Allowance for equity funds used during construction	(3.4		)	(4.0		)
Fuel recovery mechanisms	7.6			(31.0		)
Other	(16.0		)	(14.8		)
Total other operating activities	$	68.7		$	74.7
Cash paid during the period:
Interest	$	88.6		$	86.7
Income taxes	$	4.9		$	—
Non-cash investing activities:
Liabilities accrued for capital expenditures	$	24.7		$	25.7



		KCC			MPSC
	(millions)
Current cost of decommissioning (in 2017 dollars)
Total Station		$	813.7		$	813.7
KCP&L's 47% Share		382.5			382.5

Future cost of decommissioning (in 2045-2053 dollars) ^(a)
Total Station		$	1,982.4		$	2,137.8
KCP&L's 47% Share		931.7			1,004.8

Annual escalation factor		2.91		%	3.16		%
Annual return on trust assets ^(b)		5.64		%	5.46		%



	September 30, 2017												December 31, 2016
	Cost Basis		Unrealized Gains			Unrealized Losses				Fair Value			Cost Basis			Unrealized Gains			Unrealized Losses				Fair Value
	(millions)
Equity securities	$	95.8		$	79.2		$	(0.8	)		$	174.2		$	93.3		$	62.1		$	(1.5	)		$	153.9
Debt securities	67.3			2.7			(0.2		)		69.8			63.4			2.3			(0.5		)		65.2
Other	3.5			—			—				3.5			3.8			—			—				3.8
Total	$	166.6		$	81.9		$	(1.0	)		$	247.5		$	160.5		$	64.4		$	(2.0	)		$	222.9



	Pension Benefits									Post-Retirement Benefits
Three Months Ended September 30, 2019	Evergy			Evergy Kansas Central			Evergy Metro			Evergy			Evergy Kansas Central			Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	19.1		$	7.3		$	11.8		$	0.6		$	0.2		$	0.4
Interest cost	27.5			13.4			14.1			2.6			1.4			1.2
Expected return on plan assets	(27.0		)	(13.7		)	(12.3		)	(2.5		)	(1.7		)	(0.8		)
Prior service cost	0.5			0.5			0.2			0.1			0.1			—
Recognized net actuarial (gain)/loss	6.9			6.2			12.2			(0.3		)	(0.1		)	(0.3		)
Settlement and special termination benefits	14.5			—			20.8			—			—			—
Net periodic benefit costs before regulatory adjustment and intercompany allocations	41.5			13.7			46.8			0.5			(0.1		)	0.5
Regulatory adjustment	4.9			0.5			(14.7		)	(0.8		)	(0.7		)	0.1
Intercompany allocations	—			—			(13.6		)	—			—			(0.2		)
Net periodic benefit costs (income)	$	46.4		$	14.2		$	18.5		$	(0.3	)	$	(0.8	)	$	0.4

	Pension Benefits									Post-Retirement Benefits
Year to Date September 30, 2019	Evergy			Evergy Kansas Central			Evergy Metro			Evergy			Evergy Kansas Central			Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	57.3		$	21.8		$	35.5		$	1.9		$	0.8		$	1.1
Interest cost	82.4			40.3			42.1			7.9			4.2			3.7
Expected return on plan assets	(80.9		)	(41.1		)	(36.9		)	(7.5		)	(5.0		)	(2.5		)
Prior service cost	1.5			1.3			0.7			0.3			0.3			—
Recognized net actuarial (gain)/loss	20.6			19.0			36.7			(0.9		)	(0.4		)	(1.1		)
Settlement and special termination benefits	14.5			—			20.8			—			—			—
Net periodic benefit costs before regulatory adjustment and intercompany allocations	95.4			41.3			98.9			1.7			(0.1		)	1.2
Regulatory adjustment	30.4			1.5			(15.9		)	(2.5		)	(2.2		)	0.3
Intercompany allocations	—			—			(27.6		)	—			—			(0.3		)
Net periodic benefit costs (income)	$	125.8		$	42.8		$	55.4		$	(0.8	)	$	(2.3	)	$	1.2


	Pension Benefits						Other Benefits						Pension Benefits									Post-Retirement Benefits
Three Months Ended September 30	2017			2016			2017			2016
Three Months Ended September 30, 2018													Evergy			Evergy Kansas Central			Evergy Metro			Evergy			Evergy Kansas Central			Evergy Metro
Components of net periodic benefit costs	(millions)												(millions)
Service cost	$	11.0		$	10.5		$	0.5		$	0.7		$	20.2		$	8.0		$	12.2		$	0.7		$	0.4		$	0.5
Interest cost	13.4			13.2			1.4			1.5			26.3			12.7			12.0			2.5			1.2			1.2
Expected return on plan assets	(12.8		)	(12.3		)	(0.7		)	(0.8		)	(27.0		)	(13.9		)	(13.9		)	(2.5		)	(1.8		)	(0.7		)
Prior service cost	0.2			0.2			—			0.3			0.3			0.2			0.2			0.1			0.1			—
Recognized net actuarial (gain)/loss	12.4			13.0			(0.1		)	(0.3		)	8.1			8.1			10.9			(0.1		)	(0.1		)	—
Net periodic benefit costs before regulatory adjustment	24.2			24.6			1.1			1.4
Net periodic benefit costs before regulatory adjustment and intercompany allocations													27.9			15.1			21.4			0.7			(0.2		)	1.0
Regulatory adjustment	(0.2		)	(1.1		)	0.1			1.4			2.6			2.8			0.7			(0.4		)	(0.4		)	0.1
Net periodic benefit costs	$	24.0		$	23.5		$	1.2		$	2.8
Intercompany allocations													—			—			(4.9		)	—			—			(0.2		)
Net periodic benefit costs (income)													$	30.5		$	17.9		$	17.2		$	0.3		$	(0.6	)	$	0.9

	Pension Benefits						Other Benefits						Pension Benefits									Post-Retirement Benefits
Year to Date September 30	2017			2016			2017			2016
Year to Date September 30, 2018													Evergy			Evergy Kansas Central			Evergy Metro^(a)			Evergy			Evergy Kansas Central			Evergy Metro^(a)
Components of net periodic benefit costs	(millions)												(millions)
Service cost	$	33.0		$	31.5		$	1.5		$	2.0		$	40.4		$	24.1		$	36.5		$	1.5		$	1.0		$	1.5
Interest cost	40.2			39.7			4.1			4.6			56.2			38.1			37.4			5.4			3.7			3.6
Expected return on plan assets	(38.4		)	(36.9		)	(2.0		)	(2.3		)	(59.3		)	(41.9		)	(41.6		)	(6.2		)	(5.2		)	(2.1		)
Prior service cost	0.6			0.5			—			0.9			0.6			0.5			0.5			0.3			0.3			—
Recognized net actuarial (gain)/loss	37.2			38.9			(0.3		)	(1.1		)	24.4			24.4			33.8			(0.4		)	(0.4		)	(0.1		)
Net periodic benefit costs before regulatory adjustment	72.6			73.7			3.3			4.1
Net periodic benefit costs before regulatory adjustment and intercompany allocations													62.3			45.2			66.6			0.6			(0.6		)	2.9
Regulatory adjustment	2.3			(3.1		)	1.9			4.4			8.4			8.4			2.1			(1.3		)	(1.3		)	(0.2		)
Net periodic benefit costs	$	74.9		$	70.6		$	5.2		$	8.5
Intercompany allocations													—			—			(17.1		)	—			—			(0.8		)
Net periodic benefit costs (income)													$	70.7		$	53.6		$	51.6		$	(0.7	)	$	(1.9	)	$	1.9



	Performance Shares			Grant Date Fair Value*
Beginning balance January 1, 2017		625,100			$	28.13
Granted		236,433			31.26
Earned		(212,992	)		28.48
Forfeited		(97,036	)		29.24
Ending balance September 30, 2017		551,505			29.12



	Nonvested Restricted Stock			Grant Date Fair Value*
Beginning balance January 1, 2017		249,672			$	27.20
Granted and issued		78,840			28.60
Vested		(109,813	)		27.48
Forfeited		(22,521	)		27.26
Ending balance September 30, 2017		196,178			27.81



			Amounts Drawn
	Credit Facility		Commercial Paper		Letters of Credit		Cash Borrowings		Available Borrowings		Weighted Average Interest Rate on Short-Term Borrowings
September 30, 2019	(millions)
Evergy, Inc.	$	450.0	n/a		$	1.0	$	—	$	449.0	—%
Evergy Kansas Central	1,000.0		182.4		9.2		—		808.4		2.29%
Evergy Metro	600.0		74.9		—		—		525.1		2.28%
Evergy Missouri West	450.0		103.3		2.1		—		344.6		2.30%
Evergy	$	2,500.0	$	360.6	$	12.3	$	—	$	2,127.1

December 31, 2018
Evergy, Inc.	$	450.0	n/a		$	1.0	$	—	$	449.0	—%
Evergy Kansas Central	1,000.0		411.7		18.3		—		570.0		3.08%
Evergy Metro	600.0		176.9		2.7		—		420.4		2.95%
Evergy Missouri West	450.0		150.0		2.1		—		297.9		3.00%
Evergy	$	2,500.0	$	738.6	$	24.1	$	—	$	1,737.3



		September 30				December 31
	Year Due	2017				2016
KCP&L			(millions)
General Mortgage Bonds
2.95% EIRR bonds	2023		$	79.5			$	110.5
7.15% Series 2009A (8.59% rate)^(a)	2019		400.0				400.0
Senior Notes
5.85% Series (5.72% rate)^(a)			—				250.0
6.375% Series (7.49% rate)^(a)	2018		350.0				350.0
3.15% Series	2023		300.0				300.0
3.65% Series	2025		350.0				350.0
6.05% Series (5.78% rate)^(a)	2035		250.0				250.0
5.30% Series	2041		400.0				400.0
4.20% Series	2047		300.0				—
EIRR Bonds
0.889% Series 2007A and 2007B^(b)	2035		146.5				146.5
2.875% Series 2008	2038		23.4				23.4
Current maturities			(350.0		)		(281.0		)
Unamortized discount and debt issuance costs			(17.7		)		(15.4		)
Total KCP&L excluding current maturities^(c)			2,231.7				2,284.0
Other Great Plains Energy
GMO First Mortgage Bonds 9.44% Series	2018-2021		4.6				5.7
GMO Senior Notes
8.27% Series	2021		80.9				80.9
3.49% Series A	2025		125.0				125.0
4.06% Series B	2033		75.0				75.0
4.74% Series C	2043		150.0				150.0
GMO Medium Term Notes
7.33% Series	2023		3.0				3.0
7.17% Series	2023		7.0				7.0
Great Plains Energy Senior Notes
6.875% Series (7.33% rate)^(a)			—				100.0
4.85% Series	2021		350.0				350.0
5.292% Series	2022		287.5				287.5
Current maturities			(1.1		)		(101.1		)
Unamortized discount and premium, net and debt issuance costs			(1.6		)		(1.8		)
Total Great Plains Energy excluding current maturities^(c)			$	3,312.0			$	3,365.2



Description	December 31 2016			Level 1			Level 2			Level 3
KCP&L		(millions)
Assets
Nuclear decommissioning trust ^(a)
Equity securities		$	153.9		$	153.9		$	—		$	—
Debt securities
U.S. Treasury		27.8			27.8			—			—
U.S. Agency		1.7			—			1.7			—
State and local obligations		3.2			—			3.2			—
Corporate bonds		32.4			—			32.4			—
Foreign governments		0.1			—			0.1			—
Cash equivalents		3.8			3.8			—			—
Total nuclear decommissioning trust		222.9			185.5			37.4			—
Self-insured health plan trust ^(b)
Equity securities		0.9			0.9			—			—
Debt securities		4.8			0.1			4.7			—
Cash and cash equivalents		5.6			5.6			—			—
Total self-insured health plan trust		11.3			6.6			4.7			—
Total		$	234.2		$	192.1		$	42.1		$	—
Other Great Plains Energy
Assets
Interest rate derivative instruments ^(c)		$	79.3		$	—		$	—		$	79.3
Total		$	79.3		$	—		$	—		$	79.3
Great Plains Energy
Assets
Nuclear decommissioning trust ^(a)		$	222.9		$	185.5		$	37.4		$	—
Self-insured health plan trust ^(b)		11.3			6.6			4.7			—
Interest rate derivative instruments ^(c)		79.3			—			—			79.3
Total		$	313.5		$	192.1		$	42.1		$	79.3



Great Plains Energy
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Derivative Instruments
	2017			2016
	(millions)
Net liability at July 1	$	(7.9	)	$	(77.0	)
Total realized/unrealized gains (losses):
included in interest charges	28.2			(1.8		)
included in loss on Series B Preferred Stock dividend make-whole provisions	(67.7		)	—
Settlements	124.8			—
Net asset (liability) at September 30	$	77.4		$	(78.8	)
Total unrealized gains (losses) relating to assets and liabilities still on the consolidated balance sheet at September 30:
included in interest charges	$	28.2		$	(1.8	)

Great Plains Energy
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Derivative Instruments
	2017			2016
	(millions)
Net asset at January 1	$	79.3		$	—
Total realized/unrealized losses:
included in interest charges	(1.9		)	(78.8		)
included in loss on Series B Preferred Stock dividend make-whole provisions	(124.8		)	—
Settlements	124.8			—
Net asset (liability) at September 30	$	77.4		$	(78.8	)
Total unrealized losses relating to assets and liabilities still on the consolidated balance sheet at September 30:
included in interest charges	$	(1.9	)	$	(78.8	)



Great Plains Energy
	Gains and Losses on Cash Flow Hedges^(a)				Defined Benefit Pension Items^(a)				Total^(a)
	(millions)
Year to Date September 30, 2017
Beginning balance January 1		$	(4.5	)		$	(2.1	)	$	(6.6	)
Amounts reclassified from accumulated other comprehensive loss		4.1				0.3			4.4
Net current period other comprehensive income		4.1				0.3			4.4
Ending balance September 30		$	(0.4	)		$	(1.8	)	$	(2.2	)
Year to Date September 30, 2016
Beginning balance January 1		$	(10.1	)		$	(1.9	)	$	(12.0	)
Amounts reclassified from accumulated other comprehensive loss		4.1				0.4			4.5
Net current period other comprehensive income		4.1				0.4			4.5
Ending balance September 30		$	(6.0	)		$	(1.5	)	$	(7.5	)



Great Plains Energy
Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Loss						Affected Line Item in the Income Statement
Three Months Ended September 30	2017			2016
	(millions)
Gains and (losses) on cash flow hedges (effective portion)
Interest rate contracts	$	(2.1	)	$	(2.3	)	Interest charges
	(2.1		)	(2.3		)	Income before income tax expense and income from equity investments
	0.8			1.0			Income tax benefit
	$	(1.3	)	$	(1.3	)	Net income (loss)
Amortization of defined benefit pension items
Net losses included in net periodic benefit costs	$	(0.2	)	$	(0.2	)	Utility operating and maintenance expenses
	(0.2		)	(0.2		)	Income before income tax expense and income from equity investments
	0.1			—			Income tax benefit
	$	(0.1	)	$	(0.2	)	Net income (loss)

Total reclassifications, net of tax	$	(1.4	)	$	(1.5	)	Net income (loss)

Great Plains Energy
Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Loss						Affected Line Item in the Income Statement
Year to Date September 30	2017			2016
	(millions)
Gains and (losses) on cash flow hedges (effective portion)
Interest rate contracts	$	(6.7	)	$	(6.9	)	Interest charges
	(6.7		)	(6.9		)	Income before income tax expense and income from equity investments
	2.6			2.8			Income tax benefit
	$	(4.1	)	$	(4.1	)	Net income (loss)
Amortization of defined benefit pension items
Net losses included in net periodic benefit costs	$	(0.6	)	$	(0.6	)	Utility operating and maintenance expenses
	(0.6		)	(0.6		)	Income before income tax expense and income from equity investments
	0.3			0.2			Income tax benefit
	$	(0.3	)	$	(0.4	)	Net income (loss)

Total reclassifications, net of tax	$	(4.4	)	$	(4.5	)	Net income (loss)



Three Months Ended September 30, 2017	Electric Utility				Other				Eliminations			Great Plains Energy
		(millions)
Operating revenues		$	857.2			$	—			$	—		$	857.2
Depreciation and amortization		(92.7		)		—				—			(92.7		)
Interest (charges) income		(49.1		)		10.1				8.1			(30.9		)
Income tax expense		(92.7		)		(9.6		)		—			(102.3		)
Net income (loss)		162.9				(152.4		)		—			10.5
��
Year to Date September 30, 2017	Electric Utility				Other				Eliminations			Great Plains Energy
		(millions)
Operating revenues		$	2,110.5			$	—			$	—		$	2,110.5
Depreciation and amortization		(277.7		)		—				—			(277.7		)
Interest (charges) income		(149.3		)		(117.6		)		24.1			(242.8		)
Income tax (expense) benefit		(142.6		)		55.4				—			(87.2		)
Net income (loss)		247.4				(253.5		)		—			(6.1		)

Three Months Ended September 30, 2016	Electric Utility				Other				Eliminations			Great Plains Energy
		(millions)
Operating revenues		$	856.8			$	—			$	—		$	856.8
Depreciation and amortization		(86.4		)		—				—			(86.4		)
Interest (charges) income		(49.3		)		(26.4		)		8.1			(67.6		)
Income tax (expense) benefit		(95.9		)		13.2				—			(82.7		)
Net income (loss)		161.1				(27.5		)		—			133.6

Year to Date September 30, 2016	Electric Utility				Other				Eliminations			Great Plains Energy
		(millions)
Operating revenues		$	2,099.7			$	—			$	—		$	2,099.7
Depreciation and amortization		(256.9		)		—				—			(256.9		)
Interest (charges) income		(147.4		)		(128.4		)		24.1			(251.7		)
Income tax (expense) benefit		(160.2		)		48.7				—			(111.5		)
Net income (loss)		278.4				(86.4		)		—			192.0