UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

~~[X]~~☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended June 30, ~~2018~~2023

~~[ ]~~☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from _______to_______

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

001-38515

EVERGY, INC.

82-2733395

~~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~~

~~001-38515~~

~~EVERGY, INC.~~

~~82-2733395~~

~~(a Missouri corporation)~~

~~1200 Main Street~~

~~Kansas City, Missouri 64105~~

~~(816) 556-2200~~

~~001-03523~~

~~WESTAR ENERGY, INC.~~

~~48-0290150~~

~~(a Kansas corporation)~~

~~818 South Kansas Avenue~~

~~Topeka, Kansas 66612~~

~~(785) 575-6300~~

~~000-51873~~

~~KANSAS CITY POWER & LIGHT COMPANY~~

~~44-0308720~~

~~(a Missouri corporation)~~

~~1200 Main Street~~

~~Kansas City, Missouri 64105~~

~~(816) 556-2200~~

(a Missouri corporation)

1200 Main Street

Kansas City, Missouri 64105

(816) 556-2200

001-03523

EVERGY KANSAS CENTRAL, INC.

48-0290150

(a Kansas corporation)

818 South Kansas Avenue

Topeka, Kansas 66612

(785) 575-6300

000-51873

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

The Nasdaq Stock Market LLC

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Evergy, Inc.

Yes

~~Yes~~x

☒

☐

~~Westar Energy,~~Evergy Kansas Central, Inc.

Yes

~~Yes~~x

☒

☐

~~Kansas City Power & Light Company~~Evergy Metro, Inc.

Yes

~~Yes~~x

☒

☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files).

Evergy, Inc.

Yes

~~Yes~~x

☒

☐

~~Westar Energy,~~Evergy Kansas Central, Inc.

Yes

~~Yes~~x

☒

☐

~~Kansas City Power & Light Company~~Evergy Metro, Inc.

Yes

~~Yes~~x

☒

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Evergy, Inc.

Large Accelerated Filer

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

Evergy Kansas Central, Inc.

Large Accelerated Filer

☒☐

Accelerated Filer

☐

Non-accelerated Filer

☐x

Smaller Reporting Company

☐

Emerging Growth Company

☐

~~Westar Energy,~~Evergy Metro, Inc.

Large Accelerated Filer

☒☐

Accelerated Filer

☐

Non-accelerated Filer

☐x

Smaller Reporting Company

☐

Emerging Growth Company

☐

~~Kansas City Power & Light Company~~

☐

☒

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act.

Evergy, Inc.

☐

~~Westar Energy,~~Evergy Kansas Central, Inc.

☐

~~Kansas City Power & Light Company~~Evergy Metro, Inc.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Evergy, Inc.

Yes

~~Yes~~☐

☐

☒x

~~Westar Energy,~~Evergy Kansas Central, Inc.

Yes

~~Yes~~☐

☐

☒x

~~Kansas City Power & Light Company~~Evergy Metro, Inc.

Yes

~~Yes~~☐

☐

☒x

On July 31, 2018, Evergy, Inc. had 271,687,849 shares of common stock outstanding. On July 31, 2018, Kansas City Power & Light Company and Westar Energy, Inc. each had one share of common stock outstanding and held by Evergy, Inc.

~~Westar Energy,~~

On July 28, 2023, Evergy, Inc. had 229,702,154 shares of common stock outstanding. On July 28, 2023, Evergy Metro, Inc. and Evergy Kansas Central, Inc. each had one share of common stock outstanding and held by Evergy, Inc.

Evergy Kansas Central, Inc. and ~~Kansas City Power & Light Company~~Evergy Metro, Inc. meet the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and are therefore filing this Form 10-Q with the reduced disclosure format.

This combined Quarterly Report on Form 10-Q is provided by the following registrants: Evergy, Inc. (Evergy), ~~Westar Energy,~~Evergy Kansas Central, Inc. ~~(Westar Energy)~~(Evergy Kansas Central) and ~~Kansas City Power & Light Company (KCP&L)~~Evergy Metro, Inc. (Evergy Metro) (collectively, the Evergy Companies). Information relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other registrants.

This report should be read in its entirety. No one section of the report deals with all aspects of the subject matter. It should be read in conjunction with the ~~Westar Energy First Quarter 2018 Quarterly Report~~consolidated financial statements and related notes and with the management's discussion and analysis of financial condition and results of operations included in the annual report on Form ~~10-Q,~~10-K for the ~~Great Plains Energy Incorporated (Great Plains Energy)~~fiscal year ended December 31, 2022 for each of Evergy, Evergy Kansas Central and ~~KCP&L combined First Quarter 2018 Quarterly Report on~~Evergy Metro (2022 Form ~~10-Q, the Westar Energy 2017 Form 10-K and the Great Plains Energy and KCP&L combined 2017 Form 10-K.~~10-K).

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TABLE OF CONTENTS
						Page Number
Cautionary Statements Regarding Certain Forward-Looking Information						4
Glossary of Terms						56

Part I - Financial Information

Item 1.			Financial Statements
			Evergy, Inc.
			Unaudited Consolidated Balance Sheets			78
			Unaudited Consolidated Statements of Comprehensive Income			910
			Unaudited Consolidated Statements of Cash Flows			1011
			Unaudited Consolidated Statements of Changes in Equity			1112
			~~Westar Energy,~~Evergy Kansas Central, Inc.
			Unaudited Consolidated Balance Sheets			1214
			Unaudited Consolidated Statements of Income			1416
			Unaudited Consolidated Statements of Cash Flows			1517
			Unaudited Consolidated Statements of Changes in Equity			1618
			~~Kansas City Power & Light Company~~Evergy Metro, Inc.
			Unaudited Consolidated Balance Sheets			1719
			Unaudited Consolidated Statements of Comprehensive Income			1821
			Unaudited Consolidated Statements of Cash Flows			1922
			Unaudited Consolidated Statements of Changes in Equity			2023

			Combined Notes to Unaudited Consolidated Financial Statements for Evergy, Inc., ~~Westar Energy,~~Evergy Kansas Central, Inc. and ~~Kansas City Power & Light Company~~Evergy Metro, Inc.			2124
			Note 1:		Organization and Basis of Presentation	2124
			Note 2:		~~Merger of Great Plains Energy and Westar Energy~~Revenue	2829
			Note 3:		~~Revenue~~Receivables	3330
			Note 4:		~~Receivables~~	35
	~~Note 5:~~	Rate Matters and Regulation	3632
			Note 6:5:		~~Asset Retirement Obligations~~Goodwill	3734

			Note 7:6:		Pension Plans and ~~Other Employee~~Post-Retirement Benefits	3834
			Note 8:7:		~~Equity Compensation~~	40
	~~Note 9:~~	Short-Term Borrowings and Short-Term Bank Lines of Credit	4336
			Note ~~10:~~8:		Long-Term Debt	4437
			Note ~~11:~~9:		Derivative Instruments	38
			Note 10:		Fair Value Measurements	4542
			Note ~~12:~~11:		Commitments and Contingencies	5048
			Note ~~13:~~12:		~~Guarantees~~	53
	~~Note 14:~~	Related Party Transactions and Relationships	5451

			Note ~~15:~~13:		~~Shareholders' Equity~~Taxes	5553
			~~Note 16:~~Item 2.	~~Variable Interest Entities~~			56
	~~Note 17:~~	~~Taxes~~	57
~~Item 2.~~	Management's Discussion and Analysis of Financial Condition and Results of Operations		6055
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			7873
Item 4.			Controls and Procedures			8074

Part II - Other Information

Item 1.			Legal Proceedings			8175
Item 1A.			Risk Factors			8175
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			8275
Item 3.			Defaults Upon Senior Securities			8276
Item 4.			Mine Safety Disclosures			8276
Item 5.			Other Information			8276
Item 6.			Exhibits			8377

Signatures						8679

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CAUTIONARY STATEMENTS REGARDING CERTAIN FORWARD-LOOKING INFORMATION

Statements made in this ~~report~~document that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to ~~the merger of Great Plains Energy and Westar Energy that resulted in the creation of Evergy,~~Evergy's strategic plan, including, without limitation, those ~~that relate~~related to ~~the expected financial and operational benefits of the merger to the companies and their shareholders (including cost savings, operational efficiencies and the impact of the merger on~~ earnings per ~~share),~~share, dividend, operating and maintenance expense and capital investment goals; the outcome of legislative efforts and regulatory and legal proceedings; future energy demand; future power prices; plans with respect to existing and potential future generation resources; the availability and cost ~~estimates~~ of ~~capital projects, dividend growth, share repurchases, balance sheet~~generation resources and ~~credit ratings, rebates to customers, employee issues~~energy storage; target emissions reductions; and other matters relating to expected financial performance or affecting future operations. Forward-looking statements are often accompanied by forward-looking words such as "anticipates," "believes," "expects," "estimates," "forecasts," "should," "could," "may," "seeks," "intends," "proposed," "projects," "planned," "target," "outlook," "remain confident," "goal," "will" or other words of similar meaning. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking information.

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Evergy Companies are providing a number of ~~important~~risks, uncertainties and other factors that could cause actual results to differ ~~materially~~ from the ~~provided~~ forward-looking information. These ~~important~~risks, uncertainties and other factors ~~include: future~~include, but are not limited to: economic and weather conditions ~~in regional, national~~ and ~~international markets and their effects~~any impact on sales, prices and costs; ~~prices and availability of electricity in regional and national wholesale markets; market perception of the energy industry, Evergy, Westar Energy and KCP&L;~~ changes in business strategy ~~operations~~ or ~~development plans;~~operations; the ~~outcome~~impact of ~~contract negotiations for goods and services; effects of current or proposed~~federal, state and ~~federal~~local political, legislative, judicial and regulatory actions or developments, including ~~but not limited to,~~ deregulation, re-regulation, securitization and restructuring of the electric utility industry; decisions of regulators regarding, among other things, customer rates ~~that Westar Energy~~ and ~~KCP&L (or other regulated subsidiaries~~the prudency of ~~Evergy) can charge for electricity; adverse~~operational decisions such as capital expenditures and asset retirements; changes in applicable laws, regulations, rules, principles or practices, or the interpretations thereof, governing tax, accounting and environmental matters, including ~~but not limited to,~~ air and water ~~quality;~~quality and waste management and disposal; the impact of climate change, including increased frequency and severity of significant weather events and the extent to which counterparties are willing to do business with, finance the operations of or purchase energy from the Evergy Companies due to the fact that the Evergy Companies operate coal-fired generation; prices and availability of electricity and natural gas in wholesale markets; market perception of the energy industry and the Evergy Companies; the impact of future Coronavirus (COVID-19) variants on, among other things, sales, results of operations, financial condition, liquidity and cash flows, and also on operational issues, such as supply chain issues and the availability and ability of the Evergy Companies' employees and suppliers to perform the functions that are necessary to operate the Evergy Companies; changes in the energy trading markets in which the Evergy Companies participate, including retroactive repricing of transactions by regional transmission organizations (RTO) and independent system operators; financial market conditions and performance, current disruptions in the banking industry, including ~~but not limited to,~~ changes in interest rates and credit spreads and in availability and cost of capital and the effects on derivatives and hedges, nuclear decommissioning trust and pension plan assets and costs; impairments of long-lived assets or goodwill; credit ratings; inflation rates; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of physical and cybersecurity breaches, criminal activity, terrorist attacks, acts ~~including, but not limited~~of war and other disruptions to ~~cyber terrorism;~~the Evergy Companies' facilities or information technology infrastructure or the facilities and infrastructure of third-party service providers on which the Evergy Companies rely; impact of the Russian, Ukrainian conflict on the global energy market; ability to carry out marketing and sales plans; ~~weather conditions including, but not limited to, weather-related damage and their effects on sales, prices and costs;~~ cost, availability, quality and ~~deliverability~~timely provision of ~~fuel; the inherent uncertainties in estimating the effects of weather, economic conditions~~equipment, supplies, labor and ~~other factors on customer consumption and financial results;~~fuel; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; delays ~~in the anticipated in-service dates~~ and cost increases of generation, transmission, distribution or other projects; ~~Evergy's~~the Evergy Companies' ability to ~~successfully~~ manage ~~its~~their transmission and distribution development plans and transmission joint ventures; the inherent risks associated with the ownership and operation of a nuclear facility, including ~~but not limited to,~~ environmental, health, safety, regulatory and financial risks; workforce risks, including ~~but not limited~~those related to ~~increased~~the Evergy Companies' ability to attract and retain qualified personnel, maintain satisfactory relationships with their labor unions and manage costs of, or changes in, wages, retirement, health care and other benefits; disruption, costs and uncertainties caused by or related to the actions of individuals or entities, such as activist shareholders or special interest groups, that seek to influence Evergy's strategic plan, financial results or operations; the impact of changing expectations and demands of the Evergy Companies' customers, regulators, investors and stakeholders, including heightened emphasis on environmental, social and governance concerns; the possibility that strategic initiatives, including mergers, acquisitions and divestitures, and long-term financial plans, may not create the value that they are expected ~~value creation from the merger will not be realized,~~to achieve in a timely manner or ~~will not be realized within the expected time period;~~at all; difficulties ~~related to the integration of the two companies; disruption from the merger making it more difficult to maintain~~in maintaining relationships with customers, employees, regulators or suppliers; ~~the diversion of management time;~~ and other risks and uncertainties.

This list of factors is not all-inclusive because it is not possible to predict all factors. ~~Part II, Item 1A, Risk Factors included~~You should also carefully consider the information contained in ~~this report, together~~the Evergy Companies' other filings with the ~~risk factors included~~Securities and Exchange

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Commission (SEC). Additional risks and uncertainties are discussed from time to time in ~~the Westar Energy 2017 Form 10-K~~current, quarterly and the Great Plains Energy and KCP&L combined 2017 Form 10-K under Part I, Item 1A, should be carefully read for further understanding of potential risks for the Evergy Companies. Other sections of this report and other periodicannual reports filed by the Evergy Companies with the ~~Securities and Exchange Commission (SEC) should also be read for more information regarding risk factors.~~SEC. Each forward-looking statement speaks only as of the date of the particular statement. The Evergy Companies undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or ~~otherwise.~~otherwise, except as required by law.

AVAILABLE INFORMATION

The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at sec.gov. Additionally, information about the Evergy Companies, including their combined annual reports on Form 10-K, combined quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed with the SEC, is also available through the Evergy Companies' website, http://investors.evergy.com. Such reports are accessible at no charge and are made available as soon as reasonably practical after such material is filed with or furnished to the SEC.

Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations section of their website, http://investors.evergy.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on the Evergy Companies' website is not part of this document.

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GLOSSARY OF TERMS

The following is a glossary of frequently used abbreviations or acronyms that are found throughout this report.


Abbreviation or Acronym			Definition

ACE			Affordable Clean Energy
AEP			American Electric Power Company, Inc.
AFUDC			Allowance for funds used during construction
AOCI			Accumulated other comprehensive income
AROs			Asset retirement obligations


~~Abbreviation or Acronym~~			~~Definition~~
CAA			Clean Air Act
~~AEP~~CCN			~~American Electric Power Company, Inc.~~Certificate of Convenience and Necessity
~~AFUDC~~CCRs			~~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 Energy, Monarch Energy Holding, Inc. and King Energy, Inc.~~
~~AMT~~	~~Alternative Minimum Tax~~
~~ARO~~	~~Asset Retirement Obligation~~
~~ASC~~	~~Accounting Standards Codification~~
~~ASU~~	~~Accounting Standards Update~~
~~CCRs~~	Coal combustion residuals
~~Clean Air Act~~	~~Clean Air Act Amendments of 1990~~
~~CWA~~	~~Clean Water Act~~
CO₂			Carbon dioxide
COLI			Corporate-owned life insurance
~~DOE~~			~~Department of Energy~~
~~EIRR~~CSAPR			~~Environmental Improvement Revenue Refunding~~Cross-State Air Pollution
~~EPA~~

ELG			Effluent limitations guidelines
EPA			Environmental Protection Agency
EPS			Earnings per common share
~~ERISA~~
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, ~~Westar Energy,~~Evergy Kansas Central, and ~~KCP&L,~~Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group
~~Exchange Act~~		~~The Securities Exchange Act of 1934, as amended~~
~~FASB~~	~~Financial Accounting Standards Board~~
~~FERC~~	~~The Federal Energy Regulatory Commission~~
~~FMBs~~	~~First mortgage bonds~~
~~GAAP~~	~~Generally Accepted Accounting Principles~~
~~GHG~~	~~Greenhouse gas~~
~~GMO~~	~~KCP&L Greater Missouri Operations Company, a wholly-owned subsidiary of~~ Evergy
~~GPETHC~~	~~GPE Transmission Holding Company LLC, a wholly-owned subsidiary of Evergy~~
~~Great Plains Energy~~	~~Great Plains Energy Incorporated~~
~~KCC~~	~~State Corporation Commission of the State of Kansas~~
~~KCP&L~~	Kansas ~~City Power & Light Company, a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries~~
~~KCP&L Receivables Company~~	~~Kansas City Power & Light Receivables Company, a wholly-owned subsidiary of KCP&L~~
~~KDHE~~	~~Kansas Department of Health & Environment~~
~~KGE~~	~~Kansas Gas and Electric Company, a wholly-owned subsidiary of Westar Energy~~
~~King Energy~~	~~King Energy, Inc., a wholly-owned subsidiary of Evergy~~
~~kWh~~	~~Kilowatt hour~~

~~Table of Contents~~


Central
~~Abbreviation or Acronym~~	~~Definition~~
~~MEEIA~~	~~Missouri Energy Efficiency Investment Act~~
~~MMBtu~~	~~Millions of British thermal units~~
~~Monarch Energy~~	~~Monarch Energy Holding, Inc.~~
~~MPSC~~	~~Public Service Commission of the State of Missouri~~
MW	~~Megawatt~~
~~MWh~~	~~Megawatt hour~~
~~NAAQs~~	~~National Ambient Air Quality Standards~~
~~NAV~~	~~Net Asset Value~~
NO₂	~~Nitrogen dioxide~~
~~NRC~~	~~Nuclear Regulatory Commission~~
PM	~~Particulate matter~~
~~Prairie Wind~~	~~Prairie Wind Transmission, LLC, 50% owned by Westar Energy~~
~~RSU~~	~~Restricted share unit~~
~~RTO~~	~~Regional transmission organization~~
~~SEC~~	~~Securities and Exchange Commission~~
SO₂	~~Sulfur dioxide~~
~~SPP~~	~~Southwest Power Pool, Inc.~~
~~TFR~~	~~Transmission formula rate~~
~~Transource~~	~~Transource Energy, LLC and its subsidiaries, 13.5% owned by GPETHC~~
~~VIE~~	~~Variable interest entity~~
~~WCNOC~~	~~Wolf Creek Nuclear Operating Corporation~~
~~Westar Energy~~	~~Westar Energy,~~Evergy Kansas Central, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Kansas South		Evergy Kansas South, Inc., a wholly-owned subsidiary of Evergy Kansas Central
Evergy Metro		Evergy Metro, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries

Evergy Missouri West		Evergy Missouri West, Inc., a wholly-owned subsidiary of Evergy
Evergy Transmission Company		Evergy Transmission Company, LLC
Exchange Act		The Securities Exchange Act of 1934, as amended

February 2021 winter weather event		Significant winter weather event in February 2021 that resulted in extremely cold temperatures over a multi-day period across much of the central and southern United States
FERC		Federal Energy Regulatory Commission
FMBs		First Mortgage Bonds
GAAP		Generally Accepted Accounting Principles
GHG		Greenhouse gas
Great Plains Energy		Great Plains Energy Incorporated
JEC		Jeffrey Energy Center
KCC		State Corporation Commission of the State of Kansas
KDHE		Kansas Department of Health & Environment

kV		Kilovolt



MDNR		Missouri Department of Natural Resources

MPSC		Public Service Commission of the State of Missouri

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Abbreviation or Acronym		Definition
MW		Megawatt
MWh		Megawatt hour
NAAQS		National Ambient Air Quality Standards
NAV		Net asset value

OCI		Other comprehensive income
OPC		Office of the Public Counsel

Persimmon Creek		Persimmon Creek Wind Farm 1, LLC
Prairie Wind		Prairie Wind Transmission, LLC, 50% owned by Evergy Kansas Central
RSU		Restricted share unit
RTO		Regional transmission organization
SEC		Securities and Exchange Commission
SIP		State implementation plan
SPP		Southwest Power Pool, Inc.


TCR		Transmission congestion right
TDC		Transmission delivery charge
Term Loan Facility		Term Loan Credit Agreement
TFR		Transmission formula rate
Transource		Transource Energy, LLC and its subsidiaries, 13.5% owned by Evergy Transmission Company


Wolf Creek		Wolf Creek Generating Station
~~WOTUS~~	~~Waters of the United States~~

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


EVERGY, INC.
Consolidated Balance Sheets
(Unaudited)

	June 30			December 31
	2023			2022
ASSETS	(millions, except share amounts)
CURRENT ASSETS:
Cash and cash equivalents		$	31.4		$	25.2

Receivables, net of allowance for credit losses of $22.6 and $31.4, respectively		321.1			315.3
Accounts receivable pledged as collateral		347.0			359.0
Fuel inventory and supplies		729.4			672.9
Income taxes receivable		—			9.3
Regulatory assets		306.7			368.0
Prepaid expenses		58.3			47.8
Other assets		41.4			44.5
Total Current Assets		1,835.3			1,842.0
PROPERTY, PLANT AND EQUIPMENT, NET		22,838.8			22,136.5
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		137.1			140.7
OTHER ASSETS:
Regulatory assets		1,877.3			1,846.3
Nuclear decommissioning trust fund		717.2			653.3
Goodwill		2,336.6			2,336.6
Other		534.8			534.5
Total Other Assets		5,465.9			5,370.7
TOTAL ASSETS		$	30,277.1		$	29,489.9

The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.
Consolidated Balance Sheets
(Unaudited)

June 30 December 31
2018 2017
ASSETS (millions, except share amounts)
CURRENT ASSETS:
Cash and cash equivalents $ 1,280.1
$ 3.4

Receivables, net 488.7
290.7

Accounts receivable pledged as collateral 195.0
—

Fuel inventory and supplies 539.9
293.6

Regulatory assets 347.7
99.5

Prepaid expenses and other assets 85.9
39.8

Total Current Assets 2,937.3
727.0

PROPERTY, PLANT AND EQUIPMENT, NET 18,819.9
9,553.8

PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET 172.7
176.3

OTHER ASSETS:

Regulatory assets 1,537.9
685.4

Nuclear decommissioning trust fund 498.2
237.1

Goodwill 2,333.7
—

Other 359.6
244.8

Total Other Assets 4,729.4
1,167.3

TOTAL ASSETS $ 26,659.3
$ 11,624.4


EVERGY, INC.
Consolidated Balance Sheets
(Unaudited)

	June 30			December 31
	2023			2022
LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:
Current maturities of long-term debt		$	89.4		$	439.1

Notes payable and commercial paper		2,371.1			1,332.3
Collateralized note payable		347.0			359.0
Accounts payable		369.8			600.8

Accrued taxes		233.5			163.0
Accrued interest		100.7			124.3
Regulatory liabilities		185.6			155.4
Asset retirement obligations		40.5			40.4
Accrued compensation and benefits		55.0			81.1
Other		159.0			198.4
Total Current Liabilities		3,951.6			3,493.8
LONG-TERM LIABILITIES:
Long-term debt, net		10,097.1			9,905.7
Deferred income taxes		2,053.9			1,996.6
Unamortized investment tax credits		170.9			174.6
Regulatory liabilities		2,503.6			2,566.8
Pension and post-retirement liability		512.4			458.4
Asset retirement obligations		1,143.9			1,112.8
Other		293.0			287.9
Total Long-Term Liabilities		16,774.8			16,502.8
Commitments and Contingencies (Note 11)
EQUITY:
Evergy, Inc. Shareholders' Equity:
Common stock - 600,000,000 shares authorized, without par value 229,701,709 and 229,546,105 shares issued, stated value		7,229.0			7,219.7
Retained earnings		2,337.8			2,298.5
Accumulated other comprehensive loss		(31.9)			(34.5)
Total Evergy, Inc. Shareholders' Equity		9,534.9			9,483.7
Noncontrolling Interests		15.8			9.6
Total Equity		9,550.7			9,493.3
TOTAL LIABILITIES AND EQUITY		$	30,277.1		$	29,489.9

The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

Table of Contents

EVERGY, INC.
Consolidated Balance Sheets
(Unaudited)

June 30 December 31
2018 2017
LIABILITIES AND EQUITY (millions, except share amounts)
CURRENT LIABILITIES:
Current maturities of long-term debt $ 819.3
$ —

Current maturities of long-term debt of variable interest entities 30.3
28.5

Notes payable and commercial paper 1,079.3
275.7

Collateralized note payable 195.0
—

Accounts payable 327.6
204.2

Accrued dividends —
53.8

Accrued taxes 210.3
87.7

Accrued interest 82.0
72.7

Regulatory liabilities 89.5
11.6

Other 244.6
89.5

Total Current Liabilities 3,077.9
823.7

LONG-TERM LIABILITIES:

Long-term debt, net 6,641.1
3,687.6

Long-term debt of variable interest entities, net 51.1
81.4

Deferred income taxes 1,436.3
815.7

Unamortized investment tax credits 379.9
257.1

Regulatory liabilities 2,361.8
1,094.0

Pension and post-retirement liability 959.1
491.2

Asset retirement obligations 627.9
380.0

Other 228.8
133.3

Total Long-Term Liabilities 12,686.0
6,940.3

Commitments and Contingencies (Note 12)

EQUITY:
Evergy, Inc. Shareholders' Equity:
Common stock - 600,000,000 and 275,000,000 shares authorized, $0 and $5 par value per share
271,687,743 and 142,094,275 shares issued, respective to each date 9,718.1
2,734.8

Retained earnings 1,220.0
1,173.3

Total Evergy, Inc. Shareholders' Equity 10,938.1
3,908.1

Noncontrolling Interests (42.7 ) (47.7 )
Total Equity 10,895.4
3,860.4

TOTAL LIABILITIES AND EQUITY $ 26,659.3
$ 11,624.4

~~The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.~~

~~Table of Contents~~


EVERGY, INC.	EVERGY, INC.													EVERGY, INC.
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income														Consolidated Statements of Comprehensive Income
(Unaudited)	(Unaudited)													(Unaudited)

		Three Months Ended June 30						Year to Date June 30							Three Months Ended June 30				Year to Date June 30
		2018			2017			2018			2017				2023		2022		2023		2022
		(millions, except per share amounts)													(millions, except per share amounts)
OPERATING REVENUES		$	893.4		$	609.3		$	1,493.6		$	1,181.9		OPERATING REVENUES	$	1,354.2	$	1,446.5	$	2,651.0	$	2,670.4
OPERATING EXPENSES:														OPERATING EXPENSES:
Fuel and purchased power		229.7			111.8			365.2			225.6			Fuel and purchased power	344.8		414.3		699.0		723.3
SPP network transmission costs		68.4			61.8			136.0			122.4			SPP network transmission costs	75.4		81.5		156.6		160.2
Operating and maintenance		283.8			139.6			423.8			275.0			Operating and maintenance	227.6		282.8		443.9		535.0
Depreciation and amortization		128.0			94.0			217.7			182.7			Depreciation and amortization	269.4		232.1		532.8		461.1
Taxes other than income tax		56.6			41.9			100.5			84.6			Taxes other than income tax	100.4		100.3		202.8		202.2

Total Operating Expenses		766.5			449.1			1,243.2			890.3			Total Operating Expenses	1,017.6		1,111.0		2,035.1		2,081.8
INCOME FROM OPERATIONS		126.9			160.2			250.4			291.6			INCOME FROM OPERATIONS	336.6		335.5		615.9		588.6
OTHER INCOME (EXPENSE):														OTHER INCOME (EXPENSE):
Investment earnings		1.6			1.1			1.3			2.5
Investment earnings (loss)														Investment earnings (loss)	6.7		(0.9)		15.8		(10.5)
Other income		1.7			0.5			3.7			1.8			Other income	2.6		5.9		14.8		14.1
Other expense		(13.8		)	(7.7		)	(24.4		)	(18.1		)	Other expense	(21.0)		(22.9)		(42.3)		(47.8)
Total Other Income (Expense)		(10.5		)	(6.1		)	(19.4		)	(13.8		)
Total Other Expense, Net														Total Other Expense, Net	(11.7)		(17.9)		(11.7)		(44.2)
Interest expense		58.4			43.7			102.2			84.8			Interest expense	133.7		99.3		256.8		191.1
INCOME BEFORE INCOME TAXES		58.0			110.4			128.8			193.0			INCOME BEFORE INCOME TAXES	191.2		218.3		347.4		353.3
Income tax expense (benefit)		(45.0		)	35.9			(35.8		)	56.8
Income tax expense														Income tax expense	10.8		22.1		23.2		33.6
Equity in earnings of equity method investees, net of income taxes		1.4			1.5			2.7			3.3			Equity in earnings of equity method investees, net of income taxes	1.8		1.4		3.7		3.5
NET INCOME		104.4			76.0			167.3			139.5			NET INCOME	182.2		197.6		327.9		323.2
Less: Net income attributable to noncontrolling interests		2.6			3.9			5.0			7.8			Less: Net income attributable to noncontrolling interests	3.1		3.1		6.2		6.2
NET INCOME ATTRIBUTABLE TO EVERGY, INC.		$	101.8		$	72.1		$	162.3		$	131.7		NET INCOME ATTRIBUTABLE TO EVERGY, INC.	$	179.1	$	194.5	$	321.7	$	317.0
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY (see Note 1)
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC. (see Note 1)														BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC. (see Note 1)
Basic earnings per common share		$	0.56		$	0.50		$	1.00		$	0.92		Basic earnings per common share	$	0.78	$	0.85	$	1.40	$	1.38
Diluted earnings per common share		$	0.56		$	0.50		$	1.00		$	0.92		Diluted earnings per common share	$	0.78	$	0.84	$	1.40	$	1.38
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING
AVERAGE COMMON SHARES OUTSTANDING														AVERAGE COMMON SHARES OUTSTANDING
Basic		180.9			142.5			161.9			142.5			Basic	230.1		229.9		230.0		229.8
Diluted		181.0			142.6			162.0			142.6			Diluted	230.5		230.4		230.4		230.4
DIVIDENDS DECLARED PER COMMON SHARE		$	0.40		$	0.40		$	0.80		$	0.80
COMPREHENSIVE INCOME														COMPREHENSIVE INCOME
NET INCOME														NET INCOME	$	182.2	$	197.6	$	327.9	$	323.2
Derivative hedging activity														Derivative hedging activity

Reclassification to expenses, net of tax														Reclassification to expenses, net of tax	1.3		1.3		2.6		2.7
Derivative hedging activity, net of tax														Derivative hedging activity, net of tax	1.3		1.3		2.6		2.7
Defined benefit pension plans														Defined benefit pension plans

Amortization of net losses included in net periodic benefit costs, net of tax														Amortization of net losses included in net periodic benefit costs, net of tax	—		0.1		—		0.1
Change in unrecognized pension expense, net of tax														Change in unrecognized pension expense, net of tax	—		0.1		—		0.1
Total other comprehensive income														Total other comprehensive income	1.3		1.4		2.6		2.8
COMPREHENSIVE INCOME														COMPREHENSIVE INCOME	183.5		199.0		330.5		326.0
Less: Comprehensive income attributable to noncontrolling interest														Less: Comprehensive income attributable to noncontrolling interest	3.1		3.1		6.2		6.2
COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC.														COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC.	$	180.4	$	195.9	$	324.3	$	319.8

The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

Table of Contents


EVERGY, INC.	EVERGY, INC.						EVERGY, INC.
Consolidated Statements of Cash Flows	Consolidated Statements of Cash Flows						Consolidated Statements of Cash Flows
(Unaudited)	(Unaudited)						(Unaudited)

Year to Date June 30	2018			2017			Year to Date June 30	2023		2022
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)						CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	$	167.3		$	139.5		Net income	$	327.9	$	323.2
Adjustments to reconcile income to net cash from operating activities:							Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	217.7			182.7			Depreciation and amortization	532.8		461.1
Amortization of nuclear fuel	13.7			15.9			Amortization of nuclear fuel	30.6		31.8
Amortization of deferred refueling outage	8.3			8.1			Amortization of deferred refueling outage	9.1		12.5
Amortization of deferred regulatory gain from sale leaseback	(2.7		)	(2.7		)
Amortization of corporate-owned life insurance	9.2			8.9			Amortization of corporate-owned life insurance	12.5		11.7
Non-cash compensation	20.0			4.6			Non-cash compensation	11.5		11.0
Net deferred income taxes and credits	(45.0		)	53.9			Net deferred income taxes and credits	0.7		6.9
Allowance for equity funds used during construction	(1.7		)	(0.8		)	Allowance for equity funds used during construction	(4.7)		(12.8)
Payments for asset retirement obligations	(8.2		)	(1.4		)	Payments for asset retirement obligations	(4.8)		(3.9)
Equity in earnings of equity method investees, net of income taxes	(2.7		)	(3.3		)	Equity in earnings of equity method investees, net of income taxes	(3.7)		(3.5)
Income from corporate-owned life insurance							Income from corporate-owned life insurance	(9.0)		(0.9)

Other	(0.4		)	(1.5		)	Other	0.8		0.6
Changes in working capital items:							Changes in working capital items:
Accounts receivable	(24.7		)	14.2			Accounts receivable	5.6		(131.9)
Accounts receivable pledged as collateral	(15.0		)	—			Accounts receivable pledged as collateral	12.0		(28.0)
Fuel inventory and supplies	25.5			(2.3		)	Fuel inventory and supplies	(55.9)		(69.5)
Prepaid expenses and other current assets	(29.2		)	37.0			Prepaid expenses and other current assets	48.3		(27.8)
Accounts payable	(41.7		)	(20.0		)	Accounts payable	(196.9)		(75.9)
Accrued taxes	67.8			11.0			Accrued taxes	79.8		87.7
Other current liabilities	(1.6		)	(103.3		)	Other current liabilities	(77.9)		(61.6)
Changes in other assets	(17.3		)	15.6			Changes in other assets	13.5		35.1
Changes in other liabilities	57.9			7.6			Changes in other liabilities	(17.0)		23.1
Cash Flows from Operating Activities	397.2			363.7			Cash Flows from Operating Activities	715.2		588.9
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:							CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(435.2		)	(383.6		)	Additions to property, plant and equipment	(1,104.2)		(1,116.4)
Cash acquired from the merger with Great Plains Energy	1,154.2			—
Acquisition of Persimmon Creek, net of cash acquired							Acquisition of Persimmon Creek, net of cash acquired	(217.9)		—
Purchase of securities - trusts	(96.0		)	(12.1		)	Purchase of securities - trusts	(22.0)		(19.4)
Sale of securities - trusts	101.1			13.5			Sale of securities - trusts	15.3		19.4
Investment in corporate-owned life insurance	(15.9		)	(15.8		)	Investment in corporate-owned life insurance	(15.7)		(15.5)
Proceeds from investment in corporate-owned life insurance	4.7			1.7			Proceeds from investment in corporate-owned life insurance	42.4		2.9
Proceeds from settlement of interest rate swap	140.6			—

Other investing activities	(6.6		)	(3.2		)	Other investing activities	(5.3)		0.1
Cash Flows used in Investing Activities	846.9			(399.5		)	Cash Flows used in Investing Activities	(1,307.4)		(1,128.9)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:							CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short term debt, net	242.6			(37.6		)
Collateralized short-term debt, net	15.0			—
Short-term debt, net							Short-term debt, net	537.4		369.1
Proceeds from Term Loan Facility							Proceeds from Term Loan Facility	—		500.0

Collateralized short-term borrowings, net							Collateralized short-term borrowings, net	(12.0)		28.0

Proceeds from long-term debt	—			296.3			Proceeds from long-term debt	690.5		246.9

Retirements of long-term debt	—			(125.0		)	Retirements of long-term debt	(350.0)		(387.5)
Retirements of long-term debt of variable interest entity	(28.5		)	(26.8		)
Repayment of capital leases	(1.9		)	(1.7		)

Borrowings against cash surrender value of corporate-owned life insurance	53.9			52.3			Borrowings against cash surrender value of corporate-owned life insurance	51.0		51.1
Repayment of borrowings against cash surrender value of corporate-owned life insurance	(3.0		)	—			Repayment of borrowings against cash surrender value of corporate-owned life insurance	(32.6)		(1.2)
Issuance of common stock	—			0.6
Distributions to shareholders of noncontrolling interests	—			(5.8		)
Cash dividends paid	(228.3		)	(109.4		)	Cash dividends paid	(281.3)		(262.7)

Other financing activities	(17.2		)	(7.0		)	Other financing activities	(4.6)		(7.5)
Cash Flows (used in) from Financing Activities	32.6			35.9
Cash Flows from Financing Activities							Cash Flows from Financing Activities	598.4		536.2
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	1,276.7			0.1			NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	6.2		(3.8)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:							CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period, including restricted cash of $0.1 and $0.1, respectively	3.5			3.2
End of period, including restricted cash of $0.1 and $0.1, respectively	$	1,280.2		$	3.3
Beginning of period							Beginning of period	25.2		26.2
End of period							End of period	$	31.4	$	22.4

The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

Table of Contents


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, 2021	229,299,900	$	7,205.5	$	2,082.9	$	(44.0)	$	(2.7)	$	9,241.7
Net income	—	—		122.5		—		3.1		125.6

Issuance of stock compensation and reinvested dividends, net of tax withholding	176,658	(4.0)		—		—		—		(4.0)

Dividends declared on common stock ($0.5725 per share)	—	—		(131.3)		—		—		(131.3)
Dividend equivalents declared	—	—		(0.8)		—		—		(0.8)
Stock compensation expense	—	4.3		—		—		—		4.3
Unearned compensation

Compensation expense recognized	—	0.2		—		—		—		0.2



Derivative hedging activity, net of tax	—	—		—		1.4		—		1.4
Other	—	0.4		—		—		—		0.4
Balance as of March 31, 2022	229,476,558	$	7,206.4	$	2,073.3	$	(42.6)	$	0.4	$	9,237.5
Net income	—	—		194.5		—		3.1		197.6

Issuance of stock compensation and reinvested dividends, net of tax withholding	38,743	(0.3)		—		—		—		(0.3)
Dividends declared on common stock ($0.5725 per share)	—	—		(131.4)		—		—		(131.4)
Dividend equivalents declared	—	—		(0.4)		—		—		(0.4)
Stock compensation expense	—	6.3		—		—		—		6.3
Unearned compensation

Compensation expense recognized	—	0.2		—		—		—		0.2


Derivative hedging activity, net of tax	—	—		—		1.3		—		1.3
Change in unrecognized pension expense, net of tax	—	—		—		0.1		—		0.1
Other	—	(0.1)		—		—		—		(0.1)
Balance as of June 30, 2022	229,515,301	$	7,212.5	$	2,136.0	$	(41.2)	$	3.5	$	9,310.8

Table of Contents

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

Evergy, Inc. Shareholders
Common stock shares Common stock Retained earnings Non-controlling interests Total equity
(millions, except share amounts)
Balance as of December 31, 2016 141,791,153
$ 2,727.3
$ 1,078.6
$ 27.3
$ 3,833.2
Net income —
—
131.7
7.8
139.5
Issuance of stock 12,131
0.6
—
—
0.6
Issuance of stock for compensation and reinvested dividends 290,103
4.8
—
—
4.8
Tax withholding related to stock compensation —
(7.0 ) —
—
(7.0 )
Dividends declared on common stock ($0.80 per share) —
—
(115.1 ) —
(115.1 )
Stock compensation expense —
4.6
—
—
4.6
Distributions to shareholders of noncontrolling interests —
—
—
(5.7 ) (5.7 )
Balance as of June 30, 2017 142,093,387
$ 2,730.3
$ 1,095.2
$ 29.4
$ 3,854.9

Balance as of December 31, 2017 142,094,275
$ 2,734.8
$ 1,173.3
$ (47.7 ) $ 3,860.4
Net income —
—
162.3
5.0
167.3
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 for compensation and reinvested dividends 523,445
0.2
—
—
0.2
Tax withholding related to stock compensation —
(17.2 ) —
—
(17.2 )
Dividends declared on common stock ($0.80 per share) —
—
(115.5 ) —
(115.5 )
Stock compensation expense —
21.8
—
—
21.8
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


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, 2022	229,546,105	$	7,219.7	$	2,298.5	$	(34.5)	$	9.6	$	9,493.3
Net income	—	—		142.6		—		3.1		145.7

Issuance of stock compensation and reinvested dividends, net of tax withholding	130,594	(2.4)		—		—		—		(2.4)

Dividends declared on common stock ($0.6125 per share)	—	—		(140.7)		—		—		(140.7)
Dividend equivalents declared	—	—		(0.4)		—		—		(0.4)
Stock compensation expense	—	4.7		—		—		—		4.7
Unearned compensation

Compensation expense recognized	—	0.1		—		—		—		0.1
Derivative hedging activity, net of tax	—	—		—		1.3		—		1.3
Other	—	0.1		—		—		—		0.1
Balance as of March 31, 2023	229,676,699	$	7,222.2	$	2,300.0	$	(33.2)	$	12.7	$	9,501.7
Net income	—	—		179.1		—		3.1		182.2

Issuance of stock compensation and reinvested dividends, net of tax withholding	25,010	—		—		—		—		—
Dividends declared on common stock ($0.6125 per share)	—	—		(140.7)		—		—		(140.7)
Dividend equivalents declared	—	—		(0.6)		—		—		(0.6)
Stock compensation expense	—	6.6		—		—		—		6.6
Unearned compensation
Compensation expense recognized	—	0.1		—		—		—		0.1
Derivative hedging activity, net of tax	—	—		—		1.3		—		1.3

Other	—	0.1		—		—		—		0.1
Balance as of June 30, 2023	229,701,709	$	7,229.0	$	2,337.8	$	(31.9)	$	15.8	$	9,550.7

The accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

Table of Contents


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

	June 30			December 31				June 30			December 31
	2018			2017				2023			2022
ASSETS	(millions, except share amounts)						ASSETS	(millions, except share amounts)
CURRENT ASSETS:							CURRENT ASSETS:
Cash and cash equivalents		$	3.3		$	3.4	Cash and cash equivalents		$	12.2		$	8.7
Receivables, net		305.6			290.7
Receivables, net of allowance for credit losses of $11.1 and $16.9, respectively							Receivables, net of allowance for credit losses of $11.1 and $16.9, respectively		196.9			249.4
Related party receivables		3.2			—		Related party receivables		9.7			7.9
Accounts receivable pledged as collateral							Accounts receivable pledged as collateral		172.0			185.0
Fuel inventory and supplies		267.0			293.6		Fuel inventory and supplies		390.9			349.5
Income taxes receivable							Income taxes receivable		15.4			—
Regulatory assets		122.0			99.5		Regulatory assets		129.4			121.9
Prepaid expenses and other assets		45.0			39.8
Prepaid expenses							Prepaid expenses		27.4			18.7
Other assets							Other assets		22.0			28.8
Total Current Assets		746.1			727.0		Total Current Assets		975.9			969.9
PROPERTY, PLANT AND EQUIPMENT, NET		9,614.1			9,553.8		PROPERTY, PLANT AND EQUIPMENT, NET		11,582.7			11,080.8
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		172.7			176.3		PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		137.1			140.7
OTHER ASSETS:							OTHER ASSETS:
Regulatory assets		704.1			685.4		Regulatory assets		592.1			590.0
Nuclear decommissioning trust fund		237.1			237.1		Nuclear decommissioning trust fund		343.2			318.8
Other		219.2			244.8		Other		261.5			268.1
Total Other Assets		1,160.4			1,167.3		Total Other Assets		1,196.8			1,176.9
TOTAL ASSETS		$	11,693.3		$	11,624.4	TOTAL ASSETS		$	13,892.5		$	13,368.3

The disclosures regarding ~~Westar Energy~~Evergy Kansas Central included in the accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

Table of Contents


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

	June 30				December 31					June 30			December 31
	2018				2017					2023			2022
LIABILITIES AND EQUITY	(millions, except share amounts)								LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:									CURRENT LIABILITIES:
Current maturities of long-term debt		$	300.0			$	—		Current maturities of long-term debt		$	—		$	50.0
Current maturities of long-term debt of variable interest entities		30.3				28.5

Notes payable and commercial paper		488.2				275.7			Notes payable and commercial paper		813.8			772.1
Collateralized note payable									Collateralized note payable		172.0			185.0
Accounts payable		137.2				204.2			Accounts payable		184.0			247.3
Related party payables		37.8				—			Related party payables		29.3			28.9
Accrued dividends		—				53.8

Accrued taxes		114.2				87.7			Accrued taxes		115.7			125.5
Accrued interest		45.4				72.7			Accrued interest		51.6			72.6
Regulatory liabilities		34.5				11.6			Regulatory liabilities		95.2			72.1
Asset retirement obligations									Asset retirement obligations		21.6			21.3
Accrued compensation and benefits									Accrued compensation and benefits		28.2			39.4
Other		117.6				89.5			Other		112.1			135.0
Total Current Liabilities		1,305.2				823.7			Total Current Liabilities		1,623.5			1,749.2
LONG-TERM LIABILITIES:									LONG-TERM LIABILITIES:
Long-term debt, net		3,389.0				3,687.6			Long-term debt, net		4,281.7			3,886.9
Long-term debt of variable interest entities, net		51.1				81.4
Deferred income taxes		763.1				815.7			Deferred income taxes		847.1			844.5
Unamortized investment tax credits		255.7				257.1			Unamortized investment tax credits		55.4			57.3
Regulatory liabilities		1,173.9				1,094.0			Regulatory liabilities		1,379.7			1,368.9
Pension and post-retirement liability		477.5				491.2			Pension and post-retirement liability		268.5			244.7
Asset retirement obligations		262.7				380.0			Asset retirement obligations		564.7			543.8
Other		126.9				133.3			Other		170.2			165.6
Total Long-Term Liabilities		6,499.9				6,940.3			Total Long-Term Liabilities		7,567.3			7,111.7
Commitments and Contingencies (Note 12)
Commitments and Contingencies (Note 11)									Commitments and Contingencies (Note 11)
EQUITY:									EQUITY:
Westar Energy, Inc. Shareholder's Equity:
Common stock - 1,000 shares authorized, $0.01 par value per share and 1 share issued; 275,000,000 shares authorized, $5 par value per share, and 142,094,275 shares issued and outstanding, respective to each date		2,737.6				2,734.8
Evergy Kansas Central, Inc. Shareholder's Equity:									Evergy Kansas Central, Inc. Shareholder's Equity:
Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued									Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued		2,737.6			2,737.6
Retained earnings		1,193.3				1,173.3			Retained earnings		1,948.3			1,760.2
Total Westar Energy, Inc. Shareholder's Equity		3,930.9				3,908.1
Total Evergy Kansas Central, Inc. Shareholder's Equity									Total Evergy Kansas Central, Inc. Shareholder's Equity		4,685.9			4,497.8
Noncontrolling Interests		(42.7		)		(47.7		)	Noncontrolling Interests		15.8			9.6
Total Equity		3,888.2				3,860.4			Total Equity		4,701.7			4,507.4
TOTAL LIABILITIES AND EQUITY		$	11,693.3			$	11,624.4		TOTAL LIABILITIES AND EQUITY		$	13,892.5		$	13,368.3

The disclosures regarding ~~Westar Energy~~Evergy Kansas Central included in the accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

Table of Contents


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

		Three Months Ended June 30						Year to Date June 30							Three Months Ended June 30				Year to Date June 30
		2018			2017			2018			2017				2023		2022		2023		2022
		(millions)													(millions)
OPERATING REVENUES		$	650.9		$	609.3		$	1,251.1		$	1,181.9		OPERATING REVENUES	$	639.6	$	724.0	$	1,318.2	$	1,337.9
OPERATING EXPENSES:														OPERATING EXPENSES:
Fuel and purchased power		158.0			111.8			293.5			225.6			Fuel and purchased power	113.8		179.0		258.2		287.1
SPP network transmission costs		68.4			61.8			136.0			122.4			SPP network transmission costs	75.4		81.5		156.6		160.2
Operating and maintenance		209.7			139.6			349.7			275.0			Operating and maintenance	115.6		141.5		223.2		267.2
Depreciation and amortization		96.1			94.0			185.7			182.7			Depreciation and amortization	128.7		120.6		252.8		240.3
Taxes other than income tax		42.6			41.9			86.6			84.6			Taxes other than income tax	54.5		53.9		110.2		108.4
Total Operating Expenses		574.8			449.1			1,051.5			890.3			Total Operating Expenses	488.0		576.5		1,001.0		1,063.2
INCOME FROM OPERATIONS		76.1			160.2			199.6			291.6			INCOME FROM OPERATIONS	151.6		147.5		317.2		274.7
OTHER INCOME (EXPENSE):														OTHER INCOME (EXPENSE):
Investment earnings		—			1.1			(0.4		)	2.5
Investment earnings (loss)														Investment earnings (loss)	0.4		(2.4)		1.7		(3.9)
Other income		1.6			0.5			3.6			1.8			Other income	1.1		2.7		10.3		5.8
Other expense		(10.4		)	(7.7		)	(20.9		)	(18.1		)	Other expense	(8.7)		(9.1)		(18.6)		(19.3)
Total Other Income (Expense)		(8.8		)	(6.1		)	(17.7		)	(13.8		)
Total Other Expense, Net														Total Other Expense, Net	(7.2)		(8.8)		(6.6)		(17.4)
Interest expense		44.4			43.7			88.2			84.8			Interest expense	54.4		44.7		106.8		85.6
INCOME BEFORE INCOME TAXES		22.9			110.4			93.7			193.0			INCOME BEFORE INCOME TAXES	90.0		94.0		203.8		171.7
Income tax expense (benefit)		(53.6		)	35.9			(44.4		)	56.8
Income tax expense														Income tax expense	3.1		4.4		11.5		8.0
Equity in earnings of equity method investees, net of income taxes		1.1			1.5			2.4			3.3			Equity in earnings of equity method investees, net of income taxes	1.0		1.0		2.0		2.0
NET INCOME		77.6			76.0			140.5			139.5			NET INCOME	87.9		90.6		194.3		165.7
Less: Net income attributable to noncontrolling interests		2.6			3.9			5.0			7.8			Less: Net income attributable to noncontrolling interests	3.1		3.1		6.2		6.2
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.		$	75.0		$	72.1		$	135.5		$	131.7
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC.														NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC.	$	84.8	$	87.5	$	188.1	$	159.5

The disclosures regarding ~~Westar Energy~~Evergy Kansas Central included in the accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

Table of Contents


WESTAR ENERGY, INC.
EVERGY KANSAS CENTRAL, INC.							EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Cash Flows	Consolidated Statements of Cash Flows						Consolidated Statements of Cash Flows
(Unaudited)	(Unaudited)						(Unaudited)

Year to Date June 30	2018			2017			Year to Date June 30	2023		2022
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)						CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	$	140.5		$	139.5		Net income	$	194.3	$	165.7
Adjustments to reconcile income to net cash from operating activities:							Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	185.7			182.7			Depreciation and amortization	252.8		240.3
Amortization of nuclear fuel	11.2			15.9			Amortization of nuclear fuel	15.2		15.9
Amortization of deferred refueling outage	7.3			8.1			Amortization of deferred refueling outage	4.6		6.3
Amortization of deferred regulatory gain from sale leaseback	(2.7		)	(2.7		)
Amortization of corporate-owned life insurance	9.2			8.9			Amortization of corporate-owned life insurance	12.5		11.7
Non-cash compensation	20.0			4.6
Net deferred income taxes and credits	(57.9		)	53.9			Net deferred income taxes and credits	(15.0)		(27.9)
Allowance for equity funds used during construction	(1.7		)	(0.8		)	Allowance for equity funds used during construction	(1.2)		(5.0)
Payments for asset retirement obligations	(7.2		)	(1.4		)	Payments for asset retirement obligations	(3.9)		(1.8)
Equity in earnings of equity method investees, net of income taxes	(2.4		)	(3.3		)	Equity in earnings of equity method investees, net of income taxes	(2.0)		(2.0)
Income from corporate-owned life insurance							Income from corporate-owned life insurance	(9.0)		(0.9)
Other	(1.4		)	(1.5		)	Other	(2.7)		(2.7)
Changes in working capital items:							Changes in working capital items:
Accounts receivable	(9.3		)	14.2			Accounts receivable	55.2		(56.1)
Accounts receivable pledged as collateral							Accounts receivable pledged as collateral	13.0		(15.0)
Fuel inventory and supplies	26.9			(2.3		)	Fuel inventory and supplies	(40.8)		(50.2)
Prepaid expenses and other current assets	(23.2		)	37.0			Prepaid expenses and other current assets	15.9		(10.2)
Accounts payable	2.8			(20.0		)	Accounts payable	(42.8)		30.5
Accrued taxes	43.6			11.0			Accrued taxes	(25.2)		34.3
Other current liabilities	(36.9		)	(103.3		)	Other current liabilities	(52.3)		(44.1)
Changes in other assets	2.4			15.6			Changes in other assets	9.6		10.4
Changes in other liabilities	26.8			7.6			Changes in other liabilities	12.2		15.5
Cash Flows from Operating Activities	333.7			363.7			Cash Flows from Operating Activities	390.4		314.7
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:							CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(367.7		)	(383.6		)	Additions to property, plant and equipment	(579.9)		(456.3)
Acquisition of Persimmon Creek, net of cash acquired							Acquisition of Persimmon Creek, net of cash acquired	(217.9)		—
Purchase of securities - trusts	(92.5		)	(12.1		)	Purchase of securities - trusts	(6.5)		(5.7)
Sale of securities - trusts	98.4			13.5			Sale of securities - trusts	4.9		9.5
Investment in corporate-owned life insurance	(15.9		)	(15.8		)	Investment in corporate-owned life insurance	(15.7)		(15.5)
Proceeds from investment in corporate-owned life insurance	4.7			1.7			Proceeds from investment in corporate-owned life insurance	42.4		2.9
Other investing activities	(7.7		)	(3.2		)	Other investing activities	0.3		(2.2)
Cash Flows used in Investing Activities	(380.7		)	(399.5		)	Cash Flows used in Investing Activities	(772.4)		(467.3)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:							CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short term debt, net	212.5			(37.6		)
Short-term debt, net							Short-term debt, net	41.0		322.5
Collateralized short-term debt, net							Collateralized short-term debt, net	(13.0)		15.0
Proceeds from long-term debt	—			296.3			Proceeds from long-term debt	393.3		—
Retirements of long-term debt	—			(125.0		)	Retirements of long-term debt	(50.0)		—
Retirements of long-term debt of variable interest entities	(28.5		)	(26.8		)
Repayment of capital leases	(1.9		)	(1.7		)

Borrowings against cash surrender value of corporate-owned life insurance	53.9			52.3			Borrowings against cash surrender value of corporate-owned life insurance	48.0		49.2
Repayment of borrowings against cash surrender value of corporate-owned life insurance	(3.0		)	—			Repayment of borrowings against cash surrender value of corporate-owned life insurance	(32.6)		(1.2)
Issuance of common stock	—			0.6
Distributions to shareholders of noncontrolling interests	—			(5.8		)
Cash dividends paid	(169.0		)	(109.4		)	Cash dividends paid	—		(225.0)

Other financing activities	(17.2		)	(7.0		)	Other financing activities	(1.2)		(1.9)
Cash Flows (used in) from Financing Activities	46.8			35.9
Cash Flows from Financing Activities							Cash Flows from Financing Activities	385.5		158.6
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(0.2		)	0.1			NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	3.5		6.0
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:							CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period, including restricted cash of $0.1 and $0.1, respectively	3.5			3.2
End of period, including restricted cash of $0.1 and $0.1, respectively	$	3.3		$	3.3
Beginning of period							Beginning of period	8.7		3.1
End of period							End of period	$	12.2	$	9.1

The disclosures regarding ~~Westar Energy~~Evergy Kansas Central included in the accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

Table of Contents

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

Westar Energy, Inc. Shareholders
Common stock shares Common stock Retained earnings Non-controlling interests Total equity
(millions, except share amounts)
Balance as of December 31, 2016 141,791,153
$ 2,727.3
$ 1,078.6
$ 27.3
$ 3,833.2
Net income —
—
131.7
7.8
139.5
Issuance of stock 12,131
0.6
—
—
0.6
Issuance of stock for compensation and reinvested dividends 290,103
4.8
—
—
4.8
Tax withholding related to stock compensation —
(7.0 ) —
—
(7.0 )
Dividends declared on common stock ($0.80 per share) —
—
(115.1 ) —
(115.1 )
Stock compensation expense —
4.6
—
—
4.6
Distributions to shareholders of noncontrolling interests —
—
—
(5.7 ) (5.7 )
Balance as of June 30, 2017 142,093,387
$ 2,730.3
$ 1,095.2
$ 29.4
$ 3,854.9

Balance as of December 31, 2017 142,094,275
$ 2,734.8
$ 1,173.3
$ (47.7 ) $ 3,860.4
Net income —
—
135.5
5.0
140.5
Issuance of stock for compensation and reinvested dividends 516,990
—
—
—
—
Stock cancelled pursuant to Amended Merger Agreement (142,611,264 ) —
—
—
—
Tax withholding related to stock compensation —
(17.2 ) —
—
(17.2 )
Dividends declared on common stock ($0.80 per share) —
—
(115.5 ) —
(115.5 )
Stock compensation expense —
19.9
—
—
19.9
Other —
0.1
—
—
0.1
Balance as of June 30, 2018 1
$ 2,737.6
$ 1,193.3
$ (42.7 ) $ 3,888.2


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

	Evergy Kansas Central, Inc. Shareholder
	Common stock shares	Common stock		Retained earnings		Non-controlling interests		Total equity
	(millions, except share amounts)
Balance as of December 31, 2021	1	$	2,737.6	$	1,806.6	$	(2.7)	$	4,541.5
Net income	—	—		72.0		3.1		75.1
Dividends declared on common stock	—	—		(25.0)		—		(25.0)


Balance as of March 31, 2022	1	$	2,737.6	$	1,853.6	$	0.4	$	4,591.6
Net income	—	—		87.5		3.1		90.6
Dividends declared on common stock	—	—		(200.0)		—		(200.0)
Balance as of June 30, 2022	1	$	2,737.6	$	1,741.1	$	3.5	$	4,482.2




Balance as of December 31, 2022	1	$	2,737.6	$	1,760.2	$	9.6	$	4,507.4
Net income	—	—		103.3		3.1		106.4

Balance as of March 31, 2023	1	$	2,737.6	$	1,863.5	$	12.7	$	4,613.8
Net income	—	—		84.8		3.1		87.9

Balance as of June 30, 2023	1	$	2,737.6	$	1,948.3	$	15.8	$	4,701.7

The disclosures regarding ~~Westar Energy~~Evergy Kansas Central included in the accompanying Unaudited Notes to Consolidated Financial Statements are an integral part of these statements.

Table of Contents


EVERGY METRO, INC.
Consolidated Balance Sheets
(Unaudited)

	June 30			December 31
	2023			2022
ASSETS	(millions, except share amounts)
CURRENT ASSETS:
Cash and cash equivalents		$	4.5		$	3.1
Receivables, net of allowance for credit losses of $7.3 and $9.3, respectively		78.3			37.8
Related party receivables		114.7			170.4
Accounts receivable pledged as collateral		125.0			124.0
Fuel inventory and supplies		241.8			240.6
Income taxes receivable		—			0.2
Regulatory assets		52.2			42.3
Prepaid expenses		23.3			22.4
Other assets		13.8			11.0
Total Current Assets		653.6			651.8
PROPERTY, PLANT AND EQUIPMENT, NET		7,939.9			7,844.2
OTHER ASSETS:
Regulatory assets		350.2			331.5
Nuclear decommissioning trust fund		374.0			334.5
Other		82.8			87.2
Total Other Assets		807.0			753.2
TOTAL ASSETS		$	9,400.5		$	9,249.2

The disclosures regarding Evergy Metro included in the accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

Table of Contents

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

June 30 December 31
2018 2017
ASSETS (millions, except share amounts)
CURRENT ASSETS:
Cash and cash equivalents $ 4.0
$ 2.2

Receivables, net 124.5
106.3

Related party receivables 108.3
84.7

Accounts receivable pledged as collateral 130.0
130.0

Fuel inventory and supplies 197.1
197.0

Income taxes receivable —
5.4

Regulatory assets 159.1
153.6

Prepaid expenses and other assets 33.3
27.6

Total Current Assets 756.3
706.8

PROPERTY, PLANT AND EQUIPMENT, NET 6,670.3
6,565.6

OTHER ASSETS:

Regulatory assets 489.0
545.1

Nuclear decommissioning trust fund 261.1
258.4

Other 54.9
48.0

Total Other Assets 805.0
851.5

TOTAL ASSETS $ 8,231.6
$ 8,123.9


EVERGY METRO, INC.					EVERGY METRO, INC.
Consolidated Balance Sheets					Consolidated Balance Sheets
(Unaudited)					(Unaudited)

						June 30			December 31
						2023			2022
LIABILITIES AND EQUITY					LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:					CURRENT LIABILITIES:
Current maturities of long-term debt	$	400.0	$	350.0	Current maturities of long-term debt		$	79.5		$	379.5
Notes payable and commercial paper	322.4		167.5		Notes payable and commercial paper		311.5			111.0
Collateralized note payable	130.0		130.0		Collateralized note payable		125.0			124.0
Accounts payable	151.1		249.0		Accounts payable		146.3			252.3
Related party payables					Related party payables		0.3			0.9
Accrued taxes	98.8		29.0		Accrued taxes		99.3			40.5
Accrued interest	27.6		32.4		Accrued interest		26.0			27.9
Regulatory liabilities	30.5		8.3		Regulatory liabilities		60.3			55.3
Asset retirement obligations					Asset retirement obligations		16.6			17.1
Accrued compensation and benefits					Accrued compensation and benefits		26.8			41.7
Other	108.7		98.3		Other		33.6			49.2
Total Current Liabilities	1,269.1		1,064.5		Total Current Liabilities		925.2			1,099.4
LONG-TERM LIABILITIES:					LONG-TERM LIABILITIES:
Long-term debt, net	2,129.8		2,232.2		Long-term debt, net		2,845.4			2,547.1
Deferred income taxes	613.5		616.1		Deferred income taxes		761.5			720.9
Unamortized investment tax credits	121.2		121.8		Unamortized investment tax credits		113.1			114.7
Regulatory liabilities	834.4		770.9		Regulatory liabilities		837.9			872.8
Pension and post-retirement liability	521.2		512.2		Pension and post-retirement liability		226.3			196.6
Asset retirement obligations	223.5		231.4		Asset retirement obligations		436.6			427.1
Other	79.0		61.6		Other		86.7			84.3
Total Long-Term Liabilities	4,522.6		4,546.2		Total Long-Term Liabilities		5,307.5			4,963.5
Commitments and Contingencies (Note 12)
Commitments and Contingencies (Note 11)					Commitments and Contingencies (Note 11)
EQUITY:					EQUITY:
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value	1,563.1		1,563.1		Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value		1,563.1			1,563.1
Retained earnings	874.5		949.7		Retained earnings		1,600.8			1,619.2
Accumulated other comprehensive income	2.3		0.4		Accumulated other comprehensive income		3.9			4.0
Total Equity	2,439.9		2,513.2		Total Equity		3,167.8			3,186.3
TOTAL LIABILITIES AND EQUITY	$	8,231.6	$	8,123.9	TOTAL LIABILITIES AND EQUITY		$	9,400.5		$	9,249.2

The disclosures regarding ~~KCP&L~~Evergy Metro included in the accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

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KANSAS CITY POWER & LIGHT COMPANY
EVERGY METRO, INC.														EVERGY METRO, INC.
Consolidated Statements of Comprehensive Income	Consolidated Statements of Comprehensive Income													Consolidated Statements of Comprehensive Income
(Unaudited)	(Unaudited)													(Unaudited)

		Three Months Ended June 30						Year to Date June 30							Three Months Ended June 30				Year to Date June 30
		2018			2017			2018			2017				2023		2022		2023		2022
		(millions)													(millions)
OPERATING REVENUES		$	452.2		$	482.7		$	849.3		$	878.6		OPERATING REVENUES	$	485.3	$	500.1	$	891.7	$	922.6
OPERATING EXPENSES:														OPERATING EXPENSES:
Fuel and purchased power		132.5			130.2			250.0			223.4			Fuel and purchased power	142.0		158.9		257.4		291.4
Operating and maintenance		104.5			113.8			227.2			236.4			Operating and maintenance	66.8		86.7		132.1		164.8
Depreciation and amortization		70.2			68.3			137.1			133.6			Depreciation and amortization	105.4		84.5		207.8		167.4
Taxes other than income tax		30.3			44.2			59.3			88.8			Taxes other than income tax	32.2		33.7		65.7		67.1

Total Operating Expenses		337.5			356.5			673.6			682.2			Total Operating Expenses	346.4		363.8		663.0		690.7
INCOME FROM OPERATIONS		114.7			126.2			175.7			196.4			INCOME FROM OPERATIONS	138.9		136.3		228.7		231.9
OTHER INCOME (EXPENSE):														OTHER INCOME (EXPENSE):
Investment earnings		0.8			0.5			1.4			1.0			Investment earnings	1.0		0.1		1.7		0.2
Other income		(1.5		)	1.2			1.5			3.2			Other income	1.4		3.2		4.2		7.3
Other expense		(6.0		)	(14.7		)	(13.9		)	(28.8		)	Other expense	(9.8)		(10.1)		(18.8)		(20.6)
Total Other Income (Expense)		(6.7		)	(13.0		)	(11.0		)	(24.6		)
Total Other Expense, Net														Total Other Expense, Net	(7.4)		(6.8)		(12.9)		(13.1)
Interest expense		34.6			35.6			67.6			71.2			Interest expense	35.0		26.8		65.6		53.8
INCOME BEFORE INCOME TAXES		73.4			77.6			97.1			100.6			INCOME BEFORE INCOME TAXES	96.5		102.7		150.2		165.0
Income tax expense		48.8			28.0			52.3			36.8			Income tax expense	11.7		14.3		18.6		22.0
NET INCOME		$	24.6		$	49.6		$	44.8		$	63.8		NET INCOME	$	84.8	$	88.4	$	131.6	$	143.0
COMPREHENSIVE INCOME														COMPREHENSIVE INCOME
NET INCOME		$	24.6		$	49.6		$	44.8		$	63.8		NET INCOME	$	84.8	$	88.4	$	131.6	$	143.0
OTHER COMPREHENSIVE INCOME:														OTHER COMPREHENSIVE INCOME:
Derivative hedging activity														Derivative hedging activity
Reclassification to expenses, net of tax:		1.0			1.3			1.9			2.6
Reclassification to expenses, net of tax														Reclassification to expenses, net of tax	—		(0.1)		(0.1)		(0.1)
Derivative hedging activity, net of tax		1.0			1.3			1.9			2.6			Derivative hedging activity, net of tax	—		(0.1)		(0.1)		(0.1)
Total Other Comprehensive Income		1.0			1.3			1.9			2.6
Total other comprehensive loss														Total other comprehensive loss	—		(0.1)		(0.1)		(0.1)
COMPREHENSIVE INCOME		$	25.6		$	50.9		$	46.7		$	66.4		COMPREHENSIVE INCOME	$	84.8	$	88.3	$	131.5	$	142.9

The disclosures regarding ~~KCP&L~~Evergy Metro included in the accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

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KANSAS CITY POWER & LIGHT COMPANY
EVERGY METRO, INC.							EVERGY METRO, INC.
Consolidated Statements of Cash Flows	Consolidated Statements of Cash Flows						Consolidated Statements of Cash Flows
(Unaudited)	(Unaudited)						(Unaudited)

Year to Date June 30	2018			2017			Year to Date June 30	2023		2022
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)						CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	$	44.8		$	63.8		Net income	$	131.6	$	143.0
Adjustments to reconcile income to net cash from operating activities:							Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	137.1			133.6			Depreciation and amortization	207.8		167.4
Amortization of nuclear fuel	11.2			15.9			Amortization of nuclear fuel	15.4		16.0
Amortization of deferred refueling outage	7.1			9.1			Amortization of deferred refueling outage	4.6		6.3
Net deferred income taxes and credits	24.7			19.8			Net deferred income taxes and credits	15.2		18.4
Allowance for equity funds used during construction	(1.1		)	(1.7		)	Allowance for equity funds used during construction	(3.4)		(7.0)
Payments for asset retirement obligations	(6.3		)	(8.1		)	Payments for asset retirement obligations	(0.6)		(1.4)

Other	1.5			4.4			Other	(0.2)		(0.2)
Changes in working capital items:							Changes in working capital items:
Accounts receivable	(33.3		)	(1.3		)	Accounts receivable	(11.8)		(33.6)
Accounts receivable pledged as collateral							Accounts receivable pledged as collateral	(1.0)		2.0
Fuel inventory and supplies	(0.1		)	4.9			Fuel inventory and supplies	(1.2)		(12.0)
Prepaid expenses and other current assets	(11.6		)	(8.7		)	Prepaid expenses and other current assets	(17.1)		5.2
Accounts payable	(86.3		)	(90.6		)	Accounts payable	(89.5)		(66.4)
Accrued taxes	75.2			56.7			Accrued taxes	59.0		21.5
Other current liabilities	19.4			(2.9		)	Other current liabilities	(27.8)		(20.5)
Changes in other assets	10.9			40.6			Changes in other assets	8.1		25.5
Changes in other liabilities	50.7			8.0			Changes in other liabilities	(8.4)		2.6
Cash Flows from Operating Activities	243.9			243.5			Cash Flows from Operating Activities	280.7		266.8
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:							CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(225.2		)	(193.4		)	Additions to property, plant and equipment	(359.4)		(403.5)
Purchase of securities - trusts	(20.4		)	(13.6		)	Purchase of securities - trusts	(15.5)		(13.7)
Sale of securities - trusts	16.2			12.0			Sale of securities - trusts	10.4		10.0
Net money pool lending							Net money pool lending	31.0		141.0
Other investing activities	2.9			(0.4		)	Other investing activities	2.8		1.9
Cash Flows used in Investing Activities	(226.5		)	(195.4		)	Cash Flows used in Investing Activities	(330.7)		(264.3)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:							CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short term debt, net	154.9			38.9
Short-term debt, net							Short-term debt, net	200.5		—
Collateralized short-term debt, net							Collateralized short-term debt, net	1.0		(2.0)
Proceeds from long-term debt	296.6			296.5			Proceeds from long-term debt	297.2		—
Retirements of long-term debt	(350.0		)	(250.0		)	Retirements of long-term debt	(300.0)		—

Cash dividends paid	(120.0		)	(132.0		)	Cash dividends paid	(150.0)		—
Other financing activities	2.9			—			Other financing activities	2.7		1.5
Cash Flows (used in) from Financing Activities	(15.6		)	(46.6		)
NET CHANGE IN CASH AND CASH EQUIVALENTS	1.8			1.5
CASH AND CASH EQUIVALENTS:
Cash Flows from (used in) Financing Activities							Cash Flows from (used in) Financing Activities	51.4		(0.5)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH							NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	1.4		2.0
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:							CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	2.2			4.5			Beginning of period	3.1		2.1
End of period	$	4.0		$	6.0		End of period	$	4.5	$	4.1

The disclosures regarding ~~KCP&L~~Evergy Metro included in the accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

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KANSAS CITY POWER & LIGHT COMPANY
EVERGY METRO, INC													EVERGY METRO, INC
Consolidated Statements of Changes in Equity	Consolidated Statements of Changes in Equity												Consolidated Statements of Changes in Equity
(Unaudited)	(Unaudited)												(Unaudited)

	Common stock shares	Common stock		Retained earnings			AOCI - Net gains (losses) on cash flow hedges			Total equity				Common stock shares	Common Stock		Retained earnings		AOCI - Net gains (losses) on cash flow hedges		Total equity
	(millions, except share amounts)													(millions, except share amounts)
Balance as of December 31, 2016	1	$	1,563.1	$	982.6		$	(4.2	)	$	2,541.5
Balance as of December 31, 2021													Balance as of December 31, 2021	1	$	1,563.1	$	1,453.8	$	4.3	$	3,021.2
Net income	—	—		63.8			—			63.8			Net income	—	—		54.6		—		54.6
Cumulative effect of adoption of ASU 2016-09	—	—		(0.7		)	—			(0.7		)
Dividends declared on common stock	—	—		(132.0		)	—			(132.0		)

Balance as of March 31, 2022													Balance as of March 31, 2022	1	1,563.1		1,508.4		4.3		3,075.8
Net income													Net income	—	—		88.4		—		88.4

Derivative hedging activity, net of tax	—	—		—			2.6			2.6			Derivative hedging activity, net of tax	—	—		—		(0.1)		(0.1)
Balance as of June 30, 2017	1	$	1,563.1	$	913.7		$	(1.6	)	$	2,475.2
Balance as of June 30, 2022													Balance as of June 30, 2022	1	$	1,563.1	$	1,596.8	$	4.2	$	3,164.1

Balance as of December 31, 2017	1	$	1,563.1	$	949.7		$	0.4		$	2,513.2

Balance as of December 31, 2022													Balance as of December 31, 2022	1	$	1,563.1	$	1,619.2	$	4.0	$	3,186.3
Net income													Net income	—	—		46.8		—		46.8

Derivative hedging activity, net of tax													Derivative hedging activity, net of tax	—	—		—		(0.1)		(0.1)
Balance as of March 31, 2023													Balance as of March 31, 2023	1	$	1,563.1	$	1,666.0	$	3.9	$	3,233.0
Net income	—	—		44.8			—			44.8			Net income	—	—		84.8		—		84.8
Dividends declared on common stock	—	—		(120.0		)	—			(120.0		)	Dividends declared on common stock	—	—		(150.0)		—		(150.0)
Derivative hedging activity, net of tax	—	—		—			1.9			1.9
Balance as of June 30, 2018	1	$	1,563.1	$	874.5		$	2.3		$	2,439.9

Balance as of June 30, 2023													Balance as of June 30, 2023	1	$	1,563.1	$	1,600.8	$	3.9	$	3,167.8

The disclosures regarding ~~KCP&L~~Evergy Metro included in the accompanying Notes to Unaudited Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.

~~WESTAR ENERGY,~~EVERGY KANSAS CENTRAL, INC.

~~KANSAS CITY POWER & LIGHT COMPANY~~EVERGY METRO, INC.

Combined Notes to Unaudited Consolidated Financial Statements

The notes to unaudited consolidated financial statements that follow are a combined presentation for Evergy, Inc., ~~Westar Energy,~~Evergy Kansas Central, Inc. and ~~Kansas City Power & Light Company,~~Evergy Metro, Inc., all registrants under this filing. The terms "Evergy," ~~"Westar Energy,~~"Evergy Kansas Central," ~~"KCP&L"~~"Evergy Metro" and "Evergy Companies" are used throughout this report. "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated. ~~"Westar Energy"~~"Evergy Kansas Central" refers to ~~Westar Energy,~~Evergy Kansas Central, Inc. and its consolidated ~~subsidiaries. "KCP&L"~~subsidiaries, unless otherwise indicated. "Evergy Metro" refers to ~~Kansas City Power & Light Company~~Evergy Metro, Inc. and its consolidated ~~subsidiaries.~~subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, ~~Westar Energy,~~Evergy Kansas Central and ~~KCP&L,~~Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group. The Evergy Companies' interim financial statements reflect all adjustments (which include normal, recurring adjustments) that are necessary, in the opinion of management, for a fair presentation of the results for the interim periods presented.

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization

Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct ~~subsidiaries:~~subsidiaries listed below.

~~Westar Energy~~•Evergy Kansas Central, Inc. (Evergy Kansas Central) is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. ~~Westar Energy~~Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas ~~Gas and Electric Company (KGE)~~South, Inc. (Evergy Kansas South).

~~KCP&L~~•Evergy Metro, Inc. (Evergy Metro) is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas. ~~KCP&L has one active wholly-owned subsidiary, Kansas City Power & Light Receivables Company (KCP&L Receivables Company).~~

~~KCP&L Greater~~•Evergy Missouri ~~Operations Company (GMO)~~West, Inc. (Evergy Missouri West) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. ~~GMO also provides regulated steam service to certain customers in the St. Joseph, Missouri area. GMO has one active wholly-owned subsidiary, GMO Receivables Company.~~

~~GPE~~•Evergy Transmission ~~Holding~~ Company, LLC ~~(GPETHC)~~(Evergy Transmission Company) owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, ~~Inc~~Inc. (AEP). Transource is focused on the development of competitive electric transmission projects. ~~GPETHC~~Evergy Transmission Company accounts for its investment in Transource under the equity method.

~~Westar Energy~~Evergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between ~~Westar Energy~~Evergy Kansas Central and ~~Electric Transmission America, LLC, which itself is a joint venture between affiliates~~subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that ~~is now being used to provide~~provides transmission service in the Southwest Power Pool, Inc. (SPP). ~~Westar Energy~~EvergyKansas Central accounts for its investment in Prairie Wind under the equity method.

~~Westar Energy~~Evergy Kansas Central, Evergy Kansas South, Evergy Metro and ~~KGE~~Evergy Missouri West conduct business in their respective service territories using the name ~~Westar Energy. KCP&L and GMO conduct business in their respective service territories using the name KCP&L.~~Evergy. Collectively, the Evergy Companies have approximately ~~13,100~~15,600 MWs of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately ~~1.6~~1.7 million customers in the states of Kansas and Missouri.

~~Evergy was incorporated~~Basis of Presentation

These unaudited consolidated financial statements have been prepared in ~~2017 as Monarch Energy Holding, Inc. (Monarch Energy), a wholly-owned subsidiary of Great Plains Energy Incorporated (Great Plains Energy). Prior~~accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to ~~the closing~~Form 10-Q and Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the ~~merger transactions, Monarch Energy changed its name to~~information and notes required by GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements in the Evergy ~~and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended and Restated Agreement and Plan of Merger, dated as of July~~Companies' combined 2022 Form 10-K.

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~~9, 2017, by~~These unaudited consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments necessary to fairly present the unaudited consolidated financial statements for each of the Evergy Companies for these interim periods. In preparing financial statements that conform to GAAP, management must make estimates and ~~among Great Plains Energy, Westar Energy, Monarch Energy~~assumptions that affect the reported amounts of assets and ~~King Energy, Inc. (King Energy), a wholly-owned subsidiary~~liabilities, the reported amounts of ~~Monarch Energy (Amended Merger Agreement). On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, with Evergy surviving the merger~~revenues and ~~King Energy merged into Westar Energy, with Westar Energy surviving the merger. These merger transactions resulted in Evergy becoming the parent entity of Westar Energy~~expenses, and the ~~direct subsidiaries~~disclosure of ~~Great Plains Energy, including KCP&L~~contingent assets and ~~GMO. See Note 2 for additional information regarding~~liabilities at the ~~merger.~~date of the financial statements. Actual results could differ from those estimates.

Principles of Consolidation

Westar Energy was determined to be the accounting acquirer in the merger and thus, the predecessor of Evergy. Therefore, Evergy's consolidated financial statements reflect the results of operations of Westar Energy for the three months ended and year to date June 30, 2017 and the financial position of Westar Energy as of December 31, 2017. Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results of operations from the date of the closing of the merger and thereafter.

KCP&L and Westar Energy will continue to maintain their current reporting requirements as Securities and Exchange Commission (SEC) registrants. KCP&L has elected not to apply "push-down accounting" related to the merger, whereby the adjustments of assets and liabilities to fair value and the resulting goodwill would be recorded on the financial statements of the acquired subsidiary. These adjustments for KCP&L, as well as those related to the acquired assets and liabilities of Great Plains Energy and its other direct subsidiaries, are reflected at consolidated Evergy.

Each of Evergy's, ~~Westar Energy's~~Evergy Kansas Central's and ~~KCP&L's~~Evergy Metro's unaudited consolidated financial statements includes the accounts of their subsidiaries and variable interest entities (VIEs) of which they are the primary beneficiary. Undivided interests in jointly-owned generation facilities are included on a proportionate basis. Intercompany transactions have been eliminated. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).

In preparing financial statements that conform to generally accepted accounting principles (GAAP), management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

These unaudited consolidated financial statements have been prepared in accordance with GAAP for the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. Because the unaudited consolidated financial statements and notes do not include all of the information and notes required by GAAP for annual financial statements, the unaudited consolidated financial statements and other information included in this quarterly report should be read in conjunction with the Westar Energy First Quarter 2018 Quarterly Report on Form 10-Q, the Great Plains Energy and KCP&L combined First Quarter 2018 Quarterly Report on Form 10-Q, the Westar Energy 2017 Form 10-K and the Great Plains Energy and KCP&L combined 2017 Form 10-K.

Certain changes in classification and corresponding reclassification of prior period data were made in Evergy's, Westar Energy's and KCP&L's unaudited consolidated balance sheets, statements of income and comprehensive income and unaudited statements of cash flows for comparative purposes. Evergy reflects the classifications of Westar Energy as the accounting acquirer in the merger. These reclassifications did not affect Evergy's, Westar Energy's or KCP&L's net income or Evergy's, Westar Energy's or KCP&L's cash flows from operations, investing or financing.

Most significantly for Westar Energy's consolidated balance sheets as of December 31, 2017 was the reclassification of $50.2 million from accrued employee benefits (currently reported as pension and post-retirement liability) to other long-term liabilities. Most significantly for KCP&L's consolidated balance sheets, current regulatory assets

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~~and liabilities have been presented separately from the non-current portions in each respective consolidated balance sheet where recovery or refund is expected within the next 12 months.~~

~~The table below summarizes KCP&L's reclassifications related to operating and investing activities for its consolidated statement of cash flows for year to date June 30, 2017.~~

Year to Date
June 30, 2017
As Filed Updated
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: (in millions)
Adjustments to reconcile income to net cash from operating activities:
Amortization of other $ 15.7
$ —
Amortization of deferred refueling outage —
9.1
Deferred income taxes, net 20.3
—
Investment tax credit amortization (0.5 ) —
Net deferred income taxes and credits —
19.8
Payments for asset retirement obligations —
(8.1 )
Other^(a)
(13.0 ) 4.4
Changes in working capital items:
Fuel inventory and supplies —
4.9
Fuel inventories^(a)
9.4
—
Materials and supplies^(a)
(4.5 ) —
Prepaid expenses and other current assets —
(8.7 )
Accrued interest^(a)
(1.6 ) —
Other current liabilities —
(2.9 )
Changes in other assets —
40.6
Changes in other liabilities —
8.0
Deferred refueling outage costs^(a)
8.1
—
Pension and post-retirement benefit obligations^(a)
36.8
—
Fuel recovery mechanisms^(a)
(3.6 ) —
Total reclassifications $ 67.1
$ 67.1
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment $ —
$ (193.4 )
Utility capital expenditures (181.4 ) —
Allowance for borrowed funds used during construction (2.4 ) —
Other investing activities (10.0 ) (0.4 )
Total reclassifications $ (193.8 ) $ (193.8 )

^(a)~~Previously reported within Note 3 to the consolidated financial statements of the Great Plains Energy and KCP&L combined Second Quarter 2017 Quarterly Report on Form 10-Q.~~

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Fuel Inventory and Supplies

The Evergy Companies record fuel inventory and supplies at average cost. The following table separately states the balances for fuel inventory and ~~supplies are stated separately in the table below.~~supplies.


	June 30 2023		December 31 2022
Evergy	(millions)
Fuel inventory	$	231.5	$	180.7
Supplies	497.9		492.2
Fuel inventory and supplies	$	729.4	$	672.9
Evergy Kansas Central
Fuel inventory	$	129.9	$	97.2
Supplies	261.0		252.3
Fuel inventory and supplies	$	390.9	$	349.5
Evergy Metro
Fuel inventory	$	68.6	$	59.0
Supplies	173.2		181.6
Fuel inventory and supplies	$	241.8	$	240.6

June 30 December 31
2018 2017
Evergy (millions)
Fuel inventory $ 182.9
$ 94.1

Supplies 357.0
199.5

Fuel inventory and supplies $ 539.9
$ 293.6

Westar Energy
Fuel inventory $ 82.5
$ 94.1

Supplies 184.5
199.5

Fuel inventory and supplies $ 267.0
$ 293.6

KCP&L^(a)

Fuel inventory $ 68.8
$ 71.0

Supplies 128.3
126.0

Fuel inventory and supplies $ 197.1
$ 197.0

^(a) ~~KCP&L amounts are not included in consolidated Evergy as~~Table of ~~December 31, 2017.~~Contents

Property, Plant and Equipment

The following tables summarize the property, plant and equipment of Evergy, ~~Westar Energy~~Evergy Kansas Central and ~~KCP&L.~~Evergy Metro.


June 30, 2023	Evergy			Evergy Kansas Central			Evergy Metro
		(millions)
Electric plant in service		$	33,407.0		$	16,121.0		$	12,757.1
Electric plant acquisition adjustment		724.8			724.8			—
Accumulated depreciation		(12,639.0)			(6,054.1)			(5,233.1)
Plant in service, net		21,492.8			10,791.7			7,524.0
Construction work in progress		1,194.1			715.2			339.8
Nuclear fuel, net		151.1			75.0			76.1
Plant to be retired, net(a)		0.8			0.8			—
Property, plant and equipment, net		$	22,838.8		$	11,582.7		$	7,939.9

December 31, 2022	Evergy			Evergy Kansas Central			Evergy Metro
		(millions)
Electric plant in service		$	32,129.3		$	15,376.9		$	12,343.3
Electric plant acquisition adjustment		724.3			724.3			—
Accumulated depreciation		(12,304.9)			(5,922.9)			(5,065.3)
Plant in service, net		20,548.7			10,178.3			7,278.0
Construction work in progress		1,421.2			819.5			482.6
Nuclear fuel, net		165.8			82.2			83.6
Plant to be retired, net(a)		0.8			0.8			—
Property, plant and equipment, net		$	22,136.5		$	11,080.8		$	7,844.2

June 30, 2018 Evergy Westar Energy
KCP&L^(a)
(millions)
Electric plant in service $ 27,158.2
$ 13,181.2
$ 10,541.0
Electric plant acquisition adjustment 740.6
740.6
—
Accumulated depreciation (10,055.2 ) (4,793.7 ) (4,124.6 )
Plant in service 17,843.6
9,128.1
6,416.4
Construction work in progress 705.3
417.9
191.7
Nuclear fuel, net 123.5
61.3
62.2
Plant to be retired, net^(b)
147.5
6.8
—
Property, plant and equipment, net $ 18,819.9
$ 9,614.1
$ 6,670.3

December 31, 2017 Evergy Westar Energy
KCP&L^(a)
(millions)
Electric plant in service $ 12,954.3
$ 12,954.3
$ 10,213.2
Electric plant acquisition adjustment 739.0
739.0
—
Accumulated depreciation (4,651.7 ) (4,651.7 ) (4,070.3 )
Plant in service 9,041.6
9,041.6
6,142.9
Construction work in progress 434.9
434.9
350.3
Nuclear fuel, net 71.4
71.4
72.4
Plant to be retired, net^(b)
5.9
5.9
—
Property, plant and equipment, net $ 9,553.8
$ 9,553.8
$ 6,565.6

^(a) ~~KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.~~

^(b) As of June 30, ~~2018,~~2023 and December 31, 2022, represents the planned retirement of ~~GMO's Sibley No. 3 Unit and Westar Energy~~Evergy Kansas Central analog meters prior to the end of their remaining useful lives. As

Other Income (Expense), Net

For the three months ended and year to date June 30, 2022, Evergy's investment earnings (loss) included a pre-tax loss of ~~December 31, 2017, represents~~$2.1 million and $16.3 million, respectively, related to Evergy's equity investment in an early-stage energy solutions company.

The table below shows the ~~planned retirement~~detail of ~~Westar Energy analog meters prior to~~other expense for each of the ~~end of their remaining useful lives.~~Evergy Companies.


	Three Months Ended June 30				Year to Date June 30
	2023		2022		2023		2022
Evergy	(millions)
Non-service cost component of net benefit cost	$	(16.0)	$	(17.9)	$	(30.8)	$	(36.3)
Other	(5.0)		(5.0)		(11.5)		(11.5)
Other expense	$	(21.0)	$	(22.9)	$	(42.3)	$	(47.8)
Evergy Kansas Central
Non-service cost component of net benefit cost	$	(4.2)	$	(4.8)	$	(8.2)	$	(9.4)
Other	(4.5)		(4.3)		(10.4)		(9.9)
Other expense	$	(8.7)	$	(9.1)	$	(18.6)	$	(19.3)
Evergy Metro
Non-service cost component of net benefit cost	$	(9.2)	$	(9.6)	$	(17.9)	$	(19.6)
Other	(0.6)		(0.5)		(0.9)		(1.0)
Other expense	$	(9.8)	$	(10.1)	$	(18.8)	$	(20.6)

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Earnings Per Share

Evergy has participating securities in the form of unvested restricted share units (RSUs) with nonforfeitable rights to dividend equivalents that receive dividends on an equal basis with dividends declared on common stock. As a result, Evergy applies the two-class method of computingTo compute basic ~~and diluted~~ earnings per share (EPS).

~~To compute basic EPS,~~, Evergy divides ~~the earnings allocated~~net income attributable to ~~common stock~~Evergy, Inc. by the weighted average number of common shares outstanding. Diluted EPS includes the effect of issuable common shares resulting from ~~RSUs with forfeitable rights to dividend equivalents, performance shares~~restricted share units (RSUs), restricted stock and ~~restricted stock.~~a warrant. Evergy computes the dilutive effects of potential issuances of common shares using the treasury stock ~~method.~~method or the contingently issuable share method, as applicable.

The following table reconciles Evergy's basic and diluted EPS.


	Three Months Ended June 30				Year to Date June 30
	2023		2022		2023		2022
Income	(millions, except per share amounts)
Net income	$	182.2	$	197.6	$	327.9	$	323.2
Less: net income attributable to noncontrolling interests	3.1		3.1		6.2		6.2
Net income attributable to Evergy, Inc.	$	179.1	$	194.5	$	321.7	$	317.0
Common Shares Outstanding
Weighted average number of common shares outstanding - basic	230.1		229.9		230.0		229.8
Add: effect of dilutive securities	0.4		0.5		0.4		0.6
Diluted average number of common shares outstanding	230.5		230.4		230.4		230.4
Basic EPS	$	0.78	$	0.85	$	1.40	$	1.38

Diluted EPS	$	0.78	$	0.84	$	1.40	$	1.38

Three Months Ended
June 30 Year to Date
June 30
2018 2017 2018 2017
Income (millions, except per share amounts)
Net income $ 104.4
$ 76.0
$ 167.3
$ 139.5
Less: net income attributable to noncontrolling interests 2.6
3.9
5.0
7.8
Net income attributable to Evergy, Inc. 101.8
72.1
162.3
131.7
Less: net income allocated to RSUs 0.1
0.2
0.2
0.2
Net income allocated to common stock $ 101.7
$ 71.9
$ 162.1
$ 131.5
Common Shares Outstanding

Weighted average equivalent common shares outstanding - basic 180.9
142.5
161.9
142.5
Add: effect of dilutive securities 0.1
0.1
0.1
0.1
Weighted average equivalent common shares outstanding - diluted 181.0
142.6
162.0
142.6
Basic and Diluted EPS $ 0.56
$ 0.50
$ 1.00
$ 0.92

~~There were no anti-dilutive~~Anti-dilutive securities excluded from the computation of diluted EPS for the three months ended ~~June 30, 2018 and for the three months ended~~ and year to date June 30, ~~2017. Anti-dilutive~~2023 and 2022, were 3,950,000 common shares ~~excluded from the computation of diluted EPS for year~~issuable pursuant to ~~date June 30, 2018 were 172,431 performance shares.~~a warrant.

Dividends Declared

In August ~~2018,~~2023, Evergy's Board of Directors (Evergy Board) declared a quarterly dividend of ~~$0.46~~$0.6125 per share on Evergy's common stock. The common dividend is payable on September 20, ~~2018,~~2023, to shareholders of record as of August ~~29, 2018.~~21, 2023.

In August ~~2018, Westar Energy's Board of Directors and KCP&L's~~2023, Evergy Metro's Board of Directors declared a cash ~~dividends payable~~dividend to Evergy of ~~$66.0~~up to $175.0 million, ~~and $60.0 million, respectively,~~ payable on September 19, ~~2018.~~

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2023 or such other date as determined necessary, proper, or advisable.

Supplemental Cash Flow Information


Evergy
Year to Date June 30	2023		2022
Cash paid for (received from):	(millions)
Interest, net of amount capitalized	$	238.6	$	178.9

Income taxes, net of refunds	6.8		0.8
Right-of-use assets obtained in exchange for new operating lease liabilities	9.0		6.2
Right-of-use assets obtained in exchange for new finance lease liabilities	2.9		2.4
Non-cash investing transactions:
Property, plant and equipment additions	120.1		127.0

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Year to Date June 30 2018 2017
Evergy (millions)
Cash paid for (received from):
Interest, net of amounts capitalized $ 93.8
$ 76.0
Interest of VIEs 1.3
1.7
Income taxes, net of refunds —
(12.7 )
Non-cash investing transactions:
Property, plant and equipment additions (reductions) (37.1 ) 89.9
Non-cash financing transactions:
Issuance of stock for compensation and reinvested dividends 0.2
4.8
Assets acquired through capital leases 0.1
3.1
Westar Energy
Cash paid for (received from):
Interest, net of amounts capitalized $ 77.5
$ 76.0
Interest of VIEs 1.3
1.7
Income taxes, net of refunds —
(12.7 )
Non-cash investing transactions:
Property, plant and equipment additions (reductions) (37.2 ) 89.9
Non-cash financing transactions:
Issuance of stock for compensation and reinvested dividends —
4.8
Assets acquired through capital leases 0.1
3.1
KCP&L^(a)

Cash paid for (received from):
Interest, net of amounts capitalized $ 68.3
$ 66.6
Income taxes, net of refunds (7.4 ) (10.1 )
Non-cash investing transactions:
Property, plant and equipment additions 22.2
26.5


Evergy Kansas Central
Year to Date June 30	2023		2022
Cash paid for (received from):	(millions)
Interest, net of amount capitalized	$	95.1	$	80.0

Income taxes, net of refunds	52.2		5.2
Right-of-use assets obtained in exchange for new operating lease liabilities	4.6		6.0
Right-of-use assets obtained in exchange for new finance lease liabilities	2.9		2.4
Non-cash investing transactions:
Property, plant and equipment additions	58.6		49.4

^(a)~~KCP&L amounts are included~~


Evergy Metro
Year to Date June 30	2023		2022
Cash paid for (received from):	(millions)
Interest, net of amount capitalized	$	64.4	$	52.3
Income taxes, net of refunds	(18.5)		15.0
Right-of-use assets obtained in exchange for new operating lease liabilities	4.2		0.2

Non-cash investing transactions:
Property, plant and equipment additions	41.5		45.0

Renewable Generation Investment

In August 2022, Evergy Missouri West entered into an agreement with a renewable energy development company to purchase Persimmon Creek Wind Farm 1, LLC (Persimmon Creek), an operational wind farm located in ~~consolidated~~the state of Oklahoma with a generating capacity of approximately 199 MW, for approximately $250 million. Pursuant to the agreement, Evergy ~~from~~Missouri West was permitted to assign its right to purchase Persimmon Creek to another entity, including to other Evergy affiliated companies.

Evergy Missouri West's purchase was subject to regulatory approvals and closing conditions, including the ~~date~~granting of a Certificate of Convenience and Necessity (CCN) by the Public Service Commission of the ~~closing~~State of Missouri (MPSC). In April 2023, the ~~merger, June 4, 2018 through June 30, 2018.~~

~~See Note 2 for~~MPSC issued a final order granting the ~~non-cash information~~CCN pursuant to certain conditions related to the ~~merger transaction,~~sharing of operational costs between ratepayers and shareholders. In May 2023, Evergy Missouri West assigned its right to purchase Persimmon Creek to Evergy Kansas Central and Evergy Kansas Central closed on the purchase of Persimmon Creek for $220.9 million, including costs incidental to the ~~fair value of Great Plains Energy's assets acquired and liabilities assumed and the issuance of Evergy common stock.~~

~~New Accounting Standards~~

~~Compensation - Retirement Benefits~~

~~In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-07,~~ ~~Compensation-Retirement Benefits~~, which requires an employer to disaggregate the service cost component from the other components of net benefit cost. The service cost component is to be reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The non-service cost components are to be reported separately from service costs and outside of a subtotal of income from operations. The amendments in this update allow only the service cost component to be eligible for capitalization as part of utility plant. The non-service cost components that are no longer eligible for capitalization as part of utility plant will be recorded as a regulatory asset. The new guidance is to be applied retrospectively for the presentation of service cost and non-service cost components in the income statement and prospectively for the capitalizationpurchase of the ~~service cost component and is effective for interim and annual periods beginning after December 15, 2017. The~~plant. Evergy ~~Companies adopted ASU No. 2017-07 on January 1, 2018, and accordingly have retrospectively adjusted prior periods. The Evergy Companies utilized~~Kansas Central included the ~~practical expedient that allows for the use~~purchase of ~~amounts disclosed~~Persimmon Creek in ~~Note 7 for applying the retrospective presentation~~its rate case application to ~~the 2017 consolidated statement of income.~~

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The following table reflects the retrospective adjustments in the line items of the Evergy Companies' consolidated statements of income and comprehensive income associated with the adoption of ASU No. 2017-07.

Three Months Ended
June 30, 2017

Year to Date
June 30, 2017

As Previously Reported^(b)

Effect of
Change
As Reported
As Previously Reported^(b)

Effect of
Change
As Reported
Evergy (millions)
Operating and maintenance expense $ 144.7
$ (5.1 ) $ 139.6
$ 285.1
$ (10.1 ) $ 275.0
Total operating expenses 454.2
(5.1 ) 449.1
900.4
(10.1 ) 890.3
Income from operations 155.1
5.1
160.2
281.5
10.1
291.6
Other expense (2.6 ) (5.1 ) (7.7 ) (8.0 ) (10.1 ) (18.1 )
Total other income (expense) (1.0 ) (5.1 ) (6.1 ) (3.7 ) (10.1 ) (13.8 )
Westar Energy
Operating and maintenance expense $ 144.7
$ (5.1 ) $ 139.6
$ 285.1
$ (10.1 ) $ 275.0
Total operating expenses 454.2
(5.1 ) 449.1
900.4
(10.1 ) 890.3
Income from operations 155.1
5.1
160.2
281.5
10.1
291.6
Other expense (2.6 ) (5.1 ) (7.7 ) (8.0 ) (10.1 ) (18.1 )
Total other income (expense) (1.0 ) (5.1 ) (6.1 ) (3.7 ) (10.1 ) (13.8 )
KCP&L^(a)

Operating and maintenance expense $ 126.2
$ (12.4 ) $ 113.8
$ 260.8
$ (24.4 ) $ 236.4
Total operating expenses 368.9
(12.4 ) 356.5
706.6
(24.4 ) 682.2
Income from operations 113.8
12.4
126.2
172.0
24.4
196.4
Other expense (2.3 ) (12.4 ) (14.7 ) (4.4 ) (24.4 ) (28.8 )
Total other income (expense) (0.6 ) (12.4 ) (13.0 ) (0.2 ) (24.4 ) (24.6 )

^(a)~~KCP&L amounts are not included in consolidated Evergy for the three months ended and year to date June 30, 2017.~~

^(b)Certain Evergy, Westar Energy, and KCP&L as previously reported amounts have been adjusted to reflect reclassification adjustments made for comparative purposes as discussed further in Principles of Consolidation above and that have no impact on net income.

~~Statement of Cash Flows~~

~~In August 2016, the FASB issued ASU No. 2016-15,~~ ~~Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments,~~ which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Among other clarifications, the guidance requires that cash proceeds received from the settlement of corporate-owned life insurance (COLI) policies be classified as cash inflows from investing activities and that cash payments for premiums on COLI policies may be classified as cash outflows for investing activities, operating activities or a combination of both. Retrospective application is required. The Evergy Companies adopted the guidance effective January 1, 2018, which resulted in retrospective reclassification of cash proceeds of $1.5 million from the settlement of COLI policies from cash inflows from operating activities to cash inflows from investing activities for year to date June 30, 2017, for Evergy and Westar Energy. In addition, cash payments of $1.9 million for premiums on COLI policies were reclassified from cash outflows used in operating activities to cash outflows used in investing activities for the same period for Evergy and Westar Energy. The adoption of ASU No. 2016-15 did not have a material impact on KCP&L.

~~In November 2016, the FASB issued ASU No. 2016-18,~~ ~~Statement of Cash Flows: Restricted Cash,~~ which requires that the statement of cash flows explains the change for the period of restricted cash and restricted cash equivalents along with cash and cash equivalents. The guidance requires a retrospective transition method and is effective for fiscal years beginning after December 15, 2017. The Evergy Companies adopted the guidance effective January 1, 2018. As a result, Evergy and Westar Energy adjusted amounts previously reported for cash and cash equivalents to include restricted cash which resulted in an increase to beginning and ending cash, cash equivalents and restricted cash of $0.1 million for year to date June 30, 2017. The adoption of ASU No. 2016-18 did not have a material impact on KCP&L.

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~~Leases~~

~~In February 2016, the FASB issued ASU No. 2016-02,~~ ~~Leases~~, which requires an entity that is a lessee to record a right-of-use asset and a lease liability for lease payments on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted, ~~and is required to be applied using a modified retrospective approach~~. The Evergy Companies plan to adopt the new guidance on January 1, 2019. In 2016, management began evaluating current leases to assess the initial impact on Evergy's consolidated financial results. The Evergy Companies continue to evaluate the guidance and believe application of the guidance will result in an increase to the assets and liabilities on their consolidated balance sheets, with minimal impact to their consolidated statements of income and comprehensive income. The Evergy Companies also continue to monitor unresolved industry issues, including renewables and power purchase agreements, and will analyze the related impact. The standard permits an entity to elect a practical expedient for existing or expired contracts to forgo reassessing leases to determine whether each is in scope of the new standard and to forgo reassessing lease classification. The Evergy Companies expect to elect this practical expedient upon implementation. In July 2018, the FASB issued ASU No. 2018-11, which provides entities an optional transition method to apply ASU No. 2016-02 as of the date of initial application of the standard rather than as of the earliest period presented. The Evergy Companies are evaluating this update and have not yet determined if they will elect to use this optional transition method.

~~Financial Instruments~~

~~In January 2016, the FASB issued ASU No. 2016-01,~~ ~~Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities,~~ which generally requires equity investments to be measured at fair value with changes in fair value recognized in net income. Under the new standard, equity securities are no longer to be classified as available-for-sale or trading securities. The guidance requires a modified retrospective transition method. This guidance is effective for fiscal years beginning after December 15, 2017; accordingly, the Evergy Companies adopted the new standard on January 1, 2018, without a material impact on their consolidated financial statements.

~~Revenue Recognition~~

~~In May 2014, the FASB issued ASU No. 2014-09,~~ ~~Revenue from Contracts with Customers~~, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In August 2015, the FASB issued ASU No. 2015-14, deferring the effective date of ASU No. 2014-09 one year, from January 1, 2017, to January 1, 2018. The ASU replaced most existing revenue recognition guidance in GAAP when it became effective. The Evergy Companies adopted ASU No. 2014-09 and its related amendments (ASC 606) on January 1, 2018 using the modified retrospective transition method for all contracts not completed as of the date of adoption. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 while historical periods have not been adjusted and continue to be reported in accordance with the legacy guidance in ASC 605 - ~~Revenue Recognition~~.

There was no cumulative effect adjustment to the opening balance of retained earnings in 2018 for the Evergy Companies as a result of the adoption of the new guidance. The impact to both operating revenues and taxes other than income taxes on KCP&L's statements of comprehensive income in 2018 as a result of adopting ASC 606 was a decrease of $19.7 million and $37.6 million for the three months ended and year to date June 30, 2018, respectively. This impact was related to sales taxes and franchise fees collected from KCP&L's Missouri customers, which prior to ASC 606, were recorded gross on KCP&L's statements of comprehensive income. See Note 3 for more information on revenue from contracts with customers.

~~2. MERGER OF GREAT PLAINS ENERGY AND WESTAR ENERGY~~

~~Description of Transaction~~

On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement. As a result of the mergers, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Westar Energy, with Westar Energy surviving the merger. Following the completion of these mergers, Westar

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~~Energy and the direct subsidiaries of Great Plains Energy, including KCP&L and GMO, became wholly-owned subsidiaries of Evergy.~~

The merger was structured as a merger of equals in a tax-free exchange of shares that involved no premium paid or received with respect to either Great Plains Energy or Westar Energy. As a result of the closing of the merger transaction, each outstanding share of Great Plains Energy common stock was converted into 0.5981 shares of Evergy common stock and each outstanding share of Westar Energy common stock was converted into 1 share of Evergy common stock.

As provided in the Amended Merger Agreement, substantially all of Westar Energy's outstanding equity compensation awards vested and were converted into a right to receive Evergy common stock and all of Great Plains Energy's outstanding equity compensation awards were converted into equivalent Evergy awards subject to the same terms and conditions at the Great Plains Energy merger exchange ratio of 0.5981.

~~Merger Related Regulatory Matters~~

~~KCC~~

~~In May 2018,~~ the State Corporation Commission of the State of Kansas (KCC) ~~approved Great Plains Energy's, KCP&L's and Westar Energy's joint application for approval~~which was filed in April 2023. The addition of Persimmon Creek is consistent with the preferred plan identified through Evergy Kansas Central’s integrated resource plan filed with the KCC in June 2023, which identified it as part of the merger, including a settlement agreement that had been reached between Great Plains Energy, KCP&L, Westar Energy, KCC staff and certain other intervenors in the case. Through the joint application and settlement agreement, Great Plains Energy, KCP&L and Westar Energy agreedlowest-cost resource plan to ~~the conditions and obligations listed below, in addition to other organizational, financing, customer service and social responsibility commitments.~~

~~Provide a total of $30.6 million of one-time bill credits to~~serve customers. See Note 4 for additional information on Evergy Kansas electric retail customers as soon as practicable following the close of the merger and the completion of Westar Energy's and KCP&L's current rate cases in Kansas. Of this total, $23.1 million of the credits will be provided to Westar Energy customers with the remaining $7.5 million of credits to be provided to KCP&L Kansas customers.

Provide a total of approximately $46 million in additional bill credits consisting of $11.5 million in annual bill credits to Kansas electric retail customers from 2019 through 2022. Of the annual amount, $8.7 million of the credits will be provided to Westar Energy customers with the remaining $2.8 million of credits to be provided to KCP&L Kansas customers.

Provide for the inclusion of a total of $30.0 million of merger-related savings in Westar Energy's and KCP&L's current rate cases in Kansas. Of this total, $22.5 million of the savings are attributable to Westar Energy with the remaining $7.5 million of savings attributable to KCP&L's Kansas jurisdiction.

~~A five year base rate moratorium for Westar Energy and KCP&L in Kansas that will commence following the conclusion of KCP&L's current Kansas~~Central's rate case expected in December 2018. The moratorium is subject to certain conditions and does not include Westar Energy's or KCP&L's fuel recovery mechanisms and certain other cost recovery mechanisms in Kansas.

Participate in an Earnings Review and Sharing Plan (ERSP) for the years 2019 through 2022, which may result in Westar Energy and/or KCP&L being subject to refunding 50% of earned return on equity in excess of authorized return on equity to their Kansas customers.

Maintain charitable contributions and community involvement in the Kansas service territories of Westar Energy and KCP&L at levels equal to or greater than their respective 2015 levels for 5 years following the closing of the merger.

~~Commit that Westar Energy's and KCP&L's retail electric base rates will not increase as a result of the merger.~~

Recover a total of $30.9 million of merger transition costs consisting of $23.2 million for Westar Energy and $7.7 million for KCP&L's Kansas jurisdiction. Westar Energy and KCP&L have recorded these amounts as regulatory assets and the settlement agreement stipulates that they will be recovered over a ten year period.proceeding.

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~~MPSC~~

In May 2018, the Public Service Commission of the State of Missouri (MPSC) approved Great Plains Energy's, KCP&L's, GMO's and Westar Energy's joint application for approval of the merger, including two stipulations and agreements between these companies, MPSC staff and certain other intervenors in the case. Through the joint application and stipulations and agreements, Great Plains Energy, KCP&L, GMO and Westar Energy agreed to the conditions and obligations listed below, in addition to other organizational, financing, customer service and social responsibility commitments.

Provide a total of $29.1 million of one-time bill credits to Missouri electric retail customers within 120 days following the close of the merger. Of this total, $14.9 million of the credits will be provided to KCP&L Missouri customers with the remaining $14.2 million of credits to be provided to GMO customers.

~~Commit that KCP&L's and GMO's retail electric base rates will not increase as a result of the merger.~~

Maintain charitable contributions and community involvement in the Missouri service territories of KCP&L and GMO at levels equal to or greater than their respective 2015 levels for 5 years following the closing of the merger.

~~Provide a total of $3.0 million of support over 10 years to community agencies to promote low-income weatherization efforts.~~

Support the recovery of a total of $16.9 million of merger transition costs in KCP&L's and GMO's current rate cases, consisting of $9.7 million for KCP&L's Missouri jurisdiction and $7.2 million for GMO. KCP&L and GMO have recorded these amounts as regulatory assets and it is expected that they will be recovered over a ten year period.

~~Accounting Charges and Deferrals Related to the Merger~~

The following pre-tax reductions of revenue, expenses and deferral were recognized in June 2018 following the consummation of the merger and are included in the Evergy Companies' consolidated statements of income and comprehensive income for the three months ended and year to date June 30, 2018.

Description Income Statement Line Item Expected Payment Period Evergy Westar Energy KCP&L
(millions)
One-time bill credits Operating revenues 2018 - 2019 $ (59.7 ) $ (23.1 ) $ (22.4 )
Annual bill credits Operating revenues 2019 - 2022 (4.8 ) (3.6 ) (1.2 )
Total impact to operating revenues $ (64.5 ) $ (26.7 ) $ (23.6 )

Charitable contributions and community support Operating and maintenance 2018 - 2027 $ 24.7
$ —
$ —
Voluntary severance and accelerated equity compensation Operating and maintenance 2018 39.9
39.9
—
Other transaction and transition costs Operating and maintenance 2018 40.7
19.0
0.6
Reallocation and deferral of merger transition costs Operating and maintenance n/a (47.8 ) (13.8 ) (23.2 )
Total impact to operating and maintenance expense $ 57.5
$ 45.1
$ (22.6 )
Total $ (122.0 ) $ (71.8 ) $ (1.0 )

Reductions of revenue and expenses related to customer bill credits, charitable contributions and community support were incurred as a result of conditions in the MPSC and KCC merger orders and were recorded as liabilities in the amounts presented above in June 2018 upon the consummation of the merger. Voluntary severance and accelerated equity compensation represent costs related to payments for voluntary severance and change in control plans, as well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding Westar Energy equity compensation awards. Other transaction and transition costs

~~Table of Contents~~

include merger success fees and fees for other outside services incurred. Reallocation and deferral of merger transition costs represents the net reallocation of incurred merger transition costs between Evergy, Westar Energy, KCP&L and GMO and the subsequent deferral of these transition costs to a regulatory asset for future recovery in accordance with the KCC and MPSC merger orders.

~~Purchase Price~~

~~Based on an evaluation of the provisions of ASC 805,~~ ~~Business Combinations~~, Westar Energy was determined to be the accounting acquirer in the merger. Pursuant to the Amended Merger Agreement, Great Plains Energy's common stock shares were exchanged for Evergy common stock shares at the fixed exchange rate of 0.5981. The total consideration transferred in the merger is based on the closing stock price of Westar Energy on June 4, 2018 and is calculated as follows.

(millions, except share amounts)
Great Plains Energy common stock shares outstanding as of June 4, 2018 215,800,074
Great Plains Energy restricted stock awards outstanding as of June 4, 2018 (204,825 )
Great Plains Energy shares to be converted to Evergy shares 215,595,249
Exchange ratio 0.5981
Evergy common stock shares issued to Great Plains Energy shareholders 128,947,518
Closing price of Westar Energy common stock as of June 4, 2018 $ 54.00
Fair value of Evergy shares issued to Great Plains Energy shareholders $ 6,963.2
Fair value of Great Plains Energy's equity compensation awards 12.5
Total purchase price $ 6,975.7

Great Plains Energy's equity compensation awards, including performance shares and restricted stock, were replaced by equivalent Evergy equity compensation awards subject to substantially the same terms and conditions upon the closing of the merger. In accordance with the accounting guidance in ASC 805, a portion of the fair value of these awards is attributable to the purchase price as it represents consideration transferred in the merger.

~~Purchase Price Allocation~~

The fair value of Great Plains Energy's assets acquired and liabilities assumed as of June 4, 2018 was determined based on significant estimates and assumptions that are judgmental in nature. Third-party valuation specialists were engaged to assist in the valuation of these assets and liabilities. The fair values of Great Plains Energy's assets acquired and liabilities assumed utilized for the purchase price allocation are preliminary to the extent that additional information is obtained about facts and circumstances that existed as of the acquisition date.

The significant assets and liabilities for which preliminary valuation amounts are reflected as of the filing of this combined Form 10-Q include the fair value of acquired long-term debt, asset retirement obligations, pension and post-retirement plans, accumulated deferred income tax liabilities and certain other long-term assets and liabilities.

The majority of Great Plains Energy's operations are subject to the rate-setting authority of the MPSC, KCC and The Federal Energy Regulatory Commission (FERC) and are accounted for pursuant to GAAP, including the accounting guidance for regulated operations. The rate-setting and cost recovery provisions for Great Plains Energy's regulated operations provide revenue derived from costs including a return on investment of assets and liabilities included in rate base. Except for the significant assets and liabilities for which valuation adjustments were made as discussed above, the fair values of Great Plains Energy's tangible and intangible assets and liabilities subject to these rate-setting provisions approximate their carrying values and the assets and liabilities do not reflect any adjustments to these amounts other than for amounts not included in rate base. The difference between the fair value and pre-merger carrying amounts for Great Plains Energy's long-term debt, asset retirement obligations and pension and post-retirement plans that were related to regulated operations were recorded as a regulatory asset or liability. The excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed was recognized as goodwill as of the merger date.

~~Table of Contents~~

~~The preliminary purchase price allocation to Great Plains Energy's assets and liabilities as of June 4, 2018 is detailed in the following table.~~

(millions)
Current assets $ 2,151.7
Property, plant and equipment, net 9,179.7
Goodwill 2,333.7
Other long-term assets, excluding goodwill 1,235.9
Total assets $ 14,901.0
Current liabilities 1,673.9
Long-term liabilities, excluding long-term debt 2,892.8
Long-term debt, net 3,358.6
Total liabilities $ 7,925.3
Total purchase price $ 6,975.7

~~Impact of Merger~~

The impact of Great Plains Energy's subsidiaries on Evergy's revenues and net income attributable to Evergy in the consolidated statements of income for the three months and year to date June 30, 2018, was an increase of $242.6 million and $60.2 million, respectively.

Evergy has incurred total merger-related costs, including reductions of revenue for customer bill credits, of $123.3 million and $124.0 million for the three months ended and year to date June 30, 2018, respectively, and $0.5 million and $1.0 million for the three months ended and year to date June 30, 2017, respectively.

~~Pro Forma Financial Information~~

The following unaudited pro forma financial information reflects the consolidated results of operations of Evergy as if the merger transactions had taken place on January 1, 2017. The unaudited pro forma information was calculated after applying Evergy's accounting policies and adjusting Great Plains Energy's results to reflect purchase accounting adjustments.

The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of the consolidated results of operations that would have been achieved or the future consolidated results of operations of Evergy.

Three Months Ended
June 30 Year to Date
June 30
2018 2017 2018 2017
(millions, except per share amounts)
Operating revenues $ 1,365.9
$ 1,291.9
$ 2,552.3
$ 2,435.2
Net income attributable to Evergy, Inc. 243.7
160.7
335.6
246.6
Basic earnings per common share $ 0.90
$ 0.59
$ 1.24
$ 0.91
Diluted earnings per common share $ 0.90
$ 0.59
$ 1.23
$ 0.91

Evergy, Westar Energy and Great Plains Energy incurred non-recurring costs directly related to the merger that have been excluded in the pro forma earnings presented above. After-tax non-recurring merger-related costs incurred by Evergy, Westar Energy and Great Plains Energy were $68.5 million and $69.2 million for the three months ended and year to date June 30, 2018, respectively, and $1.0 million and $3.3 million for the three months ended and year to date June 30, 2017, respectively.

~~Table of Contents~~

3.2. REVENUE

Evergy's, ~~Westar Energy's~~Evergy Kansas Central's and ~~KCP&L's~~Evergy Metro's revenues disaggregated by customer class are summarized in the following tables.


Evergy
	Three Months Ended June 30				Year to Date June 30
	2023		2022		2023		2022
Revenues	(millions)
Residential	$	492.7	$	513.4	$	951.3	$	965.2
Commercial	460.7		465.5		890.7		868.6
Industrial	157.3		170.1		316.4		320.4
Other retail	8.9		9.8		20.2		18.8
Total electric retail	$	1,119.6	$	1,158.8	$	2,178.6	$	2,173.0
Wholesale	83.1		79.5		153.5		131.4
Transmission	100.5		101.0		206.3		199.0
Industrial steam and other	5.8		7.4		17.5		10.7
Total revenue from contracts with customers	$	1,309.0	1,346.7		2,555.9		2,514.1
Other	45.2		99.8		95.1		156.3
Operating revenues	$	1,354.2	$	1,446.5	$	2,651.0	$	2,670.4

Three Months Ended June 30, 2018 Evergy Westar Energy
KCP&L^(a)
Revenues (millions)
Residential $ 342.0
$ 221.1
$ 187.0
Commercial 259.1
170.0
196.3
Industrial 108.6
91.8
34.1
Other retail 6.4
5.7
2.3
Total electric retail $ 716.1
$ 488.6
$ 419.7
Wholesale 89.7
87.1
5.5
Transmission 75.1
72.2
3.9
Industrial steam and other 2.2
1.3
2.3
Total revenue from contracts with customers $ 883.1
$ 649.2
$ 431.4
Other 10.3
1.7
20.8
Operating revenues $ 893.4
$ 650.9
$ 452.2

Year to Date June 30, 2018 Evergy Westar Energy
KCP&L^(a)
Revenues (millions)
Residential $ 522.3
$ 401.4
$ 341.9
Commercial 414.5
325.4
378.1
Industrial 202.1
185.3
66.3
Other retail 10.6
9.9
5.0
Total electric retail $ 1,149.5
$ 922.0
$ 791.3
Wholesale 183.9
181.3
8.6
Transmission 147.0
144.1
7.2
Industrial steam and other 4.0
3.1
2.3
Total revenue from contracts with customers $ 1,484.4
$ 1,250.5
$ 809.4
Other 9.2
0.6
39.9
Operating revenues $ 1,493.6
$ 1,251.1
$ 849.3

^(a)~~KCP&L amounts are included in consolidated Evergy from the date of the closing of the merger, June 4, 2018 through June 30, 2018.~~

~~Retail Revenues~~

The Evergy Companies' retail revenues are generated by the regulated sale of electricity to their residential, commercial and industrial customers within their franchised service territories. The Evergy Companies recognize revenue on the sale of electricity to their customers over time as the service is provided in the amount they have a right to invoice. Retail customers are billed on a monthly basis at the tariff rates approved by the KCC and MPSC based on customer kWh usage.

Revenues recorded include electric services provided but not yet billed by the Evergy Companies. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. The Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates.

The Evergy Companies also collect sales taxes and franchise fees from customers concurrent with revenue-producing activities that are levied by state and local governments. These items are excluded from revenue, and thus not reflected on the statements of income and comprehensive income, for Evergy, Westar Energy and KCP&L.


Evergy Kansas Central
	Three Months Ended June 30				Year to Date June 30
	2023		2022		2023		2022
Revenues	(millions)
Residential	$	192.3	$	222.8	$	384.4	$	418.9
Commercial	180.7		193.7		358.8		358.9
Industrial	98.2		111.9		206.7		212.7
Other retail	2.5		4.5		6.8		8.6
Total electric retail	$	473.7	$	532.9	$	956.7	$	999.1
Wholesale	58.8		81.4		126.4		131.5
Transmission	96.6		91.1		197.2		178.6
Other	—		0.6		1.7		1.2
Total revenue from contracts with customers	$	629.1	$	706.0	$	1,282.0	$	1,310.4
Other	10.5		18.0		36.2		27.5
Operating revenues	$	639.6	$	724.0	$	1,318.2	$	1,337.9

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Evergy Metro
	Three Months Ended June 30				Year to Date June 30
	2023		2022		2023		2022
Revenues	(millions)
Residential	$	186.0	$	184.9	$	344.0	$	344.8
Commercial	197.3		194.1		373.2		367.7
Industrial	35.0		33.4		63.4		62.2
Other retail	3.4		3.0		6.1		5.6
Total electric retail	$	421.7	$	415.4	$	786.7	$	780.3
Wholesale	25.9		(2.5)		37.3		5.2
Transmission	3.3		4.4		7.1		9.8
Other	—		1.2		2.4		(0.6)
Total revenue from contracts with customers	$	450.9	$	418.5	$	833.5	$	794.7
Other	34.4		81.6		58.2		127.9
Operating revenues	$	485.3	$	500.1	$	891.7	$	922.6

~~Prior to the adoption of ASC 606, KCP&L recorded sales taxes and franchise fees collected from its Missouri customers gross on KCP&L's statements of comprehensive income.~~

~~Wholesale Revenues~~

The Evergy Companies' wholesale revenues are generated by the sale of wholesale power and capacity in circumstances when the power that the Evergy Companies generate is not required for customers in their service territory. These sales primarily occur within the SPP Integrated Marketplace. The Evergy Companies also purchase power from the SPP Integrated Marketplace and record sale and purchase activity on a net basis in wholesale revenue or fuel and purchased power expense. In addition, the Evergy Companies sell wholesale power and capacity through bilateral contracts to other counterparties, such as electric cooperatives, municipalities and other electric utilities.

For both wholesale sales to the SPP Integrated Marketplace and through bilateral contracts, the Evergy Companies recognize revenue on the sale of wholesale electricity to their customers over time as the service is provided in the amount they have a right to invoice.

With regards to the SPP Integrated Marketplace, wholesale sales are billed weekly based on the fixed transaction price determined by the market at the time of the sale and the MWh quantity purchased. With regards to bilateral contracts, wholesale sales are billed monthly based on the contractually determined transaction price and the kWh quantity purchased.

~~Transmission Revenues~~

The Evergy Companies' transmission revenues are generated by the use of their transmission networks by the SPP, which the Evergy Companies allow the SPP to access and operate on their behalf and the behalf of other SPP participants. As new transmission lines are constructed, they are included in the transmission network available to the SPP. In exchange for providing access, the SPP pays the Evergy Companies consideration determined by formula rates approved by FERC, which include the cost to construct and maintain the transmission lines and a return on investment. The price for access to the Evergy Companies' transmission networks are updated annually based on projected costs. Projections are updated to actual costs and the difference is included in subsequent year's prices.

The Evergy Companies have different treatment for their legacy transmission facilities within the SPP, which results in different levels of transmission revenue being received from the SPP. Westar Energy's transmission revenues from SPP include amounts that Westar Energy pays to the SPP on behalf of its retail electric customers for the use of Westar Energy's legacy transmission facilities. These transmission revenues are mostly offset by SPP network transmission cost expense that Westar Energy pays on behalf of its retail customers. KCP&L and GMO do not pay the SPP for their retail customers’ use of the KCP&L and GMO legacy transmission facilities and correspondingly, their transmission revenues also do not reflect the associated transmission revenue from the SPP.

The Evergy Companies recognize revenue on the sale of transmission service to their customers over time as the service is provided in the amount they have a right to invoice. Transmission service to the SPP is billed monthly based on a fixed transaction price determined by FERC formula transmission rates along with other SPP-specific charges and the MW quantity purchased.

~~Industrial Steam and Other Revenues~~

Evergy's industrial steam and other revenues are primarily generated by the regulated sale of industrial steam to GMO's steam customers. Evergy recognizes revenue on the sale of industrial steam to its customers over time as the service is provided in the amount that it has the right to invoice. Steam customers are billed on a monthly basis at the tariff rate approved by the MPSC based on customer MMBtu usage.

~~Optional Exemption~~

Evergy, Westar Energy and KCP&L do not disclose the value of unsatisfied performance obligations on certain bilateral wholesale contracts with an original expected duration of greater than one year for which they recognize revenue in the amount they have the right to invoice.

~~Table of Contents~~

4.3. RECEIVABLES

The Evergy Companies' receivables are detailed in the following table.


	June 30		December 31

	2023		2022
Evergy	(millions)
Customer accounts receivable - billed	$	7.6	$	8.9
Customer accounts receivable - unbilled	176.6		136.9
Other receivables	159.5		200.9
Allowance for credit losses	(22.6)		(31.4)
Total	$	321.1	$	315.3
Evergy Kansas Central
Customer accounts receivable - billed	$	—	$	—
Customer accounts receivable - unbilled	60.5		71.4
Other receivables	147.5		194.9
Allowance for credit losses	(11.1)		(16.9)
Total	$	196.9	$	249.4
Evergy Metro
Customer accounts receivable - billed	$	—	$	—
Customer accounts receivable - unbilled	60.1		25.5
Other receivables	25.5		21.6
Allowance for credit losses	(7.3)		(9.3)
Total	$	78.3	$	37.8

Table of Contents

June 30 December 31
2018 2017
Evergy (millions)
Customer accounts receivable - billed $ 194.3
$ 165.4

Customer accounts receivable - unbilled 240.5
76.6

Other receivables 67.7
55.4

Allowance for doubtful accounts (13.8 ) (6.7 )
Total $ 488.7
$ 290.7

Westar Energy
Customer accounts receivable - billed $ 173.7
$ 165.4

Customer accounts receivable - unbilled 95.8
76.6

Other receivables 42.3
55.4

Allowance for doubtful accounts (6.2 ) (6.7 )
Total $ 305.6
$ 290.7

KCP&L ^(a)

Customer accounts receivable - billed $ 15.0
$ 1.6

Customer accounts receivable - unbilled 95.5
67.6

Other receivables 18.0
39.3

Allowance for doubtful accounts (4.0 ) (2.2 )
Total $ 124.5
$ 106.3

^(a)~~KCP&L amounts are not included in consolidated~~The Evergy Companies' other receivables as of June 30, 2023 and December 31, ~~2017.~~

~~Evergy's, Westar Energy's and KCP&L's other receivables at~~ ~~June 30, 2018~~ ~~and~~ ~~December 31, 2017~~2022, consisted primarily of receivables from partners in jointly-owned electric utility plants, ~~and~~ wholesale sales ~~receivables. As of June 30, 2018,~~receivables and receivables related to alternative revenue programs. The Evergy Companies' other receivables ~~for Evergy, Westar Energy and KCP&L~~also included receivables from ~~contracts with customers of $41.4 million, $36.6 million and $1.4 million, respectively.~~

~~The Evergy Companies' recorded bad debt expense related to~~ contracts with customers as summarized in the following table.


	June 30		December 31

	2023		2022
	(millions)
Evergy	$	75.6	$	113.0
Evergy Kansas Central	64.9		110.8
Evergy Metro	9.7		1.3

Three Months Ended
June 30 Year to Date
June 30
2018 2017 2018 2017
(millions)
Evergy $ 2.1
$ 0.2
$ 6.1
$ 3.4
Westar Energy 1.1
0.2
5.1
3.4
KCP&L ^(a)
1.9
1.7
3.6
3.2
The change in the Evergy Companies' allowance for credit losses is summarized in the following table.

^(a)~~KCP&L amounts are included in consolidated Evergy from the date of the closing of the merger, June 4, 2018 through June 30, 2018.~~


	2023		2022
Evergy	(millions)
Beginning balance January 1	$	31.4	$	32.9
Credit loss expense	0.6		1.7
Write-offs	(15.0)		(13.5)
Recoveries of prior write-offs	5.6		6.0
Ending balance June 30	$	22.6	$	27.1
Evergy Kansas Central
Beginning balance January 1	$	16.9	$	13.0
Credit loss expense (income)	(0.2)		1.5
Write-offs	(8.0)		(6.1)
Recoveries of prior write-offs	2.4		2.3
Ending balance June 30	$	11.1	$	10.7
Evergy Metro
Beginning balance January 1	$	9.3	$	13.3
Credit loss expense	0.6		0.3
Write-offs	(4.7)		(5.0)
Recoveries of prior write-offs	2.1		2.5
Ending balance June 30	$	7.3	$	11.1

Sale of Accounts Receivable ~~– KCP&L~~

Evergy Kansas Central, Evergy Metro and ~~GMO~~

~~KCP&L and GMO sell all of their retail electric accounts receivable to their wholly-owned subsidiaries, KCP&L Receivables Company and GMO Receivables Company, respectively, which in turn~~Evergy Missouri West sell an undivided percentage ownership interest in ~~the~~their retail electric accounts receivable to ~~Victory Receivables Corporation, an~~ independent outside ~~investor. Each of KCP&L Receivables Company's and GMO Receivables Company's sale of the undivided percentage ownership interest in accounts receivable to Victory Receivables Corporation is~~investors. These sales are accounted for as a secured ~~borrowing~~borrowings with accounts receivable pledged as collateral and a corresponding short-term collateralized note payable recognized on the balance sheets. At ~~June 30, 2018, Evergy's~~The Evergy Companies' accounts receivable pledged as collateral and the corresponding short-term collateralized note payable ~~were $195.0 million. At~~ ~~June 30, 2018~~are summarized in the following table.


	June 30		December 31

	2023		2022
	(millions)
Evergy	$	347.0	$	359.0
Evergy Kansas Central	172.0		185.0
Evergy Metro	125.0		124.0

Each receivable sale facility expires in 2024. Evergy Kansas Central's facility allows for $185.0 million in aggregate outstanding principal amount of borrowings from mid-October through mid-June and ~~December 31, 2017, KCP&L's accounts receivable pledged as collateral and the corresponding short-term collateralized note~~then $200.0 million

Table of Contents

~~payable were $130.0 million. KCP&L's agreement expires in September 2018 and~~from mid-June through mid-October. Evergy Metro's facility allows for $130.0 million in aggregate outstanding principal amount of borrowings at any time. ~~GMO's agreement expires in September 2018 and~~Evergy Missouri West's facility allows for $50.0 million in aggregate outstanding principal amount of borrowings from mid-November through mid-June and then $65.0 million from mid-June through mid-November.

5.4. RATE MATTERS AND REGULATION

KCC Proceedings

~~Westar~~Evergy Kansas Central's and Evergy Metro's 2023 Rate Case Proceeding

In April 2023, Evergy Kansas Central and Evergy Metro filed applications with the KCC to request increases to their retail revenues of approximately $204 million and $14 million, respectively. Evergy Kansas Central's request reflects a return on equity of 10.25% (with a capital structure composed of 52% equity) and increases related to the recovery of infrastructure investments made to improve reliability and enhance customer service, the inclusion of Evergy Kansas Central's non-regulated 8% of Jeffrey Energy ~~2018~~Center (JEC) in rate base and the management of the previously established end to a corporate-owned life insurance program. Evergy Kansas Central is also requesting the inclusion of the cost of Persimmon Creek of approximately $220.9 million. The cost of Persimmon Creek is not included in Evergy Kansas Central's approximately $204 million increase to retail revenue requested in the case but if approved by the KCC, the cost of Persimmon Creek would result in an additional $21.5 million increase to Evergy Kansas Central's retail revenues. The addition of Persimmon Creek is consistent with the preferred plan identified through Evergy Kansas Central's integrated resource plan filed with the KCC in June 2023, which identified it as part of the lowest-cost resource plan to serve customers. Evergy Metro's request reflects a return on equity of 10.25% (with a capital structure composed of 52% equity) and increases related to recovery of infrastructure investments made to improve reliability and enhance customer service. Requests for increases in retail revenues in both proceedings are partially offset by significant customer savings and cost reductions. New rates are expected to be effective in December 2023.

Evergy Kansas Central 2023 Transmission Delivery Charge (TDC)

In ~~March 2018,~~April 2023, the KCC issued an order adjusting ~~Westar Energy's~~Evergy Kansas Central's retail prices to include updated transmission costs as reflected in the Federal Energy Regulatory Commission (FERC) transmission formula rate (TFR). The new prices were effective in May 2023 and include the adjustments to the 2023 TFR described under "Evergy Kansas Central TFR Formal Challenge" within this Note 4. The new prices are expected to decrease Evergy Kansas Central's annual retail revenues by $22.3 million when compared to 2022.

Evergy Metro 2023 TDC

In April 2023, the KCC issued an order adjusting Evergy Metro's retail prices to include updated transmission costs as reflected in the FERC ~~transmission formula rate (TFR).~~TFR. The new prices were effective in ~~April 2018~~May 2023 and are expected to increase ~~Westar Energy's~~Evergy Metro's annual retail revenues by ~~$31.5 million.~~$4.0 million when compared to 2022.

~~Westar Energy 2018 Rate Case Proceedings~~Evergy Kansas Central and Evergy Metro Earnings Review and Sharing Plan (ERSP)

~~In February 2018, Westar Energy filed an application~~As part of their merger settlement agreement with the KCC, Evergy Kansas Central and Evergy Metro agreed to ~~request a two-step change~~participate in ~~rates, a decrease~~an ERSP for the years 2019 through 2022. Under the ERSP, Evergy Kansas Central's and Evergy Metro's Kansas jurisdiction are required to ~~retail revenues~~refund to customers 50% of ~~approximately $2 million~~annual earnings in ~~September 2018 followed by an increase in retail revenues~~excess of ~~approximately $54 million in February 2019, with a~~their authorized return on equity of ~~9.85%~~9.3% to the extent the excess earnings exceed the amount of annual bill credits that Evergy Kansas Central and ~~a rate-making equity ratio of 51.6%. The request reflects costs associated~~Evergy Metro agreed to provide in connection with the completion of the Western Plains Wind Farm, the expiration of wholesale contracts currently reflected in retail prices as offsets to retail cost of service, the expiration of the 10-year period for production tax credits from prior wind investments and an updated depreciation study, partially offset by the impact of the Tax Cuts and Jobs Act and a portion of the savings from the merger ~~with Great Plains Energy.~~

~~In June 2018, Westar Energy, the KCC staff and several other intervenors~~that resulted in the ~~case reached~~formation of Evergy.

Evergy Kansas Central estimates its 2022 annual earnings did not result in a ~~non-unanimous stipulation and agreement to settle all outstanding issues~~refund obligation. As of December 31, 2022, Evergy Metro estimated that its 2022 annual earnings resulted in a $16.7 million refund obligation, which was recorded in the ~~case. The stipulation~~fourth quarter of 2022. Evergy Kansas Central and agreement provides for a decrease to retail revenues of approximately $66 million, before rebasing property tax expense, with a return on equity of 9.3%, a rate-making equity ratio of 51.46% and does not include a second step revenue requirement change as included in Westar Energy's initial application. The stipulation and agreement also provides for an approximately $16 million increase associated with rebasing property tax expense, an approximately $46 million increase in depreciation expense, allows for the recovery of an approximately $41 million wholesale contract that expires in 2019 through Westar Energy's fuel recovery mechanism and reflects customer benefits related to the impacts of the Tax Cuts and Jobs Act, including a one-time bill credit of approximately $50 million to be provided to customers following the conclusion of the rate case.

The non-unanimous stipulation and agreement is subject to the approval of the KCC. An evidentiary hearing in the case occurred in July 2018 and new rates are expected to go into effect in September 2018.

~~KCP&L 2018 Rate Case Proceedings~~

~~In May 2018, KCP&L~~Evergy Metro filed ~~an application~~their 2022 ERSP calculations with the KCC in March 2023. As part of these filings, Evergy Metro filed for a lower refund obligation for 2022 of approximately $6 million (compared with its $16.7 million refund obligation estimate) as a result of certain intercompany billings to ~~request an increase~~Evergy Kansas Central. In May 2023, the KCC approved Evergy Metro's application ordering it to ~~its retail revenues~~refund approximately $6 million.

Table of ~~$26.2 million before rebasing property tax expense, with a return on equity of 9.85% and a rate-making equity ratio of 49.8%. The request reflects the impact~~Contents

MPSC Proceedings
Evergy Missouri West February 2021 Winter Weather Event Securitization
In February 2021, much of the ~~Tax Cuts~~central and ~~Jobs Act~~southern United States, including the service territories of the Evergy Companies, experienced a significant winter weather event that resulted in extremely cold temperatures over a multi-day period (February 2021 winter weather event).

In November 2022, the MPSC issued a revised financing order authorizing Evergy Missouri West to issue securitized bonds to recover its extraordinary fuel and ~~increases in infrastructure investment costs. KCP&L also requested an additional $6.7 million increase associated with rebasing property tax expense.~~

purchased power costs incurred as part of the February 2021 winter weather event. As part of the merger settlement agreement reached among Westar Energy, Great Plains Energy, KCP&L, KCC staff and several other intervenors discussed further in Note 2, certain parties agreed to accept specific merger-contingent conditions or take particular positions in the rate case. Among these conditions, KCP&L agreed to accept a 9.3% return on equity and a limited amount of merger-related savings and transition costs included in its rate request. If KCC approves KCP&L's rate request with these merger-related conditions, KCP&L estimates that its increase in retail revenues will be approximately $16 million, compared with the $26.2 million increase originally requested.

Testimony from the KCC staff and other parties regarding the case is expected in October 2018, with an evidentiary hearing to occur later in October 2018 and new rates expected to go into effect in December 2018.

~~Table of Contents~~

~~MPSC Proceedings~~

~~KCP&L 2018 Rate Case Proceedings~~

~~In January 2018, KCP&L filed an application with~~order, the MPSC found that Evergy Missouri West's costs were prudently incurred, that it should only be allowed to ~~request an increase to~~recover 95% of its ~~retail revenues of $8.9 million before rebasing~~extraordinary fuel and purchased power ~~expense,~~costs consistent with the 5% sharing provision of its fuel recovery mechanism, that it should be allowed to recover carrying costs incurred since February 2021 at Evergy Missouri West's long-term debt rate of 5.06% and approved a 15 year repayment period for the bonds with a ~~return~~17 year legal maturity. As of June 30, 2023 and December 31, 2022, the value of Evergy Missouri West's February 2021 winter weather event regulatory asset was $316.6 million and $309.0 million, respectively. Evergy Missouri West will continue to record carrying charges on ~~equity of 9.85% and a rate-making equity ratio of 50.03%. The request reflects~~its February 2021 winter weather event regulatory asset until it issues the ~~impact~~securitized bonds.

In January 2023, the Office of the ~~Tax Cuts and Jobs Act and increases in infrastructure investment costs, transmission related~~Public Counsel (OPC) filed an appeal with the Missouri Court of Appeals, Western District, challenging the financing order regarding the treatment of income tax deductions, carrying costs and ~~property tax costs. KCP&L also requested an additional $7.5 million increase associated with rebasing~~discount rates related to the financing of the extraordinary fuel and purchased power ~~expense.~~

Testimony from MPSC staff and other parties regarding the case was filed in June 2018. The MPSC staff’s testimony recommended a return on equity range from 9.0% to 10.0% and a decrease to retail revenues of $19.1 million. The outcomecosts incurred as part of the ~~KCP&L~~February 2021 winter weather event. A final nonappealable financing order is required prior to the issuance of securitized bonds. With oral arguments scheduled for September 2023, a decision by the Missouri ~~rate case will likely be different from either~~Court of Appeals, Western District, is currently expected in the ~~positions~~second half of ~~KCP&L or MPSC staff,~~2023, though the ~~decision of the MPSC cannot be predicted.~~

~~An evidentiary hearing in the case is expected to occur in September 2018 with new rates expected to go into effect in December 2018.~~

~~GMO 2018 Rate Case Proceedings~~

In January 2018, GMO filed an application with the MPSC to request a decrease to its retail revenues of $2.4 million before rebasing fuel and purchased power expense, with a return on equity of 9.85% and a rate-making equity ratio of 54.4%. The request reflects the impact of the Tax Cuts and Jobs Act and increases in infrastructure investment costs and transmission related costs. GMO also requested a $21.7 million increase associated with rebasing fuel and purchased power expense.

Testimony from MPSC staff and other parties regarding the case was filed in June 2018. The MPSC staff’s testimony recommended a return on equity range from 9.0% to 10.0% and a decrease to retail revenues of $34.8 million. The outcome of the GMO rate case will likely be different from either of the positions of GMO or MPSC staff, thoughtimeline for the decision ~~of the MPSC cannot be predicted.~~

~~An evidentiary hearing in the case~~ is ~~expected to occur in September 2018 with new rates expected to go into effect in December 2018.~~uncertain.

FERC Proceedings

~~Westar Energy's~~In October of each year, Evergy Kansas Central and Evergy Metro post an updated TFR ~~effective in January 2018,~~that includes projected ~~2018~~ transmission capital expenditures and operating costs ~~and was expected to increase annual transmission revenues by $25.5 million. Due to~~for the ~~passage of~~following year. This rate is the ~~Tax Cuts and Jobs Act, Westar Energy requested permission from FERC to retroactively reflect the reduction~~most significant component in the ~~federal corporate income tax~~retail rate ~~in its 2018 prices. In April 2018, FERC granted the request~~calculation for Evergy Kansas Central's and ~~Westar Energy has recorded a regulatory liability as of~~ ~~June 30, 2018~~ ~~of $7.8 million. This updated rate will provide the basis for a new~~Evergy Metro's annual request with the KCC to ~~retroactively~~ adjust ~~Westar Energy's~~ retail prices to include updated transmission ~~costs. It is estimated~~costs through the ~~revised~~TDC.

Evergy Kansas Central TFR ~~will increase 2018~~Annual Update

In the most recent two years, the updated TFR was expected to adjust Evergy Kansas Central's annual transmission revenues by ~~$2.3~~approximately:

•$21.7 million ~~when compared to 2017.~~decrease effective in March 2023; and

~~6. ASSET RETIREMENT OBLIGATIONS~~

Asset Retirement Obligations (AROs) associated with tangible long-lived assets are legal obligations that exist under enacted laws, statutes and written or oral contracts, including obligations arising under the doctrine of promissory estoppel. These liabilities are recognized at estimated fair value as incurred with a corresponding amount capitalized as part of the cost of the related long-lived assets and depreciated over their useful lives. Accretion of the liabilities due to the passage of time is recorded to a regulatory asset and/or liability. Changes•$33.2 million increase effective in the estimated fair values of the liabilities are recognized when known. Evergy, Westar Energy and KCP&L record the current portion of AROs within other current liabilities on their consolidated balance sheets.

Westar Energy, KCP&L and GMO have AROs related to asbestos abatement and the closure and post-closure care of ponds and landfills containing coal combustion residuals (CCRs). In addition, Westar Energy and KCP&L have AROs related to decommissioning Wolf Creek Generating Station (Wolf Creek) and the retirement of wind generation facilities.

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Certain of the Evergy Companies' generating stations or other facilities may contain asbestos due to the age of the facilities, but no confirmation or measurement of the amount of asbestos could be determined as of June 30, 2018. Due to the inability to reasonably estimate the quantities or the amount of disturbance that will be necessary during dismantlement at the end of the life of a plant or facility, the fair value of this ARO cannot be reasonably estimated at this time. Management will continue to monitor the obligation and will recognize a liability in the period in which sufficient information becomes available to reasonably estimate its fair value.

~~The following table summarizes the change in the Evergy Companies' AROs for the periods ending June 30, 2018 and December 31, 2017.~~

Evergy Westar Energy
KCP&L^(a)

2018 2017 2018 2017 2018 2017
(millions)
Beginning balance, January 1 $ 405.1
$ 324.0
$ 405.1
$ 324.0
$ 266.3
$ 278.0

Liabilities assumed upon merger with Great Plains Energy 412.2
—
—
—
—
—

Liabilities incurred during the year 7.4
13.5
7.4
13.5
—
—

Revision in timing and/or estimates (127.0 ) 66.8
(127.0 ) 66.8
—
0.3

Settlements (8.2 ) (16.0 ) (7.2 ) (16.0 ) (6.3 ) (25.5 )
Accretion 10.8
16.8
9.5
16.8
6.7
13.5

Ending balance $ 700.3
$ 405.1
$ 287.8
$ 405.1
$ 266.7
$ 266.3

Less: current portion (72.4 ) (25.1 ) (25.1 ) (25.1 ) (43.2 ) (34.9 )
Total noncurrent asset retirement obligation $ 627.9
$ 380.0
$ 262.7
$ 380.0
$ 223.5
$ 231.4

^(a)~~KCP&L amounts are only included in consolidated Evergy from the date of the closing of the merger, June 4, 2018 through June 30, 2018.~~January 2022.

See "Evergy Kansas Central TFR Formal Challenge" within this Note 24 for more information regarding ~~KCP&L's and GMO's ARO liabilities~~the March 2023 adjustment.

Evergy Kansas Central TFR Formal Challenge

In March 2022, certain Evergy Kansas Central TFR customers submitted a formal challenge regarding the implementation of Evergy Kansas Central's TFR, specifically with regards to how Evergy Kansas Central's capital structure was calculated as part of determining the Annual Transmission Revenue Requirement (ATRR). As part of this challenge, the customers requested that Evergy ~~assumed~~Kansas Central make refunds for over-collections in rate years 2018, 2019, 2020, 2021 and 2022 as a result of the ~~merger.~~calculation of its capital structure included in the TFR. Evergy Kansas Central disputed that any refunds for 2018 - 2022 were required as Evergy Kansas Central was following its approved TFR formula.

In ~~June 2018,~~December 2022, FERC issued an order upholding in part, and denying in part, the formal challenge of Evergy Kansas Central's TFR by certain customers. As a result of this order, Evergy and ~~Westar Energy~~Evergy Kansas Central recorded a ~~$127.0~~$32.8 million ~~revision in estimate primarily~~regulatory liability on their consolidated balance sheets as of December 31, 2022 for the estimated refund of TFR revenue over-collections related to ~~Westar Energy's ARO~~the calculation of Evergy Kansas Central's capital structure for

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rate years 2018 - 2022. In March 2023, Evergy Kansas Central refiled its annual update to ~~decommission~~include the refund of the 2020, 2021 and 2022 over-collections as part of its ~~47% ownership share~~2023 TFR effective in March 2023. In February 2023, certain Evergy Kansas Central TFR customers submitted a formal challenge requesting the refund of ~~Wolf Creek.~~over-collections related to the 2018 and 2019 over-collections. A decision from FERC regarding this challenge is expected later in 2023.

Evergy Metro TFR Annual Update

7.In the most recent two years, the updated TFR was expected to adjust Evergy Metro's annual transmission revenues by approximately:

•$8.6 million increase effective in January 2023; and

•$18.1 million increase effective in January 2022.

5. GOODWILL

GAAP requires goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. Evergy's impairment test for the $2,336.6 million of goodwill that was recorded as a result of the Great Plains Energy and Evergy Kansas Central merger was conducted as of May 1, 2023. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. Evergy's consolidated operations are considered one reporting unit for assessment of impairment, as management assesses financial performance and allocates resources on a consolidated basis. The determination of fair value of the reporting unit consisted of two valuation techniques: an income approach consisting of a discounted cash flow analysis and a market approach consisting of a determination of reporting unit invested capital using a market multiple derived from the historical earnings before interest, income taxes, depreciation and amortization and market prices of the stock of peer companies. The results of the two techniques were evaluated and weighted to determine a point within the range that management considered representative of fair value for the reporting unit. The fair value of the reporting unit exceeded the carrying amount, including goodwill. As a result, there was no impairment of goodwill.

6. PENSION PLANS AND ~~OTHER EMPLOYEE~~POST-RETIREMENT BENEFITS

Evergy and certain of its subsidiaries maintain, and ~~Westar Energy~~Evergy Kansas Central and ~~KCP&L~~Evergy Metro participate in, qualified non-contributory defined benefit pension plans covering the majority of ~~Westar Energy's~~Evergy Kansas Central's and ~~KCP&L's~~Evergy Metro's employees as well as certain non-qualified plans covering certain active and retired officers. Evergy is also responsible for its indirect 94% ownership share of Wolf Creek ~~Nuclear Operating Corporation (WCNOC)~~Generating Station's (Wolf Creek) defined benefit plans, consisting of ~~Westar Energy's~~Evergy Kansas South's and ~~KCP&L's~~Evergy Metro's respective 47% ownership shares.

For the majority of employees, pension benefits under these plans reflect the employees' compensation, years of service and age at retirement. However, for the plan covering ~~Westar Energy's~~Evergy Kansas Central's employees, the benefits for non-union employees hired between 2002 and the second quarter of 2018 and union employees hired beginning in 2012 are derived from a cash balance account formula. The plan was closed to future non-union employees in 2018. For the plans covering ~~KCP&L's~~Evergy Metro's employees, the benefits for union employees hired beginning in 2014 are derived from a cash balance account formula and the plans were closed to future non-union employees in 2014.

Evergy and its subsidiaries also provide certain post-retirement health care and life insurance benefits for substantially all retired employees of ~~Westar Energy~~Evergy Kansas Central and ~~KCP&L~~Evergy Metro and their respective shares of ~~WCNOC's~~Wolf Creek's post-retirement benefit plans.

The Evergy Companies record pension and post-retirement expense in accordance with rate orders from the KCC and MPSC that allow the difference between pension and post-retirement costs under GAAP and costs for

~~Table of Contents~~

ratemaking to be recognized as a regulatory asset or liability. This difference between financial and regulatory accounting methods is due to timing and will be eliminated over the life of the plans.

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For the three months ended June 30, 2023, Evergy, Evergy Kansas Central and Evergy Metro recorded pension settlement charges (credits) of ($2.0) million, $0.2 million and ($2.2) million, respectively. Year to date June 30, 2023, Evergy, Evergy Kansas Central and Evergy Metro recorded pension settlement charges (credits) of ($17.9) million, $0.6 million and ($18.5) million, respectively. These settlement charges were the result of accelerated distributions as a result of employee retirements for certain plan participants. Evergy, Evergy Kansas Central and Evergy Metro deferred substantially all of the charges to regulatory assets or regulatory liabilities and expect to recover these amounts over future periods pursuant to regulatory agreements. For the three months ended and year to date June 30, 2022, Evergy, Evergy Kansas Central and Evergy Metro recorded no pension settlement charges.

The following tables provide the components of net periodic benefit costs prior to the effects of capitalization and sharing with joint owners of power plants.


	Pension Benefits						Post-Retirement Benefits
Three Months Ended June 30, 2023	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	12.0	$	5.0	$	7.0	$	0.5	$	0.3	$	0.2
Interest cost	23.0		11.8		10.9		2.8		1.3		1.4
Expected return on plan assets	(22.1)		(11.2)		(10.9)		(3.0)		(1.5)		(1.4)
Prior service cost	0.5		0.5		—		—		—		(0.1)

Recognized net actuarial (gain) loss	(3.9)		0.1		(3.8)		(1.1)		(0.5)		(0.5)
Settlement charges (credits)	(2.0)		0.2		(2.2)		—		—		—
Net periodic benefit costs before regulatory adjustment and intercompany allocations	7.5		6.4		1.0		(0.8)		(0.4)		(0.4)
Regulatory adjustment	22.0		6.9		15.1		(0.2)		(0.6)		0.4
Intercompany allocations	—		(0.6)		(0.3)		—		—		—
Net periodic benefit costs (income)	$	29.5	$	12.7	$	15.8	$	(1.0)	$	(1.0)	$	—


	Pension Benefits						Post-Retirement Benefits
Year to Date June 30, 2023	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	23.2	$	9.6	$	13.6	$	0.9	$	0.5	$	0.4
Interest cost	45.4		23.2		21.7		5.6		2.7		2.7
Expected return on plan assets	(43.9)		(22.2)		(21.7)		(6.0)		(3.0)		(2.8)
Prior service cost	1.0		1.0		—		—		—		(0.2)
Recognized net actuarial gain	(9.5)		(0.7)		(8.4)		(2.1)		(1.0)		(1.0)
Settlement charges (credits)	(17.9)		0.6		(18.5)		—		—		—
Net periodic benefit costs before regulatory adjustment and intercompany allocations	(1.7)		11.5		(13.3)		(1.6)		(0.8)		(0.9)
Regulatory adjustment	55.5		14.3		41.0		(0.3)		(1.2)		1.0
Intercompany allocations	—		(1.1)		(0.5)		—		0.1		—
Net periodic benefit costs (income)	$	53.8	$	24.7	$	27.2	$	(1.9)	$	(1.9)	$	0.1

Pension Benefits Post-Retirement Benefits
Three Months Ended June 30, 2018 Evergy Westar Energy
KCP&L^(a)
Evergy Westar Energy
KCP&L^(a)
Components of net periodic benefit costs (millions)
Service cost $ 12.2
$ 8.1
$ 9.1
$ 0.5
$ 0.3
$ 0.4
Interest cost 17.2
12.7
9.4
1.7
1.3
0.8
Expected return on plan assets (18.3 ) (14.0 ) (10.6 ) (2.0 ) (1.7 ) (0.5 )
Amortization of unrecognized:
Prior service cost 0.1
0.1
0.1
0.1
0.1
—
Recognized net actuarial (gain)/loss 8.1
8.1
8.4
(0.2 ) (0.2 ) —
Net periodic benefit costs before regulatory adjustment 19.3
15.0
16.4
0.1
(0.2 ) 0.7
Regulatory adjustment 3.0
2.8
0.7
(0.5 ) (0.5 ) (0.2 )
Net periodic benefit costs $ 22.3
$ 17.8
$ 17.1
$ (0.4 ) $ (0.7 ) $ 0.5
^(a)KCP&L amounts are included in consolidated Evergy from the date of the closing of the merger, June 4, 2018 through June 30, 2018.

Pension Benefits Post-Retirement Benefits
Year to Date June 30, 2018 Evergy Westar Energy
KCP&L^(a)
Evergy Westar Energy
KCP&L^(a)
Components of net periodic benefit costs (millions)
Service cost $ 20.2
$ 16.1
$ 18.3
$ 0.8
$ 0.6
$ 0.7
Interest cost 29.9
25.4
18.9
2.9
2.5
1.7
Expected return on plan assets (32.3 ) (28.0 ) (21.1 ) (3.7 ) (3.4 ) (1.0 )
Amortization of unrecognized:
Prior service cost 0.3
0.3
0.2
0.2
0.2
—
Recognized net actuarial (gain)/loss 16.3
16.3
16.7
(0.3 ) (0.3 ) (0.1 )
Net periodic benefit costs before regulatory adjustment 34.4
30.1
33.0
(0.1 ) (0.4 ) 1.3
Regulatory adjustment 5.8
5.6
1.4
(0.9 ) (0.9 ) (0.3 )
Net periodic benefit costs $ 40.2
$ 35.7
$ 34.4
$ (1.0 ) $ (1.3 ) $ 1.0

^(a)~~KCP&L amounts are included in consolidated Evergy from the date of the closing of the merger, June 4, 2018 through June 30, 2018.~~

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	Pension Benefits						Post-Retirement Benefits
Three Months Ended June 30, 2022	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	20.0	$	7.7	$	12.3	$	0.7	$	0.4	$	0.3
Interest cost	19.8		9.7		10.0		2.0		1.0		0.9
Expected return on plan assets	(26.0)		(12.8)		(14.1)		(2.6)		(1.6)		(1.0)
Prior service cost	0.4		0.5		—		0.1		0.1		(0.3)
Recognized net actuarial loss	8.8		6.4		9.6		—		—		—

Net periodic benefit costs before regulatory adjustment and intercompany allocations	23.0		11.5		17.8		0.2		(0.1)		(0.1)
Regulatory adjustment	15.0		2.8		5.7		(0.6)		(0.7)		0.7
Intercompany allocations	—		(0.1)		(3.9)		—		—		(0.2)
Net periodic benefit costs (income)	$	38.0	$	14.2	$	19.6	$	(0.4)	$	(0.8)	$	0.4


																				Pension Benefits						Post-Retirement Benefits
	Pension Benefits									Post-Retirement Benefits
Three Months Ended June 30, 2017	Evergy			Westar Energy			KCP&L^(a)			Evergy			Westar Energy			KCP&L^(a)
Year to Date June 30, 2022																			Year to Date June 30, 2022	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)																		Components of net periodic benefit costs	(millions)
Service cost	$	7.2		$	7.2		$	8.1		$	0.3		$	0.3		$	0.4		Service cost	$	39.9	$	15.4	$	24.5	$	1.5	$	0.8	$	0.7
Interest cost	13.1			13.1			9.8			1.4			1.4			1.0			Interest cost	39.6		19.4		19.9		4.0		2.0		1.9
Expected return on plan assets	(13.4		)	(13.4		)	(9.5		)	(1.7		)	(1.7		)	(0.4		)	Expected return on plan assets	(52.0)		(25.6)		(28.2)		(5.1)		(3.2)		(1.9)
Amortization of unrecognized:
Prior service cost	0.2			0.2			0.1			0.1			0.1			—			Prior service cost	0.9		1.0		—		0.2		0.2		(0.7)
Recognized net actuarial (gain)/loss	6.7			6.7			8.9			(0.2		)	(0.2		)	(0.1		)	Recognized net actuarial (gain)/loss	17.5		12.8		19.3		(0.1)		(0.1)		(0.2)
Net periodic benefit costs before regulatory adjustment	13.8			13.8			17.4			(0.1		)	(0.1		)	0.9

Net periodic benefit costs before regulatory adjustment and intercompany allocations																			Net periodic benefit costs before regulatory adjustment and intercompany allocations	45.9		23.0		35.5		0.5		(0.3)		(0.2)
Regulatory adjustment	3.5			3.5			2.2			(0.5		)	(0.5		)	0.4			Regulatory adjustment	30.9		5.7		12.2		(1.2)		(1.4)		1.3
Net periodic benefit costs	$	17.3		$	17.3		$	19.6		$	(0.6	)	$	(0.6	)	$	1.3
^(a)KCP&L amounts are not included in consolidated Evergy for the three months ended and year to date June 30, 2017.

	Pension Benefits									Post-Retirement Benefits
Year to Date June 30, 2017	Evergy			Westar Energy			KCP&L^(a)			Evergy			Westar Energy			KCP&L^(a)
Components of net periodic benefit costs	(millions)
Service cost	$	14.3		$	14.3		$	16.3		$	0.6		$	0.6		$	0.7
Interest cost	26.2			26.2			19.6			2.8			2.8			1.9
Expected return on plan assets	(26.8		)	(26.8		)	(19.1		)	(3.4		)	(3.4		)	(0.9		)
Amortization of unrecognized:
Prior service cost	0.4			0.4			0.2			0.2			0.2			—
Recognized net actuarial (gain)/loss	13.5			13.5			17.8			(0.4		)	(0.4		)	(0.2		)
Net periodic benefit costs before regulatory adjustment	27.6			27.6			34.8			(0.2		)	(0.2		)	1.5
Regulatory adjustment	7.0			7.0			4.1			(1.0		)	(1.0		)	1.0
Net periodic benefit costs	$	34.6		$	34.6		$	38.9		$	(1.2	)	$	(1.2	)	$	2.5
Intercompany allocations																			Intercompany allocations	—		0.4		(8.4)		—		0.1		(0.3)
Net periodic benefit costs (income)																			Net periodic benefit costs (income)	$	76.8	$	29.1	$	39.3	$	(0.7)	$	(1.6)	$	0.8

^(a)~~KCP&L amounts are not included in consolidated Evergy for the three months ended and year to date June 30, 2017.~~

The components of net periodic benefit costs other than the service cost component are included in other expense on the Evergy Companies' consolidated statements of income and comprehensive income.

Year to date June 30, ~~2018,~~2023, Evergy, Evergy Kansas Central and ~~Westar Energy~~Evergy Metro made pension contributions of ~~$25.0~~$27.0 million, $17.7 million and ~~KCP&L made pension contributions of $13.7 million.~~$9.3 million, respectively. Evergy, ~~expects~~Evergy Kansas Central and Evergy Metro do not expect to make additional pension contributions in 2023.

Year to date June 30, 2023, Evergy, Evergy Kansas Central and Evergy Metro made post-retirement benefit contributions of ~~$88.8~~$0.4 million, ~~in 2018 to satisfy the Employee Retirement Income Security Act of 1974, as amended (ERISA) funding requirements~~$0.2 million and ~~KCC~~$0.2 million, respectively. Evergy, Evergy Kansas Central and ~~MPSC rate orders, of which $17.4 million is expected to be paid by Westar Energy and $71.4 million is expected to be paid by KCP&L. Also in 2018,~~ Evergy ~~and KCP&L~~Metro expect to make additional contributions in 2023 of ~~$4.6~~$1.3 million, $0.3 million and $1.0 million, respectively, to the post-retirement benefit plans.

~~8. EQUITY COMPENSATION~~

Upon the consummation of the merger, Evergy assumed both Westar Energy's Long-Term Incentive and Share Award plan (LTISA) and Great Plains Energy's Amended Long-Term Incentive Plan, which was renamed the Evergy, Inc. Long-Term Incentive Plan. All outstanding share-based payment awards under Westar Energy's LTISA vested at the closing of the merger transaction and were converted into a right to receive Evergy common stock with the exception of certain restricted share units (RSU) issued prior to the closing of the merger to certain officers and employees of Westar Energy. The vesting of these shares resulted in the recognition of $14.6 million of compensation expense in Evergy's and Westar Energy's consolidated statements of income for the three months ended and year to date June 30, 2018.

~~Table of Contents~~

All of Great Plains Energy's outstanding performance shares, restricted stock, restricted share units and director deferred share units under Great Plains Energy's Amended Long-Term Incentive Plan were converted into equivalent Evergy performance shares, restricted stock, restricted share units and director deferred share units at Great Plains Energy's merger exchange ratio of 0.5981. The estimated fair value of these converted awards that was allocated to the purchase price was $12.5 million, after-tax. See Note 2 for more information regarding the merger.

~~The following table summarizes the Evergy Companies' equity compensation expense and the associated income tax benefit.~~

Three Months Ended
June 30 Year to Date
June 30

2018 2017 2018 2017
Evergy (millions)
Equity compensation expense $ 19.3
$ 2.1
$ 21.7
$ 4.6
Income tax benefit 2.9
0.8
3.4
1.8
Westar Energy
Equity compensation expense $ 18.2
$ 2.1
$ 20.6
$ 4.6
Income tax benefit 2.6
0.8
3.1
1.8
KCP&L^(a)

Equity compensation expense $ 2.0
$ 0.9
$ 3.2
$ 1.7
Income tax benefit 0.4
0.4
0.6
0.8

^(a)~~KCP&L amounts are only included in consolidated Evergy from the date of the closing of the merger, June 4, 2018 through June 30, 2018.~~

~~Performance Shares~~

The vesting of performance shares is contingent upon achievement of specific performance goals over a stated period of time as approved by the Compensation and Leadership Development Committee of Evergy's Board of Directors. The number of performance shares ultimately vested can vary from the number of shares initially granted depending on either Great Plains Energy's performance prior to the closing of the merger transaction or Evergy's performance based on the stated performance period of the awards. Compensation expense for performance shares is calculated by recognizing the portion of the grant date fair value for each reporting period for which the requisite service has been rendered. Dividends are accrued over the vesting period and paid in cash based on the number of performance shares ultimately paid.

The fair value of the converted Great Plains Energy performance share awards was estimated using the market value of Westar Energy's and Great Plains Energy's common stock at the valuation date and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected volatilities, dividend yield and risk-free rates. Expected volatility is based on daily stock price change based on historical common stock information during a historical period commensurate with the remaining term of the performance period of the grant. The risk-free rate is based upon the rate at the time of the evaluation for zero-coupon government bonds with a maturity consistent with the remaining performance period of the grant. The dividend yield is based on the most recent dividends paid by Westar Energy, as Evergy's stock price assumes Westar Energy's stock price on a forward basis, and the grant date stock price on the valuation date. For the Great Plains Energy performance shares converted into Evergy awards upon the closing of the merger, inputs for expected volatility, dividend yield, and risk-free rates were 16.6% - 18.5% , 2.96% and 1.8% - 2.6%, respectively. Evergy and Westar Energy did not have any performance share awards issued and outstanding prior to the close of the merger.

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~~Performance share activity for year to date June 30, 2018 is summarized in the following table.~~

Performance
Shares

Grant Date
Fair Value*
Beginning balance January 1, 2018 —
$ —

Converted Great Plains Energy awards upon merger 351,708
63.79

Ending balance June 30, 2018 351,708
63.79

* weighted-average

~~At June 30, 2018, the remaining weighted-average contractual term was 1.5 years. The weighted-average grant-date fair value of shares granted was $63.79for the three months ended andyear to date June 30, 2018. At~~ ~~June 30, 2018, there was~~ ~~$12.8 million~~ of total unrecognized compensation expense, net of forfeiture rates, related to converted Great Plains Energy performance shares granted under its Amended Long-Term Incentive Plan, which will be recognized over the remaining weighted-average contractual term.

~~Restricted Stock~~

Restricted stock cannot be sold or otherwise transferred by the recipient prior to vesting and has a value equal to the fair market value of the shares on the issue date. Restricted stock shares vest over a stated period of time with accruing reinvested dividends subject to the same restrictions. Compensation expense, calculated by multiplying shares by the grant-date fair value related to restricted stock, is recognized on a straight-line basis over the requisite service period of the award. Evergy and Westar Energy did not have any restricted stock awards issued and outstanding prior to the close of the merger.

~~Restricted stock activity for year to date June 30, 2018 is summarized in the following table.~~

Nonvested
Restricted Stock

Grant Date
Fair Value*
Beginning balance January 1, 2018 —
$ —

Converted Great Plains Energy awards upon merger 122,505
54.05

Vested (1,316 ) 54.50

Ending balance June 30, 2018 121,189
54.04

* weighted-average

At ~~June 30, 2018~~, the remaining weighted-average contractual term was 1.7 years. The weighted-average grant-date fair value of shares granted was $54.05 for the three months ended and year to date June 30, 2018. At ~~June 30, 2018, there was~~ ~~$3.7 million~~ of total unrecognized compensation expense, net of forfeiture rates, related to converted Great Plains Energy restricted stock granted under its Amended Long-Term Incentive Plan, which will be recognized over the remaining weighted-average contractual term.

~~Restricted Share Units~~

Evergy and Westar Energy have historically used RSUs for their stock-based compensation awards. RSU awards are grants that entitle the holder to receive shares of common stock as the awards vest. These RSU awards are defined as nonvested shares and do not include restrictions once the awards have vested. These RSUs have either taken the form of RSUs with only service requirements that vest solely upon the passage of time or RSUs with performance measures that vest upon expiration of the award term. All issued and outstanding Evergy and Westar Energy RSU awards with performance measures vested in connection with the closing of the merger transaction in June 2018.

Evergy measures the fair value of RSUs with only service requirements based on the fair market value of the underlying common stock as of the grant date. RSU awards with only service conditions recognize compensation expense by multiplying shares by the grant-date fair value related to the RSU and recognizing it on a straight-line basis over the requisite service period for the entire award, including for those RSUs that have a graded vesting schedule. Nonforfeitable dividend equivalents, or the rights to receive cash equal to the value of dividends paid on

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~~Evergy's common stock, are paid on these RSUs during the vesting period. Nonforfeitable dividends equivalents are recorded directly to retained earnings.~~

~~RSU activity for awards with only service requirements for year to date June 30, 2018 is summarized in the following table.~~

Nonvested
Restricted Share Units

Grant Date
Fair Value*
Beginning balance January 1, 2018 255,964
$ 46.09

Granted 222,465
52.16

Converted Great Plains Energy awards upon merger 82,331
53.77

Vested (342,599 ) 46.81

Forfeited (704 ) 49.73

Ending balance June 30, 2018 217,457
54.07

* weighted-average

At June 30, 2018, the remaining weighted-average contractual term related to RSU awards with only service requirements was 1.9 years. The weighted-average grant-date fair value of RSUs granted with only service requirements was $54.07 for the three months ended June 30, 2018. There were no RSUs granted for the three months ended June 30, 2017. The weighted-average grant-date fair value of RSUs granted with only service requirements was $52.16 and $53.25 year to date June 30, 2018, and 2017, respectively. At June 30, 2018, there was $11.2 million of unrecognized compensation expense related to unvested RSUs. The total fair value of RSUs with only service requirements that vested for the three months ended and year to date June 30, 2018 was $12.3 million and $16.0 million, respectively. The total fair value of RSUs that vested for the three months ended and year to date June 30, 2017 was $0.1 million and $3.6 million, respectively.

9.7. SHORT-TERM BORROWINGS AND SHORT-TERM BANK LINES OF CREDIT

~~The following table summarizes the committed credit facilities available to~~In June 2023, the Evergy Companies extended the expiration date of their $2.5 billion master credit facility from 2026 to 2027. Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West have borrowing capacity under the master credit facility with specific sublimits for each borrower. These sublimits can be unilaterally adjusted by Evergy for each borrower provided the sublimits remain within minimum and maximum sublimits as specified in the facility. The applicable interest rates and commitment fees of ~~June 30, 2018 and December 31, 2017.~~the facility are subject to upward or downward adjustments, within certain limitations, if Evergy achieves, or fails to achieve, certain sustainability-

Amounts Drawn
Credit Facility Commercial Paper Letters of Credit Cash Borrowings Available Borrowings Weighted Average Interest Rate on Short-Term Borrowings
June 30, 2018 (millions)
Evergy, Inc. $ 200.0
n/a $ 1.0
$ 60.0
$ 139.0
3.60%
Westar Energy^(b)
979.3
488.2
18.3
—
472.8
2.40%
KCP&L 600.0
322.4
2.7
—
274.9
2.49%
GMO 450.0
208.7
2.0
—
239.3
2.38%
Evergy $ 2,229.3
$ 1,019.3
$ 24.0
$ 60.0
$ 1,126.0

December 31, 2017
Westar Energy^(b)
$ 979.3
$ 275.7
$ 11.8
$ —
$ 691.8
1.83%
KCP&L^(a)
600.0
167.5
2.7
—
429.8
1.95%
Evergy 979.3
275.7
11.8
—
691.8
1.83%

^(a)~~KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.~~

^(b)~~$20.7 million of Westar Energy's $730.0 million and $270.0 million revolving credit facilities expired in September 2017.~~

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linked targets based on two key performance indicator metrics: (i) Non-Emitting Generation Capacity and (ii) Diverse Supplier Spend (as defined in the facility).

~~Evergy, Inc.'s $200.0 Million Revolving Credit Facility~~

~~Evergy, Inc. assumed the Great Plains Energy~~ ~~$200.0 million~~ revolving credit facility with a group of banks that expires in October 2019 concurrent with the closing of the merger transaction. The facility's terms permit transfers of unused commitments between this facility and the KCP&L and GMO facilities discussed below, with the total amount of the facility not exceeding $400.0 million at any one time. A default by ~~Evergy~~any borrower under the facility or ~~any~~one of its significant subsidiaries on other indebtedness totaling more than ~~$50.0~~$100.0 million isconstitutes a default by that borrower under the facility. Under the terms of this facility, each of Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West is required to maintain a ~~consolidated~~total indebtedness to ~~consolidated~~total capitalization ratio, as defined in the facility, of not greater than 0.65 to 1.00 at all times. At As of June 30, ~~2018~~,2023, Evergy, ~~was~~ Evergy Kansas Central, Evergy Metro and Evergy Missouri West were in compliance with this covenant.

~~Westar Energy's $730.0 Million and $270.0 Million Revolving Credit Facilities and Commercial Paper~~

~~Westar Energy's~~ ~~$730.0 million~~ ~~and~~ ~~$270.0 million~~ ~~revolving~~The following table summarizes the committed credit facilities ~~with~~(excluding receivable sale facilities discussed in Note 3) available to the Evergy Companies as of June 30, 2023 and December 31, 2022.


			Amounts Drawn
	Master Credit Facility		Commercial Paper		Letters of Credit		Cash Borrowings		Available Borrowings		Weighted Average Interest Rate on Short-Term Borrowings
June 30, 2023	(millions)
Evergy, Inc.	$	300.0	$	136.5	$	0.7	$	—	$	162.8	5.30%
Evergy Kansas Central	1,000.0		813.8		1.0		—		185.2		5.43%
Evergy Metro	500.0		311.5		—		—		188.5		5.32%
Evergy Missouri West	700.0		609.3		—		—		90.7		5.40%
Evergy	$	2,500.0	$	1,871.1	$	1.7	$	—	$	627.2

December 31, 2022
Evergy, Inc.	$	450.0	$	—	$	0.7	$	—	$	449.3	—%
Evergy Kansas Central	1,000.0		772.1		—		—		227.9		4.91%
Evergy Metro	350.0		111.0		—		—		239.0		5.02%
Evergy Missouri West	700.0		449.2		—		—		250.8		4.84%
Evergy	$	2,500.0	$	1,332.3	$	0.7	$	—	$	1,167.0

In February 2023, Evergy, Inc. amended a ~~group~~$500.0 million unsecured Term Loan Credit Agreement (Term Loan Facility) that originally expired in February 2023 to extend the expiration date to February 2024. As a result of ~~banks provides support for~~the amendment, Evergy, Inc. demonstrated its ~~issuance~~intent and ability to refinance the Term Loan Facility and reflected this $500.0 million borrowing within long-term debt, net, on Evergy's consolidated balance sheet as of December 31, 2022. As of June 30, 2023, Evergy had borrowed $500.0 million under the Term Loan Facility that is reflected within notes payable and commercial paper and other general corporate purposes and expire in September 2019 and February 2019, respectively. In September 2017, $20.7 million of the $730.0 million revolving credit facility expired. The aggregate amount ofon Evergy's consolidated balance sheet. Evergy's borrowings under the ~~$730.0 million~~Term Loan Facility were used for, among other things, working capital, capital expenditures and ~~$270.0 million facilities may be increased to $1.0 billion and $400.0 million, respectively, subject to lender participation and no default on the facilities. All~~general corporate purposes.

The weighted average interest rate for borrowings under the ~~facilities are secured by KGE first mortgage bonds. A default by Westar Energy or KGE on other indebtedness totaling more than $25.0 million is a default under~~Term Loan Facility as of June 30, 2023, was 6.23%. The Term Loan Facility contains customary covenants, including one that sets the ~~facilities. Under the terms~~ratio of ~~these facilities, Westar Energy is required to maintain a consolidated~~maximum allowed total indebtedness to ~~consolidated~~total capitalization ~~ratio as defined in the facilities,~~of not greater than 0.65 to 1.00, ~~at all times. At June 30, 2018, Westar Energy was~~ ~~in compliance~~ ~~with this covenant.~~

~~KCP&L's~~for Evergy and ~~GMO's $600.0 Million and $450.0 Million Credit Facilities and Commercial Paper~~

~~KCP&L's~~ ~~$600.0 million~~ revolving credit facility and GMO's $450.0 million revolving credit facility with a group of banks provides support for their issuance of commercial paper and other general corporate purposes and expire in ~~October 2019. KCP&L and GMO may each transfer up to $200.0 million of unused commitments between Evergy's facility and KCP&L's and GMO's facilities. A default by KCP&L or GMO~~its subsidiaries on ~~other indebtedness totaling more than $50.0 million is a default under the facilities. Under the terms of these facilities, KCP&L and GMO are required to maintain~~ a consolidated ~~indebtedness to consolidated capitalization ratio, as defined in the facilities, not greater than 0.65 to 1.00 at all times. At~~ ~~June 30, 2018, KCP&L and GMO were~~ ~~in compliance~~ ~~with these covenants.~~

~~10. LONG-TERM DEBT~~

basis. As of June 30, 2018, Evergy's outstanding long-term debt, including current maturities, includes approximately $3,771 million related to KCP&L, GMO and the assumed long-term debt of Great Plains Energy discussed further below. This amount also includes approximately $161 million of fair value adjustments recorded2023, Evergy was in ~~connection~~compliance with purchase accounting for the merger transaction, which are not part of future principal payments and will amortize over the remaining life of the associated debt instruments. See Note 2 for more information regarding the merger transaction. The series of long-term debt obligations originally issued by Great Plains Energy and assumed by Evergy, Inc. as part of the merger transaction were:this covenant.

~~$350.0 million of 4.85% unsecured Senior Notes; and~~

~~$287.5 million of 5.292% unsecured Senior Notes.~~8. LONG-TERM DEBT

~~KCP&L Senior Notes~~Mortgage Bonds

In March ~~2018, KCP&L~~2023, Evergy Kansas Central issued, at a discount, $400.0 million of 5.70% First Mortgage Bonds (FMBs), maturing in 2053. The proceeds of the issuance were used to repay commercial paper borrowings and for general corporate purposes.

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In April 2023, Evergy Metro issued, at a discount, $300.0 million of ~~4.20% unsecured~~4.95% Mortgage Bonds, maturing April 2033. The proceeds of the issuance were used to repay Evergy Metro's commercial paper borrowings which were incurred to repay the $300.0 million principal amount of Evergy Metro's 3.15% Senior Notes ~~maturing~~that matured in ~~2048. KCP&L also~~March 2023.

In May 2023, Evergy Kansas South repaid its ~~$350.0~~$50.0 million of ~~6.375% unsecured~~6.15% FMBs at maturity.

Senior Notes

In March 2023, Evergy Metro repaid its $300.0 million of 3.15% Senior Notes at ~~maturity~~maturity.

9. DERIVATIVE INSTRUMENTS

The Evergy Companies engage in ~~March 2018.~~the wholesale and retail sale of electricity as part of their regulated electric operations, in addition to limited non-regulated energy marketing activities. These activities expose the Evergy Companies to market risks associated with the price of electricity, natural gas and other energy-related products. Management has established risk management policies and strategies to reduce the potentially adverse effects that the volatility of the markets may have on the Evergy Companies' operating results. The Evergy Companies' commodity risk management activities, which are subject to the management, direction and control of an internal risk management committee, utilize derivative instruments to reduce the effects of fluctuations in wholesale sales and fuel and purchased power expense caused by commodity price volatility.

~~KCP&L EIRR Bond Remarketing~~The Evergy Companies are also exposed to market risks arising from changes in interest rates and may use derivative instruments to manage these risks. The Evergy Companies' interest rate risk management activities have included using derivative instruments to hedge against future interest rate fluctuations on anticipated debt issuances.

~~In July 2018, KCP&L remarketed its unsecured Series 2008 Environmental Improvement Revenue Refunding (EIRR) bonds maturing~~The Evergy Companies also engage in ~~2038 totaling $23.4 million~~non-regulated energy marketing activity for trading purposes, primarily at Evergy Kansas Central, which focuses on seizing market opportunities to create value driven by expected changes in the market prices of commodities, primarily electricity and natural gas.

The Evergy Companies consider various qualitative factors, such as contract and marketplace attributes, in designating derivative instruments at inception. The Evergy Companies may elect the normal purchases and normal sales (NPNS) exception, which requires the effects of the derivative to be recorded when the underlying contract settles under accrual accounting. The Evergy Companies account for derivative instruments that are not designated as NPNS primarily as either economic hedges or trading contracts (non-hedging derivatives) which are recorded as assets or liabilities on the consolidated balance sheets at fair value. See Note 10 for additional information on the Evergy Companies' methods for assessing the fair value of derivative instruments. Changes in the fair value of non-hedging derivatives that are related to the Evergy Companies' regulated operations are deferred to a ~~fixed~~regulatory asset or regulatory liability when determined to be probable of future recovery or refund from customers. Recovery of the actual costs incurred by regulated activities will not impact earnings but will impact cash flows due to the timing of the recovery mechanism. Cash flows for all derivative instruments are classified as operating activities on the Evergy Companies' statements of cash flows, with the exception of cash flows for interest rate swap agreements accounted for as cash flows hedges of ~~2.75% through June 30, 2022.~~forecasted debt transactions, which are recorded as financing activities. Changes in the fair value of non-hedging derivatives that are not related to the Evergy Companies' regulated operations are recorded in operating revenues on the Evergy Companies' statements of income and comprehensive income.

The Evergy Companies offset fair value amounts recognized for derivative instruments under master netting arrangements, which include rights to reclaim cash collateral (a receivable), or the obligation to return cash collateral (a payable).

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The gross notional contract amount by commodity type for derivative instruments is summarized in the following table.

~~GMO Senior Notes~~

June 30

December 31

Non-hedging derivatives

Notional volume unit of measure

2023

2022

Evergy

(millions)

Commodity contracts

Power

MWhs

111.8

67.2

Natural gas

MMBtu

304.3

772.7

Evergy Kansas Central

Commodity contracts

Power

MWhs

66.1

41.6

Natural gas

MMBtu

298.1

769.6

Evergy Metro

Commodity contracts

Power

MWhs

33.9

18.2

~~As a result~~The fair values of Evergy's open derivative positions and balance sheet classifications are summarized in the following tables. The fair values below are gross values before netting agreements and netting of cash collateral.


		June 30		December 31

Evergy		2023		2022
Non-hedging derivatives	Balance sheet location
Commodity contracts		(millions)
Power	Other assets - current	$	31.3	$	41.6
	Other assets - long-term	37.3		65.6
Natural gas	Other assets - current	38.0		221.0
	Other assets - long-term	2.0		1.6
Total derivative assets		$	108.6	$	329.8
Commodity contracts
Power	Other liabilities - current	$	16.8	$	41.0
	Other liabilities - long-term	34.1		61.5
Natural gas	Other liabilities - current	35.7		218.8
	Other liabilities - long-term	2.1		1.6
Total derivative liabilities		$	88.7	$	322.9


		June 30		December 31

Evergy Kansas Central		2023		2022
Non-hedging derivatives	Balance sheet location
Commodity contracts		(millions)
Power	Other assets - current	$	24.1	$	36.7
	Other assets - long-term	37.3		65.6
Natural gas	Other assets - current	38.0		221.0
	Other assets - long-term	2.0		1.6
Total derivative assets		$	101.4	$	324.9
Commodity contracts
Power	Other liabilities - current	$	14.9	$	35.6
	Other liabilities - long-term	34.1		61.5
Natural gas	Other liabilities - current	33.9		215.1
	Other liabilities - long-term	2.1		1.6
Total derivative liabilities		$	85.0	$	313.8

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		June 30		December 31

Evergy Metro		2023		2022
Non-hedging derivatives	Balance sheet location
Commodity contracts		(millions)
Power	Other assets - current	$	2.2	$	3.5



Total derivative assets		$	2.2	$	3.5
Commodity contracts
Power	Other liabilities - current	$	1.1	$	4.1



Total derivative liabilities		$	1.1	$	4.1

The following tables presentthe line items on the Evergy Companies' consolidated balance sheets where derivative assets and liabilities are reported. The gross amounts offset in the tables below show the effect of master netting arrangements and include collateral posted to offset the net position.


June 30, 2023	Evergy		Evergy Kansas Central		Evergy Metro
Derivative Assets	(millions)
Current
Gross amounts recognized	$	69.3	$	62.1	$	2.2
Gross amounts offset	(44.0)		(42.4)		(1.1)
Net amounts presented in other assets - current	$	25.3	$	19.7	$	1.1
Long-Term
Gross amounts recognized	$	39.3	$	39.3	$	—
Gross amounts offset	(14.8)		(14.8)		—
Net amounts presented in other assets - long-term	$	24.5	$	24.5	$	—
Derivative Liabilities
Current
Gross amounts recognized	$	52.5	$	48.8	$	1.1
Gross amounts offset	(42.2)		(40.5)		(1.1)
Net amounts presented in other liabilities - current	$	10.3	$	8.3	$	—
Long-Term
Gross amounts recognized	$	36.2	$	36.2	$	—
Gross amounts offset	(6.1)		(6.1)		—
Net amounts presented in other liabilities - long-term	$	30.1	$	30.1	$	—

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December 31, 2022	Evergy		Evergy Kansas Central		Evergy Metro

Derivative Assets	(millions)
Current
Gross amounts recognized	$	262.6	$	257.7	$	3.5
Gross amounts offset	(237.4)		(232.9)		(3.5)
Net amounts presented in other assets - current	$	25.2	$	24.8	$	—
Long-Term
Gross amounts recognized	$	67.2	$	67.2	$	—
Gross amounts offset	(42.1)		(42.1)		—
Net amounts presented in other assets - long-term	$	25.1	$	25.1	$	—
Derivative Liabilities
Current
Gross amounts recognized	$	259.8	$	250.7	$	4.1
Gross amounts offset	(234.0)		(229.4)		(3.5)
Net amounts presented in other liabilities - current	$	25.8	$	21.3	$	0.6
Long-Term
Gross amounts recognized	$	63.1	$	63.1	$	—
Gross amounts offset	(36.4)		(36.4)		—
Net amounts presented in other liabilities - long-term	$	26.7	$	26.7	$	—

The following table summarizes the amounts of gain (loss) recognized in income for the change in fair value of derivatives not designated as hedging instruments for the Evergy Companies.


		Three Months Ended June 30				Year to Date June 30

Location of gain (loss)	Contract type	2023		2022		2023		2022
Evergy		(millions)
Operating revenues	Commodity	$	2.7	$	19.3	$	17.6	$	27.2
Total		$	2.7	$	19.3	$	17.6	$	27.2
Evergy Kansas Central
Operating revenues	Commodity	$	2.7	$	19.3	$	17.6	$	27.2
Total		$	2.7	$	19.3	$	17.6	$	27.2

Credit risk of the ~~consummation~~Evergy Companies' derivative instruments relates to the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. The Evergy Companies maintain credit policies and employ credit risk mitigation, such as collateral requirements or letters of credit, when necessary to minimize their overall credit risk and monitor exposure. Substantially all of the ~~merger transaction, a change in control provision in GMO's Series A, B and C Senior Notes was triggered that allowed holders a one-time option~~Evergy Companies' counterparty credit risk associated with derivative instruments relates to ~~elect for early repayment~~Evergy Kansas Central's non-regulated energy marketing activities. As of ~~their notes at par value, plus accrued interest. The window to elect this option expired prior to~~ June 30, ~~2018. Several holders~~2023, if counterparty groups completely failed to perform on contracts, Evergy's and Evergy Kansas Central's maximum exposure related to derivative assets was $41.6 million. As of ~~GMO's Series A~~June 30, 2023, the potential loss after the consideration of applicable master netting arrangements and ~~B Senior Notes elected this option~~collateral received for Evergy and inEvergy Kansas Central was $29.4 million.

Certain of the ~~third quarter~~Evergy Companies' derivative instruments contain collateral provisions that are tied to the Evergy Companies' credit ratings and may require the posting of ~~2018, GMO redeemed $89.0 million~~collateral for various reasons, including if the Evergy Companies' credit ratings were to fall below investment grade. Substantially all of ~~its Series A Senior Notes and $15.0 million~~these derivative instruments relate to Evergy Kansas Central's non-regulated energy marketing activities. The aggregate fair value of ~~its Series B Senior Notes. The $104.0 million aggregate principal amount of Series A and Series B Senior Notes~~all derivative instruments with credit-risk-related contingent features that were ~~redeemed~~ in ~~the third quarter of 2018 are classified within current maturities of long-term debt on Evergy's consolidated balance sheet~~a liability position as of June 30, ~~2018.~~2023, was $34.9 million for which Evergy and Evergy Kansas Central have posted collateral of $1.1 million in the normal course of business. If the credit-risk-related contingent features underlying these agreements were triggered

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~~11.~~as of June 30, 2023, Evergy and Evergy Kansas Central could be required to post an additional $32.8 million of collateral to their counterparties.

10. FAIR VALUE MEASUREMENTS

Values of Financial Instruments

GAAP establishes a hierarchical framework for disclosing the transparency of the inputs utilized in measuring assets and liabilities at fair value. Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy levels. In addition, the Evergy Companies measure certain investments that do not have a readily determinable fair value at 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 ~~include~~included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on public ~~exchanges.~~exchanges or exchange-traded derivative instruments.

Level 2 – Pricing inputs are not quoted prices in active markets but are either directly or indirectly observable. The types of assets and liabilities included in Level 2 are certain marketable debt securities, financial instruments traded in less than active markets, ~~or other financial~~non-exchange traded derivative instruments ~~priced~~ with ~~models using highly~~ observable ~~inputs.~~forward curves and options contracts.

Level 3 – Significant inputs to pricing have little or no transparency. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation. The types of assets and liabilities included in Level 3 are non-exchange traded derivative instruments for which observable market data is not available to corroborate the valuation inputs and transmission congestion rights (TCRs) in the SPP Integrated Marketplace.

NAV - Investments that do not have a readily determinable fair value are measured at NAV. These investments do not consider the observability of inputs and, therefore, they are not included within the fair value hierarchy. The Evergy Companies include in this category investments in private equity, real estate and alternative investment funds that do not have a readily determinable fair value. The underlying alternative investments include collateralized debt obligations, mezzanine debt and a variety of other investments.

The Evergy Companies record cash and cash equivalents, accounts receivable and short-term borrowings on their consolidated balance sheets at cost, which approximates fair value due to the short-term nature of these instruments.

~~Table~~Fair Value of ~~Contents~~

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.



	June 30, 2023				December 31, 2022
	Book Value		Fair Value		Book Value		Fair Value
Long-term debt(a)	(millions)
Evergy(b)	$	10,186.5	$	9,079.6	$	10,344.8	$	9,160.0
Evergy Kansas Central	4,281.7		3,770.9		3,936.9		3,389.4
Evergy Metro	2,924.9		2,686.7		2,926.6		2,661.7

June 30, 2018 December 31, 2017
Book Value Fair Value Book Value Fair Value
Long-term debt (millions)
Evergy^(a)
$ 7,460.4
$ 7,567.3
$ 3,687.6
$ 4,010.6
Westar Energy 3,689.0
3,804.7
3,687.6
4,010.6
KCP&L^(b)
2,529.8
2,651.4
2,582.2
2,799.1
Long-term debt of variable interest entities
Evergy $ 81.4
$ 80.9
$ 109.9
$ 110.8
Westar Energy 81.4
80.9
109.9
110.8
(a) Includes current maturities.

^(a)(b) Book value as of June 30, ~~2018~~2023 and December 31, 2022, includes ~~approximately $161~~$89.6 million and $92.1 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy and ~~Westar Energy~~Evergy Kansas Central merger, which are not part of future principal payments and will amortize over the remaining life of the associated debt instrument. ~~See Note 2 for more information regarding the merger transaction.~~

^(b)~~KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.~~

Table of Contents

Recurring Fair Value Measurements

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


Description															Description	June 30, 2023			Netting		Level 1		Level 2			Level 3			NAV
Evergy Kansas Central															Evergy Kansas Central		(millions)
Assets															Assets

Description	June 30 2018			Level 1		Level 2			Level 3			NAV
Westar Energy		(millions)
Assets

Nuclear decommissioning trust^(a)															Nuclear decommissioning trust(a)
Domestic equity funds		$	74.6	$	69.3		$	—		$	—		$	5.3	Domestic equity funds		$	127.4	$	—	$	116.6		$	—		$	—		$	10.8
International equity funds		42.2		42.2			—			—			—		International equity funds		67.8		—		67.8			—			—			—
Core bond fund		36.6		36.6			—			—			—		Core bond fund		52.6		—		52.6			—			—			—
High-yield bond fund		19.6		19.6			—			—			—		High-yield bond fund		26.9		—		26.9			—			—			—
Emerging markets bond fund		15.5		15.5			—			—			—		Emerging markets bond fund		17.1		—		17.1			—			—			—
Combination debt/equity/other fund		14.0		14.0			—			—			—

Alternative investments fund		23.2		—			—			—			23.2		Alternative investments fund		33.1		—		—			—			—			33.1
Real estate securities fund		11.3		—			—			—			11.3		Real estate securities fund		17.7		—		—			—			—			17.7
Cash equivalents		0.1		0.1			—			—			—		Cash equivalents		0.6		—		0.6			—			—			—

Total nuclear decommissioning trust		237.1		197.3			—			—			39.8		Total nuclear decommissioning trust		343.2		—		281.6			—			—			61.6
Rabbi trust															Rabbi trust
Core bond fund		25.2		—			—			—			25.2
Fixed income funds															Fixed income funds		14.9		—		14.9			—			—			—
Equity funds															Equity funds		7.5		—		7.5			—			—			—
Combination debt/equity/other fund		6.3		—			—			—			6.3		Combination debt/equity/other fund		1.8		—		1.8			—			—			—
Cash equivalents															Cash equivalents		0.2		—		0.2			—			—			—
Total rabbi trust		31.5		—			—			—			31.5		Total rabbi trust		24.4		—		24.4			—			—			—
Total		$	268.6	$	197.3		$	—		$	—		$	71.3
KCP&L
Derivative instruments - commodity contracts(b)															Derivative instruments - commodity contracts(b)
Power															Power		39.1		(22.3)		18.5			31.8			11.1			—
Natural gas															Natural gas		5.1		(34.9)		39.7			0.3			—			—
Total derivative assets															Total derivative assets		44.2		(57.2)		58.2			32.1			11.1			—
Total assets															Total assets		411.8		(57.2)		364.2			32.1			11.1			61.6
Liabilities															Liabilities
Derivative instruments - commodity contracts(b)															Derivative instruments - commodity contracts(b)
Power															Power		37.3		(11.7)		11.5			36.2			1.3			—
Natural gas															Natural gas		1.1		(34.9)		35.7			0.3			—			—
Total derivative liabilities															Total derivative liabilities		38.4		(46.6)		47.2			36.5			1.3			—
Total liabilities															Total liabilities		$	38.4	$	(46.6)	$	47.2		$	36.5		$	1.3		$	—
Evergy Metro															Evergy Metro
Assets															Assets
Nuclear decommissioning trust^(a)															Nuclear decommissioning trust(a)
Equity securities		$	185.2	$	185.2		$	—		$	—		$	—	Equity securities		$	280.0	$	—	$	280.0		$	—		$	—		$	—
Debt securities															Debt securities
U.S. Treasury		38.4		38.4			—			—			—		U.S. Treasury		46.1		—		46.1			—			—			—
U.S. Agency		0.4		—			0.4			—			—

State and local obligations		2.1		—			2.1			—			—		State and local obligations		4.0		—		—			4.0			—			—
Corporate bonds		32.7		—			32.7			—			—		Corporate bonds		41.0		—		—			41.0			—			—
Foreign governments		0.1		—			0.1			—			—		Foreign governments		0.1		—		—			0.1			—			—
Cash equivalents		1.5		1.5			—			—			—		Cash equivalents		2.8		—		2.8			—			—			—
Other		0.7		0.7			—			—			—

Total nuclear decommissioning trust		261.1		225.8			35.3			—			—		Total nuclear decommissioning trust		374.0		—		328.9			45.1			—			—
Self-insured health plan trust^(b)
Self-insured health plan trust(c)															Self-insured health plan trust(c)
Equity securities		0.5		0.5			—			—			—		Equity securities		1.8		—		1.8			—			—			—
Debt securities		2.1		0.1			2.0			—			—		Debt securities		7.6		—		2.1			5.5			—			—
Cash and cash equivalents		10.3		10.3			—			—			—		Cash and cash equivalents		3.9		—		3.9			—			—			—
Total self-insured health plan trust		12.9		10.9			2.0			—			—		Total self-insured health plan trust		13.3		—		7.8			5.5			—			—
Total		$	274.0	$	236.7		$	37.3		$	—		$	—
Other Evergy
Assets
Rabbi trusts
Fixed income fund		$	13.9	$	—		$	—		$	—		$	13.9
Total rabbi trusts		$	13.9	$	—		$	—		$	—		$	13.9
Evergy
Assets
Nuclear decommissioning trust ^(a)		$	498.2	$	423.1		$	35.3		$	—		$	39.8
Rabbi trusts		45.4		—			—			—			45.4
Self-insured health plan trust ^(b)		12.9		10.9			2.0			—			—
Total		$	556.5	$	434.0		$	37.3		$	—		$	85.2
Derivative instruments - commodity contracts(b)															Derivative instruments - commodity contracts(b)
Power															Power		1.1		(1.1)		—			—			2.2			—

Total derivative assets															Total derivative assets		1.1		(1.1)		—			—			2.2			—
Total assets															Total assets		388.4		(1.1)		336.7			50.6			2.2			—
Liabilities															Liabilities
Derivative instruments - commodity contracts(b)															Derivative instruments - commodity contracts(b)
Power															Power		—		(1.1)		—			—			1.1			—

Total derivative liabilities															Total derivative liabilities		—		(1.1)		—			—			1.1			—
Total liabilities															Total liabilities		$	—	$	(1.1)	$	—		$	—		$	1.1		$	—

Table of Contents


Description	June 30, 2023			Netting		Level 1		Level 2			Level 3			NAV
Other Evergy
Assets

Rabbi trusts
Core bond fund		$	9.1	$	—	$	9.1		$	—		$	—		$	—

Total rabbi trusts		9.1		—		9.1			—			—			—
Derivative instruments - commodity contracts(b)
Power		4.5		(0.5)		0.1			—			4.9			—

Total derivative assets		4.5		(0.5)		0.1			—			4.9			—
Total assets		13.6		(0.5)		9.2			—			4.9			—
Liabilities
Derivative instruments
Power		0.2		(0.6)		0.3			—			0.5			—
Natural gas		1.8		—		—			1.8			—			—
Total derivative liabilities		2.0		(0.6)		0.3			1.8			0.5			—
Total liabilities		$	2.0	(0.6)		$	0.3		$	1.8		$	0.5		$	—
Evergy
Assets
Nuclear decommissioning trust(a)		$	717.2	$	—	$	610.5		$	45.1		$	—		$	61.6
Rabbi trusts		33.5		—		33.5			—			—			—
Self-insured health plan trust(c)		13.3		—		7.8			5.5			—			—

Derivative instruments - commodity contracts(b)
Power		44.7		(23.9)		18.6			31.8			18.2			—
Natural gas		5.1		(34.9)		39.7			0.3			—			—
Total derivative assets		49.8		(58.8)		58.3			32.1			18.2			—
Total assets		813.8		(58.8)		710.1			82.7			18.2			61.6
Liabilities
Derivative instruments - commodity contracts(b)
Power		37.5		(13.4)		11.8			36.2			2.9			—
Natural gas		2.9		(34.9)		35.7			2.1			—			—
Total derivative liabilities		40.4		(48.3)		47.5			38.3			2.9			—
Total liabilities		$	40.4	$	(48.3)	$	47.5		$	38.3		$	2.9		$	—

Description December 31
2017 Level 1 Level 2 Level 3 NAV
Westar Energy (millions)
Assets
Nuclear decommissioning trust^(a)(c)

Domestic equity funds $ 73.8
$ —
$ 68.7
$ —
$ 5.1

International equity funds 47.9
—
47.9
—
—

Core bond fund 33.3
—
33.3
—
—

High-yield bond fund 18.1
—
18.1
—
—

Emerging markets bond fund 17.3
—
17.3
—
—

Combination debt/equity/other fund 14.1
—
14.1
—
—

Alternative investments fund 21.7
—
—
—
21.7

Real estate securities fund 10.8
—
—
—
10.8

Cash equivalents 0.1
0.1
—
—
—

Total nuclear decommissioning trust 237.1
0.1
199.4
—
37.6

Rabbi trust^(c)

Core bond fund 27.3
—
27.3
—
—

Combination debt/equity/other fund 6.8
—
6.8
—
—

Cash equivalents 0.2
0.2
—
—
—

Total rabbi trust 34.3
0.2
34.1
—
—

Total $ 271.4
$ 0.3
$ 233.5
$ —
$ 37.6

KCP&L^(d)

Assets
Nuclear decommissioning trust ^(a)

Equity securities $ 183.8
$ 183.8
$ —
$ —
$ —

Debt securities

U.S. Treasury 35.3
35.3
—
—
—

U.S. Agency 0.4
—
0.4
—
—

State and local obligations 2.1
—
2.1
—
—

Corporate bonds 34.1
—
34.1
—
—

Foreign governments 0.1
—
0.1
—
—

Cash equivalents 2.5
2.5
—
—
—

Other 0.1
0.1
—
—
—

Total nuclear decommissioning trust 258.4
221.7
36.7
—
—

Self-insured health plan trust^(b)

Equity securities 0.5
0.5
—
—
—

Debt securities 2.7
0.3
2.4
—
—

Cash and cash equivalents 7.7
7.7
—
—
—

Total self-insured health plan trust 10.9
8.5
2.4
—
—

Total $ 269.3
$ 230.2
$ 39.1
$ —
$ —

Evergy

Assets

Nuclear decommissioning trust^(a)(c)
$ 237.1
$ 0.1
$ 199.4
$ —
$ 37.6

Rabbi trust^(c)
34.3
0.2
34.1
—
—

Total $ 271.4
$ 0.3
$ 233.5
$ —
$ 37.6


^(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)

In the second quarter of 2018, Evergy and Westar Energy re-evaluated the classification, within the fair value hierarchy, of their various fund investments within both Westar Energy's nuclear decommissioning trust and rabbi trusts. As a result, Evergy and Westar Energy determined that certain fund investments within the nuclear decommissioning trust in the amount of $199.4 million as of December 31, 2017, should have been classified as Level 1, instead of Level 2. This determination is based on the fact that the fair value of these funds is based on daily published prices at which Evergy and Westar Energy are able to redeem their investments without restriction on a daily basis. Evergy and Westar Energy also determined that certain fund investments within their rabbi trusts in the amount of $34.1 million as of December 31, 2017, should have been measured using the net asset value (NAV) per share (or its equivalent) practical expedient, instead of as a Level 2 investment. This determination is based on the fact that these funds do not meet the definition of readily determinable fair value due to the absence of a published NAV. Evergy and Westar Energy have determined that these errors are immaterial to their current and previously filed financial reports and accordingly, have not revised prior periods but have reflected the changes in fair value hierarchy classification as of June 30, 2018.


^(d)	~~KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.~~

Table of Contents


Description	December 31, 2022			Netting		Level 1			Level 2			Level 3			NAV
Evergy Kansas Central		(millions)
Assets
Nuclear decommissioning trust(a)
Domestic equity funds		$	112.5	$	—		$	100.4		$	—		$	—		$	12.1
International equity funds		62.9		—			62.9			—			—			—
Core bond fund		51.0		—			51.0			—			—			—
High-yield bond fund		25.3		—			25.3			—			—			—
Emerging markets bond fund		16.0		—			16.0			—			—			—

Alternative investments fund		31.8		—			—			—			—			31.8
Real estate securities fund		18.9		—			—			—			—			18.9
Cash equivalents		0.4		—			0.4			—			—			—
Total nuclear decommissioning trust		318.8		—			256.0			—			—			62.8
Rabbi trust
Fixed income funds		15.6		—			15.6			—			—			—
Equity funds		7.3		—			7.3			—			—			—
Combination debt/equity/other fund		1.9		—			1.9			—			—			—
Cash equivalents		0.1		—			0.1			—			—			—
Total rabbi trust		24.9		—			24.9			—			—			—
Derivative instruments - commodity contracts(b)
Power		42.6		(59.7)			45.5			46.5			10.3			—
Natural gas		7.3		(215.3)			222.5			0.1			—			—
Total derivative assets		49.9		(275.0)			268.0			46.6			10.3			—
Total assets		393.6		(275.0)			548.9			46.6			10.3			62.8
Liabilities
Derivative instruments - commodity contracts(b)
Power		46.6		(50.5)			34.0			55.9			7.2			—
Natural gas		1.4		(215.3)			216.6			0.1			—			—
Total derivative liabilities		48.0		(265.8)			250.6			56.0			7.2			—
Total liabilities		$	48.0	$	(265.8)		$	250.6		$	56.0		$	7.2		$	—
Evergy Metro
Assets
Nuclear decommissioning trust(a)
Equity securities		$	243.4	$	—		$	243.4		$	—		$	—		$	—
Debt securities
U.S. Treasury		40.7		—			40.7			—			—			—
U.S. Agency		0.4		—			0.4			—			—			—
State and local obligations		4.2		—			—			4.2			—			—
Corporate bonds		39.1		—			—			39.1			—			—
Foreign governments		0.1		—			—			0.1			—			—
Cash equivalents		6.6		—			6.6			—			—			—

Total nuclear decommissioning trust		334.5		—			291.1			43.4			—			—
Self-insured health plan trust(c)
Equity securities		1.6		—			1.6			—			—			—
Debt securities		8.0		—			2.5			5.5			—			—
Cash and cash equivalents		1.6		—			1.6			—			—			—
Total self-insured health plan trust		11.2		—			5.7			5.5			—			—
Derivative instruments - commodity contracts(b)
Power		—		(3.5)			—			—			3.5			—

Total derivative assets		—		(3.5)			—			—			3.5			—
Total assets		345.7		(3.5)			296.8			48.9			3.5			—
Liabilities
Derivative instruments - commodity contracts(b)
Power		0.6		(3.5)			—			—			4.1			—

Total derivative liabilities		0.6		(3.5)			—			—			4.1			—
Total liabilities		$	0.6	$	(3.5)		$	—		$	—		$	4.1		$	—

Table of Contents


Description	December 31, 2022			Netting		Level 1			Level 2			Level 3			NAV
Other Evergy		(millions)
Assets



Rabbi trusts
Core bond fund		$	9.2	$	—		$	9.2		$	—		$	—		$	—
Total rabbi trusts		9.2		—			9.2			—			—			—
Derivative instruments - commodity contracts(b)
Power		0.4		(1.0)			—			—			1.4			—

Total derivative assets		0.4		(1.0)			—			—			1.4			—
Total assets		9.6		(1.0)			9.2			—			1.4			—
Liabilities
Derivative instruments - commodity contracts(b)
Power		0.2		(1.1)			0.2			—			1.1			—
Natural gas		3.7		—			—			3.7			—			—
Total derivative liabilities		3.9		(1.1)			0.2			3.7			1.1			—
Total liabilities		$	3.9	$	(1.1)		$	0.2		$	3.7		$	1.1		$	—
Evergy
Assets
Nuclear decommissioning trust(a)		$	653.3	$	—		$	547.1		$	43.4		$	—		$	62.8
Rabbi trusts		34.1		—			34.1			—			—			—
Self-insured health plan trust(c)		11.2		—			5.7			5.5			—			—

Derivative instruments - commodity contracts(b)
Power		43.0		(64.2)			45.5			46.5			15.2			—
Natural gas		7.3		(215.3)			222.5			0.1			—			—
Total derivative assets		50.3		(279.5)			268.0			46.6			15.2			—
Total assets		748.9		(279.5)			854.9			95.5			15.2			62.8
Liabilities
Derivative instruments - commodity contracts(b)
Power		47.4��		(55.1)			34.2			55.9			12.4			—
Natural gas		5.1		(215.3)			216.6			3.8			—			—
Total derivative liabilities		52.5		(270.4)			250.8			59.7			12.4			—
Total liabilities		$	52.5	$	(270.4)		$	250.8		$	59.7		$	12.4		$	—

(a)With the exception of investments measured at NAV, fair value is based on quoted market prices of the investments held by the trust and/or valuation models.

(b)Derivative instruments classified as Level 1 consist of exchange-traded derivative instruments with fair value based on quoted market prices. Derivative instruments classified as Level 2 consist of non-exchange traded derivative instruments with observable forward curves and option contracts priced with models using observable inputs. Derivative instruments classified as Level 3 consist of non-exchange traded derivative instruments for which observable market data is not available to corroborate the valuation inputs and TCRs valued at the most recent auction price in the SPP Integrated Marketplace.

(c)Fair value is based on quoted market prices of the investments held by the trust. Debt securities classified as Level 1 are comprised of U.S. Treasury securities. Debt securities classified as Level 2 are comprised of corporate bonds, U.S. Agency, state and local obligations, and other asset-backed securities.

Table of Contents

Certain Evergy and ~~Westar 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 ~~Westar Energy~~Evergy Kansas Central investments.


	June 30, 2023				December 31, 2022				June 30, 2023
	Fair		Unfunded		Fair		Unfunded		Redemption	Length of
	Value		Commitments		Value		Commitments		Frequency	Settlement
Evergy Kansas Central	(millions)
Nuclear decommissioning trust:
Domestic equity funds	$	10.8	$	1.5	$	12.1	$	1.5	(a)	(a)
Alternative investments fund(b)	33.1		—		31.8		—		Quarterly	65 days
Real estate securities fund(b)	17.7		—		18.9		—		Quarterly	65 days








Total Evergy investments at NAV	$	61.6	$	1.5	$	62.8	$	1.5

June 30, 2018 December 31, 2017 June 30, 2018
Fair Unfunded Fair Unfunded Redemption Length of
Value Commitments Value Commitments Frequency Settlement
Westar Energy (millions)
Nuclear decommissioning trust:
Domestic equity funds $ 5.3
$ 5.1
$ 5.1
$ 2.8
(a) (a)
Alternative investments fund^(b)
23.2
—
21.7
—
Quarterly 65 days
Real estate securities fund^(b)
11.3
—
10.8
—
Quarterly 65 days
Total $ 39.8
$ 5.1
$ 37.6
$ 2.8

Rabbi trust:
Core bond fund $ 25.2
$ —
$ —
$ —
(c) (c)
Combination debt/equity/other fund 6.3
—
—
—
(c) (c)
Total $ 31.5
$ —
$ —
$ —

Other Evergy
Rabbi trusts:
Fixed income fund^(d)
$ 13.9
$ —
$ —
$ —
(c) (c)
Total Evergy investments at NAV $ 85.2
$ 5.1
$ 37.6
$ 2.8

^(a)

(a)This investment is in five long-term private equity funds that do not permit early withdrawal. Investments in these funds cannot be distributed until the underlying investments have been liquidated, which may take years from the date of initial liquidation. Three funds have begun to make distributions. The initial investment in the fourth and fifth 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 the term for up to three additional one-year periods. The fifth fund's term will be 15 years after the initial closing date, subject to additional extensions approved by the 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.~~


^(d)	~~This investment is recorded at GMO. GMO amounts are not included in consolidated Evergy as of December 31, 2017.~~

~~Table~~ of ~~Contents~~initial liquidation. Three funds have begun to make distributions. The initial investment in the fourth and fifth funds occurred in 2016 and 2018, respectively. The fourth fund's term is 15 years, subject to the general partner's right to extend the term for up to three additional one-year periods. The fifth fund's term is 15 years, subject to additional extensions approved by a fund advisory committee to provide for an orderly liquidation of fund investments and dissolution of the fund.

(b)There is a holdback on final redemptions.

The Evergy Companies hold equity and debt investments classified as securities in various trusts including for the purposes of funding the decommissioning of Wolf Creek and for the benefit of certain retired executive officers of ~~Westar Energy.~~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 ~~Westar Energy's~~the Evergy Companies' rabbi ~~trust~~trusts in the consolidated statements of income and comprehensive income.

The following table summarizes the net unrealized gains (losses) for the Evergy Companies' nuclear decommissioning trusts and rabbi trusts.


	Three Months Ended June 30				Year to Date June 30
	2023		2022		2023		2022
Evergy	(millions)
Nuclear decommissioning trust - equity securities	$	25.2	$	(36.8)	$	54.7	$	(71.6)
Nuclear decommissioning trust - debt securities	(1.3)		(3.6)		0.8		(10.1)
Rabbi trusts - equity securities	0.1		(3.3)		1.7		(5.7)
Total	$	24.0	$	(43.7)	$	57.2	$	(87.4)
Evergy Kansas Central
Nuclear decommissioning trust - equity securities	$	7.9	$	(13.4)	$	22.0	$	(30.1)
Rabbi trust - equity securities	0.2		(2.6)		1.5		(4.2)
Total	$	8.1	$	(16.0)	$	23.5	$	(34.3)
Evergy Metro
Nuclear decommissioning trust - equity securities	$	17.3	$	(23.4)	$	32.7	$	(41.5)
Nuclear decommissioning trust - debt securities	(1.3)		(3.6)		0.8		(10.1)
Total	$	16.0	$	(27.0)	$	33.5	$	(51.6)

Three Months Ended
June 30 Year to Date
June 30
2018 2017 2018 2017
Westar Energy (millions)
Nuclear decommissioning trust - equity securities $ (12.8 ) $ 5.5
$ (12.9 ) $ 14.5
Rabbi trust (0.1 ) 1.1
(0.5 ) 2.5
Total $ (12.9 ) $ 6.6
$ (13.4 ) $ 17.0
KCP&L^(a)

Nuclear decommissioning trust - equity securities $ 4.1
$ 3.7
$ 0.5
$ 10.9
Nuclear decommissioning trust - debt securities (0.7 ) 0.5
(2.3 ) 0.7
Total $ 3.4
$ 4.2
$ (1.8 ) $ 11.6
Evergy
Nuclear decommissioning trust - equity securities $ (13.9 ) $ 5.5
$ (14.0 ) $ 14.5
Nuclear decommissioning trust - debt securities (0.3 ) —
(0.3 ) —
Rabbi trusts (0.2 ) 1.1
(0.6 ) 2.5
Total $ (14.4 ) $ 6.6
$ (14.9 ) $ 17.0

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^(a)~~KCP&L amounts are only included in consolidated Evergy from the date of the merger, June 4, 2018 through June 30, 2018.~~

~~12.~~11. COMMITMENTS AND CONTINGENCIES

~~Contractual Commitments~~

For information regarding long-term contractual commitments, including fuel and purchased power commitments, see Note 14 of the Westar Energy 2017 Form 10-K and Note 15 of the Great Plains Energy and KCP&L combined 2017 Form 10-K.

Environmental Matters

Set forth below are descriptions of contingencies related to environmental matters that may impact the Evergy ~~Companies~~Companies' operations or their financial results. Management's assessment of these contingencies, which are based on federal and state statutes and regulations, and regulatory agency and judicial interpretations and actions, has evolved over time. These laws, regulations, interpretations and actions can also change, restrict or otherwise impact the Evergy Companies' operations or financial results. The failure to comply with these laws, regulations, interpretations and actions could result in the assessment of administrative, civil and criminal penalties and the imposition of remedial requirements. The Evergy Companies believe that all of their operations are in substantial compliance with current federal, state and local environmental standards.

There are a variety of final and proposed laws and regulations that could have a material adverse effect on the Evergy ~~Companies~~Companies' operations and consolidated financial results. Due in part to the complex nature of environmental laws and regulations, the Evergy Companies are unable to assess the impact of potential changes that may develop with respect to the environmental contingencies described below.

~~Cross-State~~Clean Air ~~Pollution Update Rule~~Act - Startup, Shutdown and Malfunction (SSM) Regulation

In ~~September 2016,~~2015, the Environmental Protection Agency (EPA) ~~finalized~~issued a final rule addressing how state implementation plans (SIPs) can treat excess emissions during SSM events. This rule was referred to as the ~~Cross-State Air Pollution Update~~2015 SIP Call Rule. The ~~final~~ rule ~~addresses interstate transport of nitrogen oxides~~required 36 states to submit SIP revisions by November 2016 to remove certain exemptions and other discretionary enforcement provisions that apply to excess emissions ~~in 22 states including Kansas, Missouri and Oklahoma~~ during ~~the ozone season~~SSM events. Legal challenges ensued and the impact from the formation of ozone on downwind states with respect to the 2008 ozone National Ambient Air Quality Standards (NAAQS). Starting with the 2017 ozone season, the final rule revised the existing ozone season allowance budgets for Missouri and Oklahoma and established an ozone season budget for Kansas. Various states and others are challenging the rulecase was eventually placed in abeyance. In December 2021, the U.S. Court of Appeals for the D.C. Circuit ~~but~~(D.C. Circuit) restarted the ~~rule remains~~litigation and oral arguments were held in ~~effect. It is not expected~~March 2022. An additional case was also taking place in the U.S. District Court for the Northern District of California (District Court of Northern California) and in June 2022, the District Court of Northern California entered a final consent decree establishing deadlines for the EPA to take final action on SIP revisions that ~~this rule will~~were submitted in response to the 2015 SIP Call Rule. Deadlines for 26 states and air districts, including Kansas, Missouri and Oklahoma, are listed in the final consent decree. Final action from the EPA could result in required SIP revisions in Oklahoma, Kansas and Missouri which could have a material impact on the Evergy ~~Companies'~~Companies. If the D.C. Circuit overturns the EPA's 2015 SIP Call Rule, the final consent decree's deadlines will no longer be valid.

Mercury and Air Toxics Standards (MATS)

In April 2023, the EPA released a proposal to tighten certain aspects of the MATS rule. The EPA is proposing to lower the emission limit for particulate matter (PM), require the use of PM continuous emissions monitors (CEMS) and lower the mercury emission limit for lignite coal-fired electric generating units (EGUs). The EPA is also soliciting comment on further strengthening of the PM emission limitation. Due to uncertainty regarding final actions on the MATS rule, the Evergy Companies are unable to accurately assess the impacts of these potential EPA actions on their operations ~~and~~or consolidated financial ~~results.~~results, but the cost to comply with the emission limitations as proposed do not appear to be material.

~~Table of Contents~~Ozone Interstate Transport State Implementation Plans (ITSIP)

In 2015, the EPA lowered the Ozone National Ambient Air Quality Standards

Under the Clean Air Act Amendments of 1990 (Clean Air Act), the EPA sets NAAQS for certain emissions known as the “criteria pollutants” considered harmful to public health and the environment, including two classes of particulate matter (PM), ozone, nitrogen dioxide (NO₂~~) (a precursor to ozone), carbon monoxide and sulfur dioxide (SO~~₂), which result from fossil fuel combustion. Areas meeting the NAAQS are designated attainment areas while those that do not meet the NAAQS are considered nonattainment areas. Each state must develop a plan to bring nonattainment areas into compliance with the NAAQS. NAAQS must be reviewed by the EPA at five-year intervals.

~~In October 2015, the EPA strengthened the ozone NAAQS by lowering the standards~~ (NAAQS) from 75 ppb to 70 ppb. Impacted states were required to submit ITSIPs in 2018 to comply with the "Good Neighbor Provision" of the Clean Air Act (CAA). The EPA did not act on these ITSIP submissions by the deadline established in the CAA and entered consent decrees establishing deadlines to take final action on various ITSIPs. In ~~September 2016,~~February 2022, the EPA published a proposed rule to disapprove of ITSIPs submitted by nineteen states including Missouri and Oklahoma. In April 2022, the EPA published a final approval of the Kansas ~~Department of Health & Environment (KDHE) recommended~~ITSIP in the Federal Register. MDNR submitted a supplemental ITSIP to the EPA ~~that they designate eight counties~~on November 1, 2022. In February 2023, the EPA published a final rule disapproving the ITSIPs submitted by 19 states, including the final disapproval of the Missouri and Oklahoma ITSIPs. In April 2023, the Attorneys General of Missouri and Oklahoma have filed Petitions for Review in the ~~state~~U.S. 8th and 10th Circuit Courts of ~~Kansas as in attainment with~~Appeals, respectively, challenging the ~~standard,~~EPA disapproval. In May 2023, the 8th Circuit granted Missouri's stay request and ~~each remaining county in Kansas as attainment/unclassifiable. Also, in September 2016,~~denied the ~~Missouri Department~~EPA's request for a change of ~~Natural Resources (MDNR) recommended~~venue to the ~~EPA that they designate all Missouri counties in KCP&L's and GMO's service territories as attainment/unclassifiable. In November 2017,~~D.C. Circuit. Due to

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uncertainties regarding the ~~EPA designated all counties in~~legal challenges, the State of Kansas as well as the Missouri counties in KCP&L's and GMO's service territories as attainment/unclassifiable. It is not expected that this will have a material impact on the Evergy Companies' consolidated financial results.

In December 2012, the EPA strengthened an existing NAAQS for one class of PM. In December 2014, the EPA designated the entire state of Kansas and those portions of Missouri served by KCP&L and GMO as attainment/unclassifiable with the standard. It is not expected that this will have a material impact on the Evergy Companies' operations ~~or consolidated financial results.~~and the cost to comply is unknown but is not expected to be material if the ITSIPs are approved in their current forms.

Ozone Interstate Transport Federal Implementation Plans (ITFIP)

In April 2022, the EPA published in the Federal Register the proposed ITFIP to resolve outstanding "Good Neighbor" obligations with respect to the 2015 Ozone NAAQS for 26 states including Missouri and Oklahoma. This ITFIP would establish a revised Cross-State Air Pollution Rule (CSAPR) ozone season nitrogen oxide (NOx) emissions trading program for electric generating units (EGUs) beginning in 2023 and would limit ozone season NOx emissions from certain industrial stationary sources beginning in 2026. The proposed rule would also establish a new daily backstop NOx emissions rate limit for applicable coal-fired units larger than 100 MW, as well as unit-specific NOx emission rate limits for certain industrial emission units and would feature "dynamic" adjustments of emission budgets for EGUs beginning with ozone season 2025. The proposed ITFIP includes reductions to the state ozone season NOx budgets for Missouri and Oklahoma beginning in 2023 with additional reductions in future years. The Evergy Companies ~~continue~~provided formal comments as part of the rulemaking process. In June 2023, the EPA published in the Federal Register the final ITFIP for twenty-three states, including Missouri and Oklahoma. The EPA also released an Interim Final Rule in June 2023 that will stay the effectiveness of the ITFIP in Missouri, and five other states, while judicial stays remain in effect for the EPA's final rule disapproval of the ITSIPs submitted by those states. In the Interim Final Rule, the EPA acknowledges that it lacks authority to ~~communicate with their regulatory agencies~~impose the ITFIP on sources in these states while its disapproval of the ITSIPs submitted by these states is stayed. Due to uncertainties regarding ~~these standards~~the legal challenges to the ITSIP disapprovals and ~~evaluate what~~the ITFIP, the Evergy Companies are unable to accurately assess the impacts of the ITFIP, but the impact ~~the revised NAAQS could have~~ on their operations and the cost to comply could be material.

Particulate Matter and Ozone National Ambient Air Quality Standards

In January 2023, the EPA proposed strengthening the primary annual PM2.5 (particulate matter less than 2.5 microns in diameter) NAAQS. The EPA is proposing to lower the primary annual PM2.5 NAAQS from 12.0 µg/m3 (micrograms per cubic meter) to a level that would be between 9.0 and 10.0 µg/m3. The EPA is proposing to retain the other PM NAAQS at their current levels. In March 2023, the EPA released a revised draft Policy Assessment for the Reconsideration of the Ozone NAAQS which recommended retaining the current Ozone NAAQS of 70 parts per billion (ppb). The EPA plans to issue a proposed decision on the Ozone NAAQS reconsideration in the spring of 2024, with a final decision no earlier than the end of 2024. Due to uncertainty regarding the potential lowering of the ozone and PM2.5 NAAQS, the Evergy Companies are unable to accurately assess the impacts of these potential EPA actions on their operations or consolidated financial ~~results. If~~results, but the cost to comply with lower future ozone or PM2.5 NAAQS could be material.

Regional Haze Rule

In 1999, the EPA finalized the Regional Haze Rule which aims to restore national parks and wilderness areas ~~surrounding~~to pristine conditions. The rule requires states in coordination with the EPA, the National Park Service, the U.S. Fish and Wildlife Service, the U.S. Forest Service, and other interested parties to develop and implement air quality protection plans to reduce the pollution that causes visibility impairment. There are 156 "Class I" areas across the U.S. that must be restored to pristine conditions by the year 2064. There are no Class I areas in Kansas, whereas Missouri has two: the Hercules-Glades Wilderness Area and the Mingo Wilderness Area. States must submit revisions to their Regional Haze Rule SIPs every ten years and the first round was due in 2007. For the second ten-year implementation period, the EPA issued a final rule revision in 2017 that allowed states to submit their SIP revisions by July 31, 2021. The Evergy Companies have been in contact with the Kansas Department of Health and Environment (KDHE) and MDNR as they worked to draft their SIP revisions. The Missouri SIP revision does not require any additional reductions from the Evergy Companies' ~~facilities are designated~~generating units in the ~~future as nonattainment and/or it~~state. MDNR submitted the Missouri SIP revision to the EPA in August 2022, however, they failed to do so by the EPA's revised submittal deadline of August 15, 2022. As a result, on August 30, 2022, the EPA published "finding of failure" with respect to Missouri and fourteen other states for failing to submit their Regional Haze SIP revisions by the applicable deadline. This finding of failure established a two-year deadline for the EPA to issue a Regional Haze federal implementation plan (FIP) for each state unless the state submits and the EPA approves a revised SIP that meets all applicable requirements before the EPA issues the FIP. The Kansas SIP revision was placed on public notice in June 2021 and requested no additional emission reductions by electric utilities based on the significant reductions

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that were achieved during the first implementation period. The EPA provided comments on the Kansas SIP revision in June 2021 that each state is statutorily required to ~~install additional equipment~~conduct a "four-factor analysis" on at least two sources within the state to ~~control emissions~~help determine if further emission reductions are necessary. The EPA also stated it would be difficult to approve the Kansas SIP revision if at ~~facilities~~least two four-factor analyses are not conducted on Kansas emission sources. KDHE submitted the Kansas SIP revision in July 2021. If a Kansas generating unit of the Evergy Companies itis selected for analysis, the possibility exists that the state or the EPA, through a revised SIP or a FIP, could ~~have a material impact~~determine that additional operational or physical modifications are required on the ~~operations and consolidated financial results~~generating unit to further reduce emissions. The overall cost of those modifications could be material to the Evergy Companies. In June 2023, several environmental organizations filed a suit against the EPA in the D.C. Circuit for failure of the ~~Evergy Companies.~~

EPA to timely approve or disapprove of the SIP revisions submitted by Kansas and seven other states.

Greenhouse Gases

Burning coal and other fossil fuels releases carbon dioxide (CO₂) and other gases referred to as greenhouse gases (GHG). Various regulations under the ~~federal Clean Air Act~~CAA limit CO₂ and other GHG emissions, and in addition, other measures are being imposed or offered by individual states, municipalities and regional agreements with the goal of reducing GHG emissions.

In ~~October 2015, the EPA published a rule establishing new source performance standards (NSPS) for GHGs that limit CO~~₂ emissions for new, modified and reconstructed coal and natural gas fueled electric generating units to various levels per MWh depending on various characteristics of the units. Legal challenges to the GHG NSPS have been filed in the D.C. Circuit by various states and industry members. Also in October 2015, the EPA published a rule establishing guidelines for states to regulate CO₂ emissions from existing power plants. The standards for existing plants are known as the Clean Power Plan (CPP). Under the CPP, interim emissions performance rates must be achieved beginning in 2022 and final emissions performance rates must be achieved by 2030. Legal challenges to the CPP were filed by groups of states and industry members, including Westar Energy, in the D.C. Circuit. The CPP was stayed by the Supreme Court in February 2016 and, accordingly, is not currently being implemented by the states.

~~In April 2017,~~May 2023, the EPA published in the Federal Register ~~a notice of withdrawal of the~~ proposed ~~CPP federal plan, proposed model trading rules~~GHG regulations that would apply to fossil fuel fired EGUs. The proposal would set CO2 limitations for new gas-fired combustion turbines, existing coal, oil and ~~proposed Clean Energy Incentive Program design details. Also in April 2017, the EPA published a notice in the Federal Register that it was initiating administrative reviews of the CPP~~gas-fired steam generating units, and ~~the GHG NSPS.~~

~~In October 2017, the EPA issued a proposed rule to repeal the CPP.~~certain existing gas-fired combustion turbines. The proposed ~~rule indicates the CPP exceeds EPA’s authority~~CO2 limitations assume technologies such as carbon capture and ~~the EPA has not determined whether they~~sequestration/storage (CCS), hydrogen co-firing, and natural gas co-firing will ~~issue a replacement rule. The EPA solicited comments on the legal interpretations contained in this rulemaking.~~

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In December 2017, the EPA issued an advance notice of proposed rulemaking. This proposed rulemaking was issued by the EPA because it is considering the possibility of changing certain aspects of the CPP and the EPA solicited feedback on specific areas that could be ~~changed.~~

In July 2018, the EPA submitted to the White House a proposed rule titled "State Guidelines for Greenhouse Gas Emissions from Existing Electric Utility Generating Units." This is the replacement rule for the CPP. The proposed rule is currently with the Office of Management and Budget for interagency review.utilized.

Due to uncertainty regarding the future ~~uncertainty~~ of the ~~CPP,~~EPA's GHG regulations, the Evergy Companies cannot determine the ~~impact~~impacts on their operations or consolidated financial results, but the cost to comply with ~~the CPP, should it be upheld and implemented in its current or a substantially similar form,~~potential GHG rules could be material.

Water

The Evergy ~~Companies'~~Companies discharge some of the water used in generation and other ~~operations. This water may contain~~operations containing substances deemed to be pollutants. ~~Revised rules governing such discharges from coal-fired~~A November 2015 EPA rule applicable to steam-electric power generating plants ~~were issued in November 2015. The final rule~~ establishes effluent limitations guidelines (ELG) and standards for wastewater discharges, including limits on the amount of toxic metals and other pollutants that can be discharged. Implementation timelines for ~~these requirements~~this 2015 rule vary from 2018 to 2023. In April ~~2017,~~2019, the U.S. Court of Appeals for the 5th Circuit (5th Circuit) issued a ruling that vacated and remanded portions of the original ELG rule. Due to this ruling, the EPA announced ~~it is reconsidering~~a plan in July 2021 to issue a proposed rule in the fall of 2022 to address the vacated limitations for legacy wastewater and landfill leachate. In March 2023, the EPA published a proposed update to the ELG ~~rule and court challenges have been placed in abeyance pending~~to address the ~~EPA’s review. In September 2017, the EPA finalized a rule to postpone the compliance dates for the new, more stringent, effluent~~vacated limitations and ~~pretreatment standards for~~prior reviews of the existing rule by the current administration. Flue Gas Desulfurization (FGD) wastewater, bottom ash transport wastewater, coal residual leachate, and legacy wastewater are addressed in the proposal. The Evergy Companies have reviewed the proposed modifications to limitations on FGD wastewater and bottom ash transport water and ~~flue gas desulfurization wastewater. These compliance dates have been postponed for two years while~~if the ~~EPA completes its administrative reconsideration of~~regulation is finalized as proposed, the ~~ELG rule. The~~ Evergy Companies ~~are evaluating~~do not believe the ~~final rule and related developments and cannot predict~~impact to be material. Modifications for best available technology economically available for the ~~resulting impact on their operations or consolidated financial results, but believe costs to comply~~discharge of coal residual leachate could be material if the ~~rule~~rulemaking is ~~implemented in its current or substantially similar form.~~finalized as proposed.

In ~~October 2014, the EPA’s final standards for cooling intake structures at power plants to protect aquatic life took effect. The standards,~~August 2021, based on Section 316(b) of the federal Clean Water Act (CWA), require subject facilities to choose among seven best available technology options to reduce fish impingement. In addition, some facilities must conduct studies to assist permitting authorities in determining whether and what site-specific controls, if any, would be required to reduce entrainment of aquatic organisms. The Evergy Companies' current analysis indicates this rule will not have a significant impact on their coal plants that employ cooling towers or cooling lakes that can be classified as closed cycle cooling and do not expect the impact from this rule to be material. The Evergy Companies' generating plants without closed cycle cooling are under evaluation for compliance with these standards and may require additional controls that could have a material impact on the Evergy Companies' operations and consolidated financial results.

KCP&L holds a permit from 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. Evergy 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 material impact on Evergy's and KCP&L's operations and consolidated financial results.

~~In June 2015, the EPA along with~~order issued by the U.S. ~~Army Corps~~District Court for the District of ~~Engineers issued a final rule, effective August 2015, defining~~Arizona, which vacated and remanded the EPA's 2020 Navigable Waters of the United States (WOTUS) for purposes of the CWA. This rulemaking has the potential to impact all programs under the CWA. Expansion of regulated waterways is possible under the rule depending on regulating authority interpretation, which could impact several permitting programs. Various states and others have filed lawsuits challenging the WOTUS rule. In February 2018, the EPA and the U.S. Corps of Engineers finalized a rule adding an applicability date to the 2015 rule, which makes the implementation date of the rule February 2020. In July 2017,Protection Rule (NWPR), the EPA and the U.S. Army Corps of Engineers announced that they had halted implementation of the NWPR nationwide, and were interpreting "Waters of the United States" consistent with the regulatory regime that was in place prior to 2015. In December 2021, the EPA and the Department of the Army published a proposed rule that would formally repeal the NWPR and revise the definition of "Waters of the United States." In December 2022, the EPA and the Department of the Army issued a final rule establishing a definition for "Waters of the United States." The final rule was published in the Federal Register in January 2023 and took effect in March 2023. In May 2023, the Supreme Court issued a ~~proposed~~decision that impacts the final rule ~~that would, if implemented, reinstate~~and has led the ~~definition of WOTUS that existed prior~~EPA to announce an upcoming rulemaking and changes to the ~~June 2015 expansion of the~~

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~~definition. Final action on the proposed rule is expected in 2018.~~current interpretation. The Evergy Companies are ~~currently evaluating~~reviewing the ~~WOTUS rule~~Supreme Court's decision and ~~related developments but do not believe~~awaiting the ~~rule, if upheld and implemented in its current or substantially similar form, will have a material~~announced rulemaking. The impact on the Evergy Companies' operations or consolidated financial ~~results.~~results are not expected to be material.

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Regulation of Coal Combustion Residuals

In the course of operating their coal generation plants, the Evergy Companies produce ~~CCRs,~~coal combustion residuals (CCRs), including fly ash, gypsum and bottom ash. ~~Some of this ash production is recycled, principally by selling to the aggregate industry.~~ The EPA published a rule to regulate CCRs in April 2015 ~~which the Evergy Companies believe will require~~that requires additional CCR handling, processing and storage equipment and closure of certain ash disposal units. ~~Impacts to operations will be dependent on~~In January 2022, the ~~development~~EPA published proposed determinations for facilities that filed closure extensions for unlined or clay-lined CCR units. These proposed determinations include various interpretations of ~~groundwater monitoring~~the CCR regulations and compliance expectations that may impact all owners of CCR units. These interpretations could require modified compliance plans such as different methods of CCR unit closure. Additionally, more stringent remediation requirements for units ~~being completed~~that are in ~~2017~~corrective action or forced to go into corrective action are possible. In April 2022, the Utility Solid Waste Activities Group (USWAG) and ~~2018.~~other interested parties filed similar petitions in the D.C. Circuit challenging the EPA's legal positions regarding the CCR rule determinations proposed in January 2022. The ~~Water Infrastructure Improvements for the Nation Act allows states~~cost to ~~achieve delegated authority for CCR rules from the EPA. This has the potential to impact compliance options. Electric generation industry participants requested and~~comply with these proposed determinations by the EPA ~~has granted a request to reconsider portions of the final CCR regulation.~~ could be material.

In ~~March 2018,~~May 2023, the EPA published a proposed expansion to the ~~Phase I~~ CCR ~~Remand Rule in order to modify portions~~regulation focused on legacy surface impoundments. This regulation expands applicability of the 2015 ~~rulemaking. This rule was signed~~CCR regulation to two newly defined types of CCR disposal units. If finalized, the Evergy Companies anticipate having additional CCR units requiring evaluation and potential remediation. The cost to comply with these proposed regulations by the EPA ~~and published in the Federal Register in July 2018 and introduces additional flexibility in CCR compliance.~~ could be material.

The Evergy Companies have recorded AROs for their current estimates for the closure of ash disposal ponds and landfills, but the revision of these AROs may be required in the future due to changes in existing CCR regulations, the results of groundwater monitoring of CCR units or changes in interpretation of existing CCR regulations or changes in the timing or cost to close ash disposal ~~ponds.~~ponds and landfills. The revision of AROs for regulated operations has no income statement impact due to the deferral of the adjustments through a regulatory asset. If revisions to these AROs are necessary, the impact on the Evergy Companies' operations or consolidated financial results could be material.

~~Storage of Spent Nuclear Fuel~~

Under the Nuclear Waste Policy Act of 1982, the Department of Energy (DOE) is responsible for the permanent disposal of spent nuclear fuel. In 2010, the DOE filed a motion with the Nuclear Regulatory Commission (NRC) to withdraw its then pending application to construct a national repository for the disposal of spent nuclear fuel and high-level radioactive waste at Yucca Mountain, Nevada. An NRC board denied the DOE’s motion to withdraw its application and the DOE appealed that decision to the full NRC. In 2011, the NRC issued an evenly split decision on the appeal and also ordered the licensing board to close out its work on the DOE’s application by the end of 2011 due to a lack of funding. These agency actions prompted the states of Washington and South Carolina, and a county in South Carolina, to file a lawsuit in a federal Court of Appeals asking the court to compel the NRC to resume its license review and to issue a decision on the license application. In August 2013, the court ordered the NRC to resume its review of the DOE’s application. The NRC has not yet issued its decision.

Wolf Creek has elected to build a dry cask storage facility to expand its existing on-site spent nuclear fuel storage, which is expected to provide additional capacity prior to 2025. Wolf Creek has finalized a settlement agreement through 2019 with the DOE for reimbursement of costs to construct this facility that would not have otherwise been incurred had the DOE begun accepting spent nuclear fuel. The Evergy Companies expect the majority of the remaining cost to construct the dry cask storage facility that would not have otherwise been incurred will be reimbursed by the DOE. The Evergy Companies cannot predict when, or if, an off-site storage site or alternative disposal site will be available to receive Wolf Creek’s spent nuclear fuel and will continue to monitor this activity.

~~13. GUARANTEES~~

In the ordinary course of business, Evergy and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiary's intended business purposes. The majority of these agreements guarantee the company's own future performance, so a liability for the fair value of the obligation is not recorded. In connection with the merger transaction, Evergy assumed the guarantees previously provided to GMO by Great Plains Energy.

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~~At June 30, 2018, Evergy has provided $112.3 million of credit support for GMO as follows:~~

~~Evergy~~ ~~direct guarantees to GMO counterparties~~ ~~totaling $18.0 million, which~~ ~~expire in 2018, and~~

~~Evergy's~~ ~~guarantee of GMO long-term debt~~ ~~totaling $94.3 million, which includes debt with~~ ~~maturity dates ranging from 2019 to 2023~~.

~~Evergy has also guaranteed GMO's commercial paper program. At June 30, 2018, GMO had $208.7 million of commercial paper outstanding.~~

~~14.~~12. RELATED PARTY TRANSACTIONS AND RELATIONSHIPS

In the normal course of business, ~~Westar Energy, KCP&L~~Evergy Kansas Central, Evergy Metro and ~~GMO~~Evergy Missouri West engage in related party transactions with one another. A summary of these transactions and the amounts associated with them is provided below. ~~All related party transaction amounts between Westar Energy and either KCP&L or GMO only reflect activity between June 4, 2018, the date of the merger, and June 30, 2018.~~

Jointly-Owned Plants and Shared Services

~~KCP&L employees~~Employees of Evergy Kansas Central and Evergy Metro manage ~~GMO's~~Evergy Missouri West's business and operate its facilities at cost, including ~~GMO's~~Evergy Missouri West's 18% ownership interest in ~~KCP&L's~~Evergy Metro's Iatan Nos. 1 and 2. The operating expenses and capital costs billed from KCP&L to GMO were $49.8 million and $96.2 million, respectively, for the three months ended and year to date June 30, 2018. These costs totaled $47.9 million and $95.8 million, respectively, for the three months ended and year to date June 30, 2017.

~~Westar Energy employees~~Employees of Evergy Kansas Central manage ~~Jeffrey Energy Center~~JEC and operate its facilities at cost, including ~~GMO's~~Evergy Missouri West's 8% ownership interest in Jeffrey Energy Center. The operating expenses and capital costs billed from Westar Energy to GMO for Jeffrey Energy Center and other various business activities were $3.7 million for the three months ended and year to date June 30, 2018.

~~KCP&L employees~~JEC. Employees of Evergy Metro manage La Cygne Station and operate its facilities at cost, including ~~Westar Energy's~~Evergy Kansas Central's 50% ~~ownership~~ interest in La Cygne Station. ~~KCP&L~~Employees of Evergy Metro and ~~Westar Energy employees~~Evergy Kansas Central also provide one another with shared service support, including costs related to human resources, information technology, accounting and legal services.

The operating expenses and capital costs billed ~~from KCP&L to Westar Energy were $15.3 million~~ for jointly-owned plants and shared services are detailed in the ~~three months ended and year to date June 30, 2018. The operating and capital costs billed from Westar Energy to KCP&L were $6.0 million for the three months ended and year to date June 30, 2018.~~following table.


	Three Months Ended June 30				Year to Date June 30
	2023		2022		2023		2022
	(millions)
Evergy Kansas Central billings to Evergy Missouri West	$	9.9	$	7.2	$	16.1	$	14.6
Evergy Metro billings to Evergy Missouri West	30.4		32.3		57.2		65.0
Evergy Kansas Central billings to Evergy Metro	12.0		6.9		22.9		13.5
Evergy Metro billings to Evergy Kansas Central	31.7		31.3		60.6		64.7

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Money Pool

~~KCP&L~~Evergy Kansas Central, Evergy Metro and ~~GMO~~Evergy Missouri West are ~~also~~ authorized to participate in the Evergy, Inc. money pool, which is an internal financing arrangement in which funds may be lent on a short-term basis ~~to KCP&L~~between Evergy Kansas Central, Evergy Metro, Evergy Missouri West and ~~GMO~~Evergy, Inc. Evergy, Inc. can lend but not borrow under the money pool.

As of June 30, 2023, Evergy Metro had no outstanding receivables or payables under the money pool. As of December 31, 2022, Evergy Metro had a $31.0 million outstanding receivable from Evergy ~~and between KCP&L and GMO. At~~Missouri West under the money pool. As of June 30, ~~2018~~2023 and December 31, ~~2017, KCP&L~~2022, Evergy Kansas Central had no outstanding receivables or payables under the money pool.

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Related Party Net Receivables and Payables

The following table summarizes ~~Westar Energy's~~Evergy Kansas Central's and ~~KCP&L's~~Evergy Metro's related party net receivables and payables.

June 30 December 31
2018 2017
Westar Energy (millions)
Net receivable from GMO $ 0.2
$ —

Net payable to KCP&L (32.8 ) —

Net payable to Evergy (2.0 ) —

KCP&L
Net receivable from GMO $ 56.4
$ 65.8

Net receivable from Westar Energy 32.8
—

Net receivable from Evergy 19.1
—

Net receivable from Great Plains Energy —
18.9



	June 30		December 31
	2023		2022
Evergy Kansas Central	(millions)
Net payable to Evergy	$	(13.4)	$	(12.7)
Net payable to Evergy Metro	(15.8)		(15.7)
Net receivable from Evergy Missouri West	9.6		7.4

Evergy Metro
Net receivable from Evergy	$	16.1	$	16.3
Net receivable from Evergy Kansas Central	15.8		15.7
Net receivable from Evergy Missouri West	82.5		137.5

Tax Allocation Agreement

Evergy files a consolidated federal income tax return as well as unitary and combined income tax returns in several ~~states~~state jurisdictions with Kansas and Missouri being the most significant. Income taxes for consolidated or combined subsidiaries are allocated to the subsidiaries based on separate company computations of income or loss. ~~As of June 30, 2018, Westar Energy and KCP&L had income taxes payable to Evergy of $13.4 million and $29.5 million, respectively.~~

~~15. SHAREHOLDERS' EQUITY~~

~~Evergy's authorized capital stock consists of 600 million shares of common stock, without par value, and 12 million shares of Preference Stock, without par value.~~

In June 2018, Evergy registered shares of its common stock with the SEC for the Great Plains Energy 401(k) Savings Plan and Westar Energy, Inc. Employees' 401(k) Savings Plan that Evergy assumed in connection with the merger transaction. Shares issued under the plans may be either newly issued shares or shares purchased on the open market.

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 the 60 million shares by mid-2020. Evergy plans to utilize various methods to effectuate the share repurchase program, including but not limited to, a series of transactions that may include accelerated share repurchases, 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.

~~Dividend Restrictions~~

Evergy depends on its subsidiaries to pay dividends on its common stock. The Evergy Companies have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels or the ability to pay dividends.

The KCC order authorizing the merger transaction requires Evergy to maintain consolidated common equity of at least 35% of total capitalization. Further, Evergy's revolving credit facility requires it to maintain a consolidated indebtedness to consolidated capitalization ratio of not more than 0.65 to 1.00 at all times.

Under the Federal Power Act, Westar Energy, KCP&L and GMO generally can pay dividends only out of retained earnings. Certain conditions in the MPSC and KCC orders authorizing the merger transaction also require Westar Energy and KCP&L to maintain consolidated common equity of at least 40% of total capitalization. Other conditions in the MPSC and KCC merger orders require Westar Energy, KCP&L and GMO to maintain credit ratings of at least investment grade. If Westar Energy's, KCP&L's or GMO's credit ratings are downgraded below the investment grade level as a result of their affiliation with Evergy or any of Evergy's affiliates, the impacted

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~~utility shall not pay a common dividend without KCC or MPSC approval or until the impacted utility's investment grade credit rating has been restored.~~

The revolving credit agreements of Westar Energy, KCP&L and GMO and the note purchase agreement for GMO's Series A, B and C Senior Notes contain covenants requiring the respective company to maintain a consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00 at all times.

As of June 30, 2018, all of Evergy's and Westar Energy's retained earnings and net income were free of restrictions and KCP&L had a retained earnings restriction of $297.2 million. Evergy's subsidiaries had restricted net assets of approximately $5.8 billion as of June 30, 2018. These restrictions are not expected to affect the Evergy Companies' ability to pay dividends at the current level for the foreseeable future.

~~16. VARIABLE INTEREST ENTITIES~~

In determining the primary beneficiary of a VIE, the Evergy Companies assess the entity's purpose and design, including the nature of the entity's activities and the risks that the entity was designed to create and pass through to its variable interest holders. A reporting enterprise is deemed to be the primary beneficiary of a VIE if it has (a) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. The trust holding KGE's 50% interest in La Cygne Unit 2 is a VIE and KGE remains the primary beneficiary of the trust.

All involvement with entities by the Evergy Companies is assessed to determine whether such entities are VIEs and, if so, whether or not the Evergy Companies are the primary beneficiaries of the entities. The Evergy Companies also continuously assess whether they are the primary beneficiary of the VIE with which they are involved. Prospective changes in facts and circumstances may cause identification of the primary beneficiary to be reconsidered.

~~50% Interest in La Cygne Unit 2~~

Under an agreement that expires in September 2029, KGE entered into a sale-leaseback transaction with a trust under which the trust purchased KGE's 50% interest in La Cygne Unit 2 and subsequently leased it back to KGE. The trust was financed with an equity contribution from an owner participant and debt issued by the trust. The trust was created specifically to purchase the 50% interest in La Cygne Unit 2 and lease it back to KGE, and does not hold any other assets. KGE meets the requirements to be considered the primary beneficiary of the trust. In determining the primary beneficiary of the trust, KGE concluded that the activities of the trust that most significantly impact its economic performance and that KGE has the power to direct include (1) the operation and maintenance of the 50% interest in La Cygne Unit 2 and (2) KGE's ability to exercise a purchase option at the end of the agreement at the lesser of fair value or a fixed amount. KGE has the potential to receive benefits from the trust that could potentially be significant if the fair value of the 50% interest in La Cygne Unit 2 at the end of the agreement is greater than the fixed amount.

The following table summarizes ~~the assets~~Evergy Kansas Central's and ~~liabilities related to the VIE described above that are recorded on Evergy's and Westar Energy's consolidated balance sheets.~~Evergy Metro's income taxes receivable from (payable to) Evergy.



	June 30		December 31
	2023		2022
Evergy Kansas Central	(millions)
Income taxes receivable from (payable to) Evergy	$	15.4	$	(10.3)

Evergy Metro
Income taxes receivable from (payable to) Evergy	$	(21.6)	$	0.2

June 30 December 31
2018 2017
Assets: (millions)
Property, plant and equipment of variable interest entities, net $ 172.7
$ 176.3
Liabilities:
Current maturities of long-term debt of variable interest entities $ 30.3
$ 28.5
Accrued interest^(a)
0.5
0.7
Long-term debt of variable interest entities, net 51.1
81.4


^(a)	~~Included in accrued interest on Evergy's and Westar Energy's consolidated balance sheets.~~

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All of the liabilities noted in the table above relate to the purchase of the property, plant and equipment of the VIE. The assets of the VIE can be used only to settle obligations of the VIE and the VIE's debt holders have no recourse to the general credit of Evergy and Westar Energy. Evergy and Westar Energy have not provided financial or other support to the VIE and are not required to provide such support. Evergy and Westar Energy did not record any gain or loss upon the initial consolidation of the VIE.

~~17.~~13. TAXES

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


Evergy
	Three Months Ended June 30				Year to Date June 30
	2023		2022		2023		2022
Current income taxes	(millions)
Federal	$	5.6	$	13.5	$	10.6	$	25.0
State	7.2		2.1		11.9		1.7
Total	12.8		15.6		22.5		26.7
Deferred income taxes
Federal	5.5		8.4		13.2		4.5
State	(5.6)		(0.2)		(8.9)		3.0
Total	(0.1)		8.2		4.3		7.5





Investment tax credit
Deferral	—		—		—		2.7
Amortization	(1.9)		(1.7)		(3.6)		(3.3)
Total	(1.9)		(1.7)		(3.6)		(0.6)
Income tax expense	$	10.8	$	22.1	$	23.2	$	33.6


Evergy
Evergy Kansas Central													Evergy Kansas Central
	Three Months Ended June 30						Year to Date June 30							Three Months Ended June 30				Year to Date June 30
	2018			2017			2018			2017				2023		2022		2023		2022
Current income taxes	(millions)												Current income taxes	(millions)
Federal	$	8.6		$	0.5		$	8.8		$	2.2		Federal	$	3.4	$	28.9	$	21.5	$	36.8
State	0.4			0.2			0.4			0.4			State	2.9		(1.1)		4.9		(0.9)
Total	9.0			0.7			9.2			2.6			Total	6.3		27.8		26.4		35.9
Deferred income taxes													Deferred income taxes
Federal	9.5			27.9			15.4			42.9			Federal	(0.7)		(21.9)		(10.7)		(30.4)
State	(62.7		)	7.9			(59.0		)	12.7			State	(1.6)		(0.5)		(2.3)		1.8
Total	(53.2		)	35.8			(43.6		)	55.6			Total	(2.3)		(22.4)		(13.0)		(28.6)
Investment tax credit amortization	(0.8		)	(0.6		)	(1.4		)	(1.4		)
Income tax expense (benefit)	$	(45.0	)	$	35.9		$	(35.8	)	$	56.8

Investment tax credit													Investment tax credit
Deferral													Deferral	—		—		—		2.7
Amortization													Amortization	(0.9)		(1.0)		(1.9)		(2.0)
Total													Total	(0.9)		(1.0)		(1.9)		0.7
Income tax expense													Income tax expense	$	3.1	$	4.4	$	11.5	$	8.0

Westar Energy
Three Months Ended
June 30 Year to Date
June 30
2018 2017 2018 2017
Current income taxes (millions)
Federal $ 10.7
$ 0.5
$ 10.9
$ 2.2
State 2.5
0.2
2.5
0.4
Total 13.2
0.7
13.4
2.6
Deferred income taxes

Federal (2.8 ) 27.9
3.1
42.9
State (63.3 ) 7.9
(59.6 ) 12.7
Total (66.1 ) 35.8
(56.5 ) 55.6
Investment tax credit amortization (0.7 ) (0.6 ) (1.3 ) (1.4 )
Income tax expense (benefit) $ (53.6 ) $ 35.9
$ (44.4 ) $ 56.8

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KCP&L
Evergy Metro													Evergy Metro
	Three Months Ended June 30						Year to Date June 30							Three Months Ended June 30				Year to Date June 30
	2018			2017			2018			2017				2023		2022		2023		2022
Current income taxes	(millions)												Current income taxes	(millions)
Federal	$	24.1		$	14.5		$	22.8		$	14.4		Federal	$	3.3	$	(6.9)	$	(1.8)	$	2.5
State	5.3			2.6			4.8			2.6			State	3.6		1.0		5.2		1.1
Total	29.4			17.1			27.6			17.0			Total	6.9		(5.9)		3.4		3.6
Deferred income taxes													Deferred income taxes
Federal	(25.1		)	9.1			(21.5		)	16.9			Federal	8.1		21.2		20.5		19.6
State	44.7			2.0			46.7			3.4			State	(2.4)		(0.4)		(3.6)		—
Total	19.6			11.1			25.2			20.3			Total	5.7		20.8		16.9		19.6

Investment tax credit amortization	(0.2		)	(0.2		)	(0.5		)	(0.5		)	Investment tax credit amortization	(0.9)		(0.6)		(1.7)		(1.2)

Income tax expense	$	48.8		$	28.0		$	52.3		$	36.8		Income tax expense	$	11.7	$	14.3	$	18.6	$	22.0

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
June 30 Year to Date
June 30
2018 2017 2018 2017
Federal statutory income tax rate 21.0 % 35.0 % 21.0 % 35.0 %
Effect of:
COLI policies (1.9 ) (4.3 ) (2.5 ) (4.3 )
State income taxes 6.2
4.7
5.1
4.3
Flow through depreciation for plant-related differences (5.5 ) 2.9
(2.0 ) 3.3
Federal tax credits (5.5 ) (7.1 ) (7.7 ) (7.0 )
Non-controlling interest (0.3 ) (1.1 ) (0.4 ) (1.1 )
AFUDC equity 0.1
—
(0.1 ) (0.1 )
Amortization of federal investment tax credits (0.6 ) (0.5 ) (0.6 ) (0.5 )
State tax rate change (89.1 ) —
(40.3 ) —
Valuation allowance 1.1
—
1.6
—
Stock compensation (2.9 ) —
(1.9 ) (2.1 )
Other 1.8
2.5
0.6
1.4
Effective income tax rate (75.6 )% 32.1 % (27.2 )% 28.9 %

The decrease in Evergy's state tax rate change for the three months ended and year to date, June 30, 2018, compared to the same periods in 2017, is primarily due to the revaluation of Westar Energy's state deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger.


Evergy
	Three Months Ended June 30				Year to Date June 30
	2023		2022		2023		2022
Federal statutory income tax	21.0	%	21.0	%	21.0	%	21.0	%
COLI policies	(1.3)		(0.5)		(1.3)		(0.5)
State income taxes	—		0.5		0.2		0.8
Flow through depreciation for plant-related differences	(7.1)		(6.0)		(7.4)		(6.1)
Federal tax credits	(6.3)		(4.0)		(5.0)		(3.9)
Non-controlling interest	(0.3)		(0.3)		(0.3)		(0.3)
AFUDC equity	(0.6)		(0.5)		(0.6)		(0.5)
Amortization of federal investment tax credits	(0.6)		(0.2)		(0.6)		(0.2)


Valuation allowance	0.4		—		0.2		—
Stock compensation	—		(0.1)		—		(0.4)
Officer compensation limitation	0.2		0.3		0.2		0.3
Other	0.2		(0.1)		0.2		(0.8)
Effective income tax rate	5.6	%	10.1	%	6.6	%	9.4	%

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Evergy Kansas Central
	Three Months Ended June 30				Year to Date June 30
	2023		2022		2023		2022
Federal statutory income tax	21.0	%	21.0	%	21.0	%	21.0	%
COLI policies	(2.3)		(1.0)		(2.4)		(1.0)
State income taxes	0.7		(1.5)		0.7		0.1
Flow through depreciation for plant-related differences	(2.6)		(3.5)		(3.4)		(4.2)
Federal tax credits	(12.3)		(8.8)		(9.0)		(8.3)
Non-controlling interest	(0.5)		(0.6)		(0.5)		(0.6)
AFUDC equity	(0.4)		(0.7)		(0.5)		(0.7)
Amortization of federal investment tax credits	(0.4)		0.1		(0.4)		0.1



Stock compensation	0.1		(0.2)		(0.1)		(0.4)
Officer compensation limitation	—		0.1		—		—
Other	0.1		(0.2)		0.2		(1.4)
Effective income tax rate	3.4	%	4.7	%	5.6	%	4.6	%


Evergy Metro
	Three Months Ended June 30				Year to Date June 30
	2023		2022		2023		2022
Federal statutory income tax	21.0	%	21.0	%	21.0	%	21.0	%
COLI policies	(0.1)		(0.1)		(0.1)		(0.1)
State income taxes	1.0		0.5		0.9		0.5
Flow through depreciation for plant-related differences	(8.4)		(6.8)		(8.3)		(6.9)
Federal tax credits	(0.2)		(0.2)		(0.2)		(0.2)
AFUDC equity	(0.9)		(0.4)		(0.9)		(0.4)
Amortization of federal investment tax credits	(0.8)		(0.6)		(0.8)		(0.6)



Stock compensation	—		—		0.4		(0.5)
Officer compensation limitation	0.6		0.5		0.6		0.5
Other	(0.1)		(0.1)		(0.2)		—
Effective income tax rate	12.1	%	13.8	%	12.4	%	13.3	%

Westar Energy
Three Months Ended
June 30 Year to Date
June 30
2018 2017 2018 2017
Federal statutory income tax rate 21.0 % 35.0 % 21.0 % 35.0 %
Effect of:
COLI policies (6.9 ) (4.3 ) (4.0 ) (4.3 )
State income taxes 18.8
4.7
7.8
4.3
Flow through depreciation for plant-related differences (11.2 ) 2.9
(2.1 ) 3.3
Federal tax credits (18.1 ) (7.1 ) (11.6 ) (7.0 )
Non-controlling interest (1.1 ) (1.1 ) (0.7 ) (1.1 )
AFUDC equity —
—
(0.1 ) (0.1 )
Amortization of federal investment tax credits (1.3 ) (0.5 ) (0.8 ) (0.5 )
State tax rate change (219.6 ) —
(54.8 ) —
Valuation allowance 0.6
—
1.7
—
Stock compensation (7.2 ) —
(2.6 ) (2.1 )
Other 1.2
2.5
(0.1 ) 1.4
Effective income tax rate (223.8 )% 32.1 % (46.3 )% 28.9 %

The decrease in Westar Energy's state tax rate change for the three months ended and year to date, June 30, 2018, compared to the same periods in 2017, is primarily due to the revaluation of Westar Energy's state deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger.

KCP&L
Three Months Ended
June 30 Year to Date
June 30
2018 2017 2018 2017
Federal statutory income tax rate 21.0 % 35.0 % 21.0 % 35.0 %
Effect of:
COLI policies (0.2 ) (0.3 ) (0.2 ) (0.3 )
State income taxes 5.4
3.8
5.3
3.9
Flow through depreciation for plant-related differences (4.2 ) 0.6
(4.9 ) 0.5
Federal tax credits (1.8 ) (1.8 ) (1.8 ) (1.8 )
AFUDC equity (0.1 ) (0.7 ) (0.2 ) (0.7 )
Amortization of federal investment tax credits (0.4 ) (0.4 ) (0.4 ) (0.4 )
State tax rate change 48.5
—
36.6
—
Stock compensation —
(0.1 ) —
0.3
Other (1.8 ) —
(1.6 ) 0.1
Effective income tax rate 66.4 % 36.1 % 53.8 % 36.6 %

The increase in KCP&L's state tax rate change for the three months ended and year to date, June 30, 2018, compared to the same periods in 2017, is primarily due to the revaluation of KCP&L'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 KCP&L's state deferred income tax assets and liabilities as a result of the enactment of Missouri state income tax reform in June 2018.

~~Federal Tax Reform~~

In December 2017, the U.S. Congress passed and President Donald Trump signed Public Law No. 115-97, commonly referred to as the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act represents the first major reform in U.S. income tax law since 1986. Most notably, the Tax Cuts and Jobs Act reduces the current top corporate income tax rate from 35% to 21% beginning in 2018, repeals the corporate Alternative Minimum Tax (AMT), makes

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existing AMT tax credit carryforwards refundable, and changes the deductibility and taxability of certain items, among other things. Westar Energy, KCP&L and GMO currently recover the cost of income taxes in rates from their customers based on the 35% federal corporate income tax rate.

In January 2018, KCC issued an order requiring certain regulated public utilities, including Westar Energy and KCP&L, to begin recording a regulatory liability for the difference between the new corporate tax rate and amounts currently collected in rates. In May 2018 and June 2018, Westar Energy and KCP&L entered into settlement agreements with KCC staff and other intervenors in which they further agreed to begin deferring any impacts of the Tax Cuts and Jobs Act on their excess accumulated deferred income taxes to a regulatory liability. KCC approved these settlement agreements in June 2018. As outlined in the settlement agreements, the final treatment of these regulatory liabilities will be determined by KCC as part of Westar Energy's and KCP&L's current Kansas rate cases.

As a result of the KCC order and settlement agreements discussed above and the probability that KCP&L and GMO will be required to make similar refunds to their Missouri customers, Evergy, Westar Energy and KCP&L have recorded regulatory liabilities for anticipated refunds to customers as of June 30, 2018 of $93.5 million, $38.2 million and $39.8 million, respectively. The actual regulatory treatment of tax reform and these regulatory liabilities will not be known until orders specifying the treatment are received from KCC and the MPSC and any amounts ultimately refunded to customers could differ from the amounts recorded.

~~Missouri Tax Reform~~

On June 1, 2018, the Missouri governor signed Senate Bill (S.B.) 884 into law. Most notably, S.B. 884 reduces the corporate income tax rate from 6.25% to 4.0% beginning in 2020, provides for the mandatory use of the single sales factor formula and eliminates intercompany transactions between corporations that file a consolidated Missouri income tax return.

As a result of the change in the Missouri corporate income tax rate, KCP&L revalued and restated its deferred income tax assets and liabilities as of June 1, 2018. KCP&L decreased its net deferred income tax liabilities by $46.6 million, primarily consisting of a $28.8 million adjustment for the revaluation and restatement of deferred income tax assets and liabilities included in Missouri jurisdictional rate base and a $9.9 million tax gross-up adjustment for ratemaking purposes. The decrease to KCP&L's net deferred income tax liabilities included in Missouri jurisdictional rate base were offset by a corresponding increase in regulatory liabilities. The net regulatory liabilities will be amortized to customers over a period to be determined in a future rate case.

KCP&L recognized $15.5 million of income tax benefit primarily related to the difference between KCP&L's revaluation of its deferred income tax assets and liabilities for financial reporting purposes and the amount of the revaluation pertaining to KCP&L's Missouri jurisdictional rate base.

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 ~~the Westar Energy First Quarter 2018 Quarterly Report on Form 10-Q, the Great Plains Energy and KCP&L combined First Quarter 2018 Quarterly Report on Form 10-Q, the Westar Energy 2017 Form 10-K~~ and the ~~Great Plains Energy and KCP&L~~Evergy Companies' combined ~~2017~~2022 Form 10-K. None of the registrants make any representation as to information related solely to Evergy, ~~Westar Energy~~Evergy Kansas Central or ~~KCP&L~~Evergy Metro other than itself.

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EVERGY, INC.

EXECUTIVE SUMMARY

Evergy ~~Inc.~~ is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct ~~subsidiaries:~~subsidiaries listed below.

~~Westar Energy~~•Evergy Kansas Central is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. ~~Westar Energy~~Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, ~~KGE.~~Evergy Kansas South.

~~KCP&L~~•Evergy Metro is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas. ~~KCP&L has one active wholly-owned subsidiary, KCP&L Receivables Company.~~

~~GMO~~•Evergy Missouri West is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. ~~GMO also provides regulated steam service to certain customers in the St. Joseph, Missouri area. GMO has one active wholly-owned subsidiary, GMO Receivables Company.~~

~~GPETHC~~•Evergy Transmission Company owns 13.5% of ~~Transource Energy, LLC~~ Transource with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of AEP. Transource is focused on the development of competitive electric transmission projects. ~~GPETHC~~Evergy Transmission Company accounts for its investment in Transource under the equity method.

~~Westar Energy~~Evergy Kansas Central also owns a 50% interest in Prairie Wind, which is a joint venture between ~~Westar Energy~~Evergy Kansas Central and ~~Electric Transmission America, LLC, which itself is a joint venture between affiliates~~subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that ~~is now being used to provide~~provides transmission service in the SPP. ~~Westar Energy~~Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.

~~Great Plains Energy~~Evergy Kansas Central and ~~Westar Energy Merger~~Evergy Metro 2023 Rate Case Proceeding

In April 2023, 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~~Kansas Central and Evergy ~~and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended Merger Agreement. On June 4, 2018, in accordance~~Metro filed an application with the Amended Merger Agreement, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Westar Energy, with Westar Energy surviving the merger. These merger transactions resulted in Evergy becoming the parent entity of Westar Energy and the direct subsidiaries of Great Plains Energy, including KCP&L and GMO. 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 Westar Energy common stock was converted into 1 share of Evergy common stock.

~~Westar Energy was determined~~KCC to be the accounting acquirer and thus, the predecessor of Evergy. Therefore, Evergy's accompanying consolidated financial statements reflect the results of operations of Westar Energy for the three months ended and yearrequest an increase to date June 30, 2017 and the financial position of Westar Energy as of December 31, 2017. Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results of operations from the date of the closing of the merger and thereafter.

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KCP&L has elected not to apply "push-down accounting" related to the merger, whereby the adjustments of assets and liabilities to fair value and the resulting goodwill would be recorded on the financial statements of the acquired subsidiary. These adjustments for KCP&L, as well as those related to the acquired assets and liabilities of Great Plains Energy and its other direct subsidiaries, are reflected at consolidated Evergy.

their retail revenues. See Note 24 to the consolidated financial statements for ~~more information regarding the merger.~~

~~Share Repurchase Program~~

~~Missouri Legislation~~

On June 1, 2018, Missouri S.B. 564 was signed into law by the Governor of Missouri. Most notably, S.B. 564 includes a plant-in service accounting (PISA) provision that can be elected by Missouri electric utilities to defer to a regulatory asset and recover 85% of depreciation expense and associated return on investment for qualifying electric plant rate base additions. Qualifying electric plant includes all rate base additions with the exception of new coal, nuclear or natural gas generating units or rate base additions that increase revenues by allowing service to new customer premises. The deferred depreciation and return in the associated regulatory asset, except for any prudence disallowances, are required to be included in determining the utility's rate base during subsequent general rate proceedings subject to a 3% compound annual growth rate limitation on future electric rates compared with the utility's rates in effect prior to electing PISA. Utilities that elect the PISA provision can make qualifying deferrals of depreciation and return through December 2023, with a potential extension through December 2028 subject to MPSC approval. KCP&L and GMO are currently evaluating the provisions of S.B. 564.

~~Strategy~~

Evergy expects to continue operating its vertically integrated utilities within their existing regulatory frameworks. Evergy's objectives are to deliver value to shareholders through attractive earnings and dividend growth; serve customers and communities with reliable service, clean energy and fewer and lower rate increases; and maintain a rewarding and challenging work environment for employees. Significant elements of Evergy's strategy to achieve these objectives include:

the realization of a total of approximately $600 million of potential net savings from 2018 through 2022 resulting from synergies that are expected to be created as a result of the Westar Energy and Great Plains Energy merger;

~~the repurchase of approximately 60 million outstanding shares of Evergy common stock by mid-2020;~~

~~anticipated rate base investment of approximately $6 billion from 2018 through 2022; and~~

~~the continued growth of Evergy's renewable energy portfolio as the Evergy Companies retire older and less efficient fossil fuel plants.~~

~~See "Cautionary Statements Regarding Certain Forward-Looking Information" and Part II, Item 1A, Risk Factors, for~~ additional information.

Renewable Generation Investment

In August 2022, Evergy Missouri West entered into an agreement with a renewable energy development company to purchase Persimmon Creek, an operational wind farm located in the state of Oklahoma with a generating capacity of approximately 199 MW, for approximately $250 million. Pursuant to the agreement, Evergy Missouri West was permitted to assign its right to purchase Persimmon Creek to another entity, including to other Evergy affiliated companies.

Evergy Missouri West's purchase was subject to regulatory approvals and closing conditions, including the granting of a CCN by the MPSC. In April 2023, the MPSC issued a final order granting the CCN pursuant to certain conditions related to the sharing of operational costs between ratepayers and shareholders. In May 2023, Evergy Missouri West assigned its right to purchase Persimmon Creek to Evergy Kansas Central and Evergy Kansas Central closed on the purchase of Persimmon Creek for $220.9 million, including costs incidental to the purchase of the plant. Evergy Kansas Central included the purchase of Persimmon Creek in its rate case application to the KCC which was filed in April 2023. The addition of Persimmon Creek is consistent with the preferred plan identified through Evergy Kansas Central’s integrated resource plan filed with the KCC in June 2023, which identified it as part of the lowest-cost resource plan to serve customers. See Note 4 to the consolidated financial statements for additional information on Evergy Kansas Central's rate case proceeding.

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~~Earnings Overview~~

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

Three Months Ended
June 30

Year to Date
June 30
2018 2017 Change 2018 2017 Change
(millions, except per share amounts)
Net income attributable to Evergy, Inc. $ 101.8
$ 72.1
$ 29.7
$ 162.3
$ 131.7
$ 30.6
Earnings per common share, diluted 0.56
0.50
0.06
1.00
0.92
0.08

Net income and diluted EPS increased for the three months ended and year to date June 30, 2018, compared to the same periods in 2017, primarily due to the inclusion of KCP&L's and GMO's earnings beginning in June 2018, higher Westar Energy retail sales driven by favorable weather and lower income tax expense, partially offset by merger-related costs and reductions of revenue for customer bill credits incurred in June 2018 following the consummation of the merger.

In addition, a higher number of diluted weighted average common shares outstanding due to the issuance of common shares to Great Plains Energy shareholders as a result of the merger diluted earnings per share by $0.15 and $0.14 for the three months ended and year to date June 30, 2018, respectively.

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

Regulatory Proceedings

See Note 54 to the consolidated financial statements for information regarding regulatory proceedings.

~~Impact of Recently Issued Accounting Standards~~

~~See Note 1 to the consolidated financial statements for information regarding the impact of recently issued accounting standards.~~

Wolf Creek Refueling Outage

Wolf Creek's most recent refueling outage began in ~~March 2018~~October 2022 and the unit returned to service in ~~May 2018.~~November 2022. Wolf Creek's next refueling outage is planned to begin in the ~~third~~first quarter of ~~2019.~~2024.

~~ENVIRONMENTAL MATTERS~~

~~See Note 12 to the consolidated financial statements for information regarding environmental matters.~~

~~RELATED PARTY TRANSACTIONS~~

~~See Note 14 to the consolidated financial statements for information regarding related party transactions.~~

~~CRITICAL ACCOUNTING POLICIES AND ESTIMATES~~

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Management considers an accounting estimate to be critical if it requires assumptions to be made that were uncertain at the time the estimate was made and changes in the estimate or different estimates that could have been used could have a material impact on Evergy's results of operations and financial position. The accounting policies and estimates that Evergy believes were the most critical in nature were reported in the Westar Energy 2017 Form 10-K and the Great Plains Energy and KCP&L combined 2017 Form 10-K. There have been no material changes with regard to these critical accounting policies and estimates.

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~~EVERGY RESULTS OF OPERATIONS~~

Evergy's results of operations and financial position are affected by a variety of factors including rate regulation, fuel costs, weather, customer behavior and demand, the economy and competitive forces.

Substantially all of Evergy's revenues are subject to state or federal regulation. This regulation has a significant impact on the price the Evergy Companies charge for electric service. Evergy's results of operations and financial position are affected by its ability to align overall spending, both operating and capital, within the frameworks established by its regulators.

Wholesale revenues are impacted by, among other factors, demand, cost and availability of fuel and purchased power, price volatility, available generation capacity, transmission availability and weather.

The Evergy Companies primarily use coal and nuclear fuel for the generation of electricity for their customers and also purchase power on the open market. The prices for these commodities can fluctuate significantly due to a variety of factors including supply, demand, weather and the broader economic environment. Westar Energy, KCP&L and GMO have fuel recovery mechanisms in their Kansas and Missouri jurisdictions, as applicable, that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in net energy costs from the amount set in base rates without a general rate case proceeding.

Weather significantly affects the amount of electricity that Evergy's customers use as electricity sales are seasonal. As summer peaking utilities, the third quarter typically accounts for the greatest electricity sales by the Evergy Companies. Hot summer temperatures and cold winter temperatures prompt more demand, especially among residential and commercial customers, and to a lesser extent, industrial customers. Mild weather reduces customer demand.

Energy efficiency investments by customers and the Evergy Companies also can affect the demand for electric service. Through the Missouri Energy Efficiency Investment Act (MEEIA), KCP&L and GMO offer energy efficiency and demand side management programs to their Missouri retail customers and recover program costs, throughput disincentive and as applicable, certain performance incentives in retail rates through a rider mechanism.Earnings Overview

The following table summarizes Evergy's ~~comparative results~~net income and diluted EPS.


	Three Months Ended June 30						Year to Date June 30
	2023		Change		2022		2023		Change		2022
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	179.1	$	(15.4)	$	194.5	$	321.7	$	4.7	$	317.0
Earnings per common share, diluted	0.78		(0.06)		0.84		1.40		0.02		1.38

Net income attributable to Evergy, Inc. decreased for the three months ended June 30, 2023, compared to the same period in 2022, primarily due to higher depreciation expense, higher interest expense and lower retail sales in the second quarter of ~~operations.~~2023 driven by unfavorable weather; partially offset by lower operating and maintenance expenses, new Evergy Metro and Evergy Missouri West retail rates effective in January 2023 and lower income tax expense.

Diluted EPS decreased for the three months ended June 30, 2023, compared to the same period in 2022, primarily due to the decrease in net income attributable to Evergy, Inc. discussed above.

Net income attributable to Evergy, Inc. increased year to date June 30, 2023, compared to the same period in 2022, primarily due to lower operating and maintenance expenses, new Evergy Metro and Evergy Missouri West retail rates effective in January 2023, a realized loss in 2022 from an equity investment, higher interest income and lower income tax expense; partially offset by higher depreciation expense, higher interest expense and lower retail sales in 2023 driven by unfavorable weather.

Diluted EPS increased year to date June 30, 2023, compared to the same period in 2022, primarily due to the increase in net income attributable to Evergy, Inc. discussed above.

For additional information regarding the change in net income, refer to the Evergy Results of Operations section within this MD&A.

Three Months Ended
June 30

Year to Date
June 30
2018 2017 Change 2018 2017 Change
(millions)
Operating revenues $ 893.4
$ 609.3
$ 284.1
$ 1,493.6
$ 1,181.9
$ 311.7
Fuel and purchased power 229.7
111.8
117.9
365.2
225.6
139.6
SPP network transmission costs 68.4
61.8
6.6
136.0
122.4
13.6
Other operating expenses 340.4
181.5
158.9
524.3
359.6
164.7
Depreciation and amortization 128.0
94.0
34.0
217.7
182.7
35.0
Income from operations 126.9
160.2
(33.3 ) 250.4
291.6
(41.2 )
Other income (expense) (10.5 ) (6.1 ) (4.4 ) (19.4 ) (13.8 ) (5.6 )
Interest expense 58.4
43.7
14.7
102.2
84.8
17.4
Income tax expense (benefit) (45.0 ) 35.9
(80.9 ) (35.8 ) 56.8
(92.6 )
Equity in earnings of equity method investees, net of income taxes 1.4
1.5
(0.1 ) 2.7
3.3
(0.6 )
Net income 104.4
76.0
28.4
167.3
139.5
27.8
Less: Net income attributable to noncontrolling interests 2.6
3.9
(1.3 ) 5.0
7.8
(2.8 )
Net income attributable to Evergy, Inc. $ 101.8
$ 72.1
$ 29.7
$ 162.3
$ 131.7
$ 30.6

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Non-GAAP Measures

Evergy Utility Gross Margin ~~and MWh Sales~~(non-GAAP)

Utility gross margin (non-GAAP) is a financial measure that is not calculated in accordance with GAAP. Utility gross margin (non-GAAP), as used by the Evergy Companies, is defined as operating revenues less fuel and purchased power costs and amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power costs, offset by wholesale sales margin, are subject to recovery through cost adjustment mechanisms. As a result, changes in fuel and purchased power costs are offset in operating revenues with minimal impact on net income. In addition, SPP network transmission costs fluctuate primarily due to investments by SPP members for upgrades to the transmission grid within the SPP ~~Regional Transmission Organization (RTO).~~RTO. As with fuel and purchased power costs, changes in SPP network transmission costs are mostly reflected in the prices charged to customers with minimal impact on net income. The Evergy Companies' definition of utility gross margin (non-GAAP) may differ from similar terms used by other companies.

Utility gross margin (non-GAAP) is intended to aid an investor's overall understanding of results. Management believes that utility gross margin (non-GAAP) provides a meaningful basis for evaluating the Evergy Companies'

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operations across periods ~~compared with operating revenues~~ because utility gross margin (non-GAAP) excludes the revenue effect of fluctuations in ~~these expenses.~~fuel and purchased power costs and SPP network transmission costs. Utility gross margin (non-GAAP) is used internally to measure performance against budget and in reports for management and the Evergy Board. ~~The Evergy Companies'~~Utility gross margin (non-GAAP) should be viewed as a supplement to, and not a substitute for, gross margin, which is the most directly comparable financial measure prepared in accordance with GAAP. Gross margin under GAAP is defined as the excess of sales over cost of goods sold.

Utility gross margin (non-GAAP) differs from the GAAP definition of ~~utility~~ gross margin ~~may differ from similar terms used by other companies.~~

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

Revenues and Costs MWhs Sold
Three Months Ended June 30 2018 2017 Change 2018 2017 Change
Retail revenues (millions) (thousands)
Residential $ 342.0
$ 181.6
$ 160.4
3,326
1,393
1,933
Commercial 259.1
175.7
83.4
3,695
1,814
1,881
Industrial 108.6
104.1
4.5
1,852
1,422
430
Other retail revenues 6.4
7.3
(0.9 ) 29
25
4
Total electric retail 716.1
468.7
247.4
8,902
4,654
4,248
Wholesale revenues 89.7
68.8
20.9
3,004
1,993
1,011
Transmission revenues 75.1
71.5
3.6
N/A
N/A
N/A
Other revenues 12.5
0.3
12.2
N/A
N/A
N/A
Operating revenues 893.4
609.3
284.1
11,906
6,647
5,259
Fuel and purchased power (229.7 ) (111.8 ) (117.9 )
SPP network transmission costs (68.4 ) (61.8 ) (6.6 )
Utility gross margin ^(a)
$ 595.3
$ 435.7
$ 159.6

^(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.

Revenues and Costs MWhs Sold
Year to Date June 30 2018 2017 Change 2018 2017 Change
Retail revenues (millions) (thousands)
Residential $ 522.3
$ 350.9
$ 171.4
4,798
2,747
2,051
Commercial 414.5
325.3
89.2
5,392
3,432
1,960
Industrial 202.1
198.7
3.4
3,211
2,756
455
Other retail revenues 10.6
12.3
(1.7 ) 43
44
(1 )
Total electric retail 1,149.5
887.2
262.3
13,444
8,979
4,465
Wholesale revenues 183.9
152.7
31.2
5,905
4,484
1,421
Transmission revenues 147.0
142.2
4.8
N/A
N/A
N/A
Other revenues 13.2
(0.2 ) 13.4
N/A
N/A
N/A
Operating revenues 1,493.6
1,181.9
311.7
19,349
13,463
5,886
Fuel and purchased power (365.2 ) (225.6 ) (139.6 )
SPP network transmission costs (136.0 ) (122.4 ) (13.6 )
Utility gross margin ^(a)
$ 992.4
$ 833.9
$ 158.5

^(a)Utilitygross margin is a non-GAAP financial measure. See explanation of utility gross margin above.

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~~Evergy's utility gross margin increased $159.6 million for the three months ended June 30, 2018, compared to the same period in 2017 driven by:~~

~~a $170.8 million increase~~ due to the ~~inclusion~~exclusion of ~~KCP&L's and GMO's utility gross margin beginning in June 2018; and~~

a $34.6 million increase primarily due to higher Westar Energy retail sales driven by warmer spring weather. For the three months ended June 30, 2018, compared to the same period in 2017, cooling degree days increased 73%; partially offset by

a $26.7 million obligation recorded at Westar Energy for one-time and annual bill credits as a result of conditions in the KCC merger order. See Note 2 to the consolidated financial statements for additional information; and

a $19.1 million refund obligation recorded at Westar Energy for the change in the corporate income tax rate caused by the passage of the Tax Cuts and Jobs Act. See Note 17 to the consolidated financial statements for additional information.

~~Evergy's utility gross margin increased $158.5 million year to date June 30, 2018, compared to the same period in 2017 driven by:~~

~~a $170.8 million increase due to the inclusion of KCP&L's and GMO's utility gross margin beginning in June 2018; and~~

a $52.6 million increase primarily due to higher Westar Energy retail sales driven by warmer spring weather and colder winter weather. For year to date June 30, 2018, compared to the same period in 2017, cooling degree days increased 69% and heating degree days increased 27%; partially offset by

a $38.2 million refund obligation recorded at Westar Energy for the change in the corporate income tax rate caused by the passage of the Tax Cuts and Jobs Act. See Note 17 to the consolidated financial statements for additional information; and

~~Other Operating Expenses~~ ~~(including~~ operating and maintenance ~~expense~~expenses determined to be directly attributable to revenue-producing activities, depreciation and amortization and taxes other than income ~~tax)~~tax. See the Evergy Companies' Results of Operations for a reconciliation of utility gross margin (non-GAAP) to gross margin, the most comparable GAAP measure.

Adjusted Earnings (non-GAAP) and Adjusted EPS (non-GAAP)

Management believes that adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are representative measures of Evergy's ~~other operating expenses increased $158.9 million~~recurring earnings, assists in the comparability of results and ~~$164.7 million~~is consistent with how management reviews performance. Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended and year to date June 30, ~~2018, respectively, compared~~2022 have been recast, as applicable, to conform to the ~~same~~current year presentation.

Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended and year to date June 30, 2023 were $186.1 million or $0.81 per share and $322.2 million or $1.40 per share, respectively. For the three months ended and year to date June 30, 2022, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $194.5 million or $0.84 per share and $324.4 million or $1.41 per share, respectively.

In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without i.) the costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event; ii.) gains or losses related to equity investments subject to a restriction on sale; iii.) the revenues collected from customers for the return on investment of the retired Sibley Station in 2022 for future refunds to customers; iv.) the mark-to-market impacts of economic hedges related to Evergy Kansas Central's non-regulated 8% ownership share of JEC; v.) costs resulting from advisor expenses; and vi.) the transmission revenues collected from customers in 2022 through Evergy Kansas Central's FERC TFR to be refunded to customers in accordance with a December 2022 FERC order and vii.) the second quarter 2023 deferral of the cumulative amount of prior year revenues collected since October 2019 for costs related to an electric subdivision rebate program to be refunded to customers in accordance with a June 2020 KCC order.

Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to aid an investor's overall understanding of results. Management believes that adjusted earnings (non-GAAP) provides a meaningful basis for evaluating Evergy's operations across periods because it excludes certain items that management does not believe are indicative of Evergy's ongoing performance or that can create period to period earnings volatility.

Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are used internally to measure performance against budget and in ~~2017 primarily driven by:~~reports for management and the Evergy Board. Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report.

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The following tables provide a ~~$61.7 million increase~~reconciliation between net income attributable to Evergy, Inc. and diluted EPS as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP), respectively.


	Earnings (Loss)		Earnings (Loss) per Diluted Share		Earnings (Loss)		Earnings (Loss) per Diluted Share
Three Months Ended June 30	2023				2022
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	179.1	$	0.78	$	194.5	$	0.84
Non-GAAP reconciling items:

Sibley Station return on investment, pre-tax(a)	—		—		(3.1)		(0.01)
Mark-to-market impact of JEC economic hedges, pre-tax(b)	6.4		0.03		—		—
Non-regulated energy marketing costs related to February 2021 winter weather event, pre-tax(c)	0.1		—		0.3		—


Advisor expenses, pre-tax(d)	—		—		2.5		0.01


Restricted equity investment losses, pre-tax(e)	—		—		2.1		0.01
TFR refund, pre-tax(f)	—		—		(1.9)		(0.01)
Electric subdivision rebate program costs refund, pre-tax(g)	2.6		0.01		—		—
Income tax expense (benefit)(h)	(2.1)		(0.01)		0.1		—

Adjusted earnings (non-GAAP)	$	186.1	$	0.81	$	194.5	$	0.84

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	Earnings (Loss)		Earnings (Loss) per Diluted Share		Earnings (Loss)		Earnings (Loss) per Diluted Share
Year to Date June 30	2023				2022
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	321.7	$	1.40	$	317.0	$	1.38
Non-GAAP reconciling items:

Sibley Station return on investment, pre-tax(a)	—		—		(6.2)		(0.03)
Mark-to-market impact of JEC economic hedges, pre-tax(b)	(2.0)		(0.01)		—		—
Non-regulated energy marketing costs related to February 2021 winter weather event, pre-tax(c)	0.2		—		0.6		—


Advisor expenses, pre-tax(d)	—		—		2.5		0.01


Restricted equity investment losses, pre-tax(e)	—		—		16.3		0.07
TFR refund, pre-tax(f)	—		—		(3.8)		(0.02)
Electric subdivision rebate program costs refund, pre-tax(g)	2.6		0.01		—		—
Income tax (benefit) expense (h)	(0.3)		—		(2.0)		—

Adjusted earnings (non-GAAP)	$	322.2	$	1.40	$	324.4	$	1.41

(a)Reflects revenues collected from customers for the return on investment of the retired Sibley Station in 2022 that are included in operating revenues on the consolidated statements of comprehensive income.

(b)Reflects mark-to-market gains or losses related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's non-regulated 8% ownership share of JEC that are included in operating revenues on the consolidated statements of comprehensive income.

(c)Reflects non-regulated energy marketing incentive compensation costs related to the February 2021 winter weather event that are included in operating and maintenance expense on the consolidated statements of comprehensive income.

(d) Reflects advisor expenses incurred associated with strategic planning and are included in operating and maintenance expense on the consolidated statements of comprehensive income.

(e)Reflects losses related to equity investments which were subject to a restriction on sale that are included in investment earnings on the consolidated statements of comprehensive income.

(f)Reflects transmission revenues collected from customers in 2022 through Evergy Kansas Central's FERC TFR to be refunded to customers in accordance with a December 2022 FERC order that are included in operating revenues on the consolidated statements of comprehensive income.

(g)Reflects the second quarter 2023 deferral of the cumulative amount of prior year revenues collected since October 2019 for costs related to an electric subdivision rebate program to be refunded to customers in accordance with a June 2020 KCC order that are included in operating revenues on the consolidated statements of comprehensive income.

(h)Reflects an income tax effect calculated at a statutory rate of approximately 22%.

ENVIRONMENTAL MATTERS

See Note 11 to the consolidated financial statements for information regarding environmental matters.

RELATED PARTY TRANSACTIONS

See Note 12 to the consolidated financial statements for information regarding related party transactions.

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EVERGY RESULTS OF OPERATIONS

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


	Three Months Ended June 30						Year to Date June 30
	2023		Change		2022		2023		Change		2022
	(millions)
Operating revenues	$	1,354.2	$	(92.3)	$	1,446.5	$	2,651.0	$	(19.4)	$	2,670.4
Fuel and purchased power	344.8		(69.5)		414.3		699.0		(24.3)		723.3
SPP network transmission costs	75.4		(6.1)		81.5		156.6		(3.6)		160.2
Operating and maintenance	227.6		(55.2)		282.8		443.9		(91.1)		535.0
Depreciation and amortization	269.4		37.3		232.1		532.8		71.7		461.1
Taxes other than income tax	100.4		0.1		100.3		202.8		0.6		202.2

Income from operations	336.6		1.1		335.5		615.9		27.3		588.6
Other expense, net	(11.7)		6.2		(17.9)		(11.7)		32.5		(44.2)
Interest expense	133.7		34.4		99.3		256.8		65.7		191.1
Income tax expense	10.8		(11.3)		22.1		23.2		(10.4)		33.6
Equity in earnings of equity method investees, net of income taxes	1.8		0.4		1.4		3.7		0.2		3.5
Net income	182.2		(15.4)		197.6		327.9		4.7		323.2
Less: Net income attributable to noncontrolling interests	3.1		—		3.1		6.2		—		6.2
Net income attributable to Evergy, Inc.	$	179.1	$	(15.4)	$	194.5	$	321.7	$	4.7	$	317.0

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Gross Margin (GAAP) and Utility Gross Margin (non-GAAP)

The following table summarizes Evergy's gross margin (GAAP) and MWhs sold and reconciles Evergy's gross margin (GAAP) to Evergy's utility gross margin (non-GAAP). See "Executive Summary - Non-GAAP Measures", above for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).


	Revenues and Expenses						MWhs Sold
Three Months Ended June 30	2023		Change		2022		2023	Change	2022
Retail revenues	(millions)						(thousands)
Residential	$	492.7	$	(20.7)	$	513.4	3,616	(138)	3,754
Commercial	460.7		(4.8)		465.5		4,438	50	4,388
Industrial	157.3		(12.8)		170.1		2,118	(89)	2,207
Other retail revenues	8.9		(0.9)		9.8		31	(2)	33
Total electric retail	1,119.6		(39.2)		1,158.8		10,203	(179)	10,382
Wholesale revenues	83.1		3.6		79.5		3,498	(874)	4,372
Transmission revenues	100.5		(0.5)		101.0		N/A	N/A	N/A
Other revenues	51.0		(56.2)		107.2		N/A	N/A	N/A
Operating revenues	1,354.2		(92.3)		1,446.5		13,701	(1,053)	14,754
Fuel and purchased power	(344.8)		69.5		(414.3)
SPP network transmission costs	(75.4)		6.1		(81.5)
Operating and maintenance(a)	(121.1)		19.9		(141.0)
Depreciation and amortization	(269.4)		(37.3)		(232.1)
Taxes other than income tax	(100.4)		(0.1)		(100.3)
Gross margin (GAAP)	443.1		(34.2)		477.3
Operating and maintenance(a)	121.1		(19.9)		141.0
Depreciation and amortization	269.4		37.3		232.1
Taxes other than income tax	100.4		0.1		100.3
Utility gross margin (non-GAAP)	$	934.0	$	(16.7)	$	950.7
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $106.5 million and $141.8 million for the three months ended June 30, 2023 and 2022, respectively.

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	Revenues and Expenses						MWhs Sold
Year to Date June 30	2023		Change		2022		2023	Change	2022
Retail revenues	(millions)						(thousands)
Residential	$	951.3	$	(13.9)	$	965.2	7,357	(332)	7,689
Commercial	890.7		22.1		868.6		8,749	105	8,644
Industrial	316.4		(4.0)		320.4		4,182	(138)	4,320
Other retail revenues	20.2		1.4		18.8		62	(3)	65
Total electric retail	2,178.6		5.6		2,173.0		20,350	(368)	20,718
Wholesale revenues	153.5		22.1		131.4		7,046	(1,226)	8,272
Transmission revenues	206.3		7.3		199.0		N/A	N/A	N/A
Other revenues	112.6		(54.4)		167.0		N/A	N/A	N/A
Operating revenues	2,651.0		(19.4)		2,670.4		27,396	(1,594)	28,990
Fuel and purchased power	(699.0)		24.3		(723.3)
SPP network transmission costs	(156.6)		3.6		(160.2)
Operating and maintenance(a)	(239.3)		33.1		(272.4)
Depreciation and amortization	(532.8)		(71.7)		(461.1)
Taxes other than income tax	(202.8)		(0.6)		(202.2)
Gross margin (GAAP)	820.5		(30.7)		851.2
Operating and maintenance(a)	239.3		(33.1)		272.4
Depreciation and amortization	532.8		71.7		461.1
Taxes other than income tax	202.8		0.6		202.2
Utility gross margin (non-GAAP)	$	1,795.4	$	8.5	$	1,786.9
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $204.6 million and $262.6 million year to date June 30, 2023 and 2022, respectively.

Evergy's gross margin (GAAP) decreased $34.2 million for the three months ended June 30, 2023, compared to the same period in 2022 and Evergy's utility gross margin (non-GAAP) decreased $16.7 million for the three months ended June 30, 2023, compared to the same period in 2022, both measures were driven by:

•an $18.8 million decrease primarily due to lower retail sales driven by unfavorable weather (cooling degree days decreased by 13%); partially offset by higher weather-normalized residential and commercial demand;

•a $6.4 million decrease due to mark-to-market losses related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's non-regulated 8% ownership share of JEC; and

•a $5.1 million decrease in operating revenue related to non-regulated energy marketing activity at Evergy Kansas Central; partially offset by

•a $13.6 million increase from new Evergy Metro and Evergy Missouri West retail rates effective in January 2023.

Additionally, the ~~inclusion of KCP&L's~~decrease in Evergy's gross margin (GAAP) was also driven by:

•a $37.3 million increase in depreciation and ~~GMO's~~amortization as further described below; partially offset by

•a $19.9 million decrease in operating and maintenance expenses ~~beginning~~which are determined to be directly attributable to revenue producing activities primarily driven by a $8.5 million decrease in ~~June 2018, excluding the deferral of merger transition costs discussed below;~~plant operating and maintenance expense at fossil-fuel generating units and a $6.9 million decrease in transmission and distribution operating and maintenance expenses as further described below.

~~$57.5 million of merger-related costs incurred in June 2018, consisting of:~~


◦	~~$24.7 million of unconditional charitable contributions and community support recorded by Evergy in accordance with conditions in the KCC and MPSC merger orders;~~


◦	$39.9 million of Westar Energy 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 Westar Energy equity compensation awards in accordance with the Amended Merger Agreement; and


◦	~~$40.7 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; 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 Westar Energy, KCP&L and GMO in accordance with the KCC and MPSC merger orders;

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Evergy's gross margin (GAAP) decreased $30.7 million year to date June 30, 2023, compared to the same period in 2022 and Evergy's utility gross margin (non-GAAP) increased $8.5 million year to date June 30, 2023, compared to the same period in 2022, both measures were driven by:

•a $27.5 million decrease primarily due to lower retail sales driven by unfavorable weather (cooling degree days decreased by 13% and heating degree days decreased by 13%), partially offset by higher weather-normalized residential and commercial demand; partially offset by

•a $25.4 million increase from new Evergy Metro and Evergy Missouri West retail rates effective in January 2023;

•a $7.3 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2023 and revised in March 2023;

•a $2.0 million increase due to mark-to-market gains related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's non-regulated 8% ownership share of JEC; and

•a $1.3 million increase in operating revenue related to non-regulated energy marketing activity at Evergy Kansas Central.

Additionally, the decrease in Evergy's gross margin (GAAP) was also driven by:

•a $71.7 million increase in depreciation and amortization as further described below; partially offset by

•a $33.1 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $13.7 million decrease in plant and operating and maintenance expense at fossil-fuel generating units, a $9.4 million decrease in transmission and distribution operating and maintenance expenses and a $6.9 million decrease in plant operating and maintenance expense at Wolf Creek as further described below.

Operating and Maintenance

Evergy's operating and maintenance expense decreased $55.2 million for the three months ended June 30, 2023, compared to the same period in 2022, primarily driven by:

•a $19.5 million decrease in administrative labor and employee benefits expenses primarily due to lower employee headcount in 2023;

•an $8.5 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily due to a $4.9 million decrease at Evergy Kansas Central driven by a major maintenance outage at JEC in 2022 and a $2.7 million decrease at Evergy Metro driven by a major maintenance outage at Iatan Station Unit 1 in 2022; partially offset by a major maintenance outage at Hawthorn Station in 2023;

•a $6.9 million decrease in transmission and distribution operating and maintenance expenses primarily at Evergy Kansas Central and Evergy Metro driven by lower labor expense primarily due to an increase in labor capitalization and lower employee headcount;

•a $4.2 million decrease in various administrative and general operating and maintenance expenses primarily due to lower regulatory amortizations at Evergy Metro and Evergy Missouri West as a result of their 2022 rate cases; and

•$~~12.3~~2.5 million of obsolete inventory write-offs for Westar Energy'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 are expected to be retiredadvisor expenses incurred in the second ~~half~~quarter of ~~2018;~~2022 associated with strategic planning.

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Evergy's operating and maintenance expense decreased $91.1 million year to date June 30, 2023, compared to the same period in 2022, primarily driven by:

•a ~~$13.9~~$32.8 million decrease in administrative labor and employee benefits expenses primarily due to lower employee headcount in 2023;

•a $13.7 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily due to an $8.6 million decrease at Evergy Kansas Central driven by major maintenance outages at JEC in 2022 and a $3.0 million decrease at Evergy Metro driven by major maintenance outages at Iatan Station Unit 1 and LaCygne Unit 2 in 2022; partially offset by a major maintenance outage at Hawthorn Station in 2023;

•a $10.1 million decrease in various administrative and general operating and maintenance expenses primarily due to lower regulatory amortizations at Evergy Metro and Evergy Missouri West as a result of their 2022 rate cases;

•a $9.4 million decrease in transmission and distribution operating and maintenance expenses primarily at Evergy Kansas Central and Evergy Metro driven by lower labor expense primarily due to an increase in labor capitalization and lower employee headcount; partially offset by a $5.3 million increase in ~~taxes other than income taxes~~vegetation management costs;

•a $6.9 million decrease in plant operating and maintenance expense at Wolf Creek at Evergy Kansas Central and Evergy Metro primarily due to ~~the inclusion~~lower refueling outage amortization in 2023 and lower labor expense in 2023 driven by an increase in labor capitalization and lower employee headcount; and

•$2.5 million of ~~KCP&L~~advisor expenses incurred in 2022 associated with strategic planning; partially offset by

•a $3.7 million increase in property insurance expense due to a lower annual refund of nuclear insurance premiums received by Evergy Kansas Central and ~~GMO amounts beginning~~Evergy Metro in ~~June 2018.~~2023 related to their ownership interest in Wolf Creek.

Depreciation and Amortization

Evergy's depreciation and amortization increased ~~$34.0 million and $35.0~~$37.3 million for the three months ended June 30, 2023, compared to the same period in 2022, primarily driven by:

•a $19.1 million increase primarily due to a change in depreciation rates and the rebasing of plant-in-service-accounting (PISA) depreciation deferrals as a result of Evergy Metro's and Evergy Missouri West's 2022 rate cases effective in January 2023; and

•an $18.2 million increase primarily due to capital additions.

Evergy's depreciation and amortization increased $71.7 million year to date June 30, ~~2018, respectively,~~2023, compared to the same periods in ~~2017~~2022, primarily driven by:

•a $37.7 million increase primarily due to a change in depreciation rates and the rebasing of PISA depreciation deferrals as a result of Evergy Metro's and Evergy Missouri West's 2022 rate cases effective in January 2023; and

•a $34.0 million increase primarily due to capital additions.

Other Expense, Net

Evergy's other expense, net decreased $6.2 million for the three months ended June 30, 2023, primarily driven by:

•a $4.5 million increase in interest and dividend income primarily due to an increase in carrying charges related to Evergy Missouri West's costs associated with the February 2021 winter weather event expected to be recovered through securitization financing.

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Evergy's other expense, net decreased $32.5 million year to date June 30, 2023, compared to the same period in 2022, primarily driven by:

•a $26.3 million decrease due to higher investment earnings primarily driven by a ~~$32.0~~$16.3 million loss related to Evergy's equity investment in an early-stage energy solutions company that was sold in March 2022 through a share forward agreement which was completed in June 2022, a $10.3 million increase in interest and dividend income primarily due to an increase in carrying charges related to Evergy Missouri West's costs associated with the February 2021 winter weather event expected to be recovered through securitization financing and a $5.7 million increase due to net unrealized losses becoming net unrealized gains in Evergy Kansas Central's rabbi trust; partially offset by a $6.4 million decrease in unrealized gains due to the ~~inclusion~~change in fair value related to other equity investments; and

•an $8.1 million decrease due to recording higher Evergy Kansas Central corporate-owned life insurance (COLI) benefits in 2023; partially offset by

•$8.0 million of ~~KCP&L's~~lower equity allowance for funds used during construction (AFUDC) primarily at Evergy Kansas Central and ~~GMO's depreciation expense beginning~~Evergy Metro primarily driven by higher short-term debt balances in ~~June 2018.~~2023.

Interest Expense

Evergy's interest expense increased ~~$14.7 million and $17.4~~$34.4 million for the three months ended June 30, 2023, compared to the same period in 2022, primarily driven by a $26.8 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates for Evergy Kansas Central, Evergy Metro and Evergy Missouri West in 2023.

Evergy's interest expense increased $65.7 million year to date June 30, ~~2018, respectively,~~2023, compared to the same ~~periods~~period in ~~2017~~2022, primarily driven by a ~~$14.0~~$54.3 million increase in interest expense on short-term borrowings primarily due to ~~the inclusion of KCP&L's~~higher short-term debt balances and ~~GMO's~~weighted-average interest ~~expense beginning~~rates for Evergy Kansas Central, Evergy Metro and Evergy Missouri West in ~~June 2018 and Evergy's assumption of Great Plains Energy's $350.0 million of 4.850% unsecured Senior Notes and $287.5 million of 5.292% unsecured Senior Notes upon the consummation of the merger.~~2023.

Income Tax Expense

Evergy's income tax expense decreased ~~$80.9~~$11.3 million for the three months ended June 30, ~~2018,~~2023, compared to the same period in ~~2017~~2022, primarily driven by:

•a ~~$52.6~~$5.9 million decrease ~~related~~primarily due to Evergy Metro and Evergy Missouri West lower pre-tax income in the ~~revaluation~~second quarter of ~~Westar Energy's deferred income tax assets~~2023; and ~~liabilities based on the Evergy composite tax rate as~~

•a ~~result of the merger;~~

~~a $35.7~~$3.8 million decrease due to ~~lower Westar Energy pre-tax income;~~higher wind and

~~a $2.8 million decrease in Westar Energy's~~ other income tax ~~expense as a result of the decrease~~credits in the ~~federal statutory income tax rate in 2018; partially offset by~~

~~an $8.7 million increase as a result~~second quarter of ~~the inclusion of income tax expense related to the subsidiaries of Great Plains Energy beginning in June 2018.~~2023.

Evergy's income tax expense decreased ~~$92.6~~$10.4 million year to date June 30, ~~2018,~~2023, compared to the same period in ~~2017~~2022, primarily driven by:

•a ~~$52.6~~$4.3 million decrease ~~related~~primarily due to ~~the revaluation~~higher amortization of ~~Westar Energy's~~excess deferred income ~~tax assets and liabilities based on the Evergy composite tax rate as~~ taxes authorized by FERC in December 2022;

•a ~~result of the merger;~~

~~a $40.6~~$3.0 million decrease primarily due to higher expected COLI proceeds in 2023; and

•a $1.3 million decrease primarily due to lower ~~Westar Energy~~Evergy Metro and Evergy Missouri West pre-tax ~~income; and~~income in 2023.

~~a $12.2 million decrease in Westar Energy's income tax expense as a result of the decrease in the federal statutory income tax rate in 2018; partially offset by~~

~~an $8.7 million increase as a result of the inclusion of income tax expense related to the subsidiaries of Great Plains Energy beginning in June 2018.~~

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~~EVERGY SIGNIFICANT BALANCE SHEET CHANGES~~

~~(June 30, 2018 compared to December 31, 2017)~~

~~The following table summarizes Evergy's significant balance sheet changes.~~

Total
Change
Change Due to Merger
Remaining
Change
Assets (in millions)
Cash and cash equivalents $ 1,276.7
$ 1,154.2
$ 122.5
Accounts receivable, net 198.0
155.6
42.4
Accounts receivable pledged as collateral 195.0
180.0
15.0
Fuel inventories and supplies 246.3
271.5
(25.2 )
Regulatory assets - current 248.2
207.8
40.4
Prepaid expenses and other assets 46.1
41.5
4.6
Property, plant and equipment, net 9,266.1
9,179.7
86.4
Property, plant and equipment of variable interest entities, net (3.6 ) —
(3.6 )
Regulatory assets 852.5
829.1
23.4
Nuclear decommissioning trust 261.1
261.3
(0.2 )
Goodwill 2,333.7
2,333.7
—
Other 114.8
145.5
(30.7 )
Liabilities
Current maturities of long-term debt 819.3
415.3
404.0
Current maturities of long-term debt of variable interest entities 1.8
—
1.8
Notes payable and commercial paper 803.6
561.0
242.6
Collateralized note payable 195.0
180.0
15.0
Accounts payable 123.4
191.4
(68.0 )
Accrued dividends (53.8 ) —
(53.8 )
Accrued taxes 122.6
82.0
40.6
Accrued interest 9.3
48.0
(38.7 )
Regulatory liabilities - current 77.9
17.7
60.2
Other current liabilities 155.1
119.1
36.0
Long-term debt, net 2,953.5
3,358.6
(405.1 )
Long-term debt of variable interest entities, net (30.3 ) —
(30.3 )
Deferred income taxes 620.6
664.9
(44.3 )
Unamortized investment tax credits 122.8
124.3
(1.5 )
Regulatory liabilities 1,267.8
1,172.9
94.9
Pension and post-retirement liability 467.9
477.3
(9.4 )
Asset retirement obligations 247.9
366.1
(118.2 )
Other long-term liabilities 95.5
83.1
12.4

~~See Note 2 to the consolidated financial statements for additional information regarding changes in Evergy's balance sheet due to the merger.~~

~~The following are significant balance sheet changes in addition to those due to the Great Plains Energy and Westar Energy merger:~~

Evergy's cash and cash equivalents increased $122.5 million primarily due to receiving $140.6 million in proceeds from the settlement of Great Plains Energy's deal-contingent interest rate swaps following the closing of the merger in June 2018.

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~~Evergy's receivables, net increased $42.4 million primarily due to seasonal increases in customer accounts receivable.~~

Evergy's current maturities of long-term debt increased by $404.0 million and long-term debt decreased by $405.1 million primarily due to the reclassification of KCP&L's $400.0 million of 7.15% Series 2009A General Mortgage Bonds from long-term to current.

~~Evergy's notes payable and commercial paper increased $242.6 million primarily due to borrowings for general corporate purposes.~~

~~Evergy's accounts payable decreased $68.0 million primarily due to the timing of cash payments.~~

Evergy's accrued dividends decreased $53.8 million due to the timing of payment for Westar Energy's common stock dividend declared in May 2018, which was paid in June 2018, and its common stock dividend declared in November 2017, which was paid in January 2018.

Evergy's long-term debt of variable interest entities, net decreased $30.3 million primarily due to the VIE that holds the La Cygne Unit 2 leasehold interest having made principal payments totaling $28.5 million.

Evergy's asset retirement obligations decreased $118.2 million primarily due to a $127.0 million decrease in Evergy's and Westar Energy's AROs for a revision in estimate primarily related to Westar Energy's ARO to decommission its 47% ownership share of Wolf Creek. See Note 6 to the consolidated financial statements for additional information.

LIQUIDITY AND CAPITAL RESOURCES

Evergy relies primarily upon cash from operations, short-term borrowings, long-term debt and equity issuances and its existing cash and cash equivalents to fund its capital requirements. Evergy's capital requirements primarily consist of capital expenditures, payment of contractual obligations and other commitments, and the payment of dividends to ~~shareholders~~shareholders. See the Evergy Companies' combined 2022 Form 10-K for more information on Evergy's sources and ~~the anticipated repurchase~~uses of ~~common shares.~~cash.

~~Capital Sources~~

~~Cash Flows from Operations~~

~~Evergy's cash flows from operations are driven by the regulated sale~~Table of electricity. These cash flows are relatively stable but the timing and level of these cash flows can vary based on weather and economic conditions, future regulatory proceedings, the timing of cash payments made for costs recoverable under regulatory mechanisms and the time such costs are recovered, and unanticipated expenses such as unplanned plant outages and/or storms.Contents

Short-Term Borrowings

As of June 30, ~~2018,~~2023, Evergy had ~~$1.1 billion~~$627.2 million of available borrowing capacity ~~from unused bank lines of~~under its master credit ~~and receivable sale agreements. Westar Energy's, KCP&L's and GMO's~~facility. The available borrowing capacity under ~~their revolving~~the master credit ~~facilities~~facility consisted of $162.8 million for Evergy, Inc., $185.2 million for Evergy Kansas Central, $188.5 million for Evergy Metro and $90.7 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility also ~~support~~supports their issuance of commercial paper. The available borrowing capacity consisted of $139.0 million from Evergy's revolving credit facility, $472.8 million from Westar Energy's credit facilities, $274.9 million from KCP&L's credit facilities and $239.3 million from GMO's credit facilities. See ~~Notes 4 and 9~~Note 7 to the consolidated financial statements for more information regarding the ~~receivable sale agreements~~master credit facility.

In February 2022, Evergy, Inc. entered into a $500.0 million unsecured Term Loan Facility that originally expired in February 2023. In February 2023, Evergy, Inc. amended the $500.0 million Term Loan Facility to extend the expiration date to February 2024. As a result of the amendment, Evergy, Inc. demonstrated its intent and ~~revolving credit facilities, respectively.~~ ability to refinance the Term Loan Facility and reflected this $500.0 million borrowing within long-term debt, net, on Evergy's consolidated balance sheet as of December 31, 2022. As of June 30, 2023, Evergy had borrowed $500.0 million under the Term Loan Facility that is reflected within notes payable and commercial paper on Evergy's consolidated balance sheet. Evergy's borrowings under the Term Loan Facility were used for, among other things, working capital, capital expenditures and general corporate purposes.

Along with cash flows from operations and receivable sales facilities, Evergy generally uses ~~these liquid resources~~borrowings under its master credit facility and the issuance of commercial paper to meet its day-to-day cash flow requirements.

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~~Long-Term Debt and Equity Issuances~~

~~From time~~ Evergy may also utilize these short-term borrowings to ~~time, Evergy issues long-term debt and/or equity to~~ repay ~~short-term debt, refinance~~ maturing long-term debt until the long-term debt is able to be refinanced. Evergy believes that its existing cash on hand and ~~finance growth.~~ available borrowing capacity under its master credit facility provide sufficient liquidity for its existing capital requirements.

Significant Debt Issuances

See Note 8 to the consolidated financial statements for information regarding significant debt issuances.

Pensions

Year to date June 30, 2023, Evergy made pension contributions of $27.0 million. Evergy, Evergy Kansas Central and Evergy Metro do not expect to make additional pension contributions in 2023. Also in 2023, Evergy expects to make additional post-retirement benefit contributions of $1.3 million. See Note 6 to the consolidated financial statements for additional information on Evergy's pension and post-retirement plans.

Debt Covenants

As of June 30, ~~2018 and December 31, 2017, Evergy’s capital structure, excluding short-term~~2023, Evergy was in compliance with all debt ~~was as follows:~~

June 30 December 31
2018 2017
Common equity 59% 51%
Noncontrolling interests <0% <0%
Long-term debt, including VIEs 41% 49%

~~Following~~covenants under the ~~completion of its anticipated common stock repurchase plan, Evergy anticipates having a common equity to total capitalization ratio of approximately 50%.~~

~~Under stipulations with~~master credit facility, the ~~MPSC and KCC, Evergy, Westar Energy and KCP&L are required to maintain common equity at not less than 35%, 40% and 40%, respectively, of total capitalization. The revolving credit facilities~~Term Loan Facility and certain debt instruments ~~of the Evergy Companies also~~that contain restrictions that require the maintenance of certain capitalization and leverage ratios. ~~As of June 30, 2018, the Evergy Companies were in compliance with these covenants.~~

~~Significant Debt Issuances~~

See Note 107 to the consolidated financial statements for ~~information regarding significant debt issuances.~~

~~Credit Ratings~~

The ratings of the Evergy Companies' securities by the credit rating agencies impact their liquidity, including the cost of borrowings under their revolving credit agreements and in the capital markets. The Evergy Companies view maintenance of strong credit ratings as extremely important to the Evergy Companies' access to and cost of debt financing and, to that end, maintain an active and ongoing dialogue with the agencies with respect to results of operations, financial position and future prospects. While a decrease in these credit ratings would not cause any acceleration of the Evergy Companies' debt, it could increase interest charges under revolving credit agreements. A decrease in credit ratings could also have, among other things, an adverse impact, which could be material, on the Evergy Companies' access to capital, the cost of funds, the ability to recover actual interest costs in state regulatory proceedings, the type and amounts of collateral required under supply agreements and Evergy's ability to provide credit support for its subsidiaries.

~~Table of Contents~~

~~As of August 8, 2018, the major credit rating agencies rated the Evergy Companies' securities as detailed in the following table.~~



	~~Moody's~~		~~S&P Global~~
	~~Investors Service~~		~~Ratings~~
~~Evergy~~
~~Outlook~~		~~Stable~~		~~Stable~~
~~Corporate Credit Rating~~		--		A-
~~Senior Unsecured Debt~~		~~Baa2~~		~~BBB+~~

~~Westar Energy~~
~~Outlook~~		~~Stable~~		~~Stable~~
~~Corporate Credit Rating~~		~~Baa1~~		A-
~~Senior Secured Debt~~		A2		A
~~Commercial Paper~~		~~P-2~~		~~A-2~~

~~KGE~~
~~Outlook~~		~~Stable~~		~~Stable~~
~~Corporate Credit Rating~~		~~Baa1~~		A-
~~Senior Secured Debt~~		A2		A

~~KCP&L~~
~~Outlook~~		~~Stable~~		~~Stable~~
~~Corporate Credit Rating~~		~~Baa1~~		A-
~~Senior Secured Debt~~		A2		A
~~Senior Unsecured Debt~~		~~Baa1~~		A-
~~Commercial Paper~~		~~P-2~~		~~A-2~~

~~GMO~~
~~Outlook~~		~~Stable~~		~~Stable~~
~~Corporate Credit Rating~~		~~Baa2~~		A-
~~Senior Unsecured Debt~~		~~Baa2~~		A-
~~Commercial Paper~~		~~P-2~~		~~A-2~~

~~A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency.~~

~~Shelf Registration Statements and Regulatory Authorizations~~

~~Westar Energy~~

~~Westar Energy has an effective shelf registration statement providing for the sale of unlimited amounts of unsecured debt securities and first mortgage bonds with the SEC that expires in March 2019.~~

~~KCP&L~~

~~KCP&L has an effective shelf registration statement providing for the sale of $1.1 billion in aggregate principal amount of notes and mortgage bonds that expires in April 2021.~~

~~Table of Contents~~

The following table summarizes the short-term and long-term debt financing authorizations for Westar Energy, KGE, KCP&L and GMO and the remaining amount available under these authorizations as of June 30, 2018.

Type of Authorization Commission Expiration Date Authorization Amount Available Under Authorization
Westar Energy & KGE (in millions)
Short-Term Debt FERC February 2020 $1,000.0 $511.8
KCP&L
Short-Term Debt FERC December 2018 $1,000.0 $677.6
Long-Term Debt MPSC September 2019 $750.0 $450.0
GMO
Short-Term Debt FERC March 2020 $750.0 $541.3

In addition to the above regulatory authorizations for KCP&L and GMO, the Westar Energy and KGE mortgages each contain provisions restricting the amount of First Mortgage Bonds (FMBs) that can be issued by each entity. Westar Energy and KGE must comply with these restrictions prior to the issuance of additional FMBs or other secured indebtedness.

Under the Westar Energy mortgage, the issuance of bonds is subject to limitations based on the amount of bondable property additions. In addition, so long as any bonds issued prior to January 1, 1997, remain outstanding, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Westar Energy’s unconsolidated net earnings available for interest, depreciation and property retirement (which as defined, does not include earnings or losses attributable to the ownership of securities of subsidiaries), for a period of 12 consecutive months within 15 months preceding the issuance, are not less than the greater of twice the annual interest charges on or 10% of the principal amount of all FMBs outstanding after giving effect to the proposed issuance. As of June 30, 2018, $382.8 million principal amount of additional FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.

Under the KGE mortgage, the amount of FMBs authorized is limited to a maximum of $3.5 billion and the issuance of bonds is subject to limitations based on the amount of bondable property additions. In addition, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless KGE’s net earnings before income taxes and before provision for retirement and depreciation of property for a period of 12 consecutive months within 15 months preceding the issuance are not less than either two and one-half times the annual interest charges on or 10% of the principal amount of all KGE FMBs outstanding after giving effect to the proposed issuance. As of June 30, 2018, approximately $1.5 billion principal amount of additional KGE FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.

~~Cash and Cash Equivalents~~

At June 30, 2018, Evergy had approximately $1.3 billion of cash and cash equivalents on hand. Under the Amended Merger Agreement, Great Plains Energy was required to have not less than $1.25 billion in cash and cash equivalents on its balance sheet at the closing of the merger with Westar Energy. Evergy anticipates that this excess cash will be returned to its shareholders through the repurchase of common stock.

~~Capital Requirements~~

~~Capital Expenditures~~

Evergy requires significant capital investments and expects to need cash primarily for utility construction programs designed to improve and expand facilities related to providing electric service, which include, but are not limited to, expenditures to develop new transmission lines and improvements to power plants, transmission and distribution lines and equipment.

~~Table of Contents~~

Evergy's anticipated capital expenditures for the next several years were reported in the Westar Energy 2017 Form 10-K and the Great Plains Energy and KCP&L combined 2017 Form 10-K. There have been no material changes with regard to these anticipated capital expenditures.

~~Contractual Obligations and Other Commitments~~

In the course of its business activities, the Evergy Companies enter into a variety of contracts and commercial commitments. Some of these result in direct obligations reflected on Evergy's consolidated balance sheets while others are commitments, some firm and some based on uncertainties, not reflected in Evergy's underlying consolidated financial statements. There have been no material changes with regards to the contractual obligations and commitments disclosed in Supplemental Capital Requirements and Liquidity Information in MD&A in the Great Plains Energy and KCP&L combined 2017 Form 10-K and in Contractual Obligations and Commercial Commitments in the Westar Energy 2017 Form 10-K.

~~Common Stock Dividends~~

The amount and timing of dividends payable on Evergy's common stock are within the sole discretion of Evergy's Board of Directors. The amount and timing of dividends declared by the Evergy Board of Directors will be dependent on considerations such as Evergy's earnings, financial position, cash flows, capitalization ratios, regulation, reinvestment opportunities and debt covenants. Evergy targets a long-term dividend payout ratio of 60% to 70% of earnings.

The Evergy Companies also have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels. See Note 15 to the consolidated financial statements for further discussion of restrictions on dividend payments.

~~Common Stock Repurchase Plan~~

~~Impact of Tax Cuts and Jobs Act~~

The Tax Cuts and Jobs Act will result in lower operating cash flows for the Evergy Companies as a result of lower customer rates resulting from lower income tax expense recoveries and the settlement of related deferred income tax regulatory liabilities, which are significant. These decreases in operating cash flows are expected to exceed the increase in operating cash flows for the Evergy Companies resulting from the lower corporate federal income tax rate. These net regulatory liabilities will be refunded in future rates by amortizing amounts related to plant assets over the remaining useful life of the assets and amortizing the amounts related to the other items over periods to be determined in future rate cases.

~~Off-Balance Sheet Arrangements~~

In the ordinary course of business, Evergy and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiary's intended business purposes. In connection with the closing of the merger, Evergy assumed the guarantees previously provided to GMO by Great Plains Energy. The majority of these agreements guarantee Evergy's own future performance, so a liability for the fair value of the obligation is not recorded.

~~At June 30, 2018, Evergy has provided $112.3 million of credit support for GMO as follows:~~

~~Evergy direct guarantees to GMO counterparties totaling $18.0 million, which expire in 2018, and~~

~~Evergy's guarantee of GMO long-term debt totaling $94.3 million, which includes debt with maturity dates ranging from 2019 to 2023.~~

~~Table of Contents~~

Evergy has also guaranteed GMO's commercial paper program. At June 30, 2018, GMO had $208.7 million of commercial paper outstanding. None of the guaranteed obligations are subject to default or prepayment if GMO's credit ratings were downgraded.

~~The Evergy Companies also have off-balance sheet arrangements in the form of operating leases and letters of credit entered into in the ordinary course of business.~~

Cash Flows

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

Year to Date June 30 2018 2017
(in millions)
Cash flows from operating activities $ 397.2
$ 363.7
Cash flows from (used in) investing activities 846.9
(399.5 )
Cash flows from financing activities 32.6
35.9



Year to Date June 30	2023		2022
	(millions)
Cash Flows from Operating Activities	$	715.2	$	588.9
Cash Flows used in Investing Activities	(1,307.4)		(1,128.9)
Cash Flows from Financing Activities	598.4		536.2

Cash Flows from Operating Activities

Evergy's cash flows from operating activities increased ~~$33.5~~$126.3 million year to date June 30, ~~2018,~~2023, compared to the same period in ~~2017,~~2022, primarily driven by ~~an $85.5~~a $98.8 million increase in cash receipts for retail electric sales in 2023, primarily due to ~~the inclusion~~collection of ~~KCP&L's~~higher December 2022 receivables in January 2023 and ~~GMO's cash flows~~increases from ~~operating activities beginning~~new Evergy Metro and Evergy Missouri West retail rates effective in ~~June 2018; partially offset by $35.6 million~~January 2023.

Table of merger success fees paid by Evergy and Westar Energy upon the completion of the merger and an increase of $15.2 million in Wolf Creek refueling outage costs paid by Westar Energy related to the outage that concluded in May 2018.Contents

Cash Flows ~~from~~used in Investing Activities

Evergy's cash flows ~~from~~used in investing activities increased ~~$1,246.4~~$178.5 million year to date June 30, ~~2018,~~2023, compared to the same period in ~~2017,~~2022, primarily ~~due to~~ driven by:

•the ~~inclusion~~acquisition of ~~$1,154.2~~Persimmon Creek Wind Farm for $217.9 million, net of cash acquired, in 2023; partially offset by

•a $39.5 million increase in proceeds from ~~Great Plains Energy as~~COLI investments at Evergy Kansas Central due to a higher number of ~~the merger date.~~policy settlements in 2023.

Cash Flows from Financing Activities

Evergy's cash flows from financing activities ~~decreased $3.3~~increased $62.2 million year to date June 30, ~~2018,~~2023, compared to the same period in ~~2017.~~2022, primarily driven by:

~~Table~~•a $443.6 million increase in proceeds from long-term debt due to Evergy Kansas Central's issuance of ~~Contents~~$400.0 million of 5.70% FMBs in March 2023 and Evergy Metro’s issuance of $300.0 million of 4.95% Mortgage Bonds in April 2023; partially offset by Evergy Missouri West's issuance of $250.0 million of 3.75% FMBs in March 2022; partially offset by

•a $331.7 million decrease in short-term debt borrowings primarily due to Evergy Kansas Central's repayment of commercial paper borrowings with the proceeds from its issuance of $400.0 million of 5.70% FMBs in March 2023.

~~WESTAR ENERGY,~~EVERGY KANSAS CENTRAL, INC.

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

The below results of operations and related discussion for ~~Westar Energy~~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 ~~Westar Energy's~~Evergy Kansas Central's comparative results of operations.


Year to Date June 30	2023		Change		2022
	(millions)
Operating revenues	$	1,318.2	$	(19.7)	$	1,337.9
Fuel and purchased power	258.2		(28.9)		287.1
SPP network transmission costs	156.6		(3.6)		160.2
Operating and maintenance	223.2		(44.0)		267.2
Depreciation and amortization	252.8		12.5		240.3
Taxes other than income tax	110.2		1.8		108.4
Income from operations	317.2		42.5		274.7
Other expense, net	(6.6)		10.8		(17.4)
Interest expense	106.8		21.2		85.6
Income tax expense	11.5		3.5		8.0
Equity in earnings of equity method investees, net of income taxes	2.0		—		2.0
Net income	194.3		28.6		165.7
Less: Net income attributable to noncontrolling interests	6.2		—		6.2
Net income attributable to Evergy Kansas Central, Inc.	$	188.1	$	28.6	$	159.5

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Year to Date
June 30
2018 2017 Change
(millions)
Operating revenues $ 1,251.1
$ 1,181.9
$ 69.2
Fuel and purchased power 293.5
225.6
67.9
SPP network transmission costs 136.0
122.4
13.6
Other operating expenses 436.3
359.6
76.7
Depreciation and amortization 185.7
182.7
3.0
Income from operations 199.6
291.6
(92.0 )
Other income (expense) (17.7 ) (13.8 ) (3.9 )
Interest expense 88.2
84.8
3.4
Income tax expense (benefit) (44.4 ) 56.8
(101.2 )
Equity in earnings of equity method investees, net of income taxes 2.4
3.3
(0.9 )
Net income 140.5
139.5
1.0
Less: Net income attributable to noncontrolling interests 5.0
7.8
(2.8 )
Net income attributable to Westar Energy, Inc. $ 135.5
$ 131.7
$ 3.8

~~Westar Energy~~Evergy Kansas Central Gross Margin (GAAP) and Utility Gross Margin ~~and MWh Sales~~(non-GAAP)

The following table summarizes ~~Westar Energy's~~Evergy Kansas Central's gross margin (GAAP) and MWhs sold and reconciles Evergy Kansas Central's gross margin (GAAP) to Evergy Kansas Central's utility gross margin (non-GAAP). See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and ~~MWhs sold.~~

Revenues and Costs MWhs Sold
Year to Date June 30 2018 2017 Change 2018 2017 Change
Retail revenues (millions) (thousands)
Residential $ 401.4
$ 350.9
$ 50.5
3,249
2,747
502
Commercial 325.4
325.3
0.1
3,567
3,432
135
Industrial 185.3
198.7
(13.4 ) 2,725
2,756
(31 )
Other retail revenues 9.9
12.3
(2.4 ) 30
44
(14 )
Total electric retail 922.0
887.2
34.8
9,571
8,979
592
Wholesale revenues 181.3
152.7
28.6
5,477
4,484
993
Transmission revenues 144.1
142.2
1.9
N/A
N/A
N/A
Other revenues 3.7
(0.2 ) 3.9
N/A
N/A
N/A
Operating revenues 1,251.1
1,181.9
69.2
15,048
13,463
1,585
Fuel and purchased power (293.5 ) (225.6 ) (67.9 )
SPP network transmission costs (136.0 ) (122.4 ) (13.6 )
Utility gross margin ^(a)
$ 821.6
$ 833.9
$ (12.3 )


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

~~Table of Contents~~

~~Westar Energy's~~ utility gross margin ~~decreased $12.3~~(non-GAAP).


	Revenues and Expenses						MWhs Sold
Year to Date June 30	2023		Change		2022		2023	Change	2022
Retail revenues	(millions)						(thousands)
Residential	$	384.4	$	(34.5)	$	418.9	2,967	(180)	3,147
Commercial	358.8		(0.1)		358.9		3,499	99	3,400
Industrial	206.7		(6.0)		212.7		2,658	(130)	2,788
Other retail revenues	6.8		(1.8)		8.6		20	—	20
Total electric retail	956.7		(42.4)		999.1		9,144	(211)	9,355
Wholesale revenues	126.4		(5.1)		131.5		4,617	(447)	5,064
Transmission revenues	197.2		18.6		178.6		N/A	N/A	N/A
Other revenues	37.9		9.2		28.7		N/A	N/A	N/A
Operating revenues	1,318.2		(19.7)		1,337.9		13,761	(658)	14,419
Fuel and purchased power	(258.2)		28.9		(287.1)
SPP network transmission costs	(156.6)		3.6		(160.2)
Operating and maintenance (a)	(113.2)		20.3		(133.5)
Depreciation and amortization	(252.8)		(12.5)		(240.3)
Taxes other than income tax	(110.2)		(1.8)		(108.4)
Gross margin (GAAP)	427.2		18.8		408.4
Operating and maintenance (a)	113.2		(20.3)		133.5
Depreciation and amortization	252.8		12.5		240.3
Taxes other than income tax	110.2		1.8		108.4
Utility gross margin (non-GAAP)	$	903.4	$	12.8	$	890.6
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $110.0 million and $133.7 million year to date June 30, 2023 and 2022, respectively.

Evergy Kansas Central's gross margin (GAAP) increased $18.8 million year to date June 30, ~~2018,~~2023, compared to the same period in ~~2017, driven by:~~

~~a $38.2~~2022, and Evergy Kansas Central's utility gross margin (non-GAAP) increased $12.8 million refund obligation for the change in the corporate income tax rate caused by the passage of the Tax Cuts and Jobs Act. See Note 17 to the consolidated financial statements for additional information; and

a $26.7 million obligation for one-time and annual bill credits as a result of conditions in the KCC merger order. See Note 2 to the consolidated financial statements for additional information; partially offset by

~~a $52.6 million increase primarily due to higher retail sales driven by warmer spring weather and colder winter weather. For~~ year to date June 30, ~~2018,~~2023, compared to the same period in ~~2017, cooling~~2022, both measures were driven by:

•an $18.6 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2023 and revised in March 2023; and

•a $7.8 million decrease primarily due to lower retail sales driven by unfavorable weather (cooling degree days ~~increased 69%~~decreased by 12% and heating degree days ~~increased 27%.~~decreased by 13%); partially offset by higher weather-normalized residential and commercial demand.

~~Westar Energy Other Operating Expenses (including~~

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Additionally, the increase in Evergy Kansas Central's gross margin (GAAP) was also driven by:

•a $20.3 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by an $8.6 million decrease in operating and maintenance expense at fossil-fuel generating units, a $3.3 million decrease in operating and ~~taxes other than income tax~~)maintenance expense at Wolf Creek and a $4.5 million decrease in transmission and distribution operating and maintenance expenses as described further below; partially offset by

~~Westar Energy's other~~•a $12.5 million increase in depreciation and amortization expense as described further below.

Evergy Kansas Central Operating and Maintenance

Evergy Kansas Central's operating ~~expenses increased $76.7~~and maintenance expense decreased $44.0 million year to date June 30, ~~2018,~~2023, compared to the same period in ~~2017,~~2022, primarily driven by:

~~$45.1~~•a $13.6 million decrease in administrative labor and employee benefits expenses primarily due to lower employee headcount in 2023;

•an $8.6 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily driven by a major maintenance outage at JEC in 2022;

•a $4.5 million decrease in various transmission and distribution operating and maintenance expenses primarily due to lower labor costs driven by an increase in labor capitalization and lower employee headcount, partially offset by a $3.4 million increase in vegetation management costs;

•a $3.3 million decrease in injuries and damages expense primarily due to settled litigation in 2023; and

•a $3.3 million decrease in plant operating and maintenance expense at Wolf Creek primarily due to lower refueling outage amortization in 2023 and lower labor costs in 2023 driven by an increase in labor capitalization and lower employee headcount; partially offset by

•a $1.9 million increase in property insurance expense due to a lower annual refund of ~~merger-related costs incurred~~nuclear insurance premiums received in ~~June 2018, consisting of:~~2023 related to Evergy Kansas Central's ownership interest in Wolf Creek.


◦	$39.9 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 Westar Energy equity compensation awards in accordance with the Amended Merger Agreement; and


◦	~~$19.0 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; partially offset by~~


◦	a $13.8 million decrease in operating and maintenance expense due to the net reallocation of incurred merger transition costs between Westar Energy, Evergy, KCP&L and GMO and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Westar Energy in accordance with the KCC merger order; and

~~$12.3 million of obsolete inventory write-offs for Westar Energy's Unit 7 at Tecumseh Energy Center, Units 3~~Evergy Kansas Central Depreciation and ~~4 at Murray Gill Energy Center~~Amortization

Evergy Kansas Central's depreciation and ~~Units 1 and 2 at Gordon Evans Energy Center, which are expected to be retired in the second half of 2018.~~

~~Westar Energy Income Tax Expense~~

~~Westar Energy's income tax~~amortization expense ~~decreased $101.2~~increased $12.5 million year to dateJune 30, ~~2018,~~2023, compared to the same period in ~~2017,~~2022, primarily driven ~~by:~~by capital additions.

~~a $52.6~~Evergy Kansas Central Other Expense, Net

Evergy Kansas Central's other expense, net decreased $10.8 million ~~decrease related~~year to date June 30, 2023, compared to the ~~revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger;~~same period in 2022, primarily driven by:

~~a $40.6~~•an $8.1 million decrease due to recording higher COLI benefits in 2023; and

•a $5.7 million increase in net unrealized gains in Evergy Kansas Central's rabbi trust; partially offset by

•$3.7 million of lower equity AFUDC driven by higher short-term debt balances in 2023.

Evergy Kansas Central Interest Expense

Evergy Kansas Central's interest expense increased $21.2 million year to date June 30, 2023, compared to the same period in 2022, primarily driven by an $18.1 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates in 2023.

Evergy Kansas Central Income Tax Expense

Evergy Kansas Central's income tax expense increased $3.5 million year to date June 30, 2023, compared to the same period in 2022, primarily driven by:

•a $7.1 million increase due to higher pre-tax ~~income; and~~income in 2023; partially offset by

•a ~~$12.2~~$3.3 million decrease ~~as a result of the decrease~~primarily due to higher expected COLI proceeds in ~~the federal statutory income tax rate in 2018.~~2023.

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~~KANSAS CITY POWER & LIGHT COMPANY~~EVERGY METRO, INC.

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

The below results of operations and related discussion for ~~KCP&L~~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 ~~KCP&L's~~Evergy Metro's comparative results of operations.


Year to Date June 30	2023		Change		2022
	(millions)
Operating revenues	$	891.7	$	(30.9)	$	922.6
Fuel and purchased power	257.4		(34.0)		291.4
Operating and maintenance	132.1		(32.7)		164.8
Depreciation and amortization	207.8		40.4		167.4
Taxes other than income tax	65.7		(1.4)		67.1

Income from operations	228.7		(3.2)		231.9
Other expense, net	(12.9)		0.2		(13.1)
Interest expense	65.6		11.8		53.8
Income tax expense	18.6		(3.4)		22.0
Net income	$	131.6	$	(11.4)	$	143.0

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Year to Date
June 30
2018 2017 Change
(millions)
Operating revenues $ 849.3
$ 878.6
$ (29.3 )
Fuel and purchased power 250.0
223.4
26.6
Other operating expenses 286.5
325.2
(38.7 )
Depreciation and amortization 137.1
133.6
3.5
Income from operations 175.7
196.4
(20.7 )
Other income (expense) (11.0 ) (24.6 ) 13.6
Interest expense 67.6
71.2
(3.6 )
Income tax expense 52.3
36.8
15.5
Net income $ 44.8
$ 63.8
$ (19.0 )

~~KCP&L~~Evergy Metro Gross Margin (GAAP) and Utility Gross Margin ~~and MWh Sales~~(non-GAAP)

The following table summarizes ~~KCP&L's~~Evergy Metro's gross margin (GAAP) and MWhs sold and reconciles Evergy Metro's gross margin (GAAP) to Evergy Metro's utility gross margin (non-GAAP). See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and ~~MWhs sold.~~

Revenues and Costs MWhs Sold
Year to Date June 30 2018 2017 Change 2018 2017 Change
Retail revenues (millions) (thousands)
Residential $ 341.9
$ 318.0
$ 23.9
2,789
2,383
406
Commercial 378.1
394.9
(16.8 ) 3,820
3,621
199
Industrial 66.3
74.0
(7.7 ) 857
860
(3 )
Other retail revenues 5.0
5.4
(0.4 ) 38
38
—
Total electric retail 791.3
792.3
(1.0 ) 7,504
6,902
602
Wholesale revenues 8.6
52.0
(43.4 ) 2,139
3,759
(1,620 )
Transmission revenues 7.2
8.4
(1.2 ) N/A
N/A
N/A
Other revenues 42.2
25.9
16.3
N/A
N/A
N/A
Operating revenues 849.3
878.6
(29.3 ) 9,643
10,661
(1,018 )
Fuel and purchased power (250.0 ) (223.4 ) (26.6 )
Utility gross margin ^(a)
$ 599.3
$ 655.2
$ (55.9 )


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

~~KCP&L's~~ utility gross margin (non-GAAP).


	Revenues and Expenses						MWhs Sold
Year to Date June 30	2023		Change		2022		2023	Change	2022
Retail revenues	(millions)						(thousands)
Residential	$	344.0	(0.8)		$	344.8	2,621	(83)	2,704
Commercial	373.2		5.5		367.7		3,592	(17)	3,609
Industrial	63.4		1.2		62.2		837	13	824
Other retail revenues	6.1		0.5		5.6		33	(2)	35
Total electric retail	786.7		6.4		780.3		7,083	(89)	7,172
Wholesale revenues	37.3		32.1		5.2		2,381	(665)	3,046
Transmission revenues	7.1		(2.7)		9.8		N/A	N/A	N/A
Other revenues	60.6		(66.7)		127.3		N/A	N/A	N/A
Operating revenues	891.7		(30.9)		922.6		9,464	(754)	10,218
Fuel and purchased power	(257.4)		34.0		(291.4)
Operating and maintenance (a)	(92.1)		11.3		(103.4)
Depreciation and amortization	(207.8)		(40.4)		(167.4)
Taxes other than income tax	(65.7)		1.4		(67.1)
Gross margin (GAAP)	268.7		(24.6)		293.3
Operating and maintenance (a)	92.1		(11.3)		103.4
Depreciation and amortization	207.8		40.4		167.4
Taxes other than income tax	65.7		(1.4)		67.1
Utility gross margin (non-GAAP)	$	634.3	$	3.1	$	631.2
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $39.9 million and $61.4 million year to date June 30, 2023 and 2022, respectively.

Evergy Metro's gross margin (GAAP) decreased ~~$55.9~~$24.6 million year to date June 30, ~~2018~~2023, compared to the same period in ~~2017, driven by:~~

~~a $39.8~~2022 and Evergy Metro's utility gross margin (non-GAAP) increased $3.1 million ~~refund obligation for the change in the corporate income tax rate caused by the passage of the Tax Cuts and Jobs Act. See Note 17 to the consolidated financial statements for additional information;~~

~~$32.3 million of sales taxes and franchise fees collected from KCP&L Missouri customers in 2017, which as part of KCP&L's adoption of ASC 606, are now presented net in revenue in 2018; and~~

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a $23.6 million obligation for one-time and annual bill credits as a result of conditions in the MPSC and KCC merger orders. See Note 2 to the consolidated financial statements for additional information; partially offset by

~~a $39.8 million increase primarily due to higher retail sales driven by warmer spring weather and colder winter weather. For~~ year to date June 30, ~~2018,~~2023, compared to the same period in ~~2017, cooling~~2022, both measures were driven by:

•an $8.5 million decrease primarily due to lower retail sales driven by unfavorable weather (cooling degree days ~~increased 63%~~decreased by 15% and heating degree days ~~increased 29%.~~decreased by 13%), partially offset by higher weather-normalized demand; partially offset by

~~KCP&L Other Operating Expenses (including~~•a $10.1 million increase from new Evergy Metro retail rates effective in January 2023; and

•a $1.5 million increase related to Evergy Metro's TDC rider in 2023.

Additionally, the decrease in Evergy Metro's gross margin (GAAP) was also driven by:

•a $40.4 million increase in depreciation and amortization expense as described further below; partially offset by

•an $11.3 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $3.8 million decrease in transmission and distribution operating and maintenance expenses, a $3.6 million decrease in plant operating and maintenance expense at Wolf Creek and ~~taxes other than income tax~~)

~~KCP&L's other operating expenses decreased $38.7 million for the year to date June 30, 2018, compared to the same period in 2017, primarily driven by:~~

a ~~$29.5 million decrease in taxes other than income tax primarily due to sales taxes and franchise fees collected from KCP&L Missouri customers in 2017, which, as part of KCP&L's adoption of ASC 606,~~ ~~Revenue from Contracts with Customers, are now presented net in revenue in 2018; and~~

~~a $23.2~~$3.0 million decrease in operating and maintenance expense at fossil-fuel generating units as further described below.

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Evergy Metro Operating and Maintenance

Evergy Metro's operating and maintenance expense decreased $32.7 million year to date June 30, 2023, compared to the same period in 2022, primarily driven by:

•a $14.7 million decrease in administrative labor and employee benefits expenses primarily due to ~~the net reallocation~~lower employee headcount in 2023;

•a $6.8 million decrease in various administrative and general operating and maintenance expenses primarily driven by lower regulatory amortizations as a result of ~~incurred merger transition costs between KCP&L,~~ Evergy ~~Westar Energy and GMO and the subsequent deferral of these transition costs to~~ Metro's 2022 rate case;

•a ~~regulatory asset~~$3.8 million decrease in ~~June 2018 for future recovery by KCP&L in accordance with the KCC and MPSC merger orders; partially offset by~~

~~a $4.8 million increase in~~various transmission and distribution operating and maintenance ~~expense;~~expenses primarily due to lower labor costs driven by an increase in labor capitalization, lower employee headcount and lower contractor costs;

•a ~~$3.1~~$3.6 million decrease in plant operating and maintenance expense at Wolf Creek primarily due to lower refueling outage amortizations in 2023 and lower labor costs driven by an increase in labor capitalization and lower employee headcount; and

•a $3.0 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily driven by major maintenance outages at Iatan Station Unit 1 and LaCygne Unit 2 in 2022; partially offset by a major maintenance outage at Hawthorn Station in 2023; partially offset by

•a $1.8 million increase in ~~injuries and damages~~property insurance expense ~~primarily~~ due to ~~an increase~~a lower annual refund of nuclear insurance premiums received in ~~estimated worker's compensation losses.~~2023 related to Evergy Metro's ownership interest in Wolf Creek.

~~KCP&L Other Income (Expense)~~Evergy Metro Depreciation Expense

~~KCP&L's other income (expense) decreased $13.6~~Evergy Metro's depreciation and amortization expense increased $40.4 million year to date June 30, ~~2018,~~2023, compared to the same period in ~~2017,~~2022, primarily driven ~~by an $11.4~~by:

•a $25.2 million ~~decrease in pension non-service costs~~increase primarily due to ~~KCP&L's adoption~~a change in depreciation rates and the rebasing of ~~ASU 2017-07,~~ ~~Compensation-Retirement Benefits,~~ ~~which requires the non-service cost components~~PISA depreciation deferrals as a result of Evergy Metro's 2022 rate case effective in January 2023; and

•a $15.4 million increase primarily due to ~~be reported separately from service costs and outside of a subtotal of income from operations~~. For retrospective application of the 2017 non-service cost components, KCP&L utilized the practical expedient that allows for the use of the amounts disclosed in a company's pension and other post-retirement benefit plan footnote as the estimation basis for retrospective presentation. The 2017 amounts disclosed in KCP&L's pension and other post-retirement benefit plan footnote are presented prior to the effects of capitalization and sharing with joint owners of power plants. See Note 1 and Note 7 to the consolidated financial statements for additional information.capital additions.

~~KCP&L Income Tax~~Evergy Metro Interest Expense

~~KCP&L's income tax~~Evergy Metro's interest expense increased ~~$15.5~~$11.8 million year to date June 30, ~~2018,~~2023, compared to the same period in ~~2017,~~2022, primarily driven ~~by:~~

~~a $51.0~~by an $8.9 million increase ~~related~~in interest expense on short-term borrowings primarily due to ~~the revaluation of deferred income tax assets~~higher short-term debt balances and ~~liabilities based on the~~ weighted-average interest rates in 2023.

Evergy ~~composite tax rate as a result of the merger; partially offset by~~Metro Income Tax Expense

~~a $12.5 million decrease in~~Evergy Metro's income tax expense ~~as a result of the decrease in the federal statutory income tax rate in 2018; and~~

~~a $15.5~~decreased $3.4 million ~~decrease related~~year to date June 30, 2023, compared to the ~~revaluation of deferred~~same period in 2022, primarily driven by lower pre-tax income ~~tax assets and liabilities as a result of the enactment of Missouri state income tax reform~~ in ~~June 2018.~~2023.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In the ordinary course of business, Evergy faces risks that are either non-financial or non-quantifiable. Such risks principally include business, legal, operational and credit risks and are discussed elsewhere in this report as well as in the Evergy Companies' combined 2022 Form 10-K and therefore are not represented here.

Evergy's interim period disclosures about market risk included in quarterly reports on Form 10-Q address material changes, if any, from the ~~following analysis. See~~most recently filed annual report on Form 10-K. Therefore, these interim period disclosures should be read in conjunction with Part II, Item ~~1A,~~7A, Quantitative and Qualitative Disclosures About Market Risk ~~Factors and Part I, Item 2, MD&A for further discussion of~~included in the Evergy Companies' combined 2022 Form 10-K. Evergy's exposure to market risk ~~factors.~~has not changed materially since December 31, 2022.

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The Evergy Companies are exposed to market risks associated with commodity price and supply, interest rates and equity prices. Commodity price risk is the potential adverse price impact related to the purchase or sale of electricity and energy-related products. Credit risk is the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. Interest rate risk is the potential adverse financial impact related to changes in interest rates. In addition, Evergy's investments in trusts to fund nuclear plant decommissioning and to fund non-qualified retirement benefits give rise to security price risk.

Management has established risk management policies and strategies to reduce the potentially adverse effects that the volatility of the markets may have on Evergy's operating results. During the ordinary course of business, under the direction and control of an internal commodity risk committee, the Evergy Companies' hedging strategies are reviewed to determine the hedging approach deemed appropriate based upon the circumstances of each situation. Though management believes its risk management practices are effective, it is not possible to identify and eliminate all risk. Evergy could experience losses, which could have a material adverse effect on its results of operations or financial position, due to many factors, including unexpectedly large or rapid movements or disruptions in the energy markets, regulatory-driven market rule changes and/or bankruptcy or non-performance of customers or counterparties, and/or failure of underlying transactions that have been hedged to materialize.

~~Hedging Strategies~~

From time to time, Evergy utilizes derivative instruments to execute risk management and hedging strategies. Derivative instruments, such as futures, forward contracts, swaps or options, derive their value from underlying assets, indices, reference rates or a combination of these factors. These derivative instruments include negotiated contracts, which are referred to as over-the-counter derivatives, and instruments listed and traded on an exchange.

~~Commodity Price Risk~~

The Evergy Companies engage in the wholesale and retail marketing of electricity and are exposed to risk associated with the price of electricity and other energy-related products. Exposure to these risks is affected by a number of factors including the quantity and availability of fuel used for generation and the quantity of electricity customers consume. Customers' electricity usage could also vary from year to year based on the weather or other factors. Quantities of fossil fuel used for generation vary from year to year based on the availability, price and deliverability of a given fuel type as well as planned and unplanned outages at facilities that use fossil fuels. Evergy's exposure to fluctuations in these factors is limited by the cost-based regulation of its regulated operations in Kansas and Missouri as these operations are typically allowed to recover substantially all of these costs through cost-recovery mechanisms, primarily through fuel recovery mechanisms. While there may be a delay in timing between when these costs are incurred and when they are recovered through rates, changes from year to year generally do not have a material impact on operating results.

~~Interest Rate Risk~~

Evergy manages interest rate risk and short- and long-term liquidity by limiting its exposure to variable interest rate debt to a percentage of total debt, diversifying maturity dates and, from time to time, entering into interest rate hedging transactions. At June 30, 2018, 4% of Evergy's long-term debt was variable rate debt. Evergy computes and presents information regarding the sensitivity to changes in interest rates for variable rate debt and current maturities of fixed rate debt by assuming a 100 basis point change in the current interest rates applicable to such debt over the remaining time the debt is outstanding.

Evergy had $2,197.4 million of variable rate debt, including notes payable and commercial paper, and current maturities of fixed rate debt as of June 30, 2018. A 100 basis point change in interest rates applicable to this debt would impact income before income taxes on an annualized basis by approximately $17.7 million.

~~Credit Risk~~

Evergy is exposed to counterparty credit risk largely in the form of accounts receivable from its retail and wholesale electric customers and through executory contracts with market risk exposure. The credit risk associated with accounts receivable from retail and wholesale customers is largely mitigated by Evergy's large number of individual customers spread across diverse customer classes and the ability to recover bad debt expense in customer rates. The

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~~Evergy Companies maintain credit policies and employ credit risk control mechanisms, such as letters of credit, when necessary to minimize their overall credit risk and monitor exposure.~~

~~Investment Risk~~

Evergy maintains trust funds, as required by the NRC, to fund its 94% share of decommissioning the Wolf Creek nuclear power plant and also maintains trusts to fund pension benefits as well as certain non-qualified retirement benefits. As of June 30, 2018, these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet. The equity securities in the trusts are exposed to price fluctuations in equity markets and the value of debt securities are exposed to changes in interest rates and other market factors.

As nuclear decommissioning costs are currently recovered in customer rates, Evergy defers both realized and unrealized gains and losses for the vast majority of these securities as an offset to its regulatory asset for decommissioning Wolf Creek and as such, fluctuations in the value of these securities do not have a material impact on Evergy's earnings. A significant decline in the value of pension or non-qualified retirement assets could require Evergy to increase funding of its pension plans in future periods, which could adversely affect cash flows in those periods. In addition, a decline in the fair value of these plan assets, in the absence of additional cash contributions to the plans by Evergy, could increase the amount of pension cost required to be recorded in future periods by Evergy.

ITEM 4. CONTROLS AND PROCEDURES

EVERGY

Disclosure Controls and Procedures

Evergy carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) orand 15d-15(e) under the ~~Securities Exchange Act of 1934, as amended (the~~ Exchange Act)). This evaluation was conducted under the supervision, and with the participation, of Evergy's management, including the chief executive officer and chief financial officer, and Evergy's disclosure committee. Based upon this evaluation, the chief executive officer and chief financial officer of Evergy have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy were effective at a reasonable assurance level.

Changes in Internal Control Over Financial Reporting

Effective ~~June 4, 2018, pursuant~~in the second quarter of 2023, the Evergy Companies implemented the first phase of a Generation Enterprise Asset Management program at select generation facilities which is expected to be a strategic and holistic approach to physical asset management across the ~~merger transaction, Westar Energy~~Evergy fleet once fully deployed. The Evergy Companies expect that this program will create efficiency by coordinating and ~~KCP&L became wholly-owned subsidiaries of Evergy. Evergy has designed internal control over financial reporting for itself, while maintaining~~standardizing asset management processes across the ~~internal control over financial reporting for its wholly-owned subsidiaries, Westar Energy~~enterprise, including business processes, data and ~~KCP&L.~~

~~As of May 7, 2018, KCP&L implemented a new customer billing system that will change its internal control over financial reporting.~~IT systems. In connection with this implementation, Evergy ~~has~~ updated its internal controls over financial reporting, as necessary, to accommodate modifications to its business processes.

~~WESTAR ENERGY~~

EVERGY KANSAS CENTRAL

Disclosure Controls and Procedures

~~Westar Energy~~Evergy Kansas Central carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) orand 15d-15(e) under the Exchange Act). This evaluation was conducted under the supervision, and with the participation, of ~~Westar Energy's~~Evergy Kansas Central's management, including the chief executive officer and chief financial officer, and ~~Westar Energy's~~Evergy Kansas Central's disclosure committee. Based upon this evaluation, the chief executive officer and chief financial officer of ~~Westar Energy~~Evergy Kansas Central have concluded as of the end of the period covered by this report that the disclosure controls and procedures of ~~Westar Energy~~Evergy Kansas Central were effective at a reasonable assurance level.

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Changes in Internal Control Over Financial Reporting

~~There has been no change~~Effective in ~~Westar Energy's~~the second quarter of 2023, the Evergy Companies implemented the first phase of a Generation Enterprise Asset Management program at select generation facilities which is expected to be a strategic and holistic approach to physical asset management across the Evergy fleet once fully deployed. The Evergy Companies expect that this program will create efficiency by coordinating and standardizing asset management processes across the enterprise, including business processes, data and IT systems. In connection with this implementation, Evergy Kansas Central updated its internal ~~control~~controls over financial reporting, ~~(as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended June 30, 2018, that has materially affected, or is reasonably likely~~as necessary, to ~~materially affect,~~accommodate modifications to its ~~internal control over financial reporting.~~business processes.

~~KCP&L~~

EVERGY METRO

Disclosure Controls and Procedures

~~KCP&L~~Evergy Metro carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) orand 15d-15(e) under the Exchange Act). This evaluation was conducted under the supervision, and with the participation, of ~~KCP&L's~~Evergy Metro's management, including the chief executive officer and chief financial officer, and ~~KCP&L's~~Evergy Metro's disclosure committee. Based upon this evaluation, the chief executive officer and chief financial officer of ~~KCP&L~~Evergy Metro have concluded as of the end of the period covered by this report that the disclosure controls and procedures of ~~KCP&L~~Evergy Metro were effective at a reasonable assurance level.

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Changes in Internal Control Over Financial Reporting

AsEffective in the second quarter of ~~May 7, 2018, KCP&L~~2023, the Evergy Companies implemented the first phase of a ~~new customer billing system~~Generation Enterprise Asset Management program at select generation facilities which is expected to be a strategic and holistic approach to physical asset management across the Evergy fleet once fully deployed. The Evergy Companies expect that this program will ~~change its internal control over financial reporting.~~create efficiency by coordinating and standardizing asset management processes across the enterprise, including business processes, data and IT systems. In connection with this implementation, ~~KCP&L has~~Evergy Metro updated its internal controls over financial reporting, as necessary, to accommodate modifications to its business processes.

Except as described above, there has been no change in KCP&L's internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended June 30, 2018, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Other Proceedings

The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses. For information regarding material lawsuits and proceedings, see Notes ~~2, 5~~4 and 1210 to the consolidated financial statements. Such information is incorporated herein by reference.

ITEM 1A. RISK FACTORS

Actual results in future periods for the Evergy Companies could differ materially from historical results and the forward-looking statements contained in this report. The business of the Evergy Companies is influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond their control. Additional risks and uncertainties not presently known or that management currently believes to be immaterial may also adversely affect the Evergy Companies. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in Part I, Item 1A, Risk Factors included in the ~~2017~~2022 Form 10-K for each of ~~Great Plains Energy, Westar Energy~~Evergy, Evergy Kansas Central and ~~KCP&L. Except~~Evergy Metro, as ~~described below, there~~well as Quarterly Reports on Form 10-Q and from time to time in Current Reports on Form 8-K filed by Evergy, Evergy Kansas Central and Evergy Metro. There have been no material changes with regards to those risk ~~factors.~~factors since the filing of the 2022 Form 10-K for each of Evergy, Evergy Kansas Central and Evergy Metro. This information, as well as the other information included in this report and in the other documents filed with the SEC, should be carefully considered before making an investment in the securities of the Evergy Companies. Risk factors of ~~KCP&L~~Evergy Kansas Central and ~~Westar Energy~~Evergy Metro are also risk factors of ~~the Evergy Companies.~~

~~Evergy will incur significant costs in connection with the integration of Great Plain Energy and Westar Energy.~~

Evergy has incurred, and expects to incur additional, significant costs associated with combining the operations of Great Plains Energy and Westar Energy. Additional unanticipated costs may also be incurred in the integration of the businesses of Great Plains Energy and Westar Energy. Any net benefit from the anticipated elimination of duplicative costs, as well as the realization of other efficiencies related to the integration of the businesses, may not be achieved in the near term or at all. Integration costs could have a material adverse impact on the results of

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Evergy, and the failure to achieve the anticipated benefits and efficiencies from the merger, or the incurrence of additional expenses, could have a material adverse impact on the results of operations of Evergy and its ability to pay dividends in the future.

~~The anticipated benefits of the merger may not be realized.~~

Evergy expects the merger to produce various benefits, including, among other things, operating efficiencies and cost savings. However, achieving the anticipated benefits is subject to a number of uncertainties, including:

~~the ability to efficiently and effectively combine operations of the merged companies;~~

~~general market and economic conditions;~~

~~general competitive factors in the marketplace; and~~

~~higher than expected costs required to achieve the anticipated benefits of the merger.~~

No assurance can be given that these benefits will be achieved or, if achieved, the timing of their achievement. Failure to achieve these anticipated benefits could result in increased costs and decreases in the amount of expected revenues or net income of the combined company. In addition, Evergy may encounter difficulties in integrating the operations of the companies, including inconsistencies in standards, systems and controls, and management’s focus and resources may be diverted from ordinary business activities and opportunities to focus on integration. Any of the foregoing could have a material adverse effect on Evergy.

~~The price of Evergy common stock may experience volatility.~~

The price of Evergy common stock may be volatile. Some of the factors that could affect the price of Evergy common stock are quarterly increases or decreases in revenue or earnings, changes in revenue or earnings estimates by the investment community, the ability of Evergy to implement its integration strategy and to realize the expected synergies and other benefits from the merger, the ability of Evergy to implement its share repurchase program and speculation in the press or investment community about Evergy's financial condition or results of operations. General market conditions and U.S. economic factors and political events unrelated to the performance of Evergy may also affect its stock price. For these reasons, shareholders should not rely on historical trends in the price of Great Plains Energy or Westar Energy common stock to predict the price of Evergy's common stock or its financial results.

~~Capital and credit market conditions may adversely impact Evergy's share repurchase program.~~

Evergy expects to repurchase a significant number of shares over the next several years using a combination of existing cash on the balance sheet, internally generated cash, proceeds from capital markets activities and short-term debt. Disruptions in capital and credit markets, credit rating actions and volatility in the market price of Evergy’s common stock may make capital more difficult and costly to obtain, may restrict liquidity and may adversely impact the ability to execute the share repurchase program in a timely or cost-effective manner.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~None.~~Purchases of Equity Securities

The following table provides information regarding purchases by Evergy of its equity securities that are registered pursuant to Section 12 of the Exchange Act during the three months ended June 30, 2023.


Issuer Purchases of Equity Securities
Month	Total Number of Shares (or Units) Purchased(a)	Average Price Paid per Share (or Unit)			Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
April 1 - 30	—		$	—	—	—
May 1 - 31	157		61.44		—	—
June 1 - 30	1,326		57.41		—	—
Total	1,483		$	57.84	—	—

(a) Represents shares Evergy purchased for withholding taxes related to the vesting of RSUs.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Available Information

Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC ~~guidance,~~guidelines, the Evergy ~~Westar Energy and KCP&L may~~Companies also use the Investor Relations section of ~~Evergy's~~their website, ~~(www.evergyinc.com)~~http://investors.evergy.com, to communicate with ~~investors about the Evergy Companies.~~investors. It is possible that the financial and other information posted there could be deemed

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to be material information. ~~The Investors Relations section of the website also contains historical financial and other information relating to Great Plains Energy and Westar.~~ The information on the Evergy Companies' website is not part of this document.

Securities Trading Plans of Directors and Executive Officers

For the three months ended June 30, 2023, no director or officer has adopted, terminated or modified a Rule 10b5-1 plan or non-Rule 10b5-1 trading arrangement required to be disclosed under Item 408(a) of Regulation S-K.

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ITEM 6. EXHIBITS

Exhibit

Number

Description of Document

Registrant

10.1

~~3.1~~

~~Evergy, Inc.~~First Amendment to Amended and ~~Restated Articles of Incorporation (filed as Exhibit 3.1 to Evergy’s Current Report on Form 8-K filed on June 4, 2018 (File No. 001-38515)).~~

~~Evergy~~

~~3.2~~

~~Evergy, Inc. Amended and Restated By-laws (filed as Exhibit 3.2 to Evergy’s Current Report on Form 8-K filed on June 4, 2018 (File No. 001-38515)).~~

~~Evergy~~

~~3.3~~

~~Westar Energy, Inc. Amended and Restated Articles of Incorporation.~~

~~Westar Energy~~

~~3.4~~

~~Westar Energy, Inc. Amended and Restated By-laws.~~

~~Westar Energy~~

~~4.1~~

Sixth Supplemental Indenture, dated as of June 4, 2018, by and among Great Plains Energy Incorporated, Evergy, Inc. and The Bank of New York Mellon Trust Company, N.A. (formerly The Bank of New York Trust Company, N.A.) (as successor to BNY Midwest Trust Company), as trustee (filed as Exhibit 4.1 to Evergy’s Current Report on Form 8-K filed on June 4, 2018 (File No. 001-38515)).

~~Evergy~~

~~4.2~~

Supplemental Indenture No. 3, dated as of June 4, 2018, by and among Great Plains Energy Incorporated, Evergy, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (filed as Exhibit 4.2 to Evergy’s Current Report on Form 8-K filed on June 4, 2018 (File No. 001-38515)).

~~Evergy~~

~~4.3~~

Form of Forty-Eighth Supplemental Indenture, dated as of June 4, 2018, by and among Westar Energy, Inc. and The Bank of New York Mellon Trust Company, N.A., as successor to Harris Trust and Savings Bank (filed as Exhibit 4.1 to Westar’s Current Report on Form 8-K filed on June 4, 2018 (File No. 001-03523)).

~~Westar Energy~~

~~10.1~~

~~Assumption~~restated Credit Agreement, dated as of June ~~4, 2018, between~~2, 2023, by and among Evergy, Inc., Evergy Metro, Inc., Evergy Missouri West, Inc., and Evergy Kansas Central, Inc., as Borrowers, Wells Fargo Bank, National Association, as administrative agent, ~~(filed as Exhibit~~and the lenders party thereto. (Exhibit 10.1 to ~~Evergy’s Current Report on~~Evergy's, Evergy Metro's and Evergy Kansas Central's Form 8-K filed on June ~~4, 2018 (File No. 001-38515))~~2, 2023).

Evergy

~~10.2~~

Evergy Inc. Long-Term Incentive Plan (formerly named the Great Plains Energy Incorporated Long-Term Incentive Plan, as amended), effective as of June 4, 2018 (filed as Exhibit 99.1 to Evergy’s Registration Statement on Form S-8 filed on June 15, 2018 (File No. 333-225673).

Kansas Central
Evergy
~~Westar Energy~~
~~KCP&L~~

~~10.3~~

Great Plains Energy Incorporated Form of Restricted Share Units Award (Grant Date June 3, 2018) (filed as Exhibit 10.1 to Great Plains Energy Incorporated’s Current Report on Form 8-K filed on June 4, 2018 (File No. 001-32206)).

~~Evergy~~
~~KCP&L~~

~~10.4~~

Great Plains Energy Incorporated Form of Cash Retention Payment Agreement (Grant Date June 3, 2018) (filed as Exhibit 10.2 to Great Plains Energy Incorporated’s Current Report on Form 8-K filed on June 4, 2018 (File No. 001-32206)).

~~Evergy~~
~~KCP&L~~

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Metro

~~10.5~~31.1

~~Westar Energy, Inc. Form of Restricted Share Units Award (Grant Date June 3, 2018) (filed as Exhibit 10.1 to Westar’s Current Report on Form 8-K filed on June 4, 2018 (File No. 001-03523))~~

~~Evergy~~
~~Westar Energy~~

~~10.6~~

~~Evergy, Inc. Supplemental Executive Retirement Plan, effective as of June 4, 2018.~~

~~Evergy~~

~~10.7~~

~~Evergy, Inc. Nonqualified Deferred Compensation Plan, effective as of June 4, 2018.~~

~~Evergy~~

~~10.8~~

~~Westar Energy, Inc. Non-Employee Director Deferred Compensation Plan, as amended and restated effective as of May 17, 2018.~~

~~Evergy~~
~~Westar Energy~~

~~10.9~~

~~Summary of Evergy, Inc. Non-Employee Director Compensation.~~

~~Evergy~~

~~31.1~~

Rule 13a-14(a)/15d-14(a) Certification of ~~Terry Bassham.~~David A. Campbell.

Evergy

31.2

Rule 13a-14(a)/15d-14(a) Certification of ~~Anthony D. Somma.~~Kirkland B. Andrews.

Evergy

31.3

Rule 13a-14(a)/15d-14(a) Certification of ~~Terry Bassham.~~David A. Campbell.

~~Westar Energy~~Evergy Metro

31.4

Rule 13a-14(a)/15d-14(a) Certification of ~~Anthony D. Somma.~~Kirkland B. Andrews.

~~Westar Energy~~Evergy Metro

31.5

Rule 13a-14(a)/15d-14(a) Certification of ~~Terry Bassham.~~David A. Campbell.

~~KCP&L~~Evergy Kansas Central

31.6

Rule 13a-14(a)/15d-14(a) Certification of ~~Anthony D. Somma.~~Kirkland B. Andrews.

~~KCP&L~~Evergy Kansas Central

32.1

Section 1350 Certifications.

Evergy

32.2

Section 1350 Certifications.

~~Westar Energy~~Evergy Metro

32.3

Section 1350 Certifications.

~~KCP&L~~Evergy Kansas Central

101.INS

***

XBRL Instance Document.

~~Evergy~~
~~Westar Energy~~
~~KCP&L~~n/a

101.SCH

Inline XBRL Taxonomy Extension Schema Document.

Evergy
~~Westar Energy~~
~~KCP&L~~
Evergy Kansas Central
Evergy Metro

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

Evergy
~~Westar Energy~~
~~KCP&L~~
Evergy Kansas Central
Evergy Metro

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.

Evergy
~~Westar Energy~~
~~KCP&L~~
Evergy Kansas Central
Evergy Metro

101.LAB

Inline XBRL Taxonomy Extension Labels Linkbase Document.

Evergy
~~Westar Energy~~
~~KCP&L~~
Evergy Kansas Central
Evergy Metro

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

Evergy
~~Westar Energy~~
~~KCP&L~~
Evergy Kansas Central
Evergy Metro

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

Evergy
Evergy Kansas Central
Evergy Metro

* Filed with the SEC as exhibits to prior SEC filings and are incorporated herein by reference and made a part hereof. The SEC filings and the exhibit number of the documents so filed, and incorporated herein by reference, are stated in parenthesis in the description of such exhibit.

~~Table of Contents~~

** Furnished and shall not be deemed filed for the purpose of Section 18 of the Exchange Act. Such document shall not be incorporated by reference into any registration statement or other document pursuant to the Exchange

Table of Contents

Act or the Securities Act of 1933, as amended, unless otherwise indicated in such registration statement or other document.

*** The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

+ Indicates management contract or compensatory plan or arrangement.

Copies of any of the exhibits filed with the SEC in connection with this document may be obtained from Evergy, ~~Westar Energy~~Evergy Kansas Central or ~~KCP&L,~~Evergy Metro, as applicable, upon written request.

The registrants agree to furnish to the SEC upon request any instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of total assets of such registrant and its subsidiaries on a consolidated basis.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Evergy, Inc., ~~Westar Energy,~~Evergy Kansas Central, Inc. and ~~Kansas City Power & Light Company~~Evergy Metro, Inc. have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.



		EVERGY, INC.

Dated:	August ~~8, 2018~~3, 2023	By: /s/ ~~Anthony D. Somma~~Kirkland B. Andrews
		(~~Anthony D. Somma)~~Kirkland B. Andrews)
		(Executive Vice President and Chief Financial Officer)



		~~WESTAR ENERGY,~~EVERGY KANSAS CENTRAL, INC.

Dated:	August ~~8, 2018~~3, 2023	By: /s/ ~~Anthony D. Somma~~Kirkland B. Andrews
		(~~Anthony D. Somma)~~Kirkland B. Andrews)
		(Executive Vice President and Chief Financial Officer)



		~~KANSAS CITY POWER & LIGHT COMPANY~~EVERGY METRO, INC.

Dated:	August ~~8, 2018~~3, 2023	By: /s/ ~~Anthony D. Somma~~Kirkland B. Andrews
		(~~Anthony D. Somma)~~Kirkland B. Andrews)
		(Executive Vice President and Chief Financial Officer)



	Year to Date
	June 30, 2017
	As Filed			Updated
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(in millions)
Adjustments to reconcile income to net cash from operating activities:
Amortization of other	$	15.7		$	—
Amortization of deferred refueling outage	—			9.1
Deferred income taxes, net	20.3			—
Investment tax credit amortization	(0.5		)	—
Net deferred income taxes and credits	—			19.8
Payments for asset retirement obligations	—			(8.1		)
Other^(a)	(13.0		)	4.4
Changes in working capital items:
Fuel inventory and supplies	—			4.9
Fuel inventories^(a)	9.4			—
Materials and supplies^(a)	(4.5		)	—
Prepaid expenses and other current assets	—			(8.7		)
Accrued interest^(a)	(1.6		)	—
Other current liabilities	—			(2.9		)
Changes in other assets	—			40.6
Changes in other liabilities	—			8.0
Deferred refueling outage costs^(a)	8.1			—
Pension and post-retirement benefit obligations^(a)	36.8			—
Fuel recovery mechanisms^(a)	(3.6		)	—
Total reclassifications	$	67.1		$	67.1
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	$	—		$	(193.4	)
Utility capital expenditures	(181.4		)	—
Allowance for borrowed funds used during construction	(2.4		)	—
Other investing activities	(10.0		)	(0.4		)
Total reclassifications	$	(193.8	)	$	(193.8	)



June 30, 2018	Evergy			Westar Energy			KCP&L^(a)
	(millions)
Electric plant in service	$	27,158.2		$	13,181.2		$	10,541.0
Electric plant acquisition adjustment	740.6			740.6			—
Accumulated depreciation	(10,055.2		)	(4,793.7		)	(4,124.6		)
Plant in service	17,843.6			9,128.1			6,416.4
Construction work in progress	705.3			417.9			191.7
Nuclear fuel, net	123.5			61.3			62.2
Plant to be retired, net^(b)	147.5			6.8			—
Property, plant and equipment, net	$	18,819.9		$	9,614.1		$	6,670.3

December 31, 2017	Evergy			Westar Energy			KCP&L^(a)
	(millions)
Electric plant in service	$	12,954.3		$	12,954.3		$	10,213.2
Electric plant acquisition adjustment	739.0			739.0			—
Accumulated depreciation	(4,651.7		)	(4,651.7		)	(4,070.3		)
Plant in service	9,041.6			9,041.6			6,142.9
Construction work in progress	434.9			434.9			350.3
Nuclear fuel, net	71.4			71.4			72.4
Plant to be retired, net^(b)	5.9			5.9			—
Property, plant and equipment, net	$	9,553.8		$	9,553.8		$	6,565.6



	Three Months Ended June 30, 2017									Year to Date June 30, 2017
	As Previously Reported^(b)			Effect of Change			As Reported			As Previously Reported^(b)			Effect of Change			As Reported
Evergy	(millions)
Operating and maintenance expense	$	144.7		$	(5.1	)	$	139.6		$	285.1		$	(10.1	)	$	275.0
Total operating expenses	454.2			(5.1		)	449.1			900.4			(10.1		)	890.3
Income from operations	155.1			5.1			160.2			281.5			10.1			291.6
Other expense	(2.6		)	(5.1		)	(7.7		)	(8.0		)	(10.1		)	(18.1		)
Total other income (expense)	(1.0		)	(5.1		)	(6.1		)	(3.7		)	(10.1		)	(13.8		)
Westar Energy
Operating and maintenance expense	$	144.7		$	(5.1	)	$	139.6		$	285.1		$	(10.1	)	$	275.0
Total operating expenses	454.2			(5.1		)	449.1			900.4			(10.1		)	890.3
Income from operations	155.1			5.1			160.2			281.5			10.1			291.6
Other expense	(2.6		)	(5.1		)	(7.7		)	(8.0		)	(10.1		)	(18.1		)
Total other income (expense)	(1.0		)	(5.1		)	(6.1		)	(3.7		)	(10.1		)	(13.8		)
KCP&L^(a)
Operating and maintenance expense	$	126.2		$	(12.4	)	$	113.8		$	260.8		$	(24.4	)	$	236.4
Total operating expenses	368.9			(12.4		)	356.5			706.6			(24.4		)	682.2
Income from operations	113.8			12.4			126.2			172.0			24.4			196.4
Other expense	(2.3		)	(12.4		)	(14.7		)	(4.4		)	(24.4		)	(28.8		)
Total other income (expense)	(0.6		)	(12.4		)	(13.0		)	(0.2		)	(24.4		)	(24.6		)



Description	Income Statement Line Item	Expected Payment Period	Evergy			Westar Energy			KCP&L
			(millions)
One-time bill credits	Operating revenues	2018 - 2019	$	(59.7	)	$	(23.1	)	$	(22.4	)
Annual bill credits	Operating revenues	2019 - 2022	(4.8		)	(3.6		)	(1.2		)
Total impact to operating revenues			$	(64.5	)	$	(26.7	)	$	(23.6	)

Charitable contributions and community support	Operating and maintenance	2018 - 2027	$	24.7		$	—		$	—
Voluntary severance and accelerated equity compensation	Operating and maintenance	2018	39.9			39.9			—
Other transaction and transition costs	Operating and maintenance	2018	40.7			19.0			0.6
Reallocation and deferral of merger transition costs	Operating and maintenance	n/a	(47.8		)	(13.8		)	(23.2		)
Total impact to operating and maintenance expense			$	57.5		$	45.1		$	(22.6	)
Total			$	(122.0	)	$	(71.8	)	$	(1.0	)



	(millions, except share amounts)
Great Plains Energy common stock shares outstanding as of June 4, 2018	215,800,074
Great Plains Energy restricted stock awards outstanding as of June 4, 2018	(204,825		)
Great Plains Energy shares to be converted to Evergy shares	215,595,249
Exchange ratio	0.5981
Evergy common stock shares issued to Great Plains Energy shareholders	128,947,518
Closing price of Westar Energy common stock as of June 4, 2018	$	54.00
Fair value of Evergy shares issued to Great Plains Energy shareholders	$	6,963.2
Fair value of Great Plains Energy's equity compensation awards	12.5
Total purchase price	$	6,975.7



	(millions)
Current assets	$	2,151.7
Property, plant and equipment, net	9,179.7
Goodwill	2,333.7
Other long-term assets, excluding goodwill	1,235.9
Total assets	$	14,901.0
Current liabilities	1,673.9
Long-term liabilities, excluding long-term debt	2,892.8
Long-term debt, net	3,358.6
Total liabilities	$	7,925.3
Total purchase price	$	6,975.7



Three Months Ended June 30, 2018	Evergy		Westar Energy		KCP&L^(a)
Revenues	(millions)
Residential	$	342.0	$	221.1	$	187.0
Commercial	259.1		170.0		196.3
Industrial	108.6		91.8		34.1
Other retail	6.4		5.7		2.3
Total electric retail	$	716.1	$	488.6	$	419.7
Wholesale	89.7		87.1		5.5
Transmission	75.1		72.2		3.9
Industrial steam and other	2.2		1.3		2.3
Total revenue from contracts with customers	$	883.1	$	649.2	$	431.4
Other	10.3		1.7		20.8
Operating revenues	$	893.4	$	650.9	$	452.2

Year to Date June 30, 2018	Evergy		Westar Energy		KCP&L^(a)
Revenues	(millions)
Residential	$	522.3	$	401.4	$	341.9
Commercial	414.5		325.4		378.1
Industrial	202.1		185.3		66.3
Other retail	10.6		9.9		5.0
Total electric retail	$	1,149.5	$	922.0	$	791.3
Wholesale	183.9		181.3		8.6
Transmission	147.0		144.1		7.2
Industrial steam and other	4.0		3.1		2.3
Total revenue from contracts with customers	$	1,484.4	$	1,250.5	$	809.4
Other	9.2		0.6		39.9
Operating revenues	$	1,493.6	$	1,251.1	$	849.3



	Performance Shares		Grant Date Fair Value*
Beginning balance January 1, 2018		—		$	—
Converted Great Plains Energy awards upon merger		351,708		63.79
Ending balance June 30, 2018		351,708		63.79



	Nonvested Restricted Stock			Grant Date Fair Value*
Beginning balance January 1, 2018		—			$	—
Converted Great Plains Energy awards upon merger		122,505			54.05
Vested		(1,316	)		54.50
Ending balance June 30, 2018		121,189			54.04



	Nonvested Restricted Share Units			Grant Date Fair Value*
Beginning balance January 1, 2018		255,964			$	46.09
Granted		222,465			52.16
Converted Great Plains Energy awards upon merger		82,331			53.77
Vested		(342,599	)		46.81
Forfeited		(704	)		49.73
Ending balance June 30, 2018		217,457			54.07



			Amounts Drawn
	Credit Facility		Commercial Paper		Letters of Credit		Cash Borrowings		Available Borrowings		Weighted Average Interest Rate on Short-Term Borrowings
June 30, 2018	(millions)
Evergy, Inc.	$	200.0	n/a		$	1.0	$	60.0	$	139.0	3.60%
Westar Energy^(b)	979.3		488.2		18.3		—		472.8		2.40%
KCP&L	600.0		322.4		2.7		—		274.9		2.49%
GMO	450.0		208.7		2.0		—		239.3		2.38%
Evergy	$	2,229.3	$	1,019.3	$	24.0	$	60.0	$	1,126.0

December 31, 2017
Westar Energy^(b)	$	979.3	$	275.7	$	11.8	$	—	$	691.8	1.83%
KCP&L^(a)	600.0		167.5		2.7		—		429.8		1.95%
Evergy	979.3		275.7		11.8		—		691.8		1.83%



Description	December 31 2017			Level 1			Level 2			Level 3			NAV
Westar Energy		(millions)
Assets
Nuclear decommissioning trust^(a)(c)
Domestic equity funds		$	73.8		$	—		$	68.7		$	—		$	5.1
International equity funds		47.9			—			47.9			—			—
Core bond fund		33.3			—			33.3			—			—
High-yield bond fund		18.1			—			18.1			—			—
Emerging markets bond fund		17.3			—			17.3			—			—
Combination debt/equity/other fund		14.1			—			14.1			—			—
Alternative investments fund		21.7			—			—			—			21.7
Real estate securities fund		10.8			—			—			—			10.8
Cash equivalents		0.1			0.1			—			—			—
Total nuclear decommissioning trust		237.1			0.1			199.4			—			37.6
Rabbi trust^(c)
Core bond fund		27.3			—			27.3			—			—
Combination debt/equity/other fund		6.8			—			6.8			—			—
Cash equivalents		0.2			0.2			—			—			—
Total rabbi trust		34.3			0.2			34.1			—			—
Total		$	271.4		$	0.3		$	233.5		$	—		$	37.6
KCP&L^(d)
Assets
Nuclear decommissioning trust ^(a)
Equity securities		$	183.8		$	183.8		$	—		$	—		$	—
Debt securities
U.S. Treasury		35.3			35.3			—			—			—
U.S. Agency		0.4			—			0.4			—			—
State and local obligations		2.1			—			2.1			—			—
Corporate bonds		34.1			—			34.1			—			—
Foreign governments		0.1			—			0.1			—			—
Cash equivalents		2.5			2.5			—			—			—
Other		0.1			0.1			—			—			—
Total nuclear decommissioning trust		258.4			221.7			36.7			—			—
Self-insured health plan trust^(b)
Equity securities		0.5			0.5			—			—			—
Debt securities		2.7			0.3			2.4			—			—
Cash and cash equivalents		7.7			7.7			—			—			—
Total self-insured health plan trust		10.9			8.5			2.4			—			—
Total		$	269.3		$	230.2		$	39.1		$	—		$	—
Evergy
Assets
Nuclear decommissioning trust^(a)(c)		$	237.1		$	0.1		$	199.4		$	—		$	37.6
Rabbi trust^(c)		34.3			0.2			34.1			—			—
Total		$	271.4		$	0.3		$	233.5		$	—		$	37.6



	Revenues and Costs										MWhs Sold
Three Months Ended June 30	2018			2017			Change				2018	2017	Change
Retail revenues	(millions)										(thousands)
Residential	$	342.0		$	181.6			$	160.4		3,326	1,393	1,933
Commercial	259.1			175.7				83.4			3,695	1,814	1,881
Industrial	108.6			104.1				4.5			1,852	1,422	430
Other retail revenues	6.4			7.3				(0.9		)	29	25	4
Total electric retail	716.1			468.7				247.4			8,902	4,654	4,248
Wholesale revenues	89.7			68.8				20.9			3,004	1,993	1,011
Transmission revenues	75.1			71.5				3.6			N/A	N/A	N/A
Other revenues	12.5			0.3				12.2			N/A	N/A	N/A
Operating revenues	893.4			609.3				284.1			11,906	6,647	5,259
Fuel and purchased power	(229.7		)	(111.8		)		(117.9		)
SPP network transmission costs	(68.4		)	(61.8		)		(6.6		)
Utility gross margin ^(a)	$	595.3		$	435.7			$	159.6
^(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.

	Revenues and Costs										MWhs Sold
Year to Date June 30	2018			2017				Change			2018	2017	Change
Retail revenues	(millions)										(thousands)
Residential	$	522.3		$	350.9			$	171.4		4,798	2,747	2,051
Commercial	414.5			325.3				89.2			5,392	3,432	1,960
Industrial	202.1			198.7				3.4			3,211	2,756	455
Other retail revenues	10.6			12.3				(1.7		)	43	44	(1	)
Total electric retail	1,149.5			887.2				262.3			13,444	8,979	4,465
Wholesale revenues	183.9			152.7				31.2			5,905	4,484	1,421
Transmission revenues	147.0			142.2				4.8			N/A	N/A	N/A
Other revenues	13.2			(0.2		)		13.4			N/A	N/A	N/A
Operating revenues	1,493.6			1,181.9				311.7			19,349	13,463	5,886
Fuel and purchased power	(365.2		)	(225.6		)		(139.6		)
SPP network transmission costs	(136.0		)	(122.4		)		(13.6		)
Utility gross margin ^(a)	$	992.4		$	833.9			$	158.5
^(a)Utilitygross margin is a non-GAAP financial measure. See explanation of utility gross margin above.



	Total Change			Change Due to Merger		Remaining Change
Assets	(in millions)
Cash and cash equivalents	$	1,276.7		$	1,154.2	$	122.5
Accounts receivable, net	198.0			155.6		42.4
Accounts receivable pledged as collateral	195.0			180.0		15.0
Fuel inventories and supplies	246.3			271.5		(25.2		)
Regulatory assets - current	248.2			207.8		40.4
Prepaid expenses and other assets	46.1			41.5		4.6
Property, plant and equipment, net	9,266.1			9,179.7		86.4
Property, plant and equipment of variable interest entities, net	(3.6		)	—		(3.6		)
Regulatory assets	852.5			829.1		23.4
Nuclear decommissioning trust	261.1			261.3		(0.2		)
Goodwill	2,333.7			2,333.7		—
Other	114.8			145.5		(30.7		)
Liabilities
Current maturities of long-term debt	819.3			415.3		404.0
Current maturities of long-term debt of variable interest entities	1.8			—		1.8
Notes payable and commercial paper	803.6			561.0		242.6
Collateralized note payable	195.0			180.0		15.0
Accounts payable	123.4			191.4		(68.0		)
Accrued dividends	(53.8		)	—		(53.8		)
Accrued taxes	122.6			82.0		40.6
Accrued interest	9.3			48.0		(38.7		)
Regulatory liabilities - current	77.9			17.7		60.2
Other current liabilities	155.1			119.1		36.0
Long-term debt, net	2,953.5			3,358.6		(405.1		)
Long-term debt of variable interest entities, net	(30.3		)	—		(30.3		)
Deferred income taxes	620.6			664.9		(44.3		)
Unamortized investment tax credits	122.8			124.3		(1.5		)
Regulatory liabilities	1,267.8			1,172.9		94.9
Pension and post-retirement liability	467.9			477.3		(9.4		)
Asset retirement obligations	247.9			366.1		(118.2		)
Other long-term liabilities	95.5			83.1		12.4



Type of Authorization	Commission	Expiration Date	Authorization Amount	Available Under Authorization
Westar Energy & KGE			(in millions)
Short-Term Debt	FERC	February 2020	$1,000.0	$511.8
KCP&L
Short-Term Debt	FERC	December 2018	$1,000.0	$677.6
Long-Term Debt	MPSC	September 2019	$750.0	$450.0
GMO
Short-Term Debt	FERC	March 2020	$750.0	$541.3