UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended ~~June 30, 2021~~March 31, 2022

☐ 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

(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

New York Stock Exchange

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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

☐

Evergy Kansas Central, Inc.

Yes

☐

Evergy Metro, Inc.

Yes

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Evergy, Inc.

Yes

☐

Evergy Kansas Central, Inc.

Yes

☐

Evergy Metro, Inc.

Yes

☐

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

Evergy, Inc.

Large Accelerated Filer

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

Evergy Kansas Central, Inc.

Large Accelerated Filer

☐

Accelerated Filer

☐

Non-accelerated Filer

Smaller Reporting Company

☐

Emerging Growth Company

☐

Evergy Metro, Inc.

Large Accelerated Filer

☐

Accelerated Filer

☐

Non-accelerated Filer

Smaller Reporting Company

☐

Emerging Growth Company

☐

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.

☐

Evergy Kansas Central, Inc.

☐

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

☐

Evergy Kansas Central, Inc.

Yes

☐

Evergy Metro, Inc.

Yes

☐

On ~~July 30, 2021,~~April 29, 2022, Evergy, Inc. had ~~229,297,836~~229,478,276 shares of common stock outstanding. On ~~July 30, 2021,~~April 29, 2022, Evergy Metro, Inc. and Evergy Kansas Central, Inc. each had 1 share of common stock outstanding and held by Evergy, Inc.

Evergy Kansas Central, Inc. and Evergy Metro, Inc. meet the conditions set forth in General Instruction (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), Evergy Kansas Central, Inc. (Evergy Kansas Central) and Evergy Metro, Inc. (Evergy Metro) (collectively, the Evergy Companies). Information relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other registrants.

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 consolidated financial statements and related notes and with the management's discussion and analysis of financial condition and results of operations included in the ~~2020~~2021 Form 10-K for each of Evergy, Evergy Kansas Central and Evergy Metro.

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TABLE OF CONTENTS
			Page Number
Cautionary Statements Regarding Certain Forward-Looking Information			4
Glossary of Terms			6

Part I - Financial Information

Item 1.	Financial Statements
	Evergy, Inc.
	Unaudited Consolidated Balance Sheets		8
	Unaudited Consolidated Statements of Comprehensive Income		10
	Unaudited Consolidated Statements of Cash Flows		211
	Unaudited Consolidated Statements of Changes in Equity		312
	Evergy Kansas Central, Inc.
	Unaudited Consolidated Balance Sheets		513
	Unaudited Consolidated Statements of Income		715
	Unaudited Consolidated Statements of Cash Flows		816
	Unaudited Consolidated Statements of Changes in Equity		917
	Evergy Metro, Inc.
	Unaudited Consolidated Balance Sheets		1018
	Unaudited Consolidated Statements of Comprehensive Income		1220
	Unaudited Consolidated Statements of Cash Flows		1321
	Unaudited Consolidated Statements of Changes in Equity		1422

	Combined Notes to Unaudited Consolidated Financial Statements for Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc.		1523
	Note 1:	Organization and Basis of Presentation	1523
	Note 2:	Revenue	2128
	Note 3:	Receivables	2229
	Note 4:	Rate Matters and Regulation	24
	~~Note 5:~~	~~Goodwill~~	2631


	Note 6:5:	Pension Plans and Post-Retirement Benefits	2734
	Note 7:6:	Short-Term Borrowings and Short-Term Bank Lines of Credit	2936
	Note 7:	Long-Term Debt	37
	Note 8:	~~Long-Term Debt~~Fair Value Measurements	3037
	Note 9:	~~Fair Value Measurements~~Commitments and Contingencies	3041
	Note 10:	~~Commitments and Contingencies~~	35
	~~Note 11:~~	Related Party Transactions and Relationships	3844
	~~Note 12:~~	~~Shareholders' Equity~~	39
	Note ~~13:~~11:	Taxes	4046
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		4348
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		6059
Item 4.	Controls and Procedures		6059

Part II - Other Information

Item 1.	Legal Proceedings		6260
Item 1A.	Risk Factors		6260
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		6261
Item 3.	Defaults Upon Senior Securities		6261
Item 4.	Mine Safety Disclosures		6261
Item 5.	Other Information		6362
Item 6.	Exhibits		64

Signatures			66

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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 Evergy's strategic plan, including, without limitation, those related to earnings per 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 of generation resources and energy storage; target emissions reductions; and other matters relating to expected financial performance or affecting future operations. Forward-looking statements are often accompanied by forward-looking words such as "anticipates," "believes," "expects," "estimates," "forecasts," "should," "could," "may," "seeks," "intends," "proposed," "projects," "planned," "target," "outlook," "remain confident," "goal," "will" or other words of similar meaning. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking information.

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Evergy Companies are providing a number of risks, uncertainties and other factors that could cause actual results to differ from the forward-looking information. These risks, uncertainties and other factors include, but are not limited to: economic and weather conditions and any impact on sales, prices and costs; changes in business strategy or operations; the impact of federal, state and local political, legislative, judicial and regulatory actions or developments, including deregulation, re-regulation, securitization and restructuring of the electric utility industry; decisions of regulators regarding, among other things, customer rates and the prudency of operational decisions such as capital expenditures and asset retirements; changes in applicable laws, regulations, rules, principles or practices, or the interpretations thereof, governing tax, accounting and environmental matters, including air and water quality and waste management and disposal; the impact of climate change, including increased frequency and severity of significant weather events and the extent to which counterparties are willing to do business with, finance the operations of or purchase energy from the Evergy Companies due to the fact that the Evergy Companies operate coal-fired generation; prices and availability of electricity in wholesale markets; market perception of the energy industry and the Evergy Companies; the impact of the Coronavirus (COVID-19) pandemic on, among other things, sales, results of operations, financial condition, liquidity and cash flows, and also on operational issues, such as supply chain issues and the availability and ability of the Evergy Companies' employees and suppliers to perform the functions that are necessary to operate the Evergy Companies; changes in the energy trading markets in which the Evergy Companies participate, including retroactive repricing of transactions by regional transmission organizations (RTO) and independent system operators; financial market conditions and performance, including changes in interest rates and credit spreads and in availability and cost of capital and the effects on derivatives and hedges, nuclear decommissioning trust and pension plan assets and costs; impairments of long-lived assets or goodwill; credit ratings; inflation rates; the transition to a replacement for the London Interbank Offered Rate (LIBOR) benchmark interest rate; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of physical and cybersecurity breaches, criminal activity, terrorist attacks, acts of war and other disruptions to the Evergy Companies' facilities or information technology infrastructure or the facilities and infrastructure of third-party service providers on which the Evergy Companies rely; ability to carry out marketing and sales plans; cost, availability, quality and timely provision of equipment, supplies, labor and fuel; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; delays and cost increases of generation, transmission, distribution or other projects; the Evergy Companies' ability to manage their transmission and distribution development plans and transmission joint ventures; the inherent risks associated with the ownership and operation of a nuclear facility, including environmental, health, safety, regulatory and financial risks; workforce risks, including those related to the Evergy Companies' ability to attract and retain qualified personnel, maintain satisfactory relationships with their labor unions and manage costs of, or changes in, retirement, health care and other benefits; 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 possibility that strategic initiatives, including mergers, acquisitions and divestitures, and long-term financial plans, may not create the value that they are expected to achieve in a timely manner or at all; difficulties in maintaining relationships with customers, employees, regulators or suppliers; and other risks and uncertainties.

This list of factors is not all-inclusive because it is not possible to predict all factors. You should also carefully consider the information contained in our other filings with the Securities and Exchange Commission (SEC). Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Evergy Companies with the ~~Securities and Exchange Commission (SEC). Reports filed by the Evergy Companies with the 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

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~~of the particular~~ statement. The Evergy Companies undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

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, ~~www.evergy.com.~~http://investors.evergy.com. Such reports are accessible at no charge and are made available as soon as reasonably practical after such material is filed with or furnished to the SEC.

Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations section of their website, ~~www.evergy.com,~~http://investors.evergy.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on 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

AAO						Accounting authority order
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



~~Bluescape~~						~~Bluescape Energy Partners, LLC~~
BSER						Best system of emission reduction
CAA						Clean Air Act Amendments of 1990
CCRs						Coal combustion residuals
CO2						Carbon dioxide
COLI						Corporate-owned life insurance
COVID-19						Coronavirus
CPP						Clean Power Plan
CSAPR						Cross-State Air Pollution


ELG						Effluent limitations guidelines
EPA						Environmental Protection Agency
EPS						Earnings per common share
~~ERCOT~~						~~Electric Reliability Council of Texas~~
ERISA						Employee Retirement Income Security Act of 1974, as amended
ERSP						Earnings Review and Sharing Plan
Evergy						Evergy, Inc. and its consolidated subsidiaries
Evergy Board						Evergy Board of Directors
Evergy Companies						Evergy, Evergy Kansas Central, and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group
Evergy Kansas Central						Evergy Kansas Central, Inc., 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
~~FGD~~						~~Flue Gas Desulfurization~~

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

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Abbreviation or Acronym						Definition
kV						~~Kilovolt~~
~~kWh~~						~~Kilowatt hour~~

MDNR						Missouri Department of Natural Resources
MECG						Midwest Energy Consumers Group

MPSC						Public Service Commission of the State of Missouri
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

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.


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

VIE						Variable interest entity
Wolf Creek						Wolf Creek Generating Station

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


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

		June 30 2021			December 31 2020				March 31 2022			December 31 2021
ASSETS	ASSETS	(millions, except share amounts)						ASSETS	(millions, except share amounts)
CURRENT ASSETS:	CURRENT ASSETS:							CURRENT ASSETS:
Cash and cash equivalents	Cash and cash equivalents		$	58.4		$	144.9	Cash and cash equivalents		$	22.2		$	26.2

Receivables, net of allowance for credit losses of $20.0 and $19.3, respectively			398.4			273.9
Receivables, net of allowance for credit losses of $24.4 and $32.9, respectively								Receivables, net of allowance for credit losses of $24.4 and $32.9, respectively		185.2			221.6
Accounts receivable pledged as collateral	Accounts receivable pledged as collateral		326.0			360.0		Accounts receivable pledged as collateral		338.0			319.0
Fuel inventory and supplies	Fuel inventory and supplies		538.1			504.5		Fuel inventory and supplies		612.7			566.7
Income taxes receivable	Income taxes receivable		57.7			62.9		Income taxes receivable		16.9			28.0
Regulatory assets	Regulatory assets		272.7			206.2		Regulatory assets		425.3			424.1
Prepaid expenses and other assets			78.3			71.9
Prepaid expenses								Prepaid expenses		44.9			49.3
Other assets								Other assets		76.8			75.4
Total Current Assets	Total Current Assets		1,729.6			1,624.3		Total Current Assets		1,722.0			1,710.3
PROPERTY, PLANT AND EQUIPMENT, NET	PROPERTY, PLANT AND EQUIPMENT, NET		20,324.1			19,951.0		PROPERTY, PLANT AND EQUIPMENT, NET		21,157.7			21,002.6
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET	PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		151.4			154.9		PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		146.0			147.8
OTHER ASSETS:	OTHER ASSETS:							OTHER ASSETS:
Regulatory assets	Regulatory assets		2,214.4			1,868.2		Regulatory assets		2,058.0			1,991.1
Nuclear decommissioning trust fund	Nuclear decommissioning trust fund		729.4			652.1		Nuclear decommissioning trust fund		733.2			768.7
Goodwill	Goodwill		2,336.6			2,336.6		Goodwill		2,336.6			2,336.6
Other	Other		523.3			527.7		Other		586.4			563.4
Total Other Assets	Total Other Assets		5,803.7			5,384.6		Total Other Assets		5,714.2			5,659.8
TOTAL ASSETS	TOTAL ASSETS		$	28,008.8		$	27,114.8	TOTAL ASSETS		$	28,739.9		$	28,520.5

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

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

		June 30 2021			December 31 2020				March 31 2022			December 31 2021
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY	(millions, except share amounts)						LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:	CURRENT LIABILITIES:							CURRENT LIABILITIES:
Current maturities of long-term debt	Current maturities of long-term debt		$	472.9		$	436.4	Current maturities of long-term debt		$	587.3		$	389.3
Current maturities of long-term debt of variable interest entities			0			18.8

Notes payable and commercial paper	Notes payable and commercial paper		913.0			315.0		Notes payable and commercial paper		1,392.2			1,159.3
Collateralized note payable	Collateralized note payable		326.0			360.0		Collateralized note payable		338.0			319.0
Accounts payable	Accounts payable		390.0			654.0		Accounts payable		396.1			639.7

Accrued taxes	Accrued taxes		201.0			143.8		Accrued taxes		248.0			150.4
Accrued interest	Accrued interest		94.4			123.4		Accrued interest		143.3			118.8
Regulatory liabilities	Regulatory liabilities		48.5			26.1		Regulatory liabilities		56.5			70.7
Asset retirement obligations	Asset retirement obligations		28.7			40.2		Asset retirement obligations		19.0			19.5
Accrued compensation and benefits	Accrued compensation and benefits		59.8			55.5		Accrued compensation and benefits		50.2			51.6
Other	Other		169.6			182.6		Other		160.7			184.6
Total Current Liabilities	Total Current Liabilities		2,703.9			2,355.8		Total Current Liabilities		3,391.3			3,102.9
LONG-TERM LIABILITIES:	LONG-TERM LIABILITIES:							LONG-TERM LIABILITIES:
Long-term debt, net	Long-term debt, net		9,297.3			9,190.9		Long-term debt, net		9,247.1			9,297.9
Deferred income taxes	Deferred income taxes		1,745.3			1,664.8		Deferred income taxes		1,885.6			1,861.9
Unamortized investment tax credits	Unamortized investment tax credits		184.1			186.7		Unamortized investment tax credits		182.5			181.4
Regulatory liabilities	Regulatory liabilities		2,731.1			2,638.8		Regulatory liabilities		2,651.7			2,705.0
Pension and post-retirement liability	Pension and post-retirement liability		1,136.7			1,149.4		Pension and post-retirement liability		884.3			879.1
Asset retirement obligations	Asset retirement obligations		926.8			901.7		Asset retirement obligations		950.8			940.6
Other	Other		306.5			308.2		Other		309.1			310.0
Total Long-Term Liabilities	Total Long-Term Liabilities		16,327.8			16,040.5		Total Long-Term Liabilities		16,111.1			16,175.9
Commitments and Contingencies (Note 10)			0			0
Commitments and Contingencies (Note 9)								Commitments and Contingencies (Note 9)		0			0
EQUITY:	EQUITY:							EQUITY:
Evergy, Inc. Shareholders' Equity:	Evergy, Inc. Shareholders' Equity:							Evergy, Inc. Shareholders' Equity:
Common stock - 600,000,000 shares authorized, without par value 229,296,214 and 226,836,670 shares issued, stated value			7,197.6			7,080.0
Common stock - 600,000,000 shares authorized, without par value 229,476,558 and 229,299,900 shares issued, stated value								Common stock - 600,000,000 shares authorized, without par value 229,476,558 and 229,299,900 shares issued, stated value		7,206.4			7,205.5
Retained earnings	Retained earnings		1,835.0			1,702.8		Retained earnings		2,073.3			2,082.9
Accumulated other comprehensive loss	Accumulated other comprehensive loss		(46.6)			(49.4)		Accumulated other comprehensive loss		(42.6)			(44.0)
Total Evergy, Inc. Shareholders' Equity	Total Evergy, Inc. Shareholders' Equity		8,986.0			8,733.4		Total Evergy, Inc. Shareholders' Equity		9,237.1			9,244.4
Noncontrolling Interests	Noncontrolling Interests		(8.9)			(14.9)		Noncontrolling Interests		0.4			(2.7)
Total Equity	Total Equity		8,977.1			8,718.5		Total Equity		9,237.5			9,241.7
TOTAL LIABILITIES AND EQUITY	TOTAL LIABILITIES AND EQUITY		$	28,008.8		$	27,114.8	TOTAL LIABILITIES AND EQUITY		$	28,739.9		$	28,520.5

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

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EVERGY, INC.	EVERGY, INC.									EVERGY, 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

		2021		2020		2021		2020
Three Months Ended March 31											Three Months Ended March 31		2022		2021
		(millions, except per share amounts)										(millions, except per share amounts)
OPERATING REVENUES	OPERATING REVENUES	$	1,236.2	$	1,184.7	$	2,848.1	$	2,301.4		OPERATING REVENUES		$	1,223.9	$	1,611.9
OPERATING EXPENSES:	OPERATING EXPENSES:										OPERATING EXPENSES:
Fuel and purchased power	Fuel and purchased power	284.1		258.1		919.2		516.3			Fuel and purchased power		309.0		635.1
SPP network transmission costs	SPP network transmission costs	73.8		69.7		143.2		131.7			SPP network transmission costs		78.7		69.4
Operating and maintenance	Operating and maintenance	259.9		272.7		535.4		560.9			Operating and maintenance		252.2		275.5
Depreciation and amortization	Depreciation and amortization	225.2		221.6		444.5		440.1			Depreciation and amortization		229.0		219.3
Taxes other than income tax	Taxes other than income tax	97.9		90.9		192.8		183.2			Taxes other than income tax		101.9		94.9
Total Operating Expenses	Total Operating Expenses	940.9		913.0		2,235.1		1,832.2			Total Operating Expenses		970.8		1,294.2
INCOME FROM OPERATIONS	INCOME FROM OPERATIONS	295.3		271.7		613.0		469.2			INCOME FROM OPERATIONS		253.1		317.7
OTHER INCOME (EXPENSE):	OTHER INCOME (EXPENSE):										OTHER INCOME (EXPENSE):
Investment earnings		8.4		3.1		10.0		2.3
Investment earnings (loss)											Investment earnings (loss)		(9.6)		1.6
Other income	Other income	14.7		7.6		25.9		9.9			Other income		8.2		11.2
Other expense	Other expense	(18.8)		(14.9)		(39.7)		(37.6)			Other expense		(24.9)		(20.9)
Total Other Income (Expense), Net		4.3		(4.2)		(3.8)		(25.4)
Total Other Expense, Net											Total Other Expense, Net		(26.3)		(8.1)
Interest expense	Interest expense	93.8		99.5		187.8		195.7			Interest expense		91.8		94.0
INCOME BEFORE INCOME TAXES	INCOME BEFORE INCOME TAXES	205.8		168.0		421.4		248.1			INCOME BEFORE INCOME TAXES		135.0		215.6
Income tax expense	Income tax expense	19.6		33.7		42.6		43.8			Income tax expense		11.5		23.0
Equity in earnings of equity method investees, net of income taxes	Equity in earnings of equity method investees, net of income taxes	2.1		2.0		4.1		4.2			Equity in earnings of equity method investees, net of income taxes		2.1		2.0
NET INCOME	NET INCOME	188.3		136.3		382.9		208.5			NET INCOME		125.6		194.6
Less: Net income attributable to noncontrolling interests	Less: Net income attributable to noncontrolling interests	3.0		2.9		6.0		5.7			Less: Net income attributable to noncontrolling interests		3.1		3.0
NET INCOME ATTRIBUTABLE TO EVERGY, INC.	NET INCOME ATTRIBUTABLE TO EVERGY, INC.	$	185.3	$	133.4	$	376.9	$	202.8		NET INCOME ATTRIBUTABLE TO EVERGY, INC.		$	122.5	$	191.6
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 AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC. (see Note 1)
Basic earnings per common share	Basic earnings per common share	$	0.81	$	0.59	$	1.65	$	0.89		Basic earnings per common share		$	0.53	$	0.84
Diluted earnings per common share	Diluted earnings per common share	$	0.81	$	0.59	$	1.65	$	0.89		Diluted earnings per common share		$	0.53	$	0.84
AVERAGE COMMON SHARES OUTSTANDING	AVERAGE COMMON SHARES OUTSTANDING										AVERAGE COMMON SHARES OUTSTANDING
Basic	Basic	229.3		227.2		228.3		227.1			Basic		229.8		227.3
Diluted	Diluted	229.7		227.6		228.7		227.6			Diluted		230.2		227.6
COMPREHENSIVE INCOME	COMPREHENSIVE INCOME										COMPREHENSIVE INCOME
NET INCOME	NET INCOME	$	188.3	$	136.3	$	382.9	$	208.5		NET INCOME		$	125.6	$	194.6
Derivative hedging activity	Derivative hedging activity										Derivative hedging activity

Reclassification to expenses, net of tax	Reclassification to expenses, net of tax	1.4		(1.0)		2.8		0.3			Reclassification to expenses, net of tax		1.4		1.4
Derivative hedging activity, net of tax	Derivative hedging activity, net of tax	1.4		(1.0)		2.8		0.3			Derivative hedging activity, net of tax		1.4		1.4
Defined benefit pension plans

Amortization of net losses included in net periodic benefit costs, net of tax		0		(0.1)		0		(0.1)
Change in unrecognized pension expense, net of tax		0		(0.1)		0		(0.1)
Total other comprehensive income (loss)		1.4		(1.1)		2.8		0.2

Total other comprehensive income											Total other comprehensive income		1.4		1.4
COMPREHENSIVE INCOME	COMPREHENSIVE INCOME	189.7		135.2		385.7		208.7			COMPREHENSIVE INCOME		127.0		196.0
Less: comprehensive income attributable to noncontrolling interest		3.0		2.9		6.0		5.7
Less: Comprehensive income attributable to noncontrolling interest											Less: Comprehensive income attributable to noncontrolling interest		3.1		3.0
COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC.	COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC.	$	186.7	$	132.3	$	379.7	$	203.0		COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC.		$	123.9	$	193.0

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

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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		2021		2020
Three Months Ended March 31								Three Months Ended March 31	2022		2021
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)				CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	Net income	$	382.9	$	208.5			Net income	$	125.6	$	194.6
Adjustments to reconcile income to net cash from operating activities:	Adjustments to reconcile income to net cash from operating activities:							Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	Depreciation and amortization	444.5		440.1				Depreciation and amortization	229.0		219.3
Amortization of nuclear fuel	Amortization of nuclear fuel	19.8		29.0				Amortization of nuclear fuel	15.8		13.3
Amortization of deferred refueling outage	Amortization of deferred refueling outage	12.6		12.8				Amortization of deferred refueling outage	6.3		5.8
Amortization of corporate-owned life insurance	Amortization of corporate-owned life insurance	11.2		8.5				Amortization of corporate-owned life insurance	6.7		6.7
Non-cash compensation	Non-cash compensation	7.3		8.7				Non-cash compensation	4.5		3.1
Net deferred income taxes and credits	Net deferred income taxes and credits	37.1		69.7				Net deferred income taxes and credits	0.4		20.0
Allowance for equity funds used during construction	Allowance for equity funds used during construction	(14.3)		(4.6)				Allowance for equity funds used during construction	(7.4)		(7.5)
Payments for asset retirement obligations	Payments for asset retirement obligations	(4.4)		(4.0)				Payments for asset retirement obligations	(1.3)		(0.8)
Equity in earnings of equity method investees, net of income taxes	Equity in earnings of equity method investees, net of income taxes	(4.1)		(4.2)				Equity in earnings of equity method investees, net of income taxes	(2.1)		(2.0)
Income from corporate-owned life insurance	Income from corporate-owned life insurance	(1.2)		(6.3)				Income from corporate-owned life insurance	(0.7)		(0.6)
Other	Other	0.5		0.5				Other	0.3		0.2
Changes in working capital items:	Changes in working capital items:							Changes in working capital items:
Accounts receivable	Accounts receivable	(102.9)		(115.4)				Accounts receivable	29.8		26.3
Accounts receivable pledged as collateral	Accounts receivable pledged as collateral	34.0		42.0				Accounts receivable pledged as collateral	(19.0)		(5.0)
Fuel inventory and supplies	Fuel inventory and supplies	(33.3)		(38.4)				Fuel inventory and supplies	(45.8)		12.4
Prepaid expenses and other current assets	Prepaid expenses and other current assets	(88.0)		13.9				Prepaid expenses and other current assets	(48.0)		(82.6)
Accounts payable	Accounts payable	(232.3)		(123.6)				Accounts payable	(157.2)		(242.4)
Accrued taxes	Accrued taxes	62.4		27.9				Accrued taxes	108.7		90.4
Other current liabilities	Other current liabilities	(28.2)		(84.4)				Other current liabilities	(13.7)		50.6
Changes in other assets	Changes in other assets	(322.1)		66.0				Changes in other assets	13.9		(324.6)
Changes in other liabilities	Changes in other liabilities	43.1		(24.2)				Changes in other liabilities	19.3		(5.8)
Cash Flows from Operating Activities		224.6		522.5
Cash Flows from (used in) Operating Activities								Cash Flows from (used in) Operating Activities	265.1		(28.6)
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:	CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:							CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	Additions to property, plant and equipment	(891.1)		(635.6)				Additions to property, plant and equipment	(524.7)		(467.7)
Purchase of securities - trusts	Purchase of securities - trusts	(53.0)		(36.9)				Purchase of securities - trusts	(12.6)		(44.6)
Sale of securities - trusts	Sale of securities - trusts	44.9		30.3				Sale of securities - trusts	8.7		40.9
Investment in corporate-owned life insurance	Investment in corporate-owned life insurance	(13.5)		(16.1)				Investment in corporate-owned life insurance	(2.9)		(1.0)
Proceeds from investment in corporate-owned life insurance	Proceeds from investment in corporate-owned life insurance	1.5		58.6				Proceeds from investment in corporate-owned life insurance	1.1		0.8

Other investing activities	Other investing activities	(7.0)		(1.5)				Other investing activities	(0.9)		(3.6)
Cash Flows used in Investing Activities	Cash Flows used in Investing Activities	(918.2)		(601.2)				Cash Flows used in Investing Activities	(531.3)		(475.2)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:	CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:							CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	Short-term debt, net	598.0		(94.9)				Short-term debt, net	(267.1)		980.0

Proceeds from term loan facility								Proceeds from term loan facility	500.0		—

Collateralized short-term borrowings, net	Collateralized short-term borrowings, net	(34.0)		(42.0)				Collateralized short-term borrowings, net	19.0		5.0
Issuance of common stock		112.5		0

Proceeds from long-term debt	Proceeds from long-term debt	497.7		889.5				Proceeds from long-term debt	247.4		—

Retirements of long-term debt	Retirements of long-term debt	(351.1)		(251.1)				Retirements of long-term debt	(100.0)		(1.1)
Retirements of long-term debt of variable interest entities	Retirements of long-term debt of variable interest entities	(18.8)		(32.3)				Retirements of long-term debt of variable interest entities	—		(18.8)

Borrowings against cash surrender value of corporate-owned life insurance	Borrowings against cash surrender value of corporate-owned life insurance	51.8		53.4				Borrowings against cash surrender value of corporate-owned life insurance	0.6		0.4
Repayment of borrowings against cash surrender value of corporate-owned life insurance	Repayment of borrowings against cash surrender value of corporate-owned life insurance	(0.1)		(51.1)				Repayment of borrowings against cash surrender value of corporate-owned life insurance	—		(0.1)
Cash dividends paid	Cash dividends paid	(244.0)		(229.0)				Cash dividends paid	(131.3)		(121.4)

Other financing activities	Other financing activities	(4.9)		(10.8)				Other financing activities	(6.4)		(3.1)
Cash Flows from Financing Activities	Cash Flows from Financing Activities	607.1		231.7				Cash Flows from Financing Activities	262.2		840.9
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(86.5)		153.0				NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(4.0)		337.1
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:	CASH, CASH EQUIVALENTS AND RESTRICTED CASH:							CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	Beginning of period	144.9		23.2				Beginning of period	26.2		144.9
End of period	End of period	$	58.4	$	176.2			End of period	$	22.2	$	482.0

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, 2019 226,641,443 $ 7,070.4 $ 1,551.5 $ (50.0) $ (26.6) $ 8,545.3
Net income — — 69.4 — 2.8 72.2
Issuance of stock compensation and reinvested dividends, net of tax withholding 97,305 (3.0) — — — (3.0)
Dividends declared on common stock ($0.505 per share) — — (114.5) — — (114.5)
Dividend equivalents declared — — (0.7) — — (0.7)
Stock compensation expense — 4.6 — — — 4.6
Derivative hedging activity, net of tax — — — 1.3 — 1.3
Other — 0.2 — — — 0.2
Balance as of March 31, 2020 226,738,748 7,072.2 1,505.7 (48.7) (23.8) 8,505.4
Net income — — 133.4 — 2.9 136.3
Issuance of stock compensation and reinvested dividends, net of tax withholding 86,357 (2.9) — — — (2.9)
Dividends declared on common stock ($0.505 per share) — — (114.6) — — (114.6)
Dividend equivalents declared — — (0.4) — — (0.4)
Stock compensation expense — 4.1 — — — 4.1
Derivative hedging activity, net of tax — — — (1.0) — (1.0)
Change in unrecognized pension expense, net of tax — — — (0.1) — (0.1)
Other — 0.1 — — — 0.1
Balance as of June 30, 2020 226,825,105 $ 7,073.5 $ 1,524.1 $ (49.8) $ (20.9) $ 8,526.9

~~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, 2020 226,836,670 $ 7,080.0 $ 1,702.8 $ (49.4) $ (14.9) $ 8,718.5
Net income — — 191.6 — 3.0 194.6
Issuance of stock compensation and reinvested dividends, net of tax withholding 104,896 (1.1) — — — (1.1)
Issuance of restricted common stock 54,054 2.9 — — — 2.9
Dividends declared on common stock ($0.535 per share) — — (121.4) — — (121.4)
Dividend equivalents declared — — (0.2) — — (0.2)
Stock compensation expense — 2.6 — — — 2.6
Unearned compensation
Issuance of restricted common stock — (2.9) — — — (2.9)
Compensation expense recognized — 0.4 — — — 0.4
Derivative hedging activity, net of tax — — — 1.4 — 1.4
Other — (0.4) — — — (0.4)
Balance as of March 31, 2021 226,995,620 7,081.5 1,772.8 (48.0) (11.9) 8,794.4
Net income — — 185.3 — 3.0 188.3
Issuance of stock, net of issuance costs 2,269,447 112.5 — — — 112.5
Issuance of stock compensation and reinvested dividends, net of tax withholding 31,147 (0.6) — — — (0.6)
Dividends declared on common stock ($0.535 per share) — — (122.6) — — (122.6)
Dividend equivalents declared — — (0.5) — — (0.5)
Stock compensation expense — 3.8 — — 3.8
Unearned compensation
Compensation expense recognized — 0.5 — — — 0.5
Derivative hedging activity, net of tax — — — 1.4 — 1.4
Other — (0.1) — — — (0.1)
Balance as of June 30, 2021 229,296,214 $ 7,197.6 $ 1,835.0 $ (46.6) $ (8.9) $ 8,977.1


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

	Evergy, Inc. Shareholders
	Common stock shares	Common stock		Retained earnings		AOCI		Non-controlling interests		Total equity
	(millions, except share amounts)
Balance as of December 31, 2020	226,836,670	$	7,080.0	$	1,702.8	$	(49.4)	$	(14.9)	$	8,718.5
Net income	—	—		191.6		—		3.0		194.6

Issuance of stock compensation and reinvested dividends, net of tax withholding	104,896	(1.1)		—		—		—		(1.1)
Issuance of restricted common stock	54,054	2.9		—		—		—		2.9
Dividends declared on common stock ($0.535 per share)	—	—		(121.4)		—		—		(121.4)
Dividend equivalents declared	—	—		(0.2)		—		—		(0.2)
Stock compensation expense	—	2.6		—		—		—		2.6
Unearned compensation
Issuance of restricted common stock	—	(2.9)		—		—		—		(2.9)
Compensation expense recognized	—	0.4		—		—		—		0.4



Derivative hedging activity, net of tax	—	—		—		1.4		—		1.4
Other	—	(0.4)		—		—		—		(0.4)
Balance as of March 31, 2021	226,995,620	$	7,081.5	$	1,772.8	$	(48.0)	$	(11.9)	$	8,794.4










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

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

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

		June 30 2021			December 31 2020				March 31 2022			December 31 2021
ASSETS	ASSETS	(millions, except share amounts)						ASSETS	(millions, except share amounts)
CURRENT ASSETS:	CURRENT ASSETS:							CURRENT ASSETS:
Cash and cash equivalents	Cash and cash equivalents		$	27.8		$	28.7	Cash and cash equivalents		$	4.9		$	3.1
Receivables, net of allowance for credit losses of $7.6 and $7.5, respectively			292.7			218.9
Receivables, net of allowance for credit losses of $10.1 and $13.0, respectively								Receivables, net of allowance for credit losses of $10.1 and $13.0, respectively		178.9			201.6
Related party receivables	Related party receivables		13.2			6.7		Related party receivables		5.7			21.2
Accounts receivable pledged as collateral	Accounts receivable pledged as collateral		156.0			180.0		Accounts receivable pledged as collateral		165.0			153.0
Fuel inventory and supplies	Fuel inventory and supplies		281.1			276.4		Fuel inventory and supplies		313.5			283.2
Income taxes receivable	Income taxes receivable		41.3			25.3		Income taxes receivable		1.5			9.6
Regulatory assets	Regulatory assets		147.3			96.2		Regulatory assets		243.1			257.3
Prepaid expenses and other assets			31.2			27.4
Prepaid expenses								Prepaid expenses		16.6			19.4
Other assets								Other assets		40.1			21.6
Total Current Assets	Total Current Assets		990.6			859.6		Total Current Assets		969.3			970.0
PROPERTY, PLANT AND EQUIPMENT, NET	PROPERTY, PLANT AND EQUIPMENT, NET		10,325.8			10,193.6		PROPERTY, PLANT AND EQUIPMENT, NET		10,616.7			10,548.9
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET	PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		151.4			154.9		PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		146.0			147.8
OTHER ASSETS:	OTHER ASSETS:							OTHER ASSETS:
Regulatory assets	Regulatory assets		889.7			800.1		Regulatory assets		787.0			753.6
Nuclear decommissioning trust fund	Nuclear decommissioning trust fund		349.6			309.8		Nuclear decommissioning trust fund		354.1			368.4
Other	Other		255.0			271.1		Other		310.3			286.9
Total Other Assets	Total Other Assets		1,494.3			1,381.0		Total Other Assets		1,451.4			1,408.9
TOTAL ASSETS	TOTAL ASSETS		$	12,962.1		$	12,589.1	TOTAL ASSETS		$	13,183.4		$	13,075.6

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

1413

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

		June 30 2021			December 31 2020				March 31 2022			December 31 2021
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY	(millions, except share amounts)						LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:	CURRENT LIABILITIES:							CURRENT LIABILITIES:

Current maturities of long-term debt of variable interest entities			$	0		$	18.8

Notes payable and commercial paper	Notes payable and commercial paper		294.0			50.0		Notes payable and commercial paper		$	461.3		$	406.0
Collateralized note payable	Collateralized note payable		156.0			180.0		Collateralized note payable		165.0			153.0
Accounts payable	Accounts payable		166.4			280.1		Accounts payable		173.0			232.2
Related party payables	Related party payables		23.5			21.7		Related party payables		29.4			27.5

Accrued taxes	Accrued taxes		105.5			101.5		Accrued taxes		157.9			106.1
Accrued interest	Accrued interest		46.4			72.8		Accrued interest		91.1			71.5
Regulatory liabilities	Regulatory liabilities		11.9			11.9		Regulatory liabilities		13.4			12.8
Asset retirement obligations	Asset retirement obligations		11.2			11.2		Asset retirement obligations		7.3			7.3
Accrued compensation and benefits	Accrued compensation and benefits		26.1			11.1		Accrued compensation and benefits		24.8			13.8
Other	Other		122.3			133.5		Other		105.7			126.3
Total Current Liabilities	Total Current Liabilities		963.3			892.6		Total Current Liabilities		1,228.9			1,156.5
LONG-TERM LIABILITIES:	LONG-TERM LIABILITIES:							LONG-TERM LIABILITIES:
Long-term debt, net	Long-term debt, net		3,932.9			3,931.5		Long-term debt, net		3,934.9			3,934.2
Deferred income taxes	Deferred income taxes		843.2			824.5		Deferred income taxes		871.9			867.9
Unamortized investment tax credits	Unamortized investment tax credits		63.9			65.7		Unamortized investment tax credits		63.4			61.7
Regulatory liabilities	Regulatory liabilities		1,482.4			1,461.0		Regulatory liabilities		1,443.7			1,469.4
Pension and post-retirement liability	Pension and post-retirement liability		540.5			560.3		Pension and post-retirement liability		433.6			435.6
Asset retirement obligations	Asset retirement obligations		427.8			416.0		Asset retirement obligations		442.2			436.6
Other	Other		166.6			156.7		Other		173.2			172.2
Total Long-Term Liabilities	Total Long-Term Liabilities		7,457.3			7,415.7		Total Long-Term Liabilities		7,362.9			7,377.6
Commitments and Contingencies (Note 10)			0			0
Commitments and Contingencies (Note 9)								Commitments and Contingencies (Note 9)		0			0
EQUITY:	EQUITY:							EQUITY:
Evergy Kansas Central, Inc. Shareholder's Equity:	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		Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued		2,737.6			2,737.6
Retained earnings	Retained earnings		1,812.8			1,558.1		Retained earnings		1,853.6			1,806.6
Total Evergy Kansas Central, Inc. Shareholder's Equity	Total Evergy Kansas Central, Inc. Shareholder's Equity		4,550.4			4,295.7		Total Evergy Kansas Central, Inc. Shareholder's Equity		4,591.2			4,544.2
Noncontrolling Interests	Noncontrolling Interests		(8.9)			(14.9)		Noncontrolling Interests		0.4			(2.7)
Total Equity	Total Equity		4,541.5			4,280.8		Total Equity		4,591.6			4,541.5
TOTAL LIABILITIES AND EQUITY	TOTAL LIABILITIES AND EQUITY		$	12,962.1		$	12,589.1	TOTAL LIABILITIES AND EQUITY		$	13,183.4		$	13,075.6

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

Table of Contents


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


Three Months Ended March 31		2022		2021
	(millions)
OPERATING REVENUES		$	613.9	$	901.1
OPERATING EXPENSES:
Fuel and purchased power		108.1		294.8
SPP network transmission costs		78.7		69.4
Operating and maintenance		125.7		130.8
Depreciation and amortization		119.7		115.5
Taxes other than income tax		54.5		50.3
Total Operating Expenses		486.7		660.8
INCOME FROM OPERATIONS		127.2		240.3
OTHER INCOME (EXPENSE):
Investment loss		(1.5)		(0.5)
Other income		3.1		6.5
Other expense		(10.2)		(9.2)
Total Other Expense, Net		(8.6)		(3.2)
Interest expense		40.9		40.3
INCOME BEFORE INCOME TAXES		77.7		196.8
Income tax expense		3.6		16.6
Equity in earnings of equity method investees, net of income taxes		1.0		0.9
NET INCOME		75.1		181.1
Less: Net income attributable to noncontrolling interests		3.1		3.0
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC.		$	72.0	$	178.1

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

Table of Contents

EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Income
(Unaudited)
Three Months Ended
June 30 Year to Date
June 30
2021 2020 2021 2020
(millions)
OPERATING REVENUES $ 598.5 $ 570.8 $ 1,499.6 $ 1,130.9
OPERATING EXPENSES:
Fuel and purchased power 105.7 102.1 400.5 201.3
SPP network transmission costs 73.8 69.7 143.2 131.7
Operating and maintenance 130.2 115.2 261.0 238.9
Depreciation and amortization 116.3 113.5 231.8 225.6
Taxes other than income tax 52.0 49.1 102.3 97.7
Total Operating Expenses 478.0 449.6 1,138.8 895.2
INCOME FROM OPERATIONS 120.5 121.2 360.8 235.7
OTHER INCOME (EXPENSE):
Investment earnings 1.0 4.1 0.5 2.4
Other income 11.1 6.5 17.6 8.6
Other expense (7.7) (5.7) (16.9) (17.2)
Total Other Income (Expense), Net 4.4 4.9 1.2 (6.2)
Interest expense 39.8 45.8 80.1 87.4
INCOME BEFORE INCOME TAXES 85.1 80.3 281.9 142.1
Income tax expense 6.5 118.9 23.1 126.7
Equity in earnings of equity method investees, net of income taxes 1.0 1.0 1.9 2.2
NET INCOME (LOSS) 79.6 (37.6) 260.7 17.6
Less: Net income attributable to noncontrolling interests 3.0 2.9 6.0 5.7
NET INCOME (LOSS) ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC. $ 76.6 $ (40.5) $ 254.7 $ 11.9

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

~~Table of Contents~~


EVERGY KANSAS CENTRAL, 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		2021		2020
Three Months Ended March 31								Three Months Ended March 31	2022		2021
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)				CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	Net income	$	260.7	$	17.6			Net income	$	75.1	$	181.1
Adjustments to reconcile income to net cash from operating activities:	Adjustments to reconcile income to net cash from operating activities:							Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	Depreciation and amortization	231.8		225.6				Depreciation and amortization	119.7		115.5
Amortization of nuclear fuel	Amortization of nuclear fuel	9.8		14.5				Amortization of nuclear fuel	7.9		6.6
Amortization of deferred refueling outage	Amortization of deferred refueling outage	6.3		6.4				Amortization of deferred refueling outage	3.1		2.9
Amortization of corporate-owned life insurance	Amortization of corporate-owned life insurance	11.2		8.5				Amortization of corporate-owned life insurance	6.7		6.7

Net deferred income taxes and credits	Net deferred income taxes and credits	2.1		121.5				Net deferred income taxes and credits	(4.5)		7.9
Allowance for equity funds used during construction	Allowance for equity funds used during construction	(8.7)		(3.9)				Allowance for equity funds used during construction	(2.7)		(4.7)
Payments for asset retirement obligations	Payments for asset retirement obligations	0		(0.4)				Payments for asset retirement obligations	(0.6)		—
Equity in earnings of equity method investees, net of income taxes	Equity in earnings of equity method investees, net of income taxes	(1.9)		(2.2)				Equity in earnings of equity method investees, net of income taxes	(1.0)		(0.9)
Income from corporate-owned life insurance	Income from corporate-owned life insurance	(1.2)		(6.3)				Income from corporate-owned life insurance	(0.7)		(0.6)
Other	Other	(2.7)		(2.7)				Other	(1.4)		(1.4)
Changes in working capital items:	Changes in working capital items:							Changes in working capital items:
Accounts receivable	Accounts receivable	(58.6)		(79.3)				Accounts receivable	28.5		4.7
Accounts receivable pledged as collateral	Accounts receivable pledged as collateral	24.0		25.0				Accounts receivable pledged as collateral	(12.0)		(5.0)
Fuel inventory and supplies	Fuel inventory and supplies	(4.4)		(14.7)				Fuel inventory and supplies	(30.1)		5.4
Prepaid expenses and other current assets	Prepaid expenses and other current assets	(63.3)		(2.1)				Prepaid expenses and other current assets	(44.8)		(53.7)
Accounts payable	Accounts payable	(90.6)		17.4				Accounts payable	(25.9)		(109.9)
Accrued taxes	Accrued taxes	(12.0)		10.1				Accrued taxes	59.9		54.4
Other current liabilities	Other current liabilities	(40.6)		(65.8)				Other current liabilities	0.1		2.1
Changes in other assets	Changes in other assets	(83.8)		23.2				Changes in other assets	(4.4)		(94.0)
Changes in other liabilities	Changes in other liabilities	(18.2)		(30.6)				Changes in other liabilities	10.0		(16.5)
Cash Flows from Operating Activities	Cash Flows from Operating Activities	159.9		261.8				Cash Flows from Operating Activities	182.9		100.6
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:	CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:							CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	Additions to property, plant and equipment	(394.7)		(284.0)				Additions to property, plant and equipment	(223.7)		(212.7)
Purchase of securities - trusts	Purchase of securities - trusts	(39.5)		(11.8)				Purchase of securities - trusts	(3.1)		(36.3)
Sale of securities - trusts	Sale of securities - trusts	36.4		10.2				Sale of securities - trusts	1.6		35.3
Investment in corporate-owned life insurance	Investment in corporate-owned life insurance	(13.5)		(15.3)				Investment in corporate-owned life insurance	(2.9)		(1.0)
Proceeds from investment in corporate-owned life insurance	Proceeds from investment in corporate-owned life insurance	1.5		58.6				Proceeds from investment in corporate-owned life insurance	1.1		0.8
Other investing activities	Other investing activities	1.0		(0.2)				Other investing activities	4.2		(0.1)
Cash Flows used in Investing Activities	Cash Flows used in Investing Activities	(408.8)		(242.5)				Cash Flows used in Investing Activities	(222.8)		(214.0)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:	CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:							CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	Short-term debt, net	244.0		(34.2)				Short-term debt, net	55.3		195.0
Collateralized short-term debt, net	Collateralized short-term debt, net	(24.0)		(25.0)				Collateralized short-term debt, net	12.0		5.0
Proceeds from long-term debt		0		493.0
Retirements of long-term debt		0		(250.0)

Retirements of long-term debt of variable interest entities	Retirements of long-term debt of variable interest entities	(18.8)		(32.3)				Retirements of long-term debt of variable interest entities	—		(18.8)

Borrowings against cash surrender value of corporate-owned life insurance	Borrowings against cash surrender value of corporate-owned life insurance	48.9		50.4				Borrowings against cash surrender value of corporate-owned life insurance	0.6		0.4
Repayment of borrowings against cash surrender value of corporate-owned life insurance	Repayment of borrowings against cash surrender value of corporate-owned life insurance	(0.1)		(51.1)				Repayment of borrowings against cash surrender value of corporate-owned life insurance	—		(0.1)
Cash dividends paid	Cash dividends paid	0		(120.0)				Cash dividends paid	(25.0)		—

Other financing activities	Other financing activities	(2.0)		(3.1)				Other financing activities	(1.2)		(0.7)
Cash Flows from Financing Activities	Cash Flows from Financing Activities	248.0		27.7				Cash Flows from Financing Activities	41.7		180.8
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(0.9)		47.0				NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	1.8		67.4
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:	CASH, CASH EQUIVALENTS AND RESTRICTED CASH:							CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	Beginning of period	28.7		5.2				Beginning of period	3.1		28.7
End of period	End of period	$	27.8	$	52.2			End of period	$	4.9	$	96.1

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

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

		Evergy Kansas Central, Inc. Shareholder										Evergy Kansas Central, Inc. Shareholder
		Common stock shares	Common stock		Retained earnings		Non-controlling interests		Total equity			Common stock shares	Common stock		Retained earnings		Non-controlling interests		Total equity
		(millions, except share amounts)										(millions, except share amounts)
Balance as of December 31, 2019		1	$	2,737.6	$	1,494.0	$	(26.6)	$	4,205.0
Balance as of December 31, 2020											Balance as of December 31, 2020	1	$	2,737.6	$	1,558.1	$	(14.9)	$	4,280.8
Net income	Net income	—	—		52.4		2.8		55.2		Net income	—	—		178.1		3.0		181.1
Dividends declared on common stock		—	—		(60.0)		—		(60.0)

Balance as of March 31, 2020		1	2,737.6		1,486.4		(23.8)		4,200.2
Net income (loss)		—	—		(40.5)		2.9		(37.6)
Dividends declared on common stock		—	—		(60.0)		0		(60.0)
Balance as of June 30, 2020		1	$	2,737.6	$	1,385.9	$	(20.9)	$	4,102.6

Balance as of March 31, 2021											Balance as of March 31, 2021	1	$	2,737.6	$	1,736.2	$	(11.9)	$	4,461.9

Balance as of December 31, 2020		1	$	2,737.6	$	1,558.1	$	(14.9)	$	4,280.8
Net income		—	—		178.1		3.0		181.1

Balance as of March 31, 2021		1	2,737.6		1,736.2		(11.9)		4,461.9
Net income		—	—		76.6		3.0		79.6

Balance as of June 30, 2021		1	$	2,737.6	$	1,812.8	$	(8.9)	$	4,541.5

Balance as of December 31, 2021											Balance as of December 31, 2021	1	$	2,737.6	$	1,806.6	$	(2.7)	$	4,541.5
Net income											Net income	—	—		72.0		3.1		75.1
Dividends declared on common stock											Dividends declared on common stock	—	—		(25.0)		—		(25.0)
Balance as of March 31, 2022											Balance as of March 31, 2022	1	$	2,737.6	$	1,853.6	$	0.4	$	4,591.6

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

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

		June 30 2021			December 31 2020				March 31 2022			December 31 2021
ASSETS	ASSETS	(millions, except share amounts)						ASSETS	(millions, except share amounts)
CURRENT ASSETS:	CURRENT ASSETS:							CURRENT ASSETS:
Cash and cash equivalents	Cash and cash equivalents		$	16.7		$	71.6	Cash and cash equivalents		$	3.6		$	2.1
Receivables, net of allowance for credit losses of $8.7 and $8.1, respectively			89.7			45.0
Receivables, net of allowance for credit losses of $9.5 and $13.3, respectively								Receivables, net of allowance for credit losses of $9.5 and $13.3, respectively		19.2			31.0
Related party receivables	Related party receivables		223.9			225.6		Related party receivables		224.6			277.8
Accounts receivable pledged as collateral	Accounts receivable pledged as collateral		118.0			130.0		Accounts receivable pledged as collateral		123.0			116.0
Fuel inventory and supplies	Fuel inventory and supplies		192.3			170.4		Fuel inventory and supplies		220.7			211.0
Income taxes receivable			0			3.2

Regulatory assets	Regulatory assets		91.0			82.0		Regulatory assets		86.1			86.3
Prepaid expenses	Prepaid expenses		25.2			22.9		Prepaid expenses		21.2			22.6
Other assets	Other assets		14.3			14.2		Other assets		19.2			19.7
Total Current Assets	Total Current Assets		771.1			764.9		Total Current Assets		717.6			766.5
PROPERTY, PLANT AND EQUIPMENT, NET	PROPERTY, PLANT AND EQUIPMENT, NET		7,236.1			7,141.2		PROPERTY, PLANT AND EQUIPMENT, NET		7,480.8			7,474.9
OTHER ASSETS:	OTHER ASSETS:							OTHER ASSETS:
Regulatory assets	Regulatory assets		508.3			533.5		Regulatory assets		434.3			410.7
Nuclear decommissioning trust fund	Nuclear decommissioning trust fund		379.8			342.3		Nuclear decommissioning trust fund		379.1			400.3
Other	Other		130.1			133.9		Other		100.4			104.4
Total Other Assets	Total Other Assets		1,018.2			1,009.7		Total Other Assets		913.8			915.4
TOTAL ASSETS	TOTAL ASSETS		$	9,025.4		$	8,915.8	TOTAL ASSETS		$	9,112.2		$	9,156.8

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


EVERGY METRO, INC.
Consolidated Balance Sheets
(Unaudited)


	March 31 2022			December 31 2021
LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:
Current maturities of long-term debt		$	300.0		$	—

Collateralized note payable		123.0			116.0
Accounts payable		187.8			305.2
Related party payables		0.1			0.1
Accrued taxes		80.2			38.6
Accrued interest		37.9			26.4
Regulatory liabilities		40.3			54.6
Asset retirement obligations		10.7			11.0
Accrued compensation and benefits		25.3			37.8
Other		44.3			48.8
Total Current Liabilities		849.6			638.5
LONG-TERM LIABILITIES:
Long-term debt, net		2,625.5			2,925.0
Deferred income taxes		615.4			606.1
Unamortized investment tax credits		116.6			117.2
Regulatory liabilities		925.5			954.2
Pension and post-retirement liability		427.0			420.9
Asset retirement obligations		374.2			370.0
Other		102.6			103.7
Total Long-Term Liabilities		5,186.8			5,497.1
Commitments and Contingencies (Note 9)		0			0
EQUITY:
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value		1,563.1			1,563.1
Retained earnings		1,508.4			1,453.8
Accumulated other comprehensive income		4.3			4.3
Total Equity		3,075.8			3,021.2
TOTAL LIABILITIES AND EQUITY		$	9,112.2		$	9,156.8

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

EVERGY METRO, INC.
Consolidated Balance Sheets
(Unaudited)
June 30
2021 December 31
2020
LIABILITIES AND EQUITY (millions, except share amounts)
CURRENT LIABILITIES:
Collateralized note payable $ 118.0 $ 130.0
Accounts payable 185.6 280.1
Related party payables 0.1 0.1
Accrued taxes 66.2 34.9
Accrued interest 25.7 30.0
Regulatory liabilities 30.5 8.0
Asset retirement obligations 12.0 21.2
Accrued compensation and benefits 33.7 44.4
Other 38.2 37.3
Total Current Liabilities 510.0 586.0
LONG-TERM LIABILITIES:
Long-term debt, net 2,924.0 2,923.0
Deferred income taxes 546.7 558.8
Unamortized investment tax credits 117.7 118.5
Regulatory liabilities 970.8 899.4
Pension and post-retirement liability 569.5 565.1
Asset retirement obligations 367.4 357.7
Other 138.5 148.1
Total Long-Term Liabilities 5,634.6 5,570.6
Commitments and Contingencies (Note 10) 0 0
EQUITY:
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value 1,563.1 1,563.1
Retained earnings 1,313.1 1,191.5
Accumulated other comprehensive income 4.6 4.6
Total Equity 2,880.8 2,759.2
TOTAL LIABILITIES AND EQUITY $ 9,025.4 $ 8,915.8


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


Three Months Ended March 31		2022		2021
	(millions)
OPERATING REVENUES		$	422.5	$	516.2
OPERATING EXPENSES:
Fuel and purchased power		132.5		241.2
Operating and maintenance		78.1		93.4
Depreciation and amortization		82.9		78.4
Taxes other than income tax		33.4		32.0
Total Operating Expenses		326.9		445.0
INCOME FROM OPERATIONS		95.6		71.2
OTHER INCOME (EXPENSE):
Investment earnings		0.1		0.1
Other income		4.1		4.0
Other expense		(10.5)		(8.4)
Total Other Expense, Net		(6.3)		(4.3)
Interest expense		27.0		28.3
INCOME BEFORE INCOME TAXES		62.3		38.6
Income tax expense		7.7		5.1
NET INCOME		$	54.6	$	33.5
COMPREHENSIVE INCOME
NET INCOME		$	54.6	$	33.5
OTHER COMPREHENSIVE INCOME:
Derivative hedging activity
Reclassification to expenses, net of tax		—		—
Derivative hedging activity, net of tax		—		—
Total other comprehensive income (loss)		—		—
COMPREHENSIVE INCOME		$	54.6	$	33.5

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

EVERGY METRO, INC.
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended
June 30 Year to Date
June 30
2021 2020 2021 2020
(millions)
OPERATING REVENUES $ 438.7 $ 424.3 $ 954.9 $ 799.8
OPERATING EXPENSES:
Fuel and purchased power 114.9 101.3 356.1 193.8
Operating and maintenance 81.7 98.5 175.1 204.4
Depreciation and amortization 78.4 82.8 156.8 164.2
Taxes other than income tax 32.6 29.2 64.6 61.2
Total Operating Expenses 307.6 311.8 752.6 623.6
INCOME FROM OPERATIONS 131.1 112.5 202.3 176.2
OTHER INCOME (EXPENSE):
Investment earnings 0 0.3 0.1 0.8
Other income 3.3 1.1 7.3 1.1
Other expense (7.1) (5.9) (15.5) (13.3)
Total Other Expense, Net (3.8) (4.5) (8.1) (11.4)
Interest expense 27.1 27.7 55.4 56.3
INCOME BEFORE INCOME TAXES 100.2 80.3 138.8 108.5
Income tax expense (benefit) 12.1 (22.6) 17.2 (20.0)
NET INCOME $ 88.1 $ 102.9 $ 121.6 $ 128.5
COMPREHENSIVE INCOME
NET INCOME $ 88.1 $ 102.9 $ 121.6 $ 128.5
OTHER COMPREHENSIVE INCOME:
Derivative hedging activity
Reclassification to expenses, net of tax 0 0.2 0 0.1
Derivative hedging activity, net of tax 0 0.2 0 0.1
Total other comprehensive income 0 0.2 0 0.1
COMPREHENSIVE INCOME $ 88.1 $ 103.1 $ 121.6 $ 128.6


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

Three Months Ended March 31	2022		2021
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	$	54.6	$	33.5
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	82.9		78.4
Amortization of nuclear fuel	7.9		6.6
Amortization of deferred refueling outage	3.1		2.9
Net deferred income taxes and credits	(1.8)		(23.2)
Allowance for equity funds used during construction	(3.9)		(2.6)
Payments for asset retirement obligations	(0.4)		(0.3)
Other	(0.1)		(0.1)
Changes in working capital items:
Accounts receivable	13.0		(274.6)
Accounts receivable pledged as collateral	(7.0)		—
Fuel inventory and supplies	(9.7)		2.9
Prepaid expenses and other current assets	(1.2)		15.9
Accounts payable	(80.9)		(85.6)
Accrued taxes	41.6		57.5
Other current liabilities	(9.0)		57.3
Changes in other assets	16.3		10.2
Changes in other liabilities	5.4		4.1
Cash Flows from (used in) Operating Activities	110.8		(117.1)
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(172.4)		(160.2)
Purchase of securities - trusts	(9.6)		(8.4)
Sale of securities - trusts	7.1		5.6
Net money pool lending	57.0		100.0
Other investing activities	1.7		2.0
Cash Flows used in Investing Activities	(116.2)		(61.0)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	—		115.0
Collateralized short-term debt, net	7.0		—




Other financing activities	(0.1)		(0.1)
Cash Flows from Financing Activities	6.9		114.9
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	1.5		(63.2)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	2.1		71.6
End of period	$	3.6	$	8.4

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

EVERGY METRO, INC.
Consolidated Statements of Cash Flows
(Unaudited)
Year to Date June 30 2021 2020
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: (millions)
Net income $ 121.6 $ 128.5
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization 156.8 164.2
Amortization of nuclear fuel 10.0 14.5
Amortization of deferred refueling outage 6.3 6.4
Net deferred income taxes and credits (32.1) (21.5)
Allowance for equity funds used during construction (5.4) (0.7)
Payments for asset retirement obligations (2.7) (1.4)
Other (0.2) (0.2)
Changes in working capital items:
Accounts receivable (38.5) (53.6)
Accounts receivable pledged as collateral 12.0 15.0
Fuel inventory and supplies (21.9) (18.4)
Prepaid expenses and other current assets (16.6) (4.6)
Accounts payable (84.7) (63.6)
Accrued taxes 34.5 28.1
Other current liabilities 14.6 (11.2)
Changes in other assets 34.6 24.9
Changes in other liabilities 57.8 5.2
Cash Flows from Operating Activities 246.1 211.6
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment (295.2) (235.7)
Purchase of securities - trusts (13.6) (25.1)
Sale of securities - trusts 8.4 20.0
Net money pool lending 5.0 0
Other investing activities 3.5 2.7
Cash Flows used in Investing Activities (291.9) (238.1)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net 0 (169.3)
Collateralized short-term debt, net (12.0) (15.0)
Proceeds from long-term debt 0 396.5
Cash dividends paid 0 (80.0)
Other financing activities 2.9 2.9
Cash Flows from (used in) Financing Activities (9.1) 135.1
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (54.9) 108.6
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period 71.6 2.0
End of period $ 16.7 $ 110.6


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

	Common stock shares	Common Stock		Retained earnings		AOCI - Net gains (losses) on cash flow hedges		Total equity
	(millions, except share amounts)
Balance as of December 31, 2020	1	$	1,563.1	$	1,191.5	$	4.6	$	2,759.2
Net income	—	—		33.5		—		33.5


Balance as of March 31, 2021	1	$	1,563.1	$	1,225.0	$	4.6	$	2,792.7









Balance as of December 31, 2021	1	$	1,563.1	$	1,453.8	$	4.3	$	3,021.2
Net income	—	—		54.6		—		54.6


Balance as of March 31, 2022	1	$	1,563.1	$	1,508.4	$	4.3	$	3,075.8

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

EVERGY METRO, INC
Consolidated Statements of Changes in Equity
(Unaudited)
Common stock shares Common Stock Retained earnings AOCI - Net gains (losses) on cash flow hedges Total Equity
(millions, except share amounts)
Balance as of December 31, 2019 1 $ 1,563.1 $ 1,012.8 $ 4.8 $ 2,580.7
Net income — — 25.6 — 25.6
Dividends declared on common stock — — (60.0) — (60.0)
Derivative hedging activity, net of tax — — — (0.1) (0.1)
Balance as of March 31, 2020 1 1,563.1 978.4 4.7 2,546.2
Net income — — 102.9 — 102.9
Dividends declared on common stock — — (20.0) — (20.0)
Derivative hedging activity, net of tax — — — 0.2 0.2
Balance as of June 30, 2020 1 $ 1,563.1 $ 1,061.3 $ 4.9 $ 2,629.3
Balance as of December 31, 2020 1 $ 1,563.1 $ 1,191.5 $ 4.6 $ 2,759.2
Net income — — 33.5 — 33.5
Balance as of March 31, 2021 1 1,563.1 1,225.0 4.6 2,792.7
Net income — — 88.1 — 88.1
Balance as of June 30, 2021 1 $ 1,563.1 $ 1,313.1 $ 4.6 $ 2,880.8

~~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~~

EVERGY, INC.

EVERGY KANSAS CENTRAL, INC.

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., Evergy Kansas Central, Inc. and Evergy Metro, Inc., all registrants under this filing. The terms "Evergy," "Evergy Kansas Central," "Evergy Metro" and "Evergy Companies" are used throughout this report. "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Kansas Central" refers to Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Evergy Kansas Central and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.

1. 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 listed below.

•Evergy Kansas Central, Inc. (Evergy Kansas Central) is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has 1 active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South).

•Evergy Metro, Inc. (Evergy Metro) is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.

•Evergy Missouri West, Inc. (Evergy Missouri West) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.

•Evergy Transmission Company, LLC (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. (AEP). Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.

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

Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West conduct business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 15,400 MWs of owned generating capacity and renewable ~~purchased~~ power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.6 million customers in the states of Kansas and Missouri.

Basis of Presentation

These unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) 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 and should be read in conjunction with the consolidated financial statements in the Evergy Companies' combined ~~2020~~2021 Form 10-K.

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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 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.

Principles of Consolidation

Each of Evergy's, Evergy Kansas Central's and 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 1 segment).

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.


		June 30 2021		December 31 2020			March 31 2022		December 31 2021
Evergy	Evergy	(millions)				Evergy	(millions)
Fuel inventory	Fuel inventory	$	155.5	$	145.0	Fuel inventory	$	189.2	$	160.9
Supplies	Supplies	382.6		359.5		Supplies	423.5		405.8
Fuel inventory and supplies	Fuel inventory and supplies	$	538.1	$	504.5	Fuel inventory and supplies	$	612.7	$	566.7
Evergy Kansas Central	Evergy Kansas Central					Evergy Kansas Central
Fuel inventory	Fuel inventory	$	79.5	$	79.3	Fuel inventory	$	95.7	$	74.3
Supplies	Supplies	201.6		197.1		Supplies	217.8		208.9
Fuel inventory and supplies	Fuel inventory and supplies	$	281.1	$	276.4	Fuel inventory and supplies	$	313.5	$	283.2
Evergy Metro	Evergy Metro					Evergy Metro
Fuel inventory	Fuel inventory	$	54.8	$	44.9	Fuel inventory	$	66.4	$	62.0
Supplies	Supplies	137.5		125.5		Supplies	154.3		149.0
Fuel inventory and supplies	Fuel inventory and supplies	$	192.3	$	170.4	Fuel inventory and supplies	$	220.7	$	211.0

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Property, Plant and Equipment

The following tables summarize the property, plant and equipment of Evergy, Evergy Kansas Central and Evergy Metro.


June 30, 2021		Evergy			Evergy Kansas Central			Evergy Metro
March 31, 2022											March 31, 2022	Evergy			Evergy Kansas Central			Evergy Metro
			(millions)										(millions)
Electric plant in service	Electric plant in service		$	29,687.7		$	14,389.4		$	11,500.2	Electric plant in service		$	30,721.1		$	14,826.3		$	11,831.3
Electric plant acquisition adjustment	Electric plant acquisition adjustment		724.3			724.3			0		Electric plant acquisition adjustment		724.3			724.3			—
Accumulated depreciation	Accumulated depreciation		(11,287.0)			(5,442.6)			(4,653.0)		Accumulated depreciation		(11,701.4)			(5,660.8)			(4,833.2)
Plant in service, net	Plant in service, net		19,125.0			9,671.1			6,847.2		Plant in service, net		19,744.0			9,889.8			6,998.1
Construction work in progress	Construction work in progress		1,059.2			584.5			319.2		Construction work in progress		1,267.5			653.7			409.7
Nuclear fuel, net	Nuclear fuel, net		139.0			69.3			69.7		Nuclear fuel, net		145.4			72.4			73.0
Plant to be retired, net(a)	Plant to be retired, net(a)		0.9			0.9			0		Plant to be retired, net(a)		0.8			0.8			—
Property, plant and equipment, net	Property, plant and equipment, net		$	20,324.1		$	10,325.8		$	7,236.1	Property, plant and equipment, net		$	21,157.7		$	10,616.7		$	7,480.8

December 31, 2020		Evergy			Evergy Kansas Central			Evergy Metro
December 31, 2021											December 31, 2021	Evergy			Evergy Kansas Central			Evergy Metro
			(millions)										(millions)
Electric plant in service	Electric plant in service		$	28,914.8		$	14,095.1		$	11,161.8	Electric plant in service		$	30,289.9		$	14,686.3		$	11,656.9
Electric plant acquisition adjustment	Electric plant acquisition adjustment		724.3			724.3			0		Electric plant acquisition adjustment		724.3			724.3			—
Accumulated depreciation	Accumulated depreciation		(10,998.4)			(5,293.5)			(4,532.7)		Accumulated depreciation		(11,515.5)			(5,590.8)			(4,733.7)
Plant in service, net	Plant in service, net		18,640.7			9,525.9			6,629.1		Plant in service, net		19,498.7			9,819.8			6,923.2
Construction work in progress	Construction work in progress		1,153.5			589.1			433.9		Construction work in progress		1,350.6			652.2			475.3
Nuclear fuel, net	Nuclear fuel, net		155.9			77.7			78.2		Nuclear fuel, net		152.5			76.1			76.4
Plant to be retired, net(a)	Plant to be retired, net(a)		0.9			0.9			0		Plant to be retired, net(a)		0.8			0.8			—
Property, plant and equipment, net	Property, plant and equipment, net		$	19,951.0		$	10,193.6		$	7,141.2	Property, plant and equipment, net		$	21,002.6		$	10,548.9		$	7,474.9

(a) As of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, represents the planned retirement of Evergy Kansas Central analog meters prior to the end of their remaining useful lives.

Other Income (Expense), Net

In 2022, Evergy's investment earnings (loss) included a pre-tax loss of $14.2 million related to Evergy's equity investment in an early-stage energy solutions company. See "Evergy Equity Investment" in this Note 1 for further information.

The table below shows the detail of other expense for each of the Evergy Companies.


		Three Months Ended June 30				Year to Date June 30
		2021		2020		2021		2020
Three Months Ended March 31										Three Months Ended March 31	2022		2021
Evergy	Evergy	(millions)								Evergy	(millions)
Non-service cost component of net benefit cost	Non-service cost component of net benefit cost	$	(13.8)	$	(13.8)	$	(28.6)	$	(30.0)	Non-service cost component of net benefit cost	$	(18.4)	$	(14.8)
Other	Other	(5.0)		(1.1)		(11.1)		(7.6)		Other	(6.5)		(6.1)
Other expense	Other expense	$	(18.8)	$	(14.9)	$	(39.7)	$	(37.6)	Other expense	$	(24.9)	$	(20.9)
Evergy Kansas Central	Evergy Kansas Central									Evergy Kansas Central
Non-service cost component of net benefit cost	Non-service cost component of net benefit cost	$	(4.1)	$	(4.4)	$	(7.7)	$	(10.0)	Non-service cost component of net benefit cost	$	(4.6)	$	(3.6)
Other	Other	(3.6)		(1.3)		(9.2)		(7.2)		Other	(5.6)		(5.6)
Other expense	Other expense	$	(7.7)	$	(5.7)	$	(16.9)	$	(17.2)	Other expense	$	(10.2)	$	(9.2)
Evergy Metro	Evergy Metro									Evergy Metro
Non-service cost component of net benefit cost	Non-service cost component of net benefit cost	$	(6.1)	$	(6.3)	$	(14.0)	$	(13.2)	Non-service cost component of net benefit cost	$	(10.0)	$	(7.9)
Other	Other	(1.0)		0.4		(1.5)		(0.1)		Other	(0.5)		(0.5)
Other expense	Other expense	$	(7.1)	$	(5.9)	$	(15.5)	$	(13.3)	Other expense	$	(10.5)	$	(8.4)

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Earnings Per Share

To compute basic earnings per share (EPS), Evergy divides net income attributable to Evergy, Inc. by the weighted average number of common shares outstanding. Diluted EPS includes the effect of issuable common shares resulting from restricted share units (RSUs), ~~performance shares,~~ restricted stock and 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
		2021		2020		2021		2020
Three Months Ended March 31										Three Months Ended March 31	2022		2021
Income	Income	(millions, except per share amounts)								Income	(millions, except per share amounts)
Net income	Net income	$	188.3	$	136.3	$	382.9	$	208.5	Net income	$	125.6	$	194.6
Less: Net income attributable to noncontrolling interests		3.0		2.9		6.0		5.7
Less: net income attributable to noncontrolling interests										Less: net income attributable to noncontrolling interests	3.1		3.0
Net income attributable to Evergy, Inc.	Net income attributable to Evergy, Inc.	$	185.3	$	133.4	$	376.9	$	202.8	Net income attributable to Evergy, Inc.	$	122.5	$	191.6
Common Shares Outstanding	Common Shares Outstanding									Common Shares Outstanding
Weighted average number of common shares outstanding - basic	Weighted average number of common shares outstanding - basic	229.3		227.2		228.3		227.1		Weighted average number of common shares outstanding - basic	229.8		227.3
Add: Effect of dilutive securities		0.4		0.4		0.4		0.5
Weighted average number of common shares outstanding - dilutive		229.7		227.6		228.7		227.6
Add: effect of dilutive securities										Add: effect of dilutive securities	0.4		0.3
Diluted average number of common shares outstanding										Diluted average number of common shares outstanding	230.2		227.6
Basic and Diluted EPS	Basic and Diluted EPS	$	0.81	$	0.59	$	1.65	$	0.89	Basic and Diluted EPS	$	0.53	$	0.84

Anti-dilutive ~~shares~~securities excluded from the computation of diluted EPS for the three months ended ~~and year to date June 30, 2021,~~March 31, 2022, were 3,950,000 common shares issuable pursuant to a warrant. Anti-dilutive shares excluded from the computation of diluted EPS for the three months ended ~~June 30, 2020,~~March 31, 2021, were ~~295,802~~353,806 RSUs with performance measures and ~~58,714 RSUs with only service requirements. Anti-dilutive~~3,950,000 common shares ~~excluded from the computation of diluted EPS year~~issuable pursuant to ~~date June 30, 2020, were 295,802 RSUs with performance measures and 234 RSUs with only service requirements.~~a warrant.

Dividends Declared

In ~~August 2021,~~May 2022, Evergy's Board of Directors (Evergy Board) declared a quarterly dividend of ~~$0.535~~$0.5725 per share on Evergy's common stock. The common dividend is payable ~~September~~on June 20, ~~2021,~~2022, to shareholders of record as of ~~August~~May 20, ~~2021.~~2022.

In ~~August 2021,~~May 2022, Evergy Kansas Central's Board of Directors declared a cash dividend to Evergy of up to ~~$170.0~~$200.0 million, payable on ~~September~~June 17, ~~2021.~~2022.

~~In August 2021, Evergy Metro's Board of Directors declared a cash dividend to Evergy of up to $50.0 million, payable on September 17, 2021.~~Supplemental Cash Flow Information


Evergy
Three Months Ended March 31	2022		2021
Cash paid for (received from):	(millions)
Interest, net of amount capitalized	$	76.7	$	78.6
Interest of VIEs	—		0.2
Income taxes, net of refunds	(0.1)		2.6
Right-of-use assets obtained in exchange for new operating lease liabilities	1.6		2.2
Right-of-use assets obtained in exchange for new finance lease liabilities	2.4		0.2
Non-cash investing transactions:
Property, plant and equipment additions	122.6		104.4

Non-cash financing transactions:
Issuance of stock for compensation and reinvested dividends	0.2		0.7

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~~Supplemental Cash Flow Information~~


Evergy Kansas Central
Three Months Ended March 31	2022		2021
Cash paid for (received from):	(millions)
Interest, net of amount capitalized	$	32.1	$	31.2
Interest of VIEs	—		0.2
Income taxes, net of refunds	—		2.6
Right-of-use assets obtained in exchange for new operating lease liabilities	1.6		1.5
Right-of-use assets obtained in exchange for new finance lease liabilities	2.4		0.2
Non-cash investing transactions:
Property, plant and equipment additions	42.0		45.4

Evergy
Year to Date June 30 2021 2020
Cash paid for (received from): (millions)
Interest, net of amounts capitalized $ 179.9 $ 185.3
Interest of VIEs 0.2 0.6
Income taxes, net of refunds 0.4 0.2
Right-of-use assets obtained in exchange for new operating lease liabilities 2.4 3.8
Right-of-use assets obtained in exchange for new finance lease liabilities 0.6 3.5
Non-cash investing transactions:
Property, plant and equipment additions 149.1 113.2
Non-cash financing transactions:
Issuance of stock for compensation and reinvested dividends 0.7 0.9

Evergy Kansas Central
Year to Date June 30 2021 2020
Cash paid for (received from): (millions)
Interest, net of amounts capitalized $ 74.4 $ 82.7
Interest of VIEs 0.2 0.6
Income taxes, net of refunds 37.0 0.2
Right-of-use assets obtained in exchange for new operating lease liabilities 1.7 3.5
Right-of-use assets obtained in exchange for new finance lease liabilities 0.6 2.2
Non-cash investing transactions:
Property, plant and equipment additions 61.1 46.3


Evergy Metro	Evergy Metro					Evergy Metro
Year to Date June 30		2021		2020
Three Months Ended March 31						Three Months Ended March 31	2022		2021
Cash paid for (received from):	Cash paid for (received from):	(millions)				Cash paid for (received from):	(millions)
Interest, net of amounts capitalized		$	56.8	$	54.9
Interest, net of amount capitalized						Interest, net of amount capitalized	$	15.6	$	18.6
Income taxes, net of refunds	Income taxes, net of refunds	43.9		0		Income taxes, net of refunds	—		(1.6)
Right-of-use assets obtained in exchange for new operating lease liabilities	Right-of-use assets obtained in exchange for new operating lease liabilities	0.7		0.3		Right-of-use assets obtained in exchange for new operating lease liabilities	—		0.7
Right-of-use assets obtained in exchange for new finance lease liabilities		0		1.3

Non-cash investing transactions:	Non-cash investing transactions:					Non-cash investing transactions:
Property, plant and equipment additions	Property, plant and equipment additions	53.1		46.4		Property, plant and equipment additions	38.5		34.6

February 2021 Winter Weather Event

In February 2021, much of the central and southern United States, including the service territories of the Evergy Companies, experienced a significant winter weather event that resulted in extremely cold temperatures over a multi-day period (February 2021 winter weather event). The February 2021 winter weather event resulted in an increase in the demand for natural gas used by the Evergy Companies for generating electricity and also contributed to the limited availability of other generation resources, including coal and renewables, within the SPP Integrated Marketplace. The Evergy Companies are members of the SPP and, as a result, principally sell and purchase power for the Evergy Companies' retail electric customers through the SPP Integrated Marketplace. These circumstances resulted in higher than normal market prices within the SPP Integrated Marketplace for both natural gas and power for the duration of the February 2021 winter weather event. These higher than normal market prices also included make-whole payments calculated by the SPP to compensate natural gas generators within the SPP Integrated Marketplace for costs incurred in excess of revenues. As part of the February 2021 winter weather event and inclusive of the aforementioned items, Evergy incurred natural gas and purchased power costs, net of wholesale revenues, of ~~$349.5 million.~~$341.3 million for the three months ended March 31, 2021. This ~~$349.5~~$341.3 million of net fuel and purchased power costs incurred was primarily driven by $297.3 million of costs at Evergy Missouri West and $120.7 million of costs at Evergy Kansas Central, partially offset by $76.7 million of net wholesale revenues at Evergy Metro.

The amount of purchased power costs incurred and wholesale revenues recorded by the Evergy Companies in the first quarter of 2021 during the February 2021 winter weather event have been subject to subsequent resettlement activity by the SPP that has resulted in net increases to the total cost of the February 2021 winter weather event from the amounts initially recorded. As of March 31, 2022, Evergy has incurred total natural gas and purchased power costs, net of wholesale revenues, of $367.9 million related to the February 2021 winter weather event and inclusive of these subsequent SPP resettlements. This $367.9 million of net fuel and purchased power costs was primarily driven by ~~$292.7~~$296.6 million of costs at Evergy Missouri West and

~~Table of Contents~~

~~$128.2~~ $134.3 million of costs at Evergy Kansas Central, partially offset by ~~$71.4~~$63.0 million of net wholesale revenues at Evergy Metro. The amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event is subject to resettlement activity and further review by the SPP. This review and any subsequent resettlement activity could result in increases or decreases to the final amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event and these changes could be material.

The Evergy Companies have fuel recovery mechanisms in their Kansas and Missouri jurisdictions, as applicable, that allow them to defer substantially all of any increased fuel and purchased power costs, net of wholesale revenues, to a regulatory asset or liability for future recovery from or refund to customers. Further, in February 2021, the State Corporation Commission of the State of Kansas (KCC) issued an emergency Accounting Authority Order (AAO) that allowed Evergy Kansas Central and Evergy Metro's Kansas jurisdiction to defer to a regulatory asset any extraordinary costs, including carrying costs, incurred to provide electric service during the February 2021 winter weather event for consideration in future rate proceedings. Additionally, in June 2021, Evergy Metro and Evergy Missouri West filed a joint request for an AAO with the Public Service Commission of the State of Missouri (MPSC) that would allow for the extraordinary costs and revenues to provide service during the February 2021 winter weather event, including carrying costs, to be deferred to a regulatory asset or a regulatory liability for consideration in future proceedings. See Note 4 for additional information regarding the AAOs.

As of ~~June 30,~~March 31, 2022 and December 31, 2021, the Evergy Companies ~~have~~had deferred substantially all of the fuel and purchased power costs, net of wholesale revenues, related to the February 2021 winter weather event to a regulatory asset or liability pursuant to pending requests for recovery or refund through the respective fuel recovery mechanisms ~~discussed above. While the~~of Evergy ~~Companies expect to recover substantially all of any increased fuel~~Kansas Central and ~~purchased power costs related to the February 2021 winter weather event from customers, the timing of the cost recovery could be delayed or spread over~~Evergy Metro and through a ~~longer than typical recovery timeframe by the KCC or the MPSC to help moderate monthly customer bill impacts given the extraordinary nature of the February 2021 winter weather event.~~securitization request at Evergy Missouri West. See Note 4 for additional information regarding these regulatory proceedings.

The Evergy Companies also engage in limited non-regulated energy marketing activities in various regional power markets that have historically not had a significant impact on the Evergy Companies' results of operations. These energy marketing margins are recorded net in operating revenues on the Evergy Companies' statements of income and comprehensive income. As a result of the elevated market prices experienced in regional power markets across the central and southern United States driven by the February 2021 winter weather event discussed above, Evergy

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and Evergy Kansas Central recorded ~~$95.0~~$96.5 million of energy marketing margins infor the three months ended March 31, 2021 related to the February 2021 winter weather event, primarily driven by activities in the Electric Reliability Council of Texas (ERCOT). ~~The amount~~

Evergy Equity Investment

From time to time, Evergy makes limited equity investments in early-stage energy solution companies. These investments have historically not had a significant impact on Evergy's results of ~~energy marketing margins recorded as~~operations. In October 2021, an equity investment in which Evergy held a minority stake through an initial investment of $3.7 million was acquired through a transaction involving a special purpose acquisition company (SPAC). As a result of its equity investment in the ~~February 2021 winter weather event is~~company that was acquired in the SPAC transaction, Evergy received shares of the resulting public company upon the closing of the transaction, which were subject to ~~resettlement activities and/or legislative action~~a restriction on sale for 150 days. The equity investment had a fair value of $31.4 million as of December 31, 2021.

In March 2022, Evergy sold its shares in ~~Texas that could result in increases or decreases~~the equity investment to a financial institution through a share forward agreement following the expiration of the restriction on sale. As part of the share forward agreement, Evergy delivered its shares to the ~~final amount~~financial institution in exchange for a series of ~~energy marketing margins earned by Evergy and Evergy Kansas Central as a result~~future cash settlements based primarily on the volume-weighted average price (VWAP) of the ~~February 2021 winter weather event and these changes~~shares over the term of the agreement, which ends in June 2022 but could be ~~material.~~ended earlier at the option of the financial institution. The share forward agreement is included in other current assets on Evergy's consolidated balance sheets as of March 31, 2022, at its fair value of $14.5 million.

In the first quarter of 2022, Evergy recorded a pre-tax loss of $14.2 million in investment earnings (loss) on its consolidated statements of comprehensive income related to the decrease in market value of its equity investment prior to sale and the recording of the share forward agreement at fair value. Evergy also received cash settlements of $2.7 million under the share forward agreement in the first quarter of 2022.

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2. REVENUE

Evergy's, Evergy Kansas Central's and 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
2021 2020 2021 2020
Revenues (millions)
Residential $ 459.8 $ 476.7 $ 856.5 $ 879.2
Commercial 422.5 388.7 768.5 773.4
Industrial 150.0 139.3 283.6 279.9
Other retail 9.5 9.1 16.9 19.7
Total electric retail $ 1,041.8 $ 1,013.8 $ 1,925.5 $ 1,952.2
Wholesale 70.0 47.3 557.5 110.8
Transmission 90.4 82.2 176.4 157.8
Industrial steam and other 5.9 2.8 11.1 11.2
Total revenue from contracts with customers $ 1,208.1 $ 1,146.1 $ 2,670.5 $ 2,232.0
Other 28.1 38.6 177.6 69.4
Operating revenues $ 1,236.2 $ 1,184.7 $ 2,848.1 $ 2,301.4


Evergy Kansas Central
		Three Months Ended June 30				Year to Date June 30
		2021		2020		2021		2020
Three Months Ended March 31, 2022										Three Months Ended March 31, 2022	Evergy			Evergy Kansas Central			Evergy Metro
Revenues	Revenues	(millions)								Revenues		(millions)
Residential	Residential	$	191.6	$	196.8	$	375.0	$	364.6	Residential		$	451.8		$	196.1		$	159.9
Commercial	Commercial	165.1		154.7		318.8		305.8		Commercial		403.1			165.2			173.6
Industrial	Industrial	95.0		86.8		188.0		178.9		Industrial		150.3			100.8			28.8
Other retail	Other retail	5.2		4.2		8.4		8.9		Other retail		9.0			4.1			2.6
Total electric retail	Total electric retail	$	456.9	$	442.5	$	890.2	$	858.2	Total electric retail		$	1,014.2		$	466.2		$	364.9
Wholesale	Wholesale	53.5		44.6		325.9		99.4		Wholesale		51.9			50.1			7.7
Transmission	Transmission	81.7		74.1		159.6		142.3		Transmission		98.0			87.5			5.4
Industrial steam and other	Industrial steam and other	0.6		(2.3)		1.1		1.2		Industrial steam and other		3.3			0.6			(1.8)
Total revenue from contracts with customers	Total revenue from contracts with customers	$	592.7	$	558.9	$	1,376.8	$	1,101.1	Total revenue from contracts with customers		$	1,167.4		$	604.4		$	376.2
Other	Other	5.8		11.9		122.8		29.8		Other		56.5			9.5			46.3
Operating revenues	Operating revenues	$	598.5	$	570.8	$	1,499.6	$	1,130.9	Operating revenues		$	1,223.9		$	613.9		$	422.5

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Evergy Metro
		Three Months Ended June 30				Year to Date June 30
		2021		2020		2021		2020
Three Months Ended March 31, 2021										Three Months Ended March 31, 2021	Evergy			Evergy Kansas Central			Evergy Metro
Revenues	Revenues	(millions)								Revenues		(millions)
Residential	Residential	$	173.9	$	183.6	$	296.1	$	331.0	Residential		$	396.7		$	183.4		$	122.2
Commercial	Commercial	188.1		172.7		320.6		344.8		Commercial		346.0			153.7			132.5
Industrial	Industrial	33.7		32.9		56.0		63.0		Industrial		133.6			93.0			22.3
Other retail	Other retail	2.8		2.7		4.9		6.2		Other retail		7.4			3.2			2.1
Total electric retail	Total electric retail	$	398.5	$	391.9	$	677.6	$	745.0	Total electric retail		$	883.7		$	433.3		$	279.1
Wholesale	Wholesale	12.8		0.2		213.3		7.0		Wholesale		487.5			272.4			200.5
Transmission	Transmission	4.5		3.8		8.5		6.9		Transmission		86.0			77.9			4.0
Industrial steam and other	Industrial steam and other	1.1		1.5		1.4		1.9		Industrial steam and other		5.2			0.5			0.3
Total revenue from contracts with customers	Total revenue from contracts with customers	$	416.9	$	397.4	$	900.8	$	760.8	Total revenue from contracts with customers		$	1,462.4		$	784.1		$	483.9
Other	Other	21.8		26.9		54.1		39.0		Other		149.5			117.0			32.3
Operating revenues	Operating revenues	$	438.7	$	424.3	$	954.9	$	799.8	Operating revenues		$	1,611.9		$	901.1		$	516.2

3. RECEIVABLES

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


		June 30		December 31			March 31		December 31
		2021		2020			2022		2021
Evergy	Evergy	(millions)				Evergy	(millions)
Customer accounts receivable - billed	Customer accounts receivable - billed	$	20.9	$	5.3	Customer accounts receivable - billed	$	14.5	$	13.7
Customer accounts receivable - unbilled	Customer accounts receivable - unbilled	172.6		110.0		Customer accounts receivable - unbilled	59.1		80.1
Other receivables	Other receivables	224.9		177.9		Other receivables	136.0		160.7
Allowance for credit losses	Allowance for credit losses	(20.0)		(19.3)		Allowance for credit losses	(24.4)		(32.9)
Total	Total	$	398.4	$	273.9	Total	$	185.2	$	221.6
Evergy Kansas Central	Evergy Kansas Central					Evergy Kansas Central
Customer accounts receivable - billed	Customer accounts receivable - billed	$	11.3	$	0	Customer accounts receivable - billed	$	8.6	$	9.7
Customer accounts receivable - unbilled	Customer accounts receivable - unbilled	58.4		50.7		Customer accounts receivable - unbilled	21.4		26.4
Other receivables	Other receivables	230.6		175.7		Other receivables	159.0		178.5
Allowance for credit losses	Allowance for credit losses	(7.6)		(7.5)		Allowance for credit losses	(10.1)		(13.0)
Total	Total	$	292.7	$	218.9	Total	$	178.9	$	201.6
Evergy Metro	Evergy Metro					Evergy Metro
Customer accounts receivable - billed	Customer accounts receivable - billed	$	6.2	$	3.3	Customer accounts receivable - billed	$	3.4	$	2.7
Customer accounts receivable - unbilled	Customer accounts receivable - unbilled	69.5		27.9		Customer accounts receivable - unbilled	9.2		25.9
Other receivables	Other receivables	22.7		21.9		Other receivables	16.1		15.7
Allowance for credit losses	Allowance for credit losses	(8.7)		(8.1)		Allowance for credit losses	(9.5)		(13.3)
Total	Total	$	89.7	$	45.0	Total	$	19.2	$	31.0

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The Evergy Companies' other receivables at ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, consisted primarily of receivables from partners in jointly-owned electric utility plants, wholesale sales receivables and receivables related to alternative revenue programs. The Evergy Companies' other receivables also included receivables from contracts with customers as summarized in the following table.


		June 30		December 31				March 31		December 31
		2021		2020		2022		2021
		(millions)						(millions)
Evergy	Evergy	$	90.2	$	57.5		Evergy	$	45.8	$	63.7
Evergy Kansas Central	Evergy Kansas Central	82.2		49.9			Evergy Kansas Central	43.7		62.6
Evergy Metro	Evergy Metro	6.9		6.9			Evergy Metro	1.1		0.5

The change in the Evergy Companies' allowance for credit losses is summarized in the following table.


		2021		2020			2022		2021
Evergy	Evergy	(millions)				Evergy	(millions)
Beginning balance January 1	Beginning balance January 1	$	19.3	$	10.5	Beginning balance January 1	$	32.9	$	19.3
Credit loss expense		2.4		11.6
Credit loss expense (income)						Credit loss expense (income)	(4.1)		4.8
Write-offs	Write-offs	(8.2)		(10.9)		Write-offs	(7.9)		(4.0)
Recoveries of prior write-offs	Recoveries of prior write-offs	6.5		6.8		Recoveries of prior write-offs	3.5		3.5
Ending balance June 30		$	20.0	$	18.0
Ending balance March 31						Ending balance March 31	$	24.4	$	23.6
Evergy Kansas Central	Evergy Kansas Central					Evergy Kansas Central
Beginning balance January 1	Beginning balance January 1	$	7.5	$	3.8	Beginning balance January 1	$	13.0	$	7.5
Credit loss expense		0.4		2.9
Credit loss expense (income)						Credit loss expense (income)	(0.6)		0.6
Write-offs	Write-offs	(2.7)		(3.3)		Write-offs	(3.6)		(0.5)
Recoveries of prior write-offs	Recoveries of prior write-offs	2.4		1.5		Recoveries of prior write-offs	1.3		1.2
Ending balance June 30		$	7.6	$	4.9
Ending balance March 31						Ending balance March 31	$	10.1	$	8.8
Evergy Metro	Evergy Metro					Evergy Metro
Beginning balance January 1	Beginning balance January 1	$	8.1	$	4.6	Beginning balance January 1	$	13.3	$	8.1
Credit loss expense		1.3		5.7
Credit loss expense (income)						Credit loss expense (income)	(2.4)		2.5
Write-offs	Write-offs	(3.7)		(5.0)		Write-offs	(2.9)		(2.3)
Recoveries of prior write-offs	Recoveries of prior write-offs	3.0		3.7		Recoveries of prior write-offs	1.5		1.6
Ending balance June 30		$	8.7	$	9.0
Ending balance March 31						Ending balance March 31	$	9.5	$	9.9

Sale of Accounts Receivable

Evergy Kansas Central, Evergy Metro and Evergy Missouri West sell an undivided percentage ownership interest in their retail electric accounts receivable to independent outside investors. These sales are accounted for as secured borrowings with accounts receivable pledged as collateral and a corresponding short-term collateralized note payable recognized on the balance sheets. The Evergy Companies' accounts receivable pledged as collateral and the corresponding short-term collateralized note payable are summarized in the following table.


		June 30		December 31				March 31		December 31
		2021		2020		2022		2021
		(millions)						(millions)
Evergy	Evergy	$	326.0	$	360.0		Evergy	$	338.0	$	319.0
Evergy Kansas Central	Evergy Kansas Central	156.0		180.0			Evergy Kansas Central	165.0		153.0
Evergy Metro	Evergy Metro	118.0		130.0			Evergy Metro	123.0		116.0

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 then $200.0 million

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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. 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.

4. RATE MATTERS AND REGULATION

KCC Proceedings

Evergy Kansas Central ~~2021~~2022 Transmission Delivery Charge (TDC)

In ~~April 2021,~~March 2022, the KCC issued an order adjusting 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 April ~~2021~~2022 and are expected to increase Evergy Kansas Central's annual retail revenues by ~~$37.9~~$20.4 million when compared to ~~2020.~~2021.

Evergy Metro ~~2021~~2022 TDC

In April ~~2021,~~2022, the KCC issued an order adjusting Evergy Metro's retail prices to include updated transmission costs as reflected in the FERC TFR. The new prices were effective in May ~~2021~~2022 and are expected to ~~decrease~~increase Evergy Metro's annual retail revenues by ~~$2.4~~$7.9 million when compared to ~~2020.~~2021.

Evergy Kansas Central and Evergy Metro Earnings Review and Sharing Plan (ERSP)

As part of their merger settlement agreement with the KCC, Evergy Kansas Central and Evergy Metro agreed to participate in an ERSP for the years 2019 through 2022. Under the ERSP, Evergy Kansas Central's and Evergy Metro's Kansas jurisdiction are required to refund to customers 50% of annual earnings in excess of their authorized return on equity of 9.3% to the extent the excess earnings exceed the amount of annual bill credits that Evergy Kansas Central and Evergy Metro agreed to provide in connection with the merger that resulted in the formation of Evergy.

Evergy Kansas Central's and Evergy Metro's ~~2020~~2021 calculations of annual earnings did not result in a ~~significant~~ refund obligation. These calculations were filed with the KCC in March ~~2021.~~2022. As of ~~June 30, 2021,~~March 31, 2022, Evergy Kansas Central and Evergy Metro estimate their ~~2021~~2022 annual earnings will not result in a significant refund obligation. The final refund obligations for ~~2020~~2021 and ~~2021~~2022 will be decided by the KCC and could vary from the current estimates.

Evergy Kansas Central and Evergy Metro February 2021 Winter Weather Event AAO

In February 2021, the KCC issued an emergency ~~AAO~~accounting authority order (AAO) directing all Kansas-jurisdictional natural gas and electric utilities, including Evergy Kansas Central and Evergy Metro, to defer to a regulatory asset or regulatory liability any extraordinary costs or revenues, including carrying costs, to provide electric service during the February 2021 winter weather event for consideration in future rate proceedings.

As of ~~June 30,~~March 31, 2022 and December 31, 2021, Evergy Kansas Central had recognized a regulatory asset pursuant to the AAO of ~~$114.6~~$122.7 million and $121.5 million, respectively, related to its costs incurred during the February 2021 winter weather event, primarily consisting of increased fuel, ~~and~~ purchased power, and associated carrying costs. As of ~~June 30,~~March 31, 2022 and December 31, 2021, Evergy Metro's Kansas jurisdiction had recognized a regulatory liability of ~~$42.0~~$38.1 million and $39.5 million, respectively, related to its increased wholesale revenues during the February 2021 winter weather ~~event.~~event and associated carrying costs.

In July 2021, Evergy Kansas Central and Evergy Metro made a joint filing with the KCC regarding the timing and method of recovery or refund for costs and revenues deferred pursuant to the February 2021 winter weather event AAO. In the filing, Evergy Kansas Central and Evergy Metro requested to recover or refund, as appropriate, their deferred February 2021 winter weather event amounts to customers through their fuel recovery mechanisms over two years and one year, respectively, beginning in April ~~2022.~~2023. As part of the filing, Evergy Metro also requested ~~an approximately $6 million~~a decrease to its February 2021 winter weather event refund to Kansas customers, ~~which is~~ not currently reflected in its regulatory liability for the February 2021 winter weather event, for jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms. ~~A decision by the KCC regarding Evergy Kansas Central's and Evergy Metro's request is expected by the end of 2021.~~

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~~MPSC~~In April 2022, Evergy Kansas Central, Evergy Metro, KCC staff and other intervenors filed a non-unanimous stipulation and agreement with the KCC that resolved all issues regarding the timing and method of recovery for costs and revenues deferred pursuant to the February 2021 winter weather event AAO. As part of the non-unanimous stipulation and agreement, Evergy Kansas Central and Evergy Metro agreed to recover or refund, as appropriate, their deferred February 2021 winter weather amounts to customers through their fuel recovery mechanisms over two years and one year, respectively, beginning in April 2023, and to use the rate of 1.00% to apply carrying charges to these deferred amounts. The non-unanimous stipulation and agreement also permitted Evergy Metro to request the future recovery in its next Kansas rate case of an approximately $5 million under-recovery related to its February 2021 winter weather event refund to Kansas customers for jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms.

An order from the KCC on the non-unanimous stipulation and agreement is expected in the second quarter of 2022.

Missouri Public Service Commission (MPSC) Proceedings

Evergy Metro 2022 Rate Case Proceeding

In January 2022, Evergy Metro filed an application with the MPSC to request an increase to its retail revenues of $43.9 million before rebasing fuel and purchased power expense, with a return on equity of 10% and a rate-making equity ratio of 51.19%. The request reflects increases related to higher property taxes and the recovery of infrastructure investments made to improve reliability and enhance customer service and were also partially offset by significant customer savings and cost reductions created since the Great Plains Energy and Evergy Kansas Central merger in 2018. Evergy Metro also requested an additional $3.8 million increase associated with rebasing fuel and purchased power expense as well as the implementation of tracking mechanisms for both property tax expense and credit loss expense and the creation of a storm reserve as part of its application with the MPSC.

An evidentiary hearing in the case is scheduled to occur beginning in late August 2022 and new rates are expected to be effective in December 2022.

Evergy Missouri West 2022 Rate Case Proceeding

In January 2022, Evergy Missouri West filed an application with the MPSC to request an increase to its retail revenues of $27.7 million before rebasing fuel and purchased power expense, with a return on equity of 10% and a rate-making equity ratio of 51.81%. The request reflects increases related to higher property taxes and the recovery of infrastructure investments made to improve reliability and enhance customer service and were also partially offset by significant customer savings and cost reductions created since the Great Plains Energy and Evergy Kansas Central merger in 2018. Evergy Missouri West also requested an additional $32.1 million increase associated with rebasing fuel and purchased power expense, the implementation of tracking mechanisms for both property tax expense and credit loss expense, the creation of a storm reserve, and the full return of and return on its unrecovered investment related to the 2018 retirement of Sibley Station as part of its application with the MPSC.

An evidentiary hearing in the case is scheduled to occur beginning in late August 2022 and new rates are expected to be effective in December 2022.

Evergy Missouri West Other Proceedings

In December 2018, the Office of the Public Counsel (OPC) and the Midwest Energy Consumers Group (MECG) filed a petition with the MPSC requesting an AAO that would require Evergy Missouri West to record a regulatory liability for all revenues collected from customers for return on investment, non-fuel operations and maintenance costs, taxes including accumulated deferred income taxes, and all other costs associated with Sibley Station following the station’s retirement in November 2018.

In October 2019, the MPSC granted OPC's and MECG's request for an AAO and required Evergy Missouri West to record to a regulatory liability for the revenues discussed above for consideration in Evergy Missouri West's ~~next~~current rate ~~case, which is expected to be completed no later than the end of 2022.~~case. Depending on the MPSC's decision in ~~this next~~the current rate case, Evergy Missouri West could be required to refund to customers all or a portion of amounts collected in revenue for Sibley Station since December 2018 or, alternatively, could be required to make no refunds. As part of its current rate case, Evergy Missouri West is proposing to refund to customers the revenues collected from customers for non-fuel operations and maintenance

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costs and other costs associated with Sibley Station following the station's retirement but not the related return on investment.

As a result of the MPSC order, Evergy has recorded a regulatory liability of ~~$23.8~~$32.0 million and $29.3 million as of ~~June 30,~~March 31, 2022 and December 31, 2021, respectively, for the estimated amount of revenues that Evergy Missouri West has collected from customers for Sibley Station since December 2018 that Evergy has determined is probable of refund. Evergy expects that it will continue to defer such amounts as collected from customers until new rates become effective in Evergy Missouri West's ~~next~~current rate case.

The accrual for this estimated amount does not include certain revenues collected related to Sibley Station that Evergy has determined to not be probable of refund in the ~~next~~current rate case based on the relevant facts and circumstances. Although Evergy has determined these additional revenues to not be probable of refund, the ultimate resolution of this matter in Evergy Missouri West's ~~next~~current rate case is uncertain and could result in an estimated loss of ~~up to~~ approximately ~~$12~~$50 million ~~per year in excess of the amount accrued until Evergy Missouri West's~~when new rates are expected to become ~~effective.~~effective in December 2022. Evergy's regulatory liability for probable refunds as of ~~June 30, 2021~~March 31, 2022 and estimated loss in excess of the amount accrued represent estimates that could change significantly based on ongoing developments including decisions in other regulatory proceedings that establish precedent applicable to this matter and positions of parties on this issue in ~~a future~~ Evergy Missouri ~~West~~West's 2022 rate case.

Evergy Metro and Evergy Missouri West February 2021 Winter Weather Event AAO

In June 2021, Evergy Metro and Evergy Missouri West filed a joint request for an AAO with the MPSC that would allow Evergy Metro and Evergy Missouri West to defer to a regulatory asset or regulatory liability any extraordinary costs or revenues, including carrying costs, to provide electric service during the February 2021 winter weather event for consideration in future proceedings.

Evergy Metro and Evergy Missouri West have currently deferred substantially all of their fuel and purchased power costs, net of wholesale revenues, related to the February 2021 winter weather event to a regulatory asset or liability pursuant to their ability to recover or refund these amounts through their fuel recovery mechanisms, which allow for the recovery or refund of 95% of increases in fuel and purchased power costs, net of wholesale revenues, above the amount included in base rates to customers. This AAO request is intended to address the recovery or refund of the February 2021 winter weather event amounts separate from the normal fuel recovery mechanism process given the extraordinary nature of the February 2021 winter weather event and to help moderate customer bill impacts. As of ~~June 30,~~March 31, 2022 and December 31, 2021, Evergy Metro's Missouri jurisdiction had recognized a regulatory liability of ~~$27.8~~$25.4 million and $25.6 million, respectively, related to its increased wholesale revenues during the February 2021 winter weather event. As of ~~June 30,~~March 31, 2022 and December 31, 2021, Evergy Missouri West had recognized a regulatory asset of ~~$278.1~~$281.8 million and $281.6 million, respectively, related to its costs incurred during the February 2021 winter weather event, primarily consisting of increased fuel and purchased power costs.

In the AAO filing, Evergy Metro requested to refund its deferred February 2021 winter weather event amounts to customers through its fuel recovery mechanism over one year, beginning in April 2022. In the same AAO filing, Evergy Missouri West requested to exclude its deferred February 2021 winter weather event amounts from recovery through its fuel recovery mechanism and indicated its intent to recover them through issuing securitized bonds pursuant to the securitization legislation signed into law in Missouri in July 2021. As part of the filing, Evergy Metro also requested an approximately $5 million decrease to its February 2021 winter weather refund to Missouri customers, which is not currently reflected in its regulatory liability for the February 2021 winter weather event, for

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jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms and for the portion of net wholesale revenues not traditionally refundable because of the 5% sharing provision of its fuel recovery mechanism. Evergy Missouri West requested an approximately $15 million increase to its February 2021 winter weather event recovery from Missouri customers, which is not currently reflected in its regulatory asset for the February 2021 winter weather event, for the portion of net fuel and purchased power costs not traditionally recoverable because of the 5% sharing provision of its fuel recovery mechanism. ~~A decision~~

In March 2022, the MPSC ordered Evergy Metro in a separate regulatory proceeding to file an adjustment to its fuel recovery mechanism in order to allow its wholesale revenues from the February 2021 winter weather event to be

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refunded to customers beginning in April 2022. The approximately $5 million decrease to the refund of February 2021 winter weather amounts requested by Evergy Metro due to jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms was not included in the adjustment and will be addressed in Evergy Metro's current rate case.

In April 2022, the MPSC staff filed a motion to suspend the February 2021 winter weather event AAO procedural schedule for Evergy Metro and Evergy Missouri West pending the resolution of Evergy Missouri West's petition for a securitization financing order discussed below. The MPSC granted the motion to suspend the AAO procedural schedule in April 2022.

Evergy Missouri West February 2021 Winter Weather Event Securitization

In March 2022, Evergy Missouri West filed a petition for financing order with the MPSC requesting authorization to finance its extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather event, including carrying costs, through the issuance of securitized bonds. Evergy Missouri West has requested to repay the securitized bonds and collect the related amounts from customers over a period of approximately 15 years from the date of issuance of the securitized bonds. An order from the MPSC regarding Evergy ~~Metro's and Evergy~~ Missouri West's ~~AAO request~~petition is expected ~~by the end of 2021.~~no later than October 2022.

FERC Proceedings

In October of each year, Evergy Kansas Central and Evergy Metro post an updated TFR that includes projected transmission capital expenditures and operating costs for the following year. This rate is the most significant component in the retail rate calculation for Evergy Kansas Central's and Evergy Metro's annual request with the KCC to adjust retail prices to include updated transmission costs through the TDC.

Evergy Kansas Central TFR

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

•$33.2 million increase effective in January 2022; and

•$32.4 million increase effective in January ~~2021; and~~

•~~$6.8 million increase effective in January 2020.~~2021.

Evergy Metro TFR

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

•$18.1 million increase effective in January 2022; and

•$3.9 million decrease effective in January ~~2021; and~~

•~~$1.7 million decrease effective in January 2020.~~2021.

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 Incorporated (Great Plains Energy) and Evergy Kansas Central merger was conducted as of May 1, 2021. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. Evergy's consolidated operations are considered 1 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.

~~Table of Contents~~

6. PENSION PLANS AND POST-RETIREMENT BENEFITS

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

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

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

The Evergy Companies record pension and post-retirement expense in accordance with rate orders from the KCC and MPSC that allow the difference between pension and post-retirement costs under GAAP and costs for ratemaking to be recognized as a regulatory asset or liability. This difference between financial and regulatory accounting methods is due to timing and will be eliminated over the life of the plans.

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, 2021 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Components of net periodic benefit costs (millions)
Service cost $ 21.2 $ 7.5 $ 13.7 $ 0.9 $ 0.4 $ 0.5
Interest cost 21.3 10.4 10.8 1.9 1.0 0.9
Expected return on plan assets (26.8) (13.5) (14.4) (2.2) (1.5) (0.6)
Prior service cost 0.5 0.5 0 0.2 0.1 (0.2)
Recognized net actuarial (gain)/loss 14.7 9.5 11.1 0.3 0.1 (0.1)
Net periodic benefit costs before regulatory adjustment and intercompany allocations 30.9 14.4 21.2 1.1 0.1 0.5
Regulatory adjustment 6.6 0.1 1.6 (1.3) (0.8) 0
Intercompany allocations 0 0.8 (6.3) 0 0 (0.1)
Net periodic benefit costs (income) $ 37.5 $ 15.3 $ 16.5 $ (0.2) $ (0.7) $ 0.4

~~Table of Contents~~


		Pension Benefits						Post-Retirement Benefits							Pension Benefits						Post-Retirement Benefits
Year to Date June 30, 2021		Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Three Months Ended March 31, 2022														Three Months Ended March 31, 2022	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	Components of net periodic benefit costs	(millions)												Components of net periodic benefit costs	(millions)
Service cost	Service cost	$	42.3	$	14.9	$	27.4	$	1.7	$	0.8	$	0.9	Service cost	$	19.9	$	7.7	$	12.2	$	0.8	$	0.4	$	0.4
Interest cost	Interest cost	42.6		20.7		21.6		3.9		2.0		1.9		Interest cost	19.8		9.7		9.9		2.0		1.0		1.0
Expected return on plan assets	Expected return on plan assets	(53.6)		(27.1)		(28.9)		(4.4)		(3.1)		(1.3)		Expected return on plan assets	(26.0)		(12.8)		(14.1)		(2.5)		(1.6)		(0.9)
Prior service cost	Prior service cost	1.0		1.0		0		0.3		0.2		(0.5)		Prior service cost	0.5		0.5		—		0.1		0.1		(0.4)
Recognized net actuarial (gain)/loss	Recognized net actuarial (gain)/loss	29.5		19.3		22.3		0.6		0.3		(0.1)		Recognized net actuarial (gain)/loss	8.7		6.4		9.7		(0.1)		(0.1)		(0.2)

Net periodic benefit costs before regulatory adjustment and intercompany allocations	Net periodic benefit costs before regulatory adjustment and intercompany allocations	61.8		28.8		42.4		2.1		0.2		0.9		Net periodic benefit costs before regulatory adjustment and intercompany allocations	22.9		11.5		17.7		0.3		(0.2)		(0.1)
Regulatory adjustment	Regulatory adjustment	13.7		(0.8)		4.6		(2.5)		(1.6)		0.1		Regulatory adjustment	15.9		2.9		6.5		(0.6)		(0.7)		0.6
Intercompany allocations	Intercompany allocations	0		1.2		(12.2)		0		0		(0.2)		Intercompany allocations	—		0.5		(4.5)		—		0.1		(0.1)
Net periodic benefit costs (income)	Net periodic benefit costs (income)	$	75.5	$	29.2	$	34.8	$	(0.4)	$	(1.4)	$	0.8	Net periodic benefit costs (income)	$	38.8	$	14.9	$	19.7	$	(0.3)	$	(0.8)	$	0.4

Pension Benefits Post-Retirement Benefits
Three Months Ended June 30, 2020 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Components of net periodic benefit costs (millions)
Service cost $ 19.5 $ 6.8 $ 12.7 $ 0.7 $ 0.3 $ 0.4
Interest cost 24.5 11.7 12.4 2.3 1.2 1.1
Expected return on plan assets (26.7) (13.3) (13.9) (2.3) (1.6) (0.6)
Prior service cost 0.5 0.4 0.2 0.1 0.1 0
Recognized net actuarial (gain)/loss 11.3 8.5 11.3 0 0 (0.2)
Net periodic benefit costs before regulatory adjustment and intercompany allocations 29.1 14.1 22.7 0.8 0 0.7
Regulatory adjustment 9.1 0.3 0.7 (1.0) (0.7) (0.1)
Intercompany allocations 0 (1.7) (5.0) 0 0 (0.2)
Net periodic benefit costs (income) $ 38.2 $ 12.7 $ 18.4 $ (0.2) $ (0.7) $ 0.4


		Pension Benefits						Post-Retirement Benefits							Pension Benefits						Post-Retirement Benefits
Year to Date June 30, 2020		Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Three Months Ended March 31, 2021														Three Months Ended March 31, 2021	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	Components of net periodic benefit costs	(millions)												Components of net periodic benefit costs	(millions)
Service cost	Service cost	$	39.1	$	13.6	$	25.5	$	1.4	$	0.6	$	0.8	Service cost	$	21.1	$	7.4	$	13.7	$	0.8	$	0.4	$	0.4
Interest cost	Interest cost	48.9		23.5		25.0		4.6		2.4		2.2		Interest cost	21.3		10.3		10.8		2.0		1.0		1.0
Expected return on plan assets	Expected return on plan assets	(53.4)		(26.6)		(28.0)		(4.6)		(3.3)		(1.3)		Expected return on plan assets	(26.8)		(13.6)		(14.5)		(2.2)		(1.6)		(0.7)
Prior service cost	Prior service cost	0.9		0.8		0.4		0.2		0.2		0		Prior service cost	0.5		0.5		—		0.1		0.1		(0.3)
Recognized net actuarial (gain)/loss		22.7		16.9		22.6		0.1		0		(0.3)
Recognized net actuarial loss														Recognized net actuarial loss	14.8		9.8		11.2		0.3		0.2		—

Net periodic benefit costs before regulatory adjustment and intercompany allocations	Net periodic benefit costs before regulatory adjustment and intercompany allocations	58.2		28.2		45.5		1.7		(0.1)		1.4		Net periodic benefit costs before regulatory adjustment and intercompany allocations	30.9		14.4		21.2		1.0		0.1		0.4
Regulatory adjustment	Regulatory adjustment	19.0		0.7		2.1		(1.9)		(1.4)		(0.1)		Regulatory adjustment	7.1		(0.9)		3.0		(1.2)		(0.8)		0.1
Intercompany allocations	Intercompany allocations	0		(1.7)		(11.2)		0		0		0		Intercompany allocations	—		0.4		(5.9)		—		—		(0.1)
Net periodic benefit costs (income)	Net periodic benefit costs (income)	$	77.2	$	27.2	$	36.4	$	(0.2)	$	(1.5)	$	1.3	Net periodic benefit costs (income)	$	38.0	$	13.9	$	18.3	$	(0.2)	$	(0.7)	$	0.4

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.

~~Table of Contents~~

~~Year to date June 30, 2021,~~For the three months ended March 31, 2022, Evergy, Evergy Kansas Central and Evergy Metro made pension contributions of ~~$41.7~~$10.0 million, ~~$26.2~~$5.9 million and ~~$15.5~~$4.1 million, respectively. Evergy expects to make additional pension contributions of ~~$68.2~~$88.8 million in ~~2021~~2022 to satisfy the Employee Retirement Income Security Act of 1974, as amended (ERISA) funding requirements and KCC and MPSC rate orders, of which ~~$11.1~~$20.3 million is expected to be paid by Evergy Kansas Central and ~~$57.1~~$68.5 million is expected to be paid by Evergy Metro.

~~Year to date June 30, 2021, Evergy, Evergy Kansas Central and Evergy Metro made post-retirement benefit contributions~~

Table of ~~$1.1 million, $0.5 million and $0.6 million, respectively.~~Contents

Also in 2022, Evergy, Evergy Kansas Central and Evergy Metro expect to make ~~additional~~post-retirement benefit contributions ~~in 2021~~ of ~~$3.8~~$2.2 million, $0.5 million and ~~$3.3~~$1.7 million, ~~respectively, to the post-retirement benefit plans.~~respectively.

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

Evergy's $2.5 billion master credit facility expires in ~~2023.~~2026. Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West have borrowing capacity under the master credit facility with specific sublimits for each borrower. These sublimits can be unilaterally adjusted by Evergy for each borrower provided the sublimits remain within minimum and maximum sublimits as specified in the facility. The applicable interest rates and commitment fees of the facility are subject to upward or downward adjustments, within certain limitations, if Evergy ~~adjusted these sublimits~~achieves, or fails to achieve, certain sustainability-linked targets based on two key performance indicator metrics: (i) Non-Emitting Generation Capacity and (ii) Diverse Supplier Spend (as defined in the ~~first quarter of 2021 as further detailed in the table below.~~ facility).

A default by any borrower under the facility or one of its significant subsidiaries on other indebtedness totaling more than $100.0 million constitutes a default by that borrower under the facility. Under the terms of this facility, each of Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West is required to maintain a total indebtedness to total capitalization ratio, as defined in the facility, of not greater than 0.65 to 1.00 at all times. As of ~~June 30, 2021,~~March 31, 2022, Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West were in compliance with this covenant.

The following table summarizes the committed credit facilities (excluding receivable sale facilities discussed in Note 3) available to the Evergy Companies as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020.~~2021.


				Amounts Drawn												Amounts Drawn
		Master Credit Facility		Commercial Paper		Letters of Credit		Cash Borrowings		Available Borrowings		Weighted Average Interest Rate on Short-Term Borrowings		Master Credit Facility		Commercial Paper		Letters of Credit		Cash Borrowings		Available Borrowings		Weighted Average Interest Rate on Short-Term Borrowings
June 30, 2021		(millions)
March 31, 2022													March 31, 2022	(millions)
Evergy, Inc.	Evergy, Inc.	$	700.0	$	371.0	$	0.7	$	0	$	328.3	0.23%	Evergy, Inc.	$	700.0	$	187.0	$	0.7	$	—	$	512.3	0.94%
Evergy Kansas Central	Evergy Kansas Central	750.0		294.0		0.1		0		455.9		0.19%	Evergy Kansas Central	750.0		461.2		0.1		—		288.7		0.99%
Evergy Metro	Evergy Metro	350.0		0		0		0		350.0		0%	Evergy Metro	350.0		—		—		—		350.0		—%
Evergy Missouri West	Evergy Missouri West	700.0		248.0		0		0		452.0		0.19%	Evergy Missouri West	700.0		244.0		—		—		456.0		0.67%
Evergy	Evergy	$	2,500.0	$	913.0	$	0.8	$	0	$	1,586.2		Evergy	$	2,500.0	$	892.2	$	0.8	$	—	$	1,607.0

December 31, 2020
December 31, 2021													December 31, 2021
Evergy, Inc.	Evergy, Inc.	$	450.0	n/a		$	0.7	$	200.0	$	249.3	1.40%	Evergy, Inc.	$	700.0	$	358.0	$	0.7	$	—	$	341.3	0.34%
Evergy Kansas Central	Evergy Kansas Central	1,000.0		50.0		17.0		0		933.0		0.23%	Evergy Kansas Central	750.0		406.0		0.1		—		343.9		0.41%
Evergy Metro	Evergy Metro	600.0		0		0		0		600.0		0%	Evergy Metro	350.0		—		—		—		350.0		—%
Evergy Missouri West	Evergy Missouri West	450.0		65.0		2.0		0		383.0		0.36%	Evergy Missouri West	700.0		395.3		—		—		304.7		0.40%
Evergy	Evergy	$	2,500.0	$	115.0	$	19.7	$	200.0	$	2,165.3		Evergy	$	2,500.0	$	1,159.3	$	0.8	$	—	$	1,339.9

In ~~May 2021,~~February 2022, Evergy, Inc. ~~established~~entered into a ~~commercial paper program supported by its borrowing capacity~~$500.0 million unsecured Term Loan Credit Agreement (Term Loan Facility) that expires in February 2023. As of March 31, 2022, Evergy had borrowed $500.0 million under the ~~master credit facility.~~Term Loan Facility. The weighted average interest rate for borrowings under the Term Loan Facility as of March 31, 2022, was 1.13%. Evergy's borrowings under the Term Loan Facility were used for, among other things, working capital, capital expenditures and general corporate purposes. The Term Loan Facility contains customary covenants, including one that sets the ratio of maximum allowed total indebtedness to total capitalization of not greater than 0.65 to 1.00, for Evergy and its subsidiaries on a consolidated basis. As of March 31, 2022, Evergy was in compliance with this covenant.

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8.7. LONG-TERM DEBT

Mortgage Bonds

In March 2022, Evergy Missouri West entered into a First Mortgage Indenture and Deed of Trust, dated as of March 1, 2022 (Evergy Missouri West Mortgage Indenture), establishing a first mortgage lien on substantially all of its present properties and certain after-acquired properties, subject to certain exceptions. In connection with the establishment of the Evergy Missouri West Mortgage Indenture, Evergy Missouri West issued collateral mortgage bonds secured by the Evergy Missouri West Mortgage Indenture to serve as collateral for Evergy Missouri West's obligations under the following outstanding unsecured senior notes:

•$36.0 million of 3.49% Series A, maturing in 2025;

•$60.0 million of 4.06% Series B, maturing in 2033;

•$150.0 million of 4.74% Series C, maturing in 2043;

•$350.0 million of 2.86% Series A, maturing in 2031;

•$75.0 million of 3.01% Series B, maturing in 2033; and

•$75.0 million of 3.21% Series C, maturing in 2036.

The collateral mortgage bonds were issued to the holders of the unsecured senior notes, are only payable if Evergy Missouri West defaults on the underlying unsecured senior notes and do not increase the amount of outstanding debt for Evergy Missouri West.

As a result of the above transactions, Evergy Missouri West's outstanding senior notes have effectively become secured by the mortgage lien of the Evergy Missouri West Mortgage Indenture and rank equally and ratably with all of Evergy Missouri West's mortgage bonds, regardless of series, from time to time issued and outstanding under the Evergy Missouri West Mortgage Indenture.

Also in March 2022, Evergy Missouri West issued, at a discount, $250.0 million of 3.75% First Mortgage Bonds, maturing in 2032.

Senior Notes

In ~~April 2021,~~March 2022, Evergy Missouri West issued in a private placement $350.0 million of 2.86% Series A Senior Notes, maturing in 2031, $75.0 million of 3.01% Series B Senior Notes, maturing in 2033, and $75.0 million of 3.21% Series C Senior Notes, maturing in 2036, pursuant to a note purchase agreement. In connection with the issuance, Evergy entered into an agreement to provide an unconditional guaranty of the Series A, B and C Senior Notes, and as required by certain existing note purchase agreements, also agreed to provide unconditional guaranty of the following series of outstanding Evergy Missouri West unsecured senior notes:

•~~$36.0 million of 3.49% Series A, maturing in 2025;~~

•~~$60.0 million of 4.06% Series B, maturing in 2033;~~

•~~$150.0 million of 4.74% Series C, maturing in 2043; and~~

•~~$100.0~~repaid its $100.0 million of 3.74% ~~Series, maturing in 2022.~~

~~In April 2021, Evergy redeemed its $350.0 million of 4.85%~~ Senior Notes ~~which had a maturity date of June 2021.~~at maturity.

9.8. 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 included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on public exchanges.

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

Level 3 – Significant inputs to pricing have little or no transparency. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation.

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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 of Contents~~

Fair Value of Long-Term Debt

The Evergy Companies measure the fair value of long-term debt using Level 2 measurements available as of the measurement date. The book value and fair value of the Evergy Companies' long-term debt and long-term debt of variable interest entities is summarized in the following table.


		June 30, 2021				December 31, 2020					March 31, 2022				December 31, 2021
		Book Value		Fair Value		Book Value		Fair Value			Book Value		Fair Value		Book Value		Fair Value
Long-term debt(a)	Long-term debt(a)	(millions)								Long-term debt(a)	(millions)
Evergy(b)	Evergy(b)	$	9,770.2	$	11,002.2	$	9,627.3	$	11,274.2	Evergy(b)	$	9,834.4	$	9,712.4	$	9,687.2	$	10,758.5
Evergy Kansas Central	Evergy Kansas Central	3,932.9		4,576.4		3,931.5		4,801.7		Evergy Kansas Central	3,934.9		4,039.2		3,934.2		4,522.5
Evergy Metro	Evergy Metro	2,924.0		3,432.5		2,923.0		3,591.2		Evergy Metro	2,925.5		3,096.6		2,925.0		3,400.8
Long-term debt of variable interest entities(a)
Evergy		$	0	$	0	$	18.8	$	19.1
Evergy Kansas Central		0		0		18.8		19.1

(a) Includes current maturities.

(b) Book value as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, includes ~~$103.1~~$96.0 million and ~~$110.4~~$97.9 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger, which are not part of future principal payments and will amortize over the remaining life of the associated debt instrument.

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Recurring Fair Value Measurements

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


Description	Description	June 30, 2021			Level 1		Level 2			Level 3			NAV			Description	March 31, 2022			Level 1		Level 2			Level 3			NAV
Evergy Kansas Central	Evergy Kansas Central		(millions)													Evergy Kansas Central		(millions)
Assets	Assets															Assets
Nuclear decommissioning trust(a)	Nuclear decommissioning trust(a)															Nuclear decommissioning trust(a)
Domestic equity funds	Domestic equity funds		$	111.2	$	101.1		$	0		$	0		$	10.1	Domestic equity funds		$	133.8	$	120.2		$	—		$	—		$	13.6
International equity funds	International equity funds		68.1		68.1			0			0			0		International equity funds		69.9		69.9			—			—			—
Core bond fund	Core bond fund		50.6		50.6			0			0			0		Core bond fund		55.1		55.1			—			—			—
High-yield bond fund	High-yield bond fund		29.0		29.0			0			0			0		High-yield bond fund		28.8		28.8			—			—			—
Emerging markets bond fund	Emerging markets bond fund		25.2		25.2			0			0			0		Emerging markets bond fund		16.8		16.8			—			—			—
Combination debt/equity/other fund			21.7		21.7			0			0			0

Alternative investments fund	Alternative investments fund		30.2		0			0			0			30.2		Alternative investments fund		32.6		—			—			—			32.6
Real estate securities fund	Real estate securities fund		13.5		0			0			0			13.5		Real estate securities fund		16.5		—			—			—			16.5
Cash equivalents	Cash equivalents		0.5		0.5			0			0			0		Cash equivalents		0.6		0.6			—			—			—
Other			(0.4)		0			(0.4)			0			0

Total nuclear decommissioning trust	Total nuclear decommissioning trust		349.6		296.2			(0.4)			0			53.8		Total nuclear decommissioning trust		354.1		291.4			—			—			62.7
Rabbi trust	Rabbi trust															Rabbi trust
Fixed income funds	Fixed income funds		26.4		26.4			0			0			0		Fixed income funds		18.1		18.1			—			—			—
Equity funds	Equity funds		4.9		4.9			0			0			0		Equity funds		8.6		8.6			—			—			—
Combination debt/equity/other fund	Combination debt/equity/other fund		0.7		0.7			0			0			0		Combination debt/equity/other fund		2.2		2.2			—			—			—
Cash equivalents	Cash equivalents		0.1		0.1			0			0			0		Cash equivalents		0.1		0.1			—			—			—
Total rabbi trust	Total rabbi trust		32.1		32.1			0			0			—		Total rabbi trust		29.0		29.0			—			—			—
Total	Total		$	381.7	$	328.3		$	(0.4)		$	0		$	53.8	Total		$	383.1	$	320.4		$	—		$	—		$	62.7
Evergy Metro	Evergy Metro															Evergy Metro
Assets	Assets															Assets
Nuclear decommissioning trust(a)	Nuclear decommissioning trust(a)															Nuclear decommissioning trust(a)
Equity securities	Equity securities		$	280.9	$	280.9		$	0		$	0		$	0	Equity securities		$	283.4	$	283.4		$	—		$	—		$	—
Debt securities	Debt securities															Debt securities
U.S. Treasury	U.S. Treasury		45.1		45.1			0			0			0		U.S. Treasury		46.1		46.1			—			—			—
U.S. Agency	U.S. Agency		0.4		0			0.4			0			0		U.S. Agency		0.4		—			0.4			—			—
State and local obligations	State and local obligations		4.1		0			4.1			0			0		State and local obligations		3.9		—			3.9			—			—
Corporate bonds	Corporate bonds		44.4		0			44.4			0			0		Corporate bonds		41.8		—			41.8			—			—
Foreign governments	Foreign governments		0.1		0			0.1			0			0		Foreign governments		0.1		—			0.1			—			—
Cash equivalents	Cash equivalents		4.8		4.8			0			0			0		Cash equivalents		3.4		3.4			—			—			—

Total nuclear decommissioning trust	Total nuclear decommissioning trust		379.8		330.8			49.0			0			0		Total nuclear decommissioning trust		379.1		332.9			46.2			—			—
Self-insured health plan trust(b)	Self-insured health plan trust(b)															Self-insured health plan trust(b)
Equity securities	Equity securities		1.9		1.9			0			0			0		Equity securities		1.9		1.9			—			—			—
Debt securities	Debt securities		9.1		3.0			6.1			0			0		Debt securities		8.2		2.5			5.7			—			—
Cash and cash equivalents	Cash and cash equivalents		2.7		2.7			0			0			0		Cash and cash equivalents		2.5		2.5			—			—			—
Total self-insured health plan trust	Total self-insured health plan trust		13.7		7.6			6.1			0			0		Total self-insured health plan trust		12.6		6.9			5.7			—			—
Total	Total		$	393.5	$	338.4		$	55.1		$	0		$	0	Total		$	391.7	$	339.8		$	51.9		$	—		$	—
Other Evergy	Other Evergy															Other Evergy
Assets
Other Evergy investments																Other Evergy investments

Rabbi trusts	Rabbi trusts															Rabbi trusts
Core bond fund	Core bond fund		$	12.7	$	12.7		$	0		$	0		$	0	Core bond fund		11.7		11.7			—			—			—

Total rabbi trusts	Total rabbi trusts		$	12.7	$	12.7		$	0		$	0		$	0	Total rabbi trusts		$	11.7	$	11.7		$	—		$	—		$	—

Evergy	Evergy															Evergy
Assets	Assets															Assets
Nuclear decommissioning trust(a)	Nuclear decommissioning trust(a)		$	729.4	$	627.0		$	48.6		$	0		$	53.8	Nuclear decommissioning trust(a)		$	733.2	$	624.3		$	46.2		$	—		$	62.7
Rabbi trusts	Rabbi trusts		44.8		44.8			0			0			0		Rabbi trusts		40.7		40.7			—			—			—
Self-insured health plan trust(b)	Self-insured health plan trust(b)		13.7		7.6			6.1			0			0		Self-insured health plan trust(b)		12.6		6.9			5.7			—			—

Total	Total		$	787.9	$	679.4		$	54.7		$	0		$	53.8	Total		$	786.5	$	671.9		$	51.9		$	—		$	62.7

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Description	Description	December 31, 2020			Level 1			Level 2			Level 3			NAV			Description	December 31, 2021			Level 1			Level 2			Level 3			NAV
Evergy Kansas Central	Evergy Kansas Central		(millions)														Evergy Kansas Central		(millions)
Assets	Assets																Assets
Nuclear decommissioning trust(a)	Nuclear decommissioning trust(a)																Nuclear decommissioning trust(a)
Domestic equity funds	Domestic equity funds		$	102.7		$	95.1		$	0		$	0		$	7.6	Domestic equity funds		$	140.4		$	126.5		$	—		$	—		$	13.9
International equity funds	International equity funds		63.8			63.8			0			0			0		International equity funds		74.0			74.0			—			—			—
Core bond fund	Core bond fund		40.6			40.6			0			0			0		Core bond fund		58.1			58.1			—			—			—
High-yield bond fund	High-yield bond fund		25.0			25.0			0			0			0		High-yield bond fund		29.6			29.6			—			—			—
Emerging markets bond fund	Emerging markets bond fund		21.0			21.0			0			0			0		Emerging markets bond fund		18.0			18.0			—			—			—
Combination debt/equity/other fund			20.1			20.1			0			0			0

Alternative investments fund	Alternative investments fund		23.2			0			0			0			23.2		Alternative investments fund		32.7			—			—			—			32.7
Real estate securities fund	Real estate securities fund		12.9			0			0			0			12.9		Real estate securities fund		15.2			—			—			—			15.2
Cash equivalents	Cash equivalents		0.5			0.5			0			0			0		Cash equivalents		0.4			0.4			—			—			—
Total nuclear decommissioning trust	Total nuclear decommissioning trust		309.8			266.1			0			0			43.7		Total nuclear decommissioning trust		368.4			306.6			—			—			61.8
Rabbi trust	Rabbi trust																Rabbi trust
Core bond fund			25.6			0			0			0			25.6
Fixed income funds																	Fixed income funds		19.6			19.6			—			—			—
Equity funds																	Equity funds		9.5			9.5			—			—			—
Combination debt/equity/other fund	Combination debt/equity/other fund		7.1			0			0			0			7.1		Combination debt/equity/other fund		2.4			2.4			—			—			—

Cash equivalents																	Cash equivalents		0.2			0.2			—			—			—
Total rabbi trust	Total rabbi trust		32.7			0			0			0			32.7		Total rabbi trust		31.7			31.7			—			—			—
Total	Total		$	342.5		$	266.1		$	0		$	0		$	76.4	Total		$	400.1		$	338.3		$	—		$	—		$	61.8
Evergy Metro	Evergy Metro																Evergy Metro
Assets	Assets																Assets
Nuclear decommissioning trust(a)	Nuclear decommissioning trust(a)																Nuclear decommissioning trust(a)
Equity securities	Equity securities		$	243.1		$	243.1		$	0		$	0		$	0	Equity securities		$	299.2		$	299.2		$	—		$	—		$	—
Debt securities	Debt securities																Debt securities
U.S. Treasury	U.S. Treasury		47.7			47.7			0			0			0		U.S. Treasury		46.1			46.1			—			—			—
U.S. Agency	U.S. Agency		0.5			0			0.5			0			0		U.S. Agency		0.4			—			0.4			—			—
State and local obligations	State and local obligations		4.1			0			4.1			0			0		State and local obligations		4.0			—			4.0			—			—
Corporate bonds	Corporate bonds		43.1			0			43.1			0			0		Corporate bonds		43.7			—			43.7			—			—
Foreign governments	Foreign governments		0.1			0			0.1			0			0		Foreign governments		0.1			—			0.1			—			—
Cash equivalents	Cash equivalents		3.2			3.2			0			0			0		Cash equivalents		6.8			6.8			—			—			—
Other			0.5			0.5			0			0			0

Total nuclear decommissioning trust	Total nuclear decommissioning trust		342.3			294.5			47.8			0			0		Total nuclear decommissioning trust		400.3			352.1			48.2			—			—
Self-insured health plan trust(b)	Self-insured health plan trust(b)																Self-insured health plan trust(b)
Equity securities	Equity securities		1.7			1.7			0			0			0		Equity securities		2.0			2.0			—			—			—
Debt securities	Debt securities		8.0			2.8			5.2			0			0		Debt securities		8.7			2.7			6.0			—			—
Cash and cash equivalents	Cash and cash equivalents		3.5			3.5			0			0			0		Cash and cash equivalents		1.8			1.8			—			—			—
Total self-insured health plan trust	Total self-insured health plan trust		13.2			8.0			5.2			0			0		Total self-insured health plan trust		12.5			6.5			6.0			—			—
Total	Total		$	355.5		$	302.5		$	53.0		$	0		$	0	Total		$	412.8		$	358.6		$	54.2		$	—		$	—
Other Evergy	Other Evergy																Other Evergy
Assets
Other Evergy investments																	Other Evergy investments
Equity securities(c)																	Equity securities(c)		$	31.4		$	—		$	31.4		$	—		$	—
Total other Evergy investments																	Total other Evergy investments		31.4			—			31.4			—			—
Rabbi trusts	Rabbi trusts																Rabbi trusts
Fixed income fund			$	13.1		$	0		$	0		$	0		$	13.1
Cash and cash equivalents			0.5			0.5			0			0			0
Core bond fund																	Core bond fund		12.5			12.5			—			—			—
Total rabbi trusts	Total rabbi trusts		$	13.6		$	0.5		$	0		$	0		$	13.1	Total rabbi trusts		12.5			12.5			—			—			—
Total																	Total		$	43.9		$	12.5		$	31.4		$	—		$	—

Evergy	Evergy																Evergy
Assets	Assets																Assets
Nuclear decommissioning trust(a)	Nuclear decommissioning trust(a)		$	652.1		$	560.6		$	47.8		$	0		$	43.7	Nuclear decommissioning trust(a)		$	768.7		$	658.7		$	48.2		$	—		$	61.8
Rabbi trust	Rabbi trust		46.3			0.5			0			0			45.8		Rabbi trust		44.2			44.2			—			—			—
Self-insured health plan trust(b)	Self-insured health plan trust(b)		13.2			8.0			5.2			0			0		Self-insured health plan trust(b)		12.5			6.5			6.0			—			—
Other Evergy investments(c)																	Other Evergy investments(c)		31.4			—			31.4			—			—
Total	Total		$	711.6		$	569.1		$	53.0		$	0		$	89.5	Total		$	856.8		$	709.4		$	85.6		$	—		$	61.8

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

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

(c)Fair value was based on quoted market prices adjusted for a discount for lack of marketability based on a valuation model due to a restriction on the sale of the stock.

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Certain Evergy and Evergy Kansas Central investments included in the table above are measured at NAV as they do not have readily determinable fair values. In certain situations, these investments may have redemption restrictions.

The following table provides additional information on these Evergy and Evergy Kansas Central investments.

June 30, 2021 December 31, 2020 June 30, 2021
Fair Unfunded Fair Unfunded Redemption Length of
Value Commitments Value Commitments Frequency Settlement
Evergy Kansas Central
Nuclear decommissioning trust: (millions)
Domestic equity funds $ 10.1 $ 1.7 $ 7.6 $ 2.2 (a) (a)
Alternative investments fund(b)
30.2 0 23.2 0 Quarterly 65 days
Real estate securities fund(b)
13.5 0 12.9 0 Quarterly 65 days
Total $ 53.8 $ 1.7 $ 43.7 $ 2.2
Rabbi trust:
Core bond fund $ 0 $ 0 $ 25.6 $ 0 (c) (c)
Combination debt/equity/other fund 0 0 7.1 0 (c) (c)
Total $ 0 $ 0 $ 32.7 $ 0
Other Evergy
Rabbi trust:
Fixed income fund $ 0 $ 0 $ 13.1 $ 0 (c) (c)
Total Evergy investments at NAV $ 53.8 $ 1.7 $ 89.5 $ 2.2


	March 31, 2022				December 31, 2021				March 31, 2022
	Fair		Unfunded		Fair		Unfunded		Redemption	Length of
	Value		Commitments		Value		Commitments		Frequency	Settlement
Evergy Kansas Central	(millions)
Nuclear decommissioning trust:
Domestic equity funds	$	13.6	$	1.7	$	13.9	$	1.7	(a)	(a)
Alternative investments fund(b)	32.6		—		32.7		—		Quarterly	65 days
Real estate securities fund(b)	16.5		—		15.2		—		Quarterly	65 days








Total Evergy investments at NAV	$	62.7	$	1.7	$	61.8	$	1.7

(a)This investment is in 5 long-term private equity funds that do not permit early withdrawal. Investments in these funds cannot be distributed until the underlying investments have been liquidated, which may take years from the date of initial liquidation. NaN funds have begun to make distributions. The initial investment in the fourth and fifth funds occurred in 2016 and 2018, respectively. The fourth fund's term is 15 years, subject to the general partner's right to extend the term for up to 3 additional one-year periods. The fifth fund's term is 15 years, subject to additional extensions approved by a fund advisory committee to provide for an orderly liquidation of fund investments and dissolution of the fund.

(b)There is a holdback on final redemptions.

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

The Evergy Companies hold equity and debt investments classified as securities in various trusts including for the purposes of funding the decommissioning of Wolf Creek and for the benefit of certain retired executive officers of Evergy Kansas Central. The Evergy Companies record net realized and unrealized gains and losses on the nuclear decommissioning trusts in regulatory liabilities on their consolidated balance sheets and record net realized and unrealized gains and losses on the Evergy Companies' rabbi trusts in the consolidated statements of income and comprehensive income.

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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
		2021		2020		2021		2020
Three Months Ended March 31											Three Months Ended March 31		2022		2021
Evergy	Evergy	(millions)								Evergy		(millions)
Nuclear decommissioning trust - equity securities	Nuclear decommissioning trust - equity securities	$	34.7	$	53.3	$	67.8	$	(36.0)		Nuclear decommissioning trust - equity securities		$	(34.8)	$	33.1
Nuclear decommissioning trust - debt securities	Nuclear decommissioning trust - debt securities	1.7		2.3		(3.4)		5.3			Nuclear decommissioning trust - debt securities		(6.5)		(5.1)
Rabbi trusts - equity securities	Rabbi trusts - equity securities	1.0		2.8		(0.3)		0.8			Rabbi trusts - equity securities		(2.4)		(1.3)
Total	Total	$	37.4	$	58.4	$	64.1	$	(29.9)		Total		$	(43.7)	$	26.7
Evergy Kansas Central	Evergy Kansas Central										Evergy Kansas Central
Nuclear decommissioning trust - equity securities	Nuclear decommissioning trust - equity securities	$	17.3	$	22.1	$	31.6	$	(16.0)		Nuclear decommissioning trust - equity securities		$	(16.7)	$	14.3
Rabbi trust - equity securities	Rabbi trust - equity securities	0.8		2.6		0		0.5			Rabbi trust - equity securities		(1.6)		(0.8)
Total	Total	$	18.1	$	24.7	$	31.6	$	(15.5)		Total		$	(18.3)	$	13.5
Evergy Metro	Evergy Metro										Evergy Metro
Nuclear decommissioning trust - equity securities	Nuclear decommissioning trust - equity securities	$	17.4	$	31.2	$	36.2	$	(20.0)		Nuclear decommissioning trust - equity securities		$	(18.1)	$	18.8
Nuclear decommissioning trust - debt securities	Nuclear decommissioning trust - debt securities	1.7		2.3		(3.4)		5.3			Nuclear decommissioning trust - debt securities		(6.5)		(5.1)
Total	Total	$	19.1	$	33.5	$	32.8	$	(14.7)		Total		$	(24.6)	$	13.7

~~10.~~9. COMMITMENTS AND CONTINGENCIES

Environmental Matters

Set forth below are descriptions of contingencies related to environmental matters that may impact the Evergy Companies' operations or their financial results.Management's assessment of these contingencies, which are based on federal and state statutes and regulations, and regulatory agency and judicial interpretations and actions, has

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evolved over time.These laws, regulations, interpretations and actions can also change, restrict or otherwise impact the Evergy Companies' operations or financial results.The failure to comply with these laws, regulations, interpretations and actions could result in the assessment of administrative, civil and criminal penalties and the imposition of remedial requirements.The Evergy Companies believe that all their operations are in substantial compliance with current federal, state and local environmental standards.

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

~~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 (CSAPR) 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).~~case was eventually placed in abeyance. In December 2018, the EPA finalized a determination, known as the CSAPR Close-Out Rule, demonstrating the CSAPR Update Rule fully addressed certain upwind states' 2008 ozone NAAQS interstate transport obligations. Various states and others challenged both the CSAPR Update Rule and the CSAPR Close-Out Rule in2021, the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit)~~. In 2019,~~ restarted the ~~D.C. Circuit granted these petitions and remanded a portion of the CSAPR Update Rule back to~~litigation. On April 11, 2022, the EPA ~~and vacated~~published a proposed consent decree that establishes dates for the ~~CSAPR Close-Out Rule~~EPA to take action on SIP revisions that were submitted in ~~its entirety.~~

In response to the ~~remand by~~2015 SIP Call Rule. Deadlines for 26 states, including Kansas, Missouri and Oklahoma, are listed in the ~~D.C. Circuit,~~proposed 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.

Ozone Interstate Transport State Implementation Plans

In 2015, the EPA lowered the Ozone National Ambient Air Quality Standards (NAAQS) from 75 ppb to 70 ppb. Impacted states were required to submit Interstate Transport State Implementation Plans (ITSIPs) in 2018 to comply with the "Good Neighbor Provisions" of the Clean Air Act (CAA). The EPA did not act on these ITSIP submissions and was challenged in a court filing in May 2021 to address them. On February 22, 2022, the EPA published proposed disapprovals of ITSIPs for nineteen states including Missouri and Oklahoma. On April 4, 2022, the EPA published a final ~~Revised~~approval of the Kansas ITSIP in the Federal Register.

On April 6, 2022, the EPA published in the Federal Register the proposed federal implementation plan (FIP) to resolve outstanding "Good Neighbor" obligations with respect to the 2015 Ozone NAAQS for 26 states including Missouri and Oklahoma. This FIP would establish a revised Cross-State Air Pollution Rule ~~Update~~(CSAPR) ozone season nitrogen oxide (NOx) emissions trading program for electric generating units (EGUs), and limit ozone season NOx emissions from certain industrial stationary sources. The proposed rule would also establish a new daily backstop NOx emissions rate limit for applicable coal-fired units larger than 100MW, as well as unit-specific NOx emission rate limits for certain industrial emissions units, and would feature "dynamic" adjustments of emission budgets for EGUs beginning with ozone season 2025. The proposed FIP includes reductions to the ~~2008~~state ozone season NOx budgets for Missouri and Oklahoma beginning in 2023 with additional reductions in future years. The Evergy Companies are in the process of reviewing this proposed FIP. The EPA is also in the process of reconsidering its December 2020 decisions to retain the Ozone NAAQS at the level set in ~~April 2021. The final rule finds that nine~~2015 and the annual and 24-hour PM2.5 NAAQS at the levels set in 2012. Due to uncertainty regarding the proposed FIP and potential lowering of the ~~states that were subject~~2020 NAAQS, the Evergy Companies cannot determine the impacts on their operations or consolidated financial results, but the cost to comply with the ~~CSAPR Update Rule do not significantly contribute to downwind states' nonattainment~~ FIP and/or maintenance issues during the ozone season and that there are no further reductions in allowance budgets for these states. These nine states are Alabama, Arkansas, Iowa, Kansas, Mississippi, Missouri, Oklahoma, Texas and Wisconsin. The Evergy

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~~Companies will continue to monitor this rule as any~~a lower future ~~changes to their NO~~x ~~ozone season allowance allocations~~NAAQS could be material.

Regional Haze Rule

In 1999, the EPA finalized the Regional Haze Rule which aims to restore national parks and wilderness areas to pristine conditions.The rule requires states in coordination with the EPA, the National Park Service, the U.S. Fish and Wildlife Service, the U.S. Forest Service, and other interested parties to develop and implement air quality protection plans to reduce the pollution that causes visibility impairment.There are 156 ~~“Class I”~~"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

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revisions to their Regional Haze Rule ~~state implementation plans (SIPs)~~SIPs every ten years and the first round was due in 2007.For the second ten-year implementation period, the EPA issued a final rule revision in 2017 that allowed states to submit their SIP revisions by July 31, 2021.The Evergy Companies have been in contact with the Kansas Department of Health and Environmental (KDHE) and the Missouri Department of Natural Resources (MDNR) as they worked to draft their SIP revisions.The Missouri SIP revision has been drafted and is currently on public notice through May 5, 2022. The SIP revision does not require any additional reductions from the Evergy Companies' generating units in the state. MDNR has indicated it intends to submit the Missouri SIP revision to the EPA by the end of July 2022. The Kansas SIP revision was placed on public notice in June 2021 and requested no additional emission reductions by electric utilities based on the significant reductions that were achieved during the first implementation period.The EPA provided comments on the Kansas SIP revision in June 2021 that each state is statutorily required to conduct a ~~“four-factor analysis”~~"four-factor analysis" on at least two sources within the state to help determine if further emission reductions are necessary.The EPA also stated it would be difficult to approve the Kansas SIP revision if at least two four-factor analyses are not conducted on Kansas emission sources. ~~These sources could be from~~KDHE submitted the ~~electric utility industry or others. The Missouri~~Kansas SIP revision ~~is still being drafted and MDNR has indicated they do not expect to require any additional reductions from the Evergy Companies’ generating units~~ in ~~the state.~~ July 2021.If a Kansas generating unit of the Evergy Companies is selected for analysis, ~~there is a chance~~the possibility exists that the state or EPA, through a ~~federal implementation plan, determines~~FIP, could determine that additional operational or physical modifications are required on the generating unit to further reduce emissions. ~~If the EPA believes these expenses to be cost effective, the modifications may be required.~~ The overall cost of those modifications could be material to the Evergy Companies.

Greenhouse Gases

Burning coal and other fossil fuels releases carbon dioxide (CO2) and other gases referred to as greenhouse gases (GHG). Various regulations under the ~~federal Clean Air Act Amendments of 1990 (CAA)~~CAA limit CO2 and other GHG emissions, and in addition, other measures are being imposed or offered by individual states, municipalities and regional agreements with the goal of reducing GHG emissions.

In July 2019, the EPA published the final Affordable Clean Energy (ACE) rule in the Federal Register.This rule contained ~~(1)~~ emission guidelines for GHG emissions from existing electric utility generating units (EGUs) and ~~(2)~~ revisions to emission guideline implementing regulations. ~~This~~The rule defined the "best system of emission reduction" (BSER) for GHG emissions from existing coal-fired EGUs as on-site, heat-rate efficiency improvements. ~~The final rule also provided states with a list of candidate technologies that can be used to establish standards of performance and incorporate these performance standards into state plans.~~ In conjunction with the finalization of the ACE rule, the EPA repealed its previously adopted Clean Power Plan (CPP).In January 2021, the D.C. Circuit vacated and remanded the ACE rule back to the EPA.In ~~February~~October 2021, the Supreme Court granted petitions for certiorari to review the D.C. Circuit ~~granted a motion filed by the EPA for a partial stay of its January 2021 vacatur discussed above. The partial stay leaves the vacatur of~~decision to vacate and remand the ACE rule in place while staying the mandate that vacates the repeal of the CPP. As a result of the partial stay, neither the ACE rule nor the CPP will be in effect while the EPA forms a new rule to regulate GHG emissions. In April 2021, 18 states filed a petition for a writ of certiorari torule. A ruling from the Supreme Court ~~requesting review of the D.C. Circuit ruling.~~is expected in mid-2022.

Due to uncertainty regarding the future of the ACE rule or other potential GHG regulations, the Evergy Companies cannot determine the ~~impact of the rule~~impacts on their operations or consolidated financial results, but the cost to comply with the ACE rule or other potential GHG rules could be material.

~~Table of Contents~~

Water

The Evergy Companies discharge some of the water used in generation and other operations containing substances deemed to be pollutants.A November 2015 EPA rule applicable to steam-electric power generating plants establishes effluent limitations guidelines (ELG) and standards for wastewater discharges, including limits on the amount of toxic metals and other pollutants that can be discharged.Implementation timelines for this 2015 rule vary from 2018 to 2023.In April 2019, the U.S. Court of Appeals for the 5th Circuit (5th Circuit) issued a ruling that ~~vacates~~vacated and ~~remands~~remanded portions of the original ELG rule.Due to this ruling, the EPA announced a plan in July 2021 to release a proposed rulemaking in September 2022 to address the vacated limitations for legacy wastewater and landfill leachate.Future ELG modifications for the best available technology economically achievable for the discharge of legacy wastewater and landfill leachate are likely and could be ~~material.~~material to the Evergy Companies.

In October 2020, the EPA published the final ELG reconsideration rule.This rule adjusts numeric limits for flue gas desulfurization (FGD) wastewater and adds a 10% volumetric purge limit for bottom ash transport water.The timeline for final FGD wastewater compliance is as soon as possible on or after one year following publication of the final rule in the Federal Register but no later than December 31, 2025.In August 2021, the EPA published

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notice in the Federal Register that it ~~will undertake~~is initiating a supplemental rulemaking to revise the ELG regulations after completing ~~its~~ review of the reconsideration rule as a result of an executive order from President Biden.As part of the rulemaking process, the EPA will determine if more stringent limitations and standards are appropriate.The 2020 ELG reconsideration ~~rules~~rule will remain in effect while the EPA undertakes this new rulemaking.

The Evergy Companies have reviewed the 2020 ELG reconsideration regulation, and the costs to comply with these changes are not expected to be material.However, the Evergy Companies cannot predict what revisions the EPA may make under its ~~July 2021 announcement~~supplemental rulemaking to revise the ELG regulations, and compliance costs associated with any revisions could be material.

~~In July 2021, the EPA and the Department of the Army released a pre-publication version of a notice announcing their intent to revise the definition of "Waters of the United States."~~ After reviewing the Navigable Waters Protection Rule as directed by President Biden's administration, the EPA and Department of the Army ~~have~~ determined a need to revise the definition to prevent environmental degradation.In December 2021, the EPA and the Department of the Army published a proposed rule that repeals the Navigable Waters Protection Rule and revises the definition of “Waters of the United States.”This proposed rule restores definitions of Waters of the United States that were in place prior to 2015.The Evergy Companies ~~cannot predict~~are reviewing the ~~outcome of~~proposed rule and the impact on their operations or consolidated financial results are not expected to be material. A second rulemaking is expected in the future which will replace the Navigable Waters Protection Rule. The cost to comply with any ~~new~~future rulemaking ~~but will~~that replaces the Navigable Waters Protection Rule could be ~~monitoring proposals on this topic for any impact~~material to ~~operations.~~the Evergy Companies.

Regulation of Coal Combustion Residuals

In the course of operating their coal generation plants, the Evergy Companies produce coal combustion residuals (CCRs), including fly ash, gypsum and bottom ash.The EPA published a rule to regulate CCRs in April 2015 that requires additional CCR handling, processing and storage equipment and closure of certain ash disposal units.

In March 2019, the D.C. Circuit issued a ruling to grant the EPA's request to remand the Phase I, Part I CCR rule in response to a prior court ruling requiring the EPA to address un-lined surface impoundment closure requirements. In August 2020,January 2022, the EPA published proposed determinations for facilities that filed closure extensions for unlined or clay-lined CCR units. These proposed determinations include various interpretations of the ~~Part A~~ CCR ~~Rule. This rule reclassified clay-lined surface impoundments from "lined"~~regulations and compliance expectations that may impact all owners of CCR units. These interpretations could require modified compliance plans such as different methods of CCR unit closure. Additionally, more stringent remediation requirements for units that are in corrective action or forced to ~~"un-lined"~~go into corrective action are possible. CCR units at Lawrence Energy Center and ~~established a deadline of April 11, 2021~~Sibley Generating Station have moved into corrective action. The cost to ~~initiate closure. In November 2020,~~comply with these proposed determinations by the EPA published the final Part B CCR Rule. This rule includes a process to allow un-lined impoundments to continue to operate if a demonstration is made to prove that the un-lined impoundments are not adversely impacting groundwater, human health or the environment. The Evergy Companies initiated closure of all un-lined impoundments by the deadline in the Part A CCR rule and therefore the Part B CCR rule is not expected to have a material impact.could be material.

The Evergy Companies have recorded ~~Asset Retirement Obligations (ARO)~~AROs for their current estimates for the closure of ash disposal ponds and landfills, but the revision of these AROs may be required in the future due to changes in existing CCR regulations, the results of groundwater monitoring of CCR units or changes in interpretation of existing CCR regulations or changes in the timing or cost to close ash disposal ~~ponds.~~ ponds and landfills.If revisions to these AROs are necessary, the impact on the Evergy Companies' operations or consolidated financial results could be material.

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~~11.~~10. RELATED PARTY TRANSACTIONS AND RELATIONSHIPS

In the normal course of business, Evergy Kansas Central, Evergy Metro and Evergy Missouri West engage in related party transactions with one another. A summary of these transactions and the amounts associated with them is provided below.

Jointly-Owned Plants and Shared Services

Employees of Evergy Kansas Central and Evergy Metro manage Evergy Missouri West's business and operate its facilities at cost, including Evergy Missouri West's 18% ownership interest in Evergy Metro's Iatan Nos. 1 and 2. Employees of Evergy Kansas Central manage Jeffrey Energy Center (JEC) and operate its facilities at cost, including Evergy Missouri West's 8% ownership interest in JEC. Employees of Evergy Metro manage La Cygne Station and operate its facilities at cost, including Evergy Kansas Central's 50% interest in La Cygne Station. Employees of Evergy Metro and Evergy Kansas Central also provide one another with shared service support, including costs related to human resources, information technology, accounting and legal services.

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The operating expenses and capital costs billed for jointly-owned plants and shared services are detailed in the following table.

Three Months Ended
June 30 Year to Date
June 30
2021 2020 2021 2020
(millions)
Evergy Kansas Central billings to Evergy Missouri West $ 7.3 $ 10.0 $ 16.8 $ 14.3
Evergy Metro billings to Evergy Missouri West 33.1 36.0 67.8 75.3
Evergy Kansas Central billings to Evergy Metro 7.1 4.5 17.0 19.5
Evergy Metro billings to Evergy Kansas Central 28.2 19.5 53.9 67.6



Three Months Ended March 31		2022		2021
	(millions)
Evergy Kansas Central billings to Evergy Missouri West		$	7.4	$	9.5
Evergy Metro billings to Evergy Missouri West		32.7		34.7
Evergy Kansas Central billings to Evergy Metro		6.6		9.9
Evergy Metro billings to Evergy Kansas Central		33.4		25.7

Money Pool

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

At ~~June 30, 2021,~~March 31, 2022, Evergy Metro had a ~~$95.0~~$98.0 million outstanding receivable from Evergy Missouri West ~~and 0 outstanding payables~~ under the money pool. At December 31, ~~2020,~~2021, Evergy Metro had a ~~$100.0~~$155.0 million outstanding receivable from Evergy Missouri West ~~and 0 outstanding payables~~ under the money pool. ~~In July 2021, the Evergy, Inc. money pool was amended to include Evergy Kansas Central and Evergy Kansas South as participants.~~

Related Party Net Receivables and Payables

The following table summarizes Evergy Kansas Central's and Evergy Metro's related party net receivables and payables.

June 30 December 31
2021 2020
Evergy Kansas Central (millions)
Net receivable from Evergy $ 2.8 $ 0.1
Net payable to Evergy Metro (23.5) (21.7)
Net receivable from Evergy Missouri West 10.4 6.6
Evergy Metro
Net receivable from Evergy $ 16.4 $ 15.7
Net receivable from Evergy Kansas Central 23.5 21.7
Net receivable from Evergy Missouri West 183.9 188.1

~~Table of Contents~~



	March 31		December 31
	2022		2021
Evergy Kansas Central	(millions)
Net payable to Evergy	$	(11.8)	$	(2.2)
Net payable to Evergy Metro	(16.4)		(14.5)
Net receivable from Evergy Missouri West	4.5		10.4

Evergy Metro
Net receivable from Evergy	$	20.2	$	8.7
Net receivable from Evergy Kansas Central	16.4		14.5
Net receivable from Evergy Missouri West	187.9		254.5

Tax Allocation Agreement

Evergy files a consolidated federal income tax return as well as unitary and combined income tax returns in several state jurisdictions with Kansas and Missouri being the most significant. Income taxes for consolidated or combined subsidiaries are allocated to the subsidiaries based on separate company computations of income or loss. The following table summarizes Evergy Kansas Central's and Evergy Metro's income taxes receivable from (payable to) Evergy.

June 30 December 31
2021 2020
Evergy Kansas Central (millions)
Income taxes receivable from Evergy $ 41.3 $ 25.3
Evergy Metro
Income taxes receivable from (payable to) Evergy $ (2.1) $ 3.2

~~Leases~~

Evergy Metro leases certain transmission equipment from Evergy Kansas Central. This lease was entered into prior to the merger in an arms-length transaction and is accounted for as an operating lease. The right-of-use asset related to this lease is recorded within other long-term assets and the current and long-term lease liabilities are recorded within other current liabilities and other long-term liabilities, respectively, on the consolidated balance sheet. The assets and liabilities related to this lease between Evergy Kansas Central and Evergy Metro are eliminated at consolidated Evergy. The following table summarizes Evergy Metro's right-of-use assets and related liabilities on its consolidated balance sheet.

June 30 December 31
2021 2020
Evergy Metro (millions)
Right-of-use asset recorded within other long-term assets $ 28.6 $ 28.9
Lease liability recorded in other current liabilities 0.7 0.7
Lease liability recorded in other long-term liabilities 27.9 28.2

~~12. SHAREHOLDERS' EQUITY~~

~~Bluescape Energy Partners, LLC (Bluescape) Securities Purchase Agreement~~

In February 2021, Evergy entered into a securities purchase agreement with an affiliate of Bluescape. Pursuant to the securities purchase agreement, an affiliate of Bluescape agreed to purchase 2,269,447 shares of Evergy’s common stock for approximately $113.2 million and to receive a warrant to purchase up to 3,950,000 additional shares of Evergy’s common stock. Under the terms of the warrant, Evergy will have the option to elect a net cash settlement with respect to the exercise of the warrant under certain circumstances, or to net settle in shares of Evergy's common stock. The warrant expires three years from issuance and has an exercise price equal to $64.70 per share. Following the satisfaction of customary closing conditions, Evergy completed the sale of its common stock and warrant to the affiliate of Bluescape in April 2021 for $112.5 million, net of issuance costs of $0.7 million. The Executive Chairman of Bluescape, C. John Wilder, joined the Evergy Board in March 2021.



	March 31		December 31
	2022		2021
Evergy Kansas Central	(millions)
Income taxes receivable from Evergy	$	1.5	$	9.6

Evergy Metro
Income taxes payable to Evergy	$	(12.0)	$	(2.5)

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~~13.~~11. TAXES

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


Evergy	Evergy									Evergy
		Three Months Ended June 30				Year to Date June 30
		2021		2020		2021		2020
Three Months Ended March 31										Three Months Ended March 31	2022		2021
Current income taxes	Current income taxes	(millions)								Current income taxes	(millions)
Federal	Federal	$	4.9	$	(21.0)	$	6.0	$	(18.6)	Federal	$	11.5	$	1.1
State	State	(2.4)		(6.9)		(0.5)		(7.3)		State	(0.4)		1.9
Total	Total	2.5		(27.9)		5.5		(25.9)		Total	11.1		3.0
Deferred income taxes	Deferred income taxes									Deferred income taxes
Federal	Federal	15.0		30.8		32.7		36.8		Federal	(3.9)		17.7
State	State	3.2		33.4		7.0		36.2		State	3.2		3.8
Total	Total	18.2		64.2		39.7		73.0		Total	(0.7)		21.5

Investment tax credit	Investment tax credit									Investment tax credit
Deferral	Deferral	0.4		0		0.4		0		Deferral	2.7		—
Amortization	Amortization	(1.5)		(2.6)		(3.0)		(3.3)		Amortization	(1.6)		(1.5)
Total	Total	(1.1)		(2.6)		(2.6)		(3.3)		Total	1.1		(1.5)
Income tax expense	Income tax expense	$	19.6	$	33.7	$	42.6	$	43.8	Income tax expense	$	11.5	$	23.0


Evergy Kansas Central	Evergy Kansas Central									Evergy Kansas Central
		Three Months Ended June 30				Year to Date June 30
		2021		2020		2021		2020
Three Months Ended March 31										Three Months Ended March 31	2022		2021
Current income taxes	Current income taxes	(millions)								Current income taxes	(millions)
Federal	Federal	$	12.0	$	(12.1)	$	19.5	$	12.1	Federal	$	7.9	$	7.5
State	State	0.3		(6.5)		1.5		(6.9)		State	0.2		1.2
Total	Total	12.3		(18.6)		21.0		5.2		Total	8.1		8.7
Deferred income taxes	Deferred income taxes									Deferred income taxes
Federal	Federal	(5.7)		(10.4)		1.0		(28.6)		Federal	(8.5)		6.7
State	State	0.6		150.2		2.9		152.8		State	2.3		2.3
Total	Total	(5.1)		139.8		3.9		124.2		Total	(6.2)		9.0

Investment tax credit	Investment tax credit									Investment tax credit
Deferral	Deferral	0.4		0		0.4		0		Deferral	2.7		—
Amortization	Amortization	(1.1)		(2.3)		(2.2)		(2.7)		Amortization	(1.0)		(1.1)
Total	Total	(0.7)		(2.3)		(1.8)		(2.7)		Total	1.7		(1.1)
Income tax expense	Income tax expense	$	6.5	$	118.9	$	23.1	$	126.7	Income tax expense	$	3.6	$	16.6


Evergy Metro

Three Months Ended March 31	2022		2021
Current income taxes	(millions)
Federal	$	9.4	$	27.1
State	0.1		1.2
Total	9.5		28.3
Deferred income taxes
Federal	(1.6)		(22.0)
State	0.4		(0.8)
Total	(1.2)		(22.8)


Investment tax credit amortization	(0.6)		(0.4)

Income tax expense	$	7.7	$	5.1

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Evergy Metro
Three Months Ended
June 30 Year to Date
June 30
2021 2020 2021 2020
Current income taxes (millions)
Federal $ 21.0 $ (11.1) $ 48.1 $ 0.5
State 0 (0.2) 1.2 1.0
Total 21.0 (11.3) 49.3 1.5
Deferred income taxes
Federal (9.0) 26.2 (31.0) 16.7
State 0.4 (37.3) (0.4) (37.7)
Total (8.6) (11.1) (31.4) (21.0)
Investment tax credit amortization (0.3) (0.2) (0.7) (0.5)
Income tax expense (benefit) $ 12.1 $ (22.6) $ 17.2 $ (20.0)

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	Evergy									Evergy
		Three Months Ended June 30				Year to Date June 30
		2021		2020		2021		2020
Three Months Ended March 31										Three Months Ended March 31	2022		2021
Federal statutory income tax rate	Federal statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%	Federal statutory income tax rate	21.0	%	21.0	%
Effect of:	Effect of:									Effect of:
COLI policies	COLI policies	(1.1)		(1.6)		(1.0)		(1.6)		COLI policies	(0.5)		(1.0)
State income taxes	State income taxes	0.1		3.6		1.0		3.2		State income taxes	1.4		1.9
Flow through depreciation for plant-related differences	Flow through depreciation for plant-related differences	(6.4)		(5.0)		(6.1)		(4.7)		Flow through depreciation for plant-related differences	(6.3)		(5.8)
Federal tax credits	Federal tax credits	(3.1)		(4.6)		(3.1)		(4.6)		Federal tax credits	(3.7)		(3.1)
Non-controlling interest	Non-controlling interest	(0.3)		(0.3)		(0.3)		(0.3)		Non-controlling interest	(0.3)		(0.3)
AFUDC equity	AFUDC equity	(0.6)		(0.7)		(0.7)		(0.6)		AFUDC equity	(0.5)		(0.7)
Amortization of federal investment tax credits	Amortization of federal investment tax credits	(0.5)		(0.5)		(0.4)		(0.5)		Amortization of federal investment tax credits	(0.2)		(0.4)

State tax rate change		0		8.1		0		5.5

Stock compensation	Stock compensation	(0.1)		(0.4)		0		(0.2)		Stock compensation	(0.9)		0.2
Officer compensation limitation	Officer compensation limitation	0.5		0.2		0.4		0.2		Officer compensation limitation	0.3		0.4
Other	Other	(0.1)		0		(0.8)		0		Other	(1.9)		(1.6)
Effective income tax rate	Effective income tax rate	9.4	%	19.8	%	10.0	%	17.4	%	Effective income tax rate	8.4	%	10.6	%


Evergy Kansas Central

Three Months Ended March 31	2022		2021
Federal statutory income tax rate	21.0	%	21.0	%
Effect of:
COLI policies	(1.0)		(1.8)
State income taxes	2.0		1.2
Flow through depreciation for plant-related differences	(5.0)		(3.3)
Federal tax credits	(7.7)		(5.2)
Non-controlling interest	(0.6)		(0.5)
AFUDC equity	(0.7)		(0.8)
Amortization of federal investment tax credits	0.1		(0.5)



Stock compensation	(0.6)		(0.1)
Officer compensation limitation	—		0.2
Other	(2.9)		(1.8)
Effective income tax rate	4.6	%	8.4	%

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Evergy Kansas Central
Three Months Ended
June 30 Year to Date
June 30
2021 2020 2021 2020
Federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 %
Effect of:
COLI policies (1.6) (3.0) (1.7) (3.0)
State income taxes 0.4 4.4 1.0 3.6
Flow through depreciation for plant-related differences (5.2) 0.1 (3.8) 0
Federal tax credits (5.1) (6.9) (5.3) (6.8)
Non-controlling interest (0.5) (0.6) (0.5) (0.6)
AFUDC equity (0.6) (1.6) (0.7) (1.1)
Amortization of federal investment tax credits (0.5) (0.7) (0.5) (0.7)
State tax rate change 0 134.0 0 75.6
Stock compensation (0.3) (0.5) (0.1) (0.3)
Officer compensation limitation 0.2 0 0.2 0
Other (0.4) 0 (1.5) 0.1
Effective income tax rate 7.4 % 146.2 % 8.1 % 87.8 %

Evergy Metro
Three Months Ended
June 30 Year to Date
June 30
2021 2020 2021 2020
Federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 %
Effect of:
COLI policies (0.3) (0.3) (0.3) (0.2)
State income taxes 0.4 3.3 0.4 3.0
Flow through depreciation for plant-related differences (8.3) (9.5) (8.2) (9.0)
Federal tax credits (0.7) (2.4) (0.6) (2.4)
AFUDC equity (0.6) 0.1 (0.6) 0
Amortization of federal investment tax credits (0.4) (0.4) (0.4) (0.4)
State tax rate change 0 (40.1) 0 (29.7)
Stock compensation 0 (0.3) 0.1 (1.1)
Officer compensation limitation 1.0 0.6 0.9 0.4
Other (0.1) (0.1) 0.1 0
Effective income tax rate 12.0 % (28.1) % 12.4 % (18.4) %

~~Kansas Tax Reform~~

In May 2020, the state of Kansas exempted certain public utilities, including Evergy Kansas Central and Evergy Metro, from Kansas corporate income tax beginning in 2021 and authorized the KCC to approve changes in rates related to increases or decreases in federal or state income tax rates.

As a result of the exemption from Kansas corporate income tax, the Evergy Companies revalued their deferred income tax assets and liabilities in May 2020. Evergy decreased its net deferred income tax liabilities by $233.8 million, primarily consisting of a $400.4 million adjustment for the revaluation of deferred income tax assets and liabilities included in rate base and a $31.7 million tax gross-up adjustment on this amount for ratemaking purposes and $13.8 million of income tax expense primarily related to the revaluation of deferred income taxes that will not be recovered from customers in future rates; partially offset by a decrease to unamortized investment tax credits of $183.6 million due to the revaluation of certain Kansas income tax credits and a $16.9 million tax gross-up adjustment on this amount for ratemaking purposes.

~~Table of Contents~~

Evergy Kansas Central decreased its net deferred income tax liabilities by $17.6 million, primarily consisting of a $293.7 million adjustment for the revaluation of deferred income tax assets and liabilities included in rate base and a $17.3 million tax gross-up adjustment on this amount for ratemaking purposes; partially offset by a decrease to unamortized investment tax credits of $183.6 million due to the revaluation of certain Kansas income tax credits and a $16.9 million tax gross-up adjustment on this amount for ratemaking purposes and $109.0 million of income tax expense primarily related to the revaluation of deferred income taxes that will not be recovered from customers in future rates.

Evergy Metro decreased its net deferred income tax liabilities by $152.9 million, primarily consisting of a $106.7 million adjustment for the revaluation of deferred income tax assets and liabilities included in rate base and a $14.4 million tax gross-up adjustment on this amount for ratemaking purposes and $32.2 million of income tax benefit primarily related to the revaluation of deferred income taxes that will not be refunded to customers in future rates.

The changes to the Evergy Companies' net deferred income tax liabilities included in rate base were offset by corresponding changes in regulatory liabilities. The net regulatory liabilities will be refunded to customers in future rates by amortizing the amounts related to plant assets over the remaining useful life of the assets, and amortizing the amounts related to other items over a period to be determined in a future rate case. The changes to the Evergy Companies' unamortized investment tax credits were related to the portion of certain Kansas income tax credits that were not expected to be used after December 31, 2020. The amounts of income tax expense (benefit) recognized by the Evergy Companies related to the revaluation of deferred income taxes that will not be recovered from or refunded to customers in future rates primarily pertain to deferred tax adjustments related to the difference between Evergy's consolidated tax rate and the statutory tax rates used for setting rates at Evergy Kansas Central, Evergy Metro and Evergy Missouri West as well as deferred income tax adjustments related to non-regulated operations.

Prior to 2021, Evergy Kansas Central and Evergy Metro recovered the cost of Kansas corporate income taxes in rates from their customers at the prior statutory rate of 7%. In accordance with the provisions of the income tax exemption, Evergy Metro and Evergy Kansas Central filed a joint application with the KCC in July 2020 to reduce their retail rates to reflect their exemption from Kansas corporate income taxes beginning in 2021. In the joint application, Evergy Metro requested to implement its rate reduction in one phase, effective January 1, 2021, and Evergy Kansas Central requested to implement its rate reduction in three phases, effective January 1 in each of 2021, 2022 and 2023. In November 2020, the KCC approved Evergy Kansas Central's and Evergy Metro's joint application.


Evergy Metro

Three Months Ended March 31	2022		2021
Federal statutory income tax rate	21.0	%	21.0	%
Effect of:
COLI policies	(0.2)		(0.2)
State income taxes	0.6		0.6
Flow through depreciation for plant-related differences	(7.0)		(7.8)
Federal tax credits	(0.2)		(0.6)
AFUDC equity	(0.4)		(0.7)
Amortization of federal investment tax credits	(0.6)		(0.4)


Stock compensation	(1.3)		0.4
Officer compensation limitation	0.5		0.9
Other	—		0.1
Effective income tax rate	12.4	%	13.3	%

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following combined Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the consolidated financial statements and accompanying notes in this combined Quarterly Report on Form 10-Q and the Evergy Companies' combined ~~2020~~2021 Form 10-K. None of the registrants make any representation as to information related solely to Evergy, Evergy Kansas Central or Evergy Metro other than itself.

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EVERGY, INC.

EXECUTIVE SUMMARY

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

•Evergy Metro is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.

•Evergy Missouri West is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.

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

Evergy Kansas Central also owns a 50% interest in Prairie Wind, which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that provides transmission service in the SPP. Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.

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generation, transmission, distribution and sale of electricity to approximately 1.6 million customers in the states of Kansas and Missouri. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).

~~February 2021 Winter Weather Event~~Evergy Equity Investment

~~In February 2021, much of the central and southern United States, including the service territories of the~~From time to time, Evergy ~~Companies, experienced a significant winter weather event that resulted~~makes limited equity investments in ~~extremely cold temperatures over a multi-day period.The February 2021 winter weather event resulted in an increase in the demand for natural gas used by the Evergy Companies for generating electricity and also contributed to the limited availability of other generation resources, including coal and renewables, within the SPP Integrated Marketplace.As part of the~~ ~~February 2021~~ winter weather event, Evergy incurred natural gas and purchased power costs, net of wholesale revenues, of $349.5 million. This $349.5 million of net fuel and purchased power costs was primarily driven by $292.7 million of costs at Evergy Missouri West and $128.2 million of costs at Evergy Kansas Central, partially offset by $71.4 million of net wholesale revenues at Evergy Metro. The amount of purchased power costs incurred by the Evergy Companies during the ~~February 2021~~ ~~winter weather event is subject to resettlement activity and further review~~ by the SPP. This review and any subsequent resettlement activity could result in increases or decreases to the final amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event and these changes could be material.

~~As of June 30, 2021, the Evergy Companies have deferred substantially all of the fuel and purchased power costs, net of wholesale revenues, related to the~~ ~~February 2021~~ winter weather event to a regulatory asset or liability pursuant to their fuel recovery mechanisms and an emergency AAO issued by the KCC in February 2021. Further, in June 2021, Evergy Metro and Evergy Missouri West filed a joint request for an AAO with the MPSC regarding the deferral and subsequent recovery or refund of the ~~February 2021~~ ~~winter weather event amounts.~~ While the Evergy Companies expect to recover substantially all of any increased fuel and purchased power costs related to the February 2021 winter weather event from customers, the timing of the cost recovery could be delayed or spread

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~~over a longer than typical recovery timeframe by the KCC or the MPSC to help moderate monthly customer bill impacts given the extraordinary nature of the February 2021 winter weather event.~~

~~The Evergy Companies also engage in limited non-regulated~~early-stage energy ~~marketing activities in various regional power markets that~~solution companies. These investments have historically not had a significant impact on ~~the Evergy Companies'~~Evergy's results of operations. ~~These energy marketing margins are recorded net~~In October 2021, an equity investment in ~~operating revenues on the~~which Evergy ~~Companies' statements~~held a minority stake through an initial investment of ~~income and comprehensive income.~~$3.7 million was acquired through a transaction involving a special purpose acquisition company (SPAC). As a result of its equity investment in the ~~elevated market prices experienced~~company that was acquired in ~~regional power markets across~~ the ~~central and southern United States driven by~~SPAC transaction, Evergy received shares of the ~~February 2021 winter weather event discussed above,~~resulting public company upon the closing of the transaction, which were subject to a restriction on sale for 150 days. The equity investment had a fair value of $31.4 million as of December 31, 2021.

In March 2022, Evergy ~~and~~sold its shares in the equity investment to a financial institution through a share forward agreement following the expiration of the restriction on sale. As part of the share forward agreement, Evergy ~~Kansas Central~~delivered its shares to the financial institution in exchange for a series of future cash settlements based primarily on the volume-weighted average price (VWAP) of the shares over the term of the agreement, which ends in June 2022 but could be ended earlier at the option of the financial institution. The share forward agreement is included in other current assets on Evergy's consolidated balance sheets as of March 31, 2022, at its fair value of $14.5 million.

In the first quarter of 2022, Evergy recorded ~~$95.0~~a pre-tax loss of $14.2 million in investment earnings (loss) on its consolidated statements of ~~energy marketing margins in 2021~~comprehensive income related to the ~~February 2021 winter weather event, primarily driven by activities~~decrease in ~~ERCOT. The amount~~market value of ~~energy marketing margins recorded as a result~~its equity investment prior to sale and the recording of the ~~February 2021 winter weather event is~~share forward agreement at fair value. Evergy also received cash settlements of $2.7 million under the share forward agreement in the first quarter of 2022. Evergy uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the gains or losses related to equity investments subject to ~~resettlement activities and/or legislative action in Texas~~a restriction on sale that ~~could result in increases or decreases~~can create period to ~~the final amount of energy marketing margins earned by Evergy and Evergy Kansas Central as a result of the February 2021 winter weather event and these changes could be material.~~

period volatility, among other items. See ~~Note 1 to the consolidated financial statements~~"Non-GAAP Measures" within this Executive Summary for additional ~~information regarding the February 2021 winter weather event.~~

~~Bluescape Securities Purchase Agreement~~

~~Transforming Evergy’s Generation Fleet~~

~~The Evergy Companies are committed to a long-term strategy to reduce CO~~2 ~~emissions in a cost-effective and reliable manner. In 2020, Evergy achieved a reduction of CO~~2 emissions of approximately 50% from 2005 levels in connection with its goal to achieve an 80% reduction from 2005 levels by 2050. In connection with the filing of its triennial integrated resource plan in Missouri in April 2021, Evergy announced a revised goal to achieve net-zero carbon emissions by 2045, which includes an interim goal of a 70% reduction of CO2 ~~emissions from 2005 levels by 2030. Evergy’s five-year Sustainability Transformation Plan (STP) includes steps that would achieve significant CO~~2 emission reductions and provide a foundation to achieve future reductions by pursuing constructive legislative and regulatory recovery mechanisms to facilitate the retirement of coal-fired generation and expanding Evergy’s wind and solar footprint, while maintaining reliability. The trajectory and timing of reaching Evergy's net-zero carbon emissions goal are dependent on enabling technology developments and supportive energy policies and regulations.

~~Impact of COVID-19~~

~~See Part II, Item 7, MD&A - Executive Summary in the Evergy Companies' combined 2020 Form 10-K for information regarding the impact of COVID-19 on the Evergy Companies.~~information.

Regulatory Proceedings

See Note 4 to the consolidated financial statements for information regarding regulatory proceedings.

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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
		2021		Change		2020		2021		Change		2020
Three Months Ended March 31														Three Months Ended March 31	2022		Change		2021
		(millions, except per share amounts)													(millions, except per share amounts)
Net income attributable to Evergy, Inc.	Net income attributable to Evergy, Inc.	$	185.3	$	51.9	$	133.4	$	376.9	$	174.1	$	202.8	Net income attributable to Evergy, Inc.	$	122.5	$	(69.1)	$	191.6
Earnings per common share, diluted	Earnings per common share, diluted	0.81		0.22		0.59		1.65		0.76		0.89		Earnings per common share, diluted	0.53		(0.31)		0.84

Net income attributable to Evergy, Inc. ~~increased~~decreased for the three months ended ~~June 30, 2021,~~March 31, 2022, compared to the same period in ~~2020,~~2021, primarily due to non-regulated energy marketing margins recognized in 2021 related to the February 2021 winter weather event, higher ~~retail sales driven~~investment losses, higher depreciation expense and higher property taxes; partially offset by ~~an increase in weather-normalized demand,~~ lower operating and maintenance expenses and lower income tax expense.

Diluted EPS ~~increased~~decreased for the three months ended ~~June 30, 2021,~~March 31, 2022, compared to the same period in ~~2020,~~2021, primarily due to the ~~increase~~decrease in net income attributable to Evergy, ~~discussed above.~~

~~Net income attributable to Evergy,~~ Inc. increased year to date June 30, 2021, compared to the same period in 2020, primarily due to non-regulated energy marketing margins related to the February 2021 winter weather event, higher retail sales driven by an increase in weather-normalized demand and favorable weather, lower operating and maintenance expenses and higher equity allowance for funds used during construction (AFUDC).

~~Diluted EPS increased year to date June 30, 2021, compared to the same period in 2020, primarily due to the increase in net income attributable to Evergy~~ discussed above.

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

Non-GAAP Measures

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

Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended ~~and year to date June 30, 2021,~~March 31, 2022, were ~~$195.1~~$133.8 million or ~~$0.85 per share and $320.5 million or $1.40~~$0.58 per share, respectively. For the three months ended ~~and year to date June 30, 2020,~~March 31, 2021, Evergy's

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adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were ~~$154.2~~$125.4 million or ~~$0.68 per share and $248.4 million or $1.09~~$0.55 per share, respectively. In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the income or costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event and gains or losses related to equity investments subject to a restriction on sale that can create period to period volatility, as well as costs resulting from executive transition, severance and advisor ~~expenses and the revaluation of deferred tax assets and liabilities from the Kansas corporate income tax rate change.~~expenses.

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

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

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

Earnings (Loss) Earnings (Loss) per Diluted Share Earnings (Loss) Earnings (Loss) per Diluted Share
Three Months Ended June 30 2021 2020
(millions, except per share amounts)
Net income attributable to Evergy, Inc. $ 185.3 $ 0.81 $ 133.4 $ 0.59
Non-GAAP reconciling items:
Non-regulated energy marketing margin related to February 2021
winter weather event, pre-tax(a)
1.5 0.01 — —
Non-regulated energy marketing costs related to February 2021
winter weather event, pre-tax(b)
2.0 0.01 — —
Executive transition costs, pre-tax(c)
1.8 0.01 — —
Severance costs, pre-tax(d)
1.2 — (0.4) —
Advisor expenses, pre-tax(e)
5.7 0.02 9.8 0.04
Income tax benefit(f)
(2.4) (0.01) (2.4) (0.01)
Kansas corporate income tax change(g)
— — 13.8 0.06
Adjusted earnings (non-GAAP) $ 195.1 $ 0.85 $ 154.2 $ 0.68


		Earnings (Loss)		Earnings (Loss) per Diluted Share		Earnings (Loss)		Earnings (Loss) per Diluted Share			Earnings (Loss)		Earnings (Loss) per Diluted Share		Earnings (Loss)		Earnings (Loss) per Diluted Share
Year to Date June 30		2021				2020
Three Months Ended March 31										Three Months Ended March 31	2022				2021
		(millions, except per share amounts)									(millions, except per share amounts)
Net income attributable to Evergy, Inc.	Net income attributable to Evergy, Inc.	$	376.9	$	1.65	$	202.8	$	0.89	Net income attributable to Evergy, Inc.	$	122.5	$	0.53	$	191.6	$	0.84
Non-GAAP reconciling items:	Non-GAAP reconciling items:									Non-GAAP reconciling items:
Non-regulated energy marketing margin related to February 2021 winter weather event, pre-tax(a)	Non-regulated energy marketing margin related to February 2021 winter weather event, pre-tax(a)	(95.0)		(0.42)		—		—		Non-regulated energy marketing margin related to February 2021 winter weather event, pre-tax(a)	—		—		(96.5)		(0.42)
Non-regulated energy marketing costs related to February 2021 winter weather event, pre-tax(b)	Non-regulated energy marketing costs related to February 2021 winter weather event, pre-tax(b)	4.0		0.02		—		—		Non-regulated energy marketing costs related to February 2021 winter weather event, pre-tax(b)	0.3		—		2.0		0.01
Executive transition costs, pre-tax(c)	Executive transition costs, pre-tax(c)	7.3		0.03		—		—		Executive transition costs, pre-tax(c)	—		—		5.5		0.02
Severance costs, pre-tax(d)	Severance costs, pre-tax(d)	2.8		0.01		26.6		0.12		Severance costs, pre-tax(d)	—		��		1.6		0.01
Advisor expenses, pre-tax(e)	Advisor expenses, pre-tax(e)	7.2		0.03		16.4		0.07		Advisor expenses, pre-tax(e)	—		—		1.5		0.01
Income tax expense (benefit)(f)		17.3		0.08		(11.2)		(0.05)
Kansas corporate income tax change(g)		—		—		13.8		0.06

Restricted equity investment losses, pre-tax(f)										Restricted equity investment losses, pre-tax(f)	14.2		0.06		—		—
Income tax expense (benefit)(g)										Income tax expense (benefit)(g)	(3.2)		(0.01)		19.7		0.08

Adjusted earnings (non-GAAP)	Adjusted earnings (non-GAAP)	$	320.5	$	1.40	$	248.4	$	1.09	Adjusted earnings (non-GAAP)	$	133.8	$	0.58	$	125.4	$	0.55

(a)Reflects non-regulated energy marketing margins related to the February 2021 winter weather event and are included in operating revenues on the consolidated statements of comprehensive income.

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

(c)Reflects costs associated with executive transition including inducement bonuses, severance agreements and other transition expenses and are included in operating and maintenance expense on the consolidated statements of comprehensive income.

(d)Reflects severance costs incurred associated with certain voluntary severance programs at the Evergy Companies and are included in operating and maintenance expense on the consolidated statements of comprehensive income.

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

(f)Reflects losses related to equity investments which were subject to a restriction on sale, including gains or losses related to the fair value of associated share forward agreements, and are included in investment earnings (loss) on the consolidated statements of comprehensive income.

(g)Reflects an income tax effect calculated at a statutory rate of approximately 22% ~~in 2021 and 26% in 2020,~~, with the exception of certain non-deductible items.

~~(g)~~Reflects the revaluation of Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's deferred income tax assets and liabilities from the Kansas corporate income tax rate change and are included in income tax expense on the consolidated statements of comprehensive income.

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Wolf Creek Refueling Outage

Wolf Creek's most recent refueling outage began in March 2021 and the unit returned to service in May 2021. Wolf Creek's next refueling outage is planned to begin in the ~~third~~fourth quarter of 2022.

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ENVIRONMENTAL MATTERS

See Note 109 to the consolidated financial statements for information regarding environmental matters.

RELATED PARTY TRANSACTIONS

See Note 1110 to the consolidated financial statements for information regarding related party transactions.

EVERGY RESULTS OF OPERATIONS

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

Three Months Ended
June 30 Year to Date
June 30
2021 Change 2020 2021 Change 2020
(millions)
Operating revenues $ 1,236.2 $ 51.5 $ 1,184.7 $ 2,848.1 $ 546.7 $ 2,301.4
Fuel and purchased power 284.1 26.0 258.1 919.2 402.9 516.3
SPP network transmission costs 73.8 4.1 69.7 143.2 11.5 131.7
Operating and maintenance 259.9 (12.8) 272.7 535.4 (25.5) 560.9
Depreciation and amortization 225.2 3.6 221.6 444.5 4.4 440.1
Taxes other than income tax 97.9 7.0 90.9 192.8 9.6 183.2
Income from operations 295.3 23.6 271.7 613.0 143.8 469.2
Other income (expense), net 4.3 8.5 (4.2) (3.8) 21.6 (25.4)
Interest expense 93.8 (5.7) 99.5 187.8 (7.9) 195.7
Income tax expense 19.6 (14.1) 33.7 42.6 (1.2) 43.8
Equity in earnings of equity method investees, net of income taxes 2.1 0.1 2.0 4.1 (0.1) 4.2
Net income 188.3 52.0 136.3 382.9 174.4 208.5
Less: Net income attributable to noncontrolling interests 3.0 0.1 2.9 6.0 0.3 5.7
Net income attributable to Evergy, Inc. $ 185.3 $ 51.9 $ 133.4 $ 376.9 $ 174.1 $ 202.8



Three Months Ended March 31		2022		Change		2021
	(millions)
Operating revenues		$	1,223.9	$	(388.0)	$	1,611.9
Fuel and purchased power		309.0		(326.1)		635.1
SPP network transmission costs		78.7		9.3		69.4
Operating and maintenance		252.2		(23.3)		275.5
Depreciation and amortization		229.0		9.7		219.3
Taxes other than income tax		101.9		7.0		94.9
Income from operations		253.1		(64.6)		317.7
Other expense, net		(26.3)		(18.2)		(8.1)
Interest expense		91.8		(2.2)		94.0
Income tax expense		11.5		(11.5)		23.0
Equity in earnings of equity method investees, net of income taxes		2.1		0.1		2.0
Net income		125.6		(69.0)		194.6
Less: Net income attributable to noncontrolling interests		3.1		0.1		3.0
Net income attributable to Evergy, Inc.		$	122.5	$	(69.1)	$	191.6

Evergy Utility Gross Margin and MWh Sales

Utility gross margin is a financial measure that is not calculated in accordance with GAAP. Utility gross margin, as used by the Evergy Companies, is defined as operating revenues less fuel and purchased power costs and amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power costs, offset by wholesale sales margin, are subject to recovery through cost adjustment mechanisms. As a result, changes in fuel and purchased power costs are offset in operating revenues with minimal impact on net income. In addition, SPP network transmission costs fluctuate primarily due to investments by SPP members for upgrades to the transmission grid within the SPP RTO. As with fuel and purchased power costs, changes in SPP network transmission costs are mostly reflected in the prices charged to customers with minimal impact on net income.

Management believes that utility gross margin provides a meaningful basis for evaluating the Evergy Companies' operations across periods because utility gross margin excludes the revenue effect of fluctuations in these expenses. Utility gross margin is used internally to measure performance against budget and in reports for management and the Evergy Board. Utility gross margin should be viewed as a supplement to, and not a substitute for, income from operations, which is the most directly comparable financial measure prepared in accordance with

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GAAP. The Evergy Companies' definition of utility gross margin may differ from similar terms used by other companies.

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The following ~~tables summarize~~table summarizes Evergy's utility gross margin and MWhs sold and ~~provide~~provides a reconciliation of utility gross margin to income from operations.

Revenues and Expenses MWhs Sold
Three Months Ended June 30 2021 Change 2020 2021 Change 2020
Retail revenues (millions) (thousands)
Residential $ 459.8 $ (16.9) $ 476.7 3,459 (264) 3,723
Commercial 422.5 33.8 388.7 4,170 316 3,854
Industrial 150.0 10.7 139.3 2,073 174 1,899
Other retail revenues 9.5 0.4 9.1 35 3 32
Total electric retail 1,041.8 28.0 1,013.8 9,737 229 9,508
Wholesale revenues 70.0 22.7 47.3 3,486 (375) 3,861
Transmission revenues 90.4 8.2 82.2 N/A N/A N/A
Other revenues 34.0 (7.4) 41.4 N/A N/A N/A
Operating revenues 1,236.2 51.5 1,184.7 13,223 (146) 13,369
Fuel and purchased power (284.1) (26.0) (258.1)
SPP network transmission costs (73.8) (4.1) (69.7)
Utility gross margin (a)
878.3 21.4 856.9
Operating and maintenance (259.9) 12.8 (272.7)
Depreciation and amortization (225.2) (3.6) (221.6)
Taxes other than income tax (97.9) (7.0) (90.9)
Income from operations $ 295.3 $ 23.6 $ 271.7
(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.


		Revenues and Expenses						MWhs Sold				Revenues and Expenses						MWhs Sold
Year to Date June 30		2021		Change		2020		2021	Change	2020
Three Months Ended March 31											Three Months Ended March 31	2022		Change		2021		2022	Change	2021
Retail revenues	Retail revenues	(millions)						(thousands)			Retail revenues	(millions)						(thousands)
Residential	Residential	$	856.5	$	(22.7)	$	879.2	7,421	120	7,301	Residential	$	451.8	$	55.1	$	396.7	3,935	(27)	3,962
Commercial	Commercial	768.5		(4.9)		773.4		8,392	332	8,060	Commercial	403.1		57.1		346.0		4,256	34	4,222
Industrial	Industrial	283.6		3.7		279.9		4,131	233	3,898	Industrial	150.3		16.7		133.6		2,113	55	2,058
Other retail revenues	Other retail revenues	16.9		(2.8)		19.7		66	1	65	Other retail revenues	9.0		1.6		7.4		32	1	31
Total electric retail	Total electric retail	1,925.5		(26.7)		1,952.2		20,010	686	19,324	Total electric retail	1,014.2		130.5		883.7		10,336	63	10,273
Wholesale revenues	Wholesale revenues	557.5		446.7		110.8		7,799	1,064	6,735	Wholesale revenues	51.9		(435.6)		487.5		3,900	(866)	4,766
Transmission revenues	Transmission revenues	176.4		18.6		157.8		N/A	N/A	N/A	Transmission revenues	98.0		12.0		86.0		N/A	N/A	N/A
Other revenues	Other revenues	188.7		108.1		80.6		N/A	N/A	N/A	Other revenues	59.8		(94.9)		154.7		N/A	N/A	N/A
Operating revenues	Operating revenues	2,848.1		546.7		2,301.4		27,809	1,750	26,059	Operating revenues	1,223.9		(388.0)		1,611.9		14,236	(803)	15,039
Fuel and purchased power	Fuel and purchased power	(919.2)		(402.9)		(516.3)					Fuel and purchased power	(309.0)		326.1		(635.1)
SPP network transmission costs	SPP network transmission costs	(143.2)		(11.5)		(131.7)					SPP network transmission costs	(78.7)		(9.3)		(69.4)
Utility gross margin (a)	Utility gross margin (a)	1,785.7		132.3		1,653.4					Utility gross margin (a)	836.2		(71.2)		907.4
Operating and maintenance	Operating and maintenance	(535.4)		25.5		(560.9)					Operating and maintenance	(252.2)		23.3		(275.5)
Depreciation and amortization	Depreciation and amortization	(444.5)		(4.4)		(440.1)					Depreciation and amortization	(229.0)		(9.7)		(219.3)
Taxes other than income tax	Taxes other than income tax	(192.8)		(9.6)		(183.2)					Taxes other than income tax	(101.9)		(7.0)		(94.9)
Income from operations	Income from operations	$	613.0	$	143.8	$	469.2				Income from operations	$	253.1	$	(64.6)	$	317.7
(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.	(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.										(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.

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Evergy's utility gross margin ~~increased $21.4~~decreased $71.2 million for the three months ended ~~June 30, 2021,~~March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•~~an $8.2 million increase in~~ ~~transmission revenue due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2021;~~

•a ~~$5.6 million increase related to TDC riders in 2021, primarily at Evergy Kansas Central; and~~

•~~a $4.1 million in~~crease primarily due to higher retail sales driven by an increase in weather-normalized commercial and industrial demand partially offset by a decrease in weather-normalized residential demand; partially offset by unfavorable weather (cooling degree days decreased by 2%); partially offset by

•~~a $6.9~~$104.9 million decrease in ~~revenues at Evergy Kansas Central and Evergy Metro due to rate reductions beginning January 1, 2021 in Kansas to reflect their exemption from Kansas corporate income taxes.~~

~~Evergy's utility gross margin increased $132.3 million year to date June 30, 2021, compared to the same period in 2020, primarily driven by:~~

•~~$95.0 million of~~ non-regulated energy marketing margins recognized at Evergy Kansas Central, primarily due to $96.5 million of margins recognized in 2021 related to the February 2021 winter weather event; partially offset by

•a ~~$20.9~~$17.6 million increase ~~primarily~~ due to ~~higher~~favorable average retail ~~sales driven by~~pricing, colder winter weather in 2022 (heating degree days increased by 7%2%), and ~~an increase in~~higher weather-normalized commercial and industrial ~~demand, partially offset by a decrease in weather-normalized residential~~ demand;

•~~an $18.6~~a $12.0 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January ~~2021;~~2022; and

•a ~~$1.6~~$0.4 million net increase due to other impacts from the February 2021 winter weather event driven by:

◦a ~~$33.9~~$21.1 million increase ~~at Evergy Kansas Central driven by higher utility gross margin at its non-regulated 8% ownership share of JEC due to higher wholesale sales prices and MWhs sold in February 2021; partially offset by~~

◦~~a $20.9 million decrease~~ at Evergy Missouri West driven by ~~$14.6~~$14.9 million of increased fuel and purchased power costs in February 2021 that are not currently recoverable from customers through its fuel recovery mechanism and a $6.2 million ~~decrease~~ related to a special requirements contract with an industrial customer; and

◦~~an $11.4~~a $12.5 million ~~decrease~~increase at Evergy Metro primarily driven by jurisdictional allocation differences currently present between its fuel recovery mechanisms in Missouri and Kansas regarding its refund to customers for the net increase in wholesale revenues in February 2021; partially offset by

•◦a ~~$14.1~~$34.0 million ~~decrease in revenues~~decrease at Evergy Kansas Central ~~and Evergy Metro~~driven by higher utility gross margin at its non-regulated 8% ownership share of JEC due to ~~rate reductions beginning January 1, 2021~~higher wholesale sale prices and MWhs sold in ~~Kansas to reflect their exemption from Kansas corporate income taxes.~~February 2021.

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Operating and Maintenance

Evergy's operating and maintenance expense decreased ~~$12.8~~$23.3 million for the three months ended ~~June 30, 2021,~~March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•an ~~$11.4~~$8.9 million decrease in credit loss expense at Evergy Kansas Central, Evergy Metro and Evergy Missouri West primarily due to ~~increases made to~~a reduction in the allowance for credit losses recorded in ~~2020 related to the economic slowdown resulting from the COVID-19 pandemic and~~2022 as a ~~lower level~~result of ~~write-offs in 2021;~~

•a $6.7 million decrease in various transmission and distribution operating and maintenance expenses primarily due to lower labor and contractor costs primarily driven by a higher mix of transmission capital projectsimprovements in the ~~second quarter~~aging of ~~2021 and a $2.2 million decrease in vegetation management costs in the second quarter of 2021; and~~

•~~a $4.1 million decrease in advisor expenses incurred in the second quarter of 2021 associated with strategic planning; partially offset by~~

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•a $7.1 million increase in plant operating and maintenance expense at fossil-fuel generating units primarily due to a $5.2 million increase at Evergy Kansas Central primarily driven by $6.9 million of increases related to major maintenance outages at JEC and the State Line Generating Station in 2021;accounts receivable for certain customers;

•$~~2.0~~5.5 million of costs ~~at Evergy Kansas Central related to non-regulated energy marketing margins recognized during the February 2021 winter weather event; and~~

•~~$1.8 million of costs associated with executive transition in the second quarter of 2021, including severance agreements and other transition expenses.~~

~~Evergy's operating and maintenance expense decreased $25.5 million year to date June 30, 2021, compared to the same period in 2020, primarily driven by:~~

•a $23.7 million decrease in voluntary severance expenses due to a $17.1 million decrease at Evergy Kansas Central, Evergy Metro and Evergy Missouri West related to Evergy voluntary exit programs in 2020 and a $6.6 million decrease in voluntary severance expenses incurred at Evergy Kansas Central and Evergy Metro related to Wolf Creek voluntary exit programs in 2020;

•a $5.6 million decrease in various transmission and distribution operating and maintenance expenses primarily due to lower labor and contractor costs primarily driven by a higher mix of transmission capital projects in 2021 and a $1.4 million decrease in vegetation management costs in 2021;

•a $9.3 million decrease in credit loss expense at Evergy Kansas Central, Evergy Metro and Evergy Missouri West primarily due to increases made to the allowance for credit losses in 2020 related to the economic slowdown resulting from the COVID-19 pandemic and a lower level of write-offs in 2021; and

•~~a $9.2 million decrease in advisor expenses incurred~~recorded in 2021 associated with ~~strategic planning; partially offset by~~

•~~$7.3 million of costs associated with~~ executive transition, ~~in 2021,~~ including inducement bonuses, severance agreements and other transition expenses;

•a ~~$6.8~~$3.6 million ~~increase~~decrease in ~~plant~~transmission and distribution operating and maintenance ~~expense at fossil-fuel generating units~~expenses primarily ~~due to a $9.2 million increase~~ at Evergy Kansas Central ~~from~~driven by lower labor and contractor costs primarily due to an increase in transmission and distribution capital projects and lower employee headcount and a ~~major maintenance outage at JEC~~$0.5 million decrease in ~~2021;~~vegetation management costs in 2022;

•~~$4.0~~a $1.7 million ofdecrease in costs at Evergy Kansas Central related to non-regulated energy marketing margins recognized during the February 2021 winter weather event; and

•a ~~$2.7~~$1.5 million ~~increase~~decrease in ~~property insurance~~advisor expenses incurred in 2022 associated with strategic planning.

Depreciation and Amortization

Evergy's depreciation and amortization expense ~~due~~increased $9.7 million for the three months ended March 31, 2022, compared to ~~a lower annual refund of nuclear insurance premiums received~~the same period in 2021, primarily driven by higher capital additions at Evergy Kansas Central and Evergy Metro in ~~2021 related to their ownership interests in Wolf Creek.~~2022.

Taxes Other Than Income Tax

Evergy's taxes other than income tax increased $7.0 million for the three months ended ~~June 30, 2021 and $9.6 million year to date June 30, 2021,~~March 31, 2022, compared to the same ~~periods~~period in ~~2020;~~2021, driven by an increase in property taxes in Missouri and Kansas primarily due to higher assessed property tax values.

Other ~~Income (Expense),~~Expense, Net

Evergy's other expense, net ~~decreased $8.5~~increased $18.2 million for the three months ended ~~June 30, 2021,~~March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•~~a $4.0~~an $11.2 million decrease in investment earnings primarily driven by a $14.2 million loss from the sale of Evergy's equity investment in an early-stage energy solutions company in 2022; partially offset by a $3.3 million increase in unrealized gains due to the change in fair value related to other equity investments;

•a $3.6 million increase due to higher pension non-service costs at Evergy Kansas Central and Evergy Metro ~~equity AFUDC primarily due to higher construction work~~ in ~~progress balances in the second quarter of 2021;~~

•~~a $5.3 million decrease due to higher investment earnings primarily due to unrealized gains from equity investments in the second quarter of 2021;~~2022; and

•~~a $2.2 million decrease due to recording higher Evergy Kansas Central corporate-owned life insurance (COLI) benefits in the second quarter of 2021.~~

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~~Evergy's other expense, net decreased $21.6 million year to date June 30, 2021, compared to the same period in 2020, primarily driven by:~~

•~~a $9.7 million decrease due to higher Evergy Kansas Central and Evergy Metro equity AFUDC primarily due to lower short-term debt and higher construction work in progress balances in 2021;~~

•~~a $7.7 million decrease due to higher investment earnings primarily due to unrealized gains from equity investments in 2021;~~

•$3.1 million of other income recorded in 2021 related to a contract termination ~~fee; and~~

•~~a $2.2 million decrease due to recording higher Evergy Kansas Central COLI benefits in 2021.~~fees.

Income Tax Expense

Evergy's income tax expense decreased ~~$14.1~~$11.5 million for the three months ended ~~June 30, 2021,~~March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•a ~~$13.8~~$17.1 million decrease ~~related to the revaluation of deferred income tax assets and liabilities in the second quarter of 2020~~primarily due to ~~the change in the Kansas corporate income tax rate;~~

•~~an $8.7 million decrease as a result of the state of Kansas exempting certain public utilities, including~~lower Evergy Kansas Central ~~and Evergy Metro, from Kansas corporate~~pre-tax income ~~tax beginning~~ in ~~2021; and~~

•~~a $5.0 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes at Evergy Kansas Central;~~2022; partially offset by

•~~an $11.3~~a $3.9 million increase ~~primarily~~ due to ~~higher Evergy Kansas Central and Evergy Metro~~a decrease in the amortization of flow-through items driven by a decrease in pre-tax income in the ~~second~~first quarter of ~~2021.~~

~~Evergy's income tax expense decreased $1.2 million year to date June 30, 2021, compared to the same period in 2020, primarily driven by:~~

•~~an $18.9 million decrease as a result of the state of Kansas exempting certain public utilities, including Evergy Kansas Central and Evergy Metro, from Kansas corporate income tax beginning in 2021;~~

•~~a $14.0 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes~~2022 at Evergy Kansas Central;

•~~a $13.8 million decrease related to the revaluation of deferred income tax assets and liabilities in the second quarter of 2020 due to the change in the Kansas corporate income tax rate;~~ and

•a ~~$2.5~~$2.6 million ~~decrease~~increase due to ~~higher~~lower wind and other income tax credits in ~~2021; partially offset by~~

•~~a $47.8 million increase due to higher Evergy Kansas Central and Evergy Metro pre-tax income in 2021.~~2022.

LIQUIDITY AND CAPITAL RESOURCES

Evergy relies primarily upon cash from operations, short-term borrowings, debt and equity issuances and its existing cash and cash equivalents to fund its capital requirements. Evergy's capital requirements primarily consist of capital

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expenditures, payment of contractual obligations and other commitments, and the payment of dividends to shareholders. See the Evergy Companies' combined ~~2020~~2021 Form 10-K for more information on Evergy's sources and uses of cash.

Short-Term Borrowings

As of ~~June 30, 2021,~~March 31, 2022, Evergy had $1.6 billion of available borrowing capacity under its master credit facility. The available borrowing capacity under the master credit facility consisted of ~~$328.3~~$512.3 million for Evergy, Inc., ~~$455.9~~$288.7 million for Evergy Kansas Central, $350.0 million for Evergy Metro and ~~$452.0~~$456.0 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility also supports their issuance of commercial paper. See Note 76 to the consolidated financial statements for more information regarding the master credit facility. Along with cash flows from operations and receivable sales facilities, Evergy generally uses borrowings under its master credit facility and the issuance of commercial paper to meet its day-to-day cash flow

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requirements. Evergy believes that its existing cash on hand and available borrowing capacity under its master credit facility provide sufficient liquidity for its existing capital requirements.

Significant Debt Issuances

See Note 87 to the consolidated financial statements for information regarding significant debt issuances.

~~Equity Issuance~~

See Note 12 to the consolidated financial statements for information regarding Evergy's securities purchase agreement with an affiliate of Bluescape to purchase Evergy's common stock and a warrant that was completed in April 2021.

Pensions

~~Year to date June 30, 2021,~~For the three months ended March 31, 2022, Evergy made pension contributions of ~~$41.7~~$10.0 million. Evergy expects to make additional pension contributions of ~~$68.2~~$88.8 million in ~~2021~~2022 to satisfy ERISA funding requirements and KCC and MPSC rate orders, of which ~~$11.1~~$20.3 million is expected to be paid by Evergy Kansas Central and ~~$57.1~~$68.5 million is expected to be paid by Evergy Metro. Also in ~~2021,~~2022, Evergy expects to make ~~additional~~ post-retirement benefit contributions of ~~$3.8~~$2.2 million.

Debt Covenants

As of ~~June 30, 2021,~~March 31, 2022, Evergy was in compliance with all debt covenants under the master credit facility, the Term Loan Facility and certain debt instruments that contain restrictions that require the maintenance of certain capitalization and leverage ratios. See Note 76 to the consolidated financial statements for more information.

~~Off-Balance Sheet Arrangements~~

Evergy's off-balance sheet arrangements were reported in the Evergy Companies' combined 2020 Form 10-K. See Note 8 to the consolidated financial statements for information regarding Evergy's agreement to unconditionally guarantee certain series of Evergy Missouri West long-term debt in April 2021.

Cash Flows

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


Year to Date June 30		2021		2020
Three Months Ended March 31						Three Months Ended March 31	2022		2021
		(millions)					(millions)
Cash Flows from Operating Activities		$	224.6	$	522.5
Cash Flows from (used in) Operating Activities						Cash Flows from (used in) Operating Activities	$	265.1	$	(28.6)
Cash Flows used in Investing Activities	Cash Flows used in Investing Activities	(918.2)		(601.2)		Cash Flows used in Investing Activities	(531.3)		(475.2)
Cash Flows from Financing Activities	Cash Flows from Financing Activities	607.1		231.7		Cash Flows from Financing Activities	262.2		840.9

Cash Flows from (used in) Operating Activities

Evergy's cash flows from operating activities ~~decreased $297.9~~increased $293.7 million ~~year to date June 30, 2021,~~for the three months ended March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•$~~371.6~~363.7 million of cash payments for net fuel and purchased power costs during the February 2021 winter weather event; ~~and~~

•a $95.5 million increase in cash payments in 2021 due to the timing of payments made to taxing authorities for property tax payments as well as various suppliers and other service providers for goods and services purchased in the ordinary course of business; partially offset by

•$~~89.1~~90.6 million of cash receipts related to non-regulated energy marketing margins earned during the February 2021 winter weather ~~event; and~~event.

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•a $76.2 million increase in cash receipts for retail electric sales in 2021 primarily driven by favorable weather and an increase in weather-normalized commercial and industrial demand, partially offset by a decrease in weather-normalized residential demand.

Cash Flows used in Investing Activities

Evergy's cash flows used in investing activities increased ~~$317.0~~$56.1 million ~~year to date June 30, 2021,~~for the three months ended March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•a ~~$255.5~~$57.0 million increase in additions to property, plant and equipment due to increases at Evergy Kansas Central, Evergy Metro and Evergy Missouri West of ~~$110.7~~$11.0 million, ~~$59.5~~$12.2 million and ~~$84.0~~$37.0 million, respectively, primarily due to increased spending for a variety of capital projects including transmission and distribution projects related to grid resiliency and other infrastructure ~~improvements; and~~

•~~a decrease of $57.1 million in proceeds from COLI investments, primarily from Evergy Kansas Central, due to a higher number of policy settlements in 2020.~~improvements.

Cash Flows from Financing Activities

Evergy's cash flows from financing activities ~~increased $375.4~~decreased $578.7 million ~~year to date June 30, 2021,~~for the three months ended March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•~~A $692.9~~a $747.1 million ~~increase~~decrease in short-term debt borrowings primarily driven ~~by:~~

◦~~a $278.2 million increase~~by higher commercial paper borrowings in 2021, primarily at Evergy Missouri West and Evergy Kansas Central, ~~primarily due~~ to ~~higher cash capital expenditures in 2021 and increased fuel and purchased power~~support the payment of costs ~~associated with~~related to the February 2021 winter weather ~~event;~~

◦~~a $136.0 million increase at Evergy, Inc. primarily due to lower dividends from subsidiaries in 2021;~~event and

◦~~a $109.4 million increase at~~ for the repayment of Evergy Missouri ~~West primarily due~~West's $347.4 million affiliated note payable to ~~higher cash capital expenditures in 2021 and increased fuel and purchased power costs associated with the February 2021 winter weather event; partially offset by~~Evergy prior to the issuance of ~~$500.0 million of Series A, B, and C Senior Notes in April 2021, of which a portion was used to repay outstanding commercial paper balances;~~

•~~$112.5 million of Evergy common stock issued in April 2021 pursuant to a securities purchase agreement with an affiliate of Bluescape; and~~

•a $51.0 million decrease in the repayment of borrowings against cash surrender value of corporate-owned life insurance primarily due to a higher number of policy settlements in 2020; partially offset by

•a $391.8 million decrease in proceeds from long-term debt, net due to Evergy Kansas Central's issuance of $500.0 million of 3.45% first mortgage bonds (FMBs) in April 2020 and Evergy Metro's issuance of $400.0 million of 2.25% Mortgage Bonds in May 2020; partially offset by Evergy Missouri West's ~~issuance of~~ $500.0 million of Series A, B and C Senior Notes in April 2021; and

•a ~~$100.0~~$98.9 million increase in retirements of long-term debt, net primarily due to ~~Evergy's~~Evergy Missouri West's repayment of ~~$350.0~~$100.0 million of ~~4.85%~~3.74% Senior Notes in ~~April 2021;~~March 2022; partially offset by

•a $247.4 million increase in proceeds from long-term debt, net due to Evergy ~~Kansas Central's repayment~~Missouri West's issuance of $250.0 million of ~~5.10% FMBs~~3.75% First Mortgage Bonds in ~~May 2020.~~March 2022.

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EVERGY KANSAS CENTRAL, INC.

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

The below results of operations and related discussion for Evergy Kansas Central is presented in a reduced disclosure format in accordance with General Instruction (H)(2)(a) to Form 10-Q.

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


Year to Date June 30		2021		Change		2020

Three Months Ended March 31								Three Months Ended March 31	2022		Change		2021
		(millions)							(millions)
Operating revenues	Operating revenues	$	1,499.6	$	368.7	$	1,130.9	Operating revenues	$	613.9	$	(287.2)	$	901.1
Fuel and purchased power	Fuel and purchased power	400.5		199.2		201.3		Fuel and purchased power	108.1		(186.7)		294.8
SPP network transmission costs	SPP network transmission costs	143.2		11.5		131.7		SPP network transmission costs	78.7		9.3		69.4
Operating and maintenance	Operating and maintenance	261.0		22.1		238.9		Operating and maintenance	125.7		(5.1)		130.8
Depreciation and amortization	Depreciation and amortization	231.8		6.2		225.6		Depreciation and amortization	119.7		4.2		115.5
Taxes other than income tax	Taxes other than income tax	102.3		4.6		97.7		Taxes other than income tax	54.5		4.2		50.3
Income from operations	Income from operations	360.8		125.1		235.7		Income from operations	127.2		(113.1)		240.3
Other income (expense), net		1.2		7.4		(6.2)
Other expense, net								Other expense, net	(8.6)		(5.4)		(3.2)
Interest expense	Interest expense	80.1		(7.3)		87.4		Interest expense	40.9		0.6		40.3
Income tax expense	Income tax expense	23.1		(103.6)		126.7		Income tax expense	3.6		(13.0)		16.6
Equity in earnings of equity method investees, net of income taxes	Equity in earnings of equity method investees, net of income taxes	1.9		(0.3)		2.2		Equity in earnings of equity method investees, net of income taxes	1.0		0.1		0.9
Net income	Net income	260.7		243.1		17.6		Net income	75.1		(106.0)		181.1
Less: Net income attributable to noncontrolling interests	Less: Net income attributable to noncontrolling interests	6.0		0.3		5.7		Less: Net income attributable to noncontrolling interests	3.1		0.1		3.0
Net income attributable to Evergy Kansas Central, Inc.	Net income attributable to Evergy Kansas Central, Inc.	$	254.7	$	242.8	$	11.9	Net income attributable to Evergy Kansas Central, Inc.	$	72.0	$	(106.1)	$	178.1

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Evergy Kansas Central Utility Gross Margin and MWh Sales

The following table summarizes Evergy Kansas Central's utility gross margin and MWhs sold and provides a reconciliation of utility gross margin to income from operations.


		Revenues and Expenses						MWhs Sold				Revenues and Expenses						MWhs Sold

Year to Date June 30		2021		Change		2020		2021	Change	2020
Three Months Ended March 31											Three Months Ended March 31	2022		Change		2021		2022	Change	2021
Retail revenues	Retail revenues	(millions)						(thousands)			Retail revenues	(millions)						(thousands)
Residential	Residential	$	375.0	$	10.4	$	364.6	3,000	11	2,989	Residential	$	196.1	$	12.7	$	183.4	1,549	11	1,538
Commercial	Commercial	318.8		13.0		305.8		3,291	93	3,198	Commercial	165.2		11.5		153.7		1,637	2	1,635
Industrial	Industrial	188.0		9.1		178.9		2,638	177	2,461	Industrial	100.8		7.8		93.0		1,370	44	1,326
Other retail revenues	Other retail revenues	8.4		(0.5)		8.9		20	(1)	21	Other retail revenues	4.1		0.9		3.2		10	2	8
Total electric retail	Total electric retail	890.2		32.0		858.2		8,949	280	8,669	Total electric retail	466.2		32.9		433.3		4,566	59	4,507
Wholesale revenues	Wholesale revenues	325.9		226.5		99.4		5,337	1,545	3,792	Wholesale revenues	50.1		(222.3)		272.4		2,361	(888)	3,249
Transmission revenues	Transmission revenues	159.6		17.3		142.3		N/A	N/A	N/A	Transmission revenues	87.5		9.6		77.9		N/A	N/A	N/A
Other revenues	Other revenues	123.9		92.9		31.0		N/A	N/A	N/A	Other revenues	10.1		(107.4)		117.5		N/A	N/A	N/A
Operating revenues	Operating revenues	1,499.6		368.7		1,130.9		14,286	1,825	12,461	Operating revenues	613.9		(287.2)		901.1		6,927	(829)	7,756
Fuel and purchased power	Fuel and purchased power	(400.5)		(199.2)		(201.3)					Fuel and purchased power	(108.1)		186.7		(294.8)
SPP network transmission costs	SPP network transmission costs	(143.2)		(11.5)		(131.7)					SPP network transmission costs	(78.7)		(9.3)		(69.4)
Utility gross margin (a)	Utility gross margin (a)	955.9		158.0		797.9					Utility gross margin (a)	427.1		(109.8)		536.9
Operating and maintenance	Operating and maintenance	(261.0)		(22.1)		(238.9)					Operating and maintenance	(125.7)		5.1		(130.8)
Depreciation and amortization	Depreciation and amortization	(231.8)		(6.2)		(225.6)					Depreciation and amortization	(119.7)		(4.2)		(115.5)
Taxes other than income tax	Taxes other than income tax	(102.3)		(4.6)		(97.7)					Taxes other than income tax	(54.5)		(4.2)		(50.3)
Income from operations	Income from operations	$	360.8	$	125.1	$	235.7				Income from operations	$	127.2	$	(113.1)	$	240.3

(a)Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin under Evergy's Results of Operations.

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Evergy Kansas Central's utility gross margin ~~increased $158.0~~decreased $109.8 million ~~year to date June 30, 2021,~~for the three months ended March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•~~$95.0~~a $104.9 million ofdecrease in non-regulated energy marketing margins, primarily due to $96.5 million of margins recognized ~~during~~in 2021 related to the February 2021 winter weather event; and

•a ~~$33.9~~$34.0 million ~~increase due~~decrease related to other impacts from the February 2021 winter weather event driven by higher utility gross margin at Evergy Kansas Central's non-regulated 8% ownership share of JEC due to higher wholesale sales prices and MWhs sold in February 2021; partially offset by

•a ~~$17.3~~$12.2 million increase due to favorable average retail pricing and higher weather-normalized residential, commercial and industrial demand in 2022; and

•a $9.7 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January ~~2021;~~2022.

•~~a $9.1 million increase primarily due to higher retail sales driven by an increase in~~ ~~weather-normalized commercial and industrial demand partially offset by a decrease in weather-normalized residential demand; and~~

•~~a $2.6 million increase related to Evergy Kansas Central's TDC rider in 2021; partially offset by~~

•~~a $10.1 million decrease in revenues due to rate reductions beginning January 1, 2021 in Kansas to reflect the exemption of Evergy Kansas Central from Kansas corporate income taxes.~~

Evergy Kansas Central Operating and Maintenance

Evergy Kansas Central's operating and maintenance expense ~~increased $22.1~~decreased $5.1 million ~~year to date June 30, 2021,~~for the three months ended March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•a ~~$14.4~~$3.4 million ~~increase~~decrease in ~~various administrative~~transmission and ~~general~~distribution operating and maintenance expenses ~~primarily~~ driven by lower employee labor and contractor costs primarily due to an increase in transmission and distribution capital projects and a $1.3 million decrease in vegetation management costs ~~billed for common use assets from Evergy Metro~~ in ~~2021 primarily related to software assets placed into service in the third quarter of 2020;~~

•~~an $8.4 million increase in plant operating and maintenance expense at fossil-fuel generating units primarily due to a $9.2 million increase from a major maintenance outage at JEC in 2021;~~2022;

•$~~4.0~~2.7 million of costs recorded in 2021 associated with executive transition, including inducement bonuses, severance agreements and other transition expenses; and

•a $1.7 million decrease in costs related to non-regulated energy marketing margins recognized during the February 2021 winter weather event;

•~~$3.7 million of costs associated with executive transition in 2021, including inducement bonuses, severance agreements and other transition expenses; and~~

•a $1.4 million increase in property insurance expense due to a lower annual refund of nuclear insurance premiums received by Evergy Kansas Central in 2021 related to its ownership interest in Wolf Creek; partially offset by

•~~an $11.9~~a $2.2 million decrease in voluntary severance expenses due to an $8.6 million decrease related to Evergy voluntary exit programs in 2020 and a $3.3 million decrease in voluntary severance expenses related to Wolf Creek voluntary exit programs in 2020; and

•a $2.5 million decrease in credit loss expense primarily due to increases made to the allowance for credit losses in 2020 related to the economic slowdown resulting from the COVID-19 pandemic and a lower level of write-offs in 2021.

~~Evergy Kansas Central Taxes Other Than Income Tax~~

~~Evergy Kansas Central's taxes other than income tax increased $4.6 million year to date June 30, 2021, compared to the same period in 2020; driven by an~~ increase in ~~property taxes in Kansas primarily due to higher assessed property tax values.~~certain labor and employee benefits expenses.

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Evergy Kansas Central Depreciation and Amortization

Evergy Kansas Central's depreciation and amortization expense increased $4.2 million for the three months ended March 31, 2022, compared to the same period in 2021, primarily driven by higher capital additions in 2022.

Evergy Kansas Central Taxes Other Than Income ~~(Expense),~~Tax

Evergy Kansas Central's taxes other than income tax increased $4.2 million for the three months ended March 31, 2022, compared to the same period in 2021, driven by an increase in property taxes in Kansas primarily due to higher assessed property tax values.

Evergy Kansas Central Other Expense, Net

Evergy Kansas Central's other expense, net ~~decreased $7.4~~increased $5.4 million ~~year to date June 30, 2021,~~for the three months ended March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•a ~~$4.8~~$2.0 million ~~decrease~~increase due to ~~higher~~lower equity AFUDC primarily ~~due to lower~~driven by higher short-term debt ~~and higher construction work in progress~~ balances in ~~2021;~~

•~~a $2.2 million decrease due to recording higher COLI benefits in 2021; and~~2022;

•$1.4 million of other income recorded in 2021 related to a contract termination ~~fee.~~

~~Evergy Kansas Central Interest Expense~~

~~Evergy Kansas Central's interest expense decreased $7.3 million year to date June 30, 2021, compared to the same period in 2020, primarily driven by:~~

•feesa $2.2 million net decrease due to the repayment of Evergy Kansas Central's $250.0 million of 5.10% FMBs in May 2020, which decreased interest expense by $6.9 million, partially offset by a $4.7 million increase due to the issuance of Evergy Kansas Central's $500.0 million of 3.45% FMBs in April 2020;; and

•a ~~$4.6~~$1.0 million ~~decrease in interest on short-term borrowings primarily~~increase due to ~~lower commercial paper balances and weighted-average interest rates on borrowings in 2021.~~higher pension non-service costs.

Evergy Kansas Central Income Tax Expense

Evergy Kansas Central's income tax expense decreased ~~$103.6~~$13.0 million ~~year to date June 30, 2021,~~for the three months ended March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•a ~~$109.0 million decrease related to the revaluation of deferred income tax assets and liabilities in the second quarter of 2020 due to the change in the Kansas corporate income tax rate;~~

•~~a $13.4 million decrease as a result of the state of Kansas exempting certain public utilities, including Evergy Kansas Central, from Kansas corporate income tax beginning in January 2021;~~

•~~a $10.5~~$24.2 million decrease due to ~~flow-through items primarily driven~~lower pre-tax income in 2022; partially offset by ~~higher amortization of excess deferred income taxes; and~~

•a $5.8 million ~~decrease~~increase due to ~~higher~~lower wind and other income tax credits in ~~2021; partially offset by~~2022; and

•a ~~$37.0~~$2.4 million increase due to ~~higher Evergy Kansas Central~~a decrease in the amortization of flow-through items driven by a decrease in pre-tax income in ~~2021.~~the first quarter of 2022.

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EVERGY METRO, INC.

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

The below results of operations and related discussion for Evergy Metro is presented in a reduced disclosure format in accordance with General Instruction (H)(2)(a) to Form 10-Q.

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


Year to Date June 30		2021		Change		2020
Three Months Ended March 31								Three Months Ended March 31	2022		Change		2021
		(millions)							(millions)
Operating revenues	Operating revenues	$	954.9	$	155.1	$	799.8	Operating revenues	$	422.5	$	(93.7)	$	516.2
Fuel and purchased power	Fuel and purchased power	356.1		162.3		193.8		Fuel and purchased power	132.5		(108.7)		241.2
Operating and maintenance	Operating and maintenance	175.1		(29.3)		204.4		Operating and maintenance	78.1		(15.3)		93.4
Depreciation and amortization	Depreciation and amortization	156.8		(7.4)		164.2		Depreciation and amortization	82.9		4.5		78.4
Taxes other than income tax	Taxes other than income tax	64.6		3.4		61.2		Taxes other than income tax	33.4		1.4		32.0
Income from operations	Income from operations	202.3		26.1		176.2		Income from operations	95.6		24.4		71.2
Other expense, net	Other expense, net	(8.1)		3.3		(11.4)		Other expense, net	(6.3)		(2.0)		(4.3)
Interest expense	Interest expense	55.4		(0.9)		56.3		Interest expense	27.0		(1.3)		28.3
Income tax expense (benefit)		17.2		37.2		(20.0)
Income tax expense								Income tax expense	7.7		2.6		5.1
Net income	Net income	$	121.6	$	(6.9)	$	128.5	Net income	$	54.6	$	21.1	$	33.5

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Evergy Metro Utility Gross Margin and MWh Sales

The following table summarizes Evergy Metro's utility gross margin and MWhs sold and provides a reconciliation of utility gross margin to income from operations.


		Revenues and Expenses						MWhs Sold				Revenues and Expenses						MWhs Sold
Year to Date June 30		2021		Change		2020		2021	Change	2020

Three Months Ended March 31											Three Months Ended March 31	2022		Change		2021		2022	Change	2021
Retail revenues	Retail revenues	(millions)						(thousands)			Retail revenues	(millions)						(thousands)
Residential	Residential	$	296.1	$	(34.9)	$	331.0	2,638	49	2,589	Residential	$	159.9	37.7		$	122.2	1,383	(28)	1,411
Commercial	Commercial	320.6		(24.2)		344.8		3,523	132	3,391	Commercial	173.6		41.1		132.5		1,809	11	1,798
Industrial	Industrial	56.0		(7.0)		63.0		809	(12)	821	Industrial	28.8		6.5		22.3		399	3	396
Other retail revenues	Other retail revenues	4.9		(1.3)		6.2		36	1	35	Other retail revenues	2.6		0.5		2.1		17	—	17
Total electric retail	Total electric retail	677.6		(67.4)		745.0		7,006	170	6,836	Total electric retail	364.9		85.8		279.1		3,608	(14)	3,622
Wholesale revenues	Wholesale revenues	213.3		206.3		7.0		1,743	(920)	2,663	Wholesale revenues	7.7		(192.8)		200.5		1,448	245	1,203
Transmission revenues	Transmission revenues	8.5		1.6		6.9		N/A	N/A	N/A	Transmission revenues	5.4		1.4		4.0		N/A	N/A	N/A
Other revenues	Other revenues	55.5		14.6		40.9		N/A	N/A	N/A	Other revenues	44.5		11.9		32.6		N/A	N/A	N/A
Operating revenues	Operating revenues	954.9		155.1		799.8		8,749	(750)	9,499	Operating revenues	422.5		(93.7)		516.2		5,056	231	4,825
Fuel and purchased power	Fuel and purchased power	(356.1)		(162.3)		(193.8)					Fuel and purchased power	(132.5)		108.7		(241.2)
Utility gross margin (a)	Utility gross margin (a)	598.8		(7.2)		606.0					Utility gross margin (a)	290.0		15.0		275.0
Operating and maintenance	Operating and maintenance	(175.1)		29.3		(204.4)					Operating and maintenance	(78.1)		15.3		(93.4)
Depreciation and amortization	Depreciation and amortization	(156.8)		7.4		(164.2)					Depreciation and amortization	(82.9)		(4.5)		(78.4)
Taxes other than income tax	Taxes other than income tax	(64.6)		(3.4)		(61.2)					Taxes other than income tax	(33.4)		(1.4)		(32.0)
Income from operations	Income from operations	$	202.3	$	26.1	$	176.2				Income from operations	$	95.6	$	24.4	$	71.2

(a)Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin under Evergy's Results of Operations.

Evergy Metro's utility gross margin ~~decreased $7.2~~increased $15.0 million ~~year to date June 30, 2021,~~for the three months ended March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven ~~by:~~

•~~an $11.4~~by $12.5 million ~~decrease due to~~of impacts from the February 2021 winter weather event primarily ~~driven by~~due to jurisdictional allocation differences currently present between Evergy Metro's fuel recovery mechanisms in

~~Table of Contents~~

Missouri and Kansas regarding its refund to customers for the net increase in wholesale revenues in February ~~2021; and~~2021.

•~~a $4.1 million decrease in revenues due to a rate reduction beginning January 1, 2021 in Kansas to reflect Evergy Metro's exemption from Kansas corporate income taxes; partially offset by~~

•~~an $8.3 million increase primarily due to higher retail sales driven by favorable weather (heating degree days increased by 4% and cooling degree days increased by 10%).~~

Evergy Metro Operating and Maintenance

Evergy Metro's operating and maintenance expense decreased ~~$29.3~~$15.3 million ~~year to date June 30, 2021,~~for the three months ended March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•a $9.1 million decrease in voluntary severance expenses due to a $5.8 million decrease related to Evergy voluntary exit programs in 2020 and a $3.3 million decrease in voluntary severance expenses related to Wolf Creek voluntary exit programs in 2020;

•a $7.8 million decrease in various administrative and general operating and maintenance expenses primarily driven by an increase in costs billed for common use assets to Evergy Kansas Central in 2021 primarily related to software assets placed into service in the third quarter of 2020;

•~~a $4.4~~$4.9 million decrease in credit loss expense primarily due to ~~increases made to~~a reduction in the allowance for credit losses recorded in ~~2020 related to~~2022 as result of improvements in the ~~economic slowdown resulting from the COVID-19 pandemic~~aging of accounts receivable for certain customers;

•a $4.4 million decrease in certain labor and ~~a lower level of write-offs in 2021;~~employee benefits expenses; and

•a $1.7 million decrease in various transmission and distribution operating and maintenance expenses primarily due to lower contractor costs primarily driven by a higher mix of transmission capital projects in 2021 and a $0.7 million decrease in vegetation management costs in 2021; partially offset by

•$~~2.4~~1.8 million of costs recorded in 2021 associated with executive transition, ~~in 2021,~~ including inducement bonuses, severance agreements and other transition ~~expenses; and~~expenses.

•~~a $1.3~~Evergy Metro Depreciation Expense

Evergy Metro's depreciation and amortization expense increased $4.5 million ~~increase in property insurance expense due~~for the three months ended March 31, 2022, compared to ~~a lower annual refund of nuclear insurance premiums received~~the same period in 2021, primarily driven by ~~Evergy Metro related to its ownership interest~~higher capital additions in ~~Wolf Creek.~~2022.

Evergy Metro Other Expense, Net

Evergy Metro's other expense, net ~~decreased $3.3~~increased $2.0 million ~~year to date June 30, 2021,~~for the three months ended March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by by:

•a ~~$4.7~~$2.1 million increase due to higher pension non-service costs; and

•$1.2 million of other income recorded in 2021 related to contract termination fees; partially offset by

•a $1.3 million decrease due to higher equity AFUDC primarily ~~due to~~driven by lower short-term debt and higher construction work in progress balances in ~~2021.~~2022.

~~Evergy Metro Interest Expense~~

Evergy Metro's interest expense decreased $0.9 million year to date June 30, 2021, compared to the same period in 2020, primarily driven by a $0.7 million increase in debt AFUDC primarily due to higher construction work in progress balances in 2021.

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Evergy Metro Income Tax Expense

Evergy Metro's income tax expense increased ~~$37.2~~$2.6 million ~~year to date June 30, 2021,~~for the three months ended March 31, 2022, compared to the same period in ~~2020,~~2021, primarily driven by:

•a ~~$32.2 million increase related to the revaluation of deferred income tax assets and liabilities in the second quarter of 2020 due to the change in the Kansas corporate income tax rate; and~~

•~~a $9.6~~$5.2 million increase due to higher ~~Evergy Metro~~ pre-tax income in ~~2021;~~2022; partially offset by

•a ~~$5.7~~$1.4 million decrease ~~as a result~~due to an increase in the amortization of flow-through items driven by an increase in pre-tax income in the ~~state~~first quarter of ~~Kansas exempting certain public utilities, including Evergy Metro, from Kansas corporate income tax beginning in 2021.~~2022; and

•a $1.1 million decrease due to higher deductions for stock compensation in 2022.

~~Table of Contents~~

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 ~~2020~~2021 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 most recently filed annual report on Form 10-K. Therefore, these interim period disclosures should be read in conjunction with Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk included in the Evergy Companies' combined ~~2020~~2021 Form 10-K.

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) and 15d-15(e) under the Exchange Act). This evaluation was conducted under the supervision, and with the participation, of Evergy's management, including the chief executive officer and chief financial officer, and Evergy's disclosure committee. Based upon this evaluation, the chief executive officer and chief financial officer of Evergy have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy were effective at a reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There has been no change in Evergy’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended ~~June 30, 2021,~~March 31, 2022, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

EVERGY KANSAS CENTRAL

Disclosure Controls and Procedures

Evergy Kansas Central carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). This evaluation was conducted under the supervision, and with the participation, of Evergy Kansas Central's management, including the chief executive officer and chief financial officer, and Evergy Kansas Central's disclosure committee. Based upon this evaluation, the chief executive officer and chief financial officer of Evergy Kansas Central have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy Kansas Central were effective at a reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There has been no change in Evergy Kansas Central’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended ~~June 30, 2021,~~March 31, 2022, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

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EVERGY METRO

Disclosure Controls and Procedures

Evergy Metro carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). This evaluation was conducted under the supervision, and with the participation, of Evergy Metro's management, including the chief executive officer and chief financial officer, and Evergy Metro's disclosure committee. Based upon this evaluation, the chief executive officer and chief financial officer of Evergy Metro have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy Metro were effective at a reasonable assurance level.

~~Table of Contents~~

Changes in Internal Control Over Financial Reporting

There has been no change in Evergy Metro’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended ~~June 30, 2021,~~March 31, 2022, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

~~Table of Contents~~

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 4 and 109 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 ~~2020~~2021 Form 10-K for each of Evergy, Evergy Kansas Central and Evergy Metro, as 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. 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 Evergy Kansas Central and Evergy Metro are also risk factors of Evergy.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

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, 2021.~~March 31, 2022.


Issuer Purchases of Equity Securities	Issuer Purchases of Equity Securities					Issuer Purchases of Equity Securities
Month	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	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		1,241	$62.12	—	—
June 1 - 30		9,385	$62.15	—	—
January 1 - 31						January 1 - 31	95	$66.80	—	—
February 1 - 28						February 1 - 28	6,173	60.99	—	—
March 1 - 31						March 1 - 31	62,276	60.88	—	—
Total	Total	10,626	$62.15	—	—	Total	68,544	$60.90	—	—

(a) Represents shares Evergy purchased for withholding taxes related to the vesting of performance shares and restricted stock units.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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ITEM 5. OTHER INFORMATION

Annual Shareholder Meeting Results

Evergy's annual meeting of shareholders was held on May 3, 2022. In accordance with the recommendations of the Board, the shareholders (i) elected twelve directors; (ii) approved, on an advisory and non-binding basis, the 2021 compensation of Evergy's named executive officers; (iii) approved the Evergy, Inc. Amended and Restated Long-Term Incentive Plan; and (iv) ratified the appointment of Deloitte & Touche LLP as independent registered public accountants for 2022. The proposals voted upon at the annual meeting, as well as the voting results for each proposal are set forth below.

Item 1 on the Proxy Card. The twelve persons named below were elected, as proposed in the proxy statement, to serve as directors until Evergy's annual meeting in 2023, and until their successors are elected and qualified. The voting regarding the election was as follows:


	Number of Votes
		For	Against	Abstain	Broker Non-Votes
David A. Campbell		176,241,076	2,958,681	403,026	21,311,444
Thomas D. Hyde		174,951,692	4,320,010	331,081	21,311,444
B. Anthony Isaac		166,729,403	12,551,225	322,155	21,311,444
Paul M. Keglevic		177,543,588	1,730,931	328,264	21,311,444
Mary L. Landrieu		177,465,914	1,799,981	336,888	21,311,444
Sandra A.J. Lawrence		171,142,270	8,153,703	306,810	21,311,444
Ann D. Murtlow		177,735,530	1,553,398	313,855	21,311,444
Sandra J. Price		176,741,361	2,545,096	316,326	21,311,444
Mark A. Ruelle		172,531,134	6,715,067	356,582	21,311,444
James Scarola		178,495,238	701,094	406,451	21,311,444
S. Carl Soderstrom Jr.		175,115,732	4,157,286	329,765	21,311,444
C. John Wilder		162,274,737	16,995,693	332,353	21,311,444

Item 2 on the Proxy Card. In an advisory and non-binding "say on pay" vote, shareholders approved the 2021 compensation of Evergy's named executive officers, with the following vote:


Number of Votes
For	Against	Abstain	Broker Non-Votes
168,240,098	10,513,394	849,291	21,311,444

Item 3 on the Proxy Card. Shareholders voted for the approval of the Evergy, Inc. Amended and Restated Long-Term Incentive Plan with the following vote:


Number of Votes
For	Against	Abstain	Broker Non-Votes
168,294,356	10,609,911	698,516	21,311,444

The material terms of the Evergy, Inc. Amended and Restated Long-Term Incentive Plan are described under "Proposal 3 - Approval of the Evergy, Inc. Amended and Restated Long-Term Incentive Plan" in Evergy's Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on March 23, 2022, and are incorporated herein by reference. This description of the Evergy, Inc. Amended and Restated Long-Term Incentive Plan is qualified in its entirety by the full text of the Evergy, Inc. Amended and Restated Long-Term Incentive Plan, incorporated herein by reference as Exhibit 10.5.

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Item 4 on the Proxy Card. Shareholders voted for the ratification and confirmation of the appointment of Deloitte & Touche LLP as Evergy's independent registered public accounting firm for 2022, with the following vote:


Number of Votes
For	Against	Abstain	Broker Non-Votes
195,673,096	4,851,882	389,249	0

Available Information

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ITEM 6. EXHIBITS

Exhibit

Number

Description of Document

Registrant

4.1

~~Note Purchase Agreement,~~First Mortgage Indenture and Deed of Trust, dated ~~April 20, 2021, among~~as of March 1, 2022, between Evergy Missouri West, ~~Evergy~~Inc. and ~~the purchasers party thereto~~UMB Bank, N.A., as trustee. (Exhibit 4.1 to Evergy's Current Report on Form 8-K filed on ~~April 20, 2021)~~March 7, 2022).

Evergy

4.2

First Supplemental Indenture dated as of March 1, 2022 , between Evergy Missouri West, Inc. and UMB Bank N.A., as trustee. (Exhibit 4.2 to Evergy's Current Report on Form 8-K filed on March 7, 2022).

Evergy

10.1

~~Registration Rights~~Term Loan Credit Agreement, dated ~~April 14, 2021,~~as of February 25, 2022, by and ~~between~~among Evergy, Inc., Wells Fargo Bank, National Association, as Administrative Agent, and ~~BEP Special Situations V LLC~~the lenders referred to therein (Exhibit 10.1 to Evergy's Current Report on Form 8-K filed on ~~April 14, 2021)~~February 28, 2022).

Evergy

10.2

~~Warrant No. 1 issued by~~Form of Evergy, Inc. ~~on April 14, 2021~~2022 Performance-Based Restricted Stock Unit Agreement. (Exhibit ~~10.2~~10.19 to Evergy's Form ~~8-K filed on April 14,~~10-K for the period ended December 31, 2021).

Evergy
Evergy Kansas Central
Evergy Metro

10.3

~~Guaranty Agreement, dated April 20, 2021, issued by Evergy in favor of the holders~~Form of Evergy, ~~Missouri West,~~ Inc.~~'s 2.86%~~ ~~Series A~~ ~~Senior Notes due 2031, 3.01%~~ ~~Series B~~ ~~Senior Notes due 2033 and 3.21%~~ ~~Series C~~ ~~Senior Notes due 2033~~ 2022 Time-Based Restricted Stock Unit Agreement. (Exhibit ~~10.1~~10.20 to Evergy's ~~Current Report on~~ Form ~~8-K filed on April 20,~~10-K for the period ended December 31, 2021).

Evergy
Evergy Kansas Central
Evergy Metro

10.4

~~Guaranty Agreement, dated April 20, 2021, issued by~~ Evergy, ~~in favor of the holders of Evergy Missouri West,~~ Inc.~~'s 3.49%~~ ~~Senior Notes, Series A,~~ ~~due 2025, 4.06% Senior Notes, Series B,~~ ~~due 2033 and 4.74% Senior Notes, Series C,~~ ~~due 2043~~ 2022 Annual Incentive Plan. (Exhibit ~~10.2~~10.21 to Evergy's ~~Current Report on~~ Form ~~8-K filed on April 20,~~10-K for the period ended December 31, 2021).

Evergy
Evergy Kansas Central
Evergy Metro

10.5

~~Guaranty Agreement, dated April 20, 2021, issued by~~ Evergy, ~~in favor of the holders of Evergy Missouri West,~~ Inc.~~'s 3.74% Senior Notes due~~ Long-Term Incentive Plan, as amended and restated effective May 3, 2022 ~~(Exhibit 10.3~~(Appendix C to Evergy's ~~Current Report~~Proxy Statement on ~~Form 8-K~~Schedule 14A filed on ~~April 20, 2021)~~March 23, 2022).

Evergy

31.1

Rule 13a-14(a)/15d-14(a) Certification of David A. Campbell.

Evergy

31.2

Rule 13a-14(a)/15d-14(a) Certification of Kirkland B. Andrews.

Evergy

31.3

Rule 13a-14(a)/15d-14(a) Certification of David A. Campbell.

Evergy Metro

31.4

Rule 13a-14(a)/15d-14(a) Certification of Kirkland B. Andrews.

Evergy Metro

31.5

Rule 13a-14(a)/15d-14(a) Certification of David A. Campbell.

Evergy Kansas Central

31.6

Rule 13a-14(a)/15d-14(a) Certification of Kirkland B. Andrews.

Evergy Kansas Central

32.1

Section 1350 Certifications.

Evergy

32.2

Section 1350 Certifications.

Evergy Metro

32.3

Section 1350 Certifications.

Evergy Kansas Central

101.INS

***

XBRL Instance Document.

n/a

101.SCH

Inline XBRL Taxonomy Extension Schema Document.

Evergy
Evergy Kansas Central
Evergy Metro

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

Evergy
Evergy Kansas Central
Evergy Metro

Table of Contents

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.

Evergy
Evergy Kansas Central
Evergy Metro

~~Table of Contents~~

101.LAB

Inline XBRL Taxonomy Extension Labels Linkbase Document.

Evergy
Evergy Kansas Central
Evergy Metro

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

Evergy
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.

** Furnished and shall not be deemed filed for the purpose of Section 18 of the Exchange Act. Such document shall not be incorporated by reference into any registration statement or other document pursuant to the Exchange Act or the Securities Act of 1933, as amended, unless otherwise indicated in such registration statement or other document.

*** The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

+ Indicates management contract or compensatory plan or arrangement.

Copies of any of the exhibits filed with the SEC in connection with this document may be obtained from Evergy, Evergy Kansas Central or 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.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc. have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.


		EVERGY, INC.

Dated:	~~August~~May 4, ~~2021~~2022	By: /s/ Kirkland B. Andrews
		(Kirkland B. Andrews)
		(Executive Vice President and Chief Financial Officer)


		EVERGY KANSAS CENTRAL, INC.

Dated:	~~August~~May 4, ~~2021~~2022	By: /s/ Kirkland B. Andrews
		(Kirkland B. Andrews)
		(Executive Vice President and Chief Financial Officer)


		EVERGY METRO, INC.

Dated:	~~August~~May 4, ~~2021~~2022	By: /s/ Kirkland B. Andrews
		(Kirkland B. Andrews)
		(Executive Vice President and Chief Financial Officer)

7566


	Pension Benefits						Post-Retirement Benefits
Three Months Ended June 30, 2021	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	21.2	$	7.5	$	13.7	$	0.9	$	0.4	$	0.5
Interest cost	21.3		10.4		10.8		1.9		1.0		0.9
Expected return on plan assets	(26.8)		(13.5)		(14.4)		(2.2)		(1.5)		(0.6)
Prior service cost	0.5		0.5		0		0.2		0.1		(0.2)
Recognized net actuarial (gain)/loss	14.7		9.5		11.1		0.3		0.1		(0.1)

Net periodic benefit costs before regulatory adjustment and intercompany allocations	30.9		14.4		21.2		1.1		0.1		0.5
Regulatory adjustment	6.6		0.1		1.6		(1.3)		(0.8)		0
Intercompany allocations	0		0.8		(6.3)		0		0		(0.1)
Net periodic benefit costs (income)	$	37.5	$	15.3	$	16.5	$	(0.2)	$	(0.7)	$	0.4


	Pension Benefits						Post-Retirement Benefits
Three Months Ended June 30, 2020	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	19.5	$	6.8	$	12.7	$	0.7	$	0.3	$	0.4
Interest cost	24.5		11.7		12.4		2.3		1.2		1.1
Expected return on plan assets	(26.7)		(13.3)		(13.9)		(2.3)		(1.6)		(0.6)
Prior service cost	0.5		0.4		0.2		0.1		0.1		0
Recognized net actuarial (gain)/loss	11.3		8.5		11.3		0		0		(0.2)

Net periodic benefit costs before regulatory adjustment and intercompany allocations	29.1		14.1		22.7		0.8		0		0.7
Regulatory adjustment	9.1		0.3		0.7		(1.0)		(0.7)		(0.1)
Intercompany allocations	0		(1.7)		(5.0)		0		0		(0.2)
Net periodic benefit costs (income)	$	38.2	$	12.7	$	18.4	$	(0.2)	$	(0.7)	$	0.4


	Revenues and Expenses						MWhs Sold
Three Months Ended June 30	2021		Change		2020		2021	Change	2020
Retail revenues	(millions)						(thousands)
Residential	$	459.8	$	(16.9)	$	476.7	3,459	(264)	3,723
Commercial	422.5		33.8		388.7		4,170	316	3,854
Industrial	150.0		10.7		139.3		2,073	174	1,899
Other retail revenues	9.5		0.4		9.1		35	3	32
Total electric retail	1,041.8		28.0		1,013.8		9,737	229	9,508
Wholesale revenues	70.0		22.7		47.3		3,486	(375)	3,861
Transmission revenues	90.4		8.2		82.2		N/A	N/A	N/A
Other revenues	34.0		(7.4)		41.4		N/A	N/A	N/A
Operating revenues	1,236.2		51.5		1,184.7		13,223	(146)	13,369
Fuel and purchased power	(284.1)		(26.0)		(258.1)
SPP network transmission costs	(73.8)		(4.1)		(69.7)
Utility gross margin (a)	878.3		21.4		856.9
Operating and maintenance	(259.9)		12.8		(272.7)
Depreciation and amortization	(225.2)		(3.6)		(221.6)
Taxes other than income tax	(97.9)		(7.0)		(90.9)
Income from operations	$	295.3	$	23.6	$	271.7
(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.