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

FORM 10-K
FORM 10-K

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


For the fiscal year ended December 31, 2018

2019
or
[  ]☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from _______to_______

logoa05.jpg
  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
(a Missouri Corporation)
1200 Main Street
Kansas City, Missouri  64105
(816) 556-2200
     
001-03523 WESTAR ENERGY,EVERGY KANSAS CENTRAL, INC. 48-0290150
(formerly Westar Energy, Inc.)
(a Kansas corporation)
818 South Kansas Avenue
Topeka, Kansas 66612
(785) 575-6300
(a Kansas Corporation)
818 South Kansas Avenue
Topeka, Kansas 66612
(785) 575-6300
     
000-51873 KANSAS CITY POWER & LIGHT COMPANYEVERGY METRO, INC. 44-0308720
(a Missouri Corporation)
1200 Main Street
Kansas City, Missouri  64105
(816) 556-2200
(formerly Kansas City Power & Light Company)
(a Missouri corporation)
1200 Main Street
Kansas City, Missouri 64105
(816) 556-2200
Each of the following classes or series of securities      Securities registered pursuant to Section 12(b) of the Act is registered on the New York Stock Exchange:
Act:  
RegistrantTitle of each class Trading Symbol(s) Name of each exchange on which registered
Evergy, Inc. common stock Common Stock, without par valueEVRG New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: Westar Energy, Inc. Common Stock $0.01 par value and Kansas City Power & Light Company Common Stock without par value.
     

Securities registered pursuant to Section 12(g) of the Act: Evergy Kansas Central, Inc. Common Stock $0.01 par value and Evergy Metro, Inc. Common Stock without par value.


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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
 
Evergy, Inc.    Yesx☒  Noo☐          
                     
Westar Energy,Evergy Kansas Central, Inc.    Yeso☐  Nox☒          
                     
Kansas City Power & Light CompanyEvergy Metro, Inc.    Yeso☐  Nox☒          
                     
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

 
Evergy, Inc.    Yeso☐  Nox☒          
                     
Westar Energy,Evergy Kansas Central, Inc.    Yeso☐  Nox☒          
                     
Kansas City Power & Light CompanyEvergy Metro, Inc.    Yeso☐  Nox☒          
                     
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.    Yesx☒  Noo☐          
                     
Westar Energy,Evergy Kansas Central, Inc.    Yesx☒  Noo☐          
                     
Kansas City Power & Light CompanyEvergy Metro, Inc.    Yesx☒  Noo☐          
                     
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.YesxNoo
                     
Westar Energy,Evergy, Inc.    Yesx☒  Noo
Kansas City Power & Light CompanyYesxNoo
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to the Form 10-K.
Evergy, Inc.x☐           
                     
Westar Energy,Evergy Kansas Central, Inc.    Yesx☒  No☐           
                     
Kansas City Power & Light CompanyEvergy Metro, Inc.    Yesx☒  No☐           
                     
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
 
Large Accelerated FilerAccelerated FilerNon-accelerated FilerSmaller Reporting CompanyEmerging Growth Company
                     
Evergy, Inc.Large Accelerated Filerx☒Accelerated Filer☐Non-accelerated Filero☐Smaller Reporting Company☐Emerging Growth Companyooo☐ 
                     
Westar Energy,Evergy Kansas Central, Inc.Large Accelerated Filero☐Accelerated Filer☐Non-accelerated Filero☒Smaller Reporting Company☐Emerging Growth Companyxoo☐ 
                     
Kansas City Power & LightEvergy Metro, Inc.Large Accelerated Filer☐Accelerated Filer☐Non-accelerated Filer☒Smaller Reporting Company☐Emerging Growth Company☐ 
o   o   x   o   o  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 
Evergy, Inc.     o☐              
                     
Westar Energy,Evergy Kansas Central, Inc.     o☐              
                     
Kansas City Power & Light CompanyEvergy Metro, Inc.     o☐              
                     
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
Evergy, Inc.    Yeso☐  Nox☒        
                     
Westar Energy,Evergy Kansas Central, Inc.    Yeso☐  Nox☒          
                     
Kansas City Power & Light CompanyEvergy Metro, Inc.    Yeso☐  Nox☒          

The aggregate market value of the voting and non-voting common equity held by non-affiliates of Evergy, Inc. (based on the closing price of its common stock on the New York Stock Exchange on June 30, 2019) was approximately $14,138,041,261. All of the common equity of Evergy Kansas Central, Inc. and Evergy Metro, Inc. is held by Evergy, Inc.

On February 24, 2020, Evergy, Inc. had 226,659,013 shares of common stock outstanding.


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On February 24, 2020, Evergy Kansas Central, Inc. and Evergy Metro, Inc. each had 1 share of common stock outstanding and held by Evergy, Inc.
The aggregate market value of the voting and non-voting common equity held by non-affiliates of Evergy Inc. (based on the closing price of its common stock on the New York Stock Exchange on June 30, 2018) was approximately $15,236,578,926. All of the common equity of Westar Energy,Kansas Central, Inc. and Kansas City Power & Light Company is held by Evergy Metro, Inc.
On February 15, 2019, Evergy, Inc. had 254,630,033 shares of common stock outstanding. 
On February 15, 2019, Westar Energy, Inc. and Kansas City Power & Light Company each had one share of common stock outstanding and held by Evergy, Inc.
Westar Energy, Inc. and Kansas City Power & Light Company meet the conditions set forth in General Instruction (I)(1)(a) and (b) of Form 10-K and are therefore filing this Form 10-K with the reduced disclosure format.
Documents Incorporated by Reference
Portions of the 2019
Documents Incorporated by Reference
Portions of the 2020 annual meeting proxy statement of Evergy, Inc. to be filed with the Securities and Exchange Commission are incorporated by reference in Part III of this report.
 
This combined annual report on Form 10-K is provided by the following registrants: Evergy, Inc. (Evergy), Westar Energy,Evergy Kansas Central, Inc. (Westar Energy)(Evergy Kansas Central) and Kansas City Power & Light Company (KCP&L)Evergy Metro, Inc. (Evergy Metro) (collectively, the Evergy Companies). Information relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other registrants.




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TABLE OF CONTENTS
  
Page
Number
 
Cautionary Statements Regarding Certain Forward-Looking Information
3
 
Glossary of Terms
4
  
PART I
Item 1.
Business
67
Item 1A.
Risk Factors
1314
Item 1B.
Unresolved Staff Comments
22
Item 2.
Properties
23
Item 3.
Legal Proceedings
26
Item 4.
Mine Safety Disclosures
26
PART II
Item 5.
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
27
Item 6.
Selected Financial Data
2928
Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
29
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
54
Item 8.
Financial Statements and Supplementary Data
56
Item 9.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
149147
Item 9A.
Controls and Procedures
149147
Item 9B.
Other Information
152151
PART III
Item 10.
Directors, Executive Officers and Corporate Governance
152151
Item 11.
Executive Compensation
152
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
152
Item 13.
Certain Relationships and Related Transactions, and Director Independence
153
Item 13.
Certain Relationships and Related Transactions, and Director Independence
154
Item 14.
Principal Accounting Fees and Services
154153
PART IV
Item 15.
Exhibits and Financial Statement Schedules
155154
   
 
Signatures
174175



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CAUTIONARY STATEMENTS REGARDING CERTAIN FORWARD-LOOKING INFORMATION
Statements made in this report that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to the expected financial and operational benefits of the merger of Great Plains Energy Incorporated (Great Plains Energy) and Westar Energy that resulted in the creation of Evergy (including cost savings, operational efficiencies and the impact of the merger onour strategic plan, including, without limitation, earnings per share), cost estimates of capital projects,share and dividend growth share repurchases, balance sheettargets, operating and credit ratings, rebates to customers,maintenance expense savings goals and future capital allocation plans; the outcome of regulatory and legal proceedings, employee issuesproceedings; 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," "seeks," "intends," "proposed," "projects," "planned," "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 importantrisks, uncertainties and other factors that could cause actual results to differ materially from the provided forward-looking information. These importantrisks, uncertainties and other factors include: futureinclude, but are not limited to: economic and weather conditions and any related impact on sales, prices and costs; prices and availability of electricity in wholesale markets; market perception of the energy industry and the Evergy Companies; changes in business strategy or operations; the impact of unpredictable federal, state and local political, legislative, judicial and regulatory actions or developments, including deregulation, re-regulation and restructuring of the electric utility industry; decisions of regulators regarding, among other things, customer rates that Westar Energy and KCP&L (or other regulated subsidiariesthe prudency of Evergy) can charge for electricity;operational decisions such as capital expenditures and asset retirements; changes in applicable laws, regulations, rules, principles or practices, or the interpretations thereof, governing tax, accounting and environmental matters, including air and water quality and waste management and disposal; the impact of climate change, including increased frequency and severity of significant weather events and reduced demand for coal-based energy; prices and availability of electricity in wholesale markets; market perception of the energy industry and 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; the impact of climate change, including reduced demand for coal-based energy because of actual or perceived climate impacts and the development of alternate energy sources; 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 terrorist acts, including cyber terrorism; ability to carry out marketing and sales plans; weather conditions, including weather-related damage and the impact on sales, prices and costs; cost, availability, quality and timely provision of equipment, supplies, labor and fuel; the inherent uncertainties in estimating the effects of weather, economic conditions, climate change and other factors on customer consumption and financial results; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; delays in the anticipated in-service dates and cost increases of generation, transmission, distribution or other projects; the Evergy Companies' ability to successfully 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 increased 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 our strategic plan, financial results or operations; the possibility that the expected value creation from the merger of Great Plains Energy Incorporated (Great Plains Energy) and Evergy Kansas Central that resulted in the creation of Evergy will not be realized, or will not be realized within the expected time period; difficulties related to the integration, including the diversion of the two companies; disruption from the merger making it more difficult to maintainmanagement time; difficulties in maintaining relationships with customers, employees, regulators or suppliers; disruption related to the diversionrebranding of management time;the Evergy Companies, including the impact of the rebranding on receipt of customer payments; and other risks and uncertainties.
This list of factors is not all-inclusive because it is not possible to predict all factors. Part I, Item 1A, Risk Factors included in this report should be carefully read for further understanding of potential risks for the Evergy Companies. Other sections of this report and other periodic reports filed by the Evergy Companies with the Securities and Exchange Commission (SEC) should also be read for more information regarding risk factors. Each forward-looking statement speaks only as of the date of the particular statement. The Evergy Companies undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.otherwise, except as required by law.

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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. Such reports are accessible at no charge and are made available as soon as reasonably practical after such material is filed with or furnished to the SEC.
Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations tab on their website, www.evergy.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on Evergy's website is not part of this document.
GLOSSARY OF TERMS
The following is a glossary of frequently used abbreviations or acronyms that are found throughout this report.
Abbreviation or Acronym Definition
   
ACEAffordable Clean Energy
AEP American Electric Power Company, Inc.
AFUDC Allowance for Funds Used During Construction
Amended Merger Agreement Amended and Restated Agreement and Plan of Merger, dated as of July 9, 2017, by and among Great Plains Energy, Westar Energy,Evergy Kansas Central, Monarch Energy Holding, Inc. and King Energy, Inc.
AMT Alternative Minimum Tax
AROAROs Asset Retirement ObligationObligations
ASC Accounting Standards Codification
ASR Accelerated share repurchase
ASU Accounting Standards Update
CCRsBSER Coal combustion residualsBest system of emission reduction
CAA Clean Air Act Amendments of 1990
CCRsCoal combustion residuals
CO2
 Carbon dioxide
COLI Corporate-owned life insurance
CPP Clean Power Plan
CWA Clean Water Act
D.C. CircuitU.S. Court of Appeals for the D.C. Circuit
DOE Department of Energy
EIRR Environmental Improvement Revenue Refunding
ELGEffluent limitations guidelines
EPA Environmental Protection Agency
EPS Earnings per common share
ERISA Employee Retirement Income Security Act of 1974, as amended
ERSPEarnings Review and Sharing Plan
Evergy Evergy, Inc. and its consolidated subsidiaries
Evergy Board Evergy Board of Directors
Evergy Companies Evergy, Westar Energy,Evergy Kansas Central, and KCP&L,Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group

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Abbreviation or AcronymDefinition
Evergy Kansas CentralEvergy Kansas Central, Inc., formerly known as Westar Energy, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Kansas SouthEvergy Kansas South, Inc., formerly known as Kansas Gas and Electric Company, a wholly-owned subsidiary of Evergy Kansas Central
Evergy MetroEvergy Metro, Inc., formerly known as Kansas City Power & Light Company, a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Metro Mortgage IndentureEvergy Metro General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented
Evergy Missouri WestEvergy Missouri West, Inc., formerly known as KCP&L Greater Missouri Operations Company, a wholly-owned subsidiary of Evergy
Evergy Transmission CompanyEvergy Transmission Company, LLC, formerly known as GPE Transmission Holding Company, LLC
Exchange Act The Securities Exchange Act of 1934, as amended
FASB Financial Accounting Standards Board
FERC The Federal Energy Regulatory Commission
FMBsFMB First mortgage bondsMortgage Bond
GAAP Generally Accepted Accounting Principles
GHG Greenhouse gas
GMOKCP&L Greater Missouri Operations Company, a wholly-owned subsidiary of Evergy
GPETHCGPE Transmission Holding Company LLC, a wholly-owned subsidiary of Evergy
Great Plains Energy Great Plains Energy Incorporated
JECJeffrey Energy Center
KCC State Corporation Commission of the State of Kansas
KCP&LKansas City Power & Light Company, a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
KDHE Kansas Department of Health & Environment
KGEKansas Gas and Electric Company, a wholly-owned subsidiary of Westar Energy
King Energy King Energy, Inc., a wholly-owned subsidiary of Evergy
kWh Kilowatt hour
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Abbreviation or AcronymLIBOR Definition
London Interbank Offered Rate
LTISA Long-Term Incentive and Share Award plan
MDNRMissouri Department of Natural Resources
MECGMidwest Energy Consumers Group
MEEIA Missouri Energy Efficiency Investment Act
MMBtuMillions of British thermal units
Monarch Energy Monarch Energy Holding, Inc.
MPSC Public Service Commission of the State of Missouri
MW Megawatt
MWh Megawatt hour
NAAQsNAAQS National Ambient Air Quality Standards
NAV Net Asset Value
NO2
Nitrogen dioxide
NRC Nuclear Regulatory Commission
NSRNew source review
OCIOther comprehensive income
OPCOffice of the Public Counsel
PISA Plant-in service accounting
PMParticulate matter
Prairie Wind Prairie Wind Transmission, LLC, 50% owned by Westar EnergyEvergy Kansas Central
RSU Restricted share unit
RTO Regional transmission organization
SEC Securities and Exchange Commission
SO2
Sulfur dioxide
SPP Southwest Power Pool, Inc.
TCJA Tax Cuts and Jobs Act

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Abbreviation or AcronymDefinition
TCR Transmission Congestion Rights
TFR Transmission formula rate
Transource Transource Energy, LLC and its subsidiaries, 13.5% owned by GPETHC
WACCWeighted average cost of capitalEvergy Transmission Company
VIE Variable interest entity
Westar EnergyWestar Energy, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
WIINWater Infrastructure Improvements for the Nation
Wolf Creek Wolf Creek Generating Station
WOTUSWaters of the United States


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PART I
ITEM 1. BUSINESS
General
Evergy, Inc., Westar Energy,Evergy Kansas Central, Inc. and Kansas City Power & Light CompanyEvergy Metro, Inc. are separate registrants filing this combined annual report on Form 10-K. The terms "Evergy," "Westar Energy,"Evergy Kansas Central," "KCP&L""Evergy Metro" and "Evergy Companies" are used throughout this report. "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Westar Energy""Evergy Kansas Central" refers to Westar Energy,Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "KCP&L""Evergy Metro" refers to Kansas City Power & Light CompanyEvergy Metro, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Westar Energy,Evergy Kansas Central, and KCP&L,Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.
Information in other Items of this report as to which reference is made in this Item 1 is hereby incorporated by reference in this Item 1. The use of terms such as "see" or "refer to" shall be deemed to incorporate into this Item 1 the information to which such reference is made.
EVERGY, INC.
Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries:subsidiaries listed below. In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.
Evergy Kansas Central, Inc. (Evergy Kansas Central), formerly known as Westar Energy, Inc., is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Westar EnergyEvergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South), formerly known as Kansas Gas and Electric Company (KGE).Company.
KCP&LEvergy Metro, Inc. (Evergy Metro), formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers primarily in the states of Missouri and Kansas.
Evergy Missouri West, Inc. (Evergy Missouri West), formerly known as KCP&L Greater Missouri Operations Company, (GMO) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
Evergy Transmission Company, LLC (Evergy Transmission Company), formerly known as GPE Transmission Holding Company, LLC, (GPETHC) 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. GPETHCEvergy Transmission Company accounts for its investment in Transource under the equity method.
Westar EnergyEvergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Westar EnergyEvergy Kansas Central and affiliatessubsidiaries 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). Westar EnergyEvergy Kansas Central accounts for its investment in Prairie Wind under the equity method.
Since the rebranding in September 2019, Evergy assessesKansas Central, Evergy Kansas South, Evergy Metro, and Evergy Missouri West have been conducting business in their respective service territories using the name Evergy. The Evergy Companies assess financial performance and allocatesallocate resources on a consolidated basis (i.e., operates in one segment). Evergy serves approximately 1,588,3001,604,300 customers located in Kansas and Missouri. Customers include approximately 1,392,5001,407,700 residences, 188,700189,600 commercial firms and 7,1007,000 industrials, municipalities and other electric utilities. Evergy is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter.

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The table below summarizes the percentage of Evergy's revenues by customer classification.
2018 2017 20162019 2018 2017
Residential37% 32% 33%37% 37% 32%
Commercial32% 28% 29%35% 32% 28%
Industrial12% 16% 16%12% 12% 16%
Wholesale10% 12% 12%7% 10% 12%
Transmission7% 11% 9%6% 7% 11%
Other2% 1% 1%3% 2% 1%
Total100% 100% 100%100% 100% 100%
The table below summarizes the percentage of Evergy's retail electricity sales by customer class.
2018 2017 20162019 2018 2017
Residential37% 32% 33%36% 37% 32%
Commercial41% 38% 39%43% 41% 38%
Industrial22% 30% 28%21% 22% 30%
Total100% 100% 100%100% 100% 100%
Merger of Great Plains Energy and Westar EnergyEvergy Kansas Central
Evergy was incorporated in 2017 as Monarch Energy Holding, Inc. (Monarch Energy), a wholly-owned subsidiary of Great Plains Energy Incorporated (Great Plains Energy). Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended and Restated Agreement and Plan of Merger, dated as of July 9, 2017, by and among Great Plains Energy, Westar Energy,Evergy Kansas Central, Monarch Energy and King Energy, Inc. (King Energy), a wholly-owned subsidiary of Monarch Energy (Amended Merger Agreement).
On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement. As a result of the mergers, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Westar Energy,Evergy Kansas Central, with Westar EnergyEvergy Kansas Central surviving the merger. Following the completion of these mergers, Westar EnergyEvergy Kansas Central and the direct subsidiaries of Great Plains Energy, including KCP&LEvergy Metro and GMO,Evergy Missouri West, became wholly-owned subsidiaries of Evergy.
The merger was structured as a merger of equals in a tax-free exchange of shares that involved no premium paid or received with respect to either Great Plains Energy or Westar Energy.Evergy Kansas Central. As a result of the closing of the merger transaction, each outstanding share of Great Plains Energy common stock was converted into 0.5981 shares of Evergy common stock and each outstanding share of Westar EnergyEvergy Kansas Central common stock was converted into 1 share of Evergy common stock.
Westar EnergyEvergy Kansas Central was determined to be the accounting acquirer in the merger and thus, the predecessor of Evergy. Therefore, Evergy's consolidated financial statements reflectEvergy had separate operations for the resultsperiod beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of operations of Westar Energy for 2017 and 2016 and the financial position of Westar Energy as of December 31, 2017.merger relate to Evergy. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results of operations from June 4, 2018, the date of the closing of the merger, and thereafter.
See Note 2 to the consolidated financial statements for more information regarding the merger.
Regulation
Westar EnergyEvergy Kansas Central's and KCP&L'sEvergy Metro's Kansas operations are regulated by the State Corporation Commission of the State of Kansas (KCC) and KCP&L'sEvergy Metro's Missouri operations and GMOEvergy Missouri West are regulated by the Public Service Commission of the State of Missouri (MPSC), in each case with respect to retail rates, certain accounting matters, standards of service and, in certain cases, the issuance of securities, certification of facilities and

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service territories. The Evergy
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Companies are also subject to regulation by Thethe Federal Energy Regulatory Commission (FERC) with respect to transmission, wholesale sales and rates and other matters. Evergy has aan indirect 94% ownership interest in Wolf Creek Generating Station (Wolf Creek), which is subject to regulation by the Nuclear Regulatory Commission (NRC) with respect to licensing, operations and safety-related requirements.
The table below summarizes the rate orders in effect for Westar Energy's, KCP&L'sEvergy Kansas Central's, Evergy Metro's and GMO'sEvergy Missouri West's retail rate jurisdictions.
 RegulatorAllowed Return on EquityRate-Making Equity RatioEffective Date
Westar EnergyKCC9.3%51.46%September 2018
KCP&L KansasKCC9.3%49.09%December 2018
KCP&L MissouriMPSC(a)(a)December 2018
GMOMPSC(a)(a)December 2018
 RegulatorAllowed Return on EquityRate-Making Equity RatioEffective Date
Evergy Kansas Central (a)
KCC9.3%51.46%September 2018
Evergy Metro - KansasKCC9.3%49.09%December 2018
Evergy Metro - MissouriMPSC(b)(b)December 2018
Evergy Missouri WestMPSC(b)(b)December 2018
(a) KCP&L'sThe KCC establishes rates for Evergy Kansas Central and GMO'sEvergy Kansas South on a consolidated basis.
(b) Evergy Metro's and Evergy Missouri West's current MPSC rate order does not contain an allowed return on equity or rate-making equity ratio.
Evergy expects its 2020 Kansas and Missouri jurisdictional retail revenues to be approximately 60% and 40%, respectively, based on historical averages of Westar Energy's, KCP&L'sEvergy Kansas Central's, Evergy Metro's and GMO'sEvergy Missouri West's total retail revenues.
See Item 7 MD&A, Critical Accounting Policies section, and Note 5 to the consolidated financial statements for additional information concerning regulatory matters.
Competition
Missouri and Kansas continue to operate on the fully integrated and regulated retail utility model. As a result, the Evergy Companies do not compete with others to supply and deliver electricity in their franchised service territories in exchange for agreeing to have their terms of service regulated by state regulatory bodies. If Missouri or Kansas were to pass and implement legislation authorizing or mandating retail choice, Evergy may no longer be able to apply regulated utility accounting principles to deregulated portions of its operations, which may require a surcharge to recover certain costs from legacy customers or could lead to a write offwrite-off of certain regulatory assets and liabilities.
Evergy competes in the wholesale market to sell power in circumstances when the power it generates is not required for retail customers in its service territory. This competition primarily occurs within the SPP Integrated Marketplace, in which Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West are participants. This marketplace determines which generating units among market participants should run, within the operating constraints of a unit, at any given time for maximum regional cost-effectiveness.
The SPP Integrated Marketplace is similar to other Regional Transmission Organization (RTO) or Independent System Operator (ISO) markets currently operating in other regions of the United States.
Power Supply
Evergy has approximately 14,50014,700 MWs of owned generating capacity and renewable purchased power agreements. Evergy's owned generation and purchased power from others, as a percentage of total MWhs generated and purchased, was approximately 71% and 29%, respectively, for 2018.over the last two years. Evergy purchases power to meet its customers' needs, to satisfy firm power commitments or to meet renewable energy standards. Management believes Evergy will be able to meet its future purchased power demandsneeds due to the coordination of planning and operations in the SPP region and existing power purchase agreements; however, price and availability of power purchases may be impacted during periods of high demand.

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Evergy's total capacity by fuel type, including both owned generating capacity and purchased power agreements, is detailed in the table below.
Fuel TypeEstimated MW CapacityPercent of Total CapacityEstimated MW CapacityPercent of Total Capacity
Coal5,890
40
%5,903
40
%
Natural gas and oil3,991
27
 3,988
27
 
Wind (a)
3,442
24
 3,642
24
 
Uranium1,104
8
 1,104
8
 
Solar, landfill gas and hydroelectric (b)
75
1
 72
1
 
Total capacity14,502
100
%14,709
100
%
(a)MWs are based on nameplate capacity of the wind facility. Includes owned generating capacity of 579 MWs and long-term power purchase agreements of approximately 2,8633,063 MWs of wind generation that expire in 2028 through 2048. See Item 2, Properties, for additional information.
(b) Includes a long-term power purchase agreement for approximately 6660 MWs of hydroelectric generation that expires in 2023.
Evergy's projected peak summer demand for 20192020 is approximately 10,35010,367 MWs. Evergy expects to meet its projected capacity requirements for the foreseeable future with its existing generation assets and power and capacity purchases.
Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West are members of the SPP. The SPP is a FERC-approved RTO with the responsibility to ensure reliable power supply, adequate transmission infrastructure and competitive wholesale electricity prices in the region. As SPP members, Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West are required to maintain a minimum reserve margin of 12%. This net positive supply of capacity is maintained through generation asset ownership, capacity agreements, power purchase agreements and peak demand reduction programs. The reserve margin is designed to support reliability of the region's electric supply.
Fuel
The fuel sources for Evergy's owned generation and purchased power agreements are coal, wind and other renewable sources, uranium and natural gas and oil. The actual 2018 fuel mix and fuel cost in cents per net kilowatt hour (kWh) delivered are outlined in the following table and include full-year 2018 amounts for Westar Energy, KCP&L and GMO.
    Fuel cost in cents per
 
Fuel Mix(a)
 net kWh delivered
 Actual Actual
Fuel2018 2018
Coal55% $2.13
Wind, hydroelectric, landfill gas and solar(b)
23  0.01
Uranium17  0.61
Natural gas and oil5  3.81
   Total100% $1.78
(a) Fuel mix based on percent of net MWhs generated by owned resources and delivered under purchased power agreements.
(b) Fuel cost in cents per net kWh delivered does not include purchased power costs associated with renewable purchased power agreements. The actual 2018 fuel and purchased power cost in cents per net kWh delivered for wind, hydroelectric, landfill gas and solar was $2.87.
Coal
During 2019, Evergy's generating units, including jointly-owned units, are projected to burn approximately 18 million tons of coal. Westar Energy, KCP&L and GMO have entered into coal-purchase contracts with various suppliers in Wyoming's Powder River Basin (PRB), the nation's principal supply region of low-sulfur coal, and with local suppliers. The coal to be provided under these contracts is expected to satisfy approximately 80% of the projected coal requirements for 2019 and approximately 55% for 2020. The
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remainder of the coal requirements is expected to be fulfilled through entering into additional contracts or spot market purchases.
Westar Energy, KCP&L and GMO have also entered into rail transportation contracts with various railroads to transport coal from the PRB and local suppliers to their generating units. The transportation services to be provided under these contracts are expected to satisfy almost all of the projected transportation requirements for 2019 and 2020. The contract rates adjust for changes in railroad costs.
Nuclear Fuel
Westar Energy and KCP&L each owns 47% of Wolf Creek, which is Evergy's only nuclear generating unit. Wolf Creek purchases uranium and has it processed for use as fuel in its reactor. This process involves conversion of uranium concentrates to uranium hexafluoride, enrichment of uranium hexafluoride and fabrication of nuclear fuel assemblies. The owners of Wolf Creek have on hand or under contract all of the uranium, uranium enrichment and conversion services needed to operate Wolf Creek through March 2027. The owners also have under contract all of the uranium fabrication required to operate Wolf Creek through September 2025.
Natural Gas
Natural gas accounted for approximately 8% of the total MMBtu of fuel consumed and approximately 14% of total fuel expense in 2018. From time to time, Evergy may enter into contracts, including the use of derivatives, in an effort to manage the cost of natural gas. For additional information about our exposure to commodity price risks, see Item 7A., Quantitative and Qualitative Disclosures About Market Risk.
Westar Energy maintains natural gas transportation arrangements with Kansas Gas Service and Southern Star Central Gas Pipeline. The Kansas Gas Service agreement has historically expired on April 30 of each year and is renegotiated for an additional one-year term.
Environmental Matters
There have been, political,and management believes there will continue to be, policy, legal and regulatory efforts to influence climate change, such as efforts to reduce greenhouse gas emissions (GHG), impose a tax on emissions and create incentives for low-carbon generation and energy efficiency. These efforts, and climate change itself, have the potential to adversely affect the Evergy Companies' results of operations, financial position and cash flows. See Part I, Item 1A, Risk Factors, for additional information.
The Evergy Companies have taken, and will continue to take, proactive measures to mitigate the impact of climate change on its businesses. For example, the Evergy Companies regularly conduct preparedness exercises for a variety of disruptive events, including storms, which may become more frequent or intense due to climate change. In addition, the Evergy Companies have invested, and will continue to invest, in grid resiliency. Much of the Evergy Companies' infrastructure is aged, and grid resiliency efforts include building additional transmission and distribution lines, replacing aged infrastructure and proactively managing the vegetation that can damage systems during severe weather. The Evergy Companies also monitor water conditions at their generating facilities and focus on water conservation at these facilities to address resource depletion.
Transforming Evergy's Generation Fleet
The Evergy Companies are committed to a long-term strategy to reduce carbon emissions in a cost-effective and reliable manner.manner and are targeting to achieve an 80% reduction of carbon emissions by 2050 from 2005 levels. The trajectory and timing of reaching this goal could be impacted by political, legal and regulatory actions and technological matters. Public attention is currently focused on reducing GHG emissions and closing coal-fired generating units. Diversity of fuel supply has historically proven to provide benefits in terms ofprovided cost and reliability.reliability benefits. In addition, the Evergy Companies must ensure that they prudently utilize the generation assets that regulators have allowed the Evergy Companies to include in rates and avoid "stranding" assets by prematurely closing facilities. The Evergy Companies use an integrated resource plan, which is a detailed analysis that estimates factors that influence the future supply and

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demand for electricity, to inform the manner in which they supply electricity. The integrated resource plan considers forecasts of future electricity demand, fuel prices, transmission improvements, new generating capacity, integration of renewables, energy storage, energy efficiency and demand response initiatives. Strategies that the Evergy Companies have pursued include:
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retiring fossil fuel generation;
developing renewable energy facilities;
collaborating with regulators to offer customers the opportunity to procure electricity produced with renewable resources; and
investing in customer energy efficiency programs.
Since 2005, the Evergy Companies have added over 3,500 megawatts of renewables, while retiring more than 2,400 megawatts of fossil generation. The transition of their generation fleet has allowed the Evergy Companies to reduce carbon emissions by almost 40% since 2005. The Evergy Companies are also committed to transparency. On its website, www.evergyinc.com,www.evergy.com, Evergy provides quantitative and qualitative data regarding various environmental, social and governance matters, including information related to emissions, waste and water. The contentcontents of the website and report isare not incorporated into this filing.
See Note 1415 to the consolidated financial statements for information regarding environmental matters.
WESTAR ENERGY, INC.Fuel
Westar Energy,The fuel sources for Evergy's owned generation and purchased power agreements are coal, wind and other renewable sources, uranium and natural gas and oil. The actual 2019 fuel mix and fuel cost in cents per net kilowatt hour (kWh) delivered are outlined in the following table.
    Fuel cost in cents per
 
Fuel Mix(a)
 
net kWh delivered (b)
 Actual Actual
Fuel2019 2019
Coal50% $2.03
Wind, hydroelectric, landfill gas and solar27  2.36
Uranium18  0.60
Natural gas and oil5  2.91
   Total100% $1.94
(a) Fuel mix based on percent of net MWhs generated by owned resources and delivered under renewable purchased power agreements.
(b) Fuel cost in cents per net kWh delivered includes purchased power costs associated with renewable purchased power agreements.
Coal
During 2020, Evergy's generating units, including jointly-owned units, are projected to use approximately 17 million tons of coal. Evergy Kansas Central, Evergy Metro and Evergy Missouri West have entered into coal-purchase contracts with various suppliers in Wyoming's Powder River Basin (PRB), the nation's principal supply region of low-sulfur coal, and with local suppliers. The coal to be provided under these contracts is expected to satisfy approximately 80% of the projected coal requirements for 2020 and approximately 10% for 2021. The remainder of the coal requirements is expected to be fulfilled through entering into additional contracts or spot market purchases.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West have also entered into rail transportation contracts with various railroads to transport coal from the PRB and local suppliers to their generating units. The transportation services to be provided under these contracts are expected to satisfy almost all of the projected transportation requirements for 2020 and approximately 75% for 2021. The contract rates adjust for changes in railroad costs.

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Nuclear Fuel
Evergy Kansas South and Evergy Metro each owns 47% of Wolf Creek, which is Evergy's only nuclear generating unit. Wolf Creek purchases uranium and has it processed for use as fuel in its reactor. This process involves conversion of uranium concentrates to uranium hexafluoride, enrichment of uranium hexafluoride and fabrication of nuclear fuel assemblies. The owners of Wolf Creek have on hand or under contract all of the uranium, uranium enrichment and conversion services needed to operate Wolf Creek through 2027. The owners also have under contract all of the uranium fabrication required to operate Wolf Creek through September 2025.
Natural Gas
Evergy purchases natural gas for use in its generating units primarily through spot market purchases. From time to time, Evergy also may enter into contracts, including the use of derivatives, in an effort to manage the cost of natural gas. For additional information about our exposure to commodity price risks, see Item 7A., Quantitative and Qualitative Disclosures About Market Risk.
Evergy Kansas Central maintains natural gas transportation arrangements with Kansas Gas Service and Southern Star Central Gas Pipeline. The Kansas Gas Service arrangement has historically expired on April 30 of each year and is renegotiated for an additional one-year term. The Southern Star Central Gas Pipeline arrangement expires based on the generating unit being served with expiration dates from 2022 to 2030.
Evergy Kansas Central, Inc.
Evergy Kansas Central, a Kansas corporation incorporated in 1924 and headquartered in Topeka, Kansas, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity. Westar EnergyEvergy Kansas Central serves approximately 711,600716,200 customers located in central and eastern Kansas. Customers include approximately 620,200624,400 residences, 86,80087,300 commercial firms, and 4,6004,500 industrials, municipalities and other electric utilities. Westar Energy'sEvergy Kansas Central's retail revenues averaged approximately 76% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales, transmission and miscellaneous electric revenues accounted for the remainder of Westar Energy'sEvergy Kansas Central's revenues. Westar EnergyEvergy Kansas Central is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter.
KANSAS CITY POWER & LIGHT COMPANYEvergy Metro, Inc.
KCP&L,Evergy Metro, a Missouri corporation incorporated in 1922 and headquartered in Kansas City, Missouri, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity. KCP&LEvergy Metro serves approximately 549,900558,200 customers located in western Missouri and eastern Kansas. Customers include approximately 485,300493,300 residences, 62,60062,900 commercial firms, and 2,000 industrials, municipalities and other electric utilities. KCP&L'sEvergy Metro's retail revenues averaged approximately 92% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales and miscellaneous electric revenues accounted for the remainder of KCP&L'sEvergy Metro's revenues. KCP&LEvergy Metro is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter. Missouri and Kansas jurisdictional retail revenues for KCP&LEvergy Metro averaged approximately 57%56% and 43%44%, respectively, of total retail revenues over the last three years.
Employees
At December 31, 2018,2019, the Evergy Companies had 4,8324,617 employees, including 2,6522,520 represented by five local unions of the International Brotherhood of Electrical Workers (IBEW). Evergy also has a 94% indirect ownership share in Wolf Creek, which, has 889at December 31, 2019, had 858 employees, including 495477 represented by a local union of the IBEW and a local union of the United Government Security Officers of America (UGSOA). Westar EnergyEvergy Kansas Central has labor agreements with IBEW Locals 304 and 1523, representing power plant and transmission and distribution workers (expires June 30, 2021). KCP&LEvergy Metro has labor agreements with IBEW Local 1613, representing clerical employees (expires March 31, 2021), with IBEW Local 1464, representing transmission and distribution workers (expires January 31, 2021), and with IBEW Local 412, representing power plant workers (expires February 28, 2021). Wolf Creek has labor agreements with IBEW Local 225304 (expires September 20, 2021) and UGSOA Local 252 (expires July 31, 2020).

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Information About Evergy's Executive Officers
Set forth below is information relating to the executive officers of Evergy, Inc. Each executive officer holds the same position with each of Westar Energy,Evergy Kansas Central, Inc., Evergy Metro, Inc., Evergy Kansas City Power & Light Company, Kansas GasSouth, Inc. and Electric Company and KCP&L GreaterEvergy Missouri Operations CompanyWest, Inc. as he or she does with Evergy, Inc. Executive officers serve at the pleasure of the board of directors. There are no family relationships among any of the executive officers, nor any arrangements or understandings between any executive officer and other persons pursuant to which he or she was appointed as an executive officer.
NameAgeCurrent Position(s)Year First Assumed an Officer Position*AgeCurrent Position(s)Year First Assumed an Officer Position
Terry Bassham (a)
58President and Chief Executive Officer200559President and Chief Executive Officer2005
Kevin E. Bryant (b)
43Executive Vice President and Chief Operating Officer200644Executive Vice President and Chief Operating Officer2006
Gregory A. Greenwood (c)
53Executive Vice President, Strategy and Chief Administrative Officer200354Executive Vice President, Strategy and Chief Administrative Officer2003
Anthony D. Somma (d)
55Executive Vice President and Chief Financial Officer200656Executive Vice President and Chief Financial Officer2006
Jerl L. Banning (e)
57Senior Vice President and Chief People Officer201058Senior Vice President and Chief People Officer2010
Heather A. Humphrey (f)
48Senior Vice President, General Counsel and Corporate Secretary2010
Charles A. Caisley (g)
45Senior Vice President, Marketing and Public Affairs and Chief Customer Officer2011
Steven P. Busser (h)
50Vice President - Risk Management and Controller2014
Charles A. Caisley (f)
46Senior Vice President, Marketing and Public Affairs and Chief Customer Officer2011
Heather A. Humphrey (g)
49Senior Vice President, General Counsel and Corporate Secretary2010
Charles L. King (h)
55Senior Vice President and Chief Technology Officer2013
Steven P. Busser (i)
51Vice President - Risk Management and Controller2014
*Denotes the year in which the individual first assumed an officer position with any of Great Plains Energy, Westar Energy, KCP&L, KGE or GMO.
(a)Mr. Bassham was appointed President and Chief Executive Officer of Evergy, Inc. in June 2018. Mr. Bassham served as Chairman of the Board of Great Plains Energy (2013-2018), and had served as Chief Executive Officer of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West since 2012. He has served as President of each company since 2011. He previously served as President and Chief Operating Officer of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West (2011-2012) and as Executive Vice President - Utility Operations of KCP&LEvergy Metro and GMOEvergy Missouri West (2010-2011). He was Executive Vice President - Finance and Strategic Development and Chief Financial Officer of Great Plains Energy (2005-2010) and of KCP&LEvergy Metro and GMOEvergy Missouri West (2009-2010).
(b)Mr. Bryant was appointed Executive Vice President and Chief Operating Officer of Evergy, Inc. in June 2018. Mr. Bryant previously served as Senior Vice President - Finance and Strategy and Chief Financial Officer of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West (2015-2018). He previously served as Vice President - Strategic Planning of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West (2014). He served as Vice President - Investor Relations and Strategic Planning and Treasurer of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West (2013). He served as Vice President - Investor Relations and Treasurer of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West (2011-2013). He was Vice President - Strategy and Risk Management of KCP&LEvergy Metro and GMOEvergy Missouri West (2011) and Vice President - Energy Solutions of KCP&LEvergy Metro (2006-2011) and GMOEvergy Missouri West (2008-2011).
(c)Mr. Greenwood was appointed Executive Vice President, Strategy and Chief Administrative Officer of Evergy, Inc. in June 2018. Mr. Greenwood previously served in the following officer roles for Westar Energy:Evergy Kansas Central: Senior Vice President, Strategy (2011-2018); Vice President, Major Construction Projects (2006-2011); and Treasurer (2003-2006). Mr. Greenwood also served in the following roles for Westar Energy:Evergy Kansas Central: Executive/Senior Director, Corporate Finance (1999-2003); Director, Financial Strategy and Acting Director, Internal Audit (1999-2000); and Director, Financial Strategy (1998-1999). Mr. Greenwood joined Westar EnergyEvergy Kansas Central in 1993.
(d)Mr. Somma was appointed Executive Vice President and Chief Financial Officer of Evergy, Inc. in June 2018. Mr. Somma previously served as Senior Vice President, Chief Financial Officer and Treasurer (2011-2018) for Westar Energy,Evergy Kansas Central, after having been appointed as Treasurer in 2006 and Vice President in 2009. He also served as Executive Director, Generation (2004-2006), Executive Director, Finance (1998-1999) and Director, Corporate Strategy (1996-1998) of Westar Energy,Evergy Kansas Central, after having joined the company in 1994. From 1999 to 2004, Mr. Somma served in various leadership roles with a former affiliate of Westar Energy,Evergy Kansas Central, including Senior Vice President, Finance and Administration, Chief Financial Officer and Secretary.

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(e)Mr. Banning was appointed Senior Vice President and Chief People Officer of Evergy, Inc. in June 2018. Mr. Banning previously served in the following officer roles for Westar Energy:Evergy Kansas Central: Senior Vice President, Operations Support and Administration (2015-2018); Vice President, Human Resources and IT (2014); and Vice President, Human Resources (2010- 2013). Mr. Banning also served as Executive Director of Human Resources for Westar EnergyEvergy Kansas Central (2008-2010).
(f)Mr. Caisley was appointed Senior Vice President, Marketing and Public Affairs and Chief Customer Officer of Evergy, Inc. in June 2018. Mr. Caisley served as Vice President - Marketing and Public Affairs of Great Plains Energy, Evergy Metro and Evergy Missouri West (2011-2018). He was Senior Director of Public Affairs (2008-2011) and Director of Governmental Affairs of Evergy Metro (2007-2008).
(g)Ms. Humphrey was appointed Senior Vice President, General Counsel and Corporate Secretary of Evergy, Inc. in June 2018. Ms. Humphrey previously served as Senior Vice President - Corporate Services and General Counsel of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West (2016-2018). She previously served as General Counsel (2010-2016) and Senior Vice President - Human Resources of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West (2012-2016). She served as Vice President - Human Resources of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West (2010-2012). She was Senior Director of Human Resources and Interim General Counsel of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West (2010) and Managing Attorney of KCP&LEvergy Metro (2007-2010).
(g)(h)Mr. CaisleyKing was appointed Senior Vice President Marketing and Public Affairs and Chief CustomerTechnology Officer of Evergy, Inc. in June 2018. Mr. CaisleyFebruary 2020. He previously served as Senior Vice President, Information Technology and Chief Information Officer (2019) and Vice President, Information Technology and Chief Information Officer (2018-2019) of Evergy, Inc. Prior to that, he served as Vice President - Marketing and Public Affairs of Great Plains Energy, KCP&L and GMO (2011-2018). He wasInformation Technology (2013-2018), as Senior Director of Public Affairs (2008-2011)Information Technology Applications and Delivery (2013) and Director of Governmental AffairsInformation Technology Applications (2011-2013) of KCP&L (2007-2008).Evergy Metro and Evergy Missouri West. Mr. King also served in various roles, including leadership roles, with Dish Network, CenturyLink, Sprint and Accenture.
(h)(i)Mr. Busser was appointed Vice President - Risk Management and Controller of Evergy, Inc. in June 2018. Mr. Busser was appointed Vice President - Risk Management and Controller of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West in 2016. He previously served as Vice President - Business Planning and Controller of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West (2014-2016). He served as Vice President - Treasurer of El Paso Electric Company (2011-2014). Prior to that, he served as Vice President - Treasurer and Chief Risk Officer (2006-2011) and Vice President - Regulatory Affairs and Treasurer (2004-2006) of El Paso Electric Company.
ITEM 1A. RISK FACTORS
Utility Regulatory Risks:
Prices are subject to regulatory reviewestablished by regulators and may not prove adequatebe sufficient to recoverresult in a recovery of costs or provide for a fair return.return on investment.
The prices that the FERC, KCC and MPSC authorize the utility subsidiaries of Evergy Companies are allowed to charge their customers significantly influence theirthe Evergy Companies' results of operations, financial position and cash flows.  These prices are subject to the determination, in large part, of governmental entities, including the MPSC, KCC and FERC.
In general, utilities are allowed to recover in customer rates costs (including a reasonable return on invested capital) that were prudently incurred to provide utility service.service, plus a reasonable return on invested capital.  There can be no assurance, however, that regulators will determine such costs to have been prudently incurred. Further, the amounts approved by the regulators may not be sufficient to allow for a recovery of costs or provide for an adequate return on and of capital investments. Also, amounts that were approved by regulators may be appealed, modified, limited or eliminated by subsequent regulatory or legislative actions. Any decisions made by these regulatorsA failure to recover costs or earn a reasonable return on invested capital could have a material adverse effect on the results of operations, financial condition and cash flows of Evergy and its utility subsidiaries.
The Evergy Companies are also exposed to cost-recovery shortfalls due to the inherent "regulatory lag" in the rate-setting process. This is because utility rates are generally based on historical information and, except for certain situations where regulators allow for recovery of expenses through use of a formula that tracks costs, are not subject to adjustment between rate cases. In connection with the merger, Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro agreed

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to a five-year base rate moratorium in Kansas beginning in December 2018. See Note 2 to the consolidated financial statements for additional information. In addition, effective as of January 1, 2019, KCP&LEvergy Metro and GMOEvergy Missouri West elected into plant-in service accounting (PISA), which, by law, requires each company to keep base rates constant for three years following KCP&L'sEvergy Metro's and GMO'sEvergy Missouri West's last general rate case. See Item 7 Management's Discussioncase and Analysis of Financial Condition and Results of Operations, Executive Summary for additional information on PISA.limits the extent to which prices can increase thereafter. These and other factors may result in under-recovery of costs or failure to earn the authorized return on investment, or both.
Failure to timely recover the full investment costs of capital projects, the impact of renewable energy and energy efficiency programs, other utility costs and expenses due to regulatory disallowances, regulatory lag or other factors
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could lead to lowered credit ratings, reduced access to capital markets, increased financing costs, lower flexibility due to constrained financial resources and increased collateral security requirements or reductions or delays in planned capital expenditures.  In response to competitive, economic, political, legislative, public perception and regulatory pressures, Evergy and itsEvergy's utility subsidiaries may be subject to rate moratoriums, rate refunds, limits on rate increases, lower allowed returns on investments or rate reductions, including phase-in plans designed to spread the impact of rate increases over an extended period for the benefit of customers. Any of these results could have a material adverse effect on the results of operations, financial condition and cash flows of the Evergy Companies.
RegulatoryLegislative and regulatory requirements regarding utility operations may increase costs and may expose the Evergy Companies toresult in compliance penalties or adverse rate consequences.penalties.
FERC, the North American Electric Reliability Corporation (NERC) and SPP have implemented and enforce an extensive set of transmission system reliability, cybersecurity and critical infrastructure protection standards that apply to public utilities.  The MPSC and KCC have the authority to implement utility operational standards and requirements, such as vegetation management standards, facilities inspection requirements and quality of service standards.  In addition, Evergy is also subject to health, safety and other requirements enacted by the Occupational Safety and Health Administration, the Department of Transportation, the Department of Labor and other federal and state agencies.  As discussed more fully under "Operational Risks," the NRC extensively regulates nuclear power plants, including Wolf Creek. The costs of complying with existing, new or modified regulations, standards and other requirements could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.  Furthermore, regulatory changes could result in operational changes that increase costs or adversely impact the Evergy Companies' prospects. In addition, failure to meet quality of service, reliability, cybersecurity, critical infrastructure protection, operational or other standards and requirements could expose the Evergy Companies to penalties, additional compliance costs or adverse rate consequences, any of which could have a material adverse impact on their results of operations, financial position and cash flows.
Environmental Risks:
Costs to comply with environmental laws and regulations, including those relating to GHG emissions, are and may continue to be significant and may adversely impact operations and financial results.
The Evergy Companies are subject to extensive and frequently changingevolving federal, state and local environmental laws, regulations and permit requirements relating to air and water quality, waste management and hazardous substance disposal, protected natural resources (such as wetlands, endangered species and other protected wildlife) and health and safety.  For example, Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West combust large amounts of fossil fuels in the production of electricity, which results in significant emissions of carbon dioxide (CO2) and other GHGs. Federal legislation regulates the emission of GHGs and numerous states and regions have adopted programs to stabilize or reduce GHG emissions. The Environmental Protection Agency (EPA), the Kansas Department of Health and Environment (KDHE) and the Missouri Department of Natural Resources (MDNR) regulate emissions under the Clean Air Act Amendments of 1990 (CAA), water under the Clean Water Act (CWA) and waste management under the Resource Conservation and Recovery Act (RCRA), among other laws and regulations. See Note 1415 to the consolidated financial statements for additional information.
Compliance with these laws, regulations and requirements entailsrequires significant capital and operating resources, and the failure to comply could result in the imposition of substantial penalties, including fines, injunctive relief and other sanctions.  In addition, there is a risk of lawsuits alleging violations of environmental laws, regulations or requirements, claiming creation of a public nuisance or other matters, and seeking injunctions or monetary damages or other relief. Certain federal courts have held that state and local governments and private parties have standing to bring climate change tort suits seeking company-specific emission reductions and damages.

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Environmental permits are subject to periodic renewal, which may result in more stringent permit conditions and limits.  New facilities, or modifications of existing facilities, may require new environmental permits or amendments to existing permits.  Delays in the environmental permitting process, public opposition and challenges, denials of permit applications, limits or conditions imposed in permits and the associated uncertainty may materially adversely affect the cost and timing of projects, and thus materially adversely affect the results of operations, financial position and cash flows of the Evergy Companies. In addition, compliance with environmental laws,
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regulations and requirements could alter the way assets are managed, which in turn could result in retiring assets earlier than expected, recording asset retirement obligations (AROs) or having a regulator disallow recovery of costs that had been prudently incurred in connection with those assets.
Costs of compliance with environmental laws, regulations and requirements, or fines, penalties or negative lawsuit outcomes, if not recovered in rates from customers, could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.  
Financial Risks:
Financial market disruptions or declines in the Evergy Companies' credit ratings may increase financing costs and/orand limit access to the credit markets, which may adversely affect liquidity and financial results.
The Evergy Companies rely on internally generated cash,funds from operations and access to the capital markets and short-term credit markets to fund capital expenditures and for working capital and liquidity. Disruption in capital or credit markets, increases in interest rates, deterioration in the financial condition of the financial institutions on which the Evergy Companies rely, any credit rating downgrade or anydowngrades, a decrease in the market price of Evergy's common stock or a decrease or disappearance in the demand for debt securities issued by the Evergy Companies or subsidiaries could have material adverse effects on the Evergy Companies.  These effects could include, among others: reduced access to capital and increased cost of borrowed funds;funds and collateral requirements; dilution resulting from equity issuances at reduced prices; changes in the type and/or increases in the amount of collateral or other credit support obligations required to be posted with contractual counterparties; increased nuclear decommissioning trust and pension and other post-retirement benefit plan funding requirements; reduced ability to pay dividends or repurchase shares of Evergy common stock;dividends; rate case disallowance of costs of capital; reductions in or delays of capital expenditures; limitationand limitations in or the ability of Evergy to provide credit support for its subsidiaries.  Further, Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro have outstanding tax-exempt bonds that may be put back to the respective issuer at the option of the holder.holders, which could adversely impact liquidity. In addition, market disruption and volatility could have an adverse impact on Evergy's lenders, suppliers and other counterparties or customers, causing them to fail to meet their obligations.
Evergy'sEvergy is a holding company structure could limitand relies on the earnings of its abilitysubsidiaries to pay dividends onmeet its common stock and to service its debtfinancial obligations.
Evergy is a holding company with no significant operations of its own.  The primary source of funds for payment of dividends to its shareholders and its other financial obligations is dividends paid to it by its direct subsidiaries, particularly Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMO.Evergy Missouri West.  Evergy's subsidiaries are separate legal entities and have no obligation to provide Evergy with funds. The ability of Evergy's subsidiaries to pay dividends or make other distributions, and accordingly, Evergy's ability to pay dividends on its common stock and meet its financial obligations, principally depends on the earnings and cash flows, capital requirements and general financial position of its subsidiaries, as well as regulatory factors, financial covenants, general business conditions and other matters.
In addition, the Evergy Companies are subject to certain corporate and regulatory restrictions and financial covenants that could affect their ability to pay dividends.  Under the Federal Power Act, Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West generally can pay dividends only out of retained earnings. In connection with approval of the merger in Missouri, each of KCP&LEvergy Metro and GMOEvergy Missouri West agreed to not pay dividends to Evergy if its credit rating falls below BBB- for S&P Global Ratings or Baa3 for Moody's Investor Services. In connection with approval of the merger in Kansas, each of Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro agreed to not pay dividends to Evergy if (i) the payment would result in an increase in the utility's debt level (excluding short-term debt and debt due within one year) above 60 percent of its total capitalization, absent approval from the KCC or (ii) if its credit rating falls below BBB- for S&P Global Ratings or Baa3 for Moody's Investor Services. As described elsewhere in this Form 10-K, the Evergy Companies are parties to various financing agreements that contain requirementsalso required to maintain a certain financial condition that could restrict the amount

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consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00.1.00, which could restrict the amount of dividends the Evergy Companies are permitted to pay. Evergy cannot guarantee dividends will be paid in the future or that, if paid, dividends will satisfy announced targets or investor expectations or be at the same amount orpaid with the same frequency as in the past.
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In addition, from time to time Evergy has and may guarantee debt obligations of its subsidiaries. Under the financing agreements to which Evergy is a party, a guarantee of debt may be considered indebtedness for purposes of complying with financial covenants that dictate the extent to which Evergy can borrow money, and any guarantee payments could adversely affect Evergy's liquidity and ability to service its own debt obligations.
Increasing costs associated with defined benefit retirement and postretirement plans, health care plans and other employee benefits could adversely affect Evergy's financial position and liquidity.
A substantial number of Evergy's and Wolf Creek's employees participate inEvergy maintains defined benefit retirement and other post-retirement plans.  Former employees also have accrued benefits in definedemployee benefit retirementplans for certain current and other post-retirement plans.former employees. The costs of these plans depend on a number of factors, including the rates of return on plan assets, the level and nature of the provided benefits, discount rates, the interest rates used to measure required minimum funding levels, changes in benefit design, changes in laws or regulations and the amount of any required or voluntary contributions to the plans.  The Evergy Companies have substantial unfunded liabilities under these plans.  Also, if the rate of retirements exceeds planned levels, if these plans experience adverse market returns on investments or if interest rates materially fall, required or voluntary contributions to the plans could be material.  In addition, changes in accounting rules and assumptions related to future costs, returns on investments, interest rates and other actuarial assumptions, including projected retirements, could have a significant adverse impact on the results of operations, financial position and cash flows of the Evergy Companies.
The costs of providing health care benefits to employees and retirees have increased in recent years and may continue to rise in the future. Future legislative changes related to health care could also cause significant changes to benefit programs and costs. The increasing costs associated with health care plans could have a significant adverse impact on the results of operations, financial position and cash flows of the Evergy Companies.
The use of derivative contracts in the normal course of business could result in financial losses that could negatively impact the results of operations, financial position and cash flows of the Evergy Companies.impair liquidity.
The Evergy Companies use derivative instruments, such as swaps, options, futures and forwards, to manage commodity and financial risks.  Losses could be recognized as a result of volatility in the market values of these contracts, if a counterparty fails to perform or if the underlying transactions, which the derivative instruments are intended to hedge, fail to materialize.  In the absence of actively quoted market prices and pricing information from external sources, theThe valuation of these financial instruments can involve management's judgment or the use of estimates. As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these contracts.
Tax legislation and an inability to utilize tax credits could adversely impact the financial results and liquidity of the Evergy Companies.liquidity.
Major tax legislation, known as the Tax Cutslaws and Jobs Act (TCJA), was signed into law in December 2017. The TCJA significantly reforms the Internal Revenue Code of 1986, as amended (IRC), and is generally effective January 1, 2018. The TCJA contains significant changes to federal corporate income taxation, including reducing the federal corporate income tax rate from 35% to 21%, limiting the deduction for net operating losses, eliminating net operating loss carrybacks and eliminating the use of bonus depreciation on new capital investments. The TCJA reduced revenues and internally generated cash flows due to the reduced collection of taxes in customer prices, which couldregulations can adversely affect, theamong other things, financial results, liquidity, and credit ratings and the valuation of the Evergy Companies. There may be other material adverse effects of the legislation,assets, such as causing a reduction in deferred income tax assets, and the financial results and liquidity of Evergy could be adversely affected by the TCJA.
assets. Over the last several years, income tax obligations have been reduced due to the continued use of bonus depreciation provisions that allow for an acceleration of deductions for tax purposes and IRS guidance on tax deductions for repairs. Although the TCJA expands bonus depreciation in general, itThe Tax Cuts and Jobs Act of 2017 (TCJA) eliminates bonus depreciation for regulated utilities on new capital investments. The Evergy Companies regularly assess their future ability to utilize tax benefits, including those in the form of net operating loss, tax credit and other tax carryforwards, that are recorded as deferred income tax assets on its balance sheets to determine whether a valuation allowance is necessary. A reduction in, or disallowance of, these tax benefits resulting from a legislative change or adverse determination by a taxing jurisdiction could have an adverse impact on the financial results and liquidity of the
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Evergy Companies. Additionally, changes in corporate tax rates or policy changes, such as those resulting from the TCJA, as well as any inability to generate enough taxable income in the future to utilize all tax benefits before they expire, could have an adverse impact on the financial results and liquidity of the Evergy Companies.

In addition, the Evergy Companies construct and operate wind farmsrenewable energy facilities that generate production tax credits that reduce federal income tax obligations. The amount of production tax credits is dependent on several factors, including the levelamount of electricity output generated by wind farmsproduced and the applicable tax credit rate. A variety of operating and economic parameters, including transmission constraints, adverse weather conditions and breakdown or failure of equipment, could

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significantly reduce the productionthese tax credits, generated by these wind farms, which could have an adverse impact on the financial results of the Evergy Companies.
CustomerThe anticipated benefits of the merger may not be realized.
The Evergy Companies have incurred, and Weather-Related Risks:expect to incur additional, significant costs associated with combining the operations of Great Plains Energy and Evergy Kansas Central. Additional unanticipated costs may also be incurred in the integration of the businesses of Great Plains Energy and Evergy Kansas Central. The Evergy Companies expect the merger to produce various benefits, including, among other things, operating efficiencies and cost savings. However, achieving the anticipated benefits is subject to a number of uncertainties, including:
The
the ability to efficiently and effectively combine operations of the merged companies;
general market and economic conditions;
general competitive factors in the marketplace; and
higher than expected costs required to achieve the anticipated benefits of the merger.
No assurance can be given that these benefits will be achieved or achieved in a timely manner. Integration costs could have a material adverse impact on the results of the Evergy Companies, and a failure to achieve the anticipated benefits of the merger could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies. In addition, the Evergy Companies may encounter difficulties in integrating the operations of the companies, including inconsistencies in standards, systems and controls, and management's focus and resources may be diverted from ordinary business activities and opportunities in order to focus on integration efforts. Any of the foregoing could have a material adverse effect on the Evergy Companies.
The price of Evergy common stock may experience volatility.
The price of Evergy common stock may be volatile. Some of the factors that could affect the price of Evergy common stock are Evergy's earnings; estimates or statements by the investment community; the ability of the Evergy Companies to implement their strategic plan or to realize the expected synergies and other benefits from the merger; the ability of Evergy to deploy capital; actions by regulators; and speculation in the press or investment community about the Evergy Companies' strategy, earnings per share or growth prospects, financial condition or results of operations. Individuals or entities, such as activist shareholders and special interest groups, may also seek to influence the Evergy Companies' strategic plan or take other actions that could disrupt the Evergy Companies' business, financial results or operations and could adversely impact Evergy's stock price. General market conditions and U.S. economic factors and political events unrelated to the performance of the Evergy may also affect Evergy's stock price. For these reasons, shareholders should not rely on historical trends in the price of Great Plains Energy or Evergy Kansas Central common stock to predict the price of Evergy's common stock or its financial results.
Evergy has recorded goodwill that could become impaired and adversely affect financial results.
As required by generally accepted accounting principles (GAAP), Evergy recorded a significant amount of goodwill on its balance sheet in connection with completion of the merger. Evergy assesses goodwill for impairment on an annual basis or whenever events or circumstances occur that would indicate a potential for impairment. If goodwill is deemed to be impaired, Evergy may be required to incur non-cash charges that could materially adversely affect its results of operations.
Customer and Weather-Related Risks:
Evergy's results of operations, financial position and cash flows can be materially affected by changes in customer electricity consumption.
Change in customer behaviors in response to energy efficiency programs, changing conditions and preferences or changes in the adoption of technologies could affect the consumption of energy by customers. Federal and state programs exist to influence the way customers use energy and regulators have mandates to promote energy efficiency. Conservation programs and customers' level of participation in the programs could impact the financial results of the Evergy Companies in adverse ways.

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Technological advances, energy efficiency and other energy conservation measures have reduced and will continue to reduce customer electricity consumption. The Evergy Companies generate electricity at central station power plants to achieve economies of scale and produce electricity at a competitive cost. Self-generation and distributed generation technologies, including microturbines, wind turbines, fuel cells and solar cells, as well as those related to the storage of energy produced by these systems, have become economically competitive with the manner and price at which the Evergy Companies sell electricity. There is also a perception that generating or storing electricity through these technologies is more environmentally friendly than generating electricity with fossil fuels. Increased adoption of these technologies could reduce electricity demand and the pool of customers from whom fixed costs are recovered, resulting in under recovery of the fixed costs of the Evergy Companies. Increased self-generation and the related use of net energy metering, which allows self-generating customers to receive bill credits for surplus power, could put upward price pressure on remaining customers. If the Evergy Companies are unable to adjust prices to reflect reduced electricity demand and increased self-generation and net energy metering, their financial condition and results of operations could be adversely affected.
Changes in customer electricity consumption due to sustained financial market disruptions, downturns or sluggishness in the economy or other factors may also adversely affect the results of operations, financial position and cash flows of the Evergy Companies.
Weather is a major driver of the results of operations, financial position and cash flows of the Evergy Companies and the Evergy Companies are subject to risks associated with climate change.
Weather conditions directly influence the demand for electricity and natural gas and affect the price of energy commodities.electricity. The Evergy Companies are significantly impacted by seasonality, and, due to energy demand created by air conditioning load, highest revenues are typically recorded in the third quarter. Unusually mild winter or summer weather can adversely affect sales.  In addition, severe weather and events, including tornados, snow, fire, rain, flooding and ice storms, can be destructive causingand cause outages and property damage that can potentially result in additionalincreased expenses, lower revenues and additional capital restoration costs.  Storm reserves established by the Evergy Companies may be insufficient to cover these increased costs, and rates may not always be adjusted in a timely and adequatelymanner, or at all, to reflectrecover these increased costs. Additionally, because many of the Evergy Companies' generating stations utilize water for cooling, low water and flow levels can increase maintenance costs at these stations, result in limited power production and require modifications to plant operations.  High water conditions can also impair planned deliveries of fuel to generating stations operated by the Evergy Companies.stations. Climate change may produce more frequent or severe weather events, such as storms, droughts or floods and could also impact the economic
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health of Evergy's service territories. An increase in the frequency or severity of extreme weather events or a deterioration in the economic health of Evergy's service territories could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.
In addition, political,policy, legal and regulatory efforts to influence climate change, such as efforts to reduce GHG emissions, impose a tax on emissions and create incentives for low-carbon generation and energy efficiency, could result in reduced sales and require significant costs to respond to such efforts. These efforts could also result in the early retirement of generation facilities, which could result in stranded costs if regulators disallow full recovery of investments that were prudent when originally made. The Evergy Companies are targeting to achieve an 80% reduction of carbon emissions by 2050 from 2005 levels. The trajectory and timing of the goal could be impacted by various factors, including policy, legal or regulatory actions, a lack of technological advancements or other reasons. Any of the foregoing could adversely affect the results of operations, financial position and cash flows of the Evergy Companies.Companies and the market prices of Evergy's common stock.
Operational Risks:
Operational risks may adversely affect the results of operations, financial position and cash flows of the Evergy Companies.
The operation of electric generation, transmission, distribution and information systems involves many risks, including breakdown or failure of equipment; aging infrastructure; operator error or contractor or subcontractor failure; problems that delay or increase the cost of returning facilities to service after outages; limitations that may be imposed by equipment conditions or environmental, safety or other regulatory requirements; fuel supply or fuel transportation reductions or interruptions; labor disputes; difficulties with the implementation or operation of

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information systems; transmission scheduling constraints; and catastrophic events such as fires, floods, droughts, explosions, terrorism, severe weather, pandemics or other similar occurrences. Many of the Evergy Companies' generation, transmission and distribution resources are aged, which increases the risk of unplanned outages, reduced generation output and higher maintenance expense.  Any equipment or system outage or constraint can, among other things, reduce sales, increase costs and affect the ability to meet regulatory service metrics, customer expectations and regulatory reliability and security requirements.
The Evergy Companies have general liability and property insurance to cover a portion of their facilities, but such policies do not cover transmission or distribution systems, are subject to certain limits and deductibles and do not include business interruption coverage.  Insurance coverage may not be available in the future at reasonable costs or on commercially reasonable terms, and the insurance proceeds received for any loss of, or any damage to, any facilities may not be sufficient to restore the loss or damage.
These and other operating events may reduce revenues or increase costs, or both, and may materially affect the results of operations, financial position and cash flows of the Evergy Companies.
Physical and cybersecurity breaches, criminal activity, terrorist attacks and other disruptions to facilities or information technology infrastructure could interfere with operations, expose the Evergy Companies or their customers or employees to a risk of loss, expose the Evergy Companies to legal or regulatory liability and cause reputational and other harm.
The Evergy Companies rely upon information technology networks and systems to process, transmit and store electronic information, and to manage or support a variety of business processes and activities, including the generation, transmission and distribution of electricity, supply chain functions and the invoicing and collection of payments from customers. The Evergy Companies also use information technology networks and systems to record, process and summarize financial information and results of operations for internal reporting purposes and to comply with financial reporting, legal and tax requirements. These networks and systems are in some cases owned or managed by third-party service providers. In the ordinary course of business, the Evergy Companies collect, store and transmit sensitive data including operating information, proprietary business information and personal information belonging to customers and employees.
The Evergy Companies' information technology networks and infrastructure, as well as the networks and infrastructure belonging to third-party service providers that the Evergy Companies utilize, may beare vulnerable to damage, disruptions or shutdowns due to attacks or breaches by hackers or other unauthorized third parties; error or
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malfeasance by one or more employees or service providers; software or hardware upgrades; additions or replacements; malicious software code; telecommunication failures; natural disasters or other catastrophic events. The occurrence of any of these events could, among other things, impact the reliability or safety of the Evergy Companies' generation, transmission and distribution systems; result in the erasure of data or render the Evergy Companies' equipment, or the equipment of third-party service providers, unusable; impact the Evergy Companies' ability to conduct business in the ordinary course; reduce sales; expose the Evergy Companies and their customers, employees and vendors to a risk of loss or misuse of information; and result in legal claims or proceedings, liability or regulatory penalties, damage the Evergy Companies' reputation or otherwise harm their business. The Evergy Companies can provide no assurance that they will be able to identify and remedyremediate all security or system vulnerabilities or that unauthorized access or error will be identified and remedied.remediated.
The Evergy Companies are subject to laws and rules issued by multiple government agencies concerning safeguarding and maintaining the confidentiality of their security, customer and business information. For example, NERC has issued comprehensive regulations and standards surrounding the security of bulk power systems and is continually in the process of developing updated and new requirements with which the utility industry must comply. The NRC also has issued regulations and standards related to the protection of critical digital assets at nuclear power plants. Compliance with NERC and NRC rules and standards, and rules and standards promulgated by other regulatory agencies from time to time or future legislation, will increase the Evergy Companies' compliance costs and their exposure to the potential risk of violations of these rules, standards or future legislation, which includes potential financial penalties. Furthermore, the non-compliance of other utilities with applicable regulations or the

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occurrence of a serious security event at other utilities could result in increased regulation or oversight, both of which could increase the Evergy Companies' costs and impact their financial results.
Additionally, the Evergy Companies cannot predict the impact that any future information technology or terroristmalicious attack may have on the energy industry in general. The electric utility industry, both within the United States and internationally, has experienced physical and cybersecurity attacks on energy infrastructure such as power plants, substations and related assets in the past, and there will likely be more attacks in the future. The Evergy Companies' facilities and systems could be direct targets or indirect casualties of such attacks. The effects of such attacks could include disruption to the Evergy Companies' generation, transmission and distribution systems or to the electrical grid in general, reduced sales and could increase the cost of insurance coverage or result in a decline in the U.S. economy. Any of the foregoing could have a material adverse impact on the Evergy Companies' operations or financial results.
The cost and schedule of capital projects may materially change and expected performance may not be achieved.
The Evergy Companies' business is capital intensive and regularly includes significant construction projects.  The risks of any capital project include: actual costs may exceed estimated costs; regulators may disallow, limit or delay the recovery of all or part of the cost of, or a return on, a capital project; risks associated with the capital and credit markets to fund projects; delays in receiving, or failure to receive, necessary permits, approvals and other regulatory authorizations; unforeseen engineering problems or changes in project design or scope; the failure of suppliers and contractors to perform as required under their contracts; inadequate availability or increased cost of labor or materials, including commodities such as steel, copper and aluminum that may be subject to uncertain or increased tariffs; inclement weather; new or changed laws, regulations and requirements, including environmental and health and safety laws, regulations and requirements; and other events beyond the Evergy Companies' control may occur that may materially affect the schedule, cost and performance of these projects.
These and other risks could cause the Evergy Companies to defer or limit capital expenditures, materially increase the costs of capital projects, delay the in-service dates of projects, adversely affect the performance of the projects and require the purchase of electricity on the wholesale market, at potentially more expensive prices, until the projects are completed.  Thus, theseThese risks may significantly affect the Evergy Companies' results of operations, financial position and cash flows.
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Failure of one or more generation plant co-owners to pay their share of construction or operations and maintenance costs could increase the Evergy Companies' costs and capital requirements.
The Evergy Companies are co-owners of several large generation plants. See Item 2. Properties, for additional information. Failure by any other co-owner to pay its proportionate share of capital and other costs could materially increase the Evergy Companies' share of the costs. Disputes may also arise between co-owners regarding operation of a plant or the sharing of expenses, which could result in legal expenses and damages and adversely impact the Evergy Companies' financial results.
The Evergy Companies are exposed to risks associated with the ownership and operation of a nuclear generating unit, which could adversely impact the Evergy Companies' business and financial results.
Evergy indirectly owns 94% of Wolf Creek, with Westar EnergyEvergy Kansas South and KCP&LEvergy Metro each owning 47% of the nuclear plant.  The NRC has broad authority under federal law to impose licensing and safety-related requirements for the operation of nuclear generation facilities, including Wolf Creek.  In the event of non-compliance, the NRC has the authority to impose fines, shut down the facilities, or both, depending upon its assessment of the severity of the situation, until compliance is achieved. Additionally, the non-compliance of other nuclear facility operators with applicable regulations or the occurrence of a serious nuclear incident anywhere in the world could result in increased regulation of the nuclear industry. Such events could increase Wolf Creek's costs and impact the financial results of the Evergy Companies or result in a shutdown of Wolf Creek.
An extended outage of Wolf Creek, whether resulting from NRC action, an incident at the plant or otherwise, could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies in the event replacement power and other costs are not recovered through rates or insurance.  If a long-term outage occurred, the state regulatory commissions could reduce rates by excluding the Wolf Creek investment from rate base.  Wolf Creek was constructed prior to 1986 and the age of Wolf Creek increases the risk of unplanned outages and results in higher maintenance costs.
On an annual basis, Westar EnergyEvergy Kansas South and KCP&LEvergy Metro are required to contribute money to tax-qualified trusts that were established to pay for decommissioning costs at the end of the unit's life. The amount of contributions varies depending on estimates of decommissioning expenses and projected return on trust assets. If the actual return on trust assets is below the projected level or actual decommissioning costs are higher than estimated, Westar EnergyEvergy

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Kansas South and KCP&LEvergy Metro could be responsible for the balance of funds required and may not be allowed to recover the balance through rates.
The Evergy Companies are also exposed to other risks associated with the ownership and operation of a nuclear generating unit, including, but not limited to, (i) potential liability associated with the potential harmful effects on the environment and human health resulting from the operation of a nuclear generating unit, (ii) the storage, handling, disposal and potential release (by accident, through third-party actions or otherwise) of radioactive materials and (iii) uncertainties with respect to contingencies and assessments if insurance coverage is inadequate.  Under the structure for insurance among owners of nuclear generating units, Westar EnergyEvergy Kansas South and KCP&LEvergy Metro are also liable for potential retrospective premium assessments (subject to a cap) per incident at any commercial reactor in the country and losses in excess of insurance coverage.
In addition, Wolf Creek is reliant on a sole supplier for fuel and related services. The supplier has in the past been the subject of Chapter 11 reorganization proceedings, and an extended outage of Wolf Creek could occur if the supplier is not able to perform under its contracts with Wolf Creek. Switching to another supplier could take an extended amount of time and would require NRC approval. An extended outage at Wolf Creek could affect the amount of Wolf Creek investment included in customer rates and could have a material impact on the Evergy Companies' financial results.
The structure of the regional power market in which the Evergy Companies operate could have an adverse effect on their results of operations, financial position and cash flows.
Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West are members of the SPP regional transmission organization, and each has transferred operational authority (but not ownership) of their transmission facilities to the SPP. The SPP's Integrated Marketplace determines which generating units among market participants should run, within the operating
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constraints of a unit, at any given time for maximum cost-effectiveness. In the event that Westar Energy's, KCP&L'sEvergy Kansas Central's, Evergy Metro's or GMO'sEvergy Missouri West's generating units are not among the lowest cost generating units operating within the market, each could experience decreased levels of wholesale electricity sales.
A market for Transmission Congestion Rights (TCR) is also included as part of the Integrated Marketplace. TCRs are financial instruments used to hedge transmission congestion charges. Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West acquire TCRs for the purpose of hedging against transmission congestion charges. There is a risk that the entities could incorrectly model the amount of TCRs needed, or that the TCRs acquired could be ineffective in hedging against transmission congestion charges, either of which could lead to increased purchased power costs.
The rules governing the various regional power markets, including the SPP, may change from time to time and such changes could impact the costs and revenues of the Evergy Companies.
Litigation Risks:
The outcome of legal proceedings cannot be predicted.  An adverse finding could have a material adverse effect on the Evergy Companies' results of operations, financial position and cash flows.
The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses.  The outcome of these matters cannot be determined, nor, in many cases, can the liability that could potentially result from each case be reasonably estimated.  The liability that the Evergy Companies may incur with respect to any of these cases may be in excess of amounts currently reservedaccrued and insured against with respect to such matters and could adversely impact the financial results for the Evergy Companies.
Risks Related to the Merger:
The anticipated benefits of the merger may not be realized.
The Evergy Companies have incurred, and expect to incur additional, significant costs associated with combining the operations of Great Plains Energy and Westar Energy. Additional unanticipated costs may also be incurred in the integration of the businesses of Great Plains Energy and Westar Energy. The Evergy Companies expect the merger to produce various benefits, including, among other things, operating efficiencies and cost savings. However, achieving the anticipated benefits is subject to a number of uncertainties, including:

the ability to efficiently and effectively combine operations of the merged companies;
general market and economic conditions;
general competitive factors in the marketplace; and
higher than expected costs required to achieve the anticipated benefits of the merger.
No assurance can be given that these benefits will be achieved or, if achieved, the timing of their achievement. Integration costs could have a material adverse impact on the results of the Evergy Companies, and a failure to achieve the anticipated benefits of the merger could impair Evergy's ability to repurchase shares and its ability to grow its earnings and dividend. In addition, the Evergy Companies may encounter difficulties in integrating the operations of the companies, including inconsistencies in standards, systems and controls, and management's focus and resources may be diverted from ordinary business activities and opportunities in order to focus on integration efforts. Any of the foregoing could have a material adverse effect on the Evergy Companies.
The price of Evergy common stock may experience volatility.
The price of Evergy common stock may be volatile. Some of the factors that could affect the price of Evergy common stock are quarterly increases or decreases in revenue or earnings, changes in revenue or earnings estimates by the investment community, the ability of the Evergy Companies to implement their integration strategy and to realize the expected synergies and other benefits from the merger, the ability of Evergy to implement its share repurchase program and speculation in the press or investment community about the Evergy Companies' financial condition or results of operations. General market conditions and U.S. economic factors and political events
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unrelated to the performance of the Evergy may also affect Evergy's stock price. For these reasons, shareholders should not rely on historical trends in the price of Great Plains Energy or Westar Energy common stock to predict the price of Evergy's common stock or its financial results.
Capital, credit market conditions or future legislation may adversely impact Evergy's share repurchase program.
Evergy expects to repurchase a significant number of shares over the next several years using a combination of existing cash on the balance sheet, internally generated cash, proceeds from capital markets activities and short-term debt. Disruptions in capital and credit markets, negative credit rating actions and volatility in the market price of Evergy's common stock may make capital more difficult and costlier to obtain, may restrict liquidity and may adversely impact the ability to execute the share repurchase program in a timely or cost-effective manner. Evergy's ability to execute its share repurchase program could also be adversely impacted by the passage of federal legislation prohibiting or significantly restricting the ability of companies to repurchase shares of their own stock.
Evergy has recorded goodwill that could become impaired and adversely affect financial results.
As required by generally accepted accounting principles (GAAP), Evergy recorded a significant amount of goodwill on its balance sheet in connection with completion of the merger. Evergy assesses goodwill for impairment on an annual basis or whenever events or circumstances occur that would indicate a potential for impairment. If goodwill is deemed to be impaired, Evergy may be required to incur material non-cash charges that could materially adversely affect its results of operations.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.

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ITEM 2. PROPERTIES
Generation Resources
 
Unit Capability (MW) By Owner(a)
 
Unit Capability (MW) By Owner(a)
StationUnit No.LocationYear CompletedFuelWestar EnergyKCP&LGMOTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased PowerUnit No.LocationYear CompletedFuelEvergy Kansas CentralEvergy MetroEvergy Missouri WestTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased Power
Renewable Generation:        
Central Plains Kansas2009Wind99
—
—
99
—
 99
 Kansas2009Wind99
—
—
99
—
 99
Flat Ridge Kansas2009Wind50
—
—
50
50
(e)100
 Kansas2009Wind50
—
—
50
50
(e)100
Western Plains Kansas2017Wind281
—
—
281
—
 281
 Kansas2017Wind281
—
—
281
—
 281
Meridian Way Kansas2008Wind—
—
—
—
96
(e)96
 Kansas2008Wind—
—
—
—
96
(e)96
Ironwood Kansas2012Wind—
—
—
—
168
(e)168
 Kansas2012Wind—
—
—
—
168
(e)168
Post Rock Kansas2012Wind—
—
—
—
201
(e)201
 Kansas2012Wind—
—
—
—
201
(e)201
Cedar Bluff Kansas2015Wind—
—
—
—
199
(e)199
 Kansas2015Wind—
—
—
—
199
(e)199
Kay Wind Oklahoma2015Wind—
—
—
—
200
(e)200
 Oklahoma2015Wind—
—
—
—
200
(e)200
Ninnescah Kansas2016Wind—
—
—
—
208
(e)208
 Kansas2016Wind—
—
—
—
208
(e)208
Kingman 1 Kansas2016Wind—
—
—
—
103
(e)103
 Kansas2016Wind—
—
—
—
103
(e)103
Kingman 2 Kansas2016Wind—
—
—
—
103
(e)103
 Kansas2016Wind—
—
—
—
103
(e)103
Rolling Meadows Kansas2010Landfill Gas—
—
—
—
6
(e)6
 Kansas2010Landfill Gas—
—
—
—
6
(e)6
Hutch Solar Kansas2017Solar—
—
—
—
1
(e)1
 Kansas2017Solar—
—
—
—
1
(e)1
Cimarron II Kansas2012Wind—
—
—
—
131
(f)131
 Kansas2012Wind—
—
—
—
131
(f)131
Spearville 1 Kansas2006Wind—
101
—
101
—
 101
 Kansas2006Wind—
101
—
101
—
 101
Spearville 2 Kansas2010Wind—
48
—
48
—
 48
 Kansas2010Wind—
48
—
48
—
 48
Spearville 3 Kansas2012Wind—
—
—
—
101
(f)101
 Kansas2012Wind—
—
—
—
101
(f)101
Gray County Kansas2001Wind—
—
—
—
110
(g)110
 Kansas2001Wind—
—
—
—
110
(g)110
Ensign Kansas2012Wind—
—
—
—
99
(g)99
 Kansas2012Wind—
—
—
—
99
(g)99
Waverly Kansas2016Wind—
—
—
—
200
(f)200
 Kansas2016Wind—
—
—
—
200
(f)200
Slate Creek Kansas2015Wind—
—
—
—
150
(f)150
 Kansas2015Wind—
—
—
—
150
(f)150
Rock Creek Missouri2017Wind—
—
—
—
300
(h)300
 Missouri2017Wind—
—
—
—
300
(h)300
Osborn Missouri2016Wind—
—
—
—
201
(h)201
 Missouri2016Wind—
—
—
—
201
(h)201
Pratt Kansas2018Wind—
—
—
—
243
(h)243
 Kansas2018Wind—
—
—
—
243
(h)243
Greenwood Solar Missouri2016Solar—
—
3
3
—
 3
Prairie Queen Kansas2019Wind—
—
—
—
200
(h)200
CNPPID (NE) - Hydro Nebraska1941Hydro—
—
—
—
66
(f)66
 Nebraska1941Hydro—
—
—
—
60
(f)60
St Joseph Landfill Missouri2012Landfill Gas—
—
2
2
—
 2
 Missouri2012Landfill Gas—
—
2
2
—
 2
Total Renewable Generation:Total Renewable Generation: 430
149
5
584
3,130

3,714
Nuclear:        
Wolf Creek1(b)Kansas1985Uranium552
552
—
1,104
—
 1,104
1(b)Kansas1985Uranium552
552
—
1,104
—
 1,104
Coal:    
Jeffrey Energy Center Kansas    
Steam Turbines1-3(b)(i) 1978, 1980 &1983Coal2,012
—
175
2,187
—
 2,187
Total Nuclear: 552
552
—
1,104
—

1,104

23
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Unit Capability (MW) By Owner(a)
 
Unit Capability (MW) By Owner(a)
StationUnit No.LocationYear CompletedFuelWestar EnergyKCP&LGMOTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased PowerUnit No.LocationYear CompletedFuelEvergy Kansas CentralEvergy MetroEvergy Missouri WestTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased Power
Coal:    
Jeffrey Energy Center Kansas    
Steam Turbines1-3(b) 1978, 1980 &1983Coal2,011
—
175
2,186
—
 2,186
Lawrence Energy Center Kansas     Kansas    
Steam Turbines4 & 5 1960, 1971Coal484
—
—
484
—
 484
4 & 5 1960, 1971Coal486
—
—
486
—
 486
La Cygne Kansas     Kansas    
Steam Turbines1 & 2(b)(c) 1973, 1977Coal699
699
—
1,398
—
 1,398
1 & 2(b)(c) 1973, 1977Coal699
699
—
1,398
—
 1,398
Iatan Missouri     Missouri    
Steam Turbines1 & 2(b) 1980, 2010Coal—
972
285
1,257
—
 1,257
1 & 2(b) 1980, 2010Coal—
981
288
1,269
—
 1,269
Hawthorn Missouri     Missouri    
Steam Turbines5(c)(d) 1969Coal—
564
—
564
—
 564
5(d) 1969Coal—
564
—
564
—
 564
Total Coal: 3,196
2,244
463
5,903
—

5,903
Gas and Oil:        
Emporia Energy Center Kansas     Kansas    
Combustion Turbines1 - 7 2008 - 2009Natural Gas646
—
—
646
—
 646
1 - 7 2008 - 2009Natural Gas645
—
—
645
—
 645
Gordon Evans Energy Center Kansas     Kansas    
Combustion Turbines1 - 3 2000 - 2001Natural Gas294
—
—
294
—
 294
1 - 3 2000 - 2001Natural Gas289
—
—
289
—
 289
Hutchinson Energy Center Kansas     Kansas    
Combustion Turbines1 - 3 1974Natural Gas165
—
—
165
—
 165
1 - 3 1974Natural Gas165
—
—
165
—
 165
4 1975Oil70
—
—
70
—
 70
4 1975Oil58
—
—
58
—
 58
Spring Creek Energy Center Oklahoma     Oklahoma    
Combustion Turbines1 - 4 2001Natural Gas273
—
—
273
—
 273
1 - 4 2001Natural Gas272
—
—
272
—
 272
State Line (40%) Missouri    
State Line Missouri    
Combined Cycle2-1, 2-2 & 2-3(b) 2001Natural Gas196
—
—
196
—
 196
2-1, 2-2 & 2-3(b) 2001Natural Gas196
—
—
196
—
 196
Hawthorn Missouri     Missouri    
Combined Cycle6/9 2000Natural Gas—
235
—
235
—
 235
6/9 2000Natural Gas—
225
—
225
—
 225
Combustion Turbines7 & 8 2000Natural Gas—
157
—
157
—
 157
7 & 8 2000Natural Gas—
153
—
153
—
 153
West Gardner Kansas     Kansas    
Combustion Turbines1 - 4 2003Natural Gas—
314
—
314
—
 314
1 - 4 2003Natural Gas—
313
—
313
—
 313
Osawatomie Kansas     Kansas    
Combustion Turbines1 2003Natural Gas—
76
—
76
—
 76
1 2003Natural Gas—
76
—
76
—
 76

24
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Unit Capability (MW) By Owner(a)
 
Unit Capability (MW) By Owner(a)
StationUnit No.LocationYear CompletedFuelWestar EnergyKCP&LGMOTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased PowerUnit No.LocationYear CompletedFuelEvergy Kansas CentralEvergy MetroEvergy Missouri WestTotal Company GenerationRenewable Purchased PowerTotal Generation and Renewable Purchased Power
Gas and Oil (continued):    
Ralph Green Missouri     Missouri    
Combustion Turbines3 1981Natural Gas—
—
71
71
—
 71
3 1981Natural Gas—
—
69
69
—
 69
Nevada Missouri     Missouri    
Combustion Turbines1 1974Oil—
—
18
18
—
 18
1 1974Oil—
—
19
19
—
 19
Lake Road Missouri     Missouri    
Combustion Turbines1 - 3 1951, 1958 & 1962Natural Gas—
—
42
42
—
 42
1 - 3 1951, 1958 & 1962Natural Gas—
—
42
42
—
 42
5 - 7 1974, 1989 & 1990Oil—
—
104
104
—
 104
5 - 7 1974, 1989 & 1990Oil—
—
104
104
—
 104
Steam Turbines4 1967Natural Gas—
—
97
97
—
 97
4 1967Natural Gas—
—
97
97
—
 97
Northeast Missouri     Missouri    
Combustion Turbines11 - 18 1972 - 1977Oil—
394
—
394
—
 394
11 - 18 1972 - 1977Oil—
416
—
416
—
 416
Black Start Unit 1985Oil—
2
—
2
—
 2
19 1985Oil—
2
—
2
—
 2
South Harper Missouri     Missouri    
Combustion Turbines1 - 3 2005Natural Gas—
—
303
303
—
 303
1 - 3 2005Natural Gas—
—
313
313
—
 313
Greenwood Energy Center Missouri     Missouri    
Combustion Turbines1 - 4 1975 - 1979Natural Gas—
—
242
242
—
 242
1 - 4 1975 - 1979Natural Gas—
—
237
237
—
 237
Crossroads Energy Center Mississippi     Mississippi    
Combustion Turbines1 - 4 2002Natural Gas—
—
292
292
—
 292
1 - 4 2002Natural Gas—
—
297
297
—
 297
Total Gas and Oil 1,625
1,185
1,178
3,988
—

3,988
Total 5,821
4,114
1,631
11,566
2,936
 14,502
 5,803
4,130
1,646
11,579
3,130
 14,709
(a) Capability (except for wind generating facilities) represents accreditedestimated 2020 net generating capacity approved by the SPP.capacity. Capability for wind generating facilities represents the nameplate capacity. Due to the intermittent nature of wind generation, these facilities are associated with a total of 1,3011,404 MW of accredited generating capacity.capacity pursuant to SPP reliability standards.
(b) Share of a jointly owned unit.
(c) In 1987, KGEEvergy Kansas South entered into a sale-leaseback transaction involving its 50% interest in the La Cygne Unit 2. Evergy and Westar EnergyEvergy Kansas Central consolidate the leasing entity as a variable interest entity (VIE). See Note 1819 to the consolidated financial statements for more information.
(d) In 2001,Although the plant was completed in 1969, a new boiler, air quality control equipment and an uprated turbine waswere placed in service at the Hawthorn Generating Station.Station in 2001.
(e) Westar EnergyEvergy Kansas Central renewable purchased power agreement.
(f) KCP&LEvergy Metro renewable purchased power agreement.
(g) GMOEvergy Missouri West renewable purchased power agreement.
(h) KCP&LEvergy Metro and GMOEvergy Missouri West renewable purchased power agreement.
(i) Westar Energy leases 8% of the Jeffrey Energy Center. Unit capacity amounts reflect both owned and leased percentages.

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Transmission and Distribution Resources
Evergy's electric transmission system interconnects with systems of other utilities for reliability and to permit wholesale transactions with other electricity suppliers. Evergy has approximately 13,70010,100 circuit miles of

25
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transmission lines, 39,700 circuit miles of overhead distribution lines and 12,50012,700 circuit miles of underground distribution lines in Missouri and Kansas. Evergy has all material franchise rights necessary to sell electricity within its retail service territory. Evergy's transmission and distribution systems are routinely monitored for adequacy to meet customer needs. Management believes the current systems are adequate to serve customers.
General
Evergy's generating plants are located on property owned (or co-owned) by the Evergy Companies, except for certain facilities that are located on easements or are contractually controlled. Evergy's service centers, electric substations and a portion of its transmission and distribution systems are located on property owned or leased by Evergy. Evergy's transmission and distribution systems are for the most part located above or underneath highways, streets, other public places or property owned by others. Evergy believes that it has satisfactory rights to use those places or properties in the form of permits, grants, easements, licenses or franchise rights; however, it has not necessarily undertaken efforts to examine the underlying title to the land upon which the rights rest. Evergy's headquarters are located in leased office space.
Substantially all of the fixed property and franchises of the Evergy Companies, which consist principally of electric generating stations, electric transmission and distribution lines and systems, and buildings (subject to exceptions, reservations and releases), are subject to mortgage indentures pursuant to which bonds have been issued and are outstanding. See Note 1213 to the consolidated financial statements for more information.
ITEM 3.  LEGAL PROCEEDINGS
Other Proceedings
The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses.  For information regarding material lawsuits and proceedings, see Notes 2, 5 and 1415 to the consolidated financial statements.  Such information is incorporated herein by reference.
ITEM 4.  MINE SAFETY DISCLOSURES
Not applicable.

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PART II
ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
EVERGY, INC.
Evergy's common stock is listed on the New York Stock Exchange under the symbol "EVRG." At February 15, 2019,24, 2020, Evergy's common stock was held by 24,16522,695 shareholders of record.
Performance Graph
The following graph compares the performance of Evergy's common stock during the period that began on June 5, 2018 (the first day that Evergy's common stock traded), and ended on December 31, 2018,2019, to the performance of the Standard & Poor's 500 Index (S&P 500) and the Standard & Poor's Electric Utility Index (S&P 500 Electric Utilities). The graph assumes a $100 investment in Evergy's common stock and in each of the indices at the beginning of the period and a reinvestment of dividends paid on such investments throughout the period.
chart-d8c7d2388c782730123.jpgchart-61c7d1b94ba7ff7e37b.jpg




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Purchases of Equity Securities
The following table provides information regarding purchases by Evergy of its equity securities that are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (Exchange Act), during the three months ended December 31, 2018.2019.
Issuer Purchases of Equity Securities
Month 
Total Number of Shares (or Units) Purchased(a)
Average Price Paid per Share (or Unit)Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs(a)
 
Total Number of Shares (or Units) Purchased(a)
Average Price Paid per Share (or Unit)Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs(a)
October 1 - 31 1,341,183
(b) 
1,341,183
51,763,744
 —
 —
16,099,628
November 1 - 30 1,228,939
(c) 
1,228,939
50,534,805
 628,929
(b)628,929
15,470,699
December 1 - 31 6,903,355
(d) 
6,903,168
43,631,637
 635,720
(b)635,720
14,834,979
Total 9,473,477
 9,473,290
43,631,637
 1,264,649
 1,264,649
14,834,979
(a) In July 2018, the Evergy Board of Directors (Evergy Board) authorized the repurchase of up to 60 million shares of Evergy's common stock with no expiration date. Evergy expects to repurchase the 60 million shares by mid-2020. See Note 1718 to the consolidated financial statements for additional information on Evergy's common stock repurchase program.
(b)In August 2018, Evergy entered into twoNovember 2019, a portion of the September 2019 accelerated share repurchase (ASR) agreements to purchase $450.0 million of Evergy common stock. In October 2018, one of the ASR agreementsagreement was settled, early at the option of the financial institution, which resulted in the delivery of 848,226628,929 additional shares of Evergy common stock at no additional cost. The remainder of the September 2019 ASR agreement was settled in December 2019, which resulted in the delivery of 635,720 additional shares of Evergy common stock at no additional cost. In total, 3,981,9307,815,204 shares were delivered under thisthe September 2019 ASR agreement at an average price paid per share of $56.51. In addition, Evergy repurchased 492,957 shares of common stock in the open market at an average price of $55.97.
(c)In November 2018, the final August 2018 ASR agreement was settled, which resulted in the delivery of 816,405 additional shares of Evergy common stock at no additional cost. In total, 3,950,109 shares were delivered under this ASR at an average price paid per share of $56.96. In addition, Evergy repurchased 412,534 shares of common stock in the open market at an average price of $58.16.
(d)In November 2018, Evergy entered into a new ASR agreement to purchase $475.0 million of Evergy common stock and through which 6,400,539 shares were delivered in December 2018. The final number of shares of Evergy common stock that will ultimately be delivered to Evergy, and therefore the average price paid per share, will be determined at the final settlement of the ASR by March 2019 or earlier at the option of the financial institution. In addition, Evergy repurchased 502,629 shares of common stock in the open market at an average price of $58.94. Evergy also purchased 187 shares for withholding taxes for restricted stock vesting at an average price of $56.45.$64.03.
Dividend Restrictions
For information regarding dividend restrictions, see Note 1718 to the consolidated financial statements.
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ITEM 6. SELECTED FINANCIAL DATA
Year Ended December 31 
2018(a)
 2017 2016 2015 2014 2019 
2018(b)
 
2017(b)
 
2016(b)
 
2015(b)
Evergy (dollars in millions except per share amounts) (dollars in millions except per share amounts)
Operating revenues $4,276
 $2,571
 $2,562
 $2,459
 $2,602
 $5,148
 $4,276
 $2,571
 $2,562
 $2,459
Net income $546
 $337
 $361
 $302
 $322
 $686
 $546
 $337
 $361
 $302
Net income attributable to Evergy, Inc. $536
 $324
 $347
 $292
 $313
 $670
 $536
 $324
 $347
 $292
Basic earnings per common share $2.50
 $2.27
 $2.43
 $2.11
 $2.40
 $2.80
 $2.50
 $2.27
 $2.43
 $2.11
Diluted earnings per common share $2.50
 $2.27
 $2.43
 $2.09
 $2.35
 $2.79
 $2.50
 $2.27
 $2.43
 $2.09
Total assets at year end $25,598
 $11,624
 $11,487
 $10,706
 $10,289
 $25,976
 $25,598
 $11,624
 $11,487
 $10,706
Total long-term obligations at year end (b)(a)
 $7,472
 $3,846
 $3,699
 $3,379
 $3,433
 $9,200
 $7,472
 $3,846
 $3,699
 $3,379
Cash dividends per common share $1.735
 $1.60
 $1.52
 $1.44
 $1.40
 $1.93
 $1.735
 $1.60
 $1.52
 $1.44
Westar Energy          
Operating revenues $2,615
 $2,571
 $2,562
 $2,459
 $2,602
Net income $349
 $337
 $361
 $302
 $322
Net income attributable to Westar Energy, Inc. $339
 $324
 $347
 $292
 $313
Total assets at year end $11,817
 $11,624
 $11,487
 $10,706
 $10,289
Total long-term obligations at year end (b)
 $3,817
 $3,846
 $3,699
 $3,379
 $3,433
KCP&L          
Operating revenues $1,823
 $1,891
 $1,875
 $1,714
 $1,731
Net income $163
 $180
 $225
 $153
 $162
Total assets at year end $8,121
 $8,124
 $8,058
 $7,815
 $7,495
Total long-term obligations at year end (b)
 $2,532
 $2,582
 $2,565
 $2,563
 $2,297
(a) Includes long-term debt, current maturities of long-term debt, finance leases, operating leases, long-term debt of VIEs and current maturities of long-term debt of VIEs. Obligations related to operating leases are only included beginning in 2019 due to Evergy's adoption of Topic 842, Leases. See Note 1 to the consolidated financial statements for additional information.
(b) On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results from the date of the closing of the merger and thereafter. KCP&LEvergy amounts are not included in consolidated Evergy for 2017, 2016 and 2015 reflect the results of operation and 2014.financial position of Evergy Kansas Central as the accounting acquirer in the merger transaction.
(b)Includes long-term debt, current maturities of long-term debt, capital leases, long-term debt of VIEs and current maturities of long-term debt of VIEs.
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ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following combined Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the consolidated financial statements and accompanying notes in this combined annual report on Form 10-K. None of the registrants make any representation as to information related solely to Evergy, Evergy Kansas Central or Evergy Metro other than itself.
The following MD&A generally discusses 2019 and 2018 items and year-to-year comparisons between 2019 and 2018. Discussions of 2017 items and year-to-year comparisons between 2018 and 2017 can be found in MD&A in Part II, Item 7, of the Evergy Companies' combined annual report on Form 10-K for the fiscal year ended December 31, 2018.
EVERGY, INC.
EXECUTIVE SUMMARY
Evergy Inc. is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries:subsidiaries listed below. In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.
Evergy Kansas Central, formerly known as Westar Energy, Inc., is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Westar EnergyEvergy Kansas Central has one active wholly-owned subsidiary with significant operations, KGE.Evergy Kansas South, formerly known as Kansas Gas and Electric Company.
KCP&LEvergy Metro, formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
GMOEvergy Missouri West, formerly known as KCP&L Greater Missouri Operations Company, is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
GPETHCEvergy Transmission Company, formerly known as GPE Transmission Holding Company, LLC, owns 13.5% of Transource with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of AEP. Transource is focused on the development of competitive electric transmission projects. GPETHCEvergy Transmission Company accounts for its investment in Transource under the equity method.
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Westar EnergyEvergy Kansas Central also owns a 50% interest in Prairie Wind, which is a joint venture between Westar EnergyEvergy Kansas Central and affiliatessubsidiaries 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. Westar EnergyEvergy Kansas Central accounts for its investment in Prairie Wind under the equity method.
Westar EnergySince the rebranding in September 2019, Evergy Kansas Central, Evergy Kansas South, Evergy Metro and KGE conductEvergy Missouri West have been conducting business in their respective service territories using the name Westar Energy. KCP&L and GMO conduct business in their respective service territories using the name KCP&L.Evergy. Collectively, the Evergy Companies have approximately 14,50014,700 MWs of owned generating capacity and renewable purchased power 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. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).

29
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Strategy
Evergy expects to continue operating its integrated utilities within the currently existing regulatory frameworks. Evergy's objectives are to deliver value to shareholders through earnings and dividend growth; serve customers and communities with cost-effective, reliable and clean energy; and maintain a rewarding and challenging work environment for employees. Significant elements of Evergy's strategy to achieve these objectives include:
the realization of a total of approximately $595 million of potential net savings over the first five years of operation of the combined company, which formed in June 2018, resulting from synergies that are expected to be created as a result of the merger;
anticipated rate base investment of approximately $7.6 billion from 2020 through 2024; and
the reduction of carbon emissions by 80% by 2050 from 2005 levels through the continued growth of Evergy's renewable energy portfolio and the retirement of older and less efficient fossil fuel plants. See "Transforming Evergy's Generation Fleet" in Part I, Item 1, Business, for additional information.
In March 2020, the Evergy Board announced the creation of a Strategic Review & Operations Committee that will explore ways to enhance long-term shareholder value (taking into account applicable legal and regulatory requirements and any other relevant considerations), including through a potential strategic combination or an enhanced long-term standalone operating plan and strategy. The committee is expected to complete its review and make a recommendation to Evergy's Board in the first half of 2020.
See "Cautionary Statements Regarding Certain Forward-Looking Information" and Part I, Item 1A, Risk Factors, for additional information.
Common Stock Repurchase Program
In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock. Evergy has utilized various methods to effectuate the share repurchase program since its authorization, including the repurchase of shares through ASR agreements and open market transactions. For 2019, Evergy had total repurchases of common stock of $1,628.7 million and had repurchased 28.8 million shares under the repurchase program. Since the start of the repurchase program in August 2018, Evergy has made total repurchases of common stock of $2,671.0 million and has repurchased 45.2 million shares under the repurchase program. Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committee of the Evergy Board conducts its review of ways to enhance long-term shareholder value, which is expected to conclude in the first half of 2020.
See Note18 to the consolidated financial statements for more information regarding Evergy's common stock repurchase program.
Great Plains Energy and Westar EnergyEvergy Kansas Central Merger
Evergy was incorporated in 2017 as Monarch Energy, a wholly-owned subsidiary of Great Plains Energy. Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended Merger Agreement. On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Westar Energy,Evergy Kansas Central, with Westar EnergyEvergy Kansas Central surviving the merger. These merger transactions resulted in Evergy becoming the parent entity of Westar EnergyEvergy Kansas Central and the direct subsidiaries of Great Plains Energy, including KCP&LEvergy Metro and GMO.Evergy Missouri West. As a result of the closing of the merger transactions, each outstanding share of Great Plains Energy common stock was converted into 0.5981 shares of Evergy common stock, resulting in the issuance of 128.9 million shares. Additionally, each outstanding share of Westar EnergyEvergy Kansas Central common stock was converted into 1 share of Evergy common stock.
Westar EnergyEvergy Kansas Central was determined to be the accounting acquirer in the merger and thus, the predecessor of Evergy. Therefore, Evergy's accompanying consolidated financial statements reflect the results of operations of Westar Energy for 2017 and 2016 and the financial position of Westar Energy as of December 31, 2017. Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy. The results of Great Plains

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Energy's direct subsidiaries have been included in Evergy's results of operations from June 4, 2018, the date of the closing of the merger, and thereafter.
KCP&L has elected not to apply "push-down accounting" related to the merger, whereby the adjustments of assets and liabilities to fair value and the resulting goodwill would be recorded on the financial statements of the acquired subsidiary. These adjustments for KCP&L, as well as those related to the acquired assets and liabilities of Great Plains Energy and its other direct subsidiaries, are only reflected on Evergy's consolidated financial statements.
See Note 2 to the consolidated financial statements for more information regarding the merger.
Common Stock Repurchase Program
In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock. Although this repurchase authorization has no expiration date, Evergy expects to repurchase approximately 60 million shares by mid-2020. Evergy plans to utilize various methods to effectuate the share repurchase program, including but not limited to, a series of transactions that may include ASRs, open market transactions or other means, subject to market conditions and applicable legal requirements. The repurchase program may be suspended, discontinued or resumed at any time. For 2018, Evergy had total repurchases of common stock of approximately $1,042 million and had repurchased 16.4 million shares under the repurchase program. These repurchase totals include shares repurchased under ASR agreements, one of which had not reached final settlement as of December 31, 2018, and are discussed further below.
In August 2018, Evergy entered into two ASR agreements with financial institutions to purchase $450.0 million of Evergy common stock. The ASR agreements reached final settlement in the fourth quarter of 2018 and resulted in the delivery of 7.9 million shares to Evergy based on the average daily volume weighted-average price of Evergy common stock during the term of the ASR agreements, less a negotiated discount.
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In November 2018, Evergy entered into an ASR agreement with a financial institution to purchase $475.0 million of Evergy common stock. In December 2018, the financial institution delivered to Evergy 6.4 million shares of common stock, representing a partial settlement of the contract, based on then-current market prices and Evergy paid a total of $475.0 million. The final number of shares of Evergy common stock that Evergy may receive or be required to remit upon settlement of the ASR agreement will be based on the average daily volume weighted-average price of Evergy common stock during the term of the ASR agreement, less a negotiated discount. Final settlement of the ASR agreement will occur by March 2019, but may occur earlier at the option of the financial institution. Evergy expects that the final settlement of the ASR agreement will result in the delivery of additional shares of common stock to Evergy at no additional cost.
See Note17 to the consolidated financial statements for more information regarding Evergy's common stock repurchase program.
Missouri Legislation
On June 1, 2018, Missouri Senate Bill (S.B.) 564 was signed into law by the Governor of Missouri. Most notably, S.B. 564 includes a PISA provision that can be elected by Missouri electric utilities to defer to a regulatory asset and recover 85% of depreciation expense and associated return on investment for qualifying electric plant rate base additions. Qualifying electric plant includes all rate base additions with the exception of new coal, nuclear or natural gas generating units or rate base additions that increase revenues by allowing service to new customer premises. The deferred depreciation and return recorded in the associated regulatory asset, except for any prudence disallowances, is required to be included in determining the utility's rate base during subsequent general rate proceedings subject to a 3% compound annual growth rate limitation on future electric rates compared with the utility's rates in effect prior to electing PISA. Utilities that elect the PISA provision can make qualifying deferrals of depreciation and return through December 2023, with a potential extension through December 2028 subject to MPSC approval. Except under certain circumstances, utilities that elect the PISA provision must keep base rates constant for three years following the utilities' last general rate case. KCP&L and GMO have elected the PISA provision of S.B. 564 effective as of January 1, 2019.
Regulatory Proceedings
See Note 5 to the consolidated financial statements for information regarding regulatory proceedings.
Plant Retirements
In 2017, Westar Energy announced plans to retire Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center and Units 1 and 2 at Gordon Evans Energy Center, subject to the completion of the merger in 2018. In 2017, KCP&L and GMO also announced plans to retire KCP&L's Montrose Station and GMO's Sibley Station.
In the fourth quarter of 2018, Westar Energy, KCP&L and GMO retired these stations consistent with their previously announced plans.
Strategy
Evergy expects to continue operating its vertically integrated utilities within the currently existing regulatory frameworks. Evergy's objectives are to deliver value to shareholders through earnings and dividend growth; serve customers and communities with reliable service, clean energy and fewer and lower rate increases; and maintain a rewarding and challenging work environment for employees. Significant elements of Evergy's strategy to achieve these objectives include:
the realization of a total of approximately $550 million of potential net savings from 2018 through 2022 resulting from synergies that are expected to be created as a result of the merger;
the repurchase of approximately 60 million outstanding shares of Evergy common stock by mid-2020;
anticipated rate base investment of approximately $6 billion from 2018 through 2022;
the continued growth of Evergy's renewable energy portfolio as the Evergy Companies retire older and less efficient fossil fuel plants; and
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implementation of the rate orders received by the KCC and MPSC in 2018.
See "Cautionary Statements Regarding Certain Forward-Looking Information" and Part I, Item 1A, Risk Factors, for additional information.
Earnings Overview
The following table summarizes Evergy's net income and diluted earnings per common share (EPS).
2018 2017 Change2019 2018 Change
(millions, except per share amounts)(millions, except per share amounts)
Net income attributable to Evergy, Inc.$535.8
 $323.9
 $211.9
$669.9
 $535.8
 $134.1
Earnings per common share, diluted2.50
 2.27
 0.23
2.79
 2.50
 0.29
Net income and diluted EPSattributable to Evergy, Inc. increased in 20182019 compared to 2017,2018, primarily due to the inclusion of KCP&L'sEvergy Metro's and GMO'sEvergy Missouri West's earnings beginning in June 2018, higher Westar Energy retail sales driven by favorable weather and lower income tax expense, partially offset bythe first five months of 2019, merger-related costs and reductions of revenue for customer bill credits incurred in June 2018 following the closeconsummation of the merger.merger, lower operating and maintenance expenses at fossil-fuel generating units and lower administrative and general expenses, partially offset by lower retail sales driven by unfavorable weather and higher depreciation expense.
In addition,Diluted EPS increased in 2019 compared to 2018, primarily due to the increase in net income attributable to Evergy, Inc. discussed above, partially offset by a higher number of diluted weighted average common shares outstanding due to the issuance of common shares to Great Plains Energy shareholders as a result of the mergerin 2019, which diluted earnings per share $1.26EPS by $0.34 for 2018.2019.
For additional information regarding the change in net income, refer to the Evergy Results of Operations section within this MD&A.
Impact of Recently Issued Accounting StandardsAdjusted Earnings (non-GAAP) and Adjusted EPS (non-GAAP)
See Note 1Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for 2019 were$694.0 million or $2.89 per share, respectively. For 2018,Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were$680.9 million or $2.54 per share, respectively. In addition to net income attributable to Evergy, Inc., diluted EPS, pro forma net income attributable to Evergy, Inc. and pro forma diluted EPS as prepared in accordance with GAAP, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the costs and/or benefits resulting from rebranding, voluntary severance and significant items related to the consolidatedGreat Plains Energy and Evergy Kansas Central merger.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to enhance an investor's overall understanding of results. 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 statements formeasures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information regarding the impactprovided elsewhere in this report.

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The following table provides a reconciliation between net income attributable to Evergy, Inc., diluted EPS, pro forma net income attributable to Evergy, Inc. and pro forma diluted EPS as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP).
 Earnings (Loss) Earnings (Loss) per Diluted ShareEarnings (Loss) Earnings (Loss) per Diluted Share
 20192018
 (millions, except per share amounts)
Net income attributable to Evergy, Inc.$669.9
 $2.79
$535.8
 $2.50
Pro forma adjustments(a):
      
Great Plains Energy earnings prior to merger—
 —
94.4
 0.35
Great Plains Energy shares prior to mergern/a
 —
n/a
 (0.50)
Non-recurring merger costs and other—
 —
84.1
 0.32
Pro forma net income attributable to Evergy, Inc.$669.9
 $2.79
$714.3
 $2.67
Non-GAAP reconciling items:      
Rebranding costs, pre-tax(b)
12.1
 0.05
—
 —
Voluntary severance costs, pre-tax(c)
19.8
 0.08
23.5
 0.09
Composite tax rate change(d)
—
 —
(52.6) (0.20)
Deferral of merger transition costs, pre-tax(e)
—
 —
(28.5) (0.11)
Inventory write-off at retiring generating units, pre-tax(f)
—
 —
31.0
 0.12
Income tax benefit(g)
(7.8) (0.03)(6.8) (0.03)
Adjusted earnings (non-GAAP)$694.0
 $2.89
$680.9
 $2.54
(a)
Reflects pro forma adjustments made in accordance with Article 11 of Regulation S-X and ASC 805 - Business Combinations. See Note 2 to the consolidated financial statements in the Evergy Companies' combined 2018 annual report on Form 10-K for further information regarding these adjustments.
(b)
Reflects external costs incurred to rebrand the legacy Westar Energy and KCP&L utility brands to Evergy and are included in operating and maintenance expense on the consolidated statements of comprehensive income.
(c)
Reflects severance costs incurred associated with certain voluntary severance programs at the Evergy Companies and are included in operating and maintenance expense on the consolidated statements of comprehensive income.
(d)
Reflects the revaluation of Evergy Kansas Central's deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018 and are included in income tax expense on the consolidated statements of comprehensive income.
(e)
Reflects the portion of the $47.8 million deferral of merger transition costs to a regulatory asset in June 2018 that related to costs incurred prior to 2018. The remaining merger transition costs included within the $47.8 million deferral were both incurred and deferred in 2018 and did not impact earnings. This item is included in operating and maintenance expense on the consolidated statements of comprehensive income.
(f)
Reflects obsolete inventory write-offs for Evergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center, Units 1 and 2 at Gordon Evans Energy Center, Evergy Metro's Montrose Station and Evergy Missouri West's Sibley Station and are included in operating and maintenance expense on the consolidated statements of comprehensive income.
(g)
Reflects an income tax effect calculated at a 26.1% statutory rate, with the exception of certain non-deductible items.
Wolf Creek Refueling Outage
Wolf Creek's most recent refueling outage began in March 2018September 2019 and the unit returned to service in May 2018.November 2019. Wolf Creek's next refueling outage is planned to begin in the thirdfirst quarter of 2019.2021.
ENVIRONMENTAL MATTERS
See Note 1415 to the consolidated financial statements for information regarding environmental matters.
RELATED PARTY TRANSACTIONS
See Note 1617 to the consolidated financial statements for information regarding related party transactions.

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CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Management considers an accounting estimate to be critical if it requires assumptions to be made that were uncertain at the time the estimate was made and changes in the estimate or different estimates that could have been used could have a material impact on Evergy's results of operations and financial position. Management has identified the following accounting policies as critical to the understanding of Evergy's results of operations and financial position. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Evergy Board.
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Pensions
Evergy incurs significant costs in providing non-contributory defined pension benefits. The costs are measured using actuarial valuations that are dependent upon numerous factors derived from actual plan experience and assumptions of future plan experience.
Pension costs are impacted by actual employee demographics (including age, life expectancies, compensation levels and employment periods), earnings on plan assets, the level of contributions made to the plan, and plan amendments. In addition, pension costs are also affected by changes in key actuarial assumptions, including anticipated rates of return on plan assets and the discount rates used in determining the projected benefit obligation and pension costs.
The assumed rate of return on plan assets was developed based on the weighted-average of long-term returns forecast for the expected portfolio mix of investments held by the plan. The assumed discount rate was selected based on the prevailing market rate of fixed income debt instruments with maturities matching the expected timing of the benefit obligation. These assumptions, updated annually at the measurement date, are based on management's best estimates and judgment; however, material changes may occur if these assumptions differ from actual events. See Note 910 to the consolidated financial statements for information regarding the assumptions used to determine benefit obligations and net costs.
The following table reflects the sensitivities associated with a 0.5% increase or a 0.5% decrease in key actuarial assumptions for Evergy's qualified pension plans. Each sensitivity reflects the impact of the change based on a change in that assumption only.only.
  Impact on  Impact on
  Projected2019  Projected2020
Change inBenefitPensionChange inBenefitPension
Actuarial assumptionAssumptionObligationExpenseAssumptionObligationExpense
  (millions)  (millions)
Discount rate0.5%increase $(173.9) $(19.0) 0.5%increase $(197.7) $(20.2) 
Rate of return on plan assets0.5%increase —
 (8.1) 0.5%increase —
 (8.2) 
Rate of compensation0.5%increase 40.5
 8.5
 0.5%increase 48.9
 9.7
 
Discount rate0.5%decrease 197.3
 21.3
 0.5%decrease 223.4
 22.5
 
Rate of return on plan assets0.5%decrease —
 8.1
 0.5%decrease —
 8.2
 
Rate of compensation0.5%decrease (36.4) (7.7) 0.5%decrease (45.7) (9.0) 
Pension expense for Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West is recorded in accordance with rate orders from the KCC and MPSC. The orders allow the difference between pension costs under GAAP and pension costs for ratemaking to be recorded as a regulatory asset or liability with future ratemaking recovery or refunds, as appropriate.
In 2018,2019, Evergy's pension expense was $90.1$131.3 million under GAAP and $98.4$168.7 million for ratemaking. The impact on 20192020 pension expense in the table above reflects the impact on GAAP pension costs. Under the Evergy Companies' rate agreements, any increase or decrease in GAAP pension expense would beis deferred into a regulatory asset or

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liability for future ratemaking treatment. See Note 910 to the consolidated financial statements for additional information regarding the accounting for pensions.
Market conditions and interest rates significantly affect the future assets and liabilities of the plan. It is difficult to predict future pension costs, changes in pension liability and cash funding requirements due to the inherent uncertainty of market conditions.
Revenue Recognition
Evergy recognizes revenue on the sale of electricity to customers over time as the service is provided in the amount it has the right to invoice. Revenues recorded include electric services provided but not yet billed by Evergy. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the
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month. This estimate is based on net system kWh usage less actual billed kWhs. Evergy's estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates. Evergy's unbilled revenue estimate is affected by factors including fluctuations in energy demand, weather, line losses and changes in the composition of customer classes. See Note 4 for the balance of unbilled receivables for Evergy as of December 31, 20182019 and 2017.2018.
Regulatory Assets and Liabilities
Evergy has recorded assets and liabilities on its consolidated balance sheets resulting from the effects of the ratemaking process, which would not otherwise be recorded under GAAP. Regulatory assets represent incurred costs that are probable of recovery from future revenues. Regulatory liabilities represent future reductions in revenues or refunds to customers.
Management regularly assesses whether regulatory assets and liabilities are probable of future recovery or refund by considering factors such as decisions by the MPSC, KCC or FERC in Evergy's rate case filings; decisions in other regulatory proceedings, including decisions related to other companies that establish precedent on matters applicable to Evergy; and changes in laws and regulations. If recovery or refund of regulatory assets or liabilities is not approved by regulators or is no longer deemed probable, these regulatory assets or liabilities are recognized in the current period results of operations. Evergy's continued ability to meet the criteria for recording regulatory assets and liabilities may be affected in the future by restructuring and deregulation in the electric industry or changes in accounting rules. In the event that the criteria no longer applied to all or a portion of Evergy's operations, the related regulatory assets and liabilities would be written off unless an appropriate regulatory recovery mechanism were provided. Additionally, these factors could result in an impairment on utility plant assets. See Note 5 to the consolidated financial statements for additional information.
Impairments of Assets and Goodwill
Long-lived assets are required to be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable as prescribed under GAAP.
Accounting rules require goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. Evergy's consolidated operations are considered one reporting unit for assessment of impairment, as management assesses financial performance and allocates resources on a consolidated basis. Evergy's firstThe annual impairment test for the $2,338.9$2,336.6 million of goodwill from the Great Plains Energy and Westar EnergyEvergy Kansas Central merger will bewas conducted on May 1, 2019. The fair value of the reporting unit substantially exceeded the carrying amount, including goodwill. As a result, there was no impairment of goodwill.
Evergy anticipates that theThe determination of fair value for the reporting unit will consistconsisted of two valuation techniques: an income approach consisting of a discounted cash flow analysis and a market approach consisting of a determination of reporting unit invested capital using a market multiplesmultiple derived from the historical revenue, earnings before interest, income taxes, depreciation and amortization net utility asset values and market prices of the stock of peer companies. The results of the two techniques will be

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were evaluated and weighted to determine a point within the range that management considersconsidered representative of fair value for the reporting unit, which involves a significant amount of management judgment.
The discounted cash flow analysis is most significantly impacted by two assumptions: estimated future cash flows and the discount rate applied to those cash flows. Management will determinedetermines the appropriate discount rate to be based on the reporting unit's weighted average cost of capital (WACC). The WACC takes into account both the return on equity authorized by the KCC and MPSC and after-tax cost of debt. Estimated future cash flows are based on Evergy's internal business plan, which assumes the occurrence of certain events in the future, such as the outcome of future rate filings, future approved rates of return on equity, anticipated earnings/returns related toof and earnings on future capital investments, continued recovery of cost of service and the renewal of certain contracts. Management also makes assumptions regarding the run rate of operations, maintenance and general and administrative costs based on the expected outcome of the aforementioned events. Should the actual outcome of some or all of these assumptions
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differ significantly from the current assumptions, revisions to current cash flow assumptions could cause the fair value of the Evergy reporting unit under the income approach to be significantly different in future periods and could result in a future impairment charge to goodwill.
The market approach analysis is most significantly impacted by management's selection of relevant peer companies as well as the determination of an appropriate control premium to be added to the calculated invested capital of the reporting unit, as control premiums associated with a controlling interest are not reflected in the quoted market price of a single share of stock. Management will determinedetermines an appropriate control premium by using an average of control premiums for recent acquisitions in the industry. Changes in results of peer companies, selection of different peer companies and future acquisitions with significantly different control premiums could result in a significantly different fair value of the Evergy reporting unit.
Income Taxes
Income taxes are accounted for using the asset/liability approach. Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Deferred investment tax credits are amortized ratably over the life of the related property. Deferred tax assets are also recorded for net operating losses, capital losses and tax credit carryforwards. Evergy is required to estimate the amount of taxes payable or refundable for the current year and the deferred tax liabilities and assets for future tax consequences of events reflected in Evergy's consolidated financial statements or tax returns. Actual results could differ from these estimates for a variety of reasons including changes in income tax laws, enacted tax rates and results of audits by taxing authorities. This process also requires management to make assessments regarding the timing and probability of the ultimate tax impact from which actual results may differ. Evergy records valuation allowances on deferred tax assets if it is determined that it is more likely than not that the asset will not be realized. See Note 1920 to the consolidated financial statements for additional information.
Asset Retirement Obligations
Evergy has recognized legal obligations associated with the disposal of long-lived assets that result from the acquisition, construction, development or normal operation of such assets. Concurrent with the recognition of the liability, the estimated cost of the ARO incurred at the time the related long-lived assets were either acquired, placed in service or when regulations establishing the obligation became effective.effective is also recorded to property, plant and equipment, net on the consolidated balance sheets. The recording of AROs for regulated operations has no income statement impact due to the deferral of the adjustments through the establishment of a regulatory asset or an offset to a regulatory liability.
Evergy initially recorded AROs at fair value for the estimated cost to decommission Wolf Creek (94% indirect share), retire wind generating facilities, dispose of asbestos insulating material at its power plants, remediate ash disposal ponds and close ash landfills, among other items. ARO refers to a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement may be conditional on a future event that may or may not be within the control of the entity. In determining Evergy's AROs, assumptions are made regarding probable future disposal costs and the timing of their occurrence. A change in these assumptions could have a significant impact on Evergy's AROs reflected on its consolidated balance sheets.

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As of December 31, 20182019 and 2017,2018, Evergy had recorded AROs of $687.1$674.1 million and $405.1$687.1 million, respectively. See Note 67 to the consolidated financial statements for more information regarding Evergy's AROs.
EVERGY RESULTS OF OPERATIONS
Evergy's results of operations and financial position are affected by a variety of factors including rate regulation, fuel costs, weather, customer behavior and demand, the economy and competitive forces.
Substantially all of Evergy's revenues are subject to state or federal regulation. This regulation has a significant impact on the price the Evergy Companies charge for electric service. Evergy's results of operations and financial position are affected by its ability to align overall spending, both operating and capital, within the frameworks established by its regulators.
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Wholesale revenues are impacted by, among other factors, demand, cost and availability of fuel and purchased power, price volatility, available generation capacity, transmission availability and weather.
The Evergy Companies primarily use coal and uranium for the generation of electricity for their customers and also purchase power through purchase power agreements or on the open market. The prices for these commoditiesfuel used in generation or the market price of purchased power can fluctuate significantly due to a variety of factors including supply, demand, weather and the broader economic environment. Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West have fuel recovery mechanisms in their Kansas and Missouri jurisdictions, as applicable, that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in net energy costs from the amount set in base rates without a general rate case proceeding.
Weather significantly affects the amount of electricity that Evergy's customers use as electricity sales are seasonal. As summer peaking utilities, the third quarter typically accounts for the greatest electricity sales by the Evergy Companies. Hot summer temperatures and cold winter temperatures prompt more demand, especially among residential and commercial customers, and to a lesser extent, industrial customers. Mild weather reduces customer demand.
Energy efficiency investments by customers and the Evergy Companies also can affect the demand for electric service. Through the Missouri Energy Efficiency Investment Act (MEEIA), KCP&LEvergy Metro and GMOEvergy Missouri West offer energy efficiency and demand side management programs to their Missouri retail customers and recover program costs, throughput disincentive, and as applicable, certain performance incentivesearnings opportunities in retail rates through a rider mechanism.
The Evergy Companies' taxes other than income taxes, of which property taxes are a significant component, can fluctuate significantly due to a variety of factors, including changes in taxable values and property tax rates. Evergy Kansas Central and Evergy Metro's Kansas jurisdiction have property tax surcharges that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in property tax costs from the amounts set in base rates without a general rate case proceeding.

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The following table summarizes Evergy's comparative results of operations.
2018 Change 2017 Change 20162019 Change 2018 Change 2017
(millions)(millions)
Operating revenues$4,275.9
 $1,704.9
 $2,571.0
 $8.9
 $2,562.1
$5,147.8
 $871.9
 $4,275.9
 $1,704.9
 $2,571.0
Fuel and purchased power1,078.7
 537.2
 541.5
 32.0
 509.5
1,265.0
 186.3
 1,078.7
 537.2
 541.5
SPP network transmission costs259.9
 12.0
 247.9
 15.1
 232.8
251.3
 (8.6) 259.9
 12.0
 247.9
Other operating expenses1,384.9
 653.8
 731.1
 (47.8) 778.9
Operating and maintenance1,218.5
 102.7
 1,115.8
 552.3
 563.5
Depreciation and amortization618.8
 247.1
 371.7
 33.2
 338.5
861.7
 242.9
 618.8
 247.1
 371.7
Taxes other than income tax365.5
 96.4
 269.1
 101.5
 167.6
Income from operations933.6
 254.8
 678.8
 (23.6) 702.4
1,185.8
 252.2
 933.6

254.8

678.8
Other income (expense), net(54.4) (27.6) (26.8) (25.3) (1.5)
Other expense, net(39.0) 15.4
 (54.4) (27.6) (26.8)
Interest expense279.6
 108.6
 171.0
 9.3
 161.7
374.0
 94.4
 279.6
 108.6
 171.0
Income tax expense59.0
 (92.2) 151.2
 (33.3) 184.5
97.0
 38.0
 59.0
 (92.2) 151.2
Equity in earnings of equity method investees, net of income taxes5.4
 (1.3) 6.7
 0.2
 6.5
9.8
 4.4
 5.4
 (1.3) 6.7
Net income546.0
 209.5
 336.5
 (24.7) 361.2
685.6
 139.6
 546.0

209.5

336.5
Less: Net income attributable to noncontrolling interests10.2
 (2.4) 12.6
 (2.0) 14.6
15.7
 5.5
 10.2
 (2.4) 12.6
Net income attributable to Evergy, Inc.$535.8
 $211.9
 $323.9
 $(22.7) $346.6
$669.9
 $134.1
 $535.8

$211.9

$323.9


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. See Note 3 to the consolidated financial statements for additional information regarding the manner in which Evergy reflects SPP revenues and expenses.
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Management believes that utility gross margin provides a meaningful basis for evaluating the Evergy Companies' operations across periods compared with operating revenues because utility gross margin excludes the revenue 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.  The Evergy Companies' definition of utility gross margin may differ from similar terms used by other companies.

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The following tables summarize Evergy's utility gross margin and MWhs sold.
Utility Gross Margin2018 Change 2017 Change 20162019 Change 2018 Change 2017
Retail revenues(millions)(millions)
Residential$1,578.8
 $777.5
 $801.3
 $(23.9) $825.2
$1,908.1
 $329.3
 $1,578.8
 $777.5
 $801.3
Commercial1,356.4
 644.7
 711.7
 (16.9) 728.6
1,781.6
 425.2
 1,356.4
 644.7
 711.7
Industrial527.8
 114.9
 412.9
 7.1
 405.8
621.6
 93.8
 527.8
 114.9
 412.9
Other retail revenues30.6
 7.8
 22.8
 0.8
 22.0
47.1
 16.5
 30.6
 7.8
 22.8
Total electric retail3,493.6
 1,544.9
 1,948.7
 (32.9) 1,981.6
4,358.4
 864.8
 3,493.6
 1,544.9
 1,948.7
Wholesale revenues404.4
 73.2
 331.2
 14.9
 316.3
327.5
 (76.9) 404.4
 73.2
 331.2
Transmission revenues308.1
 23.3
 284.8
 26.1
 258.7
309.2
 1.1
 308.1
 23.3
 284.8
Other revenues69.8
 63.5
 6.3
 0.8
 5.5
152.7
 82.9
 69.8
 63.5
 6.3
Operating revenues4,275.9
 1,704.9
 2,571.0
 8.9
 2,562.1
5,147.8
 871.9
 4,275.9
 1,704.9
 2,571.0
Fuel and purchased power(1,078.7) (537.2) (541.5) (32.0) (509.5)(1,265.0) (186.3) (1,078.7) (537.2) (541.5)
SPP network transmission costs(259.9) (12.0) (247.9) (15.1) (232.8)(251.3) 8.6
 (259.9) (12.0) (247.9)
Utility gross margin (a)
$2,937.3
 $1,155.7
 $1,781.6
 $(38.2) $1,819.8
$3,631.5
 $694.2
 $2,937.3
 $1,155.7
 $1,781.6
(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.
(a) Utilitygross margin is a non-GAAP financial measure.  See explanation of utility gross margin above.
MWh Sales2018 Change 2017 Change 20162019 Change 2018 Change 2017
Retail MWh Sales(thousands)(thousands)
Residential12,478
 6,315
 6,163
 (271) 6,434
15,492
 3,014
 12,478
 6,315
 6,163
Commercial14,129
 6,761
 7,368
 (176) 7,544
18,295
 4,166
 14,129
 6,761
 7,368
Industrial7,426
 1,737
 5,689
 190
 5,499
8,570
 1,144
 7,426
 1,737
 5,689
Other retail revenues110
 37
 73
 (4) 77
139
 29
 110
 37
 73
Total electric retail34,143
 14,850
 19,293
 (261) 19,554
42,496
 8,353
 34,143
 14,850
 19,293
Wholesale revenues13,811
 3,465
 10,346
 2,047
 8,299
14,398
 587
 13,811
 3,465
 10,346
Operating revenues47,954
 18,315
 29,639
 1,786
 27,853
56,894
 8,940
 47,954
 18,315
 29,639
Evergy's utility gross margin increased $1,155.7$694.2 million in 20182019 compared to 20172018 driven by:
an $1,181.5a $674.4 million increase due to the inclusion of KCP&L'sEvergy Metro's and GMO'sEvergy Missouri West's utility gross margin beginningin the first five months of 2019;
a $59.7 million increase in revenue due to one-time bill credits recorded by Evergy Kansas Central, Evergy Metro and Evergy Missouri West in June 2018;2018 as a result of conditions in the KCC and MPSC merger orders; and
a $75.0$41.6 million increase primarily due to higher Westar Energyfrom new Evergy Kansas Central, Evergy Metro and Evergy Missouri West retail sales driven by warmer spring and summer weather and colder winter weather. Forrates effective in 2018, compared to 2017, cooling degree days increased 31% and heating degree days increased 23%; partially offset by
net of a $69.8$124.2 million provision for rate refund recorded at Westar Energyin 2018 for the change in the corporate income tax rate caused by the passage of the TCJA. See Note 19 to the consolidated financial statements for additional information; andTCJA; partially offset by
a $31.0$53.0 million reduction in revenue recorded at Westar Energy for one-time and annual bill credits as a result of conditions in the KCC merger order. See Note 2 to the consolidated financial statements for additional information.
Evergy's utility gross margin decreased $38.2 million in 2017 compared to 2016decrease primarily due to lower Westar EnergyEvergy Kansas Central, Evergy Metro and Evergy Missouri West retail sales driven by mildercooler summer weather. For 20172019 compared to 2016,2018, cooling degree days decreased 13%.16%;
a $12.9 million decrease related to Evergy Kansas Central's transmission delivery charge (TDC) rider;
a $10.2 million decrease in revenue related to the granting of an Accounting Authority Order (AAO) by the MPSC in October 2019 requiring Evergy Missouri West to record a regulatory liability for the estimated amount of revenues it has collected from customers for certain costs related to Sibley Station since its retirement in November 2018; and
a $5.4 million decrease for recovery of programs costs for energy efficiency programs under MEEIA, which have a direct offset in operating and maintenance expense.

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Other Operating Expenses (includingand Maintenance
Evergy's operating and maintenance expense and taxes other than income tax)
Evergy's other operating expenses increased $653.8$102.7 million in 20182019 compared to 20172018 primarily driven by:
a $453.0$279.9 million increase in operating and maintenance expense due to the inclusion of KCP&L'sEvergy Metro's and GMO'sEvergy Missouri West's operating and maintenance expenses beginning in June 2018, excluding the deferralfirst five months of merger transition costs discussed below;2019;
$69.512.1 million of rebranding costs incurred in 2019 to rebrand the legacy Westar Energy and KCP&L utility brands to Evergy; and
$11.8 million of Evergy Kansas Central, Evergy Metro and Evergy Missouri West voluntary severance expenses incurred in 2019; partially offset by
$75.8 million of merger-related costs incurred following the close of the merger in June 2018, consisting of:
◦$51.0 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees;
◦$47.9 million of Evergy Kansas Central and Evergy Metro voluntary severance and change in control payments as well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding Evergy Kansas Central equity compensation awards in accordance with the Amended Merger Agreement; and
◦$24.7 million of unconditional charitable contributions and community support recorded by Evergy in accordance with conditions in the KCC and MPSC merger orders;
◦$44.2 million of Westar Energy change in control payments, Westar Energy voluntary severance and the recording of unrecognized equity compensations costs and the incremental fair value associated with the vesting of outstanding Westar Energy equity compensation awards in accordance with the Amended Merger Agreement; and
◦$48.4 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; partially offset by
◦a $47.8 million decrease in operating and maintenance expense due to the deferral of merger transition costs to a regulatory asset in June 2018 for future recovery by Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West in accordance with the KCC and MPSC merger orders;
a $95.3 million increase in taxes other than income taxes due to the inclusion of KCP&L and GMO amounts beginning in June 2018;
$12.3 million of obsolete inventory write-offs for Westar Energy's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center and Units 1 and 2 at Gordon Evans Energy Center, which were retired in the fourth quarter of 2018; and
a $5.5 million increase due to Westar Energy's 47% share of voluntary severance expenses incurred related to the Wolf Creek voluntary exit program.
Evergy's other operating expenses decreased $47.8 million in 2017 compared to 2016 primarily driven by:
a $24.2$62.1 million decrease in Westar Energy's property tax expense due to a decrease in amortization of the regulatory asset comprised of actual costs incurred for property taxes in the prior year in excess of amounts collected in prices in the prior year, which is mostly offset in retail revenues;
an $8.6 million decrease in Westar Energy's transmission and distribution expense due to higher grid resiliency costs in 2016 and receiving credit for assisting other utilities with mutual aid during an active hurricane season, which offsets operating and maintenance expense;
a $7.1 million decrease in Westar Energy's employee at-risk compensation that is payable only upon meeting pre-established operating and financial objectives;
a $5.8 million decrease in Westar Energy's nuclear operating and maintenance costs primarily due to receiving a legal settlement related to Wolf Creek in 2017; and
a $4.9 million decrease in Westar Energy'splant operating and maintenance expense at coal fired plantsfossil-fuel generating units primarily due to a planned outage at Jeffrey Energy Center in 2016; partially offset by
an $8.8 million increase in Westar Energy's operating and maintenance expense due to the start of operations at the Western Plains Wind Farm in March 2017.
Depreciation and Amortization
Evergy's depreciation and amortization increased $247.1 million in 2018 compared to 2017 primarily driven by a $227.9 million increase due to the inclusion of KCP&L's and GMO's depreciation expense beginning in June 2018.
Evergy's depreciation and amortization increased $33.2 million in 2017 compared to 2016 primarily driven by the start of operations at Westar Energy's Western Plains Wind Farm in March 2017.
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Other Income (Expense), Net
Evergy's other expense, net increased $27.6 million in 2018 compared to 2017 primarily driven by:
a $25.7 million increase due to the inclusion of KCP&L and GMO amounts beginning in June 2018; and
a $4.6 million decrease in Westar Energy's investment earnings primarily due to a decrease in interest and dividend income.
Evergy's other expense, net increased $25.3 million in 2017 compared to 2016 primarily driven by:
a $26.3 million decrease in Westar Energy's other income primarily consisting of:to:
◦a $19.5$15.0 million decrease due to recording higher corporate-owned life insurance (COLI) benefitsthe retirement of Evergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center, Units 1 and 2 at Gordan Evans Energy Center and Evergy Metro's Montrose Station and Evergy Missouri West's Sibley Station in 2016;the fourth quarter of 2018;
◦$31.0 million of Evergy Kansas Central, Evergy Metro and Evergy Missouri West obsolete inventory write-offs at retiring fossil-fuel units in 2018;
◦$5.2 million of voluntary severance expenses incurred in the third quarter of 2018 by Evergy Kansas Central, Evergy Metro and Evergy Missouri West related to their Local 1523 and Local 412 union voluntary exit programs; and
◦a $9.6$3.7 million decrease due to an extended maintenance outage at Evergy Metro's Iatan No. 2 in equity allowance for funds used during construction (AFUDC);2018; partially offset by
◦a $3.5an $8.4 million increase relateddue to the deconsolidationwrite-off of a regulatory asset for costs incurred during the trust holding Westar Energy's 8% interest in Jeffrey Energy Center.Center (JEC) lease extension, see Note 5 to the consolidated financial statements;
a $35.6 million decrease in various administrative and general operating and maintenance expenses primarily driven by a $15.3 million decrease in labor and employee benefits expense primarily due to lower employee headcount and Evergy Kansas Central pension and post-retirement costs in 2019 and $10.6 million of voluntary severance expenses incurred in the third quarter of 2018 by Evergy Kansas Central and Evergy Metro related to a Wolf Creek voluntary exit program;
a $9.5 million decrease in plant operating and maintenance expense at nuclear generating units related to Wolf Creek;
a $9.3 million decrease in transmission and distribution operating and maintenance expense primarily due to a higher level of Evergy Kansas Central vegetation management activity in 2018; and

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a $5.4 million decrease in program costs for energy efficiency programs under MEEIA, which have a direct offset in revenue.
Depreciation and Amortization
Evergy's depreciation and amortization increased $242.9 million in 2019 compared to 2018 driven by:
a $173.4 million increase due to the inclusion of Evergy Metro's and Evergy Missouri West's depreciation expense in the first five months of 2019;
a $43.0 million increase primarily due to a change in depreciation rates as a result of Evergy Kansas Central's and Evergy Metro's rate cases effective in 2018; and
a $26.5 million increase primarily due to capital additions at Evergy Kansas Central and Evergy Metro.
Taxes Other Than Income Tax
Evergy's taxes other than income tax increased $96.4 million in 2019 compared to 2018 primarily driven by:
a $75.7 million increase due to the inclusion of Evergy Metro and Evergy Missouri West amounts in the first five months of 2019; and
a $22.9 million increase primarily due to increased Evergy Kansas Central property taxes.
Other Expense, Net
Evergy's other expense, net decreased $15.4 million in 2019 compared to 2018 primarily driven by:
a $12.4 million decrease due to recording higher Evergy Kansas Central corporate-owned life insurance (COLI) benefits in 2019;
a $6.3 million decrease due to lower Evergy Kansas Central and Evergy Metro pension non-service costs in 2019; and
a $4.2 million decrease due to higher net unrealized gains in Evergy Kansas Central's rabbi trust in 2019; partially offset by
a $9.5 million increase due to the inclusion of Evergy Metro and Evergy Missouri West amounts in the first five months of 2019.
Interest Expense
Evergy's interest expense increased $108.6$94.4 million in 20182019 compared to 20172018 primarily driven by by:
a $102.8$77.2 million increase due to the inclusion of KCP&L'sEvergy Metro's and GMO'sEvergy Missouri West's interest expense beginning in June 2018 and Evergy's assumption of Great Plains Energy's $350.0 million of 4.85% unsecured Senior Notes and $287.5 million of 5.292% unsecured Senior Notes upon the consummation of the merger.
Evergy's interest expense increased $9.3associated with the assumption of legacy Great Plains Energy debt in the first five months of 2019;
a $14.5 million increase due to Evergy's issuance of $1.6 billion of senior notes in 2017 comparedSeptember 2019; and
a $7.7 million increase primarily due to 2016 primarily drivenEvergy's borrowings under its $1.0 billion term loan credit agreement in 2019; partially offset by an increase
a $10.1 million net decrease due to the repayment of Evergy Metro's $400.0 million of 7.15% Mortgage Bonds at maturity in Westar Energy'sApril 2019, which decreased interest expense on long-term debt of $4.9by $19.8 million, aspartially offset by a result of the$9.7 million increase due to Evergy Metro's issuance of first mortgage bonds (FMBs)$400.0 million of 4.125% Mortgage Bonds in excess of retirements and a $4.4 million decrease in debt AFUDC.March 2019.
Income Tax Expense
Evergy's income tax expense decreased $92.2increased $38.0 million in 20182019 compared to 20172018 primarily driven by:
a $53.4$52.6 million decreaseincrease related to the revaluation of Westar Energy'sEvergy Kansas Central's deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger;merger in 2018; and
a $58.4an $18.9 million decreaseincrease due to lower Westar Energy pre-tax income; and
a $44.3 million decrease in Westar Energy's income tax expense as a result of the decrease in the federal statutory income tax rate in 2018; partially offset by
a $63.2 million increase as a result of the inclusion of income tax expense related tohigher Evergy Inc. and the subsidiaries of Great Plains Energy beginning in June 2018.
Evergy's income tax expense decreased $33.3 million in 2017 compared to 2016 primarily driven by:
a $24.0 million decrease due to production tax credits, primarily due to the start of operations at Westar Energy's Western Plains Wind Farm in March 2017; and
a $22.9 million decrease due to lower Westar EnergyKansas Central pre-tax income; partially offset by

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a $12.2$39.0 million increase relateddecrease due to the revaluationflow-through items primarily driven by higher amortization of Westar Energy'sexcess deferred income taxes not included in rate base as a result of the enactment of the TCJA in 2017.taxes.
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EVERGY SIGNIFICANT BALANCE SHEET CHANGES
(December 31, 20182019 compared to December 31, 2017)2018)
The following table summarizes Evergy's significant balance sheet changes.
 
Total
Change
 Change Due to Merger 
Remaining
Change
Assets(in millions)
Cash and cash equivalents$156.9
 $1,154.2
 $(997.3)
Accounts receivable, net(97.0) 155.6
 (252.6)
Accounts receivable pledged as collateral365.0
 180.0
 185.0
Fuel inventories and supplies217.4
 271.5
 (54.1)
Income taxes receivable68.0
 0.5
 67.5
Regulatory assets - current204.4
 207.8
 (3.4)
Prepaid expenses and other assets39.3
 182.1
 (142.8)
Property, plant and equipment, net9,228.7
 9,179.7
 49.0
Property, plant and equipment of variable interest entities, net(7.1) —
 (7.1)
Regulatory assets1,072.5
 829.1
 243.4
Nuclear decommissioning trust235.0
 261.3
 (26.3)
Goodwill2,338.9
 2,338.9
 —
Other151.7
 145.5
 6.2
Liabilities     
Current maturities of long-term debt705.4
 415.3
 290.1
Current maturities of long-term debt of variable interest entities1.8
 —
 1.8
Notes payable and commercial paper462.9
 561.0
 (98.1)
Collateralized note payable365.0
 180.0
 185.0
Accounts payable247.3
 191.4
 55.9
Accrued dividends(53.8) 59.4
 (113.2)
Accrued taxes45.9
 82.0
 (36.1)
Accrued interest38.2
 48.0
 (9.8)
Regulatory liabilities - current98.6
 17.7
 80.9
Asset retirement obligations - current24.7
 46.0
 (21.3)
Other current liabilities107.5
 73.1
 34.4
Long-term debt, net2,948.7
 3,358.6
 (409.9)
Long-term debt of variable interest entities, net(30.3) —
 (30.3)
Deferred income taxes783.5
 669.6
 113.9
Unamortized investment tax credits116.1
 124.3
 (8.2)
Regulatory liabilities1,124.8
 1,172.9
 (48.1)
Pension and post-retirement liability496.4
 477.3
 19.1
Asset retirement obligations257.3
 366.1
 (108.8)
Other long-term liabilities103.4
 83.1
 20.3
Change Duecash and cash equivalents decreased $137.1 million primarily due to Merger as reflectedthe repurchase of common stock in the table above represents the preliminary purchase price allocation to Great Plains Energy's assets and liabilities as of June 4, 2018.connection with Evergy's share repurchase program. See Note 218 to the consolidated financial statements for additional information regarding changes inon Evergy's balance sheetshare repurchase program.
Evergy's income tax receivable increased by $17.5 million primarily due to the merger.$37.9 million reclassification of Evergy's 2019 alternative minimum tax (AMT) credits from deferred income taxes, partially offset by the receipt of $18.6 million in 2019 related to Evergy's 2018 AMT tax credit.
Evergy's regulatory assets - current decreased by $72.2 million primarily due to fuel recovery mechanism recoveries exceeding under-collections at Evergy Metro and Evergy Missouri West by $30.7 million and $24.3 million in 2019, respectively.
•
Evergy's other assets increased by $115.0 million primarily due to $104.5 million of operating lease right-of-use assets, as of December 31, 2019, that were recorded as a result of Topic 842, Leases in 2019. See Note 1 to the consolidated financial statements for additional information on the new lease standard.
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The following are significant balance sheet changes in addition to thoselong-term debt decreased by $454.3 million primarily due to the Great Plains Energy and Westar Energy merger:repayment of Evergy Metro's $400.0 million of 7.15% Mortgage Bonds at maturity in April 2019.
Evergy's notes payable and commercial paper decreased $176.7 million primarily due to a $162.5 million decrease at Evergy Kansas Central due to the repayment of commercial paper with funds from operations and a $56.6 million decrease at Evergy Missouri West primarily due to the repayment of commercial paper with the proceeds from its issuance of $100.0 million of 3.74% Senior Notes in March 2019, partially offset by a $20.0 million increase at Evergy, Inc. due to cash borrowings under its master credit facility.
Evergy's accounts payable increased $77.3 million primarily due to the timing of cash payments.
Evergy's regulatory liabilities - current decreased $46.9 million primarily due to a $70.9 million refund to customers of tax reform benefits at Evergy Kansas Central, Evergy Metro and cash equivalentsEvergy Missouri West in 2019, partially offset by a $30.2 million increase in Evergy Kansas Central's regulatory liability for its fuel recovery mechanism due to recoveries exceeding under-collections.
•
Evergy's other liabilities - current increased $48.9 million primarily due to a $23.7 million increase in funds received from customers for the construction of transmission assets at Evergy Kansas Central and $15.6 million of operating lease liabilities, as of December 31, 2019, that were recorded as a result of the adoption of Topic 842, Leases in 2019. See Note 1 to the consolidated financial statements for additional information on the new lease standard.
Evergy's long-term debt increased by $2,110.4 million primarily due to the issuance of Evergy's $1.6 billion of senior notes in September 2019 and Evergy Metro's issuance of $400.0 million of 4.125% Mortgage Bonds in March 2019.
•
Evergy's other liabilities - long-term increased $104.0 million primarily due to $82.4 million of operating lease liabilities, as of December 31, 2019, that were recorded as a result of the adoption of Topic 842, Leases in 2019. See Note 1 to the consolidated financial statements for additional information on the new lease standard.
Evergy's common stock decreased $997.3$1,614.8 million primarily due to the repurchase of common stock for a total cost of approximately $1,042$1,628.7 million in connection with2019 pursuant to Evergy's share repurchase program. See Note 1718 to the consolidated financial statements for additional information on Evergy's share repurchase program.
Evergy's receivables, net decreased $252.6 million primarily due to Westar Energy's entry into a receivable sale facility in December 2018 for an initial amount $185.0 million. This sale of the undivided percentage ownership interest in accounts receivable resulted in the reduction of receivables, net and an increase in accounts receivables pledged as collateral and collateralized note payable of $185.0 million. See Note 4 to the consolidated financial statements for additional information regarding Westar Energy's receivable sale facility.
Evergy's receivables pledged as collateral and collateralized note payable increased $185.0 million due to Westar Energy's entry into a receivable sale facility in December 2018.
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Evergy's fuel inventories and supplies decreased $54.1 million primarily due to $31.0 million of obsolete inventory write-offs at Westar Energy's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center, Units 1 and 2 at Gordon Evans Energy Center, KCP&L's Montrose Station and GMO's Sibley Station, which were all retired in the fourth quarter of 2018.
Evergy's income taxes receivable increased $67.5 million primarily due to refundable alternative minimum tax (AMT) credits that Evergy expects to receive in 2019.
Evergy's prepaid expenses and other assets decreased $142.8 million primarily due to the $140.6 million settlement of deal contingent interest rate swaps entered into by Great Plains Energy that settled following the consummation of the merger in June 2018.
Evergy's regulatory assets increased by $243.4 million primarily due to the reclassification of retired generating plant of $159.9 million related to GMO's Sibley No. 3 Unit from property, plant and equipment, net to a regulatory asset upon the retirement of the unit in 2018.
Evergy's current maturities of long-term debt increased by $290.1 million primarily due to the reclassification of KGE's $300.0 million of 6.70% Series First Mortgage Bonds from long-term to current.
Evergy's notes payable and commercial paper decreased $98.1 million primarily due to the repayment of commercial paper with funds from operations at KCP&L and GMO.
Evergy's accounts payable increased $55.9 million primarily due to the timing of cash payments.
Evergy's accrued dividends decreased $113.2 million due to Evergy's assumption and subsequent payment of Great Plains Energy's $59.4 million of accrued common stock dividends following the consummation of the merger and the timing of payment between Evergy's common stock dividend declared in November 2018, which was paid in December 2018, and its common stock dividend declared in November 2017, which was paid in January 2018 and was reflected as accrued dividends of $53.8 million as of December 31, 2017.
Evergy's current regulatory liabilities increased $80.9 million primarily due to $71.2 million of refund obligations recorded by KCP&L and GMO consisting of $63.7 million related to the TCJA and $7.5 million related to one-time customer merger bill credits.
Evergy's current asset retirement obligations decreased $21.3 million primarily due to lower expected cash flows in the next twelve months as of December 31, 2018, compared to December 31, 2017, related to closure costs for ponds containing coal combustion residuals (CCRs) at La Cygne Station and Iatan Station.
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Evergy's long-term debt decreased by $409.9 million primarily due to the reclassification of KGE's $300.0 million of 6.70% Series First Mortgage Bonds from long-term to current and the redemption of $104.0 million of GMO's Series A and B Senior Notes in 2018.
Evergy's long-term debt of variable interest entities, net decreased $30.3 million primarily due to the VIE that holds the La Cygne Unit 2 leasehold interest having made principal payments totaling $28.5 million.
Evergy's deferred income taxes increased $113.9 million primarily due to the reclassification of refundable AMT credits that Evergy expects to receive in 2019 to income taxes receivable.
Evergy's asset retirement obligations decreased $108.8 million primarily due to a $127.0 million decrease in Evergy's and Westar Energy's AROs for a revision in estimate primarily related to Westar Energy's ARO to decommission its 47% ownership share of Wolf Creek. See Note 6 to the consolidated financial statements for additional information.
LIQUIDITY AND CAPITAL RESOURCES
Evergy relies primarily upon cash from operations, short-term borrowings, debt and equity issuances and its existing cash and cash equivalents to fund its capital requirements. Evergy's capital requirements primarily consist of capital expenditures, payment of contractual obligations and other commitments, the payment of dividends to shareholders and the repurchase of common shares.
Capital Sources
Cash Flows from Operations
Evergy's cash flows from operations are driven by the regulated sale of electricity. These cash flows are relatively stable but the timing and level of these cash flows can vary based on weather and economic conditions, future regulatory proceedings, the timing of cash payments made for costs recoverable under regulatory mechanisms and the time such costs are recovered, and unanticipated expenses such as unplanned plant outages and/orand storms.
Short-Term Borrowings
As of December 31, 2018,2019, Evergy had $1.7$1.9 billion of available borrowing capacity from its master credit facility. The available borrowing capacity under the master credit facility consisted of $429.3 million for Evergy, Inc., $736.6 million for Evergy Kansas Central, $400.7 million for Evergy Metro and receivable sale facilities. Westar Energy's, KCP&L's$354.5 million for Evergy Missouri West. Evergy Kansas Central's, Evergy Metro's and GMO'sEvergy Missouri West's borrowing capacity under the master credit facility also supportsupports their issuance of commercial paper. The available borrowing capacity consisted of $449.0 million from Evergy, Inc.'s master credit facility, $570.0 million from Westar Energy's credit facilities, $420.4 million from KCP&L's credit facilities and $297.9 million from GMO's credit facilities. See Notes 4 and 11Note 12 to the consolidated financial statements for more information regarding the receivable sale facilities and master credit facility, respectively.facility. Along with cash flows from operations and receivable sales facilities, Evergy generally uses these liquid resourcesborrowings under its master credit facility and the issuance of commercial paper to meet its day-to-day cash flow requirements. Evergy also had short-term borrowings under a term loan credit agreement that was repaid in September 2019 and is discussed further below.
In March 2019, Evergy entered into a $1.0 billion, 6-month term loan credit agreement with a group of banks to provide short-term financing for its common stock repurchase program. The agreement allowed for two term loans during the 6-month term of the agreement, in an aggregate principal amount not to exceed the credit limit of the agreement. At closing, Evergy borrowed $500.0 million under the agreement, allowing for one additional term loan borrowing in a principal amount up to $500.0 million, which was subsequently utilized in June 2019. In September 2019, Evergy repaid its $1.0 billion of borrowings under the term loan credit agreement with proceeds from its issuance of $1.6 billion of senior notes in September 2019.
Long-Term Debt and Equity Issuances
From time to time, Evergy issues long-term debt and/orand equity to repay short-term debt, refinance maturing long-term debt and finance growth. As of December 31, 20182019 and 2017,2018, Evergy’s capital structure, excluding short-term debt, was as follows:
 December 31
 2018 2017
Common equity57% 51%
Noncontrolling interests<0% <0%
Long-term debt, including VIEs43% 49%
After the completion of its common stock repurchase program, Evergy anticipates targeting a common equity to total capitalization ratio of approximately 47%-50%. Following the utilization of its excess cash and cash equivalents discussed further below, Evergy anticipates issuing debt in 2019 in support of its common stock
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repurchase program. See "Liquidity and Capital Resources - Capital Requirements - Common Stock Repurchase Program" for additional information.
 December 31
 2019 2018
Common equity49% 57%
Noncontrolling interests<0% <0%
Long-term debt, including VIEs51% 43%
Under stipulations with the MPSC and KCC, Evergy, Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro are required to maintain common equity at not less than 35%, 40% and 40%, respectively, of total capitalization. The master credit facility and certain debt instruments of the Evergy Companies also contain restrictions that require the maintenance of certain capitalization and leverage ratios. As of December 31, 2018,2019, the Evergy Companies were in compliance with these covenants.
Significant Debt Issuances
See Note 1213 to the consolidated financial statements for information regarding significant debt issuances.

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Credit Ratings
The ratings of the Evergy Companies' debt securities by the credit rating agencies impact theirthe Evergy Companies' liquidity, including the cost of borrowings under their master credit facility and in the capital markets. The Evergy Companies view maintenance of strong credit ratings as vital to their access to and cost of debt financing and, to that end, maintain an active and ongoing dialogue with the agencies with respect to results of operations, financial position and future prospects. While a decrease in these credit ratings would not cause any acceleration of the Evergy Companies' debt, it could increase interest charges under the master credit facility. A decrease in credit ratings could also have, among other things, an adverse impact, which could be material, on the Evergy Companies' access to capital, the cost of funds, the ability to recover actual interest costs in state regulatory proceedings, the type and amounts of collateral required under supply agreements and Evergy's ability to provide credit support for its subsidiaries.
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As of February 21, 2019,20, 2020, the major credit rating agencies rated the Evergy Companies' securities as detailed in the following table.
 Moody's S&P Global
 
Investors Service(a)
 
Ratings(a)
Evergy       
Outlook Stable   Stable 
Corporate Credit Rating --   A- 
Senior Unsecured Debt Baa2   BBB+ 
        
Westar EnergyEvergy Kansas Central       
Outlook Stable   Stable 
Corporate Credit Rating Baa1   A- 
Senior Secured Debt A2   A 
Commercial Paper P-2   A-2 
        
KGEEvergy Kansas South       
Outlook Stable   Stable 
Corporate Credit Rating Baa1   A- 
Senior Secured Debt A2   A 
Short-Term Rating P-2   A-2 
        
KCP&LEvergy Metro       
Outlook Stable   Stable 
Corporate Credit Rating Baa1   A-A 
Senior Secured Debt A2   AA+ 
Senior Unsecured Debt Baa1   A-A 
Commercial Paper P-2   A-2A-1 
        
GMOEvergy Missouri West       
Outlook Stable   Stable 
Corporate Credit Rating Baa2   A- 
Senior Unsecured Debt Baa2   A- 
Commercial Paper P-2   A-2 
(a)A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency.

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


Westar EnergyEvergy Kansas Central
In November 2018, Westar EnergyEvergy Kansas Central filed an automatic shelf registration statement providing for the sale of unlimited amounts of unsecured debt securities and first mortgage bondsFirst Mortgage Bonds (FMBs) with the SEC, which expires in November 2021.
KCP&LEvergy Metro
In November 2018, KCP&LEvergy Metro filed an automatic shelf registration statement providing for the sale of unlimited amounts of unsecured notes and mortgage bonds with the SEC, which expires in November 2021.
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The following table summarizes the regulatory short-term and long-term debt financing authorizations for Westar Energy, KGE, KCP&LEvergy Kansas Central, Evergy Kansas South, Evergy Metro and GMOEvergy Missouri West and the remaining amount available under these authorizations as of December 31, 2018.2019.
Type of AuthorizationCommissionExpiration DateAuthorization AmountAvailable Under AuthorizationCommissionExpiration DateAuthorization AmountAvailable Under Authorization
Westar Energy & KGE (in millions)
Evergy Kansas Central & Evergy Kansas South (in millions)
Short-Term DebtFERCDecember 2020$1,250.0$838.3FERCDecember 2020$1,250.0$1,000.8
KCP&L  
Evergy Metro  
Short-Term DebtFERCDecember 2020$1,250.0$1,050.7
Evergy Missouri West 
Short-Term DebtFERCDecember 2020$1,250.0$1,073.1FERCDecember 2020$750.0$656.7
Long-Term DebtMPSCSeptember 2019$750.0$450.0FERCDecember 2020$100.0$—
GMO 
Short-Term DebtFERCDecember 2020$750.0$600.0
Long-Term DebtFERCDecember 2020$100.0
In addition to the above regulatory authorizations, the Westar Energy, KGEEvergy Kansas Central, Evergy Kansas South and KCP&LEvergy Metro mortgages each contain provisions restricting the amount of FMBs or mortgage bonds, as applicable, that can be issued by each entity. Westar Energy, KGEEvergy Kansas Central, Evergy Kansas South and KCP&LEvergy Metro must comply with these restrictions prior to the issuance of additional FMBs, general mortgage bonds or other secured indebtedness.
Under the Westar EnergyEvergy Kansas Central mortgage, the issuance of bondsFMBs is subject to limitations based on the amount of bondable property additions. In addition, so long as any bonds issued prior to January 1, 1997, remain outstanding, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Westar Energy’sEvergy Kansas Central’s unconsolidated net earnings available for interest, depreciation and property retirement (which, as defined, does not include earnings or losses attributable to the ownership of securities of subsidiaries), for a period of 12 consecutive months within 15 months preceding the issuance, are not less than the greater of twice the annual interest charges on or 10% of the principal amount of all FMBs outstanding after giving effect to the proposed issuance. As of December 31, 2018, $344.52019, $305.4 million principal amount of additional FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.
Under the KGEEvergy Kansas South mortgage, the amount of FMBs authorized is limited to a maximum of $3.5 billion and the issuance of bondsFMBs is subject to limitations based on the amount of bondable property additions. In addition, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless KGE’sEvergy Kansas South's net earnings before income taxes and before provision for retirement and depreciation of property for a period of 12 consecutive months within 15 months preceding the issuance are not less than either two and one-half times the annual interest

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charges on or 10% of the principal amount of all KGEEvergy Kansas South FMBs outstanding after giving effect to the proposed issuance. As of December 31, 2018, KGE had sufficient capacity2019, approximately $2,828.6 million principal amount of additional Evergy Kansas South FMBs could be issued under the most restrictive provisions in the mortgage, to meet its near term financing and refinancing needs.except in connection with certain refundings.


Under the KCP&L mortgage,General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented (Evergy Metro Mortgage Indenture), additional KCP&LEvergy Metro mortgage bonds may be issued on the basis of 75% of property additions or retired bonds. As of December 31, 2018, KCP&L had sufficient capacity2019, approximately $4,923.3 million principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage to meet its near term financing and refinancing needs.mortgage.


Cash and Cash Equivalents
At December 31, 2018,2019, Evergy had approximately $160.3$23.2 million of cash and cash equivalents on hand. Under the Amended Merger Agreement, Great Plains Energy was required to have not less than $1.25 billion in cash and cash equivalents on its balance sheet at the closing of the merger with Westar Energy. In 2018, Evergy primarily utilized this excess cash to repurchase approximately $1,042 million of common stock. Evergy anticipates that its remaining excess cash will also be returned to shareholders through the repurchase of common stock.
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Capital Requirements
Capital Expenditures
Evergy requires significant capital investments and expects to need cash primarily for utility construction programs designed to improve and expand facilities related to providing electric service, which include, but are not limited to, expenditures to develop new transmission lines and improvements to power plants, transmission and distribution lines and equipment. Evergy's capital expenditures were $1,210.1 million, $1,069.7 million and $764.6 million in 2019, 2018 and $1,087.0 million in 2018, 2017, and 2016, respectively.
Capital expenditures projected for the next five years, excluding AFUDCallowance for fund used during construction (AFUDC) and including costs of removal, are detailed in the following table. This capital expenditure plan is subject to continual review and change.
 2019 2020 2021 2022 2023  2020 2021 2022 2023 2024 
(millions)(millions)
Generating facilities $458
 $497
 $383
 $306
 $425
  $487
 $555
 $563
 $455
 $263
 
Transmission and distribution facilities 678
 714
 706
 712
 705
  893
 914
 886
 867
 1,006
 
General facilities 142
 127
 94
 89
 66
  238
 117
 122
 92
 94
 
Total utility capital expenditures $1,278
 $1,338
 $1,183
 $1,107
 $1,196
 
Total capital expenditures $1,618
 $1,586
 $1,571
 $1,414
 $1,363
 

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Contractual Obligations and Other Commitments
In the course of its business activities, the Evergy Companies enter into a variety of contracts and commercial commitments. Some of these result in direct obligations reflected on Evergy's consolidated balance sheets while others are commitments, some firm and some based on uncertainties, not reflected in Evergy's underlying consolidated financial statements.
The information in the following table is provided to summarize Evergy's cash obligations and commercial commitments.
Payment due by period2019 2020 2021 2022 2023After 2023Total2020 2021 2022 2023 2024After 2024Total
Long-term debt(millions)(millions)
Principal$701.1
 $251.1
 $432.0
 $287.5
 $439.5
 $5,142.9
 $7,254.1
$251.1
 $432.0
 $387.5
 $439.5
 $800.0
 $6,642.9
 $8,953.0
Interest306.3
 281.1
 256.9
 235.4
 222.1
 3,262.6
 4,564.4
350.8
 327.2
 304.1
 288.9
 279.7
 3,930.7
 5,481.4
Long-term debt of VIEs                          
Principal30.3
 32.3
 18.8
 —
 —
 —
 81.4
32.3
 18.8
 —
 —
 —
 —
 51.1
Interest1.6
 0.8
 0.2
 —
 —
 —
 2.6
0.8
 0.2
 —
 —
 —
 —
 1.0
Lease commitments                          
Operating leases24.2
 20.7
 18.4
 15.2
 12.4
 95.0
 185.9
20.5
 17.0
 14.1
 11.0
 9.2
 44.7
 116.5
Capital leases6.4
 2.2
 5.3
 4.7
 4.0
 48.6
 71.2
Finance leases8.1
 7.4
 6.7
 5.8
 4.7
 46.2
 78.9
Pension and other post-retirement plans (a)
118.3
 118.3
 118.3
 118.3
 118.3
 (a)
 591.5
131.9
 131.9
 131.9
 131.9
 131.9
 (a)
 659.5
Purchase commitments                          
Fuel423.6
 364.4
 95.3
 82.9
 87.5
 116.2
 1,169.9
486.9
 137.0
 83.2
 84.7
 17.1
 94.1
 903.0
Power47.3
 47.3
 47.4
 47.6
 47.8
 366.8
 604.2
47.3
 47.4
 47.6
 47.8
 41.7
 325.2
 557.0
Other137.8
 18.8
 13.4
 6.8
 2.1
 34.4
 213.3
147.7
 42.3
 30.0
 25.1
 19.4
 117.7
 382.2
Total contractual commitments (a)
$1,796.9
 $1,137.0
 $1,006.0
 $798.4
 $933.7
 $9,066.5
 $14,738.5
$1,477.4
 $1,161.2
 $1,005.1
 $1,034.7
 $1,303.7
 $11,201.5
 $17,183.6
(a) 
Evergy expects to make contributions to the pension and other post-retirement plans beyond 20232024 but the amounts are not yet determined.
Long-term debt includes current maturities. Long-term debt principal excludes $57.2$80.7 million of unamortized net discounts and debt issuance costs and a $144.8$125.5 million fair value adjustment recorded in connection with purchase accounting for the Great Plains Energy and Westar EnergyEvergy Kansas Central merger. Variable rate interest obligations are based on rates as of December 31, 2018.
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2019.
Operating lease commitments include leases for office buildings, computer equipment, operating facilities, vehicles and rail cars to serve jointly-owned generating units where Westar EnergyEvergy Kansas Central or KCP&LEvergy Metro is the managing partner and is reimbursed by other joint-owners for its proportionate share of the cost. CapitalFinance lease commitments include obligations for both principal and interest.
Evergy expects to contribute $118.3$131.9 million to the pension and other post-retirement plans in 2019,2020, of which the majority is expected to be paid by Westar EnergyEvergy Kansas Central and KCP&L.Evergy Metro. Additional contributions to the plans are expected beyond 20232024 in amounts at least sufficient to meet the greater of Employee Retirement Income Security Act of 1974, as amended (ERISA) or regulatory funding requirements; however, these amounts have not yet been determined. Amounts for years after 20192020 are estimates based on information available in determining the amount for 2019.2020. Actual amounts for years after 20192020 could be significantly different than the estimated amounts in the table above.
Fuel commitments consist of commitments for nuclear fuel, coal and coal transportation costs. Power commitments consist of certain commitments for renewable energy under power purchase agreements. Other represents individual commitments entered into in the ordinary course of business.
Evergy has other insignificant long-term liabilities recorded on its consolidated balance sheet at December 31, 2018,2019, which do not have a definitive cash payout date and are not included in the table above.

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Common Stock Dividends
The amount and timing of dividends payable on Evergy's common stock are within the sole discretion of the Evergy Board. The amount and timing of dividends declared by the Evergy Board will be dependent on considerations such as Evergy's earnings, financial position, cash flows, capitalization ratios, regulation, reinvestment opportunities and debt covenants. Evergy targets a long-term dividend payout ratio of 60% to 70% of earnings. See Note 1 to the consolidated financial statements for information on the common stock dividend declared by the Evergy Board in February 2019.2020.
The Evergy Companies also have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels. See Note 1718 to the consolidated financial statements for further discussion of restrictions on dividend payments.
Common Stock Repurchase Program
In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock. Although this repurchase authorization has no expiration date, Evergy expects to repurchase approximately 60 million shares by mid-2020. For 2018,2019, Evergy had total repurchases of common stock of approximately $1,042$1,628.7 million and had repurchased 16.428.8 million shares under the repurchase program. TheseSince the start of the repurchase totals include shares repurchased under ASR agreements, one of which had not reached final settlement as of December 31, 2018, and are discussed further below.

Inprogram in August 2018, Evergy entered into two ASR agreements with financial institutions to purchase $450.0 million of Evergy common stock. The ASR agreements reached final settlement in the fourth quarter of 2018 and resulted in the delivery of 7.9 million shares to Evergy and Evergy paid ahas made total of $450.0 million.

In November 2018, Evergy entered into an ASR agreement with a financial institution to purchase $475.0 million of Evergy common stock. In December 2018, the financial institution delivered to Evergy 6.4 million sharesrepurchases of common stock representing a partial settlementof $2,671.0 million and has repurchased 45.2 million shares under the repurchase program. Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committee of the contract, based on then-current market prices and Evergy paid a totalBoard conducts its review of $475.0 million. The ASR agreementways to enhance long-term shareholder value, which is expected to reach final settlement by March 2019 or earlier.conclude in the first half of 2020.


See Note 1718 to the consolidated financial statements for more information regarding Evergy's common stock repurchase program.
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Impact of TCJA
The TCJA will result in lower operating cash flows for the Evergy Companies due to lower income tax expense recoveries in customer rates and the settlement of related deferred income tax regulatory liabilities, which are significant. These decreases in operating cash flows are expected to exceed the increase in operating cash flows for the Evergy Companies resulting from the lower corporate federal income tax rate primarily due to the utilization of the Evergy Companies' net operating losses and tax credits. These net regulatory liabilities will be refunded in future rates by amortizing amounts related to plant assets primarily over the remaining useful life of the assets and amortizing the amounts related to the other items over various periods as determined in the Evergy Companies' 2018 rate cases.
Off-Balance Sheet Arrangements
In the ordinary course of business, Evergy and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiary's intended business purposes. In connection with the closing of the merger, Evergy assumed the guarantees previously provided to GMOEvergy Missouri West by Great Plains Energy. The majority of these agreements guarantee Evergy's own future performance, so a liability for the fair value of the obligation is not recorded.
At December 31, 2018,2019, Evergy has provided $111.3$110.2 million of credit support for GMOEvergy Missouri West as follows:
Evergy direct guarantees to GMOEvergy Missouri West counterparties totaling $17.0 million, which expire in 2020, and
Evergy's guarantee of GMOEvergy Missouri West long-term debt totaling $94.3$93.2 million, which includes debt with maturity dates ranging from 20192020 to 2023.
Evergy has also guaranteed GMO'sEvergy Missouri West's short-term debt, including its commercial paper program. At December 31, 2018, GMO2019, Evergy Missouri West had $150.0$93.4 million of commercial paper outstanding. None of the guaranteed obligations are subject to default or prepayment if GMO'sEvergy Missouri West's credit ratings were downgraded.
The Evergy Companies also have off-balance sheet arrangements in the form of operating leases and letters of credit entered into in the ordinary course of business.

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Cash Flows
The following table presents Evergy's cash flows from operating, investing and financing activities.
201820172016201920182017
(in millions)(millions)
Cash flows from operating activities$1,497.8
$912.7
$803.8
$1,749.0
$1,497.8
$912.7
Cash flows from (used in) investing activities197.4
(780.8)(994.1)(1,080.3)197.4
(780.8)
Cash flows from (used in) financing activities(1,538.4)(131.6)190.2
Cash flows used in financing activities(805.8)(1,538.4)(131.6)
Cash Flows from Operating Activities
Evergy's $585.1$251.2 million increase in cash flows from operating activities in 20182019 compared to 20172018 was primarily driven by an $800.8a $252.3 million increase due to the inclusion of KCP&L'sEvergy Metro's and GMO'sEvergy Missouri West's cash flows from operating activities beginning in June 2018; partially offset by an increasethe first five months of $50.3 million in amounts paid by Westar Energy related to income taxes;2019 and $35.6 million of merger success fees paid by Evergy and Westar EnergyEvergy Kansas Central upon the completion of the merger; an increase of $27.0 millionmerger in purchased power costs paid by Westar Energy; an increase of $15.3 million in Wolf Creek refueling outage costs paid by Westar Energy related to the outage that concluded in May 2018 and an $11.6 million increase in Westar Energy pension and post-retirement contributions.
The $108.9 million increase in cash flows from operating activities in 2017 compared to 2016 was primarily driven by a $43.9 million increase in Westar Energy wholesale power sales and transmission services; a $26.3
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million decrease in amounts paid for Westar Energy coal and natural gas; a $26.0 million increase due to Westar Energy receiving a $13.0 million refund for income taxes in 2017 and Westar Energy paying $13.0 million in income taxes in 2016 and a $13.6 million increase from Westar Energy retail customers; partially offset by a $16.4 million increase in amounts paid for Westar Energy purchased power and transmission services and a $12.0 million increase in Westar Energy interest payments.June 2018.
Cash Flows from (used in) Investing Activities
Evergy's cash flows fromused in investing activities increased $978.2$1,277.7 million in 20182019 compared to 20172018 primarily due to the inclusion of $1,154.2driven by:
$1,154.2 million of cash acquired from Great Plains Energy as of the merger date.in June 2018;
Evergy's cash flows used in investing activities decreased $213.3a $243.6 million in 2017 compared to 2016 primarily driven by a $322.3 million decreaseincrease in additions to Westar Energy's property, plant and equipment primarily relateddue to the constructioninclusion of Western Plains Wind FarmEvergy Metro and Evergy Missouri West activity in 2016;the first five months of 2019; and
$140.6 million in proceeds from the settlement of deal contingent interest rate swaps in June 2018; partially offset by receiving $110.5
an increase of $154.9 million lessin proceeds from Westar Energy COLI investments, thanprimarily from Evergy Kansas Central due to a higher number of policy settlements in 2016.2019.
Cash Flows from (used in)used in Financing Activities
Evergy's cash flows used in financing activities increased $1,406.8decreased $732.6 million in 20182019 compared to 20172018 primarily duedriven by:
a $2,081.8 million increase in proceeds from long-term debt, net, as further described in Note 13 to the repurchaseconsolidated financial statements; partially offset by
a $586.4 million increase of repurchased common stock of $1,042.3 million as a result of Evergy's shareunder the common stock repurchase program, as further described in 2018; anNote 18 to the consolidated financial statements;
a $305.3 million increase in cash dividends paid of $251.9 million due to an increase in outstanding shares of common stock following the close of the merger and a $0.06 and $0.075 per share increase in the quarterly dividends paid in September 2018 and December 2018, respectively; an increase in retirementsretirement of long-term debt, of $270.8 million; partially offset by an increaseas further described in Note 13 to the consolidated financial statements;
a $211.0 million decrease in collateralized short-term debt, net of $185.0 millionborrowings primarily due to Westar Energy'sthe establishment of Evergy Kansas Central’s receivable sale facility that was entered into in December 2018.the fourth quarter of 2018;
Evergy's cash flowsa $123.6 million increase in the repayment of borrowings from financing activities decreased $321.8 million in 2017 compared to 2016 primarily due to Westar Energy issuing $207.5 million less in commercial paper; Westar Energy issuing $162.0 million less in long-term debt of VIEs; Westar Energy issuing $100.1 million less in long-term debt; Westar Energy's redemption of $75.0 million more in long-term debt and paying $18.8 million more in dividends; partially offset by Westar Energy redeeming $163.5 million less in long-term debt of VIEs and repaying $88.3 million less for borrowings against the cash surrender value of COLI.COLI, primarily from Evergy Kansas Central due to a higher number of policy settlements in 2019; and
a $69.8 million payment for the settlement of Evergy's interest rate swap that was designated as a cash flow hedge of its issuance of $800.0 million of 2.90% Senior Notes in September 2019.

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WESTAR ENERGY,EVERGY KANSAS CENTRAL, INC.
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
The below results of operations and related discussion for Westar EnergyEvergy Kansas Central is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
The following table summarizes Westar Energy'sEvergy Kansas Central's comparative results of operations.
2018 Change 20172019 Change 2018
(millions)(millions)
Operating revenues$2,614.9
 $43.9
 $2,571.0
$2,507.4
 $(107.5) $2,614.9
Fuel and purchased power599.2
 57.7
 541.5
493.0
 (106.2) 599.2
SPP network transmission costs259.9
 12
 247.9
251.3
 (8.6) 259.9
Other operating expenses814.4
 83.3
 731.1
Operating and maintenance530.5
 (110.2) 640.7
Depreciation and amortization390.9
 19.2
 371.7
443.8
 52.9
 390.9
Taxes other than income tax192.3
 18.6
 173.7
Income from operations550.5
 (128.3) 678.8
596.5
 46.0
 550.5
Other income (expense), net(33.5) (6.7) (26.8)
Other expense, net(12.9) 20.6
 (33.5)
Interest expense176.8
 5.8
 171.0
177.0
 0.2
 176.8
Income tax expense (benefit)(4.3) (155.5) 151.2
52.1
 56.4
 (4.3)
Equity in earnings of equity method investees, net of income taxes4.6
 (2.1) 6.7
4.6
 —
 4.6
Net income349.1
 12.6
 336.5
359.1
 10.0
 349.1
Less: Net income attributable to noncontrolling interests10.2
 (2.4) 12.6
15.7
 5.5
 10.2
Net income attributable to Westar Energy, Inc.$338.9
 $15.0
 $323.9
Net income attributable to Evergy Kansas Central, Inc.$343.4
 $4.5
 $338.9
Westar EnergyEvergy Kansas Central Utility Gross Margin and MWh Sales
The following table summarizes Westar Energy'sEvergy Kansas Central's utility gross margin and MWhs sold.
Revenues and ExpensesMWhs SoldRevenues and ExpensesMWhs Sold
2018 Change 2017 2018 Change 20172019 Change 2018 2019 Change 2018
Retail revenues(millions)(thousands)(millions)(thousands)
Residential$846.4
 $45.1
 $801.3
 6,736
 573
 6,163
$793.9
 $(52.5) $846.4
 6,460
 (276) 6,736
Commercial702.8
 (8.9) 711.7
 7,496
 128
 7,368
709.1
 6.3
 702.8
 7,399
 (97) 7,496
Industrial396.4
 (16.5) 412.9
 5,642
 (47) 5,689
401.3
 4.9
 396.4
 5,622
 (20) 5,642
Other retail revenues20.0
 (2.8) 22.8
 58
 (15) 73
21.0
 1.0
 20.0
 45
 (13) 58
Total electric retail1,965.6
 16.9
 1,948.7
 19,932
 639
 19,293
1,925.3
 (40.3) 1,965.6
 19,526
 (406) 19,932
Wholesale revenues346.1
 14.9
 331.2
 10,169
 (177) 10,346
239.9
 (106.2) 346.1
 7,540
 (2,629) 10,169
Transmission revenues288.9
 4.1
 284.8
 N/A
 N/A
 N/A
273.3
 (15.6) 288.9
 N/A
 N/A
 N/A
Other revenues14.3
 8.0
 6.3
 N/A
 N/A
 N/A
68.9
 54.6
 14.3
 N/A
 N/A
 N/A
Operating revenues2,614.9
 43.9
 2,571.0
 30,101
 462
 29,639
2,507.4
 (107.5) 2,614.9
 27,066
 (3,035) 30,101
Fuel and purchased power(599.2) (57.7) (541.5)      (493.0) 106.2
 (599.2)      
SPP network transmission costs(259.9) (12.0) (247.9)      (251.3) 8.6
 (259.9)      
Utility gross margin (a)
$1,755.8
 $(25.8) $1,781.6
      $1,763.1
 $7.3
 $1,755.8
      
(a)
(a)Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.
Westar Energy's utility gross margin decreased $25.8under Evergy's Results of Operations.
Evergy Kansas Central's utility gross margin increased $7.3 million in 20182019 compared to 20172018 driven by:
a $27.9 million increase from new retail rates effective in September 2018, net of a $69.8 million provision for rate refund recorded in 2018 for the change in the corporate income tax rate caused by the passage of the TCJA. See Note 19 to the consolidated financial statements for additional information;TCJA; and

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a $31.0$23.1 million reductionincrease in revenue fordue to one-time and annual bill credits recorded in June 2018 as a result of conditions in the KCC merger order. See Note 2 to the consolidated financial statements for additional information;order; partially offset by
a $75.0$30.9 million increasedecrease primarily due to higherlower retail sales driven by warmer spring andcooler summer weather and colder winter weather. For 20182019 compared to 2017,2018, cooling degree days increased 29%decreased 15%; and heating degree days increased 22%.
Westar Energy Othera $12.8 million decrease related to Evergy Kansas Central's TDC rider.
Evergy Kansas Central Operating Expenses (includingand Maintenance
Evergy Kansas Central's operating and maintenance expense and taxes other than income tax)
Westar Energy's other operating expenses increased $83.3decreased $110.2 million in 20182019 compared to 20172018 primarily driven by:
$51.9 million of merger-related costs incurred following the close of the merger in June 2018, consisting of:
◦$44.2 million of voluntary severance and change in control payments voluntary severance andas well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding Westar Energy equity compensation awards in accordance with the Amended Merger Agreement; and
◦$21.5 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; partially offset by
◦a $13.8 million decrease in operating and maintenance expense due to the net reallocation of incurred merger transition costs between Westar Energy, Evergy KCP&LKansas Central, Evergy, Evergy Metro and GMOEvergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Westar EnergyEvergy Kansas Central in accordance with the KCC merger order;
a $22.9 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily due to:
◦$12.3 million of obsolete inventory write-offs at retiring fossil-fuel units in 2018;
◦a $7.3 million decrease due to the retirement of Evergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center and Units 1 and 2 at Gordan Evans Energy Center in the fourth quarter of 2018; and
◦$0.7 million of voluntary severance expenses incurred in 2018 related to the Local 1523 union voluntary exit program; partially offset by
◦an $8.4 million increase due to the write-off of a regulatory asset for costs incurred during the JEC lease extension, see Note 5 to the consolidated financial statements;
a $19.2 million decrease in various administrative and general operating and maintenance expenses primarily driven by a $10.0 million decrease in labor and employee benefits expense primarily due to lower employee headcount and pension and post-retirement costs in 2019 and $5.3 million of obsolete inventory write-offs for Unit 7 at Tecumseh Energy Center, Units 3voluntary severance expenses incurred in the third quarter of 2018 related to a Wolf Creek voluntary exit program;
a $9.6 million decrease in transmission and 4 at Murray Gill Energy Centerdistribution operating and Units 1 and 2 at Gordon Evans Energy Center, which were retiredmaintenance expense primarily due to a higher level of vegetation management activity in 2018; and
a $5.5$6.3 million increase duedecrease in plant operating and maintenance expense at nuclear generating units related to Westar Energy's 47% shareWolf Creek; partially offset by
$9.3 million of voluntary severance expenses incurred related to the Wolf Creek voluntary exit program.in 2019.
Westar EnergyEvergy Kansas Central Depreciation and Amortization
Westar Energy'sEvergy Kansas Central's depreciation and amortization expense increased $19.2$52.9 million in 20182019 compared to 20172018 driven by:
a $32.4 million increase primarily due to a change in depreciation rates as a result of Evergy Kansas Central's rate case effective in September 2018; and
a $20.5 million increase primarily due to capital additions.

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Evergy Kansas Central Taxes Other Than Income Tax
Evergy Kansas Central's taxes other than income tax increased$18.6 million in 2019 compared to 2018 primarily driven by capital additions.an $18.3 million increase in property taxes.
Westar EnergyEvergy Kansas Central Other Income (Expense),Expense, Net
Westar Energy'sEvergy Kansas Central's other expense, net increased $6.7decreased $20.6 million in 20182019 compared to 20172018 primarily driven by:
a $4.6$12.4 million decrease due to recording higher COLI benefits in 2019;
a $4.2 million decrease due to higher net unrealized gains in Evergy Kansas Central's rabbi trust in 2019; and
a $3.4 million decrease due to lower pension non-service costs in 2019.
Evergy Kansas Central Income Tax Expense
Evergy Kansas Central's income tax expense increased $56.4 million in 2019 compared to 2018 driven by:
a $52.6 million increase related to the revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018; and
an $18.9 million increase due to higher pre-tax income; partially offset by
a $5.3 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes.

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EVERGY METRO, INC.
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
The below results of operations and related discussion for Evergy Metro is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
The following table summarizes Evergy Metro's comparative results of operations.
 2019 Change 2018
 (millions)
Operating revenues$1,806.5
 $(16.6) $1,823.1
Fuel and purchased power482.1
 (38.5) 520.6
Operating and maintenance451.9
 (42.3) 494.2
Depreciation and amortization318.4
 37.1
 281.3
Taxes other than income tax127.6
 10.4
 117.2
Income from operations426.5
 16.7
 409.8
Other expense, net(15.8) 10.1
 (25.9)
Interest expense119.8
 (13.9) 133.7
Income tax expense35.7
 (51.6) 87.3
Net income$255.2
 $92.3
 $162.9
Evergy Metro Utility Gross Margin and MWh Sales
The following table summarizes Evergy Metro's utility gross margin and MWhs sold.
 Revenues and Expenses MWhs Sold
 2019 Change 2018 2019 Change 2018
Retail revenues(millions) (thousands)
Residential$712.4
 (23.2) $735.6
 5,425
 (261) 5,686
Commercial786.1
 (8.7) 794.8
 7,623
 (159) 7,782
Industrial136.9
 (1.9) 138.8
 1,713
 (41) 1,754
Other retail revenues16.3
 5.9
 10.4
 75
 (1) 76
Total electric retail1,651.7
 (27.9) 1,679.6
 14,836
 (462) 15,298
Wholesale revenues70.9
 17.4
 53.5
 6,098
 1,081
 5,017
Transmission revenues17.5
 3.0
 14.5
 N/A
 N/A
 N/A
Other revenues66.4
 (9.1) 75.5
 N/A
 N/A
 N/A
Operating revenues1,806.5
 (16.6) 1,823.1
 20,934
 619
 20,315
Fuel and purchased power(482.1) 38.5
 (520.6)      
Utility gross margin (a)
$1,324.4
 $21.9
 $1,302.5
 

   

(a) Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.
Evergy Metro's utility gross margin increased $21.9 million in 2019 compared to 2018 driven by:
a $40.4 million increase from new retail rates effective in December 2018, net of a $72.4 million provision for rate refund recorded for 2018 for the change in the corporate income tax rate caused by the TCJA; and
a $22.4 million increase in revenue due to one-time bill credits recorded in June 2018 as a result of conditions in the KCC and MPSC merger orders; partially offset by
a $30.9 million decrease primarily due to lower retail sales driven by cooler summer weather. For 2019 compared to 2018, cooling degree days decreased 18%; and
a $10.0 million decrease for recovery of programs costs for energy efficiency programs under MEEIA, which have a direct offset in operating and maintenance expense.

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Evergy Metro Operating and Maintenance
Evergy Metro's operating and maintenance expense decreased$42.3 million in 2019 compared to 2018 primarily driven by:
a $26.4 million decrease in investment earningsplant operating and maintenance expense at fossil-fuel generating units primarily driven by:
◦a $10.9 million decrease due to the retirement of Montrose Station in 2018, which includes $7.3 million of obsolete inventory write-offs in 2018;
◦a $3.7 million decrease due to an extended maintenance outage at Iatan No. 2 in 2018; and
◦$3.2 million of voluntary severance expenses incurred in the third quarter of 2018 related to the Local 412 union voluntary exit program;
a $23.8 million decrease in various administrative and general operating and maintenance expenses, which includes $5.3 million of voluntary severance expenses incurred in the third quarter of 2018 related to a Wolf Creek voluntary exit program and a $3.5 million decrease in injuries and damages expense primarily due to an increase in estimated workers compensation losses recorded in 2018;
a $10.0 million decrease in interest and dividend income; andprogram costs for energy efficiency programs under MEEIA, which have a direct offset in revenue;
a $3.5$6.8 million decrease in plant operating and maintenance expense at nuclear generating units related to Wolf Creek; and
$2.1 million of merger-related costs incurred in 2018; partially offset by
a $23.2 million increase in pension non-service costs.operating and maintenance expense due to the net reallocation of incurred merger transition costs between Evergy Metro, Evergy, Evergy Kansas Central and Evergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Evergy Metro in accordance with the KCC and MPSC merger orders;
Westar Energya $7.1 million increase in transmission and distribution operating and maintenance expense primarily due to costs incurred from storms that occurred in January 2019; and
$6.8 million of voluntary severance expenses incurred in 2019.
Evergy Metro Depreciation and Amortization
Evergy Metro's depreciation and amortization increased $37.1 million in 2019 compared to 2018 primarily driven by:
a $19.3 million increase primarily due to capital additions; and
a $17.8 million increase due to a change in depreciation rates effective in December 2018 as a result of Evergy Metro's 2018 Kansas rate case.
Evergy Metro Taxes Other Than Income Tax
Evergy Metro's taxes other than income tax increased $10.4 million in 2019 compared to 2018 primarily driven by a $7.9 million increase in property taxes.

Evergy Metro Interest Expense
Evergy Metro's interest expense decreased $13.9 million in 2019 compared to 2018 primarily driven by a $12.8 million net decrease due to the repayment of $400.0 million of 7.15% Mortgage Bonds at maturity in April 2019, which decreased interest expense by $25.4 million, partially offset by a $12.6 million increase due to the issuance of $400.0 million of 4.125% Mortgage Bonds in March 2019.

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Evergy Metro Income Tax Expense
Westar Energy'sEvergy Metro's income tax expense decreased $155.5$51.6 million in 20182019 compared to 20172018 primarily driven by:
a $53.4$51.0 million decrease related to the revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger;merger in June 2018; and
a $58.4$21.4 million decrease due to lower pre-tax income; and
a $44.3 million decrease as a resultflow-through items primarily driven by higher amortization of the decrease in the federal statutoryexcess deferred income tax rate in 2018.
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KANSAS CITY POWER & LIGHT COMPANY
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
The below results of operations and related discussion for KCP&L is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
The following table summarizes KCP&L's comparative results of operations.
 2018 Change 2017
 (millions)
Operating revenues$1,823.1
 $(67.6) $1,890.7
Fuel and purchased power520.6
 39.9
 480.7
Other operating expenses611.4
 (45.9) 657.3
Depreciation and amortization281.3
 15.0
 266.3
Income from operations409.8
 (76.6) 486.4
Other income (expense), net(25.9) 13.7
 (39.6)
Interest expense133.7
 (5.1) 138.8
Income tax expense87.3
 (40.9) 128.2
Net income$162.9
 $(16.9) $179.8
KCP&L Utility Gross Margin and MWh Sales
The following table summarizes KCP&L's utility gross margin and MWhs sold.
 Revenues and Expenses MWhs Sold
 2018 Change 2017 2018 Change 2017
Retail revenues(millions) (thousands)
Residential$735.6
 10.3
 $725.3
 5,686
 504
 5,182
Commercial794.8
 (49.6) 844.4
 7,782
 316
 7,466
Industrial138.8
 (22.2) 161.0
 1,754
 (61) 1,815
Other retail revenues10.4
 (0.8) 11.2
 76
 4
 72
Total electric retail1,679.6
 (62.3) 1,741.9
 15,298
 763
 14,535
Wholesale revenues53.5
 (34.5) 88.0
 5,017
 (1,771) 6,788
Transmission revenues14.5
 (1.5) 16.0
 N/A
 N/A
 N/A
Other revenues75.5
 30.7
 44.8
 N/A
 N/A
 N/A
Operating revenues1,823.1
 (67.6) 1,890.7
 20,315
 (1,008) 21,323
Fuel and purchased power(520.6) (39.9) (480.7)      
Utility gross margin (a)
$1,302.5
 $(107.5) $1,410.0
 

   

(a)
Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.
KCP&L's utility gross margin decreased $107.5 million in 2018 compared to 2017 driven by:
a $72.4 million refund obligation for the change in the corporate income tax rate caused by the passage of the TCJA. See Note 19 to the consolidated financial statements for additional information;
$72.9 million of sales taxes and franchise fees collected from KCP&L Missouri customers included in revenue in 2017, which as part of KCP&L's adoption of Accounting Standards Codification (ASC) 606, are now excluded from revenue in 2018; and
a $25.0 million reduction in revenue for one-time and annual bill credits as a result of conditions in the MPSC and KCC merger orders. See Note 2 to the consolidated financial statements for additional information;taxes; partially offset by
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a $62.8 million increase primarily due to higher retail sales driven by warmer spring and summer weather and colder winter weather. For 2018 compared to 2017, cooling degree days increased 33% and heating degree days increased 23%.
KCP&L Other Operating Expenses (including operating and maintenance expense and taxes other than income tax)
KCP&L's other operating expenses decreased $45.9 million in 2018 compared to 2017 primarily driven by:
$72.2 million decrease in taxes other than income tax due to sales taxes and franchise fees collected from KCP&L Missouri customers in 2017, which, as part of KCP&L's adoption of ASC 606, Revenue from Contracts with Customers, are now excluded from taxes other than income tax in 2018; and
a $23.2 million decrease in operating and maintenance expense due to the net reallocation of incurred merger transition costs between KCP&L, Evergy, Westar Energy and GMO and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by KCP&L in accordance with the KCC and MPSC merger orders; partially offset by
an $11.6 million increase due to voluntary severance expenses incurred related to KCP&L's 47% share of the Wolf Creek voluntary exit program as well as other KCP&L voluntary exit programs;
$7.3 million of obsolete inventory write-offs for Montrose Station, which was retired in the fourth quarter of 2018;
a $6.8 million increase in transmission and distribution operating and maintenance expense; and
a $6.9 million increase in injuries and damages expense primarily due to an increase in estimated worker's compensation losses.
KCP&L Depreciation and Amortization
KCP&L's depreciation and amortization increased $15.0 million in 2018 compared to 2017 primarily driven by capital additions.
KCP&L Other Income (Expense), Net
KCP&L's other expense, net decreased $13.7 million in 2018 compared to 2017 driven by a $16.8 million decrease in pension non-service costs due to KCP&L's adoption of ASU 2017-07, Compensation-Retirement Benefits, which requires the non-service cost components to be reported separately from service costs and outside of a subtotal of income from operations. For retrospective application of the 2017 non-service cost components, KCP&L utilized the practical expedient that allows for the use of the amounts disclosed in a company's pension and other post-retirement benefit plan footnote as the estimation basis for retrospective presentation. The 2017 amounts disclosed in KCP&L's pension and other post-retirement benefit plan footnote are presented prior to the effects of capitalization and sharing with joint owners of power plants. See Note 1 and Note 9 to the consolidated financial statements for additional information.

KCP&L Income Tax Expense
KCP&L's income tax expense decreased $40.9 million in 2018 compared to 2017 primarily driven by:
a $32.2 million decrease in income tax expense as a result of the decrease in the federal statutory income tax rate in 2018;
a $22.5 million decrease due to lower pre-tax income;
a $15.5 million decreaseincrease related to the revaluation of deferred income tax assets and liabilities as a result of the enactment of Missouri state income tax reform in June 2018; and
an $8.3a $10.8 million decrease in income tax expenseincrease due to an increase in flow-through items primarily consisting of amortization of regulatory liabilities for excess deferred income taxes generated as a result of the enactment of the TCJA in December 2017; partially offset byhigher pre-tax income.
a $51.0 million increase related to the revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger.
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ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
In the ordinary course of business, Evergy faces risks that are either non-financial or non-quantifiable. Such risks principally include business, legal, operational and credit risks and are not represented in the following analysis. See Part I, Item 1A, Risk Factors and Part II, Item 7, MD&A for further discussion of risk factors.
The Evergy Companies are exposed to market risks associated with commodity price and supply, interest rates and equity prices. Commodity price risk is the potential adverse price impact related to the purchase or sale of electricity and energy-related products. Credit risk is the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. Interest rate risk is the potential adverse financial impact related to changes in interest rates. In addition, Evergy's investments in trusts to fund nuclear plant decommissioning and to fund non-qualified retirement benefits give rise to security price risk.
Management has established risk management policies and strategies to reduce the potentially adverse effects that the volatility of the markets may have on Evergy's operating results. During the ordinary course of business, the Evergy Companies' hedging strategies are reviewed to determine the hedging approach deemed appropriate based upon the circumstances of each situation. Though management believes its risk management practices are effective, it is not possible to identify and eliminate all risk. Evergy could experience losses, which could have a material adverse effect on its results of operations or financial position, due to many factors, including unexpectedly large or rapid movements or disruptions in the energy markets, regulatory-driven market rule changes and/or bankruptcy or non-performance of customers or counterparties, and/or failure of underlying transactions that have been hedged to materialize.
Hedging Strategies
From time to time, Evergy utilizes derivative instruments to execute risk management and hedging strategies. Derivative instruments, such as futures, forward contracts, swaps or options, derive their value from underlying assets, indices, reference rates or a combination of these factors. These derivative instruments include negotiated contracts, which are referred to as over-the-counter derivatives, and instruments listed and traded on an exchange.
Commodity Price Risk
The Evergy Companies engage in the wholesale and retail sale of electricity and are exposed to risks associated with the price of electricity and other energy-related products. Exposure to these risks is affected by a number of factors including the quantity and availability of fuel used for generation and the quantity of electricity customers consume. Customers' electricity usage could also vary from year to year based on the weather or other factors. Quantities of fossil fuel used for generation vary from year to year based on the availability, price and deliverability of a given fuel type as well as planned and unplanned outages at facilities that use fossil fuels. Evergy's exposure to fluctuations in these factors is limited by the cost-based regulation of its regulated operations in Kansas and Missouri as these operations are typically allowed to recover substantially all of these costs through cost-recovery mechanisms, primarily through fuel recovery mechanisms. While there may be a delay in timing between when these costs are incurred and when they are recovered through rates, changes from year to year generally do not have a material impact on operating results.

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Interest Rate Risk
Evergy manages interest rate risk and short- and long-term liquidity by limiting its exposure to variable interest rate debt to a percentage of total debt, diversifying maturity dates and, from time to time, entering into interest rate hedging transactions. At December 31, 2018, 4%2019, 3% of Evergy's long-term debt was variable rate debt. Evergy also has short-term borrowings and current maturities of fixed rate debt that are exposed to interest rate risk. Evergy computes and presents information regarding the sensitivity to changes in interest rates for variable rate debt and current maturities of fixed rate debt by assuming a 100-basis-point change in the current interest rates applicable to such debt over the remaining time the debt is outstanding.
Evergy had $1,747.0$1,113.7 million of variable rate debt, including notes payable, and commercial paper and current maturities of fixed rate debt as of December 31, 2018.2019. A 100-basis-point change in interest rates applicable to this debt would impact income before income taxes on an annualized basis by approximately $12.5$9.9 million.
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At December 31, 2018, Evergy had $500.0 million of notional amounts of fixed-to-floating interest rate swaps that had been designated as a cash flow hedge of a forecasted debt issuance in 2019. Assuming settlement of the swaps, a hypothetical 10% decrease in the interest rates underlying the swaps would have resulted in an approximately $12.8 million increase in interest expense that would have been reclassified from accumulated other comprehensive loss to interest expense over the period that the hedged interest payments affected earnings.
Credit Risk
Evergy is exposed to counterparty credit risk largely in the form of accounts receivable from its retail and wholesale electric customers and through executory contracts with market risk exposure. The credit risk associated with accounts receivable from retail and wholesale customers is largely mitigated by Evergy's large number of individual customers spread across diverse customer classes and the ability to recover bad debt expense in customer rates. The Evergy Companies maintain credit policies and employ credit risk control mechanisms, such as letters of credit, when necessary to minimize their overall credit risk and monitor exposure.
Investment Risk
Evergy maintains trust funds, as required by the NRC, to fund its 94% share of decommissioning the Wolf Creek nuclear power plant and also maintains trusts to fund pension benefits as well as certain non-qualified retirement benefits. As of December 31, 2018,2019, these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet. The equity securities in the trusts are exposed to price fluctuations in equity markets and the value of debt securities are exposed to changes in interest rates and other market factors.
As nuclear decommissioning costs are currently recovered in customer rates, Evergy defers both realized and unrealized gains and losses for the vast majority of these securities as an offset to its regulatory asset for decommissioning Wolf Creek and as such, fluctuations in the value of these securities do not have a material impact on Evergy's earnings. A significant decline in the value of pension or non-qualified retirement assets could require Evergy to increase funding of its pension plans in future periods, which could adversely affect cash flows in those periods. In addition, a decline in the fair value of these plan assets, in the absence of additional cash contributions to the plans by Evergy, could increase the amount of pension cost required to be recorded in future periods by Evergy.



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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


   
Report of Independent Registered Public Accounting Firm 
Evergy, Inc.
57
Westar Energy,Evergy Kansas Central, Inc.
5860
Kansas City Power & Light CompanyEvergy Metro, Inc.
5961
   
Evergy, Inc. 
Consolidated Statements of Comprehensive Income
6062
Consolidated Balance Sheets
61
Consolidated Statements of Cash Flows
63
Consolidated Statements of Cash Flows
65
Consolidated Statements of Changes in Equity
6466
   
Westar Energy,Evergy Kansas Central, Inc. 
Consolidated Statements of Income
6567
Consolidated Balance Sheets
66
Consolidated Statements of Cash Flows
68
Consolidated Statements of Cash Flows
70
Consolidated Statements of Changes in Equity
6971
   
Kansas City Power & Light CompanyEvergy Metro, Inc. 
Consolidated Statements of Comprehensive Income
7072
Consolidated Balance Sheets
71
Consolidated Statements of Cash Flows
73
Consolidated Statements of Cash Flows
75
Consolidated Statements of Changes in Equity
7476
   
Combined Notes to Consolidated Financial Statements
 
Note 1:
Summary of Significant Accounting Policies
7577
Note 2:
Merger of Great Plains Energy and Westar EnergyEvergy Kansas Central
8785
Note 3:
Revenue
9290
Note 4:
Receivables
93
Note 5:
Rate Matters and Regulation
94
Note 5:
Rate Matters and Regulation
95
Note 6:
Asset Retirement ObligationsGoodwill
101
Note 7:
Asset Retirement Obligations
101
Note 8:
Property, Plant & Equipment
102
Note 9:
Jointly-Owned Electric Utility Plants
103
Note 8:10:
Jointly-Owned Electric Utility PlantsPension Plans and Post-Retirement Benefits
104
Note 9:11:
Pension Plans and Post-Retirement BenefitsEquity Compensation
105116
Note 10:12:
Equity Compensation
118
Note 11:
Short-Term Borrowings and Short-Term Bank Lines of Credit
122
Note 12:
Long-Term Debt
123120
Note 13:
Fair Value MeasurementsLong-Term Debt
126121
Note 14:
Commitments and ContingenciesFair Value Measurements
131124
Note 15:
GuaranteesCommitments and Contingencies
138129
Note 16:
Related Party Transactions and RelationshipsGuarantees
138133
Note 17:
Shareholders' EquityRelated Party Transactions and Relationships
139133
Note 18:
Variable Interest EntitiesShareholders' Equity
140135
Note 19:
TaxesVariable Interest Entities
142136
Note 20:
Taxes
137
Note 21:
Leases
143
Note 22:
Quarterly Operating Results (Unaudited)
148146



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Evergy, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy, Inc. and subsidiaries (the "Company") as of December 31, 20182019 and 2017,2018, the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2018,2019, and the related notes and the financial statement schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 20182019 and 2017,2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018,2019, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2018,2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 21, 2019,March 2, 2020, expressed an unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 5 to the financial statements
Critical Audit Matter Description
The Company is subject to rate regulation by the Kansas Corporation Commission and by the Missouri Public Service Commission (collectively the "Commissions"), which have jurisdiction with respect to the rates of electric distribution companies in Kansas and Missouri, respectively. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the

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economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant, and equipment, including asset retirements and abandonments; regulatory assets and liabilities; operating revenues; operating and maintenance expense; and depreciation expense.
The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Rates are determined and approved in regulatory proceedings based on an analysis of the Company's costs to provide utility service and a return on, and recovery of, the Company's investment in the utility business. Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. The Commissions' regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. Decisions to be made by the Commissions in the future will impact the accounting for regulated operations, including decisions about the amount of allowable costs and return on invested capital included in rates and any refunds that may be required. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve (1) full recovery of the costs of providing utility service or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment.
When the Company retires a regulated plant, the Company must assess the probability of recovery of the regulated plant, which is dependent upon amounts that may be recovered through regulated rates, including any return. Pending receipt of regulatory approval for the retirement and/or recovery of the affected plants, accounting for early retirements of regulated plants involves judgment related to the nature of the early retirement and the likelihood that the Company will recover its remaining investment in these retired generating plants with return. Auditing the judgments related to the nature and likelihood of the retirement and the probability of recovering the generating plant investment with a return involves especially subjective and complex judgment.
We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs, (2) probability of potential charges related to the abandonment of regulated plants, and (3) a refund to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:
We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.
We tested the effectiveness of management's controls over the initial recognition of amounts as property, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates, including Company management's determination of the likelihood of recovery of the full investment of certain regulated plants and probability of refunding amounts previously collected from customers related to certain regulated plants.
We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.
We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commissions for the Company and other public utilities in Kansas and Missouri, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available

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information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedence of the Commissions' treatment of similar costs under similar circumstances.
For regulatory matters in process, including those that could impact the early retirement of regulated plants, we inspected the Company's filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company's future rates, for any evidence that might contradict management's assertions.
We evaluated the reasonableness of management's judgments for potential indicators of abandonment by performing the following:
◦We inquired of management about property, plant, and equipment that may be abandoned.
◦We inspected the capital projects budget and construction-in-process listings and inquired of management to identify projects that are designed to replace assets that may be retired prior to the end of the useful life.
◦We inspected minutes of the board of directors and regulatory orders and other filings with the Commissions to identify any evidence that may contradict management's assertion regarding probability of an abandonment.
We compared actual spend for projects that have been capitalized to property, plant, and equipment to budget. We evaluated regulatory filings for any evidence that intervenors are challenging full recovery of the cost of any capital projects. For significant projects that were over budget or if full recovery of project costs is being challenged by intervenors, we evaluated management's assessment of the probability of a disallowance. We tested selected costs included in the capitalized project costs for completeness and accuracy.
We evaluated management's analysis, and letters from internal and external legal counsel, as appropriate, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.
We evaluated management's conclusions for the probable recovery of the retired regulated plant investment with a return with the assistance of professionals in our firm having expertise in the application of accounting guidance for early retirements of regulated plants. We evaluated management's conclusions regarding the accounting for the abandonment of certain regulated plants and the impact of recent rate orders on the accounting.
/s/ DELOITTE & TOUCHE LLP


Kansas City, Missouri  
February 21, 2019March 2, 2020 


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











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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Westar Energy,Evergy Kansas Central, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Westar Energy,Evergy Kansas Central, Inc. and subsidiaries (the "Company") as of December 31, 20182019 and 2017,2018, the related consolidated statements of income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2018,2019, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 20182019 and 2017,2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018,2019, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP


Kansas City, Missouri  
February 21, 2019March 2, 2020  


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



























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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Kansas City Power & Light CompanyEvergy Metro, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Kansas City Power & Light CompanyEvergy Metro, Inc. and subsidiaries (the "Company") as of December 31, 20182019 and 2017,2018, the related consolidated statements of comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2018,2019, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 20182019 and 2017,2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018,2019, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP


Kansas City, Missouri  
February 21, 2019March 2, 2020  


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







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EVERGY, INC.Consolidated Statements of Comprehensive Income
        
Year Ended December 31 2018 2017 2016 2019 2018 2017
(millions, except per share amounts)(millions, except per share amounts)
OPERATING REVENUES $4,275.9
 $2,571.0
 $2,562.1
 $5,147.8
 $4,275.9
 $2,571.0
OPERATING EXPENSES:            
Fuel and purchased power 1,078.7
 541.5
 509.5
 1,265.0
 1,078.7
 541.5
SPP network transmission costs 259.9
 247.9
 232.8
 251.3
 259.9
 247.9
Operating and maintenance 1,115.8
 563.5
 587.2
 1,218.5
 1,115.8
 563.5
Depreciation and amortization 618.8
 371.7
 338.5
 861.7
 618.8
 371.7
Taxes other than income tax 269.1
 167.6
 191.7
 365.5
 269.1
 167.6
Total Operating Expenses 3,342.3
 1,892.2
 1,859.7
 3,962.0
 3,342.3
 1,892.2
INCOME FROM OPERATIONS 933.6
 678.8
 702.4
 1,185.8
 933.6
 678.8
OTHER INCOME (EXPENSE):            
Investment earnings 8.8
 4.0
 2.5
 11.0
 8.8
 4.0
Other income 15.5
 8.3
 34.6
 26.9
 15.5
 8.3
Other expense (78.7) (39.1) (38.6) (76.9) (78.7) (39.1)
Total Other Income (Expense), Net (54.4) (26.8) (1.5)
Total Other Expense, Net (39.0) (54.4) (26.8)
Interest expense 279.6
 171.0
 161.7
 374.0
 279.6
 171.0
INCOME BEFORE INCOME TAXES 599.6
 481.0
 539.2
 772.8
 599.6
 481.0
Income tax expense 59.0
 151.2
 184.5
 97.0
 59.0
 151.2
Equity in earnings of equity method investees, net of income taxes 5.4
 6.7
 6.5
 9.8
 5.4
 6.7
NET INCOME 546.0
 336.5
 361.2
 685.6
 546.0
 336.5
Less: Net income attributable to noncontrolling interests 10.2
 12.6
 14.6
 15.7
 10.2
 12.6
NET INCOME ATTRIBUTABLE TO EVERGY, INC. $535.8
 $323.9
 $346.6
 $669.9
 $535.8
 $323.9
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY (see Note 1)            
Basic earnings per common share $2.50
 $2.27
 $2.43
 $2.80
 $2.50
 $2.27
Diluted earnings per common share $2.50
 $2.27
 $2.43
 $2.79
 $2.50
 $2.27
AVERAGE COMMON SHARES OUTSTANDING            
Basic 213.9
 142.5
 142.1
 239.5
 213.9
 142.5
Diluted 214.1
 142.6
 142.5
 239.9
 214.1
 142.6
COMPREHENSIVE INCOME            
NET INCOME $546.0
 $336.5
 $361.2
 $685.6
 $546.0
 $336.5
OTHER COMPREHENSIVE INCOME            
Derivative hedging activity            
Loss on derivative hedging instruments (5.4) —
 —
 (64.4) (5.4) —
Income tax benefit 1.4
 —
 —
 16.5
 1.4
 —
Net loss on derivative hedging instruments (4.0) —
 —
 (47.9) (4.0) —
Reclassification to expenses, net of tax 1.5
 —
 —
Derivative hedging activity, net of tax (4.0) —
 —
 (46.4) (4.0) —
Defined benefit pension plans            
Net gain arising during period 1.4
 —
 —
Income tax expense (0.4) —
 —
Net gain arising during period, net of tax 1.0
 —
 —
Net gain (loss) arising during period (0.8) 1.4
 —
Income tax expense (benefit) 0.2
 (0.4) —
Net gain (loss) arising during period, net of tax (0.6) 1.0
 —
Change in unrecognized pension expense, net of tax 1.0
 —
 —
 (0.6) 1.0
 —
Total other comprehensive loss (3.0) —
 —
 (47.0) (3.0) —
Comprehensive income 543.0
 336.5
 361.2
 638.6
 543.0
 336.5
Less: comprehensive income attributable to noncontrolling interest 10.2
 12.6
 14.6
 15.7
 10.2
 12.6
COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC. $532.8
 $323.9
 $346.6
 $622.9
 $532.8
 $323.9
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.Consolidated Balance Sheets
      
December 31December 31
2018 20172019 2018
ASSETS(millions, except share amounts)(millions, except share amounts)
CURRENT ASSETS:          
Cash and cash equivalents $160.3
 $3.4
  $23.2
 $160.3
 
Receivables, net 193.7
 290.7
  228.5
 193.7
 
Accounts receivable pledged as collateral 365.0
 —
  339.0
 365.0
 
Fuel inventory and supplies 511.0
 293.6
  481.6
 511.0
 
Income taxes receivable 68.0
 —
  85.5
 68.0
 
Regulatory assets 303.9
 99.5
  231.7
 303.9
 
Prepaid expenses and other assets 79.1
 39.8
  78.2
 79.1
 
Total Current Assets 1,681.0
 727.0
  1,467.7
 1,681.0
 
PROPERTY, PLANT AND EQUIPMENT, NET 18,782.5
 9,553.8
  19,184.4
 18,782.5
 
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET 169.2
 176.3
  162.0
 169.2
 
OTHER ASSETS:  
  
   
  
 
Regulatory assets 1,757.9
 685.4
  1,740.5
 1,757.9
 
Nuclear decommissioning trust fund 472.1
 237.1
  573.2
 472.1
 
Goodwill 2,338.9
 —
  2,336.6
 2,338.9
 
Other 396.5
 244.8
  511.5
 396.5
 
Total Other Assets 4,965.4
 1,167.3
  5,161.8
 4,965.4
 
TOTAL ASSETS $25,598.1
 $11,624.4
  $25,975.9
 $25,598.1
 
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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


   


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

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EVERGY, INC.
Consolidated Statements of Cash Flows
      
Year Ended December 312019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$685.6
 $546.0
 $336.5
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization861.7
 618.8
 371.7
Amortization of nuclear fuel51.4
 43.6
 32.2
Amortization of deferred refueling outage25.5
 21.2
 16.1
Amortization of corporate-owned life insurance19.8
 22.6
 20.6
Non-cash compensation16.3
 29.9
 8.8
Net deferred income taxes and credits121.5
 124.2
 149.6
Allowance for equity funds used during construction(2.2) (3.1) (2.0)
Payments for asset retirement obligations(17.8) (22.4) (16.0)
Equity in earnings of equity method investees, net of income taxes(9.8) (5.4) (6.7)
Income from corporate-owned life insurance(29.6) (2.3) (2.8)
Other(3.2) (5.2) (8.7)
Changes in working capital items:     
Accounts receivable(23.1) 265.1
 (2.1)
Accounts receivable pledged as collateral26.0
 (185.0) —
Fuel inventory and supplies29.9
 54.7
 7.2
Prepaid expenses and other current assets43.4
 (128.1) 55.8
Accounts payable16.9
 56.7
 10.0
Accrued taxes(8.2) (76.4) 9.2
Other current liabilities(59.4) 92.0
 (118.0)
Changes in other assets79.8
 66.8
 32.0
Changes in other liabilities(75.5) (15.9) 19.3
Cash Flows from Operating Activities1,749.0
 1,497.8
 912.7
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: 
  
  
Additions to property, plant and equipment(1,210.1) (1,069.7) (764.6)
Cash acquired from the merger with Great Plains Energy—
 1,154.2
 —
Purchase of securities - trusts(55.8) (117.5) (41.0)
Sale of securities - trusts47.3
 117.7
 41.2
Investment in corporate-owned life insurance(18.3) (17.1) (17.0)
Proceeds from investment in corporate-owned life insurance161.7
 6.8
 4.2
Proceeds from settlement of interest rate swap—
 140.6
 —
Other investing activities(5.1) (17.6) (3.6)
Cash Flows from (used in) Investing Activities(1,080.3) 197.4
 (780.8)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: 
  
  
Short term debt, net(176.7) (104.0) (91.3)
Proceeds from term loan facility1,000.0
 —
 —
Repayment of term loan facility(1,000.0) —
 —
Collateralized short-term borrowings, net(26.0) 185.0
 —
Proceeds from long-term debt2,372.7
 290.9
 296.2
Retirements of long-term debt(701.1) (395.8) (125.0)
Retirements of long-term debt of variable interest entities(30.3) (28.5) (26.8)
Payment for settlement of interest rate swap accounted for as a cash flow hedge(69.8) —
 —
Borrowings against cash surrender value of corporate-owned life insurance59.4
 56.5
 55.1
Repayment of borrowings against cash surrender value of corporate-owned life insurance(127.5) (3.9) (1.0)
Cash dividends paid(462.5) (475.0) (223.1)
Repurchase of common stock under repurchase plan(1,628.7) (1,042.3) —
Distributions to shareholders of noncontrolling interests(8.6) —
 (5.8)
Other financing activities(6.7) (21.3) (9.9)
Cash Flows used in Financing Activities(805.8) (1,538.4) (131.6)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(137.1) 156.8
 0.3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:     
Beginning of period160.3
 3.5
 3.2
End of period$23.2
 $160.3
 $3.5
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.
Consolidated Statements of Changes in Equity
       
 Evergy, Inc. Shareholders  
 Common stock sharesCommon stockRetained earningsAOCINon-controlling interestsTotal equity
 (millions, except share amounts)
Balance as of December 31, 2016141,791,153
$2,727.3
$1,078.6
$—
$27.3
$3,833.2
Net income—
—
323.9
—
12.6
336.5
Issuance of stock12,131
0.6
—
—
—
0.6
Issuance of stock compensation and reinvested dividends, net of tax withholding290,991
(1.9)—
—
—
(1.9)
Dividends declared on common stock ($1.60 per share)—
—
(229.2)—
—
(229.2)
Stock compensation expense—
8.8
—
—
—
8.8
Deconsolidation of noncontrolling interests—
—
—
—
(81.9)(81.9)
Distributions to shareholders of noncontrolling interests—
—
—
—
(5.7)(5.7)
Balance as of December 31, 2017142,094,275
2,734.8
1,173.3
—
(47.7)3,860.4
Net income—
—
535.8
—
10.2
546.0
Issuance of stock to Great Plains Energy shareholders128,947,518
6,979.9
—
—
—
6,979.9
Issuance of restricted common stock122,505
—
—
—
—
—
Issuance of stock compensation and reinvested dividends,
net of tax withholding		533,273
(16.7)—
—
—
(16.7)
Dividends declared on common stock ($1.735 per share)—
—
(362.1)—
—
(362.1)
Dividend equivalents declared—
—
(1.0)—
—
(1.0)
Stock compensation expense—
29.9
—
—
—
29.9
Repurchase of common stock(16,371,319)(1,042.3)—
—
—
(1,042.3)
Derivative hedging activity, net of tax—
—
—
(4.0)—
(4.0)
Change in unrecognized pension expense, net of tax—
—
—
1.0
—
1.0
Other—
(0.4)—
—
—
(0.4)
Balance as of December 31, 2018255,326,252
8,685.2
1,346.0
(3.0)(37.5)9,990.7
Net income—
—
669.9
—
15.7
685.6
Issuance of stock compensation and reinvested dividends,
net of tax withholding		111,849
(2.4)—
—
—
(2.4)
Dividends declared on common stock ($1.93 per share)—
—
(462.5)—
—
(462.5)
Dividend equivalents declared—
—
(1.9)—
—
(1.9)
Stock compensation expense—
16.3
—
—
—
16.3
Repurchase of common stock under repurchase plan(28,796,658)(1,628.7)—
—
—
(1,628.7)
Consolidation of noncontrolling interests—
—
—
—
3.8
3.8
Distributions to shareholders of noncontrolling interests—
—
—
—
(8.6)(8.6)
Derivative hedging activity, net of tax—
—
—
(46.4)—
(46.4)
Change in unrecognized pension expense, net of tax—
—
—
(0.6)—
(0.6)
Balance as of December 31, 2019226,641,443
$7,070.4
$1,551.5
$(50.0)$(26.6)$8,545.3
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.
Consolidated Balance Sheets
 
 December 31
 2018 2017
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:       
Current maturities of long-term debt $705.4
   $—
 
Current maturities of long-term debt of variable interest entities 30.3
   28.5
 
Notes payable and commercial paper 738.6
   275.7
 
Collateralized note payable 365.0
   —
 
Accounts payable 451.5
   204.2
 
Accrued dividends —
   53.8
 
Accrued taxes 133.6
   87.7
 
Accrued interest 110.9
   72.7
 
Regulatory liabilities 110.2
   11.6
 
Asset retirement obligations 49.8
   25.1
 
Other 171.9
   64.4
 
Total Current Liabilities 2,867.2
   823.7
 
LONG-TERM LIABILITIES:  
    
 
Long-term debt, net 6,636.3
   3,687.6
 
Long-term debt of variable interest entities, net 51.1
   81.4
 
Deferred income taxes 1,599.2
   815.7
 
Unamortized investment tax credits 373.2
   257.1
 
Regulatory liabilities 2,218.8
   1,094.0
 
Pension and post-retirement liability 987.6
   491.2
 
Asset retirement obligations 637.3
   380.0
 
Other 236.7
   133.3
 
Total Long-Term Liabilities 12,740.2
   6,940.3
 
Commitments and Contingencies (Note 14) 

   

 
EQUITY:       
Evergy, Inc. Shareholders' Equity:       
Common stock - 600,000,000 shares authorized, without par value, 255,326,252 shares issued (275,000,000 shares authorized, $5 par value, 142,094,275 shares issued as of December 31, 2017) 8,685.2
   2,734.8
 
Retained earnings 1,346.0
   1,173.3
 
Accumulated other comprehensive loss (3.0)   —
 
Total Evergy, Inc. Shareholders' Equity 10,028.2
   3,908.1
 
Noncontrolling Interests (37.5)   (47.7) 
Total Equity 9,990.7
   3,860.4
 
TOTAL LIABILITIES AND EQUITY $25,598.1
   $11,624.4
 
EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Income
       
Year Ended December 31 2019 2018 2017
  (millions)
OPERATING REVENUES $2,507.4
 $2,614.9
 $2,571.0
OPERATING EXPENSES:      
Fuel and purchased power 493.0
 599.2
 541.5
SPP network transmission costs 251.3
 259.9
 247.9
Operating and maintenance 530.5
 640.7
 563.5
Depreciation and amortization 443.8
 390.9
 371.7
Taxes other than income tax 192.3
 173.7
 167.6
Total Operating Expenses 1,910.9
 2,064.4
 1,892.2
INCOME FROM OPERATIONS 596.5
 550.5
 678.8
OTHER INCOME (EXPENSE):      
Investment earnings (loss) 4.1
 (0.6) 4.0
Other income 23.1
 13.9
 8.3
Other expense (40.1) (46.8) (39.1)
Total Other Expense, Net (12.9) (33.5) (26.8)
Interest expense 177.0
 176.8
 171.0
INCOME BEFORE INCOME TAXES 406.6
 340.2
 481.0
Income tax expense (benefit) 52.1
 (4.3) 151.2
Equity in earnings of equity method investees, net of income taxes 4.6
 4.6
 6.7
NET INCOME 359.1
 349.1
 336.5
Less: Net income attributable to noncontrolling interests 15.7
 10.2
 12.6
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC. $343.4
 $338.9
 $323.9
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
Table of Contents


EVERGY, INC.
Consolidated Statements of Cash Flows
 
      
Year Ended December 312018 2017 2016
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$546.0
 $336.5
 $361.2
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization618.8
 371.7
 338.5
Amortization of nuclear fuel43.6
 32.2
 26.7
Amortization of deferred refueling outage21.2
 16.1
 18.4
Amortization of deferred regulatory gain from sale leaseback(5.5) (5.5) (5.5)
Amortization of corporate-owned life insurance22.6
 20.6
 18.0
Non-cash compensation29.9
 8.8
 9.3
Net deferred income taxes and credits124.2
 149.6
 185.2
Allowance for equity funds used during construction(3.1) (2.0) (11.6)
Payments for asset retirement obligations(22.4) (16.0) (5.4)
Equity in earnings of equity method investees, net of income taxes(5.4) (6.7) (6.5)
Other(2.0) (6.0) (22.0)
Changes in working capital items:     
Accounts receivable265.1
 (2.1) (30.3)
Accounts receivable pledged as collateral(185.0) —
 —
Fuel inventory and supplies54.7
 7.2
 1.8
Prepaid expenses and other current assets(128.1) 55.8
 (18.3)
Accounts payable56.7
 10.0
 (8.1)
Accrued taxes(76.4) 9.2
 (5.9)
Other current liabilities92.0
 (118.0) (86.4)
Changes in other assets66.8
 32.0
 21.4
Changes in other liabilities(15.9) 19.3
 23.3
Cash Flows from Operating Activities1,497.8
 912.7
 803.8
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: 
  
  
Additions to property, plant and equipment(1,069.7) (764.6) (1,087.0)
Cash acquired from the merger with Great Plains Energy1,154.2
 —
 —
Purchase of securities - trusts(117.5) (41.0) (46.6)
Sale of securities - trusts117.7
 41.2
 47.0
Investment in corporate-owned life insurance(17.1) (17.0) (18.1)
Proceeds from investment in corporate-owned life insurance6.8
 4.2
 114.7
Proceeds from settlement of interest rate swap140.6
 —
 —
Other investing activities(17.6) (3.6) (4.1)
Cash Flows from (used in) Investing Activities197.4
 (780.8) (994.1)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: 
  
  
Short term debt, net(104.0) (91.3) 116.2
Collateralized short-term borrowings, net185.0
 —
 —
Proceeds from long-term debt290.9
 296.2
 396.3
Proceeds from long-term debt of variable interest entity—
 —
 162.0
Retirements of long-term debt(395.8) (125.0) (50.0)
Retirements of long-term debt of variable interest entities(28.5) (26.8) (190.4)
Borrowings against cash surrender value of corporate-owned life insurance56.5
 55.1
 57.8
Repayment of borrowings against cash surrender value of corporate-owned life insurance(3.9) (1.0) (89.3)
Cash dividends paid(475.0) (223.1) (204.3)
Repurchase of common stock(1,042.3) —
 —
Other financing activities(21.3) (15.7) (8.1)
Cash Flows from (used in) Financing Activities(1,538.4) (131.6) 190.2
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH156.8
 0.3
 (0.1)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:     
Beginning of period, including restricted cash of $0.1, $0.1 and $0.1, respectively3.5
 3.2
 3.3
End of period, including restricted cash of $0.0, $0.1 and $0.1, respectively$160.3
 $3.5
 $3.2
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
Table of Contents


EVERGY, INC.
Consolidated Statements of Changes in Equity
       
 Evergy, Inc. Shareholders  
 Common stock sharesCommon stockRetained earningsAOCINon-controlling interestsTotal equity
 (millions, except share amounts)
Balance as of December 31, 2015141,353,426
$2,710.9
$945.8
$—
$15.2
$3,671.9
Net income—
—
346.6
—
14.6
361.2
Issuance of stock48,101
2.4
—
—
—
2.4
Issuance of stock for compensation and reinvested dividends389,626
9.7
—
—
—
9.7
Tax withholding related to stock compensation—
(5.0)—
—
—
(5.0)
Dividends declared on common stock ($1.52 per share)—
—
(217.1)—
—
(217.1)
Stock compensation expense—
9.3
—
—
—
9.3
Distributions to shareholders of noncontrolling interests—
—
—
—
(2.5)(2.5)
Cumulative effect of adoption of ASU 2016-09—
—
3.3
—
—
3.3
Balance as of December 31, 2016141,791,153
2,727.3
1,078.6
—
27.3
3,833.2
Net income—
—
323.9
—
12.6
336.5
Issuance of stock12,131
0.6
—
—
—
0.6
Issuance of stock for compensation and reinvested dividends290,991
5.1
—
—
—
5.1
Tax withholding related to stock compensation—
(7.0)—
—
—
(7.0)
Dividends declared on common stock ($1.60 per share)—
—
(229.2)—
—
(229.2)
Stock compensation expense—
8.8
—
—
—
8.8
Deconsolidation of noncontrolling interests—
—
—
—
(81.9)(81.9)
Distributions to shareholders of noncontrolling interests—
—
—
—
(5.7)(5.7)
Balance as of December 31, 2017142,094,275
2,734.8
1,173.3
—
(47.7)3,860.4
Net income—
—
535.8
—
10.2
546.0
Issuance of stock to Great Plains Energy shareholders128,947,518
6,979.9
—
—
—
6,979.9
Issuance of restricted common stock122,505
—
—
—
—
—
Issuance of stock for compensation and reinvested dividends533,273
0.5
—
—
—
0.5
Tax withholding related to stock compensation—
(17.2)—
—
—
(17.2)
Dividends declared on common stock ($1.735 per share)—
—
(362.1)—
—
(362.1)
Dividend equivalents declared—
—
(1.0)—
—
(1.0)
Stock compensation expense—
29.9
—
—
—
29.9
Repurchase of common stock(16,371,319)(1,042.3)—
—
—
(1,042.3)
Derivative hedging activity, net of tax—
—
—
(4.0)—
(4.0)
Change in unrecognized pension expense, net of tax—
—
—
1.0
—
1.0
Other—
(0.4)—
—
—
(0.4)
Balance as of December 31, 2018255,326,252
$8,685.2
$1,346.0
$(3.0)$(37.5)$9,990.7
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
Table of Contents


WESTAR ENERGY, INC.
Consolidated Statements of Income
       
Year Ended December 31 2018 2017 2016
  (millions)
OPERATING REVENUES $2,614.9
 $2,571.0
 $2,562.1
OPERATING EXPENSES:      
Fuel and purchased power 599.2
 541.5
 509.5
SPP network transmission costs 259.9
 247.9
 232.8
Operating and maintenance 640.7
 563.5
 587.2
Depreciation and amortization 390.9
 371.7
 338.5
Taxes other than income tax 173.7
 167.6
 191.7
Total Operating Expenses 2,064.4
 1,892.2
 1,859.7
INCOME FROM OPERATIONS 550.5
 678.8
 702.4
OTHER INCOME (EXPENSE):      
Investment earnings (loss) (0.6) 4.0
 2.5
Other income 13.9
 8.3
 34.6
Other expense (46.8) (39.1) (38.6)
Total Other Income (Expense), Net (33.5) (26.8) (1.5)
Interest expense 176.8
 171.0
 161.7
INCOME BEFORE INCOME TAXES 340.2
 481.0
 539.2
Income tax expense (benefit) (4.3) 151.2
 184.5
Equity in earnings of equity method investees, net of income taxes 4.6
 6.7
 6.5
NET INCOME 349.1
 336.5
 361.2
Less: Net income attributable to noncontrolling interests 10.2
 12.6
 14.6
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC. $338.9
 $323.9
 $346.6
The disclosures regarding Westar Energy, Inc.Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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WESTAR ENERGY, INC.
EVERGY KANSAS CENTRAL, INC.EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
      
December 31December 31
2018 20172019 2018
ASSETS(millions, except share amounts)(millions, except share amounts)
CURRENT ASSETS:          
Cash and cash equivalents $44.5
 $3.4
  $5.2
 $44.5
 
Receivables, net 84.3
 290.7
  140.4
 84.3
 
Related party receivables 2.6
 —
  9.9
 2.6
 
Accounts receivable pledged as collateral 185.0
 —
  171.0
 185.0
 
Fuel inventory and supplies 276.8
 293.6
  266.4
 276.8
 
Income taxes receivable 42.7
 —
  30.4
 42.7
 
Regulatory assets 97.1
 99.5
  93.3
 97.1
 
Prepaid expenses and other assets 35.0
 39.8
  34.3
 35.0
 
Total Current Assets 768.0
 727.0
  750.9
 768.0
 
PROPERTY, PLANT AND EQUIPMENT, NET 9,718.3
 9,553.8
  9,864.9
 9,718.3
 
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET 169.2
 176.3
  162.0
 169.2
 
OTHER ASSETS:  
  
   
  
 
Regulatory assets 700.4
 685.4
  730.4
 700.4
 
Nuclear decommissioning trust fund 227.5
 237.1
  272.5
 227.5
 
Other 233.4
 244.8
  266.0
 233.4
 
Total Other Assets 1,161.3
 1,167.3
  1,268.9
 1,161.3
 
TOTAL ASSETS $11,816.8
 $11,624.4
  $12,046.7
 $11,816.8
 
The disclosures regarding Westar EnergyEvergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.


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WESTAR ENERGY, INC.
EVERGY KANSAS CENTRAL, INC.EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
 
December 31December 31
2018 20172019 2018
LIABILITIES AND EQUITY(millions, except share amounts)(millions, except share amounts)
CURRENT LIABILITIES:          
Current maturities of long-term debt $300.0
 $—
  $250.0
 $300.0
 
Current maturities of long-term debt of variable interest entities 30.3
 28.5
  32.3
 30.3
 
Notes payable and commercial paper 411.7
 275.7
  249.2
 411.7
 
Collateralized note payable 185.0
 —
  171.0
 185.0
 
Accounts payable 154.4
 204.2
  200.5
 154.4
 
Related party payables 14.9
 —
  14.8
 14.9
 
Accrued dividends —
 53.8
 
Accrued taxes 88.6
 87.7
  98.7
 88.6
 
Accrued interest 74.4
 72.7
  74.2
 74.4
 
Regulatory liabilities 19.5
 11.6
  42.3
 19.5
 
Asset retirement obligations 17.1
 25.1
  23.3
 17.1
 
Other 83.0
 64.4
  130.2
 83.0
 
Total Current Liabilities 1,378.9
 823.7
  1,286.5
 1,378.9
 
LONG-TERM LIABILITIES:  
  
   
  
 
Long-term debt, net 3,389.8
 3,687.6
  3,436.1
 3,389.8
 
Long-term debt of variable interest entities, net 51.1
 81.4
  18.8
 51.1
 
Deferred income taxes 815.4
 815.7
  817.7
 815.4
 
Unamortized investment tax credits 249.7
 257.1
  253.2
 249.7
 
Regulatory liabilities 1,101.8
 1,094.0
  1,132.5
 1,101.8
 
Pension and post-retirement liability 474.7
 491.2
  495.5
 474.7
 
Asset retirement obligations 264.0
 380.0
  249.6
 264.0
 
Other 130.7
 133.3
  151.8
 130.7
 
Total Long-Term Liabilities 6,477.2
 6,940.3
  6,555.2
 6,477.2
 
Commitments and Contingencies (Note 14) 

 

 
Commitments and Contingencies (Note 15) 


 


 
EQUITY:  
     
   
Westar Energy, Inc. Shareholder's Equity:  
  
 
Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued (275,000,000 shares authorized, $5 par value, and 142,094,275 shares issued as of December 31, 2017) 2,737.6
 2,734.8
 
Evergy Kansas Central, Inc. Shareholder's Equity:  
  
 
Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued 2,737.6
 2,737.6
 
Retained earnings 1,260.6
 1,173.3
  1,494.0
 1,260.6
 
Total Westar Energy, Inc. Shareholder's Equity 3,998.2
 3,908.1
 
Total Evergy Kansas Central, Inc. Shareholder's Equity 4,231.6
 3,998.2
 
Noncontrolling Interests (37.5) (47.7)  (26.6) (37.5) 
Total Equity 3,960.7
 3,860.4
  4,205.0
 3,960.7
 
TOTAL LIABILITIES AND EQUITY $11,816.8
 $11,624.4
  $12,046.7
 $11,816.8
 
The disclosures regarding Westar EnergyEvergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.



69
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WESTAR ENERGY, INC.
EVERGY KANSAS CENTRAL, INC.EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Cash Flows
Year Ended December 312018 2017 20162019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)(millions)
Net income$349.1
 $336.5
 $361.2
$359.1
 $349.1
 $336.5
Adjustments to reconcile income (loss) to net cash from operating activities:     
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization390.9
 371.7
 338.5
443.8
 390.9
 371.7
Amortization of nuclear fuel26.0
 32.2
 26.7
25.6
 26.0
 32.2
Amortization of deferred refueling outage13.7
 16.1
 18.4
12.8
 13.7
 16.1
Amortization of deferred regulatory gain from sale leaseback(5.5) (5.5) (5.5)
Amortization of corporate-owned life insurance22.6
 20.6
 18.0
19.8
 22.6
 20.6
Non-cash compensation19.9
 8.8
 9.3
—
 19.9
 8.8
Net deferred income taxes and credits(2.2) 149.6
 185.2
11.6
 (2.2) 149.6
Allowance for equity funds used during construction(2.9) (2.0) (11.6)—
 (2.9) (2.0)
Payments for asset retirement obligations(12.0) (16.0) (5.4)(14.8) (12.0) (16.0)
Equity in earnings of equity method investees, net of income taxes(4.6) (6.7) (6.5)(4.6) (4.6) (6.7)
Income from corporate-owned life insurance(29.0) (2.3) (2.8)
Other(2.2) (6.0) (22.0)(5.5) (5.4) (8.7)
Changes in working capital items:          
Accounts receivable207.9
 (2.1) (30.3)(65.9) 207.9
 (2.1)
Accounts receivable pledged as collateral(185.0) —
 —
14.0
 (185.0) —
Fuel inventory and supplies17.3
 7.2
 1.8
10.9
 17.3
 7.2
Prepaid expenses and other current assets(134.2) 55.8
 (18.3)(11.7) (134.2) 55.8
Accounts payable(17.6) 10.0
 (8.1)6.9
 (17.6) 10.0
Accrued taxes(24.1) 9.2
 (5.9)20.2
 (24.1) 9.2
Other current liabilities88.3
 (118.0) (86.4)12.1
 88.3
 (118.0)
Changes in other assets42.7
 32.0
 21.4
47.0
 42.7
 32.0
Changes in other liabilities(36.2) 19.3
 23.3
(29.5) (36.2) 19.3
Cash Flows from Operating Activities751.9
 912.7
 803.8
822.8
 751.9
 912.7
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: 
  
   
  
  
Additions to property, plant and equipment(713.3) (764.6) (1,087.0)(596.1) (713.3) (764.6)
Purchase of securities - trusts(99.4) (41.0) (46.6)(21.8) (99.4) (41.0)
Sale of securities - trusts104.2
 41.2
 47.0
21.6
 104.2
 41.2
Investment in corporate-owned life insurance(17.1) (17.0) (18.1)(17.6) (17.1) (17.0)
Proceeds from investment in corporate-owned life insurance6.8
 4.2
 114.7
158.9
 6.8
 4.2
Other investing activities(8.6) (3.6) (4.1)(3.2) (8.6) (3.6)
Cash Flows (used in) Investing Activities(727.4) (780.8) (994.1)
Cash Flows used in Investing Activities(458.2) (727.4) (780.8)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: 
  
   
  
  
Short term debt, net133.7
 (91.3) 116.2
(162.5) 133.7
 (91.3)
Collateralized short-term debt, net185.0
 —
 —
(14.0) 185.0
 —
Proceeds from long-term debt121.9
 296.2
 396.3
294.7
 121.9
 296.2
Proceeds from long-term debt of variable interest entity—
 —
 162.0
Retirements of long-term debt(121.9) (125.0) (50.0)(300.0) (121.9) (125.0)
Retirements of long-term debt of variable interest entities(28.5) (26.8) (190.4)(30.3) (28.5) (26.8)
Borrowings against cash surrender value of corporate-owned life insurance56.5
 55.1
 57.8
56.5
 56.5
 55.1
Repayment of borrowings against cash surrender value of corporate-owned life insurance(3.9) (1.0) (89.3)(125.4) (3.9) (1.0)
Cash dividends paid(305.1) (223.1) (204.3)(110.0) (305.1) (223.1)
Distributions to shareholders of noncontrolling interests(8.6) —
 (5.8)
Other financing activities(21.2) (15.7) (8.1)(4.3) (21.2) (9.9)
Cash Flows from (used in) Financing Activities16.5
 (131.6) 190.2
(403.9) 16.5
 (131.6)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH41.0
 0.3
 (0.1)(39.3) 41.0
 0.3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:          
Beginning of period, including restricted cash of $0.1, $0.1 and $0.1, respectively3.5
 3.2
 3.3
End of period, including restricted cash of $0.0, $0.1 and $0.1, respectively$44.5
 $3.5
 $3.2
Beginning of period44.5
 3.5
 3.2
End of period$5.2
 $44.5
 $3.5
The disclosures regarding Westar EnergyEvergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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WESTAR ENERGY, INC.
EVERGY KANSAS CENTRAL, INC.EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Changes in Equity
    
Westar Energy, Inc. Shareholders Evergy Kansas Central, Inc. Shareholder 
Common stock sharesCommon stockRetained earningsNon-controlling interestsTotal equityCommon stock sharesCommon stockRetained earningsNon-controlling interestsTotal equity
(millions, except share amounts)(millions, except share amounts)
Balance as of December 31, 2015141,353,426
$2,710.9
$945.8
$15.2
$3,671.9
Net income—
—
346.6
14.6
361.2
Issuance of stock48,101
2.4
—
—
2.4
Issuance of stock compensation and reinvested dividends389,626
9.7
—
—
9.7
Tax withholding related to stock compensation—
(5.0)—
—
(5.0)
Dividends declared on common stock—
—
(217.1)—
(217.1)
Stock compensation expense—
9.3
—
—
9.3
Distributions to shareholders of noncontrolling interests—
—
—
(2.5)(2.5)
Cumulative effect of adoption of ASU 2016-09—
—
3.3
—
3.3
Balance as of December 31, 2016141,791,153
2,727.3
1,078.6
27.3
3,833.2
141,791,153
$2,727.3
$1,078.6
$27.3
$3,833.2
Net income—
—
323.9
12.6
336.5
—
—
323.9
12.6
336.5
Issuance of stock12,131
0.6
—
—
0.6
12,131
0.6
—
—
0.6
Issuance of stock for compensation and reinvested dividends290,991
5.1
—
—
5.1
Tax withholding related to stock compensation—
(7.0)—
—
(7.0)
Issuance of stock for compensation and reinvested dividends, net of tax withholding290,991
(1.9)—
—
(1.9)
Dividends declared on common stock—
—
(229.2)—
(229.2)—
—
(229.2)—
(229.2)
Stock compensation expense—
8.8
—
—
8.8
—
8.8
—
—
8.8
Deconsolidation of noncontrolling interests—
—
—
(81.9)(81.9)
Deconsolidation of noncontrolling interest—
—
—
(81.9)(81.9)
Distributions to shareholders of noncontrolling interests—
—
—
(5.7)(5.7)—
—
—
(5.7)(5.7)
Balance as of December 31, 2017142,094,275
2,734.8
1,173.3
(47.7)3,860.4
142,094,275
2,734.8
1,173.3
(47.7)3,860.4
Net income—
—
338.9
10.2
349.1
——
338.9
10.2
349.1
Issuance of stock for compensation and reinvested dividends516,990
—
—
—
—
Issuance of stock for compensation and reinvested dividends, net of tax withholding516,990(17.2)—
—
(17.2)
Stock cancelled pursuant to Amended Merger Agreement(142,611,264)—
—
—
—
(142,611,264)—
—
—
—
Tax withholding related to stock compensation—
(17.2)—
—
(17.2)
Dividends declared on common stock—
—
(251.6)—
(251.6)——
(251.6)—
(251.6)
Stock compensation expense—
19.9
—
—
19.9
—19.9
—
—
19.9
Other—
0.1
—
—
0.1
—0.1
—
—
0.1
Balance as of December 31, 20181
$2,737.6
$1,260.6
$(37.5)$3,960.7
1
2,737.6
1,260.6
(37.5)3,960.7
Net income—
—
343.4
15.7
359.1
Dividends declared on common stock—
—
(110.0)—
(110.0)
Consolidation of noncontrolling interests—
—
—
3.8
3.8
Distributions to shareholders of noncontrolling interests—
—
—
(8.6)(8.6)
Balance as of December 31, 20191
$2,737.6
$1,494.0
$(26.6)$4,205.0
The disclosures regarding Westar EnergyEvergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.



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KANSAS CITY POWER & LIGHT COMPANY
EVERGY METRO, INC.EVERGY METRO, INC.
Consolidated Statements of Comprehensive Income
        
Year Ended December 31 2018 2017 2016 2019 2018 2017
 (millions) (millions)
OPERATING REVENUES $1,823.1
 $1,890.7
 $1,875.4
 $1,806.5
 $1,823.1
 $1,890.7
OPERATING EXPENSES:  
  
  
  
  
  
Fuel and purchased power 520.6
 480.7
 429.1
 482.1
 520.6
 480.7
Operating and maintenance 494.2
 474.8
 502.0
 451.9
 494.2
 474.8
Depreciation and amortization 281.3
 266.3
 247.5
 318.4
 281.3
 266.3
Taxes other than income tax 117.2
 182.5
 177.5
 127.6
 117.2
 182.5
Total Operating Expenses 1,413.3
 1,404.3
 1,356.1
 1,380.0
 1,413.3
 1,404.3
INCOME FROM OPERATIONS 409.8
 486.4
 519.3
 426.5
 409.8
 486.4
OTHER INCOME (EXPENSE):            
Investment earnings 2.8
 2.0
 0.6
 2.4
 2.8
 2.0
Other income 2.2
 9.2
 11.2
 3.2
 2.2
 9.2
Other expense (30.9) (50.8) (44.8) (21.4) (30.9) (50.8)
Total Other Income (Expense), Net (25.9) (39.6) (33.0)
Total Other Expense, Net (15.8) (25.9) (39.6)
Interest expense 133.7
 138.8
 139.4
 119.8
 133.7
 138.8
INCOME BEFORE INCOME TAXES 250.2
 308.0
 346.9
 290.9
 250.2
 308.0
Income tax expense 87.3
 128.2
 121.9
 35.7
 87.3
 128.2
NET INCOME $162.9
 $179.8
 $225.0
 $255.2
 $162.9
 $179.8
COMPREHENSIVE INCOME  
  
  
  
  
  
NET INCOME $162.9
 $179.8
 $225.0
 $255.2
 $162.9
 $179.8
OTHER COMPREHENSIVE INCOME  
  
  
  
  
  
Derivative hedging activity  
  
  
  
  
  
Reclassification to expenses, net of tax: 3.7
 4.6
 5.4
 0.7
 3.7
 4.6
Derivative hedging activity, net of tax 3.7
 4.6
 5.4
 0.7
 3.7
 4.6
Total Other Comprehensive Income 3.7
 4.6
 5.4
Total other comprehensive income 0.7
 3.7
 4.6
COMPREHENSIVE INCOME $166.6
 $184.4
 $230.4
 $255.9
 $166.6
 $184.4
The disclosures regarding KCP&LEvergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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KANSAS CITY POWER & LIGHT COMPANY
EVERGY METRO, INC.EVERGY METRO, INC.
Consolidated Balance Sheets
      
December 31December 31
2018 20172019 2018
ASSETS(millions, except share amounts)(millions, except share amounts)
CURRENT ASSETS:          
Cash and cash equivalents $2.6
 $2.2
  $2.0
 $2.6
 
Receivables, net 62.7
 106.3
  48.1
 62.7
 
Related party receivables 101.8
 84.7
  93.9
 101.8
 
Accounts receivable pledged as collateral 130.0
 130.0
  118.0
 130.0
 
Fuel inventory and supplies 177.6
 197.0
  163.0
 177.6
 
Income taxes receivable —
 5.4
  8.7
 —
 
Regulatory assets 130.9
 153.6
  95.4
 130.9
 
Prepaid expenses and other assets 36.9
 27.6
 
Prepaid expenses 22.8
 20.1
 
Other assets 15.0
 16.8
 
Total Current Assets 642.5
 706.8
  566.9
 642.5
 
PROPERTY, PLANT AND EQUIPMENT, NET 6,688.1
 6,565.6
  6,839.0
 6,688.1
 
OTHER ASSETS:  
  
   
  
 
Regulatory assets 495.2
 545.1
  464.4
 495.2
 
Nuclear decommissioning trust fund 244.6
 258.4
  300.7
 244.6
 
Other 50.1
 48.0
  134.1
 50.1
 
Total Other Assets 789.9
 851.5
  899.2
 789.9
 
TOTAL ASSETS $8,120.5
 $8,123.9
  $8,305.1
 $8,120.5
 
The disclosures regarding KCP&LEvergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.


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KANSAS CITY POWER & LIGHT COMPANY
EVERGY METRO, INC.EVERGY METRO, INC.
Consolidated Balance Sheets
 
December 31December 31
2018 20172019 2018
LIABILITIES AND EQUITY (millions, except share amounts)
CURRENT LIABILITIES:          
Current maturities of long-term debt $400.0
 $350.0
  $—
 $400.0
 
Notes payable and commercial paper 176.9
 167.5
  199.3
 176.9
 
Collateralized note payable 130.0
 130.0
  118.0
 130.0
 
Accounts payable 211.1
 249.0
  233.6
 211.1
 
Related party payables 4.6
 —
 
Accrued taxes 39.7
 29.0
  38.8
 39.7
 
Accrued interest 28.9
 32.4
  26.7
 28.9
 
Regulatory liabilities 52.8
 8.3
  11.4
 52.8
 
Asset retirement obligations 29.2
 34.9
  36.1
 29.2
 
Accrued compensation benefits 45.1
 52.5
 
Other 69.7
 63.4
  34.0
 17.2
 
Total Current Liabilities 1,138.3
 1,064.5
  747.6
 1,138.3
 
LONG-TERM LIABILITIES:  
  
   
  
 
Long-term debt, net 2,130.1
 2,232.2
  2,525.0
 2,130.1
 
Deferred income taxes 631.8
 616.1
  642.8
 631.8
 
Unamortized investment tax credits 120.7
 121.8
  119.6
 120.7
 
Regulatory liabilities 794.3
 770.9
  792.2
 794.3
 
Pension and post-retirement liability 491.9
 512.2
  499.7
 491.9
 
Asset retirement obligations 231.8
 231.4
  217.5
 231.8
 
Other 81.8
 61.6
  180.0
 81.8
 
Total Long-Term Liabilities 4,482.4
 4,546.2
  4,976.8
 4,482.4
 
Commitments and Contingencies (Note 14) 

 

 
Commitments and Contingencies (Note 15) 


 


 
EQUITY:  
  
   
  
 
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value 1,563.1
 1,563.1
  1,563.1
 1,563.1
 
Retained earnings 932.6
 949.7
  1,012.8
 932.6
 
Accumulated other comprehensive income 4.1
 0.4
  4.8
 4.1
 
Total Equity 2,499.8
 2,513.2
  2,580.7
 2,499.8
 
TOTAL LIABILITIES AND EQUITY $8,120.5
 $8,123.9
  $8,305.1
 $8,120.5
 
The disclosures regarding KCP&LEvergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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KANSAS CITY POWER & LIGHT COMPANY
EVERGY METRO, INC.EVERGY METRO, INC.
Consolidated Statements of Cash Flows
          
Year Ended December 312018 2017 20162019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)(millions)
Net income$162.9
 $179.8
 $225.0
$255.2
 $162.9
 $179.8
Adjustments to reconcile income to net cash from operating activities:          
Depreciation and amortization281.3
 266.3
 247.5
318.4
 281.3
 266.3
Amortization of nuclear fuel26.2
 32.1
 26.6
25.9
 26.2
 32.1
Amortization of deferred refueling outage13.5
 18.3
 19.0
12.8
 13.5
 18.3
Net deferred income taxes and credits48.6
 82.5
 92.4
(30.6) 48.6
 82.5
Allowance for equity funds used during construction(1.4) (6.0) (6.6)(2.2) (1.4) (6.0)
Payments for asset retirement obligations(13.1) (25.5) (15.0)(2.5) (13.1) (25.5)
Other3.9
 7.5
 8.8
0.3
 3.9
 7.5
Changes in working capital items:    

    

Accounts receivable36.5
 13.8
 (12.4)37.0
 36.5
 13.8
Accounts receivable pledged as collateral—
 (20.0) —
12.0
 —
 (20.0)
Fuel inventory and supplies19.4
 (5.2) 6.3
14.6
 19.4
 (5.2)
Prepaid expenses and other current assets7.2
 8.4
 (73.2)28.0
 7.2
 8.4
Accounts payable(34.6) 11.7
 (30.5)9.1
 (34.6) 11.7
Accrued taxes16.1
 9.1
 67.9
(9.6) 16.1
 9.1
Other current liabilities10.4
 (0.1) 10.4
(53.2) 10.4
 (0.1)
Changes in other assets42.9
 31.7
 66.5
33.7
 42.9
 31.7
Changes in other liabilities37.9
 6.5
 (9.4)(34.7) 37.9
 6.5
Cash Flows from Operating Activities657.7
 610.9
 623.3
614.2
 657.7
 610.9
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: 
  
   
  
  
Additions to property, plant and equipment(430.7) (468.6) (447.9)(445.0) (430.7) (468.6)
Purchase of securities - trusts(35.1) (33.6) (31.9)(34.0) (35.1) (33.6)
Sale of securities - trusts27.1
 30.3
 28.6
25.7
 27.1
 30.3
Other investing activities4.8
 0.9
 (0.3)9.0
 4.8
 0.9
Cash Flows (used in) Investing Activities(433.9) (471.0) (451.5)
Cash Flows used in Investing Activities(444.3) (433.9) (471.0)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: 
  
   
  
  
Short term debt, net8.0
 34.6
 (47.4)22.4
 8.0
 34.6
Collateralized short-term borrowings, net—
 20.0
 —
Collateralized short-term debt, net(12.0) —
 20.0
Proceeds from long-term debt465.6
 296.2
 —
393.2
 465.6
 296.2
Retirements of long-term debt(519.9) (281.0) —
(400.0) (519.9) (281.0)
Cash dividends paid(180.0) (212.0) (122.0)(175.0) (180.0) (212.0)
Other financing activities2.9
 —
 (0.2)0.9
 2.9
 —
Cash Flows (used in) Financing Activities(223.4) (142.2) (169.6)
NET CHANGE IN CASH AND CASH EQUIVALENTS0.4
 (2.3) 2.2
CASH AND CASH EQUIVALENTS:     
Cash Flows used in Financing Activities(170.5) (223.4) (142.2)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(0.6) 0.4
 (2.3)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:     
Beginning of period2.2
 4.5
 2.3
2.6
 2.2
 4.5
End of period$2.6
 $2.2
 $4.5
$2.0
 $2.6
 $2.2
The disclosures regarding KCP&LEvergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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KANSAS CITY POWER & LIGHT COMPANY
EVERGY METRO, INCEVERGY METRO, INC
Consolidated Statements of Changes in Equity
 
          Common stock shares Common Stock Retained earnings AOCI - Net gains (losses) on cash flow hedges Total Equity
Common stock shares Common stock Retained earnings AOCI - Net gains (losses) on cash flow hedges Total equity (millions, except share amounts)
(millions, except share amounts)
Balance as of December 31, 20151
 $1,563.1
 $879.6
 $(9.6) $2,433.1
Net income—
 —
 225.0
 —
 225.0
Dividends declared on common stock—
 —
 (122.0) —
 (122.0)
Derivative hedging activity, net of tax—
 —
 —
 5.4
 5.4
Balance as of December 31, 20161
 1,563.1
 982.6
 (4.2) 2,541.5
1
$1,563.1
$982.6
$(4.2)$2,541.5
Net income—
 —
 179.8
 —
 179.8
—
—
179.8
—
179.8
Cumulative effect of adoption of ASU 2016-09—
 —
 (0.7) —
 (0.7)—
—
(0.7)—
(0.7)
Dividends declared on common stock—
 —
 (212.0) —
 (212.0)—
—
(212.0)—
(212.0)
Derivative hedging activity, net of tax—
 —
 —
 4.6
 4.6
—
—
—
4.6
4.6
Balance as of December 31, 20171
 1,563.1
 949.7
 0.4
 2,513.2
1
1,563.1
949.7
0.4
2,513.2
Net income—
 —
 162.9
 —
 162.9
—
—
162.9
—
162.9
Dividends declared on common stock—
 —
 (180.0) —
 (180.0)—
—
(180.0)—
(180.0)
Derivative hedging activity, net of tax—
 —
 —
 3.7
 3.7
—
—
—
3.7
3.7
Balance as of December 31, 20181
 $1,563.1
 $932.6
 $4.1
 $2,499.8
1
1,563.1
932.6
4.1
2,499.8
Net income—
—
255.2
—
255.2
Dividends declared on common stock—
—
(175.0)—
(175.0)
Derivative hedging activity, net of tax—
—
—
0.7
0.7
Balance as of December 31, 20191
$1,563.1
$1,012.8
$4.8
$2,580.7
The disclosures regarding KCP&LEvergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.
WESTAR ENERGY,EVERGY KANSAS CENTRAL, INC.
KANSAS CITY POWER & LIGHT COMPANYEVERGY METRO, INC.
Combined Notes to Consolidated Financial Statements
The notes to consolidated financial statements that follow are a combined presentation for Evergy, Inc., Westar Energy,Evergy Kansas Central, Inc. and Kansas City Power & Light Company,Evergy Metro, Inc., all registrants under this filing.  The terms "Evergy," "Westar Energy,"Evergy Kansas Central," "KCP&L""Evergy Metro" and "Evergy Companies" are used throughout this report.  "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated.  "Westar Energy""Evergy Kansas Central" refers to Westar Energy,Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "KCP&L""Evergy Metro" refers to Kansas City Power & Light CompanyEvergy Metro, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Westar EnergyEvergy Kansas Central and KCP&L,Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.  
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries:subsidiaries listed below. In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.
Evergy Kansas Central, Inc. (Evergy Kansas Central), formerly known as Westar Energy, Inc., is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Westar EnergyEvergy Kansas Central has one1 active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South), formerly known as Kansas Gas and Electric Company (KGE).Company.
KCP&LEvergy Metro, Inc. (Evergy Metro), formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
Evergy Missouri West, Inc. (Evergy Missouri West), formerly known as KCP&L Greater Missouri Operations Company, (GMO) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
Evergy Transmission Company, LLC (Evergy Transmission Company), formerly known as GPE Transmission Holding Company, LLC, (GPETHC) 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. GPETHCEvergy Transmission Company accounts for its investment in Transource under the equity method.
Westar EnergyEvergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Westar EnergyEvergy Kansas Central and affiliatessubsidiaries 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). Westar EnergyEvergy Kansas Central accounts for its investment in Prairie Wind under the equity method.


Westar EnergySince the rebranding in September 2019, Evergy Kansas Central, Evergy Kansas South, Evergy Metro and KGE conductEvergy Missouri West have been conducting business in their respective service territories using the name Westar Energy. KCP&L and GMO conduct business in their respective service territories using the name KCP&L.Evergy. Collectively, the Evergy Companies have approximately 14,50014,700 MWs of owned generating capacity and renewable purchased power 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.
Evergy was incorporated in 2017 as Monarch Energy Holding, Inc. (Monarch Energy), a wholly-owned subsidiary of Great Plains Energy Incorporated (Great Plains Energy). Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy and did not conduct any business activities other than those required for its

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formation and matters contemplated by the Amended and Restated Agreement and Plan of Merger, dated as of July 9, 2017, by and among Great Plains Energy, Westar Energy,Evergy Kansas Central, Monarch Energy and King Energy, Inc. (King Energy), a wholly-owned subsidiary of Monarch Energy (Amended Merger Agreement). On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Westar Energy,Evergy Kansas Central, with Westar EnergyEvergy Kansas Central surviving the merger. These merger transactions resulted in Evergy becoming the parent entity of Westar EnergyEvergy Kansas Central and the direct subsidiaries of Great Plains Energy, including KCP&LEvergy Metro and GMO.Evergy Missouri West. See Note 2 for additional information regarding the merger.
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PrinciplesCash and Cash Equivalents
At December 31, 2019, Evergy had approximately $23.2 million of Consolidationcash and cash equivalents on hand.
Westar Energy was determinedCapital Requirements
Capital Expenditures
Evergy requires significant capital investments and expects to beneed cash primarily for utility construction programs designed to improve and expand facilities related to providing electric service, which include, but are not limited to, expenditures to develop new transmission lines and improvements to power plants, transmission and distribution lines and equipment. Evergy's capital expenditures were $1,210.1 million, $1,069.7 million and $764.6 million in 2019, 2018 and 2017, respectively.
Capital expenditures projected for the accounting acquirernext five years, excluding allowance for fund used during construction (AFUDC) and including costs of removal, are detailed in the mergerfollowing table. This capital expenditure plan is subject to continual review and thus,change.
  2020 2021 2022 2023 2024 
 (millions)
Generating facilities $487
 $555
 $563
 $455
 $263
 
Transmission and distribution facilities 893
 914
 886
 867
 1,006
 
General facilities 238
 117
 122
 92
 94
 
Total capital expenditures $1,618
 $1,586
 $1,571
 $1,414
 $1,363
 

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Contractual Obligations and Other Commitments
In the predecessorcourse of Evergy. Therefore,its business activities, the Evergy Companies enter into a variety of contracts and commercial commitments. Some of these result in direct obligations reflected on Evergy's consolidated balance sheets while others are commitments, some firm and some based on uncertainties, not reflected in Evergy's underlying consolidated financial statements reflectstatements.
The information in the resultsfollowing table is provided to summarize Evergy's cash obligations and commercial commitments.
Payment due by period2020 2021 2022 2023 2024After 2024Total
Long-term debt(millions)
Principal$251.1
 $432.0
 $387.5
 $439.5
 $800.0
 $6,642.9
 $8,953.0
Interest350.8
 327.2
 304.1
 288.9
 279.7
 3,930.7
 5,481.4
Long-term debt of VIEs             
Principal32.3
 18.8
 —
 —
 —
 —
 51.1
Interest0.8
 0.2
 —
 —
 —
 —
 1.0
Lease commitments             
Operating leases20.5
 17.0
 14.1
 11.0
 9.2
 44.7
 116.5
Finance leases8.1
 7.4
 6.7
 5.8
 4.7
 46.2
 78.9
Pension and other post-retirement plans (a)
131.9
 131.9
 131.9
 131.9
 131.9
 (a)
 659.5
Purchase commitments             
Fuel486.9
 137.0
 83.2
 84.7
 17.1
 94.1
 903.0
Power47.3
 47.4
 47.6
 47.8
 41.7
 325.2
 557.0
Other147.7
 42.3
 30.0
 25.1
 19.4
 117.7
 382.2
Total contractual commitments (a)
$1,477.4
 $1,161.2
 $1,005.1
 $1,034.7
 $1,303.7
 $11,201.5
 $17,183.6
(a)
Evergy expects to make contributions to the pension and other post-retirement plans beyond 2024 but the amounts are not yet determined.
Long-term debt includes current maturities. Long-term debt principal excludes $80.7 million of operations of Westarunamortized net discounts and debt issuance costs and a $125.5 million fair value adjustment recorded in connection with purchase accounting for the Great Plains Energy for 2017 and 2016 and the financial position of Westar EnergyEvergy Kansas Central merger. Variable rate interest obligations are based on rates as of December 31, 2017.2019.
Operating lease commitments include leases for office buildings, computer equipment, operating facilities, vehicles and rail cars to serve jointly-owned generating units where Evergy Kansas Central or Evergy Metro is the managing partner and is reimbursed by other joint-owners for its proportionate share of the cost. Finance lease commitments include obligations for both principal and interest.
Evergy expects to contribute $131.9 million to the pension and other post-retirement plans in 2020, of which the majority is expected to be paid by Evergy Kansas Central and Evergy Metro. Additional contributions to the plans are expected beyond 2024 in amounts at least sufficient to meet the greater of Employee Retirement Income Security Act of 1974, as amended (ERISA) or regulatory funding requirements; however, these amounts have not yet been determined. Amounts for years after 2020 are estimates based on information available in determining the amount for 2020. Actual amounts for years after 2020 could be significantly different than the estimated amounts in the table above.
Fuel commitments consist of commitments for nuclear fuel, coal and coal transportation costs. Power commitments consist of certain commitments for renewable energy under power purchase agreements. Other represents individual commitments entered into in the ordinary course of business.
Evergy has other insignificant long-term liabilities recorded on its consolidated balance sheet at December 31, 2019, which do not have a definitive cash payout date and are not included in the table above.

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Common Stock Dividends
The amount and timing of dividends payable on Evergy's common stock are within the sole discretion of the Evergy Board. The amount and timing of dividends declared by the Evergy Board will be dependent on considerations such as Evergy's earnings, financial position, cash flows, capitalization ratios, regulation, reinvestment opportunities and debt covenants. Evergy targets a long-term dividend payout ratio of 60% to 70% of earnings. See Note 1 to the consolidated financial statements for information on the common stock dividend declared by the Evergy Board in February 2020.
The Evergy Companies also have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels. See Note 18 to the consolidated financial statements for further discussion of restrictions on dividend payments.
Common Stock Repurchase Program
In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock. For 2019, Evergy had separate operationstotal repurchases of common stock of $1,628.7 million and had repurchased 28.8 million shares under the repurchase program. Since the start of the repurchase program in August 2018, Evergy has made total repurchases of common stock of $2,671.0 million and has repurchased 45.2 million shares under the repurchase program. Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committee of the Evergy Board conducts its review of ways to enhance long-term shareholder value, which is expected to conclude in the first half of 2020.

See Note 18 to the consolidated financial statements for more information regarding Evergy's common stock repurchase program.
Off-Balance Sheet Arrangements
In the period beginningordinary course of business, Evergy and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiary's intended business purposes. In connection with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger, relateEvergy assumed the guarantees previously provided to Evergy Missouri West by Great Plains Energy. The majority of these agreements guarantee Evergy's own future performance, so a liability for the fair value of the obligation is not recorded.
At December 31, 2019, Evergy has provided $110.2 million of credit support for Evergy Missouri West as follows:
Evergy direct guarantees to Evergy Missouri West counterparties totaling $17.0 million, which expire in 2020, and
Evergy's guarantee of Evergy Missouri West long-term debt totaling $93.2 million, which includes debt with maturity dates ranging from 2020 to 2023.
Evergy has also guaranteed Evergy Missouri West's short-term debt, including its commercial paper program. At December 31, 2019, Evergy Missouri West had $93.4 million of commercial paper outstanding. None of the guaranteed obligations are subject to default or prepayment if Evergy Missouri West's credit ratings were downgraded.
The Evergy Companies also have off-balance sheet arrangements in the form of letters of credit entered into in the ordinary course of business.

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Cash Flows
The following table presents Evergy's cash flows from operating, investing and financing activities.
 201920182017
 (millions)
Cash flows from operating activities$1,749.0
$1,497.8
$912.7
Cash flows from (used in) investing activities(1,080.3)197.4
(780.8)
Cash flows used in financing activities(805.8)(1,538.4)(131.6)
Cash Flows from Operating Activities
Evergy's $251.2 million increase in cash flows from operating activities in 2019 compared to 2018 was primarily driven by a $252.3 million increase due to the inclusion of Evergy Metro's and Evergy Missouri West's cash flows from operating activities in the first five months of 2019 and $35.6 million of merger success fees paid by Evergy and Evergy Kansas Central upon the completion of the merger in June 2018.
Cash Flows from (used in) Investing Activities
Evergy's cash flows used in investing activities increased $1,277.7 million in 2019 compared to 2018 primarily driven by:
$1,154.2 million of cash acquired from Great Plains Energy in June 2018;
a $243.6 million increase in additions to property, plant and equipment due to the inclusion of Evergy Metro and Evergy Missouri West activity in the first five months of 2019; and
$140.6 million in proceeds from the settlement of deal contingent interest rate swaps in June 2018; partially offset by
an increase of $154.9 million in proceeds from COLI investments, primarily from Evergy Kansas Central due to a higher number of policy settlements in 2019.
Cash Flows used in Financing Activities
Evergy's cash flows used in financing activities decreased $732.6 million in 2019 compared to 2018 primarily driven by:
a $2,081.8 million increase in proceeds from long-term debt, net, as further described in Note 13 to the consolidated financial statements; partially offset by
a $586.4 million increase of repurchased common stock under the common stock repurchase program, as further described in Note 18 to the consolidated financial statements;
a $305.3 million increase in retirement of long-term debt, as further described in Note 13 to the consolidated financial statements;
a $211.0 million decrease in collateralized short-term debt, net borrowings primarily due to the establishment of Evergy Kansas Central’s receivable sale facility in the fourth quarter of 2018;
a $123.6 million increase in the repayment of borrowings from the cash surrender value of COLI, primarily from Evergy Kansas Central due to a higher number of policy settlements in 2019; and
a $69.8 million payment for the settlement of Evergy's interest rate swap that was designated as a cash flow hedge of its issuance of $800.0 million of 2.90% Senior Notes in September 2019.

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EVERGY KANSAS CENTRAL, INC.
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
The below results of operations and related discussion for Evergy Kansas Central is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
The following table summarizes Evergy Kansas Central's comparative results of operations.
 2019 Change 2018
 (millions)
Operating revenues$2,507.4
 $(107.5) $2,614.9
Fuel and purchased power493.0
 (106.2) 599.2
SPP network transmission costs251.3
 (8.6) 259.9
Operating and maintenance530.5
 (110.2) 640.7
Depreciation and amortization443.8
 52.9
 390.9
Taxes other than income tax192.3
 18.6
 173.7
Income from operations596.5
 46.0
 550.5
Other expense, net(12.9) 20.6
 (33.5)
Interest expense177.0
 0.2
 176.8
Income tax expense (benefit)52.1
 56.4
 (4.3)
Equity in earnings of equity method investees, net of income taxes4.6
 —
 4.6
Net income359.1
 10.0
 349.1
Less: Net income attributable to noncontrolling interests15.7
 5.5
 10.2
Net income attributable to Evergy Kansas Central, Inc.$343.4
 $4.5
 $338.9
Evergy Kansas Central Utility Gross Margin and MWh Sales
The following table summarizes Evergy Kansas Central's utility gross margin and MWhs sold.
 Revenues and ExpensesMWhs Sold
 2019 Change 2018 2019 Change 2018
Retail revenues(millions)(thousands)
Residential$793.9
 $(52.5) $846.4
 6,460
 (276) 6,736
Commercial709.1
 6.3
 702.8
 7,399
 (97) 7,496
Industrial401.3
 4.9
 396.4
 5,622
 (20) 5,642
Other retail revenues21.0
 1.0
 20.0
 45
 (13) 58
Total electric retail1,925.3
 (40.3) 1,965.6
 19,526
 (406) 19,932
Wholesale revenues239.9
 (106.2) 346.1
 7,540
 (2,629) 10,169
Transmission revenues273.3
 (15.6) 288.9
 N/A
 N/A
 N/A
Other revenues68.9
 54.6
 14.3
 N/A
 N/A
 N/A
Operating revenues2,507.4
 (107.5) 2,614.9
 27,066
 (3,035) 30,101
Fuel and purchased power(493.0) 106.2
 (599.2)      
SPP network transmission costs(251.3) 8.6
 (259.9)      
Utility gross margin (a)
$1,763.1
 $7.3
 $1,755.8
      
(a)Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.
Evergy Kansas Central's utility gross margin increased $7.3 million in 2019 compared to 2018 driven by:
a $27.9 million increase from new retail rates effective in September 2018, net of a $69.8 million provision for rate refund recorded in 2018 for the change in the corporate income tax rate caused by the TCJA; and

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a $23.1 million increase in revenue due to one-time bill credits recorded in June 2018 as a result of conditions in the KCC merger order; partially offset by
a $30.9 million decrease primarily due to lower retail sales driven by cooler summer weather. For 2019 compared to 2018, cooling degree days decreased 15%; and
a $12.8 million decrease related to Evergy Kansas Central's TDC rider.
Evergy Kansas Central Operating and Maintenance
Evergy Kansas Central's operating and maintenance expense decreased $110.2 million in 2019 compared to 2018 primarily driven by:
$51.9 million of merger-related costs incurred in 2018, consisting of:
◦$44.2 million of voluntary severance and change in control payments as well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding equity compensation awards in accordance with the Amended Merger Agreement; and
◦$21.5 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; partially offset by
◦a $13.8 million decrease in operating and maintenance expense due to the net reallocation of incurred merger transition costs between Evergy Kansas Central, Evergy, Evergy Metro and Evergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Evergy Kansas Central in accordance with the KCC merger order;
a $22.9 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily due to:
◦$12.3 million of obsolete inventory write-offs at retiring fossil-fuel units in 2018;
◦a $7.3 million decrease due to the retirement of Evergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center and Units 1 and 2 at Gordan Evans Energy Center in the fourth quarter of 2018; and
◦$0.7 million of voluntary severance expenses incurred in 2018 related to the Local 1523 union voluntary exit program; partially offset by
◦an $8.4 million increase due to the write-off of a regulatory asset for costs incurred during the JEC lease extension, see Note 5 to the consolidated financial statements;
a $19.2 million decrease in various administrative and general operating and maintenance expenses primarily driven by a $10.0 million decrease in labor and employee benefits expense primarily due to lower employee headcount and pension and post-retirement costs in 2019 and $5.3 million of voluntary severance expenses incurred in the third quarter of 2018 related to a Wolf Creek voluntary exit program;
a $9.6 million decrease in transmission and distribution operating and maintenance expense primarily due to a higher level of vegetation management activity in 2018; and
a $6.3 million decrease in plant operating and maintenance expense at nuclear generating units related to Wolf Creek; partially offset by
$9.3 million of voluntary severance expenses incurred in 2019.
Evergy Kansas Central Depreciation and Amortization
Evergy Kansas Central's depreciation and amortization expense increased $52.9 million in 2019 compared to 2018 driven by:
a $32.4 million increase primarily due to a change in depreciation rates as a result of Evergy Kansas Central's rate case effective in September 2018; and
a $20.5 million increase primarily due to capital additions.

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Evergy Kansas Central Taxes Other Than Income Tax
Evergy Kansas Central's taxes other than income tax increased$18.6 million in 2019 compared to 2018 primarily driven by an $18.3 million increase in property taxes.
Evergy Kansas Central Other Expense, Net
Evergy Kansas Central's other expense, net decreased $20.6 million in 2019 compared to 2018 primarily driven by:
a $12.4 million decrease due to recording higher COLI benefits in 2019;
a $4.2 million decrease due to higher net unrealized gains in Evergy Kansas Central's rabbi trust in 2019; and
a $3.4 million decrease due to lower pension non-service costs in 2019.
Evergy Kansas Central Income Tax Expense
Evergy Kansas Central's income tax expense increased $56.4 million in 2019 compared to 2018 driven by:
a $52.6 million increase related to the revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018; and
an $18.9 million increase due to higher pre-tax income; partially offset by
a $5.3 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes.

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EVERGY METRO, INC.
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
The below results of operations and related discussion for Evergy Metro is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
The following table summarizes Evergy Metro's comparative results of operations.
 2019 Change 2018
 (millions)
Operating revenues$1,806.5
 $(16.6) $1,823.1
Fuel and purchased power482.1
 (38.5) 520.6
Operating and maintenance451.9
 (42.3) 494.2
Depreciation and amortization318.4
 37.1
 281.3
Taxes other than income tax127.6
 10.4
 117.2
Income from operations426.5
 16.7
 409.8
Other expense, net(15.8) 10.1
 (25.9)
Interest expense119.8
 (13.9) 133.7
Income tax expense35.7
 (51.6) 87.3
Net income$255.2
 $92.3
 $162.9
Evergy Metro Utility Gross Margin and MWh Sales
The following table summarizes Evergy Metro's utility gross margin and MWhs sold.
 Revenues and Expenses MWhs Sold
 2019 Change 2018 2019 Change 2018
Retail revenues(millions) (thousands)
Residential$712.4
 (23.2) $735.6
 5,425
 (261) 5,686
Commercial786.1
 (8.7) 794.8
 7,623
 (159) 7,782
Industrial136.9
 (1.9) 138.8
 1,713
 (41) 1,754
Other retail revenues16.3
 5.9
 10.4
 75
 (1) 76
Total electric retail1,651.7
 (27.9) 1,679.6
 14,836
 (462) 15,298
Wholesale revenues70.9
 17.4
 53.5
 6,098
 1,081
 5,017
Transmission revenues17.5
 3.0
 14.5
 N/A
 N/A
 N/A
Other revenues66.4
 (9.1) 75.5
 N/A
 N/A
 N/A
Operating revenues1,806.5
 (16.6) 1,823.1
 20,934
 619
 20,315
Fuel and purchased power(482.1) 38.5
 (520.6)      
Utility gross margin (a)
$1,324.4
 $21.9
 $1,302.5
 

   

(a) Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.
Evergy Metro's utility gross margin increased $21.9 million in 2019 compared to 2018 driven by:
a $40.4 million increase from new retail rates effective in December 2018, net of a $72.4 million provision for rate refund recorded for 2018 for the change in the corporate income tax rate caused by the TCJA; and
a $22.4 million increase in revenue due to one-time bill credits recorded in June 2018 as a result of conditions in the KCC and MPSC merger orders; partially offset by
a $30.9 million decrease primarily due to lower retail sales driven by cooler summer weather. For 2019 compared to 2018, cooling degree days decreased 18%; and
a $10.0 million decrease for recovery of programs costs for energy efficiency programs under MEEIA, which have a direct offset in operating and maintenance expense.

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Evergy Metro Operating and Maintenance
Evergy Metro's operating and maintenance expense decreased$42.3 million in 2019 compared to 2018 primarily driven by:
a $26.4 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily driven by:
◦a $10.9 million decrease due to the retirement of Montrose Station in 2018, which includes $7.3 million of obsolete inventory write-offs in 2018;
◦a $3.7 million decrease due to an extended maintenance outage at Iatan No. 2 in 2018; and
◦$3.2 million of voluntary severance expenses incurred in the third quarter of 2018 related to the Local 412 union voluntary exit program;
a $23.8 million decrease in various administrative and general operating and maintenance expenses, which includes $5.3 million of voluntary severance expenses incurred in the third quarter of 2018 related to a Wolf Creek voluntary exit program and a $3.5 million decrease in injuries and damages expense primarily due to an increase in estimated workers compensation losses recorded in 2018;
a $10.0 million decrease in program costs for energy efficiency programs under MEEIA, which have a direct offset in revenue;
a $6.8 million decrease in plant operating and maintenance expense at nuclear generating units related to Wolf Creek; and
$2.1 million of merger-related costs incurred in 2018; partially offset by
a $23.2 million increase in operating and maintenance expense due to the net reallocation of incurred merger transition costs between Evergy Metro, Evergy, Evergy Kansas Central and Evergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Evergy Metro in accordance with the KCC and MPSC merger orders;
a $7.1 million increase in transmission and distribution operating and maintenance expense primarily due to costs incurred from storms that occurred in January 2019; and
$6.8 million of voluntary severance expenses incurred in 2019.
Evergy Metro Depreciation and Amortization
Evergy Metro's depreciation and amortization increased $37.1 million in 2019 compared to 2018 primarily driven by:
a $19.3 million increase primarily due to capital additions; and
a $17.8 million increase due to a change in depreciation rates effective in December 2018 as a result of Evergy Metro's 2018 Kansas rate case.
Evergy Metro Taxes Other Than Income Tax
Evergy Metro's taxes other than income tax increased $10.4 million in 2019 compared to 2018 primarily driven by a $7.9 million increase in property taxes.

Evergy Metro Interest Expense
Evergy Metro's interest expense decreased $13.9 million in 2019 compared to 2018 primarily driven by a $12.8 million net decrease due to the repayment of $400.0 million of 7.15% Mortgage Bonds at maturity in April 2019, which decreased interest expense by $25.4 million, partially offset by a $12.6 million increase due to the issuance of $400.0 million of 4.125% Mortgage Bonds in March 2019.

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Evergy Metro Income Tax Expense
Evergy Metro's income tax expense decreased $51.6 million in 2019 compared to 2018 primarily driven by:
a $51.0 million decrease related to the revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018; and
a $21.4 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes; partially offset by
a $15.5 million increase related to the revaluation of deferred income tax assets and liabilities as a result of the enactment of Missouri state income tax reform in June 2018; and
a $10.8 million increase due to higher pre-tax income.
ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
In the ordinary course of business, Evergy faces risks that are either non-financial or non-quantifiable. Such risks principally include business, legal, operational and credit risks and are not represented in the following analysis. See Part I, Item 1A, Risk Factors and Part II, Item 7, MD&A for further discussion of risk factors.
The Evergy Companies are exposed to market risks associated with commodity price and supply, interest rates and equity prices. Commodity price risk is the potential adverse price impact related to the purchase or sale of electricity and energy-related products. Credit risk is the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. Interest rate risk is the potential adverse financial impact related to changes in interest rates. In addition, Evergy's investments in trusts to fund nuclear plant decommissioning and to fund non-qualified retirement benefits give rise to security price risk.
Management has established risk management policies and strategies to reduce the potentially adverse effects that the volatility of the markets may have on Evergy's operating results. During the ordinary course of business, the Evergy Companies' hedging strategies are reviewed to determine the hedging approach deemed appropriate based upon the circumstances of each situation. Though management believes its risk management practices are effective, it is not possible to identify and eliminate all risk. Evergy could experience losses, which could have a material adverse effect on its results of operations or financial position, due to many factors, including unexpectedly large or rapid movements or disruptions in the energy markets, regulatory-driven market rule changes and/or bankruptcy or non-performance of customers or counterparties, and/or failure of underlying transactions that have been hedged to materialize.
Hedging Strategies
From time to time, Evergy utilizes derivative instruments to execute risk management and hedging strategies. Derivative instruments, such as futures, forward contracts, swaps or options, derive their value from underlying assets, indices, reference rates or a combination of these factors. These derivative instruments include negotiated contracts, which are referred to as over-the-counter derivatives, and instruments listed and traded on an exchange.
Commodity Price Risk
The Evergy Companies engage in the wholesale and retail sale of electricity and are exposed to risks associated with the price of electricity and other energy-related products. Exposure to these risks is affected by a number of factors including the quantity and availability of fuel used for generation and the quantity of electricity customers consume. Customers' electricity usage could also vary from year to year based on the weather or other factors. Quantities of fossil fuel used for generation vary from year to year based on the availability, price and deliverability of a given fuel type as well as planned and unplanned outages at facilities that use fossil fuels. Evergy's exposure to fluctuations in these factors is limited by the cost-based regulation of its regulated operations in Kansas and Missouri as these operations are typically allowed to recover substantially all of these costs through cost-recovery mechanisms, primarily through fuel recovery mechanisms. While there may be a delay in timing between when these costs are incurred and when they are recovered through rates, changes from year to year generally do not have a material impact on operating results.

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Interest Rate Risk
Evergy manages interest rate risk and short- and long-term liquidity by limiting its exposure to variable interest rate debt to a percentage of total debt, diversifying maturity dates and, from time to time, entering into interest rate hedging transactions. At December 31, 2019, 3% of Evergy's long-term debt was variable rate debt. Evergy also has short-term borrowings and current maturities of fixed rate debt that are exposed to interest rate risk. Evergy computes and presents information regarding the sensitivity to changes in interest rates for variable rate debt and current maturities of fixed rate debt by assuming a 100-basis-point change in the current interest rates applicable to such debt over the remaining time the debt is outstanding.
Evergy had $1,113.7 million of variable rate debt, including notes payable, commercial paper and current maturities of fixed rate debt as of December 31, 2019. A 100-basis-point change in interest rates applicable to this debt would impact income before income taxes on an annualized basis by approximately $9.9 million.
Credit Risk
Evergy is exposed to counterparty credit risk largely in the form of accounts receivable from its retail and wholesale electric customers and through executory contracts with market risk exposure. The credit risk associated with accounts receivable from retail and wholesale customers is largely mitigated by Evergy's large number of individual customers spread across diverse customer classes and the ability to recover bad debt expense in customer rates. The Evergy Companies maintain credit policies and employ credit risk control mechanisms, such as letters of credit, when necessary to minimize their overall credit risk and monitor exposure.
Investment Risk
Evergy maintains trust funds, as required by the NRC, to fund its 94% share of decommissioning the Wolf Creek nuclear power plant and also maintains trusts to fund pension benefits as well as certain non-qualified retirement benefits. As of December 31, 2019, these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet. The equity securities in the trusts are exposed to price fluctuations in equity markets and the value of debt securities are exposed to changes in interest rates and other market factors.
As nuclear decommissioning costs are currently recovered in customer rates, Evergy defers both realized and unrealized gains and losses for these securities as an offset to its regulatory asset for decommissioning Wolf Creek and as such, fluctuations in the value of these securities do not impact earnings. A significant decline in the value of pension or non-qualified retirement assets could require Evergy to increase funding of its pension plans in future periods, which could adversely affect cash flows in those periods. In addition, a decline in the fair value of these plan assets, in the absence of additional cash contributions to the plans by Evergy, could increase the amount of pension cost required to be recorded in future periods by Evergy.


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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm
Evergy, Inc.
57
Evergy Kansas Central, Inc.
60
Evergy Metro, Inc.
61
Evergy, Inc.
Consolidated Statements of Comprehensive Income
62
Consolidated Balance Sheets
63
Consolidated Statements of Cash Flows
65
Consolidated Statements of Changes in Equity
66
Evergy Kansas Central, Inc.
Consolidated Statements of Income
67
Consolidated Balance Sheets
68
Consolidated Statements of Cash Flows
70
Consolidated Statements of Changes in Equity
71
Evergy Metro, Inc.
Consolidated Statements of Comprehensive Income
72
Consolidated Balance Sheets
73
Consolidated Statements of Cash Flows
75
Consolidated Statements of Changes in Equity
76
Combined Notes to Consolidated Financial Statements
Note 1:
Summary of Significant Accounting Policies
77
Note 2:
Merger of Great Plains Energy and Evergy Kansas Central
85
Note 3:
Revenue
90
Note 4:
Receivables
93
Note 5:
Rate Matters and Regulation
94
Note 6:
Goodwill
101
Note 7:
Asset Retirement Obligations
101
Note 8:
Property, Plant & Equipment
102
Note 9:
Jointly-Owned Electric Utility Plants
103
Note 10:
Pension Plans and Post-Retirement Benefits
104
Note 11:
Equity Compensation
116
Note 12:
Short-Term Borrowings and Short-Term Bank Lines of Credit
120
Note 13:
Long-Term Debt
121
Note 14:
Fair Value Measurements
124
Note 15:
Commitments and Contingencies
129
Note 16:
Guarantees
133
Note 17:
Related Party Transactions and Relationships
133
Note 18:
Shareholders' Equity
135
Note 19:
Variable Interest Entities
136
Note 20:
Taxes
137
Note 21:
Leases
143
Note 22:
Quarterly Operating Results (Unaudited)
146


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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Evergy, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy, Inc. and subsidiaries (the "Company") as of December 31, 2019 and 2018, the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2019, and the related notes and the financial statement schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 2, 2020, expressed an unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 5 to the financial statements
Critical Audit Matter Description
The Company is subject to rate regulation by the Kansas Corporation Commission and by the Missouri Public Service Commission (collectively the "Commissions"), which have jurisdiction with respect to the rates of electric distribution companies in Kansas and Missouri, respectively. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the

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economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant, and equipment, including asset retirements and abandonments; regulatory assets and liabilities; operating revenues; operating and maintenance expense; and depreciation expense.
The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Rates are determined and approved in regulatory proceedings based on an analysis of the Company's costs to provide utility service and a return on, and recovery of, the Company's investment in the utility business. Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. The Commissions' regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. Decisions to be made by the Commissions in the future will impact the accounting for regulated operations, including decisions about the amount of allowable costs and return on invested capital included in rates and any refunds that may be required. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve (1) full recovery of the costs of providing utility service or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment.
When the Company retires a regulated plant, the Company must assess the probability of recovery of the regulated plant, which is dependent upon amounts that may be recovered through regulated rates, including any return. Pending receipt of regulatory approval for the retirement and/or recovery of the affected plants, accounting for early retirements of regulated plants involves judgment related to the nature of the early retirement and the likelihood that the Company will recover its remaining investment in these retired generating plants with return. Auditing the judgments related to the nature and likelihood of the retirement and the probability of recovering the generating plant investment with a return involves especially subjective and complex judgment.
We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs, (2) probability of potential charges related to the abandonment of regulated plants, and (3) a refund to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:
We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.
We tested the effectiveness of management's controls over the initial recognition of amounts as property, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates, including Company management's determination of the likelihood of recovery of the full investment of certain regulated plants and probability of refunding amounts previously collected from customers related to certain regulated plants.
We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.
We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commissions for the Company and other public utilities in Kansas and Missouri, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available

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information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedence of the Commissions' treatment of similar costs under similar circumstances.
For regulatory matters in process, including those that could impact the early retirement of regulated plants, we inspected the Company's filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company's future rates, for any evidence that might contradict management's assertions.
We evaluated the reasonableness of management's judgments for potential indicators of abandonment by performing the following:
◦We inquired of management about property, plant, and equipment that may be abandoned.
◦We inspected the capital projects budget and construction-in-process listings and inquired of management to identify projects that are designed to replace assets that may be retired prior to the end of the useful life.
◦We inspected minutes of the board of directors and regulatory orders and other filings with the Commissions to identify any evidence that may contradict management's assertion regarding probability of an abandonment.
We compared actual spend for projects that have been capitalized to property, plant, and equipment to budget. We evaluated regulatory filings for any evidence that intervenors are challenging full recovery of the cost of any capital projects. For significant projects that were over budget or if full recovery of project costs is being challenged by intervenors, we evaluated management's assessment of the probability of a disallowance. We tested selected costs included in the capitalized project costs for completeness and accuracy.
We evaluated management's analysis, and letters from internal and external legal counsel, as appropriate, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.
We evaluated management's conclusions for the probable recovery of the retired regulated plant investment with a return with the assistance of professionals in our firm having expertise in the application of accounting guidance for early retirements of regulated plants. We evaluated management's conclusions regarding the accounting for the abandonment of certain regulated plants and the impact of recent rate orders on the accounting.
/s/ DELOITTE & TOUCHE LLP

Kansas City, Missouri  
March 2, 2020 

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






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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Evergy Kansas Central, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy Kansas Central, Inc. and subsidiaries (the "Company") as of December 31, 2019 and 2018, the related consolidated statements of income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2019, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP

Kansas City, Missouri  
March 2, 2020  

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














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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Evergy Metro, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy Metro, Inc. and subsidiaries (the "Company") as of December 31, 2019 and 2018, the related consolidated statements of comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2019, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP

Kansas City, Missouri  
March 2, 2020  

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




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EVERGY, INC.
Consolidated Statements of Comprehensive Income
     
Year Ended December 31 2019 2018 2017
 (millions, except per share amounts)
OPERATING REVENUES $5,147.8
 $4,275.9
 $2,571.0
OPERATING EXPENSES:      
Fuel and purchased power 1,265.0
 1,078.7
 541.5
SPP network transmission costs 251.3
 259.9
 247.9
Operating and maintenance 1,218.5
 1,115.8
 563.5
Depreciation and amortization 861.7
 618.8
 371.7
Taxes other than income tax 365.5
 269.1
 167.6
Total Operating Expenses 3,962.0
 3,342.3
 1,892.2
INCOME FROM OPERATIONS 1,185.8
 933.6
 678.8
OTHER INCOME (EXPENSE):      
Investment earnings 11.0
 8.8
 4.0
Other income 26.9
 15.5
 8.3
Other expense (76.9) (78.7) (39.1)
Total Other Expense, Net (39.0) (54.4) (26.8)
Interest expense 374.0
 279.6
 171.0
INCOME BEFORE INCOME TAXES 772.8
 599.6
 481.0
Income tax expense 97.0
 59.0
 151.2
Equity in earnings of equity method investees, net of income taxes 9.8
 5.4
 6.7
NET INCOME 685.6
 546.0
 336.5
Less: Net income attributable to noncontrolling interests 15.7
 10.2
 12.6
NET INCOME ATTRIBUTABLE TO EVERGY, INC. $669.9
 $535.8
 $323.9
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY (see Note 1)      
Basic earnings per common share $2.80
 $2.50
 $2.27
Diluted earnings per common share $2.79
 $2.50
 $2.27
AVERAGE COMMON SHARES OUTSTANDING      
Basic 239.5
 213.9
 142.5
Diluted 239.9
 214.1
 142.6
COMPREHENSIVE INCOME      
NET INCOME $685.6
 $546.0
 $336.5
OTHER COMPREHENSIVE INCOME      
Derivative hedging activity      
Loss on derivative hedging instruments (64.4) (5.4) —
Income tax benefit 16.5
 1.4
 —
Net loss on derivative hedging instruments (47.9) (4.0) —
Reclassification to expenses, net of tax 1.5
 —
 —
Derivative hedging activity, net of tax (46.4) (4.0) —
Defined benefit pension plans      
Net gain (loss) arising during period (0.8) 1.4
 —
Income tax expense (benefit) 0.2
 (0.4) —
Net gain (loss) arising during period, net of tax (0.6) 1.0
 —
Change in unrecognized pension expense, net of tax (0.6) 1.0
 —
Total other comprehensive loss (47.0) (3.0) —
Comprehensive income 638.6
 543.0
 336.5
Less: comprehensive income attributable to noncontrolling interest 15.7
 10.2
 12.6
COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC. $622.9
 $532.8
 $323.9
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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

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


   


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

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EVERGY, INC.
Consolidated Statements of Cash Flows
      
Year Ended December 312019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$685.6
 $546.0
 $336.5
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization861.7
 618.8
 371.7
Amortization of nuclear fuel51.4
 43.6
 32.2
Amortization of deferred refueling outage25.5
 21.2
 16.1
Amortization of corporate-owned life insurance19.8
 22.6
 20.6
Non-cash compensation16.3
 29.9
 8.8
Net deferred income taxes and credits121.5
 124.2
 149.6
Allowance for equity funds used during construction(2.2) (3.1) (2.0)
Payments for asset retirement obligations(17.8) (22.4) (16.0)
Equity in earnings of equity method investees, net of income taxes(9.8) (5.4) (6.7)
Income from corporate-owned life insurance(29.6) (2.3) (2.8)
Other(3.2) (5.2) (8.7)
Changes in working capital items:     
Accounts receivable(23.1) 265.1
 (2.1)
Accounts receivable pledged as collateral26.0
 (185.0) —
Fuel inventory and supplies29.9
 54.7
 7.2
Prepaid expenses and other current assets43.4
 (128.1) 55.8
Accounts payable16.9
 56.7
 10.0
Accrued taxes(8.2) (76.4) 9.2
Other current liabilities(59.4) 92.0
 (118.0)
Changes in other assets79.8
 66.8
 32.0
Changes in other liabilities(75.5) (15.9) 19.3
Cash Flows from Operating Activities1,749.0
 1,497.8
 912.7
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: 
  
  
Additions to property, plant and equipment(1,210.1) (1,069.7) (764.6)
Cash acquired from the merger with Great Plains Energy—
 1,154.2
 —
Purchase of securities - trusts(55.8) (117.5) (41.0)
Sale of securities - trusts47.3
 117.7
 41.2
Investment in corporate-owned life insurance(18.3) (17.1) (17.0)
Proceeds from investment in corporate-owned life insurance161.7
 6.8
 4.2
Proceeds from settlement of interest rate swap—
 140.6
 —
Other investing activities(5.1) (17.6) (3.6)
Cash Flows from (used in) Investing Activities(1,080.3) 197.4
 (780.8)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: 
  
  
Short term debt, net(176.7) (104.0) (91.3)
Proceeds from term loan facility1,000.0
 —
 —
Repayment of term loan facility(1,000.0) —
 —
Collateralized short-term borrowings, net(26.0) 185.0
 —
Proceeds from long-term debt2,372.7
 290.9
 296.2
Retirements of long-term debt(701.1) (395.8) (125.0)
Retirements of long-term debt of variable interest entities(30.3) (28.5) (26.8)
Payment for settlement of interest rate swap accounted for as a cash flow hedge(69.8) —
 —
Borrowings against cash surrender value of corporate-owned life insurance59.4
 56.5
 55.1
Repayment of borrowings against cash surrender value of corporate-owned life insurance(127.5) (3.9) (1.0)
Cash dividends paid(462.5) (475.0) (223.1)
Repurchase of common stock under repurchase plan(1,628.7) (1,042.3) —
Distributions to shareholders of noncontrolling interests(8.6) —
 (5.8)
Other financing activities(6.7) (21.3) (9.9)
Cash Flows used in Financing Activities(805.8) (1,538.4) (131.6)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(137.1) 156.8
 0.3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:     
Beginning of period160.3
 3.5
 3.2
End of period$23.2
 $160.3
 $3.5
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.
Consolidated Statements of Changes in Equity
       
 Evergy, Inc. Shareholders  
 Common stock sharesCommon stockRetained earningsAOCINon-controlling interestsTotal equity
 (millions, except share amounts)
Balance as of December 31, 2016141,791,153
$2,727.3
$1,078.6
$—
$27.3
$3,833.2
Net income—
—
323.9
—
12.6
336.5
Issuance of stock12,131
0.6
—
—
—
0.6
Issuance of stock compensation and reinvested dividends, net of tax withholding290,991
(1.9)—
—
—
(1.9)
Dividends declared on common stock ($1.60 per share)—
—
(229.2)—
—
(229.2)
Stock compensation expense—
8.8
—
—
—
8.8
Deconsolidation of noncontrolling interests—
—
—
—
(81.9)(81.9)
Distributions to shareholders of noncontrolling interests—
—
—
—
(5.7)(5.7)
Balance as of December 31, 2017142,094,275
2,734.8
1,173.3
—
(47.7)3,860.4
Net income—
—
535.8
—
10.2
546.0
Issuance of stock to Great Plains Energy shareholders128,947,518
6,979.9
—
—
—
6,979.9
Issuance of restricted common stock122,505
—
—
—
—
—
Issuance of stock compensation and reinvested dividends,
net of tax withholding		533,273
(16.7)—
—
—
(16.7)
Dividends declared on common stock ($1.735 per share)—
—
(362.1)—
—
(362.1)
Dividend equivalents declared—
—
(1.0)—
—
(1.0)
Stock compensation expense—
29.9
—
—
—
29.9
Repurchase of common stock(16,371,319)(1,042.3)—
—
—
(1,042.3)
Derivative hedging activity, net of tax—
—
—
(4.0)—
(4.0)
Change in unrecognized pension expense, net of tax—
—
—
1.0
—
1.0
Other—
(0.4)—
—
—
(0.4)
Balance as of December 31, 2018255,326,252
8,685.2
1,346.0
(3.0)(37.5)9,990.7
Net income—
—
669.9
—
15.7
685.6
Issuance of stock compensation and reinvested dividends,
net of tax withholding		111,849
(2.4)—
—
—
(2.4)
Dividends declared on common stock ($1.93 per share)—
—
(462.5)—
—
(462.5)
Dividend equivalents declared—
—
(1.9)—
—
(1.9)
Stock compensation expense—
16.3
—
—
—
16.3
Repurchase of common stock under repurchase plan(28,796,658)(1,628.7)—
—
—
(1,628.7)
Consolidation of noncontrolling interests—
—
—
—
3.8
3.8
Distributions to shareholders of noncontrolling interests—
—
—
—
(8.6)(8.6)
Derivative hedging activity, net of tax—
—
—
(46.4)—
(46.4)
Change in unrecognized pension expense, net of tax—
—
—
(0.6)—
(0.6)
Balance as of December 31, 2019226,641,443
$7,070.4
$1,551.5
$(50.0)$(26.6)$8,545.3
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Income
       
Year Ended December 31 2019 2018 2017
  (millions)
OPERATING REVENUES $2,507.4
 $2,614.9
 $2,571.0
OPERATING EXPENSES:      
Fuel and purchased power 493.0
 599.2
 541.5
SPP network transmission costs 251.3
 259.9
 247.9
Operating and maintenance 530.5
 640.7
 563.5
Depreciation and amortization 443.8
 390.9
 371.7
Taxes other than income tax 192.3
 173.7
 167.6
Total Operating Expenses 1,910.9
 2,064.4
 1,892.2
INCOME FROM OPERATIONS 596.5
 550.5
 678.8
OTHER INCOME (EXPENSE):      
Investment earnings (loss) 4.1
 (0.6) 4.0
Other income 23.1
 13.9
 8.3
Other expense (40.1) (46.8) (39.1)
Total Other Expense, Net (12.9) (33.5) (26.8)
Interest expense 177.0
 176.8
 171.0
INCOME BEFORE INCOME TAXES 406.6
 340.2
 481.0
Income tax expense (benefit) 52.1
 (4.3) 151.2
Equity in earnings of equity method investees, net of income taxes 4.6
 4.6
 6.7
NET INCOME 359.1
 349.1
 336.5
Less: Net income attributable to noncontrolling interests 15.7
 10.2
 12.6
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC. $343.4
 $338.9
 $323.9
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
    
 December 31
 2019 2018
ASSETS(millions, except share amounts)
CURRENT ASSETS:       
Cash and cash equivalents $5.2
   $44.5
 
Receivables, net 140.4
   84.3
 
Related party receivables 9.9
   2.6
 
Accounts receivable pledged as collateral 171.0
   185.0
 
Fuel inventory and supplies 266.4
   276.8
 
Income taxes receivable 30.4
   42.7
 
Regulatory assets 93.3
   97.1
 
Prepaid expenses and other assets 34.3
   35.0
 
Total Current Assets 750.9
   768.0
 
PROPERTY, PLANT AND EQUIPMENT, NET 9,864.9
   9,718.3
 
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET 162.0
   169.2
 
OTHER ASSETS:  
    
 
Regulatory assets 730.4
   700.4
 
Nuclear decommissioning trust fund 272.5
   227.5
 
Other 266.0
   233.4
 
Total Other Assets 1,268.9
   1,161.3
 
TOTAL ASSETS $12,046.7
   $11,816.8
 
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
  
 December 31
 2019 2018
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:       
Current maturities of long-term debt $250.0
   $300.0
 
Current maturities of long-term debt of variable interest entities 32.3
   30.3
 
Notes payable and commercial paper 249.2
   411.7
 
Collateralized note payable 171.0
   185.0
 
Accounts payable 200.5
   154.4
 
Related party payables 14.8
   14.9
 
Accrued taxes 98.7
   88.6
 
Accrued interest 74.2
   74.4
 
Regulatory liabilities 42.3
   19.5
 
Asset retirement obligations 23.3
   17.1
 
Other 130.2
   83.0
 
Total Current Liabilities 1,286.5
   1,378.9
 
LONG-TERM LIABILITIES:  
    
 
Long-term debt, net 3,436.1
   3,389.8
 
Long-term debt of variable interest entities, net 18.8
   51.1
 
Deferred income taxes 817.7
   815.4
 
Unamortized investment tax credits 253.2
   249.7
 
Regulatory liabilities 1,132.5
   1,101.8
 
Pension and post-retirement liability 495.5
   474.7
 
Asset retirement obligations 249.6
   264.0
 
Other 151.8
   130.7
 
Total Long-Term Liabilities 6,555.2
   6,477.2
 
Commitments and Contingencies (Note 15) 


   


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


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EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Cash Flows
 
Year Ended December 312019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$359.1
 $349.1
 $336.5
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization443.8
 390.9
 371.7
Amortization of nuclear fuel25.6
 26.0
 32.2
Amortization of deferred refueling outage12.8
 13.7
 16.1
Amortization of corporate-owned life insurance19.8
 22.6
 20.6
Non-cash compensation—
 19.9
 8.8
Net deferred income taxes and credits11.6
 (2.2) 149.6
Allowance for equity funds used during construction—
 (2.9) (2.0)
Payments for asset retirement obligations(14.8) (12.0) (16.0)
Equity in earnings of equity method investees, net of income taxes(4.6) (4.6) (6.7)
Income from corporate-owned life insurance(29.0) (2.3) (2.8)
Other(5.5) (5.4) (8.7)
Changes in working capital items:     
Accounts receivable(65.9) 207.9
 (2.1)
Accounts receivable pledged as collateral14.0
 (185.0) —
Fuel inventory and supplies10.9
 17.3
 7.2
Prepaid expenses and other current assets(11.7) (134.2) 55.8
Accounts payable6.9
 (17.6) 10.0
Accrued taxes20.2
 (24.1) 9.2
Other current liabilities12.1
 88.3
 (118.0)
Changes in other assets47.0
 42.7
 32.0
Changes in other liabilities(29.5) (36.2) 19.3
Cash Flows from Operating Activities822.8
 751.9
 912.7
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: 
  
  
Additions to property, plant and equipment(596.1) (713.3) (764.6)
Purchase of securities - trusts(21.8) (99.4) (41.0)
Sale of securities - trusts21.6
 104.2
 41.2
Investment in corporate-owned life insurance(17.6) (17.1) (17.0)
Proceeds from investment in corporate-owned life insurance158.9
 6.8
 4.2
Other investing activities(3.2) (8.6) (3.6)
Cash Flows used in Investing Activities(458.2) (727.4) (780.8)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: 
  
  
Short term debt, net(162.5) 133.7
 (91.3)
Collateralized short-term debt, net(14.0) 185.0
 —
Proceeds from long-term debt294.7
 121.9
 296.2
Retirements of long-term debt(300.0) (121.9) (125.0)
Retirements of long-term debt of variable interest entities(30.3) (28.5) (26.8)
Borrowings against cash surrender value of corporate-owned life insurance56.5
 56.5
 55.1
Repayment of borrowings against cash surrender value of corporate-owned life insurance(125.4) (3.9) (1.0)
Cash dividends paid(110.0) (305.1) (223.1)
Distributions to shareholders of noncontrolling interests(8.6) —
 (5.8)
Other financing activities(4.3) (21.2) (9.9)
Cash Flows from (used in) Financing Activities(403.9) 16.5
 (131.6)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(39.3) 41.0
 0.3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:     
Beginning of period44.5
 3.5
 3.2
End of period$5.2
 $44.5
 $3.5
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Changes in Equity
      
 Evergy Kansas Central, Inc. Shareholder  
 Common stock sharesCommon stockRetained earningsNon-controlling interestsTotal equity
 (millions, except share amounts)
Balance as of December 31, 2016141,791,153
$2,727.3
$1,078.6
$27.3
$3,833.2
Net income—
—
323.9
12.6
336.5
Issuance of stock12,131
0.6
—
—
0.6
Issuance of stock for compensation and reinvested dividends, net of tax withholding290,991
(1.9)—
—
(1.9)
Dividends declared on common stock—
—
(229.2)—
(229.2)
Stock compensation expense—
8.8
—
—
8.8
Deconsolidation of noncontrolling interest—
—
—
(81.9)(81.9)
Distributions to shareholders of noncontrolling interests—
—
—
(5.7)(5.7)
Balance as of December 31, 2017142,094,275
2,734.8
1,173.3
(47.7)3,860.4
Net income——
338.9
10.2
349.1
Issuance of stock for compensation and reinvested dividends, net of tax withholding516,990(17.2)—
—
(17.2)
Stock cancelled pursuant to Amended Merger Agreement(142,611,264)—
—
—
—
Dividends declared on common stock——
(251.6)—
(251.6)
Stock compensation expense—19.9
—
—
19.9
Other—0.1
—
—
0.1
Balance as of December 31, 20181
2,737.6
1,260.6
(37.5)3,960.7
Net income—
—
343.4
15.7
359.1
Dividends declared on common stock—
—
(110.0)—
(110.0)
Consolidation of noncontrolling interests—
—
—
3.8
3.8
Distributions to shareholders of noncontrolling interests—
—
—
(8.6)(8.6)
Balance as of December 31, 20191
$2,737.6
$1,494.0
$(26.6)$4,205.0
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.


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EVERGY METRO, INC.
Consolidated Statements of Comprehensive Income
     
Year Ended December 31 2019 2018 2017
  (millions)
OPERATING REVENUES $1,806.5
 $1,823.1
 $1,890.7
OPERATING EXPENSES:  
  
  
Fuel and purchased power 482.1
 520.6
 480.7
Operating and maintenance 451.9
 494.2
 474.8
Depreciation and amortization 318.4
 281.3
 266.3
Taxes other than income tax 127.6
 117.2
 182.5
Total Operating Expenses 1,380.0
 1,413.3
 1,404.3
INCOME FROM OPERATIONS 426.5
 409.8
 486.4
OTHER INCOME (EXPENSE):      
Investment earnings 2.4
 2.8
 2.0
Other income 3.2
 2.2
 9.2
Other expense (21.4) (30.9) (50.8)
Total Other Expense, Net (15.8) (25.9) (39.6)
Interest expense 119.8
 133.7
 138.8
INCOME BEFORE INCOME TAXES 290.9
 250.2
 308.0
Income tax expense 35.7
 87.3
 128.2
NET INCOME $255.2
 $162.9
 $179.8
COMPREHENSIVE INCOME  
  
  
NET INCOME $255.2
 $162.9
 $179.8
OTHER COMPREHENSIVE INCOME  
  
  
Derivative hedging activity  
  
  
Reclassification to expenses, net of tax: 0.7
 3.7
 4.6
Derivative hedging activity, net of tax 0.7
 3.7
 4.6
Total other comprehensive income 0.7
 3.7
 4.6
COMPREHENSIVE INCOME $255.9
 $166.6
 $184.4
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY METRO, INC.
Consolidated Balance Sheets
    
 December 31
 2019 2018
ASSETS(millions, except share amounts)
CURRENT ASSETS:       
Cash and cash equivalents $2.0
   $2.6
 
Receivables, net 48.1
   62.7
 
Related party receivables 93.9
   101.8
 
Accounts receivable pledged as collateral 118.0
   130.0
 
Fuel inventory and supplies 163.0
   177.6
 
Income taxes receivable 8.7
   —
 
Regulatory assets 95.4
   130.9
 
Prepaid expenses 22.8
   20.1
 
Other assets 15.0
   16.8
 
Total Current Assets 566.9
   642.5
 
PROPERTY, PLANT AND EQUIPMENT, NET 6,839.0
   6,688.1
 
OTHER ASSETS:  
    
 
Regulatory assets 464.4
   495.2
 
Nuclear decommissioning trust fund 300.7
   244.6
 
Other 134.1
   50.1
 
Total Other Assets 899.2
   789.9
 
TOTAL ASSETS $8,305.1
   $8,120.5
 
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY METRO, INC.
Consolidated Balance Sheets
  
 December 31
 2019 2018
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:       
Current maturities of long-term debt $—
   $400.0
 
Notes payable and commercial paper 199.3
   176.9
 
Collateralized note payable 118.0
   130.0
 
Accounts payable 233.6
   211.1
 
Related party payables 4.6
   —
 
Accrued taxes 38.8
   39.7
 
Accrued interest 26.7
   28.9
 
Regulatory liabilities 11.4
   52.8
 
Asset retirement obligations 36.1
   29.2
 
Accrued compensation benefits 45.1
   52.5
 
Other 34.0
   17.2
 
Total Current Liabilities 747.6
   1,138.3
 
LONG-TERM LIABILITIES:  
    
 
Long-term debt, net 2,525.0
   2,130.1
 
Deferred income taxes 642.8
   631.8
 
Unamortized investment tax credits 119.6
   120.7
 
Regulatory liabilities 792.2
   794.3
 
Pension and post-retirement liability 499.7
   491.9
 
Asset retirement obligations 217.5
   231.8
 
Other 180.0
   81.8
 
Total Long-Term Liabilities 4,976.8
   4,482.4
 
Commitments and Contingencies (Note 15) 


   


 
EQUITY:  
    
 
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value 1,563.1
   1,563.1
 
Retained earnings 1,012.8
   932.6
 
Accumulated other comprehensive income 4.8
   4.1
 
Total Equity 2,580.7
   2,499.8
 
TOTAL LIABILITIES AND EQUITY $8,305.1
   $8,120.5
 
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY METRO, INC.
Consolidated Statements of Cash Flows
      
Year Ended December 312019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$255.2
 $162.9
 $179.8
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization318.4
 281.3
 266.3
Amortization of nuclear fuel25.9
 26.2
 32.1
Amortization of deferred refueling outage12.8
 13.5
 18.3
Net deferred income taxes and credits(30.6) 48.6
 82.5
Allowance for equity funds used during construction(2.2) (1.4) (6.0)
Payments for asset retirement obligations(2.5) (13.1) (25.5)
Other0.3
 3.9
 7.5
Changes in working capital items:    

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

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EVERGY METRO, INC
Consolidated Statements of Changes in Equity
  
  Common stock shares Common Stock Retained earnings AOCI - Net gains (losses) on cash flow hedges Total Equity
  (millions, except share amounts)
Balance as of December 31, 20161
$1,563.1
$982.6
$(4.2)$2,541.5
Net income—
—
179.8
—
179.8
Cumulative effect of adoption of ASU 2016-09—
—
(0.7)—
(0.7)
Dividends declared on common stock—
—
(212.0)—
(212.0)
Derivative hedging activity, net of tax—
—
—
4.6
4.6
Balance as of December 31, 20171
1,563.1
949.7
0.4
2,513.2
Net income—
—
162.9
—
162.9
Dividends declared on common stock—
—
(180.0)—
(180.0)
Derivative hedging activity, net of tax—
—
—
3.7
3.7
Balance as of December 31, 20181
1,563.1
932.6
4.1
2,499.8
Net income—
—
255.2
—
255.2
Dividends declared on common stock—
—
(175.0)—
(175.0)
Derivative hedging activity, net of tax—
—
—
0.7
0.7
Balance as of December 31, 20191
$1,563.1
$1,012.8
$4.8
$2,580.7
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.
EVERGY KANSAS CENTRAL, INC.
EVERGY METRO, INC.
Combined Notes to Consolidated Financial Statements
The notes to consolidated financial statements that follow are a combined presentation for Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc., all registrants under this filing.  The terms "Evergy," "Evergy Kansas Central," "Evergy Metro" and "Evergy Companies" are used throughout this report.  "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated.  "Evergy Kansas Central" refers to Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Evergy Kansas Central and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.  
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below. In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.
Evergy Kansas Central, Inc. (Evergy Kansas Central), formerly known as Westar Energy, Inc., is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has 1 active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South), formerly known as Kansas Gas and Electric Company.
Evergy Metro, Inc. (Evergy Metro), formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
Evergy Missouri West, Inc. (Evergy Missouri West), formerly known as KCP&L Greater Missouri Operations Company, is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
Evergy Transmission Company, LLC (Evergy Transmission Company), formerly known as GPE Transmission Holding Company, LLC, owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, Inc. (AEP). Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.
Evergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that provides transmission service in the Southwest Power Pool, Inc. (SPP). Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.

Since the rebranding in September 2019, Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West have been conducting business in their respective service territories using the name Evergy. The resultsCollectively, the Evergy Companies have approximately 14,700 MWs of owned generating capacity and renewable purchased power 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.
Evergy was incorporated in 2017 as Monarch Energy Holding, Inc. (Monarch Energy), a wholly-owned subsidiary of Great Plains Energy's direct subsidiaries have been included in Evergy's results of operations from the date ofEnergy Incorporated (Great Plains Energy). Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy and thereafter.did not conduct any business activities other than those required for its
Westar
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formation and matters contemplated by the Amended and Restated Agreement and Plan of Merger, dated as of July 9, 2017, by and among Great Plains Energy, Evergy Kansas Central, Monarch Energy and KCP&L continue to be Securities and Exchange Commission (SEC) registrants. KCP&L has elected not to apply "push-down accounting" related toKing Energy, Inc. (King Energy), a wholly-owned subsidiary of Monarch Energy (Amended Merger Agreement). On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, with Evergy surviving the merger wherebyand King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the adjustmentsmerger. These merger transactions resulted in Evergy becoming the parent entity of assets and liabilities to fair valueEvergy Kansas Central and the resulting goodwill would be recorded on the financial statements of the acquired subsidiary. These adjustments for KCP&L, as well as those related to the acquired assets and liabilitiesdirect subsidiaries of Great Plains Energy, including Evergy Metro and its other direct subsidiaries, are only reflected on Evergy's consolidated financial statements.
Each of Evergy's, Westar Energy's and KCP&L's consolidated financial statements includes the accounts of their subsidiaries and variable interest entities (VIEs) of which they are the primary beneficiary. Undivided interests in jointly-owned generation facilities are included on a proportionate basis.  Intercompany transactions have been eliminated. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).
Certain changes in classification and corresponding reclassification of prior period data were made in Evergy's, Westar Energy's and KCP&L's consolidated balance sheets, statements of income and comprehensive income and statements of cash flowsMissouri West. See Note 2 for comparative purposes. Evergy reflects the classifications of Westar Energy as the accounting acquirer inadditional information regarding the merger. These reclassifications did not affect Evergy's, Westar Energy's or KCP&L's net income or Evergy's, Westar Energy's or KCP&L's cash flows from operations, investing or financing.
Most significantly for Westar Energy's consolidated balance sheets as of December 31, 2017, was the reclassification of $50.2 million from accrued employee benefits (currently reported as pension and post-retirement liability) to other long-term liabilities. Most significantly for KCP&L's consolidated balance sheets, current regulatory assets and liabilities have been presented separately from the non-current portions in each respective consolidated balance sheet where recovery or refund is expected within the next 12 months.
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The table below summarizes KCP&L's reclassifications related to operating and investing activities for its consolidated statement of cash flows for 2017 and 2016.
  2017 2016
  As Previously Filed As Recast As Previously Filed As Recast
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: (in millions)
Adjustments to reconcile income to net cash from operating activities:        
Amortization of other $30.2
 $—
 $33.9
 $—
Amortization of deferred refueling outage —
 18.3
 —
 19.0
Deferred income taxes, net 83.5
 —
 93.4
 —
Investment tax credit amortization (1.0) —
 (1.0) —
Net deferred income taxes and credits —
 82.5
 —
 92.4
Payments for asset retirement obligations (25.5) (25.5) —
 (15.0)
Other/Solar rebates paid(a)
 (9.0) 7.5
 1.4
 8.8
Changes in working capital items:        
Fuel inventory and supplies —
 (5.2) —
 6.3
Fuel inventories(a)
 1.9
 —
 10.6
 —
Materials and supplies(a)
 (7.1) —
 (4.3) —
Prepaid expenses and other current assets —
 8.4
 —
 (73.2)
Other current liabilities —
 (0.1) —
 10.4
Changes in other assets —
 31.7
 —
 66.5
Changes in other liabilities —
 6.5
 —
 (9.4)
Deferred refueling outage costs(a)
 15.5
 —
 (3.1) —
Pension and post-retirement benefit obligations(a)
 27.3
 —
 28.6
 —
Fuel recovery mechanisms(a)
 8.3
 —
 (53.7) —
Total reclassifications $124.1
 $124.1
 $105.8
 $105.8
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:        
Additions to property, plant and equipment $—
 $(468.6) $—
 $(447.9)
Utility capital expenditures (437.7) —
 (418.8) —
Allowance for borrowed funds used during construction (6.1) —
 (5.6) —
Other investing activities (23.9) 0.9
 (23.8) (0.3)
Total reclassifications $(467.7) $(467.7) $(448.2) $(448.2)
(a)Previously reported within Note 3 to the consolidated financial statements of the Great Plains Energy and KCP&L combined 2017 and 2016 Annual Reports on Form 10-K.
Use of Estimates
The process of preparing financial statements in conformity with generally accepted accounting principles (GAAP) requires the use of estimates and assumptions that affect the reported amounts of certain types of assets, liabilities, revenues and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts.
Cash and Cash Equivalents
At December 31, 2019, Evergy had approximately $23.2 million of cash and cash equivalents on hand.
Capital Requirements
Capital Expenditures
Evergy requires significant capital investments and expects to need cash primarily for utility construction programs designed to improve and expand facilities related to providing electric service, which include, but are not limited to, expenditures to develop new transmission lines and improvements to power plants, transmission and distribution lines and equipment. Evergy's capital expenditures were $1,210.1 million, $1,069.7 million and $764.6 million in 2019, 2018 and 2017, respectively.
Capital expenditures projected for the next five years, excluding allowance for fund used during construction (AFUDC) and including costs of removal, are detailed in the following table. This capital expenditure plan is subject to continual review and change.
  2020 2021 2022 2023 2024 
 (millions)
Generating facilities $487
 $555
 $563
 $455
 $263
 
Transmission and distribution facilities 893
 914
 886
 867
 1,006
 
General facilities 238
 117
 122
 92
 94
 
Total capital expenditures $1,618
 $1,586
 $1,571
 $1,414
 $1,363
 

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Contractual Obligations and Other Commitments
In the course of its business activities, the Evergy Companies enter into a variety of contracts and commercial commitments. Some of these result in direct obligations reflected on Evergy's consolidated balance sheets while others are commitments, some firm and some based on uncertainties, not reflected in Evergy's underlying consolidated financial statements.
The information in the following table is provided to summarize Evergy's cash obligations and commercial commitments.
Payment due by period2020 2021 2022 2023 2024After 2024Total
Long-term debt(millions)
Principal$251.1
 $432.0
 $387.5
 $439.5
 $800.0
 $6,642.9
 $8,953.0
Interest350.8
 327.2
 304.1
 288.9
 279.7
 3,930.7
 5,481.4
Long-term debt of VIEs             
Principal32.3
 18.8
 —
 —
 —
 —
 51.1
Interest0.8
 0.2
 —
 —
 —
 —
 1.0
Lease commitments             
Operating leases20.5
 17.0
 14.1
 11.0
 9.2
 44.7
 116.5
Finance leases8.1
 7.4
 6.7
 5.8
 4.7
 46.2
 78.9
Pension and other post-retirement plans (a)
131.9
 131.9
 131.9
 131.9
 131.9
 (a)
 659.5
Purchase commitments             
Fuel486.9
 137.0
 83.2
 84.7
 17.1
 94.1
 903.0
Power47.3
 47.4
 47.6
 47.8
 41.7
 325.2
 557.0
Other147.7
 42.3
 30.0
 25.1
 19.4
 117.7
 382.2
Total contractual commitments (a)
$1,477.4
 $1,161.2
 $1,005.1
 $1,034.7
 $1,303.7
 $11,201.5
 $17,183.6
(a)
Evergy expects to make contributions to the pension and other post-retirement plans beyond 2024 but the amounts are not yet determined.
Long-term debt includes current maturities. Long-term debt principal excludes $80.7 million of unamortized net discounts and debt issuance costs and a $125.5 million fair value adjustment recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger. Variable rate interest obligations are based on rates as of December 31, 2019.
Operating lease commitments include leases for office buildings, computer equipment, operating facilities, vehicles and rail cars to serve jointly-owned generating units where Evergy Kansas Central or Evergy Metro is the managing partner and is reimbursed by other joint-owners for its proportionate share of the cost. Finance lease commitments include obligations for both principal and interest.
Evergy expects to contribute $131.9 million to the pension and other post-retirement plans in 2020, of which the majority is expected to be paid by Evergy Kansas Central and Evergy Metro. Additional contributions to the plans are expected beyond 2024 in amounts at least sufficient to meet the greater of Employee Retirement Income Security Act of 1974, as amended (ERISA) or regulatory funding requirements; however, these amounts have not yet been determined. Amounts for years after 2020 are estimates based on information available in determining the amount for 2020. Actual amounts for years after 2020 could be significantly different than the estimated amounts in the table above.
Fuel commitments consist of commitments for nuclear fuel, coal and coal transportation costs. Power commitments consist of certain commitments for renewable energy under power purchase agreements. Other represents individual commitments entered into in the ordinary course of business.
Evergy has other insignificant long-term liabilities recorded on its consolidated balance sheet at December 31, 2019, which do not have a definitive cash payout date and are not included in the table above.

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Common Stock Dividends
The amount and timing of dividends payable on Evergy's common stock are within the sole discretion of the Evergy Board. The amount and timing of dividends declared by the Evergy Board will be dependent on considerations such as Evergy's earnings, financial position, cash flows, capitalization ratios, regulation, reinvestment opportunities and debt covenants. Evergy targets a long-term dividend payout ratio of 60% to 70% of earnings. See Note 1 to the consolidated financial statements for information on the common stock dividend declared by the Evergy Board in February 2020.
The Evergy Companies also have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels. See Note 18 to the consolidated financial statements for further discussion of restrictions on dividend payments.
Common Stock Repurchase Program
In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock. For 2019, Evergy had total repurchases of common stock of $1,628.7 million and had repurchased 28.8 million shares under the repurchase program. Since the start of the repurchase program in August 2018, Evergy has made total repurchases of common stock of $2,671.0 million and has repurchased 45.2 million shares under the repurchase program. Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committee of the Evergy Board conducts its review of ways to enhance long-term shareholder value, which is expected to conclude in the first half of 2020.

See Note 18 to the consolidated financial statements for more information regarding Evergy's common stock repurchase program.
Off-Balance Sheet Arrangements
In the ordinary course of business, Evergy and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiary's intended business purposes. In connection with the closing of the merger, Evergy assumed the guarantees previously provided to Evergy Missouri West by Great Plains Energy. The majority of these agreements guarantee Evergy's own future performance, so a liability for the fair value of the obligation is not recorded.
At December 31, 2019, Evergy has provided $110.2 million of credit support for Evergy Missouri West as follows:
Evergy direct guarantees to Evergy Missouri West counterparties totaling $17.0 million, which expire in 2020, and
Evergy's guarantee of Evergy Missouri West long-term debt totaling $93.2 million, which includes debt with maturity dates ranging from 2020 to 2023.
Evergy has also guaranteed Evergy Missouri West's short-term debt, including its commercial paper program. At December 31, 2019, Evergy Missouri West had $93.4 million of commercial paper outstanding. None of the guaranteed obligations are subject to default or prepayment if Evergy Missouri West's credit ratings were downgraded.
The Evergy Companies also have off-balance sheet arrangements in the form of letters of credit entered into in the ordinary course of business.

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Cash Flows
The following table presents Evergy's cash flows from operating, investing and financing activities.
 201920182017
 (millions)
Cash flows from operating activities$1,749.0
$1,497.8
$912.7
Cash flows from (used in) investing activities(1,080.3)197.4
(780.8)
Cash flows used in financing activities(805.8)(1,538.4)(131.6)
Cash Flows from Operating Activities
Evergy's $251.2 million increase in cash flows from operating activities in 2019 compared to 2018 was primarily driven by a $252.3 million increase due to the inclusion of Evergy Metro's and Evergy Missouri West's cash flows from operating activities in the first five months of 2019 and $35.6 million of merger success fees paid by Evergy and Evergy Kansas Central upon the completion of the merger in June 2018.
Cash Flows from (used in) Investing Activities
Evergy's cash flows used in investing activities increased $1,277.7 million in 2019 compared to 2018 primarily driven by:
$1,154.2 million of cash acquired from Great Plains Energy in June 2018;
a $243.6 million increase in additions to property, plant and equipment due to the inclusion of Evergy Metro and Evergy Missouri West activity in the first five months of 2019; and
$140.6 million in proceeds from the settlement of deal contingent interest rate swaps in June 2018; partially offset by
an increase of $154.9 million in proceeds from COLI investments, primarily from Evergy Kansas Central due to a higher number of policy settlements in 2019.
Cash Flows used in Financing Activities
Evergy's cash flows used in financing activities decreased $732.6 million in 2019 compared to 2018 primarily driven by:
a $2,081.8 million increase in proceeds from long-term debt, net, as further described in Note 13 to the consolidated financial statements; partially offset by
a $586.4 million increase of repurchased common stock under the common stock repurchase program, as further described in Note 18 to the consolidated financial statements;
a $305.3 million increase in retirement of long-term debt, as further described in Note 13 to the consolidated financial statements;
a $211.0 million decrease in collateralized short-term debt, net borrowings primarily due to the establishment of Evergy Kansas Central’s receivable sale facility in the fourth quarter of 2018;
a $123.6 million increase in the repayment of borrowings from the cash surrender value of COLI, primarily from Evergy Kansas Central due to a higher number of policy settlements in 2019; and
a $69.8 million payment for the settlement of Evergy's interest rate swap that was designated as a cash flow hedge of its issuance of $800.0 million of 2.90% Senior Notes in September 2019.

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EVERGY KANSAS CENTRAL, INC.
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
The below results of operations and related discussion for Evergy Kansas Central is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
The following table summarizes Evergy Kansas Central's comparative results of operations.
 2019 Change 2018
 (millions)
Operating revenues$2,507.4
 $(107.5) $2,614.9
Fuel and purchased power493.0
 (106.2) 599.2
SPP network transmission costs251.3
 (8.6) 259.9
Operating and maintenance530.5
 (110.2) 640.7
Depreciation and amortization443.8
 52.9
 390.9
Taxes other than income tax192.3
 18.6
 173.7
Income from operations596.5
 46.0
 550.5
Other expense, net(12.9) 20.6
 (33.5)
Interest expense177.0
 0.2
 176.8
Income tax expense (benefit)52.1
 56.4
 (4.3)
Equity in earnings of equity method investees, net of income taxes4.6
 —
 4.6
Net income359.1
 10.0
 349.1
Less: Net income attributable to noncontrolling interests15.7
 5.5
 10.2
Net income attributable to Evergy Kansas Central, Inc.$343.4
 $4.5
 $338.9
Evergy Kansas Central Utility Gross Margin and MWh Sales
The following table summarizes Evergy Kansas Central's utility gross margin and MWhs sold.
 Revenues and ExpensesMWhs Sold
 2019 Change 2018 2019 Change 2018
Retail revenues(millions)(thousands)
Residential$793.9
 $(52.5) $846.4
 6,460
 (276) 6,736
Commercial709.1
 6.3
 702.8
 7,399
 (97) 7,496
Industrial401.3
 4.9
 396.4
 5,622
 (20) 5,642
Other retail revenues21.0
 1.0
 20.0
 45
 (13) 58
Total electric retail1,925.3
 (40.3) 1,965.6
 19,526
 (406) 19,932
Wholesale revenues239.9
 (106.2) 346.1
 7,540
 (2,629) 10,169
Transmission revenues273.3
 (15.6) 288.9
 N/A
 N/A
 N/A
Other revenues68.9
 54.6
 14.3
 N/A
 N/A
 N/A
Operating revenues2,507.4
 (107.5) 2,614.9
 27,066
 (3,035) 30,101
Fuel and purchased power(493.0) 106.2
 (599.2)      
SPP network transmission costs(251.3) 8.6
 (259.9)      
Utility gross margin (a)
$1,763.1
 $7.3
 $1,755.8
      
(a)Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.
Evergy Kansas Central's utility gross margin increased $7.3 million in 2019 compared to 2018 driven by:
a $27.9 million increase from new retail rates effective in September 2018, net of a $69.8 million provision for rate refund recorded in 2018 for the change in the corporate income tax rate caused by the TCJA; and

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a $23.1 million increase in revenue due to one-time bill credits recorded in June 2018 as a result of conditions in the KCC merger order; partially offset by
a $30.9 million decrease primarily due to lower retail sales driven by cooler summer weather. For 2019 compared to 2018, cooling degree days decreased 15%; and
a $12.8 million decrease related to Evergy Kansas Central's TDC rider.
Evergy Kansas Central Operating and Maintenance
Evergy Kansas Central's operating and maintenance expense decreased $110.2 million in 2019 compared to 2018 primarily driven by:
$51.9 million of merger-related costs incurred in 2018, consisting of:
◦$44.2 million of voluntary severance and change in control payments as well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding equity compensation awards in accordance with the Amended Merger Agreement; and
◦$21.5 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; partially offset by
◦a $13.8 million decrease in operating and maintenance expense due to the net reallocation of incurred merger transition costs between Evergy Kansas Central, Evergy, Evergy Metro and Evergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Evergy Kansas Central in accordance with the KCC merger order;
a $22.9 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily due to:
◦$12.3 million of obsolete inventory write-offs at retiring fossil-fuel units in 2018;
◦a $7.3 million decrease due to the retirement of Evergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center and Units 1 and 2 at Gordan Evans Energy Center in the fourth quarter of 2018; and
◦$0.7 million of voluntary severance expenses incurred in 2018 related to the Local 1523 union voluntary exit program; partially offset by
◦an $8.4 million increase due to the write-off of a regulatory asset for costs incurred during the JEC lease extension, see Note 5 to the consolidated financial statements;
a $19.2 million decrease in various administrative and general operating and maintenance expenses primarily driven by a $10.0 million decrease in labor and employee benefits expense primarily due to lower employee headcount and pension and post-retirement costs in 2019 and $5.3 million of voluntary severance expenses incurred in the third quarter of 2018 related to a Wolf Creek voluntary exit program;
a $9.6 million decrease in transmission and distribution operating and maintenance expense primarily due to a higher level of vegetation management activity in 2018; and
a $6.3 million decrease in plant operating and maintenance expense at nuclear generating units related to Wolf Creek; partially offset by
$9.3 million of voluntary severance expenses incurred in 2019.
Evergy Kansas Central Depreciation and Amortization
Evergy Kansas Central's depreciation and amortization expense increased $52.9 million in 2019 compared to 2018 driven by:
a $32.4 million increase primarily due to a change in depreciation rates as a result of Evergy Kansas Central's rate case effective in September 2018; and
a $20.5 million increase primarily due to capital additions.

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Evergy Kansas Central Taxes Other Than Income Tax
Evergy Kansas Central's taxes other than income tax increased$18.6 million in 2019 compared to 2018 primarily driven by an $18.3 million increase in property taxes.
Evergy Kansas Central Other Expense, Net
Evergy Kansas Central's other expense, net decreased $20.6 million in 2019 compared to 2018 primarily driven by:
a $12.4 million decrease due to recording higher COLI benefits in 2019;
a $4.2 million decrease due to higher net unrealized gains in Evergy Kansas Central's rabbi trust in 2019; and
a $3.4 million decrease due to lower pension non-service costs in 2019.
Evergy Kansas Central Income Tax Expense
Evergy Kansas Central's income tax expense increased $56.4 million in 2019 compared to 2018 driven by:
a $52.6 million increase related to the revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018; and
an $18.9 million increase due to higher pre-tax income; partially offset by
a $5.3 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes.

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EVERGY METRO, INC.
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS
The below results of operations and related discussion for Evergy Metro is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
The following table summarizes Evergy Metro's comparative results of operations.
 2019 Change 2018
 (millions)
Operating revenues$1,806.5
 $(16.6) $1,823.1
Fuel and purchased power482.1
 (38.5) 520.6
Operating and maintenance451.9
 (42.3) 494.2
Depreciation and amortization318.4
 37.1
 281.3
Taxes other than income tax127.6
 10.4
 117.2
Income from operations426.5
 16.7
 409.8
Other expense, net(15.8) 10.1
 (25.9)
Interest expense119.8
 (13.9) 133.7
Income tax expense35.7
 (51.6) 87.3
Net income$255.2
 $92.3
 $162.9
Evergy Metro Utility Gross Margin and MWh Sales
The following table summarizes Evergy Metro's utility gross margin and MWhs sold.
 Revenues and Expenses MWhs Sold
 2019 Change 2018 2019 Change 2018
Retail revenues(millions) (thousands)
Residential$712.4
 (23.2) $735.6
 5,425
 (261) 5,686
Commercial786.1
 (8.7) 794.8
 7,623
 (159) 7,782
Industrial136.9
 (1.9) 138.8
 1,713
 (41) 1,754
Other retail revenues16.3
 5.9
 10.4
 75
 (1) 76
Total electric retail1,651.7
 (27.9) 1,679.6
 14,836
 (462) 15,298
Wholesale revenues70.9
 17.4
 53.5
 6,098
 1,081
 5,017
Transmission revenues17.5
 3.0
 14.5
 N/A
 N/A
 N/A
Other revenues66.4
 (9.1) 75.5
 N/A
 N/A
 N/A
Operating revenues1,806.5
 (16.6) 1,823.1
 20,934
 619
 20,315
Fuel and purchased power(482.1) 38.5
 (520.6)      
Utility gross margin (a)
$1,324.4
 $21.9
 $1,302.5
 

   

(a) Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.
Evergy Metro's utility gross margin increased $21.9 million in 2019 compared to 2018 driven by:
a $40.4 million increase from new retail rates effective in December 2018, net of a $72.4 million provision for rate refund recorded for 2018 for the change in the corporate income tax rate caused by the TCJA; and
a $22.4 million increase in revenue due to one-time bill credits recorded in June 2018 as a result of conditions in the KCC and MPSC merger orders; partially offset by
a $30.9 million decrease primarily due to lower retail sales driven by cooler summer weather. For 2019 compared to 2018, cooling degree days decreased 18%; and
a $10.0 million decrease for recovery of programs costs for energy efficiency programs under MEEIA, which have a direct offset in operating and maintenance expense.

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Evergy Metro Operating and Maintenance
Evergy Metro's operating and maintenance expense decreased$42.3 million in 2019 compared to 2018 primarily driven by:
a $26.4 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily driven by:
◦a $10.9 million decrease due to the retirement of Montrose Station in 2018, which includes $7.3 million of obsolete inventory write-offs in 2018;
◦a $3.7 million decrease due to an extended maintenance outage at Iatan No. 2 in 2018; and
◦$3.2 million of voluntary severance expenses incurred in the third quarter of 2018 related to the Local 412 union voluntary exit program;
a $23.8 million decrease in various administrative and general operating and maintenance expenses, which includes $5.3 million of voluntary severance expenses incurred in the third quarter of 2018 related to a Wolf Creek voluntary exit program and a $3.5 million decrease in injuries and damages expense primarily due to an increase in estimated workers compensation losses recorded in 2018;
a $10.0 million decrease in program costs for energy efficiency programs under MEEIA, which have a direct offset in revenue;
a $6.8 million decrease in plant operating and maintenance expense at nuclear generating units related to Wolf Creek; and
$2.1 million of merger-related costs incurred in 2018; partially offset by
a $23.2 million increase in operating and maintenance expense due to the net reallocation of incurred merger transition costs between Evergy Metro, Evergy, Evergy Kansas Central and Evergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Evergy Metro in accordance with the KCC and MPSC merger orders;
a $7.1 million increase in transmission and distribution operating and maintenance expense primarily due to costs incurred from storms that occurred in January 2019; and
$6.8 million of voluntary severance expenses incurred in 2019.
Evergy Metro Depreciation and Amortization
Evergy Metro's depreciation and amortization increased $37.1 million in 2019 compared to 2018 primarily driven by:
a $19.3 million increase primarily due to capital additions; and
a $17.8 million increase due to a change in depreciation rates effective in December 2018 as a result of Evergy Metro's 2018 Kansas rate case.
Evergy Metro Taxes Other Than Income Tax
Evergy Metro's taxes other than income tax increased $10.4 million in 2019 compared to 2018 primarily driven by a $7.9 million increase in property taxes.

Evergy Metro Interest Expense
Evergy Metro's interest expense decreased $13.9 million in 2019 compared to 2018 primarily driven by a $12.8 million net decrease due to the repayment of $400.0 million of 7.15% Mortgage Bonds at maturity in April 2019, which decreased interest expense by $25.4 million, partially offset by a $12.6 million increase due to the issuance of $400.0 million of 4.125% Mortgage Bonds in March 2019.

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Evergy Metro Income Tax Expense
Evergy Metro's income tax expense decreased $51.6 million in 2019 compared to 2018 primarily driven by:
a $51.0 million decrease related to the revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018; and
a $21.4 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes; partially offset by
a $15.5 million increase related to the revaluation of deferred income tax assets and liabilities as a result of the enactment of Missouri state income tax reform in June 2018; and
a $10.8 million increase due to higher pre-tax income.
ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
In the ordinary course of business, Evergy faces risks that are either non-financial or non-quantifiable. Such risks principally include business, legal, operational and credit risks and are not represented in the following analysis. See Part I, Item 1A, Risk Factors and Part II, Item 7, MD&A for further discussion of risk factors.
The Evergy Companies are exposed to market risks associated with commodity price and supply, interest rates and equity prices. Commodity price risk is the potential adverse price impact related to the purchase or sale of electricity and energy-related products. Credit risk is the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. Interest rate risk is the potential adverse financial impact related to changes in interest rates. In addition, Evergy's investments in trusts to fund nuclear plant decommissioning and to fund non-qualified retirement benefits give rise to security price risk.
Management has established risk management policies and strategies to reduce the potentially adverse effects that the volatility of the markets may have on Evergy's operating results. During the ordinary course of business, the Evergy Companies' hedging strategies are reviewed to determine the hedging approach deemed appropriate based upon the circumstances of each situation. Though management believes its risk management practices are effective, it is not possible to identify and eliminate all risk. Evergy could experience losses, which could have a material adverse effect on its results of operations or financial position, due to many factors, including unexpectedly large or rapid movements or disruptions in the energy markets, regulatory-driven market rule changes and/or bankruptcy or non-performance of customers or counterparties, and/or failure of underlying transactions that have been hedged to materialize.
Hedging Strategies
From time to time, Evergy utilizes derivative instruments to execute risk management and hedging strategies. Derivative instruments, such as futures, forward contracts, swaps or options, derive their value from underlying assets, indices, reference rates or a combination of these factors. These derivative instruments include negotiated contracts, which are referred to as over-the-counter derivatives, and instruments listed and traded on an exchange.
Commodity Price Risk
The Evergy Companies engage in the wholesale and retail sale of electricity and are exposed to risks associated with the price of electricity and other energy-related products. Exposure to these risks is affected by a number of factors including the quantity and availability of fuel used for generation and the quantity of electricity customers consume. Customers' electricity usage could also vary from year to year based on the weather or other factors. Quantities of fossil fuel used for generation vary from year to year based on the availability, price and deliverability of a given fuel type as well as planned and unplanned outages at facilities that use fossil fuels. Evergy's exposure to fluctuations in these factors is limited by the cost-based regulation of its regulated operations in Kansas and Missouri as these operations are typically allowed to recover substantially all of these costs through cost-recovery mechanisms, primarily through fuel recovery mechanisms. While there may be a delay in timing between when these costs are incurred and when they are recovered through rates, changes from year to year generally do not have a material impact on operating results.

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Interest Rate Risk
Evergy manages interest rate risk and short- and long-term liquidity by limiting its exposure to variable interest rate debt to a percentage of total debt, diversifying maturity dates and, from time to time, entering into interest rate hedging transactions. At December 31, 2019, 3% of Evergy's long-term debt was variable rate debt. Evergy also has short-term borrowings and current maturities of fixed rate debt that are exposed to interest rate risk. Evergy computes and presents information regarding the sensitivity to changes in interest rates for variable rate debt and current maturities of fixed rate debt by assuming a 100-basis-point change in the current interest rates applicable to such debt over the remaining time the debt is outstanding.
Evergy had $1,113.7 million of variable rate debt, including notes payable, commercial paper and current maturities of fixed rate debt as of December 31, 2019. A 100-basis-point change in interest rates applicable to this debt would impact income before income taxes on an annualized basis by approximately $9.9 million.
Credit Risk
Evergy is exposed to counterparty credit risk largely in the form of accounts receivable from its retail and wholesale electric customers and through executory contracts with market risk exposure. The credit risk associated with accounts receivable from retail and wholesale customers is largely mitigated by Evergy's large number of individual customers spread across diverse customer classes and the ability to recover bad debt expense in customer rates. The Evergy Companies maintain credit policies and employ credit risk control mechanisms, such as letters of credit, when necessary to minimize their overall credit risk and monitor exposure.
Investment Risk
Evergy maintains trust funds, as required by the NRC, to fund its 94% share of decommissioning the Wolf Creek nuclear power plant and also maintains trusts to fund pension benefits as well as certain non-qualified retirement benefits. As of December 31, 2019, these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet. The equity securities in the trusts are exposed to price fluctuations in equity markets and the value of debt securities are exposed to changes in interest rates and other market factors.
As nuclear decommissioning costs are currently recovered in customer rates, Evergy defers both realized and unrealized gains and losses for these securities as an offset to its regulatory asset for decommissioning Wolf Creek and as such, fluctuations in the value of these securities do not impact earnings. A significant decline in the value of pension or non-qualified retirement assets could require Evergy to increase funding of its pension plans in future periods, which could adversely affect cash flows in those periods. In addition, a decline in the fair value of these plan assets, in the absence of additional cash contributions to the plans by Evergy, could increase the amount of pension cost required to be recorded in future periods by Evergy.


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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm
Evergy, Inc.
57
Evergy Kansas Central, Inc.
60
Evergy Metro, Inc.
61
Evergy, Inc.
Consolidated Statements of Comprehensive Income
62
Consolidated Balance Sheets
63
Consolidated Statements of Cash Flows
65
Consolidated Statements of Changes in Equity
66
Evergy Kansas Central, Inc.
Consolidated Statements of Income
67
Consolidated Balance Sheets
68
Consolidated Statements of Cash Flows
70
Consolidated Statements of Changes in Equity
71
Evergy Metro, Inc.
Consolidated Statements of Comprehensive Income
72
Consolidated Balance Sheets
73
Consolidated Statements of Cash Flows
75
Consolidated Statements of Changes in Equity
76
Combined Notes to Consolidated Financial Statements
Note 1:
Summary of Significant Accounting Policies
77
Note 2:
Merger of Great Plains Energy and Evergy Kansas Central
85
Note 3:
Revenue
90
Note 4:
Receivables
93
Note 5:
Rate Matters and Regulation
94
Note 6:
Goodwill
101
Note 7:
Asset Retirement Obligations
101
Note 8:
Property, Plant & Equipment
102
Note 9:
Jointly-Owned Electric Utility Plants
103
Note 10:
Pension Plans and Post-Retirement Benefits
104
Note 11:
Equity Compensation
116
Note 12:
Short-Term Borrowings and Short-Term Bank Lines of Credit
120
Note 13:
Long-Term Debt
121
Note 14:
Fair Value Measurements
124
Note 15:
Commitments and Contingencies
129
Note 16:
Guarantees
133
Note 17:
Related Party Transactions and Relationships
133
Note 18:
Shareholders' Equity
135
Note 19:
Variable Interest Entities
136
Note 20:
Taxes
137
Note 21:
Leases
143
Note 22:
Quarterly Operating Results (Unaudited)
146


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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Evergy, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy, Inc. and subsidiaries (the "Company") as of December 31, 2019 and 2018, the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2019, and the related notes and the financial statement schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 2, 2020, expressed an unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 5 to the financial statements
Critical Audit Matter Description
The Company is subject to rate regulation by the Kansas Corporation Commission and by the Missouri Public Service Commission (collectively the "Commissions"), which have jurisdiction with respect to the rates of electric distribution companies in Kansas and Missouri, respectively. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the

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economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant, and equipment, including asset retirements and abandonments; regulatory assets and liabilities; operating revenues; operating and maintenance expense; and depreciation expense.
The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Rates are determined and approved in regulatory proceedings based on an analysis of the Company's costs to provide utility service and a return on, and recovery of, the Company's investment in the utility business. Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. The Commissions' regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. Decisions to be made by the Commissions in the future will impact the accounting for regulated operations, including decisions about the amount of allowable costs and return on invested capital included in rates and any refunds that may be required. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve (1) full recovery of the costs of providing utility service or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment.
When the Company retires a regulated plant, the Company must assess the probability of recovery of the regulated plant, which is dependent upon amounts that may be recovered through regulated rates, including any return. Pending receipt of regulatory approval for the retirement and/or recovery of the affected plants, accounting for early retirements of regulated plants involves judgment related to the nature of the early retirement and the likelihood that the Company will recover its remaining investment in these retired generating plants with return. Auditing the judgments related to the nature and likelihood of the retirement and the probability of recovering the generating plant investment with a return involves especially subjective and complex judgment.
We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs, (2) probability of potential charges related to the abandonment of regulated plants, and (3) a refund to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:
We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.
We tested the effectiveness of management's controls over the initial recognition of amounts as property, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates, including Company management's determination of the likelihood of recovery of the full investment of certain regulated plants and probability of refunding amounts previously collected from customers related to certain regulated plants.
We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.
We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commissions for the Company and other public utilities in Kansas and Missouri, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available

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information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedence of the Commissions' treatment of similar costs under similar circumstances.
For regulatory matters in process, including those that could impact the early retirement of regulated plants, we inspected the Company's filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company's future rates, for any evidence that might contradict management's assertions.
We evaluated the reasonableness of management's judgments for potential indicators of abandonment by performing the following:
◦We inquired of management about property, plant, and equipment that may be abandoned.
◦We inspected the capital projects budget and construction-in-process listings and inquired of management to identify projects that are designed to replace assets that may be retired prior to the end of the useful life.
◦We inspected minutes of the board of directors and regulatory orders and other filings with the Commissions to identify any evidence that may contradict management's assertion regarding probability of an abandonment.
We compared actual spend for projects that have been capitalized to property, plant, and equipment to budget. We evaluated regulatory filings for any evidence that intervenors are challenging full recovery of the cost of any capital projects. For significant projects that were over budget or if full recovery of project costs is being challenged by intervenors, we evaluated management's assessment of the probability of a disallowance. We tested selected costs included in the capitalized project costs for completeness and accuracy.
We evaluated management's analysis, and letters from internal and external legal counsel, as appropriate, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.
We evaluated management's conclusions for the probable recovery of the retired regulated plant investment with a return with the assistance of professionals in our firm having expertise in the application of accounting guidance for early retirements of regulated plants. We evaluated management's conclusions regarding the accounting for the abandonment of certain regulated plants and the impact of recent rate orders on the accounting.
/s/ DELOITTE & TOUCHE LLP

Kansas City, Missouri  
March 2, 2020 

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






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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Evergy Kansas Central, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy Kansas Central, Inc. and subsidiaries (the "Company") as of December 31, 2019 and 2018, the related consolidated statements of income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2019, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP

Kansas City, Missouri  
March 2, 2020  

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














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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of Evergy Metro, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Evergy Metro, Inc. and subsidiaries (the "Company") as of December 31, 2019 and 2018, the related consolidated statements of comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2019, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP

Kansas City, Missouri  
March 2, 2020  

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




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EVERGY, INC.
Consolidated Statements of Comprehensive Income
     
Year Ended December 31 2019 2018 2017
 (millions, except per share amounts)
OPERATING REVENUES $5,147.8
 $4,275.9
 $2,571.0
OPERATING EXPENSES:      
Fuel and purchased power 1,265.0
 1,078.7
 541.5
SPP network transmission costs 251.3
 259.9
 247.9
Operating and maintenance 1,218.5
 1,115.8
 563.5
Depreciation and amortization 861.7
 618.8
 371.7
Taxes other than income tax 365.5
 269.1
 167.6
Total Operating Expenses 3,962.0
 3,342.3
 1,892.2
INCOME FROM OPERATIONS 1,185.8
 933.6
 678.8
OTHER INCOME (EXPENSE):      
Investment earnings 11.0
 8.8
 4.0
Other income 26.9
 15.5
 8.3
Other expense (76.9) (78.7) (39.1)
Total Other Expense, Net (39.0) (54.4) (26.8)
Interest expense 374.0
 279.6
 171.0
INCOME BEFORE INCOME TAXES 772.8
 599.6
 481.0
Income tax expense 97.0
 59.0
 151.2
Equity in earnings of equity method investees, net of income taxes 9.8
 5.4
 6.7
NET INCOME 685.6
 546.0
 336.5
Less: Net income attributable to noncontrolling interests 15.7
 10.2
 12.6
NET INCOME ATTRIBUTABLE TO EVERGY, INC. $669.9
 $535.8
 $323.9
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY (see Note 1)      
Basic earnings per common share $2.80
 $2.50
 $2.27
Diluted earnings per common share $2.79
 $2.50
 $2.27
AVERAGE COMMON SHARES OUTSTANDING      
Basic 239.5
 213.9
 142.5
Diluted 239.9
 214.1
 142.6
COMPREHENSIVE INCOME      
NET INCOME $685.6
 $546.0
 $336.5
OTHER COMPREHENSIVE INCOME      
Derivative hedging activity      
Loss on derivative hedging instruments (64.4) (5.4) —
Income tax benefit 16.5
 1.4
 —
Net loss on derivative hedging instruments (47.9) (4.0) —
Reclassification to expenses, net of tax 1.5
 —
 —
Derivative hedging activity, net of tax (46.4) (4.0) —
Defined benefit pension plans      
Net gain (loss) arising during period (0.8) 1.4
 —
Income tax expense (benefit) 0.2
 (0.4) —
Net gain (loss) arising during period, net of tax (0.6) 1.0
 —
Change in unrecognized pension expense, net of tax (0.6) 1.0
 —
Total other comprehensive loss (47.0) (3.0) —
Comprehensive income 638.6
 543.0
 336.5
Less: comprehensive income attributable to noncontrolling interest 15.7
 10.2
 12.6
COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC. $622.9
 $532.8
 $323.9
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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

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


   


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

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EVERGY, INC.
Consolidated Statements of Cash Flows
      
Year Ended December 312019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$685.6
 $546.0
 $336.5
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization861.7
 618.8
 371.7
Amortization of nuclear fuel51.4
 43.6
 32.2
Amortization of deferred refueling outage25.5
 21.2
 16.1
Amortization of corporate-owned life insurance19.8
 22.6
 20.6
Non-cash compensation16.3
 29.9
 8.8
Net deferred income taxes and credits121.5
 124.2
 149.6
Allowance for equity funds used during construction(2.2) (3.1) (2.0)
Payments for asset retirement obligations(17.8) (22.4) (16.0)
Equity in earnings of equity method investees, net of income taxes(9.8) (5.4) (6.7)
Income from corporate-owned life insurance(29.6) (2.3) (2.8)
Other(3.2) (5.2) (8.7)
Changes in working capital items:     
Accounts receivable(23.1) 265.1
 (2.1)
Accounts receivable pledged as collateral26.0
 (185.0) —
Fuel inventory and supplies29.9
 54.7
 7.2
Prepaid expenses and other current assets43.4
 (128.1) 55.8
Accounts payable16.9
 56.7
 10.0
Accrued taxes(8.2) (76.4) 9.2
Other current liabilities(59.4) 92.0
 (118.0)
Changes in other assets79.8
 66.8
 32.0
Changes in other liabilities(75.5) (15.9) 19.3
Cash Flows from Operating Activities1,749.0
 1,497.8
 912.7
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: 
  
  
Additions to property, plant and equipment(1,210.1) (1,069.7) (764.6)
Cash acquired from the merger with Great Plains Energy—
 1,154.2
 —
Purchase of securities - trusts(55.8) (117.5) (41.0)
Sale of securities - trusts47.3
 117.7
 41.2
Investment in corporate-owned life insurance(18.3) (17.1) (17.0)
Proceeds from investment in corporate-owned life insurance161.7
 6.8
 4.2
Proceeds from settlement of interest rate swap—
 140.6
 —
Other investing activities(5.1) (17.6) (3.6)
Cash Flows from (used in) Investing Activities(1,080.3) 197.4
 (780.8)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: 
  
  
Short term debt, net(176.7) (104.0) (91.3)
Proceeds from term loan facility1,000.0
 —
 —
Repayment of term loan facility(1,000.0) —
 —
Collateralized short-term borrowings, net(26.0) 185.0
 —
Proceeds from long-term debt2,372.7
 290.9
 296.2
Retirements of long-term debt(701.1) (395.8) (125.0)
Retirements of long-term debt of variable interest entities(30.3) (28.5) (26.8)
Payment for settlement of interest rate swap accounted for as a cash flow hedge(69.8) —
 —
Borrowings against cash surrender value of corporate-owned life insurance59.4
 56.5
 55.1
Repayment of borrowings against cash surrender value of corporate-owned life insurance(127.5) (3.9) (1.0)
Cash dividends paid(462.5) (475.0) (223.1)
Repurchase of common stock under repurchase plan(1,628.7) (1,042.3) —
Distributions to shareholders of noncontrolling interests(8.6) —
 (5.8)
Other financing activities(6.7) (21.3) (9.9)
Cash Flows used in Financing Activities(805.8) (1,538.4) (131.6)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(137.1) 156.8
 0.3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:     
Beginning of period160.3
 3.5
 3.2
End of period$23.2
 $160.3
 $3.5
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.
Consolidated Statements of Changes in Equity
       
 Evergy, Inc. Shareholders  
 Common stock sharesCommon stockRetained earningsAOCINon-controlling interestsTotal equity
 (millions, except share amounts)
Balance as of December 31, 2016141,791,153
$2,727.3
$1,078.6
$—
$27.3
$3,833.2
Net income—
—
323.9
—
12.6
336.5
Issuance of stock12,131
0.6
—
—
—
0.6
Issuance of stock compensation and reinvested dividends, net of tax withholding290,991
(1.9)—
—
—
(1.9)
Dividends declared on common stock ($1.60 per share)—
—
(229.2)—
—
(229.2)
Stock compensation expense—
8.8
—
—
—
8.8
Deconsolidation of noncontrolling interests—
—
—
—
(81.9)(81.9)
Distributions to shareholders of noncontrolling interests—
—
—
—
(5.7)(5.7)
Balance as of December 31, 2017142,094,275
2,734.8
1,173.3
—
(47.7)3,860.4
Net income—
—
535.8
—
10.2
546.0
Issuance of stock to Great Plains Energy shareholders128,947,518
6,979.9
—
—
—
6,979.9
Issuance of restricted common stock122,505
—
—
—
—
—
Issuance of stock compensation and reinvested dividends,
net of tax withholding		533,273
(16.7)—
—
—
(16.7)
Dividends declared on common stock ($1.735 per share)—
—
(362.1)—
—
(362.1)
Dividend equivalents declared—
—
(1.0)—
—
(1.0)
Stock compensation expense—
29.9
—
—
—
29.9
Repurchase of common stock(16,371,319)(1,042.3)—
—
—
(1,042.3)
Derivative hedging activity, net of tax—
—
—
(4.0)—
(4.0)
Change in unrecognized pension expense, net of tax—
—
—
1.0
—
1.0
Other—
(0.4)—
—
—
(0.4)
Balance as of December 31, 2018255,326,252
8,685.2
1,346.0
(3.0)(37.5)9,990.7
Net income—
—
669.9
—
15.7
685.6
Issuance of stock compensation and reinvested dividends,
net of tax withholding		111,849
(2.4)—
—
—
(2.4)
Dividends declared on common stock ($1.93 per share)—
—
(462.5)—
—
(462.5)
Dividend equivalents declared—
—
(1.9)—
—
(1.9)
Stock compensation expense—
16.3
—
—
—
16.3
Repurchase of common stock under repurchase plan(28,796,658)(1,628.7)—
—
—
(1,628.7)
Consolidation of noncontrolling interests—
—
—
—
3.8
3.8
Distributions to shareholders of noncontrolling interests—
—
—
—
(8.6)(8.6)
Derivative hedging activity, net of tax—
—
—
(46.4)—
(46.4)
Change in unrecognized pension expense, net of tax—
—
—
(0.6)—
(0.6)
Balance as of December 31, 2019226,641,443
$7,070.4
$1,551.5
$(50.0)$(26.6)$8,545.3
The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Income
       
Year Ended December 31 2019 2018 2017
  (millions)
OPERATING REVENUES $2,507.4
 $2,614.9
 $2,571.0
OPERATING EXPENSES:      
Fuel and purchased power 493.0
 599.2
 541.5
SPP network transmission costs 251.3
 259.9
 247.9
Operating and maintenance 530.5
 640.7
 563.5
Depreciation and amortization 443.8
 390.9
 371.7
Taxes other than income tax 192.3
 173.7
 167.6
Total Operating Expenses 1,910.9
 2,064.4
 1,892.2
INCOME FROM OPERATIONS 596.5
 550.5
 678.8
OTHER INCOME (EXPENSE):      
Investment earnings (loss) 4.1
 (0.6) 4.0
Other income 23.1
 13.9
 8.3
Other expense (40.1) (46.8) (39.1)
Total Other Expense, Net (12.9) (33.5) (26.8)
Interest expense 177.0
 176.8
 171.0
INCOME BEFORE INCOME TAXES 406.6
 340.2
 481.0
Income tax expense (benefit) 52.1
 (4.3) 151.2
Equity in earnings of equity method investees, net of income taxes 4.6
 4.6
 6.7
NET INCOME 359.1
 349.1
 336.5
Less: Net income attributable to noncontrolling interests 15.7
 10.2
 12.6
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC. $343.4
 $338.9
 $323.9
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
    
 December 31
 2019 2018
ASSETS(millions, except share amounts)
CURRENT ASSETS:       
Cash and cash equivalents $5.2
   $44.5
 
Receivables, net 140.4
   84.3
 
Related party receivables 9.9
   2.6
 
Accounts receivable pledged as collateral 171.0
   185.0
 
Fuel inventory and supplies 266.4
   276.8
 
Income taxes receivable 30.4
   42.7
 
Regulatory assets 93.3
   97.1
 
Prepaid expenses and other assets 34.3
   35.0
 
Total Current Assets 750.9
   768.0
 
PROPERTY, PLANT AND EQUIPMENT, NET 9,864.9
   9,718.3
 
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET 162.0
   169.2
 
OTHER ASSETS:  
    
 
Regulatory assets 730.4
   700.4
 
Nuclear decommissioning trust fund 272.5
   227.5
 
Other 266.0
   233.4
 
Total Other Assets 1,268.9
   1,161.3
 
TOTAL ASSETS $12,046.7
   $11,816.8
 
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
  
 December 31
 2019 2018
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:       
Current maturities of long-term debt $250.0
   $300.0
 
Current maturities of long-term debt of variable interest entities 32.3
   30.3
 
Notes payable and commercial paper 249.2
   411.7
 
Collateralized note payable 171.0
   185.0
 
Accounts payable 200.5
   154.4
 
Related party payables 14.8
   14.9
 
Accrued taxes 98.7
   88.6
 
Accrued interest 74.2
   74.4
 
Regulatory liabilities 42.3
   19.5
 
Asset retirement obligations 23.3
   17.1
 
Other 130.2
   83.0
 
Total Current Liabilities 1,286.5
   1,378.9
 
LONG-TERM LIABILITIES:  
    
 
Long-term debt, net 3,436.1
   3,389.8
 
Long-term debt of variable interest entities, net 18.8
   51.1
 
Deferred income taxes 817.7
   815.4
 
Unamortized investment tax credits 253.2
   249.7
 
Regulatory liabilities 1,132.5
   1,101.8
 
Pension and post-retirement liability 495.5
   474.7
 
Asset retirement obligations 249.6
   264.0
 
Other 151.8
   130.7
 
Total Long-Term Liabilities 6,555.2
   6,477.2
 
Commitments and Contingencies (Note 15) 


   


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


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EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Cash Flows
 
Year Ended December 312019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$359.1
 $349.1
 $336.5
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization443.8
 390.9
 371.7
Amortization of nuclear fuel25.6
 26.0
 32.2
Amortization of deferred refueling outage12.8
 13.7
 16.1
Amortization of corporate-owned life insurance19.8
 22.6
 20.6
Non-cash compensation—
 19.9
 8.8
Net deferred income taxes and credits11.6
 (2.2) 149.6
Allowance for equity funds used during construction—
 (2.9) (2.0)
Payments for asset retirement obligations(14.8) (12.0) (16.0)
Equity in earnings of equity method investees, net of income taxes(4.6) (4.6) (6.7)
Income from corporate-owned life insurance(29.0) (2.3) (2.8)
Other(5.5) (5.4) (8.7)
Changes in working capital items:     
Accounts receivable(65.9) 207.9
 (2.1)
Accounts receivable pledged as collateral14.0
 (185.0) —
Fuel inventory and supplies10.9
 17.3
 7.2
Prepaid expenses and other current assets(11.7) (134.2) 55.8
Accounts payable6.9
 (17.6) 10.0
Accrued taxes20.2
 (24.1) 9.2
Other current liabilities12.1
 88.3
 (118.0)
Changes in other assets47.0
 42.7
 32.0
Changes in other liabilities(29.5) (36.2) 19.3
Cash Flows from Operating Activities822.8
 751.9
 912.7
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: 
  
  
Additions to property, plant and equipment(596.1) (713.3) (764.6)
Purchase of securities - trusts(21.8) (99.4) (41.0)
Sale of securities - trusts21.6
 104.2
 41.2
Investment in corporate-owned life insurance(17.6) (17.1) (17.0)
Proceeds from investment in corporate-owned life insurance158.9
 6.8
 4.2
Other investing activities(3.2) (8.6) (3.6)
Cash Flows used in Investing Activities(458.2) (727.4) (780.8)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: 
  
  
Short term debt, net(162.5) 133.7
 (91.3)
Collateralized short-term debt, net(14.0) 185.0
 —
Proceeds from long-term debt294.7
 121.9
 296.2
Retirements of long-term debt(300.0) (121.9) (125.0)
Retirements of long-term debt of variable interest entities(30.3) (28.5) (26.8)
Borrowings against cash surrender value of corporate-owned life insurance56.5
 56.5
 55.1
Repayment of borrowings against cash surrender value of corporate-owned life insurance(125.4) (3.9) (1.0)
Cash dividends paid(110.0) (305.1) (223.1)
Distributions to shareholders of noncontrolling interests(8.6) —
 (5.8)
Other financing activities(4.3) (21.2) (9.9)
Cash Flows from (used in) Financing Activities(403.9) 16.5
 (131.6)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(39.3) 41.0
 0.3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:     
Beginning of period44.5
 3.5
 3.2
End of period$5.2
 $44.5
 $3.5
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Changes in Equity
      
 Evergy Kansas Central, Inc. Shareholder  
 Common stock sharesCommon stockRetained earningsNon-controlling interestsTotal equity
 (millions, except share amounts)
Balance as of December 31, 2016141,791,153
$2,727.3
$1,078.6
$27.3
$3,833.2
Net income—
—
323.9
12.6
336.5
Issuance of stock12,131
0.6
—
—
0.6
Issuance of stock for compensation and reinvested dividends, net of tax withholding290,991
(1.9)—
—
(1.9)
Dividends declared on common stock—
—
(229.2)—
(229.2)
Stock compensation expense—
8.8
—
—
8.8
Deconsolidation of noncontrolling interest—
—
—
(81.9)(81.9)
Distributions to shareholders of noncontrolling interests—
—
—
(5.7)(5.7)
Balance as of December 31, 2017142,094,275
2,734.8
1,173.3
(47.7)3,860.4
Net income——
338.9
10.2
349.1
Issuance of stock for compensation and reinvested dividends, net of tax withholding516,990(17.2)—
—
(17.2)
Stock cancelled pursuant to Amended Merger Agreement(142,611,264)—
—
—
—
Dividends declared on common stock——
(251.6)—
(251.6)
Stock compensation expense—19.9
—
—
19.9
Other—0.1
—
—
0.1
Balance as of December 31, 20181
2,737.6
1,260.6
(37.5)3,960.7
Net income—
—
343.4
15.7
359.1
Dividends declared on common stock—
—
(110.0)—
(110.0)
Consolidation of noncontrolling interests—
—
—
3.8
3.8
Distributions to shareholders of noncontrolling interests—
—
—
(8.6)(8.6)
Balance as of December 31, 20191
$2,737.6
$1,494.0
$(26.6)$4,205.0
The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.


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EVERGY METRO, INC.
Consolidated Statements of Comprehensive Income
     
Year Ended December 31 2019 2018 2017
  (millions)
OPERATING REVENUES $1,806.5
 $1,823.1
 $1,890.7
OPERATING EXPENSES:  
  
  
Fuel and purchased power 482.1
 520.6
 480.7
Operating and maintenance 451.9
 494.2
 474.8
Depreciation and amortization 318.4
 281.3
 266.3
Taxes other than income tax 127.6
 117.2
 182.5
Total Operating Expenses 1,380.0
 1,413.3
 1,404.3
INCOME FROM OPERATIONS 426.5
 409.8
 486.4
OTHER INCOME (EXPENSE):      
Investment earnings 2.4
 2.8
 2.0
Other income 3.2
 2.2
 9.2
Other expense (21.4) (30.9) (50.8)
Total Other Expense, Net (15.8) (25.9) (39.6)
Interest expense 119.8
 133.7
 138.8
INCOME BEFORE INCOME TAXES 290.9
 250.2
 308.0
Income tax expense 35.7
 87.3
 128.2
NET INCOME $255.2
 $162.9
 $179.8
COMPREHENSIVE INCOME  
  
  
NET INCOME $255.2
 $162.9
 $179.8
OTHER COMPREHENSIVE INCOME  
  
  
Derivative hedging activity  
  
  
Reclassification to expenses, net of tax: 0.7
 3.7
 4.6
Derivative hedging activity, net of tax 0.7
 3.7
 4.6
Total other comprehensive income 0.7
 3.7
 4.6
COMPREHENSIVE INCOME $255.9
 $166.6
 $184.4
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY METRO, INC.
Consolidated Balance Sheets
    
 December 31
 2019 2018
ASSETS(millions, except share amounts)
CURRENT ASSETS:       
Cash and cash equivalents $2.0
   $2.6
 
Receivables, net 48.1
   62.7
 
Related party receivables 93.9
   101.8
 
Accounts receivable pledged as collateral 118.0
   130.0
 
Fuel inventory and supplies 163.0
   177.6
 
Income taxes receivable 8.7
   —
 
Regulatory assets 95.4
   130.9
 
Prepaid expenses 22.8
   20.1
 
Other assets 15.0
   16.8
 
Total Current Assets 566.9
   642.5
 
PROPERTY, PLANT AND EQUIPMENT, NET 6,839.0
   6,688.1
 
OTHER ASSETS:  
    
 
Regulatory assets 464.4
   495.2
 
Nuclear decommissioning trust fund 300.7
   244.6
 
Other 134.1
   50.1
 
Total Other Assets 899.2
   789.9
 
TOTAL ASSETS $8,305.1
   $8,120.5
 
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY METRO, INC.
Consolidated Balance Sheets
  
 December 31
 2019 2018
LIABILITIES AND EQUITY(millions, except share amounts)
CURRENT LIABILITIES:       
Current maturities of long-term debt $—
   $400.0
 
Notes payable and commercial paper 199.3
   176.9
 
Collateralized note payable 118.0
   130.0
 
Accounts payable 233.6
   211.1
 
Related party payables 4.6
   —
 
Accrued taxes 38.8
   39.7
 
Accrued interest 26.7
   28.9
 
Regulatory liabilities 11.4
   52.8
 
Asset retirement obligations 36.1
   29.2
 
Accrued compensation benefits 45.1
   52.5
 
Other 34.0
   17.2
 
Total Current Liabilities 747.6
   1,138.3
 
LONG-TERM LIABILITIES:  
    
 
Long-term debt, net 2,525.0
   2,130.1
 
Deferred income taxes 642.8
   631.8
 
Unamortized investment tax credits 119.6
   120.7
 
Regulatory liabilities 792.2
   794.3
 
Pension and post-retirement liability 499.7
   491.9
 
Asset retirement obligations 217.5
   231.8
 
Other 180.0
   81.8
 
Total Long-Term Liabilities 4,976.8
   4,482.4
 
Commitments and Contingencies (Note 15) 


   


 
EQUITY:  
    
 
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value 1,563.1
   1,563.1
 
Retained earnings 1,012.8
   932.6
 
Accumulated other comprehensive income 4.8
   4.1
 
Total Equity 2,580.7
   2,499.8
 
TOTAL LIABILITIES AND EQUITY $8,305.1
   $8,120.5
 
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY METRO, INC.
Consolidated Statements of Cash Flows
      
Year Ended December 312019 2018 2017
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)
Net income$255.2
 $162.9
 $179.8
Adjustments to reconcile income to net cash from operating activities:     
Depreciation and amortization318.4
 281.3
 266.3
Amortization of nuclear fuel25.9
 26.2
 32.1
Amortization of deferred refueling outage12.8
 13.5
 18.3
Net deferred income taxes and credits(30.6) 48.6
 82.5
Allowance for equity funds used during construction(2.2) (1.4) (6.0)
Payments for asset retirement obligations(2.5) (13.1) (25.5)
Other0.3
 3.9
 7.5
Changes in working capital items:    

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

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EVERGY METRO, INC
Consolidated Statements of Changes in Equity
  
  Common stock shares Common Stock Retained earnings AOCI - Net gains (losses) on cash flow hedges Total Equity
  (millions, except share amounts)
Balance as of December 31, 20161
$1,563.1
$982.6
$(4.2)$2,541.5
Net income—
—
179.8
—
179.8
Cumulative effect of adoption of ASU 2016-09—
—
(0.7)—
(0.7)
Dividends declared on common stock—
—
(212.0)—
(212.0)
Derivative hedging activity, net of tax—
—
—
4.6
4.6
Balance as of December 31, 20171
1,563.1
949.7
0.4
2,513.2
Net income—
—
162.9
—
162.9
Dividends declared on common stock—
—
(180.0)—
(180.0)
Derivative hedging activity, net of tax—
—
—
3.7
3.7
Balance as of December 31, 20181
1,563.1
932.6
4.1
2,499.8
Net income—
—
255.2
—
255.2
Dividends declared on common stock—
—
(175.0)—
(175.0)
Derivative hedging activity, net of tax—
—
—
0.7
0.7
Balance as of December 31, 20191
$1,563.1
$1,012.8
$4.8
$2,580.7
The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.
EVERGY KANSAS CENTRAL, INC.
EVERGY METRO, INC.
Combined Notes to Consolidated Financial Statements
The notes to consolidated financial statements that follow are a combined presentation for Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc., all registrants under this filing.  The terms "Evergy," "Evergy Kansas Central," "Evergy Metro" and "Evergy Companies" are used throughout this report.  "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated.  "Evergy Kansas Central" refers to Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Evergy Kansas Central and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.  
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below. In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.
Evergy Kansas Central, Inc. (Evergy Kansas Central), formerly known as Westar Energy, Inc., is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has 1 active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South), formerly known as Kansas Gas and Electric Company.
Evergy Metro, Inc. (Evergy Metro), formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
Evergy Missouri West, Inc. (Evergy Missouri West), formerly known as KCP&L Greater Missouri Operations Company, is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
Evergy Transmission Company, LLC (Evergy Transmission Company), formerly known as GPE Transmission Holding Company, LLC, owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, Inc. (AEP). Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.
Evergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that provides transmission service in the Southwest Power Pool, Inc. (SPP). Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.

Since the rebranding in September 2019, Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West have been conducting business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 14,700 MWs of owned generating capacity and renewable purchased power 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.
Evergy was incorporated in 2017 as Monarch Energy Holding, Inc. (Monarch Energy), a wholly-owned subsidiary of Great Plains Energy Incorporated (Great Plains Energy). Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy and did not conduct any business activities other than those required for its

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formation and matters contemplated by the Amended and Restated Agreement and Plan of Merger, dated as of July 9, 2017, by and among Great Plains Energy, Evergy Kansas Central, Monarch Energy and King Energy, Inc. (King Energy), a wholly-owned subsidiary of Monarch Energy (Amended Merger Agreement). On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger. These merger transactions resulted in Evergy becoming the parent entity of Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West. See Note 2 for additional information regarding the merger.
Principles of Consolidation
Evergy Kansas Central was determined to be the accounting acquirer in the merger and thus, the predecessor of Evergy. Therefore, Evergy's consolidated financial statements reflect the results of operations of Evergy Kansas Central for 2017. Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results of operations from the date of the closing of the merger and thereafter.
Evergy Metro elected not to apply "push-down accounting" related to the merger, whereby the adjustments of assets and liabilities to fair value and the resulting goodwill would be recorded on the financial statements of the acquired subsidiary. These adjustments for Evergy Metro, as well as those related to the acquired assets and liabilities of Great Plains Energy and its other direct subsidiaries, are only reflected on Evergy's consolidated financial statements.
Each of Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated financial statements includes the accounts of their subsidiaries and variable interest entities (VIEs) of which they are the primary beneficiary. Undivided interests in jointly-owned generation facilities are included on a proportionate basis.  Intercompany transactions have been eliminated. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).
Use of Estimates
The process of preparing financial statements in conformity with generally accepted accounting principles (GAAP) requires the use of estimates and assumptions that affect the reported amounts of certain types of assets, liabilities, revenues and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts.
Cash and Cash Equivalents
Cash equivalents consist of highly liquid investments with original maturities of three months or less at acquisition.

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Fuel Inventory and Supplies
The Evergy Companies record fuel inventory and supplies at average cost. The following table separately states the balances for fuel inventory and supplies.
 December 31
 2019 2018
Evergy(millions)
Fuel inventory$146.4
 $168.9
Supplies335.2
 342.1
Fuel inventory and supplies$481.6
 $511.0
Evergy Kansas Central   
Fuel inventory$80.2
 $87.8
Supplies186.2
 189.0
Fuel inventory and supplies$266.4
 $276.8
Evergy Metro   
Fuel inventory$46.1
 $57.8
Supplies116.9
 119.8
Fuel inventory and supplies$163.0
 $177.6
 December 31
 2018 2017
Evergy(millions)
Fuel inventory$168.9
 $94.1
Supplies342.1
 199.5
Fuel inventory and supplies$511.0
 $293.6
Westar Energy   
Fuel inventory$87.8
 $94.1
Supplies189.0
 199.5
Fuel inventory and supplies$276.8
 $293.6
KCP&L (a)
   
Fuel inventory$57.8
 $71.0
Supplies119.8
 126.0
Fuel inventory and supplies$177.6
 $197.0
(a) KCP&L amounts are not included in consolidated Evergy at December 31, 2017.
Property, Plant and Equipment
The Evergy Companies record the value of property, plant and equipment, including that of variable interest entities (VIEs),VIEs, at cost. For plant, cost includes contracted services, direct labor and materials, indirect charges for engineering and supervision and an allowance for funds used during construction (AFUDC). AFUDC represents the allowed cost of capital used to finance utility construction activity. AFUDC equity funds are included as a non-cash item in other income and AFUDC borrowed funds are a reduction of interest expense. AFUDC is computed by applying a composite rate to qualified construction work in progress. The rates used to compute gross AFUDC are compounded semi-annually.
The amounts of the Evergy Companies' AFUDC for borrowed and equity funds are detailed in the following table.
2018 2017 20162019 2018 2017
Evergy(millions)(millions)
AFUDC borrowed funds$10.4
 $5.6
 $10.0
$14.5
 $10.4
 $5.6
AFUDC equity funds3.1
 2.0
 11.6
2.2
 3.1
 2.0
Total$13.5
 $7.6
 $21.6
$16.7
 $13.5
 $7.6
Westar Energy     
Evergy Kansas Central     
AFUDC borrowed funds$6.6
 $5.6
 $10.0
$7.5
 $6.6
 $5.6
AFUDC equity funds2.9
 2.0
 11.6
—
 2.9
 2.0
Total$9.5
 $7.6
 $21.6
$7.5
 $9.5
 $7.6
KCP&L(a)
     
Evergy Metro(a)
     
AFUDC borrowed funds$4.9
 $6.1
 $5.6
$4.3
 $4.9
 $6.1
AFUDC equity funds1.4
 6.0
 6.6
2.2
 1.4
 6.0
Total$6.3
 $12.1
 $12.2
$6.5
 $6.3
 $12.1
(a)KCP&LEvergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, June 4, 2018 through December 31, 2018.
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and thereafter.
The average rates used in the calculation of AFUDC are detailed in the following table.
 2019 2018 2017
Evergy Kansas Central3.0% 3.3% 2.3%
Evergy Metro4.6% 3.9% 4.9%
Evergy Missouri West3.7% 2.9% 1.9%


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 2018 2017 2016
Westar Energy3.3% 2.3% 4.2%
KCP&L3.9% 4.9% 5.7%
GMO2.9% 1.9% 1.6%

When property units are retired or otherwise disposed, the original cost, net of salvage, is charged to accumulated depreciation. Repair of property and replacement of items not considered to be units of property are expensed as incurred, except for planned refueling and maintenance outages at Wolf Creek Generating Station (Wolf Creek). As authorized by regulators, the expenseincremental maintenance cost incurred for such outages is deferred and amortized to expense ratably over the period between planned outages incremental maintenance cost incurred for such outages.
Depreciation and Amortization
Depreciation and amortization of utility plant other than nuclear fuel is computed using the straight-line method over the estimated lives of depreciable property based on rates approved by state regulatory authorities. Annual depreciation rates average approximately 3%. See Note 8 for more details. Nuclear fuel is amortized to fuel expense based on the quantity of heat produced during the generation of electricity. See Note 7 for more details.
The depreciable lives of Evergy's, Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's property, plant and equipment are detailed in the following table.
  Evergy  Evergy Kansas Central  Evergy Metro 
  (years) 
Generating facilities 8to87��  8to87   20to60 
Transmission facilities 15to94   36to94   15to70 
Distribution facilities 8to73   19to73   8to55 
Other 5to84   7to84   5to50 
  Evergy Westar Energy KCP&L
  (years)
Generating facilities 8to87 8to87 20to60
Transmission facilities 15to94 36to94 15to70
Distribution facilities 8to73 19to73 8to55
Other 5to84 7to84 5to50

Plant to be Retired, Net
When the Evergy Companies retire utility plant, the original cost, net of salvage, is charged to accumulated depreciation. However, when it becomes probable an asset will be retired significantly in advance of its original expected useful life and in the near term, the cost of the asset and related accumulated depreciation is recognized as a separate asset and a probable abandonment. If the asset is still in service, the net amount is classified as plant to be retired, net on the consolidated balance sheets. If the asset is no longer in service, the net amount is classified as a regulatory asset on the consolidated balance sheets.
The Evergy Companies must also assess the probability of full recovery of the remaining net book value of the abandonment. The net book value that may be retained as an asset on the balance sheet for the abandonment is dependent upon amounts that may be recovered through regulated rates, including any return. An impairment charge, if any, would equal the difference between the remaining net book value of the asset and the present value of the future revenues expected from the asset.
In June 2017, GMO announced the expectedEvergy Missouri West has determined that its November 2018 retirement of certain older generating units, including GMO's Sibley No. 3 Unit over the next several years. GMO determined that Sibley No. 3 Unit metmeets the criteria to be considered probable ofan abandonment. GMO retired Sibley Station, including the No. 3 Unit, in November 2018. As of December 31, 2018,2019, Evergy has classified the remaining Sibley No. 3 Unit net book value of $159.9$130.5 million as retired generation facilities within regulatory assets on its consolidated balance sheet. This regulatory asset is reduced by approximately $9 million of annual amortization expense which is an amount equal to the annual depreciation expense for the asset reflected in retail rates.
In October 2019, the Missouri Public Service Commission (MPSC) granted the request of certain intervenors for an Accounting Authority Order (AAO) that requires Evergy is currently allowedMissouri West to record a full recovery of and a fullregulatory liability for all revenues collected from customers for return on investment, non-fuel operations and maintenance costs, taxes including accumulated deferred income taxes and all other costs associated with Sibley No. 3 UnitStation following the station's retirement in rates andNovember 2018 for consideration in Evergy Missouri West's next rate case, which is expected to be completed no later than 2022. See Note 5 for additional information regarding the AAO.
Evergy Missouri West expects that the MPSC's decision in its next rate case regarding the AAO could impact the valuation of its regulatory asset for retired generation facilities but as of December 31, 2019, has concluded that no impairment is required as of December 31, 2018.based on the relevant facts and circumstances.

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Nuclear Plant Decommissioning Costs
Nuclear plant decommissioning cost estimates are based on either the immediate dismantlement method or the deferred dismantling method as determined by the KCCState Corporation Commission of the State of Kansas (KCC) and MPSC and include the costs of decontamination, dismantlement and site restoration. Based on these cost estimates, Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro each contribute to a tax-qualified trust fund to be used to decommission Wolf Creek. Related liabilities for decommissioning are included on Evergy's, Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's consolidated balance sheets in Asset Retirement Obligationsasset retirement obligations (AROs).
As a result of the authorized regulatory treatment and related regulatory accounting, differences between the decommissioning trust fund asset and the related ARO are recorded as a regulatory asset or liability. See Note 67 for discussion of AROs including those associated with nuclear plant decommissioning costs.
Regulatory Accounting
Accounting standards are applied that recognize the economic effects of rate regulation. Accordingly, regulatory assets and liabilities have been recorded when required by a regulatory order or based on regulatory precedent. See Note 5 for additional information concerning regulatory matters.
Cash Surrender Value of Life Insurance
Amounts related to corporate-owned life insurance (COLI) are recorded on the consolidated balance sheets in other long-terms assets and are detailed in the following table for Evergy. Substantially all of Evergy's COLI-related balances relate to Westar Energy'sEvergy Kansas Central's COLI activity.
  December 31
  2019 2018
Evergy (millions)
Cash surrender value of policies $1,370.0
 $1,441.7
Borrowings against policies (1,237.1) (1,306.9)
Corporate-owned life insurance, net $132.9
 $134.8
  December 31
  2018 2017
Evergy (millions)
Cash surrender value of policies $1,441.7
 $1,320.7
Borrowings against policies (1,306.9) (1,189.2)
Corporate-owned life insurance, net $134.8
 $131.5

Increases in cash surrender value and death benefits are recorded in other income in the Evergy Companies' consolidated statements of income and comprehensive income. Interest expense incurred on policy loans is offset against the policy income. Income from death benefits is highly variable from period to period.
Fair Value of Financial Instruments
The following methods and assumptions were used to estimate the fair value of the following financial instruments for which it was practicable to estimate that value.
Nuclear decommissioning trust fund - The Evergy Companies' nuclear decommissioning trust fund assets are recorded at fair value based on quoted market prices of the investments held by the fund and/or valuation models.
Pension plans - For financial reporting purposes, the market value of plan assets is the fair value.
Revenue Recognition
The Evergy Companies recognize revenue on the sale of electricity to customers over time as the service is provided in the amount they have the right to invoice. Revenues recorded include electric services provided but not yet billed by the Evergy Companies. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. The Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates. The Evergy Companies' unbilled revenue estimate is affected by factors including fluctuations in energy demand, weather, line losses and changes in the composition of customer classes. See Note 4 for the balance of unbilled receivables for each of Evergy, Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro as of December 31, 20182019 and 2017.2018.

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The Evergy Companies also collect sales taxes and franchise fees from customers concurrent with revenue-producing activities that are levied by state and local governments. These items are excluded from revenue, and
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thus are not reflected on the consolidated statements of income and comprehensive income for Evergy, Westar EnergyEvergy Kansas Central and KCP&L.Evergy Metro.
See Note 3 for additional details regarding revenue recognition from sales of electricity by the Evergy Companies.
Allowance for Doubtful Accounts
The Evergy Companies determine their allowance for doubtful accounts based on the age of their receivables. Receivables are charged off when they are deemed uncollectible, which is based on a number of factors including specific facts surrounding an account and management's judgment.
Property Gains and Losses
Net gains and losses from the sale of assets and businesses and from asset impairments are recorded in operating expenses.
Asset Impairments
Long-lived assets and finite-lived intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted expected future cash flows from an asset to be held and used is less than the carrying value of the asset, an asset impairment must be recognized in the financial statements. The amount of impairment recognized is the excess of the carrying value of the asset over its fair value.
Goodwill and indefinite lived intangible assets are tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. The annual test must be performed at the same time each year. Evergy's first impairment test for the $2,338.9 million of goodwill from the Great Plains Energy and Westar Energy merger will be conducted on May 1, 2019. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. See Note 6 for additional details on goodwill.
Income Taxes
Income taxes are accounted for using the asset/liability approach. Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized.
The Evergy Companies recognize tax benefits based on a "more-likely-than-not" recognition threshold. In addition, the Evergy Companies recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.
Evergy files a consolidated federal income tax return as well as unitary and combined income tax returns in several state jurisdictions with Kansas and Missouri being the most significant. Income taxes for consolidated or combined subsidiaries are allocated to the subsidiaries based on separate company computations of income or loss. Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's income tax provisions include taxes allocated based on their separate company's income or loss.
The Evergy Companies have established a net regulatory liability for future refunds to be made to customers for the over-collection of income taxes in rates. Tax credits are recognized in the year generated except for certain Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West investment tax credits that have been deferred and amortized over the remaining service lives of the related properties.

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Other Income (Expense), Net
The table below shows the detail of other expense for each of the Evergy Companies.
2018 2017 20162019 2018 2017
Evergy(millions)(millions)
Non-service cost component of net benefit cost$(47.8) $(20.0) $(20.6)$(55.6) $(47.8) $(20.0)
Other(30.9) (19.1) (18.0)(21.3) (30.9) (19.1)
Other expense$(78.7) $(39.1) $(38.6)$(76.9) $(78.7) $(39.1)
Westar Energy     
Evergy Kansas Central     
Non-service cost component of net benefit cost$(23.5) $(20.0) $(20.6)$(20.1) $(23.5) $(20.0)
Other(23.3) (19.1) (18.0)(20.0) (23.3) (19.1)
Other expense$(46.8) $(39.1) $(38.6)$(40.1) $(46.8) $(39.1)
KCP&L(a)
     
Evergy Metro(a)
     
Non-service cost component of net benefit cost$(25.9) $(42.7) $(37.2)$(20.9) $(25.9) $(42.7)
Other(5.0) (8.1) (7.6)(0.5) (5.0) (8.1)
Other expense$(30.9) $(50.8) $(44.8)$(21.4) $(30.9) $(50.8)
(a)KCP&LEvergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, June 4, 2018 through December 31, 2018.and thereafter.
Earnings Per Share
To compute basic earnings per share (EPS), Evergy divides net income attributable to Evergy, Inc. by the weighted average number of common shares outstanding. Diluted EPS includes the effect of issuable common shares resulting from restricted share units (RSUs), performance shares and restricted stock. Evergy computes the dilutive effects of potential issuances of common shares using the treasury stock method.
The following table reconciles Evergy's basic and diluted EPS.
 2019 2018 2017
Income(millions, except per share amounts)
Net income$685.6
 $546.0
 $336.5
Less: Net income attributable to noncontrolling interests15.7
 10.2
 12.6
Net income attributable to Evergy, Inc.$669.9
 $535.8
 $323.9
Common Shares Outstanding   
  
Weighted average number of common shares outstanding - basic239.5
 213.9
 142.5
Add: effect of dilutive securities0.4
 0.2
 0.1
Diluted average number of common shares outstanding239.9
 214.1
 142.6
Basic EPS$2.80
 $2.50
 $2.27
Diluted EPS$2.79
 $2.50
 $2.27

 2018 2017 2016
Income(millions, except per share amounts)
Net income$546.0
 $336.5
 $361.2
Less: Net income attributable to noncontrolling interests10.2
 12.6
 14.6
Net income attributable to Evergy, Inc.$535.8
 $323.9
 $346.6
Common Shares Outstanding   
  
Weighted average number of common shares outstanding - basic213.9
 142.5
 142.1
Add: effect of dilutive securities0.2
 0.1
 0.4
Diluted average number of common shares outstanding214.1
 142.6
 142.5
Basic and Diluted EPS$2.50
 $2.27
 $2.43
Anti-dilutive shares excluded from the computation of diluted EPS for 2019 were 785 RSUs. There were no0 anti-dilutive securities excluded from the computation of diluted EPS for 2018 2017 and 2016.2017.

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Supplemental Cash Flow Information
Year Ended December 31 2018 2017 2016 2019 2018 2017
Evergy (millions) (millions)
Cash paid for (received from):            
Interest on financing activities, net of amount capitalized $255.9
 $153.9
 $139.0
 $329.5
 $255.9
 $153.9
Interest on financing activities of VIEs 2.3
 3.1
 5.8
 1.6
 2.3
 3.1
Income taxes, net of refunds (0.9) (12.7) 13.1
 (5.2) (0.9) (12.7)
Non-cash investing transactions:            
Property, plant and equipment additions (reductions) (7.8) 158.8
 151.5
 186.0
 (7.8) 158.8
Deconsolidation of property, plant and equipment of VIE —
 (72.9) —
 —
 —
 (72.9)
Non-cash financing transactions:            
Issuance of stock for compensation and reinvested dividends 0.5
 5.1
 9.7
 (0.3) 0.5
 5.1
Deconsolidation of VIE —
 (83.1) —
 —
 —
 (83.1)
Assets acquired through capital leases 1.2
 4.8
 2.7
Year Ended December 31 2018 2017 2016 2019 2018 2017
Westar Energy (millions)
Evergy Kansas Central (millions)
Cash paid for (received from):            
Interest on financing activities, net of amount capitalized $155.3
 $153.9
 $139.0
 $143.0
 $155.3
 $153.9
Interest on financing activities of VIEs 2.3
 3.1
 5.8
 1.6
 2.3
 3.1
Income taxes, net of refunds 37.5
 (12.7) 13.1
 29.9
 37.5
 (12.7)
Non-cash investing transactions:            
Property, plant and equipment additions (reductions) (32.5) 158.8
 151.5
 92.1
 (32.5) 158.8
Deconsolidation of property, plant and equipment of VIE —
 (72.9) —
 —
 —
 (72.9)
Non-cash financing transactions:            
Issuance of stock for compensation and reinvested dividends —
 5.1
 9.7
 —
 —
 5.1
Deconsolidation of VIE —
 (83.1) —
 —
 —
 (83.1)
Assets acquired through capital leases 1.2
 4.8
 2.7
Year Ended December 31 2018 2017 2016 2019 2018 2017
KCP&L(a)
 (millions)
Evergy Metro(a)
 (millions)
Cash paid for (received from):            
Interest on financing activities, net of amount capitalized $129.4
 $128.0
 $127.0
 $118.4
 $129.4
 $128.0
Income taxes, net of refunds 31.2
 38.8
 (37.3) 77.0
 31.2
 38.8
Non-cash investing transactions:            
Property, plant and equipment additions 19.2
 36.6
 75.4
 80.7
 19.2
 36.6
(a)KCP&LEvergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, June 4, 2018, through December 31, 2018.and thereafter.
See Note 2 for the non-cash information related to the merger transaction, including the fair value of Great Plains Energy's assets acquired and liabilities assumed and the issuance of Evergy common stock.
Dividends Declared
In February 2019,2020, Evergy's Board of Directors (Evergy Board) declared a quarterly dividend of $0.475$0.505 per share on Evergy's common stock.  The common dividend is payable March 20, 20192020, to shareholders of record as of February 27, 2019March 9, 2020.
In February 2019, Westar Energy's Board2020, Evergy Kansas Central's and Evergy Metro's Boards of Directors each declared a cash dividenddividends payable to Evergy of $110.0$60.0 million, payable on March 19, 2019.2020.

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NewRecently Adopted Accounting Standards
Intangibles - Internal-Use Software
In August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for recording implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. An entity in a hosting arrangement that is a service contract will need to determine which project stage (that is, preliminary project stage, application development stage or post-implementation stage) an implementation activity relates. Costs for implementation activities in the application development stage are recorded as a prepaid asset depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are incurred. Costs that are recorded to a prepaid asset are to be expensed over the term of the hosting arrangement. The new guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The new guidance can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. The Evergy Companies early adopted ASU No. 2018-15 prospectively as of January 1, 2019. The adoption of ASU No. 2018-15 did not have a material impact on the Evergy Companies.

Compensation - Retirement Benefits
In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits, which requires an employer to disaggregate the service cost component from the other components of net benefit cost. The service cost component is to be reported in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The non-service cost components are to be reported separately from service costs and outside of a subtotal of income from operations. The amendments in this update allow only the service cost component to be eligible for capitalization as part of utility plant. The non-service cost components that are no longer eligible for capitalization as part of utility plant will be recorded as a regulatory asset. The new guidance is to be applied retrospectively for the presentation of service cost and non-service cost components in the income statement and prospectively for the capitalization of the service cost component and is effective for interim and annual periods beginning after December 15, 2017. The Evergy Companies adopted ASU No. 2017-07 on January 1, 2018, and accordingly have retrospectively adjusted prior periods. The Evergy Companies utilized the practical expedient that allows for the use of amounts disclosed in Note 9 for applying the retrospective presentation to the 2017 and 2016 consolidated statements of income and comprehensive income.
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The following table reflects the retrospective adjustments in the line items of Evergy's, Westar Energy's and KCP&L's consolidated statements of income and comprehensive income associated with the adoption of ASU No. 2017-07.
 2017 2016
 
As Previously Reported (b)
 
Effect of
Change
 As Reported 
As Previously Reported (b)
 
Effect of
Change
 As Reported
Evergy(millions)
Operating and maintenance
   expense
$583.5
 $(20.0) $563.5
 $607.8
 $(20.6) $587.2
Total operating expenses1,912.2
 (20.0) 1,892.2
 1,880.3
 (20.6) 1,859.7
Income from operations658.8
 20.0
 678.8
 681.8
 20.6
 702.4
Other expense(19.1) (20.0) (39.1) (18.0) (20.6) (38.6)
Total other income (expense), net(6.8) (20.0) (26.8) 19.1
 (20.6) (1.5)
Westar Energy    
      
Operating and maintenance
   expense
$583.5
 $(20.0) $563.5
 $607.8
 $(20.6) $587.2
Total operating expenses1,912.2
 (20.0) 1,892.2
 1,880.3
 (20.6) 1,859.7
Income from operations658.8
 20.0
 678.8
 681.8
 20.6
 702.4
Other expense(19.1) (20.0) (39.1) (18.0) (20.6) (38.6)
Total other income (expense), net(6.8) (20.0) (26.8) 19.1
 (20.6) (1.5)
KCP&L (a)
    
      
Operating and maintenance
   expense
$517.5
 $(42.7) $474.8
 $539.2
 $(37.2) $502.0
Total operating expenses1,447.0
 (42.7) 1,404.3
 1,393.3
 (37.2) 1,356.1
Income from operations443.7
 42.7
 486.4
 482.1
 37.2
 519.3
Other expense(8.1) (42.7) (50.8) (7.6) (37.2) (44.8)
Total other income (expense), net3.1
 (42.7) (39.6) 4.2
 (37.2) (33.0)
(a)KCP&L amounts are not included in consolidated Evergy for 2017 and 2016.
(b)Certain Evergy, Westar Energy and KCP&L as previously reported amounts have been adjusted to reflect reclassification adjustments made for comparative purposes as discussed further in Principles of Consolidation above and that have no impact on net income.
Statement of Cash Flows
In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Among other clarifications, the guidance requires that cash proceeds received from the settlement of COLI policies be classified as cash inflows from investing activities and that cash payments for premiums on COLI policies may be classified as cash outflows for investing activities, operating activities or a combination of both. Retrospective application is required. The Evergy Companies adopted the guidance effective January 1, 2018, which resulted in retrospective reclassification of cash proceeds of $2.8 million and $22.1 million from the settlement of COLI policies from cash inflows from operating activities to cash inflows from investing activities for 2017 and 2016, respectively, for Evergy and Westar Energy.  In addition, cash payments of $3.1 million and $3.4 million for premiums on COLI policies were reclassified from cash outflows used in operating activities to cash outflows used in investing activities for the same periods, respectively, for Evergy and Westar Energy. The adoption of ASU No. 2016-15 did not have a material impact on KCP&L.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, which requires that the statement of cash flows explains the change for the period of restricted cash and restricted cash equivalents along with cash and cash equivalents. The guidance requires a retrospective transition method and is effective for fiscal years beginning after December 15, 2017. The Evergy Companies adopted the guidance effective January 1, 2018. As a result, Evergy and Westar Energy adjusted amounts previously reported for cash and cash equivalents to
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include restricted cash, which resulted in an increase to beginning and ending cash, cash equivalents and restricted cash of $0.1 million for 2017 and 2016. The adoption of ASU No. 2016-18 did not have a material impact on KCP&L.
Leases
In February 2016, the FASB issued ASU No. 2016-02, Leases(Topic 842), which requires an entity that is a lessee to record a right-of-use asset and a lease liability for lease payments on the balance sheet for all leases with terms longer than 12 months.  Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement.  Lessor accounting remains largely unchanged. In January 2018, the FASB issued ASU No. 2018-01, Leases: Land Easement Practical Expedient for Transition to Topic 842, which permits entities to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’sentity's adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. In July 2018, the FASB issued ASU No. 2018-10, "CodificationCodification Improvements to Topic 842, Leases", which updates narrow aspects of the guidance issued in ASU No. 2016-02. Also in July 2018, the FASB issued ASU No. 2018-11, "Leases,Leases: Targeted Improvements", which provides an optional transition method that allows entities to initially apply the new standardTopic 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating prior periods. In December 2018, the FASB issued ASU No. 2018-20, "Leases:Leases: Narrow-Scope Improvements for Lessors", which is expected to reduce a lessor’slessor's implementation and ongoing costs associated with applying ASU No. 2016-02. In March 2019, the FASB issued ASU No. 2019-01, Leases: Codification Improvements, which clarifies certain lessor accounting and interim reporting requirements. ASU No. 2016-02 and the subsequent amendments are effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted, and requires a modified retrospective transition approach with an option to either adjust or not adjust comparative periods. 
The Evergy Companies adopted the new guidance on January 1, 2019, without adjusting comparative periods for all leases existing as of January 1, 2019, by electing the optional transition method permitted by ASU No. 2018-11. As a result, Evergy, Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro recorded an increase to assets and liabilities of approximately $110 million, $40 million and $80 million, respectively, as of January 1, 2019. The Evergy Companies do not expectKansas Central and Evergy Metro have certain lease transactions between them for which the impact ofrelated assets and liabilities are eliminated at consolidated Evergy. The adoption of the standard willTopic 842 did not have a material impact on theirthe Evergy Companies consolidated statements of income and comprehensive income. The Evergy Companies will include additional disclosures about its right-of-use assets, lease liabilitiesincome and lease expense inthere was no cumulative-effect adjustment recorded to the first quarter 2019 notes to financial statements.opening balance of retained earnings. The Evergy Companies also elected a practical expedient to forgo reassessing existing or expired contracts as leases to determine whether each is in scope of the new standardTopic 842 and to forgo reassessing lease classification for existing and expired leases.
Financial Instruments
In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which generally requires equity investments to be measured at fair value with changes in fair value recognized in net income. Under the new standard, equity securities are no longer to be classified as available-for-sale or trading securities. The guidance requires a modified retrospective transition method. This guidance is effective for fiscal years beginning after December 15, 2017; accordingly, the Evergy Companies adopted the new standard on January 1, 2018, without a material impact on their consolidated financial statements.
Revenue Recognition
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In August 2015, the FASB issued ASU No. 2015-14, deferring the effective date of ASU No. 2014-09 one year, from January 1, 2017, to January 1, 2018. The ASU replaced most existing revenue recognition guidance in GAAP when it became effective. The Evergy Companies adopted ASU No. 2014-09 and its related amendments (Accounting Standards Codification (ASC) 606) on January 1, 2018, using the modified retrospective transition method for all contracts not completed as of the date of adoption. Results for reporting periods beginning after January 1, 2018, are presented under ASC 606 while historical periods have not been adjusted and continue to be reported in accordance with the legacy guidance in ASC 605 - Revenue Recognition.
There was no cumulative effect adjustment to the opening balance of retained earnings in 2018 for the Evergy Companies as a result of the adoption of the new guidance. As a result of the adoption of ASC 606, operating
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revenues and taxes other than income taxes on KCP&L's statements of comprehensive income decreased $76.4 million for 2018. This impact was related to sales taxes and franchise fees collected from KCP&L's Missouri customers that were included in KCP&L's operating revenues and taxes other than income taxes on KCP&L's statements of comprehensive income prior to the adoption of ASC 606. See Note 3 for more information on revenue from contracts with customers.
2. MERGER OF GREAT PLAINS ENERGY AND WESTAR ENERGYEVERGY KANSAS CENTRAL
Description of Merger Transaction
On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement. As a result of the mergers, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Westar Energy,Evergy Kansas Central, with Westar EnergyEvergy Kansas Central surviving the merger. Following the completion of these mergers, Westar EnergyEvergy Kansas Central and the direct subsidiaries of Great Plains Energy, including KCP&LEvergy Metro and GMO,Evergy Missouri West, became wholly-owned subsidiaries of Evergy.
The merger was structured as a merger of equals in a tax-free exchange of shares that involved no premium paid or received with respect to either Great Plains Energy or Westar Energy.Evergy Kansas Central. As a result of the closing of the

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

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

Reductions of revenue related to customer bill credits and expenses related to charitable contributions and community support were incurred as a result of conditions in the MPSC and KCC merger orders and were recorded as liabilities in the amounts presented above following the consummation of the merger. Reductions of revenue for

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annual bill credits of $11.5 million for Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's Kansas electric retail customers are recognized ratably in the twelve monthtwelve-month period preceding their payment.
Voluntary severance and accelerated equity compensation represent costs related to payments for voluntary severance and change in control plans, as well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding Westar EnergyEvergy Kansas Central equity compensation awards.
Other transaction and transition costs include merger success fees and fees for other outside services incurred.
Reallocation and deferral of merger transition costs represents the net reallocation of incurred merger transition costs between Evergy, Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset for future recovery in accordance with the KCC and MPSC merger orders.
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Purchase Price
Based on an evaluation of the provisions of ASC 805, Business Combinations, Westar EnergyEvergy Kansas Central was determined to be the accounting acquirer in the merger. Pursuant to the Amended Merger Agreement, Great Plains Energy's common stock shares were exchanged for Evergy common stock shares at the fixed exchange rate of 0.5981. The total consideration transferred in the merger is based on the closing stock price of Westar EnergyEvergy Kansas Central on June 4, 2018, and is calculated as follows.
  (millions, except share amounts)
Great Plains Energy common stock shares outstanding as of June 4, 2018 215,800,074
Great Plains Energy restricted stock awards outstanding as of June 4, 2018 (204,825)
Great Plains Energy shares to be converted to Evergy shares 215,595,249
Exchange ratio 0.5981
Evergy common stock shares issued to Great Plains Energy shareholders 128,947,518
Closing price of Evergy Kansas Central common stock as of June 4, 2018 $54.00
Fair value of Evergy shares issued to Great Plains Energy shareholders $6,963.2
Fair value of Great Plains Energy's equity compensation awards 12.5
Total purchase price $6,975.7
  (millions, except share amounts)
Great Plains Energy common stock shares outstanding as of June 4, 2018 215,800,074
Great Plains Energy restricted stock awards outstanding as of June 4, 2018 (204,825)
Great Plains Energy shares to be converted to Evergy shares 215,595,249
Exchange ratio 0.5981
Evergy common stock shares issued to Great Plains Energy shareholders 128,947,518
Closing price of Westar Energy common stock as of June 4, 2018 $54.00
Fair value of Evergy shares issued to Great Plains Energy shareholders $6,963.2
Fair value of Great Plains Energy's equity compensation awards 12.5
Total purchase price $6,975.7


Great Plains Energy's equity compensation awards, including performance shares and restricted stock, were replaced by equivalent Evergy equity compensation awards subject to substantially the same terms and conditions upon the closing of the merger. In accordance with the accounting guidance in ASC 805, a portion of the fair value of these awards is attributable to the purchase price as it represents consideration transferred in the merger.
Purchase Price Allocation
The fair value of Great Plains Energy's assets acquired and liabilities assumed as of June 4, 2018, was determined based on significant estimates and assumptions that are judgmental in nature. Third-party valuation specialists were engaged to assist in the valuation of these assets and liabilities. The fair values of Great Plains Energy's assets acquired and liabilities assumed utilized for the purchase price allocation are preliminary to the extent that additional information is obtained about facts and circumstances that existed as of the acquisition date.
The significant assets and liabilities for which preliminary valuation amounts are reflectedrecorded at fair values as of the filing of this combined Form 10-Kmerger date include the fair value of acquired long-term debt, asset retirement obligations, pension and post-retirement plans, accumulated deferred income tax liabilities and certain other long-term assets and liabilities.
The majority of Great Plains Energy's operations arewere subject to the rate-setting authority of the MPSC, the KCC and Thethe Federal Energy Regulatory Commission (FERC) and arewere accounted for pursuant to GAAP, including the accounting guidance for regulated operations. The rate-setting and cost recovery provisions for Great Plains Energy's regulated operations provideprovided revenue derived from costs including a return on investment of assets and liabilities included in rate base. Except for the significant assets and liabilities for which valuation adjustments

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

  (millions)
Current assets $2,151.7
Property, plant and equipment, net 9,179.7
Goodwill 2,338.9
Other long-term assets, excluding goodwill 1,235.9
Total assets $14,906.2
Current liabilities 1,673.9
Long-term liabilities, excluding long-term debt 2,898.0
Long-term debt, net 3,358.6
Total liabilities $7,930.5
Total purchase price $6,975.7
The purchase price allocation in the table above reflects refinements made to the preliminary fair values of long-term liabilities, excluding long-term debt included in the Evergy Companies' combined 2018 annual report on Form 10-K. These refinements include adjustments associated with deferred income taxes that resulted in a decrease to goodwill of $2.3 million.
Impact of Merger
The impact of Great Plains Energy's subsidiaries on Evergy's revenues in the consolidated statement of comprehensive income for 2018 was an increase of $1,661.1 million. The impact of Great Plains Energy's subsidiaries on Evergy's net income attributable to Evergy in the consolidated statementsstatement of comprehensive income for 2018 was an increase of $236.2 million.
Evergy has incurred total merger-related costs, including reductions of revenue for customer bill credits, of $148.0 million for 2018 and $11.9 million for 2017.

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

Evergy, Westar EnergyEvergy Kansas Central and Great Plains Energy incurred non-recurring costs and a gain directly related to the merger that have been excluded in the pro forma earnings presented above. On an after-tax basis, these non-recurring merger-related costs and gain incurred by Evergy, Westar EnergyEvergy Kansas Central and Great Plains Energy included:
$74.7 million and $14.8 million in 2018 and 2017, respectively, of certain after-tax merger-related transition and transaction costs;
$44.4 million in 2018 of after-tax reductions in operating revenues related to one-time customer bill credits;
$278.0 million of after-tax financing charges in 2017 related to Great Plains Energy's previously contemplated acquisition of Westar Energy;Evergy Kansas Central; and
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$36.6 million and $7.3 million in 2018 and 2017, respectively, of after-tax mark-to-market gains on interest rate swaps for which cash settlement was contingent upon the consummation of the merger.
3. REVENUE
Evergy's, Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's revenues disaggregated by customer class are summarized in the following tables.
2018Evergy Westar Energy 
KCP&L(a)
Evergy2019 2018
Revenues(millions)(millions)
Residential$1,578.8
 $846.4
 $735.6
$1,908.1
 $1,578.8
Commercial1,356.4
 702.8
 794.8
1,781.6
 1,356.4
Industrial527.8
 396.4
 138.8
621.6
 527.8
Other retail30.6
 20.0
 10.4
47.1
 30.6
Total electric retail$3,493.6
 $1,965.6
 $1,679.6
$4,358.4
 $3,493.6
Wholesale404.4
 346.1
 53.5
327.5
 404.4
Transmission308.1
 288.9
 14.5
309.2
 308.1
Industrial steam and other17.9
 6.0
 4.4
24.5
 17.9
Total revenue from contracts with customers$4,224.0
 $2,606.6
 $1,752.0
$5,019.6
 $4,224.0
Other51.9
 8.3
 71.1
128.2
 51.9
Operating revenues$4,275.9
 $2,614.9
 $1,823.1
$5,147.8
 $4,275.9

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

Evergy Metro(a)
2019 2018
Revenues(millions)
Residential$712.4
 $735.6
Commercial786.1
 794.8
Industrial136.9
 138.8
Other retail16.3
 10.4
Total electric retail$1,651.7
 $1,679.6
Wholesale70.9
 53.5
Transmission17.5
 14.5
Other2.8
 4.4
Total revenue from contracts with customers$1,742.9
 $1,752.0
Other63.6
 71.1
Operating revenues$1,806.5
 $1,823.1
(a) KCP&LEvergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, June 4, 2018, through December 31, 2018.and thereafter.


Retail Revenues
The Evergy Companies' retail revenues are generated by the regulated sale of electricity to their residential, commercial and industrial customers within their franchised service territories. The Evergy Companies recognize revenue on the sale of electricity to their customers over time as the service is provided in the amount they have a right to invoice. Retail customers are billed on a monthly basis at the tariff rates approved by the KCC and MPSC based on customer kWh usage.
Revenues recorded include electric services provided but not yet billed by the Evergy Companies. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. The Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates.
The Evergy Companies also collect sales taxes and franchise fees from customers concurrent with revenue-producing activities that are levied by state and local governments. These items are excluded from revenue, and thus not reflected on the statements of income and comprehensive income, for Evergy, Westar EnergyEvergy Kansas Central and KCP&L.Evergy Metro. Prior to the adoption of ASC 606 on January 1, 2018, KCP&LEvergy Metro recorded sales taxes and franchise fees collected from its Missouri customers gross on KCP&L'sEvergy Metro's statements of comprehensive income within operating revenues and taxes other than income taxes.

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Wholesale Revenues
The Evergy Companies' wholesale revenues are generated by the sale of wholesale power and capacity in circumstances when the power that the Evergy Companies generate is not required for customers in their service territory. These sales primarily occur within the SPP Integrated Marketplace. The Evergy Companies also purchase power from the SPP Integrated Marketplace and record sale and purchase activity on a net basis in wholesale revenue or fuel and purchased power expense. In addition, the Evergy Companies sell wholesale power and capacity through bilateral contracts to other counterparties, such as electric cooperatives, municipalities and other electric utilities.
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For both wholesale sales to the SPP Integrated Marketplace and through bilateral contracts, the Evergy Companies recognize revenue on the sale of wholesale electricity to their customers over time as the service is provided in the amount they have a right to invoice.
Wholesale sales within the SPP Integrated Marketplace are billed weekly based on the fixed transaction price determined by the market at the time of the sale and the MWh quantity purchased. Wholesale sales from bilateral contracts are billed monthly based on the contractually determined transaction price and the kWh quantity purchased.
Transmission Revenues
The Evergy Companies' transmission revenues are generated by the use of their transmission networks by the SPP. To enable optimal use of the diverse generating resources in the SPP region, the Evergy Companies, as well as other transmission owners, allow the SPP to access and operate their transmission networks. As new transmission lines are constructed, they are included in the transmission network available to the SPP. In exchange for providing access, the SPP pays the Evergy Companies consideration determined by formula rates approved by FERC, which include the cost to construct and maintain the transmission lines and a return on investment. The price for access to the Evergy Companies' transmission networks are updated annually based on projected costs. Projections are updated to actual costs and the difference is included in subsequent year's prices.
The Evergy Companies have different treatment for their legacy transmission facilities within the SPP, which results in different levels of transmission revenue being received from the SPP. Westar Energy'sEvergy Kansas Central's transmission revenues from SPP include amounts that Westar EnergyEvergy Kansas Central pays to the SPP on behalf of its retail electric customers for the use of Westar Energy'sEvergy Kansas Central's legacy transmission facilities. These transmission revenues are mostly offset by SPP network transmission cost expense that Westar EnergyEvergy Kansas Central pays on behalf of its retail customers. KCP&LEvergy Metro and GMOEvergy Missouri West do not pay the SPP for their retail customers’ use of the KCP&LEvergy Metro and GMOEvergy Missouri West legacy transmission facilities and correspondingly, their transmission revenues also do not reflect the associated transmission revenue from the SPP.
The Evergy Companies recognize revenue on the sale of transmission service to their customers over time as the service is provided in the amount they have a right to invoice. Transmission service to the SPP is billed monthly based on a fixed transaction price determined by FERC formula transmission rates along with other SPP-specific charges and the MW quantity purchased.
Industrial Steam and Other Revenues
Evergy's industrial steam and other revenues are primarily generated by the regulated sale of industrial steam to GMO'sEvergy Missouri West's steam customers. Evergy recognizes revenue on the sale of industrial steam to its customers over time as the service is provided in the amount that it has the right to invoice. Steam customers are billed on a monthly basis at the tariff rate approved by the MPSC based on customer MMBtu usage.
Optional Exemption
Evergy, Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro do not disclose the value of unsatisfied performance obligations on certain bilateral wholesale contracts with an original expected duration of greater than one year for which they recognize revenue in the amount they have the right to invoice.

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

 December 31
  2018  2017 
Evergy (millions) 
Customer accounts receivable - billed $16.7
  $165.4
 
Customer accounts receivable - unbilled 91.2
  76.6
 
Other receivables 95.0
  55.4
 
Allowance for doubtful accounts (9.2)  (6.7) 
Total $193.7
  $290.7
 
Westar Energy   
Customer accounts receivable - billed $—
  $165.4
 
Customer accounts receivable - unbilled 16.6
  76.6
 
Other receivables 71.6
  55.4
 
Allowance for doubtful accounts (3.9)  (6.7) 
Total $84.3
  $290.7
 
KCP&L (a)
  
   
 
Customer accounts receivable - billed $7.8
  $1.6
 
Customer accounts receivable - unbilled 42.9
  67.6
 
Other receivables 15.8
  39.3
 
Allowance for doubtful accounts (3.8)  (2.2) 
Total $62.7
  $106.3
 
(a) KCP&L amounts are not included in consolidatedEvergy's, Evergy as of December 31, 2017.

Evergy's, Westar Energy'sKansas Central's and KCP&L'sEvergy Metro's other receivables at December 31, 20182019 and 2017,2018, consisted primarily of receivables from partners in jointly-owned electric utility plants, and wholesale sales receivables.receivables and certain receivables related to alternative revenue programs. As of December 31, 2019, other receivables for Evergy, Evergy Kansas Central and Evergy Metro included receivables from contracts with customers of $42.0 million, $37.7 million and $1.2 million, respectively. As of December 31, 2018, other receivables for Evergy, Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro included receivables from contracts with customers of $65.8 million, $55.9 million and $5.5 million, respectively.
The Evergy Companies recorded bad debt expense related to contracts with customers as summarized in the following table.
 2018 2017 2016
 (millions)
Evergy$20.2
 $10.3
 $11.4
Westar Energy8.5
 10.3
 11.4
KCP&L (a)
13.1
 7.6
 6.3
 2019 2018 2017
 (millions)
Evergy$27.3
 $20.2
 $10.3
Evergy Kansas Central7.3
 8.5
 10.3
Evergy Metro (a)
13.7
 13.1
 7.6
(a) KCP&LEvergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, June 4, 2018, through December 31, 2018.and thereafter.
Sale of Accounts Receivable
Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West sell an undivided percentage ownership interest in their retail electric and certain other accounts receivable to independent outside investors. These sales of the undivided percentage ownership interests in accounts receivable to independent outside investors are accounted for as secured borrowings with accounts receivable pledged as collateral and a corresponding short-term collateralized note payable recognized on the balance sheets.  At December 31, 2019 and 2018,, Evergy's accounts receivable pledged as collateral and the corresponding short-term collateralized note payable were $339.0 million and $365.0 million.million, respectively. At December 31, 2019 and 2018, Westar Energy'sEvergy Kansas Central's accounts receivable pledged as collateral and the corresponding short-term collateralized note payable were $171.0 million and $185.0 million. million, respectively.

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At December 31, 2019 and 2018, and 2017, KCP&L'sEvergy Metro's accounts receivable pledged as collateral and the corresponding short-term collateralized note payable were $118.0 million and $130.0 million.million, respectively.
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Westar Energy'sEach receivable sale facility expires in September 2019 and2020. Evergy Kansas Central's facility allows for $185.0 million in aggregate outstanding principal amount of borrowings from mid-Decembermid-October through mid-January, $125.0 million from mid January through mid-February, $185.0 million from mid-February to mid-Julymid-June and then $200.0 million from mid-Julymid-June through the expiration date of the facility. KCP&L's receivable saleEvergy Metro's facility expires in September 2019 and allows for $130.0 million in aggregate outstanding principal amount of borrowings at any time. GMO's receivable saleEvergy Missouri West's facility expires in September 2019 and allows for $50.0 million in aggregate outstanding principal amount of borrowings from mid-November through mid-June and then $65.0 million from mid-June through the expiration date of the facility.
5. RATE MATTERS AND REGULATION
KCC Proceedings
Westar Energy 2018Evergy Kansas Central 2019 Transmission Delivery Charge (TDC)
In March 2018,2019, the KCC issued an order adjusting Westar Energy'sEvergy Kansas Central's retail prices to include updated transmission costs as reflected in the FERC transmission formula rate (TFR). The new prices were effective in April 20182019 and are expected to increase Westar Energy'sdecrease Evergy Kansas Central's annual retail revenues by $31.5$7.7 million.
Evergy Metro 2019 TDC
In August 2018, Westar Energy filed an updated Transmission Delivery Charge (TDC) tariff with the KCC to reflect the reduction in revenue requirement that occurred as a result of the Tax Cuts and Jobs Act (TCJA). The updated filing requested new prices decreasing Westar Energy's annual retail revenues by approximately $20 million. In October 2018,April 2019, the KCC issued an order approvingadjusting Evergy Metro's retail prices to include updated transmission costs as reflected in the FERC TFR. The new prices were effective in May 2019 and are expected to decrease Evergy Metro's annual retail revenues by $8.3 million.
Evergy Kansas Central Fuel Recovery Mechanism Recovery of 8% of Jeffrey Energy Center (JEC)
As part of the non-unanimous stipulation and agreement approved by the KCC in September 2018 in Evergy Kansas Central's 2018 rate case, it was agreed that in the event that Evergy Kansas Central purchased the 8% ownership interest in JEC that it had historically leased from a trust it would be entitled to file a request with the new prices effective October 30, 2018.
Westar EnergyKCC to recover operating and maintenance and capital costs associated with the 8% ownership through its fuel recovery mechanism as these amounts were not reflected in Evergy Kansas Central's rates established as part of the 2018 Rate Case Proceedingsrate case.
In February 2018, Westar Energythe first quarter of 2019, Evergy Kansas Central entered into an agreement with the trust to extend its lease of the 8% interest in JEC from the previous expiration date of January 2019 to August 2019 and to then purchase the 8% ownership interest from the trust at the time the lease expired. Pursuant to the agreement, Evergy Kansas Central's purchase of the 8% ownership interest of JEC closed in August 2019.
In March 2019, Evergy Kansas Central filed an application with the KCC to request a two-step change in rates, a decrease to retail revenues of approximately $2 million in September 2018 followed by an increase in retail revenues of approximately $54 million in February 2019, with a return on equity of 9.85% and a rate-making equity ratio of 51.6%. The request reflects costs associated with the completion of the Western Plains Wind Farm, the expiration of wholesale contracts currently reflected in retail prices as offsets to retail cost of service, the expiration of production tax credits from prior wind investments and an updated depreciation study, partially offset by the impact of the TCJA and a portion of the savings from the merger with Great Plains Energy.
In July 2018, Westar Energy, the KCC staff and several other intervenors in the case reached a non-unanimous stipulation and agreement to settle all outstanding issues in the case. The stipulation and agreement provides for a decrease to retail revenues of $66.0 million, before rebasing property tax expense, with a return on equity of 9.3%, a rate-making equity ratio of 51.46% and does not include a second step revenue requirement change as included in Westar Energy's initial application. The stipulation and agreement also provides for an approximately $16 million increase associated with rebasing property tax expense, an approximately $46 million increase in depreciation expense, allows for the recovery of an approximately $41 million wholesale contract that expires in 2019 through Westar Energy'sits fuel recovery mechanism of deferred lease expense and reflects customer benefits relatedoperating and maintenance expense incurred during the lease extension and future operating and maintenance expense subsequent to the impactspurchase of the TCJA, including a one-time bill credit of approximately $50 million, which was provided to customers following the conclusion of the rate case.
8% ownership interest in JEC. In September 2018,2019, the KCC issued an order approvingfinding that the non-unanimous stipulationlease extension and agreement.subsequent purchase of the 8% ownership interest by Evergy Kansas Central were not prudent and disallowed the recovery from retail customers of all associated capital and operating costs that were incurred during the lease extension and will be incurred in the future. The rates established byKCC order also provided that Evergy Kansas Central be allowed to retain any wholesale electricity sales associated with the 8% ownership interest of JEC.
As a result of the KCC order took effect onin September 27, 2018.2019, Evergy and Evergy Kansas Central recorded an $8.4 million pre-tax loss to operating and maintenance expense in their consolidated statements of income and comprehensive income in 2019 associated with the write-off of a regulatory asset for the deferred lease expense and other operating expenses.
KCP&L 2018 Rate Case ProceedingsEvergy Kansas Central and Evergy Metro Earnings Review and Sharing Plan (ERSP)
In May 2018, KCP&L filed an applicationAs part of their merger settlement agreement with the KCC, Evergy Kansas Central and Evergy Metro agreed to requestparticipate in an increaseERSP for the years 2019 through 2022. Under the ERSP, Evergy Kansas Central's and Evergy Metro's Kansas jurisdiction are required to its retail revenuesrefund to customers 50% of $26.2 million before rebasing property tax expense, with a return on equityannual earnings in excess of 9.85% and a rate-making equity ratio of 49.8%. The request reflects the impact of the TCJA and increases in infrastructure investment costs. KCP&L also requested an additional $6.7 million increase associated with rebasing property tax expense.their authorized

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In October 2018, KCP&L, the KCC staff and other intervenors reached a unanimous settlement agreement to settle all outstanding issues in the case. The settlement agreement provides for a decrease to retail revenues of $3.9 million, a return on equity of 9.3%, a rate-making equity ratio of 49.09% and a one-time bill credit of $36.9 million for customer benefits related to the impactsextent the excess earnings exceed the amount of Evergy Kansas Central's and Evergy Metro's annual merger bill credits for the TCJA.year being measured.
As of December 31, 2019, Evergy Kansas Central and Evergy Metro estimate their 2019 annual earnings will not result in a significant refund obligation. Evergy Kansas Central and Evergy Metro expect to file their 2019 earnings calculations with the KCC in March 2020. The final refund obligation, if any, will be decided by the KCC and could vary from the current estimate.
MPSC Proceedings
Evergy Missouri West Other Proceedings
In December 2018, KCC issued an order approving the unanimous settlement agreement. The rates established byOffice of the order took effect on December 20, 2018.
MPSC Proceedings
KCP&L 2018 Rate Case Proceedings
In January 2018, KCP&LPublic Counsel (OPC) and the Midwest Energy Consumers Group (MECG) filed an applicationa petition with the MPSC requesting an AAO that would require Evergy Missouri West to request an increase to its retailrecord a regulatory liability for all revenues of $8.9 million before rebasing fuel and purchased power expense, with acollected from customers for return on equity of 9.85%investment, non-fuel operations and a rate-making equity ratio of 50.03%. The request reflects the impact of the TCJAmaintenance costs, taxes including accumulated deferred income taxes, and increases in infrastructure investmentall other costs transmission related costs and property tax costs. KCP&L also requested an additional $7.5 million increase associated with rebasing fuel and purchased power expense.
In September 2018, KCP&L, MPSC staff and other intervenorsSibley Station following the station’s retirement in the case reached several non-unanimous stipulations and agreements to settle all outstanding issues in the case. The stipulations and agreements provide for a decrease to retail revenues of $21.1 million and a one-time customer benefit of $38.7 million (on an annualized basis) related to the impact of the TCJA, which will be offset against existing KCP&L regulatory assets. The final amount of the one-time customer benefit related to the impact of the TCJA was $36.4 million, as its calculation was dependent on the effective date of new rates.November 2018.
In October 2018,2019, the MPSC issuedgranted OPC's and MECG's request for an order approvingAAO and required Evergy Missouri West to record to a regulatory liability the non-unanimous stipulations and agreements. The rates established byrevenues discussed above for consideration in Evergy Missouri West's next rate case, which is expected to be completed no later than 2022. Depending on the order took effect onMPSC's decision in this next rate case, Evergy Missouri West could be required to refund to customers all or a portion of amounts collected in revenue for Sibley Station since December 6, 2018.2018 or, alternatively, could be required to make no refunds.
GMO 2018 Rate Case Proceedings
In January 2018, GMO filed an application withAs a result of the MPSC order, Evergy has recorded a regulatory liability of $10.2 million as of December 31, 2019 for the estimated amount of revenues that Evergy Missouri West 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 request a decreasedefer such amounts as collected from customers until new rates become effective in Evergy Missouri West's next rate case.
The accrual for this estimated amount does not include certain revenues collected related to its retailSibley Station that Evergy has determined to not be probable of refund in the next rate case based on the relevant facts and circumstances. While Evergy has determined these additional revenues to not be probable of $2.4refund, the ultimate resolution of this matter in Evergy Missouri West's next rate case is uncertain and could result in an estimated loss of up to approximately $12 million before rebasing fuel and purchased power expense, with a return on equity of 9.85% and a rate-making equity ratio of 54.4%. The request reflects the impactin excess of the TCJAamount accrued per year until Evergy Missouri West's new rates become effective. Evergy's regulatory liability for probable refunds as of December 31, 2019 and increasesestimated loss in infrastructure investment costs and transmission related costs. GMO also requested a $21.7 million increase associated with rebasing fuel and purchased power expense.
In September 2018, GMO, MPSC staff and other intervenors in the case reached several non-unanimous stipulations and agreements to settle all outstanding issues in the case. The stipulations and agreements provide for a decrease to retail revenues of $24.0 million and a one-time bill credit of $29.3 million (on an annualized basis) for customer benefits related to the impactsexcess of the TCJA. The final amount accrued represent estimates that could change significantly based on ongoing developments including as a result of an appeal of the one-time customer bill credit relatedMPSC order, decisions in other regulatory proceedings that establish precedent applicable to the impactthis matter and positions of the TCJA was $27.4 million, as its calculation was dependentparties on the effective date of new rates.
In October 2018, the MPSC issued an order approving the non-unanimous stipulations and agreements. The rates established by the order took effect on December 6, 2018.this issue in a future Evergy Missouri West rate case.
FERC Proceedings
In October of each year, Westar Energy postsEvergy Kansas Central and Evergy Metro post an updated TFR that includes projected transmission capital expenditures and operating costs for the following year. This rate providesis the basismost material and significant component in the retail rate calculation for Westar Energy'sEvergy Kansas Central's and Evergy Metro's annual request with the KCC to adjust retail prices to include updated transmission costs. costs through the TDC.

Evergy Kansas Central TFR
In the most recent three years, the updated TFR was expected to adjust Westar Energy'sEvergy Kansas Central's annual transmission revenues by approximately:
$6.8 million increase effective in January 2020;
•
$11.2 million decrease effective in January 2019; and
•
$2.3 million increase effective in January 2018.

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Evergy Metro TFR
In the most recent three years, the updated TFR was expected to adjust Evergy Metro's annual transmission revenues by approximately:
•
$1.7 million decrease effective in January 2020;
$11.22.8 million decrease effective in January 2019;
and
$2.33.7 million increase effective in January 2018 ($25.5 million increase offset by $23.2 million decrease from reduction in federal corporate income tax rate); and
2018.
$29.6 million increase effective in January 2017.
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Regulatory Assets and Liabilities
The Evergy Companies have recorded assets and liabilities on their consolidated balance sheets resulting from the effects of the ratemaking process, which would not otherwise be recorded if they were not regulated. Regulatory assets represent incurred costs that are probable of recovery from future revenues. Regulatory liabilities represent future reductions in revenues or refunds to customers.
Management regularly assesses whether regulatory assets and liabilities are probable of future recovery or refund by considering factors such as decisions by the MPSC, KCC or FERC in Westar Energy's, KCP&L'sEvergy Kansas Central's, Evergy Metro's and GMO'sEvergy Missouri West's rate case filings; decisions in other regulatory proceedings, including decisions related to other companies that establish precedent on matters applicable to the Evergy Companies; and changes in laws and regulations. If recovery or refund of regulatory assets or liabilities is not approved by regulators or is no longer deemed probable, these regulatory assets or liabilities are recognized in the current period results of operations. The Evergy Companies continued ability to meet the criteria for recording regulatory assets and liabilities may be affected in the future by restructuring and deregulation in the electric industry or changes in accounting rules. In the event that the criteria no longer applied to any or all of the Evergy Companies' operations, the related regulatory assets and liabilities would be written off unless an appropriate regulatory recovery mechanism were provided. Additionally, these factors could result in an impairment on utility plant assets.

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

823.7

559.8

2,061.8

797.5

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

$730.4

$464.4

$1,757.9

$700.4

$495.2

  December 31
  2018 2017
  Evergy Westar Energy KCP&L Evergy Westar Energy 
KCP&L(a)
Regulatory Assets (millions)
Pension and post-retirement costs $808.2
 $343.7
 $361.5
 $393.9
 $393.9
 $379.7
Debt reacquisition costs 113.5
 104.1
 8.2
 109.2
 109.2
 8.7
Debt fair value adjustment 134.5
 —
 —
 —
 —
 —
Asset retirement obligations fair value
adjustment		 111.4
 —
 —
 —
 —
 —
Depreciation 58.0
 58.0
 —
 60.6
 60.6
 —
Cost of removal 102.4
 65.7
 36.7
 30.8
 30.8
 30.3
Asset retirement obligations 171.9
 49.5
 91.6
 42.7
 42.7
 94.3
Analog meter unrecovered investment 35.6
 35.6
 —
 31.5
 31.5
 —
Treasury yield hedges 23.7
 23.7
 —
 24.8
 24.8
 —
Iatan No. 1 and common facilities 7.4
 —
 2.9
 —
 —
 12.9
Iatan No. 2 construction accounting costs 26.8
 —
 13.5
 —
 —
 25.0
Kansas property tax surcharge 33.1
 23.7
 9.4
 17.4
 17.4
 6.6
Disallowed plant costs 15.0
 15.0
 —
 15.2
 15.2
 —
La Cygne environmental costs 14.8
 12.2
 2.6
 13.3
 13.3
 2.7
Deferred customer programs 19.9
 7.0
 8.0
 8.1
 8.1
 40.9
Fuel recovery mechanisms 91.2
 7.1
 41.7
 20.7
 20.7
 61.7
Solar rebates 45.2
 —
 13.9
 —
 —
 22.6
Transmission delivery charge 0.8
 —
 0.8
 —
 —
 3.2
Wolf Creek outage 21.8
 10.9
 10.9
 7.0
 7.0
 6.8
Pension and other post-retirement benefit
non-service costs		 13.6
 5.2
 4.8
 —
 —
 —
Retired generation facilities 159.9
 —
 —
 —
 —
 —
Merger transition costs 47.0
 22.6
 17.3
 —
 —
 —
Other regulatory assets 6.1
 13.5
 2.3
 9.7
 9.7
 3.3
Total 2,061.8

797.5

626.1

784.9

784.9

698.7
Less: current portion (303.9) (97.1) (130.9) (99.5) (99.5) (153.6)
Total noncurrent regulatory assets $1,757.9

$700.4

$495.2

$685.4

$685.4

$545.1
(a)KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.
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  December 31
  2019 2018
  Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Regulatory Liabilities (millions)
Taxes refundable through future rates $1,656.5
 $856.4
 $568.9
 $1,703.6
 $853.2
 $609.2
Deferred regulatory gain from sale
leaseback		 53.6
 53.6
 —
 59.1
 59.1
 —
Emission allowances 50.1
 —
 50.1
 54.1
 —
 54.1
Nuclear decommissioning 267.3
 116.5
 150.8
 188.2
 84.5
 103.7
Pension and post-retirement costs 59.3
 31.5
 20.3
 53.4
 28.3
 25.1
Jurisdictional allowance for funds used
during construction		 28.7
 28.7
 —
 30.3
 30.3
 —
La Cygne leasehold dismantling costs 29.6
 29.6
 —
 29.5
 29.5
 —
Cost of removal 49.1
 —
 —
 48.1
 —
 —
Kansas tax credits 17.0
 17.0
 —
 16.5
 16.5
 —
Purchase power agreement 7.4
 7.4
 —
 8.8
 8.8
 —
Merger customer credits —
 —
 —
 7.5
 —
 7.5
Fuel recovery mechanisms 34.1
 30.2
 —
 —
 —
 —
Sibley AAO 10.2
 —
 —
 —
 —
 —
Refund of tax reform benefits —
 —
 —
 70.9
 7.2
 36.3
Other regulatory liabilities 48.7
 3.9
 13.5
 59.0
 3.9
 11.2
Total 2,311.6
 1,174.8
 803.6
 2,329.0
 1,121.3
 847.1
Less: current portion (63.3) (42.3) (11.4) (110.2) (19.5) (52.8)
Total noncurrent regulatory liabilities $2,248.3
 $1,132.5
 $792.2
 $2,218.8
 $1,101.8
 $794.3
  December 31
  2018 2017
  Evergy Westar Energy KCP&L Evergy Westar Energy 
KCP&L(a)
Regulatory Liabilities (millions)
Taxes refundable through future rates $1,703.6
 $853.2
 $609.2
 $845.2
 $845.2
 $574.0
Deferred regulatory gain from sale
leaseback		 59.1
 59.1
 —
 64.6
 64.6
 —
Emission allowances 54.1
 —
 54.1
 —
 —
 58.1
Nuclear decommissioning 188.2
 84.5
 103.7
 55.5
 55.5
 126.0
Pension and post-retirement costs 53.4
 28.3
 25.1
 48.4
 48.4
 12.0
Jurisdictional allowance for funds used
during construction		 30.3
 30.3
 —
 31.7
 31.7
 —
La Cygne leasehold dismantling costs 29.5
 29.5
 —
 29.6
 29.6
 —
Cost of removal 48.1
 —
 —
 —
 —
 —
Kansas tax credits 16.5
 16.5
 —
 16.8
 16.8
 —
Purchase power agreement 8.8
 8.8
 —
 8.8
 8.8
 —
Merger customer credits 7.5
 —
 7.5
 —
 —
 —
Refund of tax reform benefits 70.9
 7.2
 36.3
 —
 —
 —
Other regulatory liabilities 59.0
 3.9
 11.2
 5.0
 5.0
 9.1
Total 2,329.0
 1,121.3
 847.1
 1,105.6
 1,105.6
 779.2
Less: current portion (110.2) (19.5) (52.8) (11.6) (11.6) (8.3)
Total noncurrent regulatory liabilities $2,218.8
 $1,101.8
 $794.3
 $1,094.0
 $1,094.0
 $770.9
(a)KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.
The following summarizes the nature and period of recovery for each of the regulatory assets listed in the table above.
Pension and post-retirement costs: Represents unrecognized gains and losses and prior service and transition costs that will be recognized in future net periodic pension and post-retirement costs, pension settlements amortized over various periods and financial and regulatory accounting method differences that will be eliminated over the life of the pension plans. Of these amounts, $764.5$735.4 million, $343.7$359.9 million and $353.6$312.9 million for Evergy, Westar EnergyEvergy Kansas Central and KCP&L,Evergy Metro, respectively, are not included in rate base and are amortized over various periods. Additionally, $288.4 million, ($23.6) million and $131.1 million for Evergy, Evergy Kansas Central and Evergy Metro, respectively, represent differences between pension and post-retirement costs under GAAP and pension and post-retirement costs for ratemaking that will be recovered or refunded in future rates and differences in accumulated unrecognized gains and losses and prior service costs between Evergy and Evergy Metro due to Evergy Metro electing not to apply "push-down accounting" related to the merger.
Debt reacquisition costs: Includes costs incurred to reacquire and refinance debt. These costs are amortized over the term of the new debt or the remaining lives of the old debt issuances if no new debt was issued and are not included in rate base.
Debt fair value adjustment: Represents purchase accounting adjustments recorded to state the carrying value of KCP&LEvergy Metro and GMOEvergy Missouri West long-term debt at fair value in connection with the merger. Amount is amortized over the life of the related debt and is not included in rate base.
Asset retirement obligations fair value adjustment: Represents purchase accounting adjustments recorded to state the carrying value of KCP&LEvergy Metro and GMOEvergy Missouri West AROs at fair value in connection with the merger. Amount is amortized over the life of the related plant and is not included in rate base.

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Depreciation: Represents the difference between regulatory depreciation expense and depreciation expense recorded for financial reporting purposes. These assets are included in rate base and the difference is amortized over the life of the related plant.
Cost of removal: Represents amounts spent, but not yet collected, to dispose of plant assets. This asset will decrease as removal costs are collected in rates and is not included in rate base.
Asset retirement obligations: Represents amounts associated with AROs as discussed further in Note 6.7. These amounts are recovered over the life of the related plant and are not included in rate base.
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Analog meter unrecovered investment: Represents the deferral of unrecovered investment of retired analog meters. Of this amount, $27.3$21.6 million is not included in rate base for Evergy and Westar EnergyEvergy Kansas Central and is being amortized over a five-year period.
Treasury yield hedges: Represents the effective portion of treasury yield hedge transactions. Amortization of this amount will be included in interest expense over the term of the related debt and is not included in rate base.
Iatan No. 1 and common facilities: Represents depreciation and carrying costs related to Iatan No. 1 and common facilities. These costs are included in rate base and amortized over various periods.
Iatan No. 2 construction accounting costs: Represents the construction accounting costs related to Iatan No. 2. These costs are included in rate base and amortized through 2059.
Kansas property tax surcharge: Represents actual costs incurred for property taxes in excess of amounts collected in revenues. These costs are expected to be recovered over a one-year period and are not included in rate base.
Disallowed plant costs: The KCC originally disallowed certain costs related to the Wolf Creek plant. In 1987, the KCC revised its original conclusion and provided for recovery of an indirect disallowance with no return on investment. This regulatory asset represents the present value of the future expected revenues to be provided to recover these costs, net of the amounts amortized.
La Cygne environmental costs: Represents the deferral of depreciation and amortization expense and associated carrying charges related to the La Cygne Station environmental project. This amount will be amortized over the life of the related asset and is included in rate base.
Deferred customer programs: Represents costs related to various energy efficiency programs that have been accumulated and deferred for future recovery. Of these amounts, $4.7$10.2 million for Evergy and KCP&L$8.3 million for Evergy Metro are not included in rate base and are amortized over various periods.
Fuel recovery mechanisms: Represents the actual cost of fuel consumed in producing electricity and the cost of purchased power in excess of the amounts collected from customers. This difference is expected to be recovered over a one-year period and is not included in rate base.
Solar rebates: Represents costs associated with solar rebates provided to retail electric customers. These amounts are not included in rate base and are amortized through 2020.over various periods.
Transmission delivery charge: Represents costs associated with the transmission delivery charge. The amounts are not included in rate base and are amortized over a one-year period.
Wolf Creek outage: Represents deferred expenses associated with Wolf Creek's scheduled refueling and maintenance outages. These expenses are amortized during the period between planned outages and are not included in rate base.
Pension and other post-retirement benefit non-service costs: Represents the non-service component of pension and post-retirement net benefit costs that are capitalized as authorized by regulators. The amounts are included in rate base and are recovered over the life of the related asset.
Retired generation facilities: Represents amounts to be recovered for facilities that have been retired and are probable of recovery.
Merger transition costs: Represents recoverable transition costs related to the merger. The amounts are not included in rate base and are recovered from retail customers through 2028.

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Other regulatory assets: Includes various regulatory assets that individually are small in relation to the total regulatory asset balance. These amounts have various recovery periods and are not included in rate base.
The following summarizes the nature and period of amortization for each of the regulatory liabilities listed in the table above.
Taxes refundable through future rates: Represents the obligation to return to customers income taxes recovered in earlier periods when corporate income tax rates were higher than current income tax rates. A large portion of this amount is related to depreciation and will be returned to customers over the life of the applicable property.
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Deferred regulatory gain from sale leaseback: Represents the gain KGEEvergy Kansas South recorded on the 1987 sale and leaseback of its 50% interest in La Cygne Unit 2. The gain is amortized over the term of the lease.
Emission allowances: Represents deferred gains related to the sale of emission allowances to be returned to customers.
Nuclear decommissioning: Represents the difference between the fair value of the assets held in the nuclear decommissioning trust and the amount recorded for the accumulated accretion and depreciation expense associated with the asset retirement obligation related to Wolf Creek.
Pension and post-retirement costs: Includes pension and post-retirement benefit obligations and expense recognized in setting prices in excess of actual pension and post-retirement expense.
Jurisdictional allowance for funds used during construction: Represents AFUDC that is accrued subsequent to the time the associated construction charges are included in prices and prior to the time the related assets are placed in service. The AFUDC is amortized to depreciation expense over the useful life of the asset that is placed in service.
La Cygne leasehold dismantling costs: Represents amounts collected but not yet spent on the contractual obligation to dismantle a portion of La Cygne Unit 2. The obligation will be discharged as the unit is dismantled.
Cost of removal: Represents amount collected, but not yet spent, to dispose of plant assets. This liability will be discharged as removal costs are incurred.
Kansas tax credits: Represents Kansas tax credits on investment in utility plant. Amounts will be credited to customers subsequent to the realization of the credits over the remaining lives of the utility plant giving rise to the tax credits.
Purchase power agreement: Represents the amount included in retail electric rates from customers in excess of costs incurred under purchase power agreements. Amounts are amortized over a five-year period.
Merger customer credits: Represents one-time merger bill credits to KCP&L'sEvergy Metro's Kansas electric retail customers. The credits are expected to becustomers that were provided to customers in the first quarter of 2019.
Fuel recovery mechanisms: Represents the amount collected from customers in excess of the actual cost of fuel consumed in producing electricity and the cost of purchased power. This difference is expected to be refunded over a one-year period and is not included in rate base.
Sibley AAO: Represents the estimated amount of revenues that Evergy Missouri West has collected from customers for Sibley Station that Evergy has determined is probable of refund. These amounts were recorded in connection with an AAO granted by the MPSC in October 2019 and deferred amounts will be considered by the MPSC in Evergy Missouri West's next rate case.
Refund of tax reform benefits: Represents amounts collected from customers in 2018 related to federal income tax in excess of the income tax owed by the Evergy Companies as a result of the lower federal income tax rate enacted by the TCJA. Amounts will beTax Cuts and Jobs Act (TCJA) and were refunded to customers in 2019.
Other regulatory liabilities: Includes various regulatory liabilities that individually are relatively small in relation to the total regulatory liability balance. These amounts will be credited over various periods.

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6. GOODWILL
Accounting rules require goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. Evergy's impairment test for the $2,336.6 million of goodwill that was recorded as a result of the Great Plains Energy and Evergy Kansas Central merger was conducted as of May 1, 2019. 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.
6.7. ASSET RETIREMENT OBLIGATIONS
AROs associated with tangible long-lived assets are legal obligations that exist under enacted laws, statutes and written or oral contracts, including obligations arising under the doctrine of promissory estoppel. These liabilities are recognized at estimated fair value as incurred with a corresponding amount capitalized as part of the cost of the related long-lived assets and depreciated over their useful lives. Accretion of the liabilities due to the passage of time is recorded to a regulatory asset and/or liability. Changes in the estimated fair values of the liabilities are recognized when known.
Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West have AROs related to asbestos abatement and the closure and post-closure care of ponds and landfills containing coal combustion residuals (CCRs).In addition, Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro have AROs related to decommissioning Wolf Creek Generating Station (Wolf Creek) and the retirement of wind generation facilities.
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The following table summarizes the change in the Evergy Companies' AROs.
  Evergy  Evergy Kansas Central  
Evergy Metro(a)
 
  2019  2018  2019  2018  2019  2018 
  (millions) 
Beginning balance $687.1
  $405.1
  $281.1
  $405.1
  $261.0
  $266.3
 
Liabilities assumed upon merger with Great Plains Energy —
  412.2
  —
  —
  —
  —
 
Liabilities incurred during the year —
  7.4
  —
  7.4
  —
  —
 
Revision in timing and/or estimates (22.3)  (150.1)  (12.4)  (138.7)  (9.9)  (11.4) 
Settlements (17.8)  (22.4)  (14.8)  (12.0)  (2.5)  (13.1) 
Accretion 27.1
  34.9
  19.0
  19.3
  5.0
  19.2
 
Ending balance $674.1
  $687.1
  $272.9
  $281.1
  $253.6
  $261.0
 
Less: current portion (71.3)  (49.8)  (23.3)  (17.1)  (36.1)  (29.2) 
Total noncurrent asset retirement obligation $602.8
  $637.3
  $249.6
  $264.0
  $217.5
  $231.8
 

  Evergy  Westar Energy  
KCP&L(a)
 
  2018  2017  2018  2017  2018  2017 
  (millions) 
Beginning balance $405.1
  $324.0
  $405.1
  $324.0
  $266.3
  $278.0
 
Liabilities assumed upon merger with Great Plains Energy 412.2
  —
  —
  —
  —
  —
 
Liabilities incurred during the year 7.4
  13.5
  7.4
  13.5
  —
  —
 
Revision in timing and/or estimates (150.1)  66.8
  (138.7)  66.8
  (11.4)  0.3
 
Settlements (22.4)  (16.0)  (12.0)  (16.0)  (13.1)  (25.5) 
Accretion 34.9
  16.8
  19.3
  16.8
  19.2
  13.5
 
Ending balance $687.1
  $405.1
  $281.1
  $405.1
  $261.0
  $266.3
 
Less: current portion (49.8)  (25.1)  (17.1)  (25.1)  (29.2)  (34.9) 
Total noncurrent asset retirement obligation $637.3
  $380.0
  $264.0
  $380.0
  $231.8
  $231.4
 
(a) KCP&LEvergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, June 4, 2018, through December 31, 2018.and thereafter.
See Note 2 for more information regarding KCP&L'sEvergy Metro's and GMO'sEvergy Missouri West's ARO liabilities that Evergy assumed as a result of the merger.

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In 2018, Evergy and Westar EnergyEvergy Kansas Central recorded a $127.0 million revision in estimate primarily related to Westar Energy'sEvergy Kansas Central's ARO to decommission its 47% indirect ownership share of Wolf Creek.
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7.8. PROPERTY, PLANT AND EQUIPMENT
The following tables summarize the property, plant and equipment of Evergy, Westar EnergyEvergy Kansas Central and KCP&L.Evergy Metro.
December 31, 2019 Evergy Evergy Kansas Central Evergy Metro
   (millions) 
Electric plant in service  $27,768.8
   $13,538.1
   $10,776.5
 
Electric plant acquisition adjustment  740.6
   740.6
   —
 
Accumulated depreciation  (10,293.7)   (4,951.5)   (4,272.0) 
Plant in service  18,215.7
   9,327.2
   6,504.5
 
Construction work in progress  839.2
   472.8
   269.9
 
Nuclear fuel, net  128.5
   63.9
   64.6
 
Plant to be retired, net (a)
  1.0
   1.0
   —
 
Net property, plant and equipment  $19,184.4
   $9,864.9
   $6,839.0
 
       
   
 
December 31, 2018 Evergy Evergy Kansas Central Evergy Metro
   (millions) 
Electric plant in service  $26,916.7
   $13,176.7
   $10,439.1
 
Electric plant acquisition adjustment  740.6
   740.6
   —
 
Accumulated depreciation  (9,694.1)   (4,642.8)   (4,022.4) 
Plant in service  17,963.2
   9,274.5
   6,416.7
 
Construction work in progress  685.2
   376.7
   204.4
 
Nuclear fuel, net  133.1
   66.1
   67.0
 
Plant to be retired, net (a)
  1.0
   1.0
   —
 
Net property, plant and equipment  $18,782.5
   $9,718.3
   $6,688.1
 

December 31, 2018 Evergy Westar Energy KCP&L
  (millions)
Electric plant in service $26,916.7
 $13,176.7
 $10,439.1
Electric plant acquisition adjustment 740.6
 740.6
 —
Accumulated depreciation (9,694.1) (4,642.8) (4,022.4)
Plant in service 17,963.2
 9,274.5
 6,416.7
Construction work in progress 685.2
 376.7
 204.4
Nuclear fuel, net 133.1
 66.1
 67.0
Plant to be retired, net (b)
 1.0
 1.0
 —
Net property, plant and equipment $18,782.5
 $9,718.3
 $6,688.1
    
 
December 31, 2017 Evergy Westar Energy 
KCP&L (a)
  (millions)
Electric plant in service $12,954.3
 $12,954.3
 $10,213.2
Electric plant acquisition adjustment 739.0
 739.0
 —
Accumulated depreciation (4,651.7) (4,651.7) (4,070.3)
Plant in service 9,041.6
 9,041.6
 6,142.9
Construction work in progress 434.9
 434.9
 350.3
Nuclear fuel, net 71.4
 71.4
 72.4
Plant to be retired, net (b)
 5.9
 5.9
 —
Net property, plant and equipment $9,553.8
 $9,553.8
 $6,565.6
(a) KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.
(b) As of December 31, 20182019 and 2017,2018, represents the planned retirement of Westar EnergyEvergy Kansas Central analog meters prior to the end of their remaining useful lives.
The following table summarizes the property, plant and equipment of VIEs for Evergy and Westar Energy.Evergy Kansas Central.
   December 31 
  2019 2018
   (millions) 
Electric plant of VIEs  $392.1
   $392.1
 
Accumulated depreciation of VIEs  (230.1)   (222.9) 
Net property, plant and equipment of VIEs  $162.0
   $169.2
 


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   December 31 
  2018 2017
   (millions) 
Electric plant of VIEs  $392.1
   $392.1
 
Accumulated depreciation of VIEs  (222.9)   (215.8) 
Net property, plant and equipment of VIEs  $169.2
   $176.3
 

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

  2018 2017 2016
  (millions)
Evergy (a)
 $567.9
 $350.0
 $316.7
Westar Energy (a)
 371.3
 350.0
 316.7
KCP&L 235.3
 228.4
 215.4
(a)Approximately $7.1 million, $8.3$7.1 million and $9.5$8.3 million of depreciation expense in 2019, 2018 2017 and 2016 ,2017, respectively, was attributable to property, plant and equipment of VIEs.
(b) Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.
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8.9. JOINTLY-OWNED ELECTRIC UTILITY PLANTS
Evergy's, Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's share of jointly-owned electric utility plants at December 31, 20182019, are detailed in the following tables.
Evergy                              
 Wolf Creek Unit 
La Cygne Units (a)
 Iatan No. 1 Unit Iatan No. 2 Unit Iatan Common 
Jeffrey Energy Center(b)
 State Line Wolf Creek Unit 
La Cygne Units (a)
 Iatan No. 1 Unit Iatan No. 2 Unit Iatan Common Jeffrey Energy Center State Line
 (millions, except MW amounts) (millions, except MW amounts)
Evergy's share 94% 100% 88% 73% 79% 100% 40%  94% 100% 88% 73% 79% 100% 40% 
                              
Utility plant in service $3,724.9
 $2,228.0
 $707.3
 $1,374.5
 $504.9
 $2,392.5
 $114.1
  $3,827.8
 $2,202.4
 $718.9
 $1,379.7
 $484.3
 $2,428.6
 $114.6
 
Accumulated depreciation 1,760.8
 737.1
 257.3
 426.7
 127.8
 861.0
 71.3
  1,835.3
 751.6
 269.2
 447.2
 116.4
 918.1
 75.9
 
Nuclear fuel, net 133.1
 —
 —
 —
 —
 —
 —
  128.6
 —
 —
 —
 —
 —
 —
 
Construction work in progress 171.6
 41.8
 27.1
 30.5
 26.5
 33.2
 0.4
  141.4
 21.0
 54.4
 23.5
 9.4
 38.9
 2.8
 
2019 accredited capacity-MWs 1,104
 1,398
 616
 641
 NA
 2,187
 196
 
2020 accredited capacity-MWs 1,104
 1,398
 616
 650
 NA
 2,186
 196
 
(a) 
The VIE consolidated by Evergy and Westar EnergyEvergy Kansas Central holds its 50% leasehold interest in La Cygne Unit 2. This 50% leasehold interest in La Cygne Unit 2 is reflected in the information provided above. See Note 719 for additional information.
(b)
Evergy and Westar Energy's 8% leasehold interest in Jeffrey Energy Center is reflected in the information provided above.
Westar Energy          
Evergy Kansas Central          
 Wolf Creek Unit 
La Cygne Units (a)
  
Jeffrey Energy Center(b)
State
Line
 Wolf Creek Unit 
La Cygne Units (a)
  Jeffrey Energy Center
State
Line
 
(millions, except MW amounts)

 
(millions, except MW amounts)

Westar Energy's share 47% 50% 92% 40% 
Evergy Kansas Central's share 47% 50% 92% 40% 
                  
Utility plant in service $1,833.7
 $1,033.5
 $2,189.6
 $114.1
  $1,884.5
 $1,048.0
 $2,223.4
 $114.6
 
Accumulated depreciation 825.3
 408.6
 778.6
 71.3
  862.2
 426.5
 832.5
 75.9
 
Nuclear fuel, net 66.1
 —
 —
 —
  63.9
 —
 —
 —
 
Construction work in progress 83.7
 34.0
 30.6
 0.4
  67.3
 14.6
 34.9
 2.8
 
2019 accredited capacity-MWs 552
 699
 2,012
 196
 
2020 accredited capacity-MWs 552
 699
 2,011
 196
 
(a) 
The VIE consolidated by Evergy and Westar EnergyEvergy Kansas Central holds its 50% leasehold interest in La Cygne Unit 2. This 50% leasehold interest in La Cygne Unit 2 is reflected in the information provided above. See Note 719 for additional information.
(b)
Evergy's and Westar Energy's 8% leasehold interest in Jeffrey Energy Center is reflected in the information provided above.
KCP&L                    
  Wolf Creek Unit La Cygne Units Iatan No. 1 Unit Iatan No. 2 Unit Iatan Common
  (millions, except MW amounts)
KCP&L's share  47%   50%   70%   55%   61% 
                     
Utility plant in service  $1,891.2
   $1,194.5
   $567.4
   $1,060.3
   $414.8
 
Accumulated depreciation  935.5
   328.5
   203.2
   378.4
   112.8
 
Nuclear fuel, net  67.0
   —
   —
   —
   —
 
Construction work in progress  87.9
   7.8
   3.3
   6.2
   15.0
 
2019 accredited capacity-MWs  552
   699
   490
   482
   NA
 


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

Each owner must fund its own portion of the plant's operating expenses and capital expenditures. The Evergy Companies' share of direct expenses are included in the appropriate operating expense classifications in Evergy's, Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's consolidated financial statements.
9.10. PENSION PLANS AND POST-RETIREMENT BENEFITS
Evergy and certain of its subsidiaries maintain, and Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro participate in, qualified non-contributory defined benefit pension plans covering the majority of Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's employees as well as certain non-qualified plans covering certain active and retired officers. Evergy is also responsible for its indirect 94% ownership share of Wolf Creek's defined benefit plans, consisting of Westar Energy'sEvergy Kansas South's and KCP&L'sEvergy Metro's respective 47% ownership shares.
For the majority of employees, pension benefits under these plans reflect the employees' compensation, years of service and age at retirement. However, for the plan covering Westar Energy'sEvergy Kansas Central's employees, the benefits for non-union employees hired between 2002 and the second quarter of 2018 and union employees hired beginning in 2012 are derived from a cash balance account formula. The plan was closed to future non-union employees in 2018. For the plans covering KCP&L'sEvergy Metro's employees, the benefits for union employees hired beginning in 2014 are derived from a cash balance account formula and the plans were closed to future non-union employees in 2014.
Evergy and its subsidiaries also provide certain post-retirement health care and life insurance benefits for substantially all retired employees of Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro and their respective shares of Wolf Creek's post-retirement benefit plans.
The Evergy Companies record pension and post-retirement expense in accordance with rate orders from the KCC and MPSC that allow the difference between pension and post-retirement costs under GAAP and costs for ratemaking to be recognized as a regulatory asset or liability.  This difference between financial and regulatory accounting methods is due to timing and will be eliminated over the life of the plans.

For 2019, Evergy and Evergy Metro recorded pension settlement charges of $15.6 million and $23.0 million, respectively, as a result of accelerated pension distributions related to voluntary severance programs. Evergy and Evergy Metro deferred substantially all of the charges to a regulatory asset and expect to recover these amounts over future periods pursuant to regulatory agreements.


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The following pension benefits tables provide information relating to the funded status of all defined benefit pension plans on an aggregate basis as well as the components of net periodic benefit costs. For financial reporting purposes, the market value of plan assets is the fair value. Net periodic benefit costs reflect total plan benefit costs prior to the effects of capitalization and sharing with joint owners of power plants. KCP&LEvergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, June 4, 2018, through December 31, 2018.and thereafter.
  Pension Benefits Post-Retirement Benefits
  Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Change in projected benefit obligation (PBO) (millions)
PBO at January 1, 2019 $2,553.4
 $1,258.9
 $1,272.4
 $249.3
 $133.6
 $115.7
Service cost 79.1
 29.0
 50.1
 2.5
 1.1
 1.4
Interest cost 108.0
 53.7
 53.3
 10.5
 5.6
 4.9
Contribution by participants —
 —
 —
 8.8
 1.9
 6.9
Actuarial loss 262.4
 120.3
 140.5
 20.9
 9.5
 11.4
Benefits paid (180.5) (136.9) (42.3) (27.7) (13.0) (14.7)
Settlements (96.6) —
 (96.6) —
 —
 —
Other (7.6) (1.6) (6.0) —
 —
 —
PBO at December 31, 2019 $2,718.2
 $1,323.4
 $1,371.4
 $264.3
 $138.7
 $125.6
Change in plan assets            
Fair value of plan assets at January 1, 2019 $1,603.4
 $804.6
 $798.8
 $223.3
 $109.7
 $113.6
Actual return on plan assets 284.0
 130.5
 153.5
 30.0
 20.0
 10.0
Contributions by employer and participants 125.2
 43.0
 82.2
 13.2
 3.5
 9.7
Benefits paid (175.6) (134.4) (41.2) (26.6) (12.7) (13.9)
Settlements (96.6) —
 (96.6) —
 —
 —
Other (7.6) (1.6) (6.0) —
 —
 —
Fair value of plan assets at December 31, 2019 $1,732.8
 $842.1
 $890.7
 $239.9
 $120.5
 $119.4
Funded status at December 31, 2019 $(985.4) $(481.3) $(480.7) $(24.4) $(18.2) $(6.2)
  Pension Benefits Post-Retirement Benefits
  Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
Change in projected benefit obligation (PBO) (millions)
PBO at January 1, 2018 $1,367.0
 $1,367.0
 $1,331.7
 $138.6
 $138.6
 $133.2
Service cost 60.7
 32.2
 48.6
 2.3
 1.3
 2.0
Interest cost 82.5
 50.7
 49.9
 8.0
 5.0
 4.8
Contribution by participants —
 —
 —
 5.6
 1.8
 6.6
Plan amendments 13.4
 11.4
 2.0
 —
 —
 —
Actuarial (gain) loss (98.8) (100.1) (89.6) (11.3) (2.6) (18.0)
Benefits paid (137.9) (97.9) (70.2) (17.3) (10.5) (12.9)
Obligations assumed upon merger with Great Plains Energy 1,275.9
 —
 —
 123.4
 —
 —
Other (9.4) (4.4) —
 —
 —
 —
PBO at December 31, 2018 $2,553.4
 $1,258.9
 $1,272.4
 $249.3
 $133.6
 $115.7
Change in plan assets            
Fair value of plan assets at January 1, 2018 $887.0
 $887.0
 $848.4
 $124.1
 $124.1
 $115.8
Actual return on plan assets (79.7) (30.9) (60.1) (7.5) (7.4) (1.2)
Contributions by employer and participants 114.5
 47.9
 80.3
 11.6
 3.2
 11.4
Benefits paid (134.0) (95.0) (69.8) (16.7) (10.2) (12.4)
Assets acquired upon merger with Great Plains Energy 825.0
 —
 —
 111.8
 —
 —
Other (9.4) (4.4) —
 —
 —
 —
Fair value of plan assets at December 31, 2018 $1,603.4
 $804.6
 $798.8
 $223.3
 $109.7
 $113.6
Funded status at December 31, 2018 $(950.0) $(454.3) $(473.6) $(26.0) $(23.9) $(2.1)

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


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  Pension Benefits Post-Retirement Benefits
  Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Change in projected benefit obligation (PBO) (millions)
PBO at January 1, 2018 $1,367.0
 $1,367.0
 $1,331.7
 $138.6
 $138.6
 $133.2
Service cost 60.7
 32.2
 48.6
 2.3
 1.3
 2.0
Interest cost 82.5
 50.7
 49.9
 8.0
 5.0
 4.8
Contribution by participants —
 —
 —
 5.6
 1.8
 6.6
Plan amendments 13.4
 11.4
 2.0
 —
 —
 —
Actuarial gain (98.8) (100.1) (89.6) (11.3) (2.6) (18.0)
Benefits paid (137.9) (97.9) (70.2) (17.3) (10.5) (12.9)
Obligations assumed upon merger with Great Plains
   Energy
 1,275.9
 —
 —
 123.4
 —
 —
Other (9.4) (4.4) —
 —
 —
 —
PBO at December 31, 2018 $2,553.4
 $1,258.9
 $1,272.4
 $249.3
 $133.6
 $115.7
Change in plan assets            
Fair value of plan assets at January 1, 2018 $887.0
 $887.0
 $848.4
 $124.1
 $124.1
 $115.8
Actual return on plan assets (79.7) (30.9) (60.1) (7.5) (7.4) (1.2)
Contributions by employer and participants 114.5
 47.9
 80.3
 11.6
 3.2
 11.4
Benefits paid (134.0) (95.0) (69.8) (16.7) (10.2) (12.4)
Assets acquired upon merger with Great Plains
   Energy
 825.0
 —
 —
 111.8
 —
 —
Other (9.4) (4.4) —
 —
 —
 —
Fair value of plan assets at December 31, 2018 $1,603.4
 $804.6
 $798.8
 $223.3
 $109.7
 $113.6
Funded status at December 31, 2018 $(950.0) $(454.3) $(473.6) $(26.0) $(23.9) $(2.1)
  Pension Benefits Post-Retirement Benefits
  Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
Amounts recognized in the consolidated balance sheets (millions)
Non-current asset $—
 $—
 $—
 $17.5
 $—
 $17.5
Current pension and other post-retirement liability (4.4) (2.6) (0.5) (1.7) (0.9) (0.8)
Noncurrent pension liability and other post-retirement liability (945.6) (451.7) (473.1) (41.8) (23.0) (18.8)
Net amount recognized before regulatory treatment (950.0) (454.3) (473.6) (26.0) (23.9) (2.1)
Accumulated OCI or regulatory asset/liability 419.9
 337.5
 362.4
 (6.0) 0.8
 (26.0)
Net amount recognized at December 31, 2018 $(530.1) $(116.8) $(111.2) $(32.0) $(23.1) $(28.1)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:            
Actuarial (gain) loss $403.6
 $323.2
 $226.3
 $(7.8) $(1.0) $(11.0)
Prior service cost 16.3
 14.3
 3.8
 1.8
 1.8
 (8.1)
Other —
 —
 132.3
 —
 —
 (6.9)
Net amount recognized at December 31, 2018 $419.9
 $337.5
 $362.4
 $(6.0) $0.8
 $(26.0)

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

  Pension Benefits Post-Retirement Benefits
  Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
Change in projected benefit obligation (PBO) (millions)
PBO at January 1, 2017 $1,241.0
 $1,241.0
 $1,220.6
 $136.8
 $136.8
 $130.1
Service cost 28.7
 28.7
 44.2
 1.2
 1.2
 2.1
Interest cost 52.4
 52.4
 52.6
 5.5
 5.5
 5.4
Contribution by participants —
 —
 —
 1.5
 1.5
 6.0
Actuarial loss 107.0
 107.0
 134.9
 2.8
 2.8
 2.1
Benefits paid (62.1) (62.1) (34.7) (9.2) (9.2) (12.5)
Settlements and special termination benefits —
 —
 (85.9) —
 —
 —
PBO at December 31, 2017 $1,367.0
 $1,367.0
 $1,331.7
 $138.6
 $138.6
 $133.2
Change in plan assets            
Fair value of plan assets at January 1, 2017 $797.2
 $797.2
 $776.8
 $115.6
 $115.6
 $115.6
Actual return on plan assets 113.1
 113.1
 114.8
 15.6
 15.6
 1.8
Contributions by employer and participants 36.3
 36.3
 76.9
 1.9
 1.9
 10.4
Benefits paid (59.6) (59.6) (34.5) (9.0) (9.0) (12.0)
Settlements —
 —
 (85.6) —
 —
 —
Fair value of plan assets at December 31, 2017 $887.0
 $887.0
 $848.4
 $124.1
 $124.1
 $115.8
Funded status at December 31, 2017 $(480.0) $(480.0) $(483.3) $(14.5) $(14.5) $(17.4)


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  Pension Benefits Post-Retirement Benefits
  Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
Amounts recognized in the consolidated balance sheets (millions)
Non-current asset $—
 $—
 $—
 $—
 $—
 $12.8
Current pension and other post-retirement liability (2.5) (2.5) (0.6) (0.8) (0.8) (0.8)
Noncurrent pension liability and other post-retirement liability (477.5) (477.5) (482.7) (13.7) (13.7) (29.4)
Net amount recognized before regulatory treatment (480.0) (480.0) (483.3) (14.5) (14.5) (17.4)
Accumulated OCI or regulatory asset/liability 372.6
 372.6
 379.7
 (11.1) (11.1) (12.2)
Net amount recognized at December 31, 2017 $(107.4) $(107.4) $(103.6) $(25.6) $(25.6) $(29.6)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:            
Actuarial (gain) loss $369.0
 $369.0
 $245.5
 $(13.3) $(13.3) $2.8
Prior service cost 3.6
 3.6
 2.5
 2.2
 2.2
 (8.0)
Other —
 —
 131.7
 —
 —
 (7.0)
Net amount recognized at December 31, 2017 $372.6
 $372.6
 $379.7
 $(11.1) $(11.1) $(12.2)


As of December 31, 20182019 and 2017,2018, Evergy's pension benefits include non-qualified benefit obligations of $46.9$49.4 million and $27.4$46.9 million, respectively, which are funded by trusts containing assets of $43.8$45.5 million and $34.3$43.8 million, respectively. As of December 31, 2019 and 2018, and 2017, Westar Energy'sEvergy Kansas Central's pension benefits include non-qualified benefit obligations of $24.8$26.0 million and $27.4$24.8 million, respectively, which are funded by trusts containing assets of $30.6$31.7 million and $34.3$30.6 million, respectively. The assets in the aforementioned trusts are not included in the table above. See Note 1314 for more information on these amounts.
  Pension Benefits Post-Retirement Benefits
Year Ended December 31, 2019 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Components of net periodic benefit costs (millions)
Service cost $79.1
 $29.0
 $50.1
 $2.5
 $1.1
 $1.4
Interest cost 108.0
 53.7
 53.3
 10.5
 5.6
 4.9
Expected return on plan assets (106.3) (54.8) (48.9) (10.0) (6.7) (3.3)
Prior service cost 1.9
 1.7
 0.9
 0.5
 0.5
 —
Recognized net actuarial (gain) loss 33.0
 25.5
 49.8
 (1.2) (0.6) (1.4)
Settlement and special termination benefits 15.6
 —
 23.0
 —
 —
 —
Net periodic benefit costs before regulatory adjustment and intercompany allocations 131.3
 55.1
 128.2
 2.3
 (0.1) 1.6
Regulatory adjustment 37.4
 3.0
 (19.2) (3.4) (3.0) 0.4
Intercompany allocations n/a
 —
 (34.4) n/a
 —
 (0.4)
Net periodic benefit costs 168.7
 58.1
 74.6
 (1.1) (3.1) 1.6
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities  
Current year net (gain) loss 84.7
 44.6
 35.9
 0.9
 (3.8) 4.7
Amortization of gain (loss) (48.6) (25.5) (72.8) 1.2
 0.6
 1.4
Amortization of prior service cost (1.9) (1.7) (0.9) (0.5) (0.5) —
Total recognized in OCI or regulatory asset/liability 34.2
 17.4
 (37.8) 1.6
 (3.7) 6.1
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability $202.9
 $75.5
 $36.8
 $0.5
 $(6.8) $7.7
  Pension Benefits Post-Retirement Benefits
Year Ended December 31, 2018 Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
Components of net periodic benefit costs (millions)
Service cost $60.7
 $32.2
 $48.6
 $2.3
 $1.3
 $2.0
Interest cost 82.5
 50.7
 49.9
 8.0
 5.0
 4.8
Expected return on plan assets (86.4) (55.9) (55.5) (8.8) (7.0) (2.8)
Prior service cost 0.7
 0.7
 0.7
 0.5
 0.5
 0.1
Recognized net actuarial (gain) loss 32.6
 32.6
 45.1
 (0.6) (0.6) (0.2)
Net periodic benefit costs before regulatory adjustment and intercompany allocations 90.1
 60.3
 88.8
 1.4
 (0.8) 3.9
Regulatory adjustment 8.3
 8.8
 0.7
 (1.7) (2.0) (0.1)
Intercompany allocations n/a
 —
 (21.6) n/a
 —
 (1.1)
Net periodic benefit costs 98.4
 69.1
 67.9
 (0.3) (2.8) 2.7
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities            
Current year net (gain) loss 67.2
 (13.2) 25.9
 4.9
 11.7
 (14.0)
Amortization of gain (loss) (32.6) (32.6) (45.1) 0.6
 0.6
 0.2
Prior service cost 13.4
 11.4
 2.0
 —
 —
 —
Amortization of prior service cost (0.7) (0.7) (0.7) (0.5) (0.5) (0.1)
Other regulatory activity —
 —
 0.6
 —
 —
 —
Total recognized in OCI or regulatory asset/liability 47.3
 (35.1) (17.3) 5.0
 11.8
 (13.9)
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability $145.7
 $34.0
 $50.6
 $4.7
 $9.0
 $(11.2)

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


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

  Pension Benefits Post-Retirement Benefits
Year Ended December 31, 2017 Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
Components of net periodic benefit costs (millions)
Service cost $28.7
 $28.7
 $44.2
 $1.2
 $1.2
 $2.1
Interest cost 52.4
 52.4
 52.6
 5.5
 5.5
 5.4
Expected return on plan assets (53.6) (53.6) (51.2) (6.9) (6.9) (2.5)
Prior service cost 0.7
 0.7
 0.7
 0.5
 0.5
 —
Recognized net actuarial (gain) loss 26.9
 26.9
 49.0
 (0.8) (0.8) (0.5)
Settlement and special termination benefits 0.4
 0.4
 16.3
 —
 —
 —
Net periodic benefit costs before regulatory adjustment and intercompany allocations 55.5
 55.5
 111.6
 (0.5) (0.5) 4.5
Regulatory adjustment 14.5
 14.5
 (9.2) (1.9) (1.9) 1.3
Intercompany allocations n/a
 —
 (37.1) n/a
 —
 (1.5)
Net periodic benefit costs 70.0
 70.0
 65.3
 (2.4) (2.4) 4.3
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities            
Current year net (gain) loss 47.1
 47.1
 71.3
 (5.8) (5.8) 3.0
Amortization of gain (loss) (26.9) (26.9) (64.9) 0.8
 0.8
 0.5
Amortization of prior service cost (0.7) (0.7) (0.7) (0.5) (0.5) —
Other regulatory activity —
 —
 6.1
 —
 —
 —
Total recognized in OCI or regulatory asset/liability 19.5
 19.5
 11.8
 (5.5) (5.5) 3.5
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability $89.5
 $89.5
 $77.1
 $(7.9) $(7.9) $7.8
  Pension Benefits Post-Retirement Benefits
Year Ended December 31, 2016 Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
Components of net periodic benefit costs (millions)
Service cost $25.3
 $25.3
 $42.0
 $1.2
 $1.2
 $2.6
Interest cost 53.4
 53.4
 52.9
 5.9
 5.9
 6.1
Expected return on plan assets (52.3) (52.3) (49.2) (6.9) (6.9) (3.0)
Prior service cost 0.8
 0.8
 0.7
 0.5
 0.5
 1.2
Recognized net actuarial (gain) loss 24.9
 24.9
 51.8
 (1.1) (1.1) (1.5)
Net periodic benefit costs before regulatory adjustment and intercompany allocations 52.1
 52.1
 98.2
 (0.4) (0.4) 5.4
Regulatory adjustment 16.4
 16.4
 (3.1) (1.9) (1.9) 3.6
Intercompany allocations n/a
 —
 (36.0) n/a
 —
 (1.9)
Net periodic benefit costs 68.5
 68.5
 59.1
 (2.3) (2.3) 7.1
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities            
Current year net (gain) loss 62.8
 62.8
 63.6
 3.1
 3.1
 1.0
Amortization of gain (loss) (24.9) (24.9) (51.8) 1.1
 1.1
 1.5
Prior service cost (3.4) (3.4) —
 —
 —
 (10.1)
Amortization of prior service cost (0.8) (0.8) (0.7) (0.5) (0.5) (1.2)
Other regulatory activity —
 —
 (2.9) —
 —
 (1.9)
Total recognized in OCI or regulatory asset/liability 33.7
 33.7
 8.2
 3.7
 3.7
 (10.7)
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability $102.2
 $102.2
 $67.3
 $1.4
 $1.4
 $(3.6)
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For financial reporting purposes, the estimated prior service cost and net actuarial (gain) loss for the defined benefit plans are amortized from accumulated other comprehensive income (OCI) or a regulatory asset into net periodic benefit cost. The Evergy Companies amortize prior service cost on a straight-line basis over the average future service of the active employees (plan participants) benefiting under the plan at the time of the amendment.plan. Evergy and Westar EnergyEvergy Kansas Central amortize the net actuarial (gain) loss on a straight-line basis over the average future service of active plan participants benefiting under the plan without application of an amortization corridor. KCP&LEvergy Metro amortizes the net actuarial (gain) loss on a rolling five-year average basis. The estimated amounts to be amortized in 20192020 are detailed in the following table.
  Pension Benefits Post-Retirement Benefits
  Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
  (millions)
Actuarial (gain) loss amortization $45.4
 $33.9
 $45.1
 $0.2
 $—
 $(0.6)
Prior service cost amortization 1.8
 1.6
 0.8
 0.5
 0.5
 —


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  Pension Benefits Post-Retirement Benefits
  Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
  (millions)
Actuarial (gain) loss amortization $27.5
 $25.4
 $48.3
 $(1.2) $(0.5) $(1.5)
Prior service cost amortization 1.9
 1.7
 0.9
 0.5
 0.5
 —

Pension and other post-retirement benefit plans with the PBO, ABO or accumulated other post-retirement benefit obligation (APBO) in excess of the fair value of plan assets at year-end are detailed in the following tables. KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.
December 31, 2019 Evergy Evergy Kansas Central Evergy Metro
  (millions)
ABO for all defined benefit pension plans $2,390.5
 $1,196.8
 $1,170.2
Pension plans with the PBO in excess of plan assets      
Projected benefit obligation $2,718.2
 $1,323.4
 $1,371.4
Fair value of plan assets 1,732.8
 842.1
 890.7
Pension plans with the ABO in excess of plan assets      
Accumulated benefit obligation $2,390.5
 $1,196.8
 $1,170.2
Fair value of plan assets 1,732.8
 842.1
 890.7
Other post-retirement benefit plans with the APBO in excess of plan assets      
Accumulated other post-retirement benefit obligation $264.3
 $138.7
 $125.6
Fair value of plan assets 239.9
 120.5
 119.4
December 31, 2018 Evergy Westar Energy KCP&L
  (millions)
ABO for all defined benefit pension plans $2,257.9
 $1,139.1
 $1,096.7
Pension plans with the PBO in excess of plan assets      
Projected benefit obligation $2,553.4
 $1,258.9
 $1,272.4
Fair value of plan assets 1,603.4
 804.6
 798.8
Pension plans with the ABO in excess of plan assets      
Accumulated benefit obligation $2,257.9
 $1,139.1
 $1,096.7
Fair value of plan assets 1,603.4
 804.6
 798.8
Other post-retirement benefit plans with the APBO in excess of plan assets      
Accumulated other post-retirement benefit obligation $249.3
 $133.6
 $57.7
Fair value of plan assets 223.3
 109.7
 38.2

December 31, 2018 Evergy Evergy Kansas Central Evergy Metro
  (millions)
ABO for all defined benefit pension plans $2,257.9
 $1,139.1
 $1,096.7
Pension plans with the PBO in excess of plan assets      
Projected benefit obligation $2,553.4
 $1,258.9
 $1,272.4
Fair value of plan assets 1,603.4
 804.6
 798.8
Pension plans with the ABO in excess of plan assets      
Accumulated benefit obligation $2,257.9
 $1,139.1
 $1,096.7
Fair value of plan assets 1,603.4
 804.6
 798.8
Other post-retirement benefit plans with the APBO in excess of plan assets      
Accumulated other post-retirement benefit obligation $249.3
 $133.6
 $57.7
Fair value of plan assets 223.3
 109.7
 38.2

December 31, 2017 Evergy Westar Energy KCP&L
  (millions)
ABO for all defined benefit pension plans $1,219.6
 $1,219.6
 $1,155.5
Pension plans with the PBO in excess of plan assets      
Projected benefit obligation $1,367.0
 $1,367.0
 $1,331.7
Fair value of plan assets 887.0
 887.0
 848.4
Pension plans with the ABO in excess of plan assets      
Accumulated benefit obligation $1,219.6
 $1,219.6
 $1,155.5
Fair value of plan assets 887.0
 887.0
 848.4
Other post-retirement benefit plans with the APBO in excess of plan assets      
Accumulated other post-retirement benefit obligation $138.6
 $138.6
 $111.6
Fair value of plan assets 124.1
 124.1
 81.5
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The expected long-term rate of return on plan assets represents the Evergy Companies' estimate of the long-term return on plan assets and is based on historical and projected rates of return for current and planned asset classes in the plans' investment portfolios. Assumed projected rates of return for each asset class were selected after analyzing historical experience and future expectations of the returns of various asset classes. Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolios was developed and adjusted for the effect of projected benefits paid from plan assets and future plan contributions.

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The following tables provide the weighted-average assumptions used to determine benefit obligations and net costs. KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.
Weighted-average assumptions used to determine the benefit obligation at December 31, 2019 Pension Benefits Post-Retirement Benefits
Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 3.62% 3.61% 3.64% 3.56% 3.54% 3.58%
Rate of compensation increase 3.74% 3.78% 3.71% 3.75% n/a 3.75%
            
Weighted-average assumptions used to determine the benefit obligation at December 31, 2018 Pension Benefits Post-Retirement Benefits Pension Benefits Post-Retirement Benefits
Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 4.35% 4.35% 4.36% 4.33% 4.33% 4.33% 4.35% 4.35% 4.36% 4.33% 4.33% 4.33%
Rate of compensation increase 3.76% 4.03% 3.64% 3.50% n/a 3.50% 3.76% 4.03% 3.64% 3.50% n/a 3.50%
            
Weighted-average assumption used to determine the benefit obligation at December 31, 2017 Pension Benefits Post-Retirement Benefits
Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
Discount rate 3.73% 3.73% 3.72% 3.67% 3.67% 3.64%
Rate of compensation increase 4.00% 4.00% 3.62% 4.00% 4.00% 3.50%
Weighted-average assumptions used to determine net costs for the year ended December 31, 2019 Pension Benefits Post-Retirement Benefits
 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 4.35% 4.35% 4.36% 4.33% 4.33% 4.33%
Expected long-term return on plan assets 6.61% 6.75% 6.47% 4.44% 6.00% 2.94%
Rate of compensation increase 3.76% 4.03% 3.64% 3.50% n/a 3.50%
             
Weighted-average assumptions used to determine net costs for the year ended December 31, 2018 Pension Benefits Post-Retirement Benefits
 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 3.73% 3.73% 3.72% 3.67% 3.73% 3.64%
Expected long-term return on plan assets 6.52% 6.67% 6.46% 6.00% 6.00% 2.80%
Rate of compensation increase 3.92% 4.00% 3.62% 3.50% n/a 3.50%
Weighted-average assumptions used to determine net costs for the year ended December 31, 2018 Pension Benefits Post-Retirement Benefits
 Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
Discount rate 3.73% 3.73% 3.72% 3.67% 3.73% 3.64%
Expected long-term return on plan assets 6.52% 6.67% 6.46% 6.00% 6.00% 2.80%
Rate of compensation increase 3.92% 4.00% 3.62% 3.50% n/a 3.50%
             
Weighted-average assumptions used to determine net costs for the year ended December 31, 2017 Pension Benefits Post-Retirement Benefits
 Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
Discount rate 4.25% 4.25% 4.31% 4.31% 4.31% 4.20%
Expected long-term return on plan assets 6.64% 6.64% 6.73% 6.00% 6.00% 2.00%
Rate of compensation increase 4.00% 4.00% 3.62% 4.00% 4.00% 3.50%

Evergy expects to contribute $115.5$128.1 million to the pension plans in 20192020 to meet Employee Retirement Income Security Act of 1974, as amended (ERISA) funding requirements and regulatory orders, of which $37.0$45.5 million is expected to be paid by Westar EnergyEvergy Kansas Central and $78.5$82.6 million is expected to be paid by KCP&L.Evergy Metro. The Evergy Companies' funding policy is to contribute amounts sufficient to meet the ERISA funding requirements and MPSC and KCC rate orders plus additional amounts as considered appropriate; therefore, actual contributions may differ from expected contributions. Also in 2019,2020, Evergy expects to contribute $2.8$3.8 million to the post-retirement benefit plans, of which $0.7$0.8 million is expected to be paid by Westar EnergyEvergy Kansas Central and $2.1$3.0 million is expected to be paid by KCP&L.Evergy Metro.

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The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid through 2028.2029.
 Pension Benefits Post-Retirement Benefits
 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
 (millions)
2020$180.6
 $95.1
 $84.3
 $16.7
 $9.6
 $7.1
2021182.4
 95.6
 85.5
 16.7
 9.5
 7.2
2022181.1
 93.3
 86.5
 16.4
 9.3
 7.1
2023181.8
 91.5
 89.0
 16.3
 9.2
 7.1
2024185.0
 91.9
 91.7
 15.9
 8.8
 7.1
2025-2029918.2
 428.3
 482.3
 75.2
 40.3
 34.9

 Pension Benefits Post-Retirement Benefits
 Evergy Westar Energy KCP&L Evergy Westar Energy KCP&L
 (millions)
2019$193.0
 $96.7
 $94.9
 $20.3
 $10.9
 $9.4
2020188.9
 94.9
 92.8
 19.8
 11.0
 8.9
2021189.4
 95.3
 92.8
 20.6
 11.3
 9.3
2022187.4
 92.7
 93.4
 21.1
 11.5
 9.6
2023186.1
 90.0
 94.7
 21.5
 11.7
 9.8
2024-2028928.7
 432.7
 488.3
 110.7
 58.5
 52.1
Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro each maintain separate trusts for both their qualified pension and post-retirement benefits. These plans are managed in accordance with prudent investor guidelines contained in the ERISA requirements.
The primary objective of the Westar EnergyEvergy Kansas Central pension plan is to provide a source of retirement income for its participants and beneficiaries, and the primary financial objective of the plan is to improve its funded status. The primary objective of the Westar EnergyEvergy Kansas Central post-retirement benefit plan is growth in assets and the preservation of principal, while minimizing interim volatility, to meet anticipated claims of plan participants.
The primary objective of the KCP&LEvergy Metro pension plans is to earnmeet or exceed the highest possibletarget rate of return onfor the plan assets within a reasonable and prudent level of risk. The primary objective of the KCP&LEvergy Metro post-retirement benefit plans is to preserve capital, maintain sufficient liquidity and earn a consistent rate of return.
The investment strategies of both the Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro pension and post-retirement plans support the above objectives of the plans.The portfolios are invested, and periodically rebalanced, to achieve the targeted allocations detailed below. The following table provides the target asset allocations by asset class for the Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro pension and other post-retirement plan assets.
 Pension Benefits Post-Retirement Benefits
 Evergy Kansas Central Evergy Metro Evergy Kansas Central Evergy Metro
Domestic equities29% 31% 33% 3%
International equities20% 21% 22% —%
Bonds36% 35% 45% 85%
Mortgage & asset backed securities—% —% —% 4%
Real estate investments4% 6% —% —%
Other investments11% 7% —% 8%
 Pension Benefits Post-Retirement Benefits
 Westar Energy KCP&L Westar Energy KCP&L
Domestic equities29% 32% 52% 3%
International equities20% 21% 13% —%
Bonds36% 36% 35% 85%
Mortgage & asset backed securities—% —% —% 4%
Real estate investments4% 6% —% —%
Other investments11% 5% —% 8%

Fair Value Measurements
Evergy classifies recurring and non-recurring fair value measurements based on the fair value hierarchy as discussed in Note 13.14. The following are descriptions of the valuation methods of the primary fair value measurements disclosed below.
Domestic equities - consist of individually held domestic equity securities and domestic equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are traded in less than active markets or priced with models using highly observable inputs are categorized as Level 2. Funds that are valued by fund administrators using the net asset value (NAV) per fund

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(NAV) per fund share, derived from the quoted prices in active markets of the underlying securities are not classified within the fair value hierarchy.
International equities - consist of individually held international equity securities and international equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are tradedvalued by fund administrators using the NAV per fund share, derived from the quoted prices in less than active markets or pricedof the underlying securities are not classified within the fair value hierarchy.
Bond funds - consist of funds maintained by investment companies that invest in various types of fixed income securities consistent with models using highly observable inputsthe funds' stated objectives. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 2.1. Funds that are valued by fund administrators using the NAV per fund share, derived from the quoted prices in active markets of the underlying securities, are not classified within the fair value hierarchy.
Bond funds - consist of funds maintained by investment companies that invest in various types of fixed income securities consistent with the funds' stated objectives. Funds that are traded in less than active markets or are priced with models using highly observable inputs are categorized as Level 2 and funds that are valued by fund administrators using the NAV per fund share, derived from the quoted prices in active markets of the underlying securities, are not classified within the fair value hierarchy.
Corporate bonds - consists of individually held, primarily domestic, corporate bonds that are traded in less than active markets or priced with models using highly observable inputs that are categorized as Level 2.
U.S. Treasury and agency bonds - consists of individually held U.S. Treasury securities and U.S. agency bonds. U.S. Treasury securities, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as a Level 1. U.S. agency bonds, which are publicly quoted, are traded in less than active markets or priced with models using highly observable inputs and are categorized as Level 2.
Mortgage and asset backed securities - consists of individually held securities that are traded in less than active markets or valued with models using highly observable inputs that are categorized as Level 2.
Real estate investments - consists of traded real estate investment trusts valued at the closing price reported on the major market on which the trusts are traded and are categorized as Level 1 and institutional trust funds valued at NAV per fund share and are not categorized in the fair value hierarchy.
Combination debt/equity/other fund - consists of a fund that invests in various types of debt, equity and other asset classes consistent with the fund's stated objectives. The fund, which is publicly quoted, is valued based on quoted prices in active markets and is categorized as Level 1.
Alternative investments - consists of investments in institutional trust and hedge funds that are valued by fund administrators using the NAV per fund share, derived from the underlying investments of the fund, and are not classified within the fair value hierarchy.
Short-term investments - consists of fund investments in high-quality, short-term, U.S. dollar-denominated instruments with an average maturity of 60 days that are valued at NAV per fund share and are not categorized in the fair value hierarchy.
Cash and cash equivalents - consists of investments with original maturities of three months or less when purchased that are traded in active markets and are categorized as Level 1.



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The fair values of the Evergy Companies' pension plan assets at December 31, 20182019 and 2017,2018, by asset category are in the following tables.
    Fair Value Measurements Using
 
 
Description
December 31
2019		Level 1 Level 2 Level 3 Assets measured at NAV
  (millions)
Evergy Kansas Central Pension Plans                 
Domestic equities $233.8
  $150.6
   $—
   $—
   $83.2
International equities 162.4
  101.5
   —
   —
   60.9
Bond funds 281.7
  233.0
   —
   —
   48.7
Real estate investments 46.5
  —
   —
   —
   46.5
Combination debt/equity/other fund 30.1
  30.1
   —
   —
   —
Alternative investment funds 78.5
  —
   —
   —
   78.5
Short-term investments 9.1
  —
   —
   —
   9.1
Total $842.1
  $515.2
   $—
   $—
  
$326.9
                  
Evergy Metro Pension Plans                 
Domestic equities $244.8
  $195.3
   $—
   $—
   $49.5
International equities 178.7
  117.7
   —
   —
   61.0
Bond funds 71.0
  15.6
   —
   —
   55.4
Corporate bonds 123.9
  —
   123.9
   —
   —
U.S. Treasury and agency bonds 70.9
  53.5
   17.4
   —
   —
Mortgage and asset backed securities 5.7
  —
   5.7
   —
   —
Real estate investments 50.8
  12.8
   —
   —
   38.0
Combination debt/equity/other fund 11.9
  11.9
   —
   —
   —
Alternative investment funds 36.6
  —
   —
   —
   36.6
Cash and cash equivalents 92.9
  92.9
   —
   —
   —
Short-term investments 1.0
  —
   —
   —
   1.0
Other 2.5
  —
   2.5
   —
   —
Total $890.7
  $499.7
   $149.5
   $—
  
$241.5

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

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

    Fair Value Measurements Using
 
 
Description
December 31
2017		Level 1 Level 2 Level 3 Assets measured at NAV
  (millions) 
Westar Energy Pension Plans(a)
                  
Domestic equities $256.1
  $—
   $232.2
   $—
   $23.9
 
International equities 177.9
  —
   177.9
   —
   —
 
Bond funds 299.5
  —
   299.5
   —
   —
 
Real estate investments 41.8
  —
   —
   —
   41.8
 
Combination debt/equity/other fund 36.2
  —
   36.2
   —
   —
 
Alternative investment funds 70.3
  —
   17.0
   —
   53.3
 
Short-term investments 5.2
  —
   5.2
   —
   —
 
Total $887.0
  $—
   $768.0
   $—
   $119.0
 
                   
KCP&L Pension Plans                  
Domestic equities $263.9
  $220.5
   $—
   $—
   $43.4
 
International equities 176.0
  123.5
   —
   —
   52.5
 
Bond funds 71.8
  21.4
   —
   —
   50.4
 
Corporate bonds 125.8
  —
   125.8
   —
   —
 
U.S. Treasury and agency bonds 69.8
  51.5
   18.3
   —
   —
 
Mortgage and asset backed securities 5.9
  —
   5.9
   —
   —
 
Real estate investments 46.4
  13.6
   —
   —
   32.8
 
Combination debt/equity/other fund 15.9
  15.9
   —
   —
   —
 
Alternative investment funds 32.7
  —
   —
   —
   32.7
 
Cash and cash equivalents 35.6
  35.6
   —
   —
   —
 
Other 4.6
  —
   4.6
   —
   —
 
Total $848.4
  $482.0
   $154.6
   $—
   $211.8
 
(a)
In 2018, Evergy and Westar Energy re-evaluated the classification, within the fair value hierarchy, of their various fund investments within the Westar Energy Pension Plans. As a result, Evergy and Westar Energy determined that certain fund investments within the Westar Energy Pension Plans in the amount of $607.6 million as of December 31, 2017, should have been classified as Level 1, instead of Level 2. This determination is based on the fact that the fair value of these funds is based on daily published prices at which Evergy and Westar Energy are able to redeem their investments without restriction on a daily basis. Evergy and Westar Energy also determined that certain fund investments within the Westar Energy Pension Plans in the amount of $160.4 million as of December 31, 2017, should have been measured using the NAV per share (or its equivalent) practical expedient, instead of as a Level 2 investment. This determination is based on the fact that these funds do not meet the definition of readily determinable fair value due to the absence of a published NAV. Evergy and Westar Energy have determined that these errors are immaterial to their current and previously filed financial reports and accordingly, have not revised prior periods but have reflected the changes in fair value hierarchy classification as of December 31, 2018.





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The fair values of the Evergy Companies' post-retirement plan assets at December 31, 20182019 and 2017,2018, by asset category are in the following tables.
    Fair Value Measurements Using
 
 
Description
December 31
2019		Level 1 Level 2 Level 3 Assets measured at NAV
  (millions) 
Evergy Kansas Central Post-Retirement Benefit Plans 
                
Domestic equities $40.5
  $—
   $—
   $—
   $40.5
 
International equities 26.0
  —
   —
   —
   26.0
 
Bond funds 52.9
  —
   —
   —
   52.9
 
Cash and cash equivalents 1.1
  1.1
   —
   —
   —
 
Total $120.5
  $1.1
   $—
   $—
   $119.4
 
                   
Evergy Metro Post-Retirement Benefit Plans    

   

   

     
Domestic equities $3.2
  $3.2
   $—
   $—
   $—
 
International equities 1.1
  1.1
   —
   —
   —
 
Bond funds 77.5
  0.1
   —
   —
   77.4
 
Corporate bonds 17.8
  —
   17.8
   —
   —
 
U.S. Treasury and agency bonds 11.5
  4.1
   7.4
   —
   —
 
Mortgage and asset backed securities 1.3
  —
   1.3
   —
   —
 
Cash and cash equivalents 6.7
  6.7
   —
   —
   —
 
Other 0.3
  —
   0.3
   —
   —
 
Total $119.4
  $15.2
   $26.8
   $—
   $77.4
 
    Fair Value Measurements Using
 
 
Description
December 31
2018		Level 1 Level 2 Level 3 Assets measured at NAV
  (millions) 
Westar Energy Post-Retirement Benefit Plans 
                
Domestic equities $56.4
  $—
   $—
   $—
   $56.4
 
International equities 14.0
  —
   —
   —
   14.0
 
Bond funds 38.4
  —
   —
   —
   38.4
 
Short-term investments 0.7
  —
   —
   —
   0.7
 
Cash and cash equivalents 0.2
  0.2
   —
   —
   —
 
Total $109.7
  $0.2
   $—
   $—
   $109.5
 
                   
KCP&L Post-Retirement Benefit Plans    

   

   

     
Domestic equities $2.5
  $2.5
   $—
   $—
   $—
 
International equities 0.9
  0.9
   —
   —
   —
 
Bond funds 75.0
  0.2
   —
   —
   74.8
 
Corporate bonds 17.4
  —
   17.4
   —
   —
 
U.S. Treasury and agency bonds 10.3
  2.6
   7.7
   —
   —
 
Mortgage and asset backed securities 2.5
  —
   2.5
   —
   —
 
Cash and cash equivalents 4.7
  4.7
   —
   —
   —
 
Other 0.3
  —
   0.3
   —
   —
 
Total $113.6
  $10.9
   $27.9
   $—
   $74.8
 

    Fair Value Measurements Using
 
 
Description
December 31
2018		Level 1 Level 2 Level 3 Assets measured at NAV
  (millions) 
Evergy Kansas Central Post-Retirement Benefit Plans                  
Domestic equities $56.4
  $—
   $—
   $—
   $56.4
 
International equities 14.0
  —
   —
   —
   14.0
 
Bond funds 38.4
  —
   —
   —
   38.4
 
Short-term investments 0.7
  —
   —
   —
   0.7
 
Cash and cash equivalents 0.2
  0.2
   —
   —
   —
 
Total $109.7
  $0.2
   $—
   $—
   $109.5
 
                   
Evergy Metro Post-Retirement Benefit Plans                  
Domestic equities $2.5
  $2.5
   $—
   $—
   $—
 
International equities 0.9
  0.9
   —
   —
   —
 
Bond funds 75.0
  0.2
   —
   —
   74.8
 
Corporate bonds 17.4
  —
   17.4
   —
   —
 
U.S. Treasury and agency bonds 10.3
  2.6
   7.7
   —
   —
 
Mortgage and asset backed securities 2.5
  —
   2.5
   —
   —
 
Cash and cash equivalents 4.7
  4.7
   —
   —
   —
 
Other 0.3
  —
   0.3
   —
   —
 
Total $113.6
  $10.9
   $27.9
   $—
   $74.8
 



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    Fair Value Measurements Using
 
 
Description
December 31
2017		Level 1 Level 2 Level 3 Assets measured at NAV
  (millions) 
Westar Energy Post-Retirement Benefit Plans(a)
                  
Domestic equities $65.2
  $—
   $65.2
   $—
   $—
 
International equities 16.2
  —
   16.2
   —
   —
 
Bond funds 42.1
  —
   42.1
   —
   —
 
Cash and cash equivalents 0.6
  —
   0.6
   —
   —
 
Total $124.1
  $—
   $124.1
   $—
   $—
 
                   
KCP&L Post-Retirement Benefit Plans                  
Domestic equities $3.7
  $3.7
   $—
   $—
   $—
 
Bond funds 56.6
  0.2
   —
   —
   56.4
 
Corporate bonds 16.7
  —
   16.7
   —
   —
 
U.S. Treasury and agency bonds 8.5
  3.0
   5.5
   —
   —
 
Mortgage and asset backed securities 3.6
  —
   3.6
   —
   —
 
Cash and cash equivalents 25.3
  25.3
   —
   —
   —
 
Other 1.4
  —
   1.4
   —
   —
 
Total $115.8
  $32.2
   $27.2
   $—
   $56.4
 
(a)
In 2018, Evergy and Westar Energy re-evaluated the classification, within the fair value hierarchy, of their various fund investments within the Westar Energy Post-Retirement Benefit Plans. As a result, Evergy and Westar Energy determined that certain fund investments within the Westar Energy Post-Retirement Benefit Plans in the amount of $124.1 million as of December 31, 2017, should have been measured using the NAV per share (or its equivalent) practical expedient, instead of as a Level 2 investment. This determination is based on the fact that these funds do not meet the definition of readily determinable fair value due to the absence of a published NAV. Evergy and Westar Energy have determined that this error is immaterial to their current and previously filed financial reports and accordingly, have not revised prior periods but have reflected the changes in fair value hierarchy classification as of December 31, 2018.
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The cost trend assumptions are detailed in the following table.tables.
Assumed annual health care cost growth rates as of December 31, 2019 Evergy Evergy Kansas Central Evergy Metro
Health care cost trend rate assumed for next year 6.3% 6.3% 6.3%
Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.5% 4.5% 4.5%
Year that rate reaches ultimate trend 2027
 2027
 2027
       
Assumed annual health care cost growth rates as of December 31, 2018 Evergy Evergy Kansas Central Evergy Metro
Health care cost trend rate assumed for next year 6.5% 6.5% 6.5%
Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.5% 4.5% 4.5%
Year that rate reaches ultimate trend 2027
 2027
 2027

Assumed annual health care cost growth rates as of December 31, 2018 Evergy Westar Energy KCP&L
Health care cost trend rate assumed for next year 6.5% 6.5% 6.5%
Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.5% 4.5% 4.5%
Year that rate reaches ultimate trend 2027
 2027
 2027
       
Assumed annual health care cost growth rates as of December 31, 2017 Evergy Westar Energy KCP&L
Health care cost trend rate assumed for next year 6.0% 6.0% 6.8%
Rate to which the cost trend is assumed to decline (the ultimate trend rate) 5.0% 5.0% 4.5%
Year that rate reaches ultimate trend 2020
 2020
 2027
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The effects of a one-percentage point change in the assumed health care cost trend rates, holding all other assumptions constant, at December 31, 2018,2019, are detailed in the following table.
  Evergy 
Evergy Kansas Central(a)
 Evergy Metro
Effect of 1% increase (millions)
Effect on total service and interest component $—
 $—
 $—
Effect on post-retirement benefit obligation 0.5
 (0.1) 0.6
Effect of 1% decrease      
Effect on total service and interest component $—
 $—
 $—
Effect on post-retirement benefit obligation (0.4) 0.1
 (0.5)

  Evergy 
Westar Energy(a)
 KCP&L
Effect of 1% increase (millions)
Effect on total service and interest component $—
 $—
 $0.1
Effect on post-retirement benefit obligation 0.2
 (0.1) —
Effect of 1% decrease      
Effect on total service and interest component $—
 $—
 $0.3
Effect on post-retirement benefit obligation (0.1) 0.1
 (0.2)
(a)Westar EnergyEvergy Kansas Central includes only the effect of health care cost trend rates for Wolf Creek because the Westar EnergyEvergy Kansas Central post-retirement benefit plan includes a fixed monthly stipend for health care and therefore is not affected by changes in health care costs.
Employee Savings Plans
Evergy has defined contribution savings plans (401(k)) that cover substantially all employees. Evergy matches employee contributions, subject to limits. The annual costs of the plans are detailed in the following table. KCP&LEvergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, June 4, 2018, through December 31, 2018.and thereafter.
  2019 2018 2017
  (millions)
Evergy $17.6
 $16.3
 $9.7
Evergy Kansas Central 9.6
 9.9
 9.7
Evergy Metro 8.0
 8.3
 7.7
  2018 2017 2016
  (millions)
Evergy $16.3
 $9.7
 $9.6
Westar Energy 9.9
 9.7
 9.6
KCP&L 8.3
 7.7
 8.0

10.11. EQUITY COMPENSATION
Upon the consummation of the merger, Evergy assumed both Westar Energy'sEvergy Kansas Central's Long-Term Incentive and Share Award plan (LTISA) and Great Plains Energy's Amended Long-Term Incentive Plan, which was renamed the Evergy, Inc. Long-Term Incentive Plan. All outstanding share-based payment awards under Westar Energy'sEvergy Kansas Central's LTISA vested at the closing of the merger transaction and were converted into a right to receive Evergy common stock with the exception of certain RSUs and deferred director share units issued prior to the closing of the merger to certain directors, officers and employees of Westar Energy.Evergy Kansas Central. The vesting of these shares resulted

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in the recognition of $14.6 million of compensation expense in Evergy's and Westar Energy'sEvergy Kansas Central's consolidated statements of income and comprehensive income for 2018.

All of Great Plains Energy's outstanding performance shares, restricted stock, RSUs and director deferred share units under Great Plains Energy's Amended Long-Term Incentive Plan were converted into equivalent Evergy performance shares, restricted stock, RSUs and director deferred share units at Great Plains Energy's merger exchange ratio of 0.5981. The estimated fair value of these converted awards that was allocated to the purchase price was $12.5 million, after-tax. See Note 2 for more information regarding the merger.
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The following table summarizes the Evergy Companies' equity compensation expense and the associated income tax benefit.
  2019 2018 2017
Evergy (millions)
Equity compensation expense $15.5
 $30.7
 $8.9
Income tax benefit 3.0
 1.4
 3.5
Evergy Kansas Central      
Equity compensation expense 6.7
 24.8
 8.9
Income tax benefit 1.9
 1.4
 3.5
Evergy Metro(a)
      
Equity compensation expense 5.7
 6.5
 4.2
Income tax benefit 0.3
 0.1
 1.6

  2018 2017 2016
Evergy (millions)
Equity compensation expense $30.7
 $8.9
 $9.2
Income tax benefit 1.4
 3.5
 3.7
Westar Energy      
Equity compensation expense $24.8
 $8.9
 $9.2
Income tax benefit 1.4
 3.5
 3.7
KCP&L(a)
      
Equity compensation expense $6.5
 $4.2
 $3.2
Income tax benefit 0.1
 1.6
 1.0
(a) KCP&LEvergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, June 4, 2018, through December 31, 2018.and thereafter.
Restricted Share Units
Evergy has utilized RSUs for new grants of stock-based compensation awards subsequent to the merger. RSU awards are grants that entitle the holder to receive shares of common stock as the awards vest. These RSU awards are defined as nonvested shares and do not include restrictions once the awards have vested. These RSUs either take the form of RSUs with performance measures that vest upon expiration of the award term or RSUs with only service requirements that vest solely upon the passage of time.
RSUs with Performance SharesMeasures
The vestingpayment of RSUs with performance sharesmeasures is contingent upon achievement of specific performance goals over a stated period of time as approved by the Compensation and Leadership Development Committee of the Evergy Board. The numbernumbers of performance sharesRSUs with performances measures ultimately vestedpaid can vary from the numbernumbers of sharesRSUs with performance measures initially granted depending on either Great Plains Energy's performance prior to the closing of the merger transaction or Evergy's performance based on theover stated performance period of the awards.periods. Compensation expense for RSUs with performance sharesmeasures is calculated by recognizing the portion of the grant date fair value for each reporting period for which the requisite service has been rendered. Dividends are accrued over the vesting period and paid in cash based on the number of RSUs with performance sharesmeasures ultimately paid.
The fair value of the converted Great Plains EnergyRSUs with performance share awards wasmeasures is estimated using the market value of Westar Energy's and Great Plains Energy's commonEvergy's stock at the valuation date and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected volatilities, dividend yield and risk-free rates. Expected volatility is based on daily stock price change based on historical common stock information during a historical period commensurate with the remaining term of the performance period of the grant. The risk-free rate is based upon the rate at the time of the evaluation for zero-coupon government bonds with a maturity consistent with the remaining performance period of the grant. The dividend yield is based on the most recent dividends paid and the actual closing stock price on the valuation date. For shares granted in 2019, inputs for expected volatility, dividend yield and risk-free rates were 18%, 3.45% and 2.6%, respectively.

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RSU activity for awards with performance measures for 2019 is summarized in the following table.
 
Nonvested
Restricted Share Units
 
Grant Date
Fair Value*
Beginning balance January 1, 2019 —
   $—
 
Granted 202,107
   37.87
 
Forfeited (4,857)   37.87
 
Ending balance December 31, 2019 197,250
   37.87
 
* weighted-average
At December 31, 2019, the remaining weighted-average contractual term related to RSU awards with performance measures was 2.2 years.  The weighted-average grant-date fair value of RSUs granted with performance measures was $37.87 in 2019. At December 31, 2019, there was $5.4 million of unrecognized compensation expense related to unvested RSUs with performance measures. NaN RSUs with performance measures vested in 2019.
RSUs with Only Service Requirements
Evergy measures the fair value of RSUs with only service requirements based on the fair market value of the underlying common stock as of the grant date. RSU awards with only service conditions recognize compensation expense by Westarmultiplying shares by the grant-date fair value related to the RSU and recognizing it on a straight-line basis over the requisite service period for the entire award, including for those RSUs that have a graded vesting schedule. Nonforfeitable dividend equivalents, or the rights to receive cash equal to the value of dividends paid on Evergy's common stock, are paid on certain of these RSUs during the vesting period. Nonforfeitable dividend equivalents are recorded directly to retained earnings.
RSU activity for awards with only service requirements for 2019 is summarized in the following table.
 
Nonvested
Restricted Share Units
 
Grant Date
Fair Value*
Beginning balance January 1, 2019 217,256
   $54.07
 
Granted 70,395
   54.47
 
Vested (48,767)   54.20
 
Forfeited (5,534)   54.23
 
Ending balance December 31, 2019 233,350
   54.16
 
* weighted-average
At December 31, 2019, the remaining weighted-average contractual term related to RSU awards with only service requirements was 1.1 years.  The weighted-average grant-date fair value of RSUs granted with only service requirements was $54.47, $52.16 and $53.25 in 2019, 2018 and 2017, respectively. At December 31, 2019, there was $5.2 million of unrecognized compensation expense related to unvested RSUs. The total fair value of RSUs with only service requirements that vested was $2.6 million, $16.0 million and $6.1 million in 2019, 2018 and 2017, respectively.
Performance Shares
Evergy's performance shares represent legacy Great Plains Energy performance shares that converted into equivalent Evergy performance shares at the closing of the merger transaction. The vesting of performance shares is contingent upon achievement of specific performance goals over a stated period of time as approved by the Compensation and Leadership Development Committee of the Evergy Board. The number of performance shares ultimately vested can vary from the number of shares initially granted depending on Evergy's performance over stated performance periods. Compensation expense for performance shares is calculated by recognizing the portion of the grant date fair value for each reporting period for which the requisite service has been rendered. Dividends are accrued over the vesting period and paid in cash based on the number of performance shares ultimately paid.

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The fair value of performance share awards was estimated using the market value of Evergy Kansas Central's and Great Plains Energy's common stock at the valuation date upon conversion at the merger and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected volatilities, dividend yield and risk-free rates. Expected volatility was based on daily stock price change based on historical common stock information during a historical period commensurate with the remaining term of the performance period of the grant. The risk-free rate was based upon the rate at the time of the evaluation for zero-coupon government bonds with a maturity consistent with the remaining performance period of the grant. The dividend yield was based on the most recent dividends paid by Evergy Kansas Central, as Evergy's stock price assumes Westar Energy'sassumed Evergy Kansas Central's stock price on a forward basis, and the grant date stock price on the valuation date. For the Great Plains Energy performance shares converted into Evergy awards upon the closing of the merger, inputs for expected volatility, dividend yield, and risk-free rates were 16.6% - 18.5% , 2.96% and 1.8% - 2.6%, respectively. Evergy and Westar Energy did not have any performance share awards issued and outstanding prior to the close of the merger.
Performance share activity for 20182019 is summarized in the following table. Performance adjustment represents the difference between the number of shares of common stock related to performance shares ultimately issued from the number of performance shares initially granted which can vary depending on Evergy's performance over a stated period of time.
 
Performance
Shares
 
Grant Date
Fair Value*
Beginning balance January 1, 2018 —
   $—
 
Converted Great Plains Energy awards upon merger 351,708
   63.79
 
Forfeited (3,212)   63.44
 
Ending balance December 31, 2018 348,496
   63.80
 
 
Performance
Shares
 
Grant Date
Fair Value*
Beginning balance January 1, 2019 348,496
   $63.80
 
Vested (69,317)   46.11
 
Forfeited (6,481)   69.65
 
Performance adjustment (44,442)   42.97
 
Ending balance December 31, 2019 228,256
   73.06
 
* weighted-average
At December 31, 2018,2019, the remaining weighted-average contractual term was 1.00.5 years.  There were no shares granted in 2019. The weighted-average grant-date fair value of shares granted was $63.79 in 2018 was $63.79.2018. At December 31, 2018,2019, there was $6.6$2.2 million of total unrecognized compensation expense, net of forfeiture rates, related to converted Great Plains Energy performance
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shares granted under its Amendedthe Evergy, Inc. Long-Term Incentive Plan, which will be recognized over the remaining weighted-average contractual term. The total fair value of performance shares vested was $3.2 million in 2019. There were 0 vested performance shares in 2018.
Restricted Stock
Evergy's restricted stock represents legacy Great Plains Energy restricted stock that converted into equivalent Evergy restricted stock at the closing of the merger transaction. Restricted stock cannot be sold or otherwise transferred by the recipient prior to vesting and has a value equal to the fair market value of the shares on the issue date. Restricted stock shares vest over a stated period of time with accruing reinvested dividends subject to the same restrictions. Compensation expense, calculated by multiplying shares by the grant-date fair value related to restricted stock, is recognized on a straight-line basis over the requisite service period of the award. Evergy and Westar Energy did not have any restricted stock awards issued and outstanding prior to the close of the merger.
Restricted stock activity for 20182019 is summarized in the following table.
 
Nonvested
Restricted Stock
 
Grant Date
Fair Value*
Beginning balance January 1, 2018 —
   $—
 
Converted Great Plains Energy awards upon merger 122,505
   54.05
 
Vested (4,760)   54.50
 
Forfeited (1,070)   54.04
 
Ending balance December 31, 2018 116,675
   54.03
 
 
Nonvested
Restricted Stock
 
Grant Date
Fair Value*
Beginning balance January 1, 2019 116,675
   $54.03
 
Vested (38,404)   54.35
 
Forfeited (2,161)   53.88
 
Ending balance December 31, 2019 76,110
   53.87
 
* weighted-average
At December 31, 2018,2019, the remaining weighted-average contractual term was 1.20.7 years.  There were 0 shares granted in 2019. The weighted-average grant-date fair value of shares granted was $54.05 in 2018 was $54.05.2018. At December 31, 2018,2019, there was $2.6$0.8 million of total unrecognized compensation expense, net of forfeiture rates, related to converted Great Plains Energynonvested restricted stock granted under its Amendedthe Evergy, Inc. Long-Term Incentive Plan, which will be

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recognized over the remaining weighted-average contractual term. The total fair value of shares vested was $2.1 million and $0.3 million for 2018.2019 and 2018, respectively.
Restricted Share Units
Evergy and Westar Energy have historically used RSUs for their stock-based compensation awards. RSU awards are grants that entitle the holder to receive shares of common stock as the awards vest. These RSU awards are defined as nonvested shares and do not include restrictions once the awards have vested. These RSUs have either taken the form of RSUs with only service requirements that vest solely upon the passage of time or RSUs with performance measures that vest upon expiration of the award term. All issued and outstanding Evergy and Westar Energy RSU awards with performance measures vested in connection with the closing of the merger transaction in June 2018.
Evergy measures the fair value of RSUs with only service requirements based on the fair market value of the underlying common stock as of the grant date. RSU awards with only service conditions recognize compensation expense by multiplying shares by the grant-date fair value related to the RSU and recognizing it on a straight-line basis over the requisite service period for the entire award, including for those RSUs that have a graded vesting schedule. Nonforfeitable dividend equivalents, or the rights to receive cash equal to the value of dividends paid on Evergy's common stock, are paid on certain of these RSUs during the vesting period. Nonforfeitable dividend equivalents are recorded directly to retained earnings.
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RSU activity for awards with only service requirements for 2018 is summarized in the following table.
 
Nonvested
Restricted Share Units
 
Grant Date
Fair Value*
Beginning balance January 1, 2018 255,964
   $46.09
 
Granted 222,465
   52.16
 
Converted Great Plains Energy awards upon merger 82,331
   53.77
 
Vested (342,599)   46.81
 
Forfeited (905)   50.73
 
Ending balance December 31, 2018 217,256
   54.07
 
* weighted-average
At December 31, 2018, the remaining weighted-average contractual term related to RSU awards with only service requirements was 1.4 years.  The weighted-average grant-date fair value of RSUs granted with only service requirements was $52.16, $53.25 and $46.35 in 2018, 2017 and 2016, respectively. At December 31, 2018, there was $7.8 million of unrecognized compensation expense related to unvested RSUs. The total fair value of RSUs with only service requirements that vested was $16.0 million, $6.1 million and $5.2 million in 2018, 2017 and 2016, respectively.
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11.12. SHORT-TERM BORROWINGS AND SHORT-TERM BANK LINES OF CREDIT
In September 2018, Evergy entered into aEvergy's $2.5 billion master credit facility which expires in 2023. Evergy, Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy 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. A default by any borrower under the facility or one of their 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, Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West is required to maintain a total indebtedness to total capitalization ratio, as defined in the facility, of not greater than 0.65 to 1.00 at all times. As of December 31, 2018,2019, Evergy, Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West were in compliance with this covenant.
In connection with the entry into the master credit facility, each of Evergy (as successor to Great Plains Energy), Westar Energy, KCP&L and GMO terminated its existing credit facilities in September 2018.
The following table summarizes the committed credit facilities (excluding receivable sale facilities discussed in Note 4) available to the Evergy Companies as of December 31, 20182019 and 2017.2018.
  Amounts Drawn   
 Credit FacilityCommercial PaperLetters of CreditCash BorrowingsAvailable Borrowings Weighted Average Interest Rate on Short-Term Borrowings
December 31, 2018(millions)  
Evergy, Inc.$450.0
n/a$1.0
$—
$449.0
 —%
Westar Energy1,000.0
411.7
18.3
—
570.0
 3.08%
KCP&L600.0
176.9
2.7
—
420.4
 2.95%
GMO450.0
150.0
2.1
—
297.9
 3.00%
Evergy$2,500.0
$738.6
$24.1
$—
$1,737.3
  
        
December 31, 2017       
Westar Energy(b)
$979.3
$275.7
$11.8
$—
$691.8
 1.83%
KCP&L(a)
600.0
167.5
2.7
—
429.8
 1.95%
Evergy979.3
275.7
11.8
—
691.8
 1.83%
  Amounts Drawn   
 Credit FacilityCommercial PaperLetters of CreditCash BorrowingsAvailable Borrowings Weighted Average Interest Rate on Short-Term Borrowings
December 31, 2019(millions)  
Evergy, Inc.$450.0
n/a$0.7
$20.0
$429.3
 2.99%
Evergy Kansas Central1,000.0
249.2
14.2
—
736.6
 2.07%
Evergy Metro600.0
199.3
—
—
400.7
 2.02%
Evergy Missouri West450.0
93.4
2.1
—
354.5
 2.02%
Evergy$2,500.0
$541.9
$17.0
$20.0
$1,921.1
  
        
December 31, 2018       
Evergy, Inc.$450.0
n/a$1.0
$—
$449.0
 —%
Evergy Kansas Central1,000.0
411.7
18.3
—
570.0
 3.08%
Evergy Metro600.0
176.9
2.7
—
420.4
 2.95%
Evergy Missouri West450.0
150.0
2.1
—
297.9
 3.00%
Evergy$2,500.0
$738.6
$24.1
$—
$1,737.3
 
(a) KCP&L amounts areIn March 2019, Evergy entered into a $1.0 billion, 6-month term loan credit agreement with a group of banks to provide short-term financing for its common stock repurchase program. The agreement allowed for 2 term loans during the 6-month term of the agreement, in an aggregate principal amount not includedto exceed the credit limit of the agreement. At closing, Evergy borrowed $500.0 million under the agreement, allowing for 1 additional term loan borrowing in consolidateda principal amount up to $500.0 million, which was subsequently utilized in June 2019. In September 2019, Evergy asrepaid its $1.0 billion of December 31, 2017.
(b) $20.7 millionborrowings under the term loan credit agreement with proceeds from its issuance of Westar Energy's $730.0 million and $270.0 million revolving credit facilities expired$1.6 billion of senior notes in September 2017.2019.

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


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

December 31, 2018Issuing Entity Year Due Evergy Westar Energy KCP&L
Mortgage Bonds    (millions)
5.10% SeriesWestar Energy, Inc. 2020 $250.0
 $250.0
 $—
3.25% SeriesWestar Energy, Inc. 2025 250.0
 250.0
 —
2.55% SeriesWestar Energy, Inc. 2026 350.0
 350.0
 —
3.10% SeriesWestar Energy, Inc. 2027 300.0
 300.0
 —
4.125% SeriesWestar Energy, Inc. 2042 550.0
 550.0
 —
4.10% SeriesWestar Energy, Inc. 2043 430.0
 430.0
 —
4.625% SeriesWestar Energy, Inc. 2043 250.0
 250.0
 —
4.25% SeriesWestar Energy, Inc. 2045 300.0
 300.0
 —
6.70% SeriesKGE 2019 300.0
 300.0
 —
6.15% SeriesKGE 2023 50.0
 50.0
 —
6.53% SeriesKGE 2037 175.0
 175.0
 —
6.64% SeriesKGE 2038 100.0
 100.0
 —
4.30% SeriesKGE 2044 250.0
 250.0
 —
2.95% EIRR bondsKCP&L 2023 79.5
 —
 79.5
7.15% Series 2009A (8.59% rate)(a)
KCP&L 2019 400.0
 —
 400.0
9.44% SeriesGMO 2019-2021 3.4
 —
 —
Pollution Control Bonds         
2.46% Series(b)
Westar Energy, Inc. 2032 45.0
 45.0
 —
2.46% Series(b)
Westar Energy, Inc. 2032 30.5
 30.5
 —
2.46% Series(b)
KGE 2027 21.9
 21.9
 —
2.50% SeriesKGE 2031 50.0
 50.0
 —
2.46% Series(b)
KGE 2032 14.5
 14.5
 —
2.46% Series(b)
KGE 2032 10.0
 10.0
 —
1.865% Series 2007A and 2007B(b)
KCP&L 2035 146.5
 —
 146.5
2.75% Series 2008KCP&L 2038 23.4
 —
 23.4
Senior Notes         
3.15% SeriesKCP&L 2023 300.0
 —
 300.0
3.65% SeriesKCP&L 2025 350.0
 —
 350.0
6.05% Series (5.78% rate)(a)
KCP&L 2035 250.0
 —
 250.0
5.30% SeriesKCP&L 2041 400.0
 —
 400.0
4.20% SeriesKCP&L 2047 300.0
 —
 300.0
4.20% SeriesKCP&L 2048 300.0
 —
 300.0
8.27% SeriesGMO 2021 80.9
 —
 —
3.49% Series AGMO 2025 36.0
 —
 —
4.06% Series BGMO 2033 60.0
 —
 —
4.74% Series CGMO 2043 150.0
 —
 —
4.85% Series
Evergy, Inc.(g)
 2021 350.0
 —
 —
5.292% Series
Evergy, Inc.(g)
 2022 287.5
 —
 —
Medium Term Notes     
    
7.33% SeriesGMO 2023 3.0
 —
 —
7.17% SeriesGMO 2023 7.0
 —
 —
Fair value adjustment(f)
    144.8
 —
 —
Current maturities (c)
    (705.4) (300.0) (400.0)
Unamortized debt discount and debt issuance costs    (57.2) (37.1) (19.3)
Total excluding current maturities(d)
    $6,636.3
 $3,389.8
 $2,130.1

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December 31, 2018Issuing Entity Year Due Evergy Evergy Kansas Central Evergy Metro
Mortgage Bonds    (millions)
5.10% SeriesEvergy Kansas Central, Inc. 2020 $250.0
 $250.0
 $—
3.25% SeriesEvergy Kansas Central, Inc. 2025 250.0
 250.0
 —
2.55% SeriesEvergy Kansas Central, Inc. 2026 350.0
 350.0
 —
3.10% SeriesEvergy Kansas Central, Inc. 2027 300.0
 300.0
 —
4.125% SeriesEvergy Kansas Central, Inc. 2042 550.0
 550.0
 —
4.10% SeriesEvergy Kansas Central, Inc. 2043 430.0
 430.0
 —
4.625% SeriesEvergy Kansas Central, Inc. 2043 250.0
 250.0
 —
4.25% SeriesEvergy Kansas Central, Inc. 2045 300.0
 300.0
 —
6.70% SeriesEvergy Kansas South, Inc. 2019 300.0
 300.0
 —
6.15% SeriesEvergy Kansas South, Inc. 2023 50.0
 50.0
 —
6.53% SeriesEvergy Kansas South, Inc. 2037 175.0
 175.0
 —
6.64% SeriesEvergy Kansas South, Inc. 2038 100.0
 100.0
 —
4.30% SeriesEvergy Kansas South, Inc. 2044 250.0
 250.0
 —
2.95% EIRR bondsEvergy Metro, Inc. 2023 79.5
 —
 79.5
7.15% Series 2009A (8.59% rate)(a)
Evergy Metro, Inc. 2019 400.0
 —
 400.0
9.44% SeriesEvergy Missouri West, Inc. 2019-2021 3.4
 —
 —
Pollution Control Bonds         
2.46% Series(b)
Evergy Kansas Central, Inc. 2032 45.0
 45.0
 —
2.46% Series(b)
Evergy Kansas Central, Inc. 2032 30.5
 30.5
 —
2.46% Series(b)
Evergy Kansas South, Inc. 2027 21.9
 21.9
 —
2.50% SeriesEvergy Kansas South, Inc. 2031 50.0
 50.0
 —
2.46% Series(b)
Evergy Kansas South, Inc. 2032 14.5
 14.5
 —
2.46% Series(b)
Evergy Kansas South, Inc. 2032 10.0
 10.0
 —
1.865% Series 2007A and 2007B(b)
Evergy Metro, Inc. 2035 146.5
 —
 146.5
2.75% Series 2008Evergy Metro, Inc. 2038 23.4
 —
 23.4
Senior Notes         
3.15% SeriesEvergy Metro, Inc. 2023 300.0
 —
 300.0
3.65% SeriesEvergy Metro, Inc. 2025 350.0
 —
 350.0
6.05% Series (5.78% rate)(a)
Evergy Metro, Inc. 2035 250.0
 —
 250.0
5.30% SeriesEvergy Metro, Inc. 2041 400.0
 —
 400.0
4.20% SeriesEvergy Metro, Inc. 2047 300.0
 —
 300.0
4.20% SeriesEvergy Metro, Inc. 2048 300.0
 —
 300.0
8.27% SeriesEvergy Missouri West, Inc. 2021 80.9
 —
 —
3.49% Series AEvergy Missouri West, Inc. 2025 36.0
 —
 —
4.06% Series BEvergy Missouri West, Inc. 2033 60.0
 —
 —
4.74% Series CEvergy Missouri West, Inc. 2043 150.0
 —
 —
4.85% Series
Evergy, Inc.(f)
 2021 350.0
 —
 —
5.292% Series
Evergy, Inc.(f)
 2022 287.5
 —
 —
Medium Term Notes         
7.33% SeriesEvergy Missouri West, Inc. 2023 3.0
 —
 —
7.17% SeriesEvergy Missouri West, Inc. 2023 7.0
 —
 —
Fair value adjustment(e)
    144.8
 —
 —
Current maturities (c)
    (705.4) (300.0) (400.0)
Unamortized debt discount and debt issuance costs   (57.2) (37.1) (19.3)
Total excluding current maturities(d)
    $6,636.3
 $3,389.8
 $2,130.1
December 31, 2017Issuing Entity Year Due Evergy Westar Energy 
KCP&L(e)
Mortgage Bonds    (millions)
5.10% SeriesWestar Energy, Inc. 2020 $250.0
 $250.0
 $—
3.25% SeriesWestar Energy, Inc. 2025 250.0
 250.0
 —
2.55% SeriesWestar Energy, Inc. 2026 350.0
 350.0
 —
3.10% SeriesWestar Energy, Inc. 2027 300.0
 300.0
 —
4.125% SeriesWestar Energy, Inc. 2042 550.0
 550.0
 —
4.10% SeriesWestar Energy, Inc. 2043 430.0
 430.0
 —
4.625% SeriesWestar Energy, Inc. 2043 250.0
 250.0
 —
4.25% SeriesWestar Energy, Inc. 2045 300.0
 300.0
 —
6.70% SeriesKGE 2019 300.0
 300.0
 —
6.15% SeriesKGE 2023 50.0
 50.0
 —
6.53% SeriesKGE 2037 175.0
 175.0
 —
6.64% SeriesKGE 2038 100.0
 100.0
 —
4.30% SeriesKGE 2044 250.0
 250.0
 —
2.95% EIRR bondsKCP&L 2023 —
 —
 79.5
7.15% Series 2009A (8.59% rate)(a)
KCP&L 2019 —
 —
 400.0
Pollution Control Bonds         
1.92% Series(b)
Westar Energy, Inc. 2032 45.0
 45.0
 —
1.94% Series(b)
Westar Energy, Inc. 2032 30.5
 30.5
 —
2.00% Series(b)
KGE 2027 21.9
 21.9
 —
2.50% SeriesKGE 2031 50.0
 50.0
 —
2.00% Series(b)
KGE 2032 14.5
 14.5
 —
2.00% Series(b)
KGE 2032 10.0
 10.0
 —
1.329% Series 2007A and 2007B(b)
KCP&L 2035 —
 —
 146.5
2.875% Series 2008KCP&L 2038 —
 —
 23.4
Senior Notes         
6.375% Series (7.49% rate)(a)
KCP&L 2018 —
 —
 350.0
3.15% SeriesKCP&L 2023 —
 —
 300.0
3.65% SeriesKCP&L 2025 —
 —
 350.0
6.05% Series (5.78% rate)(a)
KCP&L 2035 —
 —
 250.0
5.30% SeriesKCP&L 2041 —
 —
 400.0
4.20% SeriesKCP&L 2047 —
 —
 300.0
Current maturities    —
 —
 (350.0)
Unamortized debt discount and debt issuance costs    (39.3) (39.3) (17.2)
Total excluding current maturities(d)
    $3,687.6
 $3,687.6
 $2,232.2

(a) 
Rate after amortizing gains/losses recognized in other comprehensive income (OCI)OCI on settlements of interest rate hedging instruments.
(b) 
Variable rate.
(c) 
Evergy's current maturities total as of December 31, 2018, includes $4.3 million of fair value adjustments recorded in connection with purchase accounting for the merger transaction.
(d) 
At December 31, 20182019 and 2017,2018, does not include $50.0 million and $21.9 million of secured Series 2005 Environmental Improvement Revenue Refunding (EIRR) bonds because the bonds were repurchased in September 2015 and are held by KCP&L.Evergy Metro.
(e) 
KCP&L amounts are not included in consolidated Evergy at December 31, 2017.
(f)
Represents the fair value adjustments recorded at Evergy consolidated related to the long-term debt of Great Plains Energy, KCP&LEvergy Metro and GMOEvergy Missouri West in connection with purchase accounting for the merger transaction. This amount is not part of future principal payments and will amortize over the remaining life of the associated debt instruments.
(g)(f) 
Originally issued by Great Plains Energy but assumed by Evergy, Inc. as part of the merger transaction.
(g)
Effectively secured pursuant to the General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented (Evergy Metro Mortgage Indenture) through the issuance of collateral mortgage bonds issued to the trustee for the unsecured senior notes in March 2019.

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The following table summarizes Evergy's and Westar Energy'sEvergy Kansas Central's long-term debt of VIEs.
   December 31 
  2019 2018
   (millions) 
2.398% due 2021  $51.1
   $81.4
 
Current maturities  (32.3)   (30.3) 
Total excluding current maturities  $18.8
   $51.1
 

   December 31 
  2018 2017
   (millions) 
2.398% due 2021  $81.4
   $109.9
 
Current maturities  (30.3)   (28.5) 
Total excluding current maturities  $51.1
   $81.4
 


Mortgage Bonds
The Westar EnergyEvergy Kansas Central and KGEEvergy Kansas South mortgages each contain provisions restricting the amount of first mortgage bonds (FMBs) that could be issued by each entity. Westar EnergyEvergy Kansas Central and KGEEvergy Kansas South must be in compliance with such restrictions prior to the issuance of additional first mortgage bonds or other secured indebtedness. The amount of Westar EnergyEvergy Kansas Central FMBs authorized by its Mortgage and Deed of Trust, dated July 1, 1939, as supplemented, is subject to certain limitations as described below. The amount of KGEEvergy Kansas South FMBs authorized by the KGEEvergy Kansas South Mortgage and Deed of Trust, dated April 1, 1940, as supplemented and amended, is limited to a maximum of $3.5 billion, unless amended further. FMBs are secured by utility assets. Amounts of additional FMBs that may be issued are subject to property, earnings and certain restrictive provisions, except in connection with certain refundings, of each mortgage. As of December 31, 20182019, approximately $344.5305.4 million and $2,828.6 million principal amountamounts of additional Westar EnergyEvergy Kansas Central FMBs or Evergy Kansas South FMBs, respectively, could be issued under the most restrictive provisions in Westar Energy's mortgage. As of December 31, 2018, KGE had sufficient capacity under the most restrictive provisions in the mortgage to meet its near term financing and refinancing needs.their mortgages.
KCP&LEvergy Metro has issued mortgage bonds under the GeneralEvergy Metro Mortgage Indenture, and Deed of Trust dated as of December 1, 1986, as supplemented, which creates a mortgage lien on substantially all of KCP&L'sEvergy Metro's utility plant. Additional KCP&L mortgageEvergy Metro bonds may be issued on the basis of 75% of property additions or retired bonds. As of December 31, 2018, KCP&L had sufficient capacity2019, approximately $4,923.3 million principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage to meet its near term financing and refinancing needs.mortgage.
GMOEvergy Missouri West has issued mortgage bonds under the General Mortgage Indenture and Deed of Trust dated April 1, 1946, as supplemented, which creates a mortgage lien on a portion of GMO'sEvergy Missouri West's utility plant.
Pollution ControlIn March 2019, Evergy Metro issued collateral mortgage bonds secured by the Evergy Metro Mortgage Indenture to serve as collateral for Evergy Metro's obligations under the following outstanding unsecured senior notes:
•
$300.0 million of 3.15% Series, maturing in 2023;
•
$350.0 million of 3.65% Series, maturing in 2025;
•
$250.0 million of 6.05% Series, maturing in 2035;
•
$400.0 million of 5.30% Series, maturing in 2041;
•
$300.0 million of 4.20% Series, maturing in 2047; and
•
$300.0 million of 4.20% Series, maturing in 2048.
The collateral mortgage bonds were issued to the applicable trustee for the unsecured senior notes, are only payable if Evergy Metro defaults on the underlying unsecured senior notes and do not increase the amount of outstanding debt for Evergy Metro.
As a result of the above transactions, Evergy Metro's outstanding senior notes have effectively become secured by the mortgage lien of the Evergy Metro Mortgage Indenture and rank equally and ratably with all of Evergy Metro's mortgage bonds, regardless of series, from time to time issued and outstanding under the Evergy Metro Mortgage Indenture.    
Also in March 2019, Evergy Metro issued, at a discount, $400.0 million of 4.125% Mortgage Bonds,
In July 2018, KCP&L remarketed its unsecured Series 2008 EIRR bonds maturing in 2038 totaling $23.42049. Evergy Metro also repaid its $400.0 million of 7.15% Mortgage Bonds at a fixed rate of 2.75% through June 30, 2022.maturity in April 2019.
In December 2018, KCP&L remarketed its unsecured Series 2007A and 2007B EIRR bonds maturing in 2035 totaling $146.5 million at a variable rate that will be determined weekly.
In December 2018, Westar Energy, Inc. remarketed its Series 1994 pollution control bonds maturing in 2032 totaling $45.0 million and $30.5 million, collateralized by Westar Energy FMBs, at variable rates that will be determined weekly.
In December 2018, KGE remarketed the following series of pollution control bonds, which are collateralized by KGE FMBs:
Series 1994 maturing in 2032 totaling $14.5 million and $10.0 million at variable rates that will be determined weekly; and
Series 1994B maturing in 2027 totaling $21.9 million at a variable rate that will be determined weekly.
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In June 2019, Evergy Kansas South repaid its $300.0 million of 6.70% FMBs at maturity.
In August 2019, Evergy Kansas Central issued, at a discount, $300.0 million of 3.25% FMBs, maturing in 2049.
Senior Notes
Under the terms of the note purchase agreement for GMO'sEvergy Missouri West's Series A, B and C Senior Notes, GMOEvergy Missouri West is required to maintain a consolidated indebtedness to consolidated capitalization ratio, as defined in the agreement, not greater than 0.65 to 1.00. In addition, GMO'sEvergy Missouri West's priority debt, as defined in the agreement, cannot exceed 15% of consolidated tangible net worth, as defined in the agreement. At December 31, 2018, GMO2019, Evergy Missouri West was in compliance with these covenants.
In March 2018, KCP&L2019, Evergy Missouri West issued $100.0 million of 3.74% Senior Notes, maturing in 2022, under a note purchase agreement.
In September 2019, Evergy issued, at a discount, $300.0$800.0 million of 4.20% unsecured2.45% Senior Notes, maturing in 2048. KCP&L also repaid its $350.02024 and $800.0 million of 6.375% unsecured2.90% Senior Notes, at maturitymaturing in March 2018.
As a result of the consummation of the merger transaction, a change in control provision in GMO's Series A, B and C Senior Notes was triggered that allowed holders a one-time option to elect for early repayment of their notes at par value, plus accrued interest. Several holders of GMO's Series A and B Senior Notes elected this option and in July 2018, GMO redeemed $89.0 million of its Series A Senior Notes and $15.0 million of its Series B Senior Notes.2029.
Scheduled Maturities
Evergy's, Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's long-term debt maturities and the long-term debt maturities of VIEs for the next five years are detailed in the following table.
 2019 2020 2021 2022 2023 2020 2021 2022 2023 2024
 (millions) (millions)
Evergy(a)
 $701.1
 $251.1
 $432.0
 $287.5
 $439.5
 $251.1
 $432.0
 $387.5
 $439.5
 $800.0
Westar Energy(a)
 300.0
 250.0
 —
 —
 50.0
KCP&L 400.0
 —
 —
 —
 379.5
Evergy Kansas Central(a)
 250.0
 —
 —
 50.0
 —
Evergy Metro —
 —
 —
 379.5
 —
VIEs 30.3
 32.3
 18.8
 —
 —
 32.3
 18.8
 —
 —
 —
(a)Excludes long-term debt maturities of VIEs.
13.14. FAIR VALUE MEASUREMENTS
Values of Financial Instruments
GAAP establishes a hierarchical framework for disclosing the transparency of the inputs utilized in measuring assets and liabilities at fair value. Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy levels. In addition, the Evergy Companies measure certain investments that do not have a readily determinable fair value at NAV, which are not included in the fair value hierarchy. Further explanation of these levels and NAV is summarized below.
Level 1 – Quoted prices are available in active markets for identical assets or liabilities. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on public exchanges.
Level 2 –  Pricing inputs are not quoted prices in active markets but are either directly or indirectly observable. The types of assets and liabilities included in Level 2 are certain marketable debt securities, financial instruments traded in less than active markets or other financial instruments priced with models using highly observable inputs.
Level 3 – Significant inputs to pricing have little or no transparency. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation.
NAV - Investments that do not have a readily determinable fair value are measured at NAV. These investments do not consider the observability of inputs and, therefore, they are not included within the fair value hierarchy. The Evergy Companies include in this category investments in private equity, real estate and alternative investment

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funds that do not have a readily determinable fair value. The underlying alternative investments include collateralized debt obligations, mezzanine debt and a variety of other investments.
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The Evergy Companies record cash and cash equivalents, accounts receivable and short-term borrowings on their consolidated balance sheets at cost, which approximates fair value due to the short-term nature of these instruments.
Interest Rate Derivatives
The Evergy Companies are exposed to market risks arising from changes in interest rates and may use derivative instruments to manage these risks. From time to time, thisrisk management activities may include entering into interest rate swap agreements to protect against unfavorable interest rate changes relating to forecasted debt transactions. These interest rate swap agreements can be designated as cash flow hedges, in which case gains and losses on the interest rate swaps are deferred in other comprehensive income to be recognized as an adjustment to interest expense over the same period that the hedged interest payments affect earnings. The Evergy Companies classify all cash inflows and outflows for interest rate swap agreements accounted for as cash flow hedges of forecasted debt transactions as financing activities on their consolidated statements of cash flows.


In December 2018,September 2019, Evergy entered intoissued $800.0 million of 2.90% Senior Notes maturing in 2029 and paid $69.8 million to settle an interest rate swap agreement with a notional amount of $500.0 million that has beenwas designated as a cash flow hedge of a forecastedinterest payments on the debt issuance in 2019. As of December 31, 2018,issuance. Evergy entered into the interest rate swap had a fair value of $5.4 million and was recorded within other current liabilities on Evergy's consolidated balance sheet. For 2018, Evergy recorded a corresponding $5.4agreement in December 2018. The $69.8 million pre-tax loss was recorded in other comprehensive loss on Evergy's consolidated statements of comprehensive income and is being reclassified from accumulated other comprehensive loss to interest expense over the ten-year term of the debt. For 2019, $2.0 million and ($0.5) million were reclassified from accumulated other comprehensive loss to interest expense and income tax expense, respectively, on Evergy's consolidated statements of comprehensive income. As of December 31, 2019, Evergy expects to amortize $5.2 million to earnings from accumulated other comprehensive loss over the next twelve months.
Fair Value of Long-Term Debt
The Evergy Companies measure the fair value of long-term debt using Level 2 measurements available as of the measurement date. The book value and fair value of the Evergy Companies' long-term debt and long-term debt of variable interest entities is summarized in the following table.
 December 31 December 31
 2018 2017 2019 2018
 Book Value Fair Value Book Value Fair Value Book Value Fair Value Book Value Fair Value
Long-term debt(a)
 (millions) (millions)
Evergy(b)
 $7,341.7
 $7,412.1
 $3,687.6
 $4,010.6
 $8,997.8
 $9,750.2
 $7,341.7
 $7,412.1
Westar Energy 3,689.8
 3,771.3
 3,687.6
 4,010.6
KCP&L(c)
 2,530.1
 2,637.5
 2,582.2
 2,799.1
Evergy Kansas Central 3,686.1
 4,078.8
 3,689.8
 3,771.3
Evergy Metro 2,525.0
 2,932.2
 2,530.1
 2,637.5
Long-term debt of variable interest entities(a)
                
Evergy $81.4
 $81.3
 $109.9
 $110.8
 $51.1
 $51.5
 $81.4
 $81.3
Westar Energy 81.4
 81.3
 109.9
 110.8
Evergy Kansas Central 51.1
 51.5
 81.4
 81.3
(a) Includes current maturities.
(b) Book value as of December 31, 2019 and 2018, includes $125.5 million and $144.8 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy and Westar EnergyEvergy Kansas Central merger, which are not part of future principal payments and will amortize over the remaining life of the associated debt instrument. See Note 2 for more information regarding the merger transaction.
(c) KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.

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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.
DescriptionDecember 31, 2018 Level 1 Level 2Level 3NAVDecember 31, 2019 Level 1 Level 2Level 3NAV
Westar Energy (millions)
Evergy Kansas Central (millions)
Assets                      
Nuclear decommissioning trust(a)
                      
Domestic equity funds $70.6
 $63.9
 $—
 $—
 $6.7
  $86.1
 $78.6
 $—
 $—
 $7.5
 
International equity funds 36.2
 36.2
 —
 —
 —
  52.0
 52.0
 —
 —
 —
 
Core bond fund 37.5
 37.5
 —
 —
 —
  39.3
 39.3
 —
 —
 —
 
High-yield bond fund 18.9
 18.9
 —
 —
 —
  22.3
 22.3
 —
 —
 —
 
Emerging markets bond fund 15.4
 15.4
 —
 —
 —
  19.4
 19.4
 —
 —
 —
 
Combination debt/equity/other fund 12.9
 12.9
 —
 —
 —
  16.4
 16.4
 —
 —
 —
 
Alternative investments fund 24.1
 —
 —
 —
 24.1
  23.9
 —
 —
 —
 23.9
 
Real estate securities fund 11.8
 —
 —
 —
 11.8
  12.6
 —
 —
 —
 12.6
 
Cash equivalents 0.1
 0.1
 —
 —
 —
  0.5
 0.5
 —
 —
 —
 
Total nuclear decommissioning trust 227.5
 184.9
 —
 —
 42.6
  272.5
 228.5
 —
 —
 44.0
 
Rabbi trust                      
Core bond fund 24.8
 —
 —
 —
 24.8
  25.3
 —
 —
 —
 25.3
 
Combination debt/equity/other fund 5.6
 —
 —
 —
 5.6
  6.3
 —
 —
 —
 6.3
 
Cash equivalents 0.2
 0.2
 —
 —
 —
  0.1
 0.1
 —
 —
 —
 
Total rabbi trust 30.6
 0.2
 —
 —
 30.4
  31.7
 0.1
 —
 —
 31.6
 
Total $258.1
 $185.1
 $—
 $—
 $73.0
  $304.2
 $228.6
 $—
 $—
 $75.6
 
KCP&L           
Evergy Metro           
Assets                      
Nuclear decommissioning trust(a)
                      
Equity securities $166.6
 $166.6
 $—
 $—
 $—
  $211.1
 $211.1
 $—
 $—
 $—
 
Debt securities 

          

         
U.S. Treasury 42.1
 42.1
 —
 —
 —
  50.3
 50.3
 —
 —
 —
 
U.S. Agency 0.4
 —
 0.4
 —
 —
  0.4
 —
 0.4
 —
 —
 
State and local obligations 2.1
 —
 2.1
 —
 —
  2.2
 —
 2.2
 —
 —
 
Corporate bonds 30.9
 —
 30.9
 —
 —
  33.2
 —
 33.2
 —
 —
 
Foreign governments 0.1
 —
 0.1
 —
 —
  0.1
 —
 0.1
 —
 —
 
Cash equivalents 1.7
 1.7
 —
 —
 —
  3.1
 3.1
 —
 —
 —
 
Other 0.7
 0.7
 —
 —
 —
  0.3
 —
 0.3
 —
 —
 
Total nuclear decommissioning trust 244.6
 211.1
 33.5
 —
 —
  300.7
 264.5
 36.2
 —
 —
 
Self-insured health plan trust(b)
                      
Equity securities 0.5
 0.5
 —
 —
 —
  0.5
 0.5
 —
 —
 —
 
Debt securities 3.9
 0.3
 3.6
 —
 —
  6.7
 1.4
 5.3
 —
 —
 
Cash and cash equivalents 8.0
 8.0
 —
 —
 —
  2.7
 2.7
 —
 —
 —
 
Total self-insured health plan trust 12.4
 8.8
 3.6
 —
 —
  9.9
 4.6
 5.3
 —
 —
 
Total $257.0
 $219.9
 $37.1
 $—
 $—
  $310.6
 $269.1
 $41.5
 $—
 $—
 
Other Evergy                      
Assets                      
Rabbi trusts                      
Fixed income fund $13.2
 $—
 $—
 $—
 $13.2
  $13.3
 $—
 $—
 $—
 $13.3
 
Cash and cash equivalents 0.5
 0.5
 —
 —
 —
 
Total rabbi trusts $13.2
 $—
 $—
 $—
 $13.2
  $13.8
 $0.5
 $—
 $—
 $13.3
 
Liabilities           
Interest rate swaps (e)
 $5.4
 $—
 $5.4
 $—
 $—
 
Total $5.4
 $—
 $5.4
 $—
 $—
 
Evergy  
  
  
  
     
  
  
  
   
Assets  
  
  
  
     
  
  
  
   
Nuclear decommissioning trust (a)
 $472.1
 $396.0
 $33.5
 $—
 $42.6
  $573.2
 $493.0
 $36.2
 $—
 $44.0
 
Rabbi trusts 43.8
 0.2
 —
 —
 43.6
  45.5
 0.6
 —
 —
 44.9
 
Self-insured health plan trust (b)
 12.4
 8.8
 3.6
 —
 —
  9.9
 4.6
 5.3
 —
 —
 
Total $528.3
 $405.0
 $37.1
 $—
 $86.2
  $628.6
 $498.2
 $41.5
 $—
 $88.9
 
Liabilities           
Interest rate swaps (e)
 $5.4
 $—
 $5.4
 $—
 $—
 
Total $5.4
 $—
 $5.4
 $—
 $—
 

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DescriptionDecember 31, 2018Level 1Level 2Level 3NAV
Evergy Kansas Central (millions)
Assets               
Nuclear decommissioning trust(a)
               
Domestic equity funds $70.6
  $63.9
  $—
  $—
  $6.7
 
International equity funds 36.2
  36.2
  —
  —
  —
 
Core bond fund 37.5
  37.5
  —
  —
  —
 
High-yield bond fund 18.9
  18.9
  —
  —
  —
 
Emerging markets bond fund 15.4
  15.4
  —
  —
  —
 
Combination debt/equity/other fund 12.9
  12.9
  —
  —
  —
 
Alternative investments fund 24.1
  —
  —
  —
  24.1
 
Real estate securities fund 11.8
  —
  —
  —
  11.8
 
Cash equivalents 0.1
  0.1
  —
  —
  —
 
Total nuclear decommissioning trust 227.5
  184.9
  —
  —
  42.6
 
Rabbi trust               
Core bond fund 24.8
  —
  —
  —
  24.8
 
Combination debt/equity/other fund 5.6
  —
  —
  —
  5.6
 
Cash equivalents 0.2
  0.2
  —
  —
  —
 
Total rabbi trust 30.6
  0.2
  —
  —
  30.4
 
Total $258.1
  $185.1
  $—
  $—
  $73.0
 
Evergy Metro               
Assets               
Nuclear decommissioning trust(a)
               
Equity securities $166.6
  $166.6
  $—
  $—
  $—
 
Debt securities  
   
   
   
   
 
U.S. Treasury 42.1
  42.1
  —
  —
  —
 
U.S. Agency 0.4
  —
  0.4
  —
  —
 
State and local obligations 2.1
  —
  2.1
  —
  —
 
Corporate bonds 30.9
  —
  30.9
  —
  —
 
Foreign governments 0.1
  —
  0.1
  —
  —
 
Cash equivalents 1.7
  1.7
  —
  —
  —
 
Other 0.7
  0.7
  —
  —
  —
 
Total nuclear decommissioning trust 244.6
  211.1
  33.5
  —
  —
 
Self-insured health plan trust(b)
               
Equity securities 0.5
  0.5
  —
  —
  —
 
Debt securities 3.9
  0.3
  3.6
  —
  —
 
Cash and cash equivalents 8.0
  8.0
  —
  —
  —
 
Total self-insured health plan trust 12.4
  8.8
  3.6
  —
  —
 
Total $257.0
  $219.9
  $37.1
  $—
  $—
 
Other Evergy               
Assets               
Rabbi trusts               
Fixed income fund $13.2
  $—
  $—
  $—
  $13.2
 
Total rabbi trusts $13.2
  $—
  $—
  $—
  $13.2
 
Liabilities               
Interest rate swaps(c)
 $5.4
  $—
  $5.4
  $—
  $—
 
Total $5.4
  $—
  $5.4
  $—
  $—
 
Evergy  
   
   
   
    
Assets  
   
   
   
    
Nuclear decommissioning trust(a)
 $472.1
  $396.0
  $33.5
  $—
  $42.6
 
Rabbi trust 43.8
  0.2
  —


—
  43.6
 
Self-insured health plan trust(b)
 12.4
  8.8
  3.6
  —
  —
 
Total $528.3
  $405.0
  $37.1
  $—
  $86.2
 
Liabilities               
Interest rate swaps(c)
 $5.4
  $—
  $5.4
  $—
  $—
 
Total $5.4
  $—
  $5.4
  $—
  $—
 
DescriptionDecember 31, 2017Level 1Level 2Level 3NAV
Westar Energy (millions)
Assets               
Nuclear decommissioning trust(a)(c)
               
Domestic equity funds $73.8
  $—
  $68.7
  $—
  $5.1
 
International equity funds 47.9
  —
  47.9
  —
  —
 
Core bond fund 33.3
  —
  33.3
  —
  —
 
High-yield bond fund 18.1
  —
  18.1
  —
  —
 
Emerging markets bond fund 17.3
  —
  17.3
  —
  —
 
Combination debt/equity/other fund 14.1
  —
  14.1
  —
  —
 
Alternative investments fund 21.7
  —
  —
  —
  21.7
 
Real estate securities fund 10.8
  —
  —
  —
  10.8
 
Cash equivalents 0.1
  0.1
  —
  —
  —
 
Total nuclear decommissioning trust 237.1
  0.1
  199.4
  —
  37.6
 
Rabbi trust(c)
               
Core bond fund 27.3
  —
  27.3
  —
  —
 
Combination debt/equity/other fund 6.8
  —
  6.8
  —
  —
 
Cash equivalents 0.2
  0.2
  —
  —
  —
 
Total rabbi trust 34.3
  0.2
  34.1
  —
  —
 
Total $271.4
  $0.3
  $233.5
  $—
  $37.6
 
KCP&L(d)
               
Assets               
Nuclear decommissioning trust (a)
               
Equity securities $183.8
  $183.8
  $—
  $—
  $—
 
Debt securities  
   
   
   
   
 
U.S. Treasury 35.3
  35.3
  —
  —
  —
 
U.S. Agency 0.4
  —
  0.4
  —
  —
 
State and local obligations 2.1
  —
  2.1
  —
  —
 
Corporate bonds 34.1
  —
  34.1
  —
  —
 
Foreign governments 0.1
  —
  0.1
  —
  —
 
Cash equivalents 2.5
  2.5
  —
  —
  —
 
Other 0.1
  0.1
  —
  —
  —
 
Total nuclear decommissioning trust 258.4
  221.7
  36.7
  —
  —
 
Self-insured health plan trust(b)
               
Equity securities 0.5
  0.5
  —
  —
  —
 
Debt securities 2.7
  0.3
  2.4
  —
  —
 
Cash and cash equivalents 7.7
  7.7
  —
  —
  —
 
Total self-insured health plan trust 10.9
  8.5
  2.4
  —
  —
 
Total $269.3
  $230.2
  $39.1
  $—
  $—
 
Evergy  
   
   
   
    
Assets  
   
   
   
    
Nuclear decommissioning trust(a)(c)
 $237.1
  $0.1
  $199.4
  $—
  $37.6
 
Rabbi trust(c)
 34.3
  0.2
  34.1
  —
  —
 
Total $271.4
  $0.3
  $233.5
  $—
  $37.6
 

(a) 
Fair value is based on quoted market prices of the investments held by the trust and/or valuation models.  
(b) 
Fair value is based on quoted market prices of the investments held by the trust. Debt securities classified as Level 1 are comprised of U.S. Treasury securities. Debt securities classified as Level 2 are comprised of corporate bonds, U.S. Agency, state and local obligations, and other asset-backed securities.
(c) 
In the second quarter of 2018, Evergy and Westar Energy re-evaluated the classification, within the fair value hierarchy, of their various fund investments within both Westar Energy's nuclear decommissioning trust and rabbi trusts. As a result, Evergy and Westar Energy determined that certain fund investments within the nuclear decommissioning trust in the amount of $199.4 million as of December 31, 2017, should have been classified as Level 1, instead of Level 2. This determination is based on the fact that the fair value of these funds is based on daily published prices at which Evergy and Westar Energy are able to redeem their investments without restriction on a daily basis. Evergy and Westar Energy also determined that certain fund investments within their rabbi trusts in the amount of $34.1 million as of December 31, 2017, should have been measured using the NAV per share (or its equivalent) practical expedient, instead of as a Level 2 investment. This determination is based on the fact that these funds do not meet the definition of readily determinable fair value due to the absence of a published NAV. Evergy and Westar Energy have determined that these errors are immaterial to their current and previously filed financial reports and accordingly, have not revised prior periods but have reflected the changes in fair value hierarchy classification as of December 31, 2018.
(d)
KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.
(e)
The fair value of interest rate swaps are determined by calculating the net present value of expected payments and receipts under the interest rate swaps using observable market inputs including interest rates and LIBORLondon Interbank Offered Rate (LIBOR) swap rates.

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Certain Evergy and Westar EnergyEvergy Kansas Central investments included in the table above are measured at NAV as they do not have readily determinable fair values. In certain situations, these investments may have redemption restrictions.
The following table provides additional information on these Evergy and Westar EnergyEvergy Kansas Central investments.
December 31, 2018 December 31, 2017 December 31, 2018December 31, 2019 December 31, 2018 December 31, 2019
Fair Unfunded Fair Unfunded Redemption Length ofFair Unfunded Fair Unfunded Redemption Length of
Value Commitments Value Commitments Frequency SettlementValue Commitments Value Commitments Frequency Settlement
Westar Energy(millions) 
Evergy Kansas Central(millions) 
Nuclear decommissioning trust:    
Domestic equity funds$6.7
 $4.3
 $5.1
 $2.8
 (a) (a)$7.5
 $3.3
 $6.7
 $4.3
 (a) (a)
Alternative investments fund(b)
24.1
 —
 21.7
 —
 Quarterly 65 days23.9
 —
 24.1
 —
 Quarterly 65 days
Real estate securities fund(b)
11.8
 —
 10.8
 —
 Quarterly 65 days12.6
 —
 11.8
 —
 Quarterly 65 days
Total$42.6
 $4.3
 $37.6
 $2.8
 $44.0
 $3.3
 $42.6
 $4.3
 
Rabbi trust:                
Core bond fund$24.8
 $—
 $—
 $—
 (c) (c)$25.3
 $—
 $24.8
 $—
 (c) (c)
Combination debt/equity/other fund5.6
 —
 —
 —
 (c) (c)6.3
 —
 5.6
 —
 (c) (c)
Total$30.4
 $—
 $—
 $—
 $31.6
 $—
 $30.4
 $—
 
Other Evergy                
Rabbi trusts:                
Fixed income fund(d)
$13.2
 $—
 $—
 $—
 (c) (c)$13.3
 $—
 $13.2
 $—
 (c) (c)
Total Evergy investments at NAV$86.2
 $4.3
 $37.6
 $2.8
 $88.9
 $3.3
 $86.2
 $4.3
 
(a) 
This investment is in five5 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. ThreeNaN funds have begun to make distributions. The initial investment in the fourth and fifth fund occurred in the second quarter of 2016 and first quarter of 2018, respectively. The fourth fund's term is 15 years, subject to the general partner's right to extend the term for up to three3 additional one-year periods.  The fifth fund's term will be 15 years after the initial closing date, subject to additional extensions approved by the Advisory Committeea 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.
(d)
This investment is recorded at GMO. GMO amounts are not included in consolidated Evergy as of December 31, 2017.

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The Evergy Companies hold equity and debt investments classified as securities in various trusts including for the purposes of funding the decommissioning of Wolf Creek and for the benefit of certain retired executive officers of Westar Energy.Evergy Kansas Central. The Evergy Companies record net realized and unrealized gains and losses on the nuclear decommissioning trusts in regulatory liabilities on their consolidated balance sheets and record net realized and unrealized gains and losses on Westar Energy'sthe Evergy Companies' rabbi trusttrusts in the consolidated statements of income and comprehensive income.
The following table summarizes the net unrealized gains (losses) for the Evergy Companies' nuclear decommissioning trusts and rabbi trusts.
 2018 2017 2016 2019 2018 2017
Westar Energy (millions)
Evergy Kansas Central(millions)
Nuclear decommissioning trust - equity securities $(31.8) $15.7
 $9.0
 $33.3
 $(31.8) 15.7
Rabbi trust 1.0
 (14.3) 1.4
Rabbi trust - equity securities 3.2
 1.0
 (14.3)
Total $(30.8) $1.4
 $10.4
 $36.5
 $(30.8) $1.4
KCP&L(a)
      
Evergy Metro(a)
      
Nuclear decommissioning trust - equity securities $(20.7) $26.7
 $14.8
 $40.7
 $(20.7) 26.7
Nuclear decommissioning trust - debt securities (2.5) 0.5
 (0.3) 5.1
 (2.5) 0.5
Total $(23.2) $27.2
 $14.5
 $45.8
 $(23.2) $27.2
Evergy            
Nuclear decommissioning trust - equity securities $(54.1) $15.7
 $9.0
 $74.0
 $(54.1) 15.7
Nuclear decommissioning trust - debt securities (0.5) —
 —
 5.1
 (0.5) —
Rabbi trusts 1.0
 (14.3) 1.4
Rabbi trusts - equity securities 3.1
 1.0
 (14.3)
Total $(53.6) $1.4
 $10.4
 $82.2
 $(53.6) $1.4
(a) KCP&LEvergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, June 4, 2018 through December 31, 2018.and thereafter.
14.15. COMMITMENTS AND CONTINGENCIES
Environmental Matters
Set forth below are descriptions of contingencies related to environmental matters that may impact the Evergy Companies' operations or their financial results. Management's assessment of these contingencies, which are based on federal and state statutes and regulations, and regulatory agency and judicial interpretations and actions, has evolved over time. These laws and regulations can also change, restrict or otherwise impact the Evergy Companies' operations or financial results in many ways, including the handling or disposal of waste material and the planning for future construction activities. The failure to comply with these laws and regulations could result in the assessment of administrative, civil and criminal penalties and/or the imposition of remedial requirements. The Evergy Companies believe that all of their operations are in substantial compliance with current federal, state and local environmental standards.
There are a variety of final and proposed laws and regulations that could have a material adverse effect on the Evergy CompaniesCompanies' 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 Air Pollution Update Rule
In September 2016, the Environmental Protection Agency (EPA) finalized the Cross-State Air Pollution (CSAPR) Update Rule (CSAPR).Rule. The final rule addresses interstate transport of nitrogen oxides emissions in 22 states including Kansas, Missouri and Oklahoma during the ozone season and the impact from the formation of ozone on downwind states with respect to the 2008 ozone National Ambient Air Quality Standards (NAAQS). Starting with the 2017 ozone season, the final rule revised the existing ozone season allowance budgets for Missouri and Oklahoma and established an ozone season budget for Kansas. In December 2018, the EPA finalized a determination, known as the CSAPR Close-Out Rule, which determined thatdemonstrating the existing CSAPR Update Rule fully addresses applicableaddressed certain upwind states' interstate pollution transport obligations for the 2008 ozone NAAQS. Therefore, the EPA is proposing no additional reduction in the current ozone season allowance budgets in order to address obligations for the 2008 ozone NAAQS.NAAQS interstate transport obligations. Various states and others are challenginghave challenged both the ruleCSAPR Update Rule and the CSAPR Close-Out Rule in the U.S. Court of Appeals for the

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D.C. Circuit (D.C. Circuit), but. In the rule remains in effect. It is not expected that this rule will havefourth quarter of 2019, the D.C. Circuit granted these petitions and remanded a material impact onportion of the Evergy Companies' operations and consolidated financial results.
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National Ambient Air Quality Standards
Under the Clean Air Act Amendments of 1990 (CAA),CSAPR Update Rule back to the EPA set NAAQS for certain emissions known asand vacated the "criteria pollutants" considered harmfulCSAPR Close-Out Rule in its entirety. Due to public health and the environment, including two classes of particulate matter (PM), ozone, nitrogen dioxide (NO2) (a precursor to ozone), carbon monoxide and sulfur dioxide (SO2), which result from fossil fuel combustion. Areas meeting the NAAQS are designated attainment areas while those that do not meet the NAAQS are considered nonattainment areas. Each state must develop a plan to bring nonattainment areas into compliance with the NAAQS. NAAQS must be reviewed by the EPA at five-year intervals.
In October 2015, the EPA strengthened the ozone NAAQS by lowering the standards from 75 ppb to 70 ppb. In November 2017, the EPA designated all countiesuncertainty in the State of Kansas as well as the Missouri counties in KCP&L's and GMO's service territories as attainment/unclassifiable. It is not expected that this will have a material impact on the Evergy Companies' consolidated financial results.
If areas surrounding the Evergy Companies' facilities are designated inwhat the future as nonattainment and/or it is required to install additional equipment to control emissions at facilities ofCSAPR Update Rule will include, the Evergy Companies it could have a materialcannot determine the impact on thetheir operations andor consolidated financial results, of the Evergy Companies.

but it could be material.
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 CAAClean Air Act Amendments of 1990 (CAA) limit CO2 and other GHG emissions, and in addition, other measures are being imposed or offered by individual states, municipalities and regional agreements with the goal of reducing GHG emissions.
In October 2015, the EPA published a rule establishing new source performance standards (NSPS) for GHGs that limit CO2 emissions for new, modified and reconstructed coal and natural gas fueled electric generating units to various levels per MWh depending on various characteristics of the units. Legal challenges to the GHG NSPS have been filed in the D.C. Circuit by various states and industry members. Also in October 2015, the EPA published a rule establishing guidelines for states to regulate CO2 emissions from existing power plants. The standards for existing plants are known as the Clean Power Plan (CPP). Under the CPP, interim emissions performance rates must be achieved beginning in 2022 and final emissions performance rates must be achieved by 2030. Legal challenges to the CPP were filed by groups of states and industry members, including Westar Energy, in the D.C. Circuit. The CPP was stayed by the Supreme Court in February 2016 and, accordingly, is not currently being implemented by the states.
In April 2017, the EPA published in the Federal Register a notice of withdrawal of the proposed CPP federal plan, proposed model trading rules and proposed Clean Energy Incentive Program design details. Also in April 2017, the EPA published a notice in the Federal Register that it was initiating administrative reviews of the CPP and the GHG NSPS.
In October 2017, the EPA issued a proposed rule to repeal the CPP. The proposed rule indicates the CPP exceeds the EPA’s authority and the EPA has not determined whether they will issue a replacement rule. The EPA solicited comments on the legal interpretations contained in this rulemaking.
In December 2017, the EPA issued an advance notice of proposed rulemaking to solicit feedback on specific areas of the CPP that could be changed.
In August 2018, the EPA published in the Federal Register proposed regulations, which contained (1) emission guidelines for GHG emissions from existing electric utility generating units (EGUs), (2) revisions to emission guideline implementing regulations and (3) revisions to the new source review (NSR) program. The proposedThese emission guidelines are better known as the Affordable Clean Energy (ACE) Rule. In July 2019, the EPA published in the Federal Register the final ACE Rule with one significant change from the proposal. The NSR program revisions were not included in the final version and are expected to be addressed in a future rulemaking. The ACE Rule would establishestablishes emission guidelines for states to use in the development of plans to reduce GHG emissions from existing coal-fired EGUs. The ACE Rule is also the replacementThis rule for the CPP. The ACE rule proposes to determinedefines the "best system of emission reduction" (BSER) for GHG emissions from existing coal-fired EGUs as on-site, heat-rate
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efficiency improvements. The proposedfinal rule also provides states with a list of candidate technologies that can be used to establish standards of performance and incorporate these performance standards into state plans. In order for the states to be able to effectively implement the proposed emission guidelines contained in the ACE Rule, the EPA is proposingfinalizing new regulations under Section 111(d) of the CAA to help clarify this process. The ACE Rule became effective in September 2019. In addition,conjunction with the finalization of the ACE Rule, the EPA is proposing revisionsrepealed its previously adopted Clean Power Plan (CPP). Also in September 2019, the D.C. Circuit granted motions to dismiss challenges to the NSR program that will reduceCPP and challenges to EPA's denial of reconsideration of the likelihood of triggering NSR for proposed heat-rate efficiency improvement projects at existing coal-fired EGUs. The public comment period for these proposed regulatory changes closed on October 31, 2018.
In December 2018, the EPA released a proposed rule to revise the existing GHG NSPS for new, modified and reconstructed fossil fuel-fired EGUs, which was issued in October 2015.  This proposed rule would determine that BSER for new EGUs is "the most efficient demonstrated steam cycle (e.g. supercritical steam conditions for large units and subcritical steam conditions for small units) in combination with the best operating practices."  This replaces the current determination that BSER for these units is the use of partial carbon capture and sequestration technology. The EPA is also proposing to address, in potential future rule making, existing operational limitations imposed by the rule on aero-derivative simple cycle combustion turbines.CPP.
Due to uncertainty regarding what future state implementation plans will require for compliance with the future uncertainty of the CPP and ACE rules,Rule as well as legal challenges that have been filed, the Evergy Companies cannot determine the impact on their operations or consolidated financial results, but the cost to comply with the CPP,ACE Rule, should it be upheld and implemented in its current or a substantially similar form, or ACE in its current or a substantially similar form, could be material.
Water
The Evergy Companies discharge some of the water used in generation and other operations. This water may containoperations containing substances deemed to be pollutants. A November 2015 EPA rule establishes effluent limitations guidelines (ELG) and standards for wastewater discharges, including limits on the amount of toxic metals and other pollutants that can be discharged. Implementation timelines for these requirementsthis 2015 rule vary from 2018 to 2023. In April 2017,On November 22, 2019, the EPA announced it is reconsideringpublished a proposed modification to the ELG rule. The proposed rule modifies numeric limits for flue gas desulfurization (FGD) wastewater and court challenges have been placed in abeyance pending the EPA's review. In September 2017, the EPA finalizedadds a rule to postpone the compliance dates for the new, more stringent, effluent limitations and pretreatment standards10% volumetric purge limit for bottom ash transport water and flue gas desulfurization wastewater. Thesewater. The timeline for final FGD wastewater compliance dates have been postponed foris also delayed by two years while the EPA completes its administrative reconsideration of the ELG rule.to December 31, 2025. The Evergy Companies are evaluatingin the finalprocess of reviewing the proposed rule and related developments and cannot predict the resulting impact on their operations or consolidated financial results, but believe costs to comply with these changes could be material ifmaterial.
In April 2019, the rule is implemented in its current or substantially similar form.U.S. Court of Appeals for the 5th Circuit (5th Circuit) issued a ruling that vacates and remands portions of the original ELG rule. Due to this ruling, future ELG modifications for the best available technology economically achievable for legacy waste water and leachate are likely.
In October 2014, the EPA's final standards for cooling water intake structures at power plants to protect aquatic life took effect. The standards, based on Section 316(b) of the federal Clean Water Act (CWA), require subject facilities to choose among seven best available technology options to reduce fish impingement. In addition, some facilities must conduct studies to assist permitting authorities to determine whether and what site-specific controls, if any, would be required to reduce entrainment of aquatic organisms. The Evergy Companies' current analysis indicates this rule will not have a significant impact on their coal plants that employ cooling towers or cooling lakes that can

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be classified as closed cycle cooling and do not expect the impact from this rule to be material. Plants without closed cycle cooling are under evaluation for compliance with these standards and may require additional controls that could be material.
KCP&LEvergy Metro holds a permit from MDNRthe Missouri Department of Natural Resources (MDNR) covering water discharge from its Hawthorn Station.  The permit authorizes KCP&LEvergy Metro to, among other things, withdraw water from the Missouri River for cooling purposes and return the heated water to the Missouri River.  KCP&LEvergy Metro has applied for a renewal of this permit and the EPA has submitted an interim objection letter regarding the allowable amount of heat that can be contained in the returned water.  Until this matter is resolved, KCP&LEvergy Metro continues to operate under its current permit. Evergy and KCP&LEvergy Metro cannot predict the outcome of this matter; however, while less significant outcomes are possible, this matter may require a reduction in generation, installation of cooling towers or other technology to cool the water, or both, any of which could have a material impact on Evergy's and KCP&L'sEvergy Metro's operations and consolidated financial results.  
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In June 2015, the EPA along with the U.S. Army Corps of Engineers issued a final rule, effective August 2015, defining the Waters of the United States (WOTUS) for purposes of the CWA. This rulemaking has the potential to impact all programs under the CWA. Expansion of regulated waterways is possible under the rule depending on regulating authority interpretation, which could impact several permitting programs. Various states and others have filed lawsuits challenging the WOTUS rule. In February 2018, the EPA and the U.S. Army Corps of Engineers finalized a rule adding an applicability date to the 2015 rule, which makes the implementation date of the rule February 2020. In December 2018, the EPA and the U.S. Army Corps of Engineers published in the Federal Register a proposed rule titled "Revised Definition of Waters of the United States. This proposed rule narrows the extent of the CWA jurisdiction as compared to the 2015 rule. The Evergy Companies are currently evaluating the WOTUS rule and related developments, but do not believe the rule, if upheld and implemented in its current or substantially similar form, will have a material impact on the Evergy Companies' operations or consolidated financial results.
Regulation of Coal Combustion Residuals
In the course of operating their coal generation plants, the Evergy Companies produce CCRs, including fly ash, gypsum and bottom ash. Some of this ash production is recycled, principally by selling to the aggregate industry. The EPA published a rule to regulate CCRs in April 2015, which will requirethat requires additional CCR handling, processing and storage equipment and closure of certain ash disposal units. The Water Infrastructure Improvements for
In March 2019, the Nation (WIIN) Act allows statesD.C. Circuit issued a ruling to achieve delegated authority for CCR rules fromgrant the EPA. This has the potentialEPA's request to impact compliance options. In July 2018, KDHE submitted a CCR permit program application to the EPA under authority of the WIIN Act. In November 2018, KDHE received notice from the EPA that its application is deficient and requested additional clarifying information. KDHE has decided it is not going to move forward with additional submittals at this time and will wait until current legal action associated with the CCR rule is final along with planned upcoming modifications to the CCR rule. The Missouri Department of Natural Resources (MDNR) is working on a rule revision, which will allow the state to apply for authority over the federal CCR regulation. The regulation is expected to be promulgated by early 2019. MDNR will then determine when to submit a WIIN Act application to the EPA. Similar to the process in Kansas, this would allow Missouri state regulators to gain control of the CCR program. It will take up to one year from submittal of the Missouri application for the EPA to take final action and grant authority to the state, if such authority is granted.
On July 30, 2018, the EPA published in the Federal Register a final rule calledremand the Phase I, Part I CCR Remand Rulerule. This was in orderresponse to modify portionsa prior court ruling requiring the EPA to address un-lined surface impoundment closure requirements. On December 2, 2019, the EPA published a proposed rule called the Part A CCR Rule. This proposal reclassifies clay-lined surface impoundments from "lined" to "unlined" and establishes a deadline of the 2015 rulemaking.August 31, 2020 to initiate closure. The Phase I, Part Iprior rule providesincluded a timeline extensiondeadline of October 31, 2020 for unlined impoundments and landfillsto initiate closure. In February 2020, the EPA released a pre-publication version of a proposed rule called the Part B CCR Rule. This proposal includes a process to allow unlined impoundments to continue to operate if a demonstration is made to prove that must close due tothey are not adversely impacting groundwater, impactshuman health or location restrictions.the environment. The ruleproposal also sets risk-based limits for certain groundwater constituents where a maximum contaminant level did not previously exist. These rule modifications add flexibility when assessing compliance.
On August 21, 2018, the D.C. Circuit court issued a rulingincludes clarification regarding ash used in the CCR rule litigation between the Utility Solid Waste Activities Group, the EPAclosure of landfills and environmental organizations. Portions of the rule were vacated and were remanded back to the EPA for potential modification. Potential revisions to remanded sections could force all unlined surface impoundments to close regardless of groundwater conditions. Any changes to the rule based on this court decision will require additional rulemaking from the EPA. In October 2018, a coalition of environmental groups (including Sierra Club) filed a petition for reviewimpoundments. The Evergy Companies are in the D.C. Circuit challenging the Phase I, Part I revisions to the CCR Rule. In November 2018, this coalition requested the EPA to stay the October 31, 2020 deadline extension for initiating closure for unlined impoundments and landfills that must close due to groundwater impacts or location restrictions. The EPA has rejected this requestprocess of reviewing these proposed rules and the coalition has filed a petitioncosts to comply with the court for a similar stay. If granted, the compliance date will revert to the previously established date in April of 2019. In response, the EPA has filed a motion with the D.C. Circuit to voluntarily remand without vacatur the Part I, Phase I rule. If the October 31, 2020 deadline is modified by either of these actions, then some CCR units in the Evergy Companies' fleetchanges could have to initiate closure on an earlier timeline than what currently exists, but the Evergy Companies do not believe the earlier closure timeline would have a material impact on their operations or consolidated financial results.be material.
The Evergy Companies have recorded AROs for their current estimates for the closure of ash disposal ponds, but the revision of these AROs may be required in the future due to changes in existing CCR regulations, the results of
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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. If revisions to these AROs are necessary, the impact on the Evergy Companies' operations or consolidated financial results could be material.
Storage of Spent Nuclear Fuel
Under the Nuclear Waste Policy Act of 1982, the Department of Energy (DOE) is responsible for the permanent disposal of spent nuclear fuel. In 2010, the DOE filed a motion with the Nuclear Regulatory Commission (NRC) to withdraw its then pending application to construct a national repository for the disposal of spent nuclear fuel and high-level radioactive waste at Yucca Mountain, Nevada. The NRC has not yet issued a final decision on the matter.
Wolf Creek has elected to build a dry cask storage facility to expand its existing on-site spent nuclear fuel storage, which is expected to provide additional capacity prior to 2022. Wolf Creek has finalized a settlement agreement through 2019 withThe Evergy Companies expect that the DOE for reimbursementmajority of the costs to construct thisthe dry cask storage facility that would not have otherwise been incurred had the DOE begun accepting spent nuclear fuel. The Evergy Companies expect the majority of the remaining cost to construct the dry cask storage facility that would not have otherwise been incurredfuel will be reimbursed by the DOE. The Evergy Companies cannot predict when, or if, an off-site storage site or alternative disposal site will be available to receive Wolf Creek's spent nuclear fuel and will continue to monitor this activity.
Nuclear Insurance
Nuclear liability, property and accidental outage insurance is maintained for Wolf Creek. These policies contain certain industry standard terms, conditions and exclusions, including, but not limited to, ordinary wear and tear and war. An industry aggregate limit of $3.2 billion for nuclear events ($1.8 billion of non-nuclear events) plus any

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reinsurance, indemnity or any other source recoverable by Nuclear Electric Insurance Limited (NEIL), provider of property and accidental outage insurance, exists for acts of terrorism affecting Wolf Creek or any other NEIL insured plant within 12 months from the date of the first act. In addition, participation is required in industry-wide retrospect assessment programs as discussed below.
Nuclear Liability Insurance
Pursuant to the Price-Anderson Act, liability insurance includes coverage against public nuclear liability claims resulting from nuclear incidents to the required limit of public liability, which is approximately $14.1$13.9 billion. This limit of liability consists of the maximum available commercial insurance of $0.5$0.4 billion and the remaining $13.6$13.5 billion is provided through mandatory participation in an industry-wide retrospective assessment program. Under this retrospective assessment program, the owners of Wolf Creek are jointly and severally subject to an assessment of up to $137.6 million (Evergy's share is $129.2 million and each of Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's is $64.6 million), payable at no more than $20.5 million (Evergy's share is $19.2 million and each of Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's is $9.6 million) per incident per year per reactor for any commercial U.S. nuclear reactor qualifying incident. Both the total and yearly assessment is subject to an inflationary adjustment based on the Consumer Price Index and applicable premium taxes. In addition, the U.S. Congress could impose additional revenue-raising measures to pay claims.
Nuclear Property and Accidental Outage Insurance
The owners of Wolf Creek carry decontamination liability, nuclear property damage and premature nuclear decommissioning liability insurance for Wolf Creek totaling approximately $2.8 billion. Insurance coverage for non-nuclear property damage accidents total approximately $2.3 billion. In the event of an extraordinary nuclear accident, insurance proceeds must first be used for reactor stabilization and site decontamination in accordance with a plan mandated by the NRC. The Evergy Companies' share of any remaining proceeds can be used to pay for property damage or, if certain requirements are met, including decommissioning the plant, toward a shortfall in the nuclear decommissioning trust fund. The owners also carry additional insurance with NEIL to help cover costs of replacement power and other extra expenses incurred during a prolonged outage resulting from accidental property damage at Wolf Creek. If significant losses were incurred at any of the nuclear plants insured under the NEIL policies, the owners of Wolf Creek may be subject to retrospective assessments under the current policies of approximately $37.4$33.2 million (Evergy's share is $35.2$31.2 million and each of Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's is $17.6$15.6 million).
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Nuclear Insurance Considerations
Although the Evergy Companies maintain various insurance policies to provide coverage for potential losses and liabilities resulting from an accident or an extended outage, the insurance coverage may not be adequate to cover the costs that could result from a catastrophic accident or extended outage at Wolf Creek. Any substantial losses not covered by insurance, to the extent not recoverable in prices, would have a material effect on the Evergy Companies' consolidated financial results.


Contractual Commitments - Leases
The Evergy Companies lease office buildings, computer equipment, vehicles, rail cars and other property and equipment, including rail cars to serve jointly-owned generating units where Westar Energy or KCP&L is the managing partner and are reimbursed by other joint-owners for their proportionate share of the cost. In determining lease expense, the effects of scheduled rent increases on a straight-line basis over the minimum lease term are recognized. Rental expense and estimated future commitments under operating leases are detailed in the following table.
  Total Operating Leases
  Evergy Westar Energy 
KCP&L(a)
Rental expense: (millions)
2016 $13.6
 $13.6
 $13.7
2017 15.7
 15.7
 13.1
2018 24.5
 17.7
 11.4
       
Future commitments:      
2019 $24.2
 $14.0
 $10.2
2020 20.7
 10.1
 10.6
2021 18.4
 8.1
 10.3
2022 15.2
 5.2
 10.0
2023 12.4
 2.8
 9.6
After 2023 95.0
 3.1
 91.8
Total $185.9
 $43.3
 $142.5
(a) KCP&L amounts are only included in consolidated Evergy following the date of the closing of the merger, June 4, 2018.
The Evergy Companies identify capital leases based on defined criteria. For both vehicles and computer equipment, new leases are signed each month based on the terms of master lease agreements. Assets recorded under capital leases are detailed in the following table.
  December 31
  2018 2017
  Evergy Westar Energy KCP&L Evergy Westar Energy 
KCP&L(a)
  (millions)
Vehicles $20.2
 $20.2
 $—
 $19.7
 $19.7
 $—
Computer equipment 0.2
 0.2
 —
 0.9
 0.9
 —
Generation plant 296.7
 40.1
 —
 40.1
 40.1
 —
Other 5.2
 —
 2.6
 —
 —
 2.6
Accumulated amortization (160.0) (20.3) (1.1) (17.1) (17.1) (1.1)
Total capital leases $162.3
 $40.2
 $1.5
 $43.6
 $43.6
 $1.5
(a) KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.
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Capital leases are treated as operating leases for rate making purposes. Minimum annual rental payments, excluding administrative costs such as property taxes, insurance and maintenance, under capital leases are detailed in the following table.
  Total Capital Leases
  Evergy Westar Energy KCP&L
  (millions)
2019 $6.4
 $6.0
 $0.2
2020 5.8
 5.4
 0.2
2021 5.3
 4.9
 0.2
2022 4.7
 4.3
 0.2
2023 4.0
 3.6
 0.2
After 2023 48.6
 46.4
 1.1
Total capital lease payments 74.8
 70.6
 2.1
Amounts representing imputed interest (25.8) (24.6) (0.6)
Present value of net minimum lease payments under capital leases 49.0
 46.0
 1.5
Less: current portion (3.9) (3.7) (0.1)
Total long-term obligations under capital leases $45.1
 $42.3
 $1.4
Contractual Commitments - Fuel, Power and Other
The Evergy Companies' contractual commitments at December 31, 2018,2019, excluding pensions, long-term debt and leases, are detailed in the following tables. See Notes 10, 13 and 21 for information regarding pension, long-term debt and lease commitments, respectively.
Evergy                            
 2019 2020 2021 2022 2023 After 2023Total 2020 2021 2022 2023 2024 After 2024Total
Purchase commitments (millions) (millions)
Fuel $423.6
 $364.4
 $95.3
 $82.9
 $87.5
 $116.2
 $1,169.9
 $486.9
 $137.0
 $83.2
 $84.7
 $17.1
 $94.1
 $903.0
Power 47.3
 47.3
 47.4
 47.6
 47.8
 366.8
 604.2
 47.3
 47.4
 47.6
 47.8
 41.7
 325.2
 557.0
Other 137.8
 18.8
 13.4
 6.8
 2.1
 34.4
 213.3
 147.7
 42.3
 30.0
 25.1
 19.4
 117.7
 382.2
Total contractual commitments $608.7
 $430.5
 $156.1
 $137.3
 $137.4
 $517.4
 $1,987.4
 $681.9
 $226.7
 $160.8
 $157.6
 $78.2
 $537.0
 $1,842.2

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Westar Energy              
Evergy Kansas Central              
 2019 2020 2021 2022 2023 After 2023Total 2020 2021 2022 2023 2024 After 2024Total
Purchase commitments (millions) (millions)
Fuel $240.9
 $218.1
 $25.9
 $45.7
 $46.9
 $74.1
 $651.6
 $269.9
 $33.0
 $47.2
 $45.7
 $11.5
 $59.0
 $466.3
Other 87.4
 8.9
 5.5
 2.2
 —
 —
 104.0
 76.5
 11.7
 4.7
 3.0
 0.2
 —
 96.1
Total contractual commitments $328.3
 $227.0
 $31.4
 $47.9
 $46.9
 $74.1
 $755.6
 $346.4
 $44.7
 $51.9
 $48.7
 $11.7
 $59.0
 $562.4
Evergy Metro                    
  2020  2021  2022  2023  2024 After 2024Total
Purchase commitments (millions)
Fuel $180.2
  $92.5
  $36.0
  $39.0
  $5.6
  $35.1
  $388.4
Power 34.8
  34.9
  35.1
  35.3
  29.2
  225.4
  394.7
Other 58.4
  29.0
  24.2
  21.6
  18.7
  112.9
  264.8
Total contractual commitments $273.4
  $156.4
  $95.3
  $95.9
  $53.5
  $373.4
  $1,047.9
KCP&L                    
  2019  2020  2021  2022  2023 After 2023Total
Purchase commitments (millions)
Fuel $162.6
  $126.9
  $69.4
  $37.2
  $40.6
  $42.1
  $478.8
Power 34.8
  34.8
  34.9
  35.1
  35.3
  254.5
  429.4
Other 34.7
  9.0
  7.0
  3.8
  1.6
  29.7
  85.8
Total contractual commitments $232.1
  $170.7
  $111.3
  $76.1
  $77.5
  $326.3
  $994.0

Fuel commitments consist of commitments for nuclear fuel, coal and coal transportation. Power commitments consist of certain commitments for renewable energy under power purchase agreements. Other represents individual commitments entered into in the ordinary course of business.
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15.16. GUARANTEES
In the ordinary course of business, Evergy and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiary's intended business purposes. In connection with the closing of the merger, Evergy assumed the guarantees previously provided to GMOEvergy Missouri West by Great Plains Energy. The majority of these agreements guarantee Evergy's own future performance, so a liability for the fair value of the obligation is not recorded.
At December 31, 2018,2019, Evergy has provided $111.3$110.2 million of credit support for GMOEvergy Missouri West as follows:
•
Evergy direct guarantees to Evergy Missouri West counterparties totaling $17.0 million, which expire in 2020, and
•
Evergy's guarantee of Evergy Missouri West long-term debt totaling $93.2 million, which includes debt with maturity dates ranging from 2020 to 2023.
Evergy direct guarantees to GMO counterparties totaling $17.0 million, which expire in 2020, and
Evergy's guarantee of GMO long-term debt totaling $94.3 million, which includes debt with maturity dates ranging from 2019 to 2023.
Evergy has also guaranteed GMO'sEvergy Missouri West's commercial paper program.program. At December 31, 2018, GMO2019, Evergy Missouri West had $150.0$93.4 million of commercial paper outstanding. None of the guaranteed obligations are subject to default or prepayment if GMO'sEvergy Missouri West's credit ratings were downgraded.
16.17. RELATED PARTY TRANSACTIONS AND RELATIONSHIPS
In the normal course of business, Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West engage in related party transactions with one another. A summary of these transactions and the amounts associated with them is provided below. All related party transaction amountsTransactions between Westar EnergyEvergy Kansas Central and either KCP&LEvergy Metro or GMO only reflect activity betweenEvergy Missouri West prior to June 4, 2018, the date of the merger, and December 31, 2018.are not reflected below.
Jointly-Owned Plants and Shared Services
KCP&LEvergy Metro employees manage GMO'sEvergy Missouri West's business and operate its facilities at cost, including GMO'sEvergy Missouri West's 18% ownership interest in KCP&L'sEvergy Metro's Iatan Nos. 1 and 2.  The operating expenses and capital costs billed from KCP&LEvergy Metro to GMOEvergy Missouri West were $172.8 million for 2019, $183.2 million for 2018 and $196.3 million for 2017 and $194.4 million for 2016.2017.
Westar Energy
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Evergy Kansas Central employees manage Jeffrey Energy CenterJEC and operate its facilities at cost, including GMO'sEvergy Missouri West's 8% ownership interest in Jeffrey Energy Center.JEC. The operating expenses and capital costs billed from Westar EnergyEvergy Kansas Central to GMOEvergy Missouri West for Jeffrey Energy CenterJEC and other various business activities were $24.9 million for 2019 and $12.3 million for 2018.
KCP&LEvergy Metro employees manage La Cygne Station and operate its facilities at cost, including Westar Energy'sEvergy Kansas Central's 50% ownership interest in La Cygne Station. KCP&LEvergy Metro and Westar EnergyEvergy Kansas Central employees also provide one another with shared service support, including costs related to human resources, information technology, accounting and legal services. The operating expenses and capital costs billed from KCP&LEvergy Metro to Westar EnergyEvergy Kansas Central were $154.9 million for 2019 and $82.9 million for 2018. The operating and capital costs billed from Westar EnergyEvergy Kansas Central to KCP&LEvergy Metro were $40.6 million for 2019 and $17.5 million for 2018.
Money Pool
KCP&LEvergy Metro and GMOEvergy Missouri West are also authorized to participate in the Evergy, Inc. money pool, an internal financing arrangement in which funds may be lent on a short-term basis to KCP&LEvergy Metro and GMOEvergy Missouri West from Evergy, Inc. and between KCP&LEvergy Metro and GMO.Evergy Missouri West. At December 31, 2019 and 2018, and 2017, KCP&LEvergy Metro had no0 outstanding receivables or payables under the money pool.
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Related Party Net Receivables and Payables
The following table summarizes Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's related party net receivables and payables.
  December 31 
  2019  2018 
Evergy Kansas Central (millions) 
Net receivable from Evergy Missouri West $3.1
  $2.6
 
Net payable to Evergy Metro (14.9)  (13.5) 
Net receivable from (payable to) Evergy 6.9
  (1.4) 
       
Evergy Metro      
Net receivable from Evergy Missouri West $78.7
  $72.6
 
Net receivable from Evergy Kansas Central 14.9
  13.5
 
Net receivable from (payable to) Evergy (4.3)  15.7
 
  December 31 
  2018  2017 
Westar Energy (millions) 
Net receivable from GMO $2.6
  $—
 
Net payable to KCP&L (13.5)  —
 
Net payable to Evergy (1.4)  —
 
       
KCP&L      
Net receivable from GMO $72.6
  $65.8
 
Net receivable from Westar Energy 13.5
  —
 
Net receivable from Evergy 15.7
  —
 
Net receivable from Great Plains Energy —
  18.9
 

Tax Allocation Agreement
Evergy files a consolidated federal income tax return as well as unitary and combined income tax returns in several state jurisdictions with Kansas and Missouri being the most significant. Income taxes for consolidated or combined subsidiaries are allocated to the subsidiaries based on separate company computations of income or loss. As of December 31, 2019 and 2018, Westar Energy and KCP&LEvergy Kansas Central had income taxes receivable from (payable to) Evergy of $37.9 million and $42.7 million, respectively. As of December 31, 2019 and $(2.0)2018, Evergy Metro had income taxes payable to Evergy of $14.1 million and $2.0 million, respectively.
Leases
Evergy Metro leases certain transmission equipment from Evergy Kansas Central. This lease was entered into prior to the merger in an arms-length transaction and is accounted for as an operating lease. As of December 31, 2019, Evergy Metro had a right-of-use asset of $29.5 million recorded within other long-term assets, $0.6 million of lease liability recorded in other current liabilities and $28.9 million of lease liability recorded in other long-term liabilities on its consolidated balance sheet related to this lease. The assets and liabilities related to this lease between Evergy Kansas Central and Evergy Metro are eliminated at consolidated Evergy.

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18. SHAREHOLDERS' EQUITY
Evergy's authorized capital stock consists of 600 million shares of common stock, without par value, and 12 million shares of Preference Stock, without par value.
Evergy Registration Statements
In November 2018, Evergy filed an automatic shelf registration statement providing for the sale of unlimited amounts of securities with the SEC, which expires in November 2021.
In September 2018, Evergy has registered shares of its common stock with the SEC for its Dividend Reinvestment and Direct Stock Purchase Plan. Shares issued under the plan may be either newly issued shares or shares purchased on the open market.
In June 2018, Evergy has registered shares of its common stock with the SEC for the Great Plains EnergyEvergy, Inc. 401(k) Savings Plan and Westar Energy, Inc. Employees' 401(k) Savings Plan, among other compensation plans, that Evergy assumed in connection with the merger transaction.Plan. Shares issued under the plans may be either newly issued shares or shares purchased on the open market.
Common Stock Repurchase Program
In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock. Although this repurchase authorizationEvergy has no expiration date, Evergy expects to repurchase the 60 million shares by mid-2020. Evergy plans to utilizeutilized various methods to effectuate the share repurchase program since its authorization, including but not limited to, a series of transactions that may include accelerated share repurchases, open market transactions or other means, subject to market conditions and applicable legal requirements. The repurchase program may be suspended, discontinued or resumed at any time. For 2018, Evergy had total repurchases of common stock of approximately $1,042 million and had repurchased 16.4 million shares under the repurchase program. These repurchase totals includeof shares repurchased underthrough accelerated share repurchase (ASR) agreements one of which had not reached final settlement as of December 31, 2018, and are discussed further below.open market transactions. Evergy retires repurchased common stock shares in the period the shares are repurchased.
In For 2019, Evergy had total repurchases of common stock of $1,628.7 million and had repurchased 28.8 million shares under the repurchase program. Since the start of the repurchase program in August 2018, Evergy entered into two ASR agreements with financial institutionshas made total repurchases of common stock of $2,671.0 million and has repurchased 45.2 million shares under the repurchase program. Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committee of the Evergy Board conducts its review of ways to purchase $450.0 million of Evergy common stock. The ASR agreements reached final settlementenhance long-term shareholder value, which is expected to conclude in the fourth quarterfirst half of 2018 and resulted in2020.
TableThe following table summarizes the ASRs completed as part of Contents


the delivery of 7.9 million shares to Evergy based on the average daily volume weighted-average price of EvergyEvergy's common stock during the term ofrepurchase program.
Date ASR Entered Final Settlement Date Amount Shares Delivered
    (millions)
August 2018 October/November 2018 $450.0
 7.9
November 2018 February 2019 475.0
 8.3
March 2019 June 2019 450.0
 7.8
June 2019 September 2019 500.0
 8.1
September 2019 November/December 2019 500.0
 7.8

Under the ASR agreements less a negotiated discount.
In November 2018, Evergy entered into an ASR agreement with avarious financial institution to purchase $475.0 million ofinstitutions, Evergy common stock. In December 2018, the financial institutionwas delivered to Evergy 6.4 million shares of common stock, representing a partial settlement of the contract, based on then-current market prices and Evergy paid a total of $475.0 million. The upfront payment was recorded as a reduction to Evergy, Inc. shareholders' equity and as a repurchase of common stock on Evergy's consolidated statements of cash flows.
The final number of shares of Evergyits common stock that Evergy may receive or be required to remit upon settlementbased on the amount of the ASR agreement will be based onand the average daily volume weighted-averagevolume-weighted average price of Evergyits common stock during the term of the ASR agreement, less a negotiated discount. Final settlement of the ASR agreement will occur by March 2019, but may occur earlier at the option of the financial institution. Evergy expects that the final settlement of the ASR agreement will result in the delivery of additional shares of common stock to Evergy at no additional cost.
Evergy reflects ASRs as a repurchase of common stock in the period the shares are delivered for purposes of calculating earnings per share and as forward contracts indexed to its own common stock. Evergy's ASRs have met all of the applicable criteria for equity classification and therefore are not accounted for as derivative instruments.
Dividend Restrictions
Evergy depends on its subsidiaries to pay dividends on its common stock. The Evergy Companies have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels or the ability to pay dividends.
The KCC order authorizing the merger transaction requires Evergy to maintain consolidated common equity of at least 35% of total consolidated capitalization.

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Under the Federal Power Act, Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West generally can pay dividends only out of retained earnings. Certain conditions in the MPSC and KCC orders authorizing the merger transaction also require Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro to maintain consolidated common equity of at least 40% of total capitalization. Other conditions in the MPSC and KCC merger orders require Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West to maintain credit ratings of at least investment grade. If Westar Energy's, KCP&L'sEvergy Kansas Central's, Evergy Metro's or GMO'sEvergy Missouri West's credit ratings are downgraded below the investment grade level as a result of their affiliation with Evergy or any of Evergy's affiliates, the impacted utility shall not pay a dividend to Evergy without KCC or MPSC approval or until the impacted utility's investment grade credit rating has been restored.
The master credit facility of Evergy, Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West and the note purchase agreementagreements for GMO's Series A, B and C Senior Notescertain Evergy Missouri West senior notes contain covenants requiring the respective company to maintain a consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00 at all times.
As of December 31, 2018,2019, all of Evergy's and Westar Energy'sEvergy Kansas Central's retained earnings and net income were free of restrictions and KCP&LEvergy Metro had a retained earnings restriction of $192.0$152.0 million. Evergy's subsidiaries had restricted net assets of approximately $5.1$5.0 billion as of December 31, 2018.2019. These restrictions are not expected to affect the Evergy Companies' ability to pay dividends at the current level for the foreseeable future.
18.19. VARIABLE INTEREST ENTITIES
In determining the primary beneficiary of a VIE, the Evergy Companies assess the entity's purpose and design, including the nature of the entity's activities and the risks that the entity was designed to create and pass through to its variable interest holders. A reporting enterprise is deemed to be the primary beneficiary of a VIE if it has (a) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. The trust holding an 8% interest in Jeffrey
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Energy CenterJEC was a VIE until the expiration of a purchase option in July 2017.2017 and then again during 2019 until the 8% interest was purchased by Evergy Kansas Central in August 2019. The trust holding Westar Energy'sEvergy Kansas Central's 50% interest in La Cygne Unit 2 is a VIE and Westar EnergyEvergy Kansas Central remains the primary beneficiary of the trust.
All involvement with entities by the Evergy Companies is assessed to determine whether such entities are VIEs and, if so, whether or not the Evergy Companies are the primary beneficiaries of the entities. The Evergy Companies also continuously assess whether they are the primary beneficiary of the VIE with which they are involved. Prospective changes in facts and circumstances may cause identification of the primary beneficiary to be reconsidered.
8% Interest in Jeffrey Energy CenterJEC
Under an agreement with an original expiration of Januarythat expired in August 2019, Westar EnergyEvergy Kansas Central leased an 8% interest in Jeffrey Energy CenterJEC from a trust. The trust was financed with an equity contribution from an owner participant and debt issued by the trust. The trust was created specifically to purchase the 8% interest in Jeffrey Energy CenterJEC and lease it to a third party and doesdid not hold any other assets. Westar EnergyEvergy Kansas Central met the requirements to be considered the primary beneficiary of the trust until July 2017, when a contractual option to purchase the 8% interest in the plant covered by the lease expired. Accordingly, Westar EnergyEvergy Kansas Central deconsolidated the trust in the third quarter of 2017.
In February Evergy Kansas Central then reconsolidated the trust as a VIE in the first quarter of 2019 Westar Energy entered intofollowing an agreement with the owner to extend the lease ofpurchase the 8% interest in Jeffrey Energy Center owned byJEC from the trust untilin August 2019. AtEvergy Kansas Central deconsolidated the expirationtrust for the final time following the closing of the lease term, Westar Energy willthis purchase the 8% interest from the trust.

in August 2019.
50% Interest in La Cygne Unit 2
Under an agreement that expires in September 2029, Westar EnergyEvergy Kansas Central entered into a sale-leaseback transaction with a trust under which the trust purchased Westar Energy'sEvergy Kansas Central's 50% interest in La Cygne Unit 2 and subsequently leased it back to Westar Energy.Evergy Kansas Central. The trust was financed with an equity contribution from an owner participant and debt issued by the trust. The trust was created specifically to purchase the 50% interest in

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La Cygne Unit 2 and lease it back to Westar Energy,Evergy Kansas Central and does not hold any other assets. Westar EnergyEvergy Kansas Central meets the requirements to be considered the primary beneficiary of the trust. In determining the primary beneficiary of the trust, Westar EnergyEvergy Kansas Central concluded that the activities of the trust that most significantly impact its economic performance and that Westar EnergyEvergy Kansas Central has the power to direct include (1) the operation and maintenance of the 50% interest in La Cygne Unit 2 and (2) Westar Energy'sEvergy Kansas Central's ability to exercise a purchase option at the end of the agreement at the lesser of fair value or a fixed amount. Westar EnergyEvergy Kansas Central has the potential to receive benefits from the trust that could potentially be significant if the fair value of the 50% interest in La Cygne Unit 2 at the end of the agreement is greater than the fixed amount.
The following table summarizes the assets and liabilities related to the VIE described above that are recorded on Evergy's and Westar Energy'sEvergy Kansas Central's consolidated balance sheets.
 December 31 December 31
 2018 2017 2019 2018
Assets: (millions) (millions)
Property, plant and equipment of variable interest entities, net $169.2
 $176.3
 $162.0
 $169.2
Liabilities:        
Current maturities of long-term debt of variable interest entities $30.3
 $28.5
 $32.3
 $30.3
Accrued interest(a)
 0.5
 0.7
 0.3
 0.5
Long-term debt of variable interest entities, net 51.1
 81.4
 18.8
 51.1
(a) 
Included in accrued interest on Evergy's and Westar Energy'sEvergy Kansas Central's consolidated balance sheets.
All of the liabilities noted in the table above relate to the purchase of the property, plant and equipment of the VIE. The assets of the VIE can be used only to settle obligations of the VIE and the VIE's debt holders have no recourse to the general credit of Evergy and Westar Energy.Evergy Kansas Central. Evergy and Westar EnergyEvergy Kansas Central have not provided financial or other support to the VIE and are not required to provide such support. Evergy and Westar EnergyEvergy Kansas Central did not record any gain or loss upon the initial consolidation of the VIE.
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19.20. TAXES
Components of income tax expense are detailed in the following tables.
Evergy2018 2017 20162019 2018 2017
Current income taxes(millions)(millions)
Federal$(67.4) $0.1
 $(1.0)$(39.5) $(67.4) $0.1
State2.2
 0.4
 0.3
15.0
 2.2
 0.4
Total(65.2) 0.5
 (0.7)(24.5) (65.2) 0.5
Deferred income taxes 
  
  
 
  
  
Federal160.1
 122.8
 155.2
93.2
 160.1
 122.8
State(32.3) 30.7
 32.9
27.5
 (32.3) 30.7
Total127.8
 153.5
 188.1
120.7
 127.8
 153.5
Investment tax credit          
Deferral5.2
 —
 —
Amortization(3.6) (2.8) (2.9)(4.4) (3.6) (2.8)
Total(3.6) (2.8) (2.9)0.8
 (3.6) (2.8)
Income tax expense$59.0
 $151.2
 $184.5
$97.0
 $59.0
 $151.2

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Westar Energy2018 2017 2016
Evergy Kansas Central2019 2018 2017
Current income taxes(millions)(millions)
Federal$(0.3) $0.1
 $(1.0)$37.9
 $(0.3) $0.1
State(1.8) 0.4
 0.3
2.6
 (1.8) 0.4
Total(2.1) 0.5
 (0.7)40.5
 (2.1) 0.5
Deferred income taxes 
  
  
 
  
  
Federal43.5
 122.8
 155.2
(8.9) 43.5
 122.8
State(42.9) 30.7
 32.9
18.4
 (42.9) 30.7
Total0.6
 153.5
 188.1
9.5
 0.6
 153.5
Investment tax credit          
Deferral5.2
 —
 —
Amortization(2.8) (2.8) (2.9)(3.1) (2.8) (2.8)
Total(2.8) (2.8) (2.9)2.1
 (2.8) (2.8)
Income tax expense (benefit)$(4.3) $151.2
 $184.5
$52.1
 $(4.3) $151.2
Evergy Metro(a)
2019 2018 2017
Current income taxes(millions)
Federal$43.9
 $29.8
 $37.4
State22.4
 8.9
 8.3
Total66.3
 38.7
 45.7
Deferred income taxes 
  
  
Federal(24.5) (3.4) 74.7
State(5.0) 53.0
 8.8
Total(29.5) 49.6
 83.5
Investment tax credit     
Amortization(1.1) (1.0) (1.0)
Total(1.1) (1.0) (1.0)
Income tax expense$35.7
 $87.3
 $128.2

KCP&L2018 2017 2016
Current income taxes(millions)
Federal$29.8
 $37.4
 $24.8
State8.9
 8.3
 4.7
Total38.7
 45.7
 29.5
Deferred income taxes 
  
  
Federal(3.4) 74.7
 76.4
State53.0
 8.8
 17.0
Total49.6
 83.5
 93.4
Investment tax credit     
Amortization(1.0) (1.0) (1.0)
Total(1.0) (1.0) (1.0)
Income tax expense$87.3
 $128.2
 $121.9
Table(a)Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of Contents


the closing of the merger, and thereafter.
Effective Income Tax Rates
Effective income tax rates reflected in the financial statements and the reasons for their differences from the statutory federal rates are detailed in the following tables.
Evergy2018 2017 20162019 2018 2017
Federal statutory income tax21.0 % 35.0 % 35.0 %21.0 % 21.0 % 35.0 %
COLI policies(1.9) (3.1) (4.2)(1.8) (1.9) (3.1)
State income taxes4.9
 4.1
 4.0
5.0
 4.9
 4.1
Flow through depreciation for plant-related differences0.8
 2.3
 3.1
(4.5) 0.8
 2.3
Federal tax credits(6.4) (6.9) (1.8)(4.9) (6.4) (6.9)
Non-controlling interest(0.4) (0.9) (0.9)(0.4) (0.4) (0.9)
AFUDC equity(0.1) (0.2) (0.8)(0.1) (0.1) (0.2)
Amortization of federal investment tax credits(0.6) (0.6) (0.5)(0.5) (0.6) (0.6)
Changes in uncertain tax positions, net0.1
 —
 —
(0.2) 0.1
 —
Federal or state tax rate change(8.7) 2.5
 —
—
 (8.7) 2.5
Valuation allowance0.4
 0.3
 0.4
(1.0) 0.4
 0.3
Stock compensation(0.4) (0.9) (0.5)0.1
 (0.4) (0.9)
Officer compensation limitation1.2
 0.2
 —
0.1
 1.2
 0.2
Other(0.2) (0.8) —
(0.4) (0.2) (0.8)
Effective income tax rate9.7 % 31.0 % 33.8 %12.4 % 9.7 % 31.0 %


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Westar Energy2018 2017 2016
Evergy Kansas Central2019 2018 2017
Federal statutory income tax21.0 % 35.0 % 35.0 %21.0 % 21.0 % 35.0 %
COLI policies(3.3) (3.1) (4.2)(3.3) (3.3) (3.1)
State income taxes5.0
 4.1
 4.0
5.3
 5.0
 4.1
Flow through depreciation for plant-related differences1.6
 2.3
 3.1
(0.1) 1.6
 2.3
Federal tax credits(10.4) (6.9) (1.8)(7.4) (10.4) (6.9)
Non-controlling interest(0.6) (0.9) (0.9)(0.8) (0.6) (0.9)
AFUDC equity(0.2) (0.2) (0.8)(0.1) (0.2) (0.2)
Amortization of federal investment tax credits(0.8) (0.6) (0.5)(0.7) (0.8) (0.6)
Changes in uncertain tax positions, net0.1
 —
 —
(0.4) 0.1
 —
Federal or state tax rate change(15.3) 2.5
 —
—
 (15.3) 2.5
Valuation allowance0.5
 0.3
 0.4
(0.4) 0.5
 0.3
Stock compensation(0.8) (0.9) (0.5)(0.1) (0.8) (0.9)
Officer compensation limitation1.8
 0.2
 —
—
 1.8
 0.2
Other0.2
 (0.8) —
(0.3) 0.2
 (0.8)
Effective income tax rate(1.2)% 31.0 % 33.8 %12.7 % (1.2)% 31.0 %
Evergy Metro(a)
2019 2018 2017
Federal statutory income tax21.0 % 21.0 % 35.0 %
COLI policies(0.2) (0.2) (0.3)
State income taxes4.7
 5.5
 3.8
Flow through depreciation for plant-related differences(9.4) (2.5) 0.5
Federal tax credits(2.5) (2.1) (2.4)
AFUDC equity(0.2) (0.1) (0.7)
Amortization of federal investment tax credits(0.4) (0.4) (0.3)
Federal or state tax rate change—
 14.1
 5.3
Valuation allowance—
 —
 0.4
Stock compensation—
 —
 0.2
Officer compensation limitation0.3
 0.6
 0.1
Other(1.0) (1.0) —
Effective income tax rate12.3 % 34.9 % 41.6 %

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

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KCP&L2018 2017 2016
Federal statutory income tax21.0 % 35.0 % 35.0 %
COLI policies(0.2) (0.3) (0.2)
State income taxes5.5
 3.8
 4.1
Flow through depreciation for plant-related differences(2.5) 0.5
 0.3
Federal tax credits(2.1) (2.4) (3.1)
AFUDC equity(0.1) (0.7) (0.7)
Amortization of federal investment tax credits(0.4) (0.3) (0.3)
Federal or state tax rate change14.1
 5.3
 —
Valuation allowance—
 0.4
 —
Stock compensation—
 0.2
 —
Officer compensation limitation0.6
 0.1
 0.2
Other(1.0) —
 (0.1)
Effective income tax rate34.9 % 41.6 % 35.2 %

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

 December 31
 2018 2017
 Evergy Westar Energy KCP&L Evergy Westar Energy 
KCP&L(a)
Deferred tax assets:(millions)
Tax credit carryforward$508.1
 $307.1
 $194.0
 $276.7
 $276.7
 $185.8
Income taxes refundable to customers, net478.1
 233.1
 186.9
 230.3
 230.3
 179.1
Deferred employee benefit costs215.4
 89.6
 118.3
 95.9
 95.9
 124.6
Net operating loss carryforward383.3
 60.7
 119.2
 70.0
 70.0
 131.2
Deferred state income taxes62.5
 62.5
 —
 63.8
 63.8
 —
Alternative minimum tax carryforward73.4
 26.7
 —
 52.2
 52.2
 —
Accrued liabilities82.6
 13.6
 32.8
 13.2
 13.2
 26.0
Other193.5
 101.7
 46.7
 97.9
 97.9
 35.7
Total deferred tax assets before valuation
   allowance
1,996.9
 895.0
 697.9
 900.0
 900.0
 682.4
Valuation allowances(27.3) (1.7) —
 —
 —
 —
Total deferred tax assets, net1,969.6
 893.3
 697.9
 900.0
 900.0
 682.4
Deferred tax liabilities:           
Plant-related(3,164.9) (1,491.6) (1,199.7) (1,483.3) (1,483.3) (1,127.0)
Deferred employee benefit costs(199.9) (89.6) (86.1) (95.9) (95.9) (96.0)
Acquisition premium(72.6) (72.6) —
 (76.6) (76.6) —
Other(131.4) (54.9) (43.9) (59.9) (59.9) (75.5)
Total deferred tax liabilities(3,568.8) (1,708.7) (1,329.7) (1,715.7) (1,715.7) (1,298.5)
Net deferred income tax liabilities$(1,599.2) $(815.4) $(631.8) $(815.7) $(815.7) $(616.1)
(a)
KCP&L amounts are not included in consolidated Evergy at December 31, 2017.
Tax Credit Carryforwards
At December 31, 20182019 and 20172018, Evergy had $333.8$379.0 million and $100.0$333.8 million, respectively, of federal general business income tax credit carryforwards.  At December 31, 2019 and 2018, and 2017, Westar EnergyEvergy Kansas Central had $134.0$168.8 million and $100.0$134.0 million, respectively, of federal general business income tax credit carryforwards. At December 31, 20182019 and 20172018, KCP&LEvergy Metro had $192.8$203.2 million and $184.6$192.8 million, respectively, of federal general business income tax credit carryforwards.  The carryforwards for Evergy, Westar EnergyEvergy Kansas Central and KCP&L Evergy Metro relate primarily to wind
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production tax credits and advanced coal investment tax credits and expire in the years 2020 to 2038.2039. Approximately $0.5$0.4 million of Evergy's credits are related to Low Income Housing credits that were acquired in Great Plains Energy's acquisition of GMO.Evergy Missouri West.  Due to federal limitations on the utilization of income tax attributes acquired in the GMOEvergy Missouri West acquisition, Evergy expects a portion of these credits to expire unutilized and has provided a valuation allowance against $0.4$0.3 million of the federal income tax benefit.

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The year of origin of Evergy's, Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's related tax benefit amounts for federal tax credit carryforwards as of December 31, 20182019 are detailed in the following table.
  Amount of Benefit 
Year of Origin Evergy Evergy Kansas Central Evergy Metro 
  (millions) 
2000 $7.3
 $7.3
 $—
 
2001 9.7
 9.7
 —
 
2002 0.3
 0.2
 —
 
2003 0.3
 0.2
 —
 
2004 0.3
 0.2
 —
 
2005 0.3
 0.2
 —
 
2006 0.3
 0.2
 —
 
2007 0.6
 0.6
 —
 
2008 39.8
 0.5
 38.9
 
2009 47.7
 0.2
 47.4
 
2010 18.4
 —
 18.2
 
2011 13.3
 —
 13.2
 
2012 14.4
 3.6
 10.7
 
2013 24.3
 11.3
 12.9
 
2014 24.1
 10.7
 13.0
 
2015 24.7
 10.9
 13.2
 
2016 27.1
 11.0
 12.4
 
2017 43.9
 35.1
 8.2
 
2018 43.9
 36.3
 7.5
 
2019 38.3
 30.6
 7.6
 
  $379.0
 $168.8
 $203.2
 

  Amount of Benefit 
Year of Origin Evergy Westar Energy KCP&L 
  (millions) 
2000 $7.3
 $7.3
 $—
 
2001 9.8
 9.7
 —
 
2002 0.3
 0.2
 —
 
2003 0.3
 0.2
 —
 
2004 0.3
 0.2
 —
 
2005 0.3
 0.2
 —
 
2006 0.3
 0.2
 —
 
2007 0.6
 0.5
 —
 
2008 39.8
 0.5
 38.9
 
2009 47.7
 0.2
 47.4
 
2010 18.3
 —
 18.2
 
2011 13.3
 —
 13.2
 
2012 13.7
 2.9
 10.7
 
2013 23.5
 10.5
 12.9
 
2014 23.6
 10.2
 13.0
 
2015 23.5
 10.1
 12.8
 
2016 26.1
 10.1
 12.4
 
2017 43.3
 34.5
 8.2
 
2018 41.8
 36.5
 5.1
 
  $333.8
 $134.0
 $192.8
 
At December 31, 2018 and 2017, Evergy had $73.4 million and $52.2 million of federal alternative minimum tax (AMT) credit carryforwards. At December 31, 2019 and 2018, and 2017, Westar EnergyEvergy had $26.7$169.9 million and $52.2 million of federal AMT carryforwards.  These credits do not expire and can be used to reduce taxes paid in the future or become refundable starting in 2018. Due to potential federal budget sequestration reductions for refundable income tax credits, Evergy expects a portion of these credits will not be refunded and has provided a valuation allowance against $7.9 million of the federal income tax benefit.
At December 31, 2018 and 2017, Evergy had $174.3 million and $176.7 million, respectively, of tax benefits related to state income tax credit carryforwards. At December 31, 2019 and 2018, and 2017, Westar EnergyEvergy Kansas Central had $173.1$168.5 million and $176.7$173.1 million, respectively, of tax benefit related to state income tax credit carryforwards. At December 31, 2019 and 2018, and 2017, KCP&LEvergy Metro had $1.2 million of tax benefits related to state income tax credit carryforwards. The state income tax credits relate primarily to the Kansas high performance incentive program tax credits and expire in the years 2024 to 2033.2034.
Net Operating Loss Carryforwards
At December 31, 20182019 and 20172018, Evergy had $324.2$132.4 million and $38.0$324.2 million, respectively, of tax benefits related to federal net operating loss (NOL) carryforwards.  At December 31, 2019 and 2018, and 2017, Westar EnergyEvergy Kansas Central had $40.1
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$12.3 million and $38.0$40.1 million, respectively, of tax benefits related to federal NOL carryforwards. At December 31, 2019 and 2018, and 2017, KCP&LEvergy Metro had $107.5$56.2 million and $107.3$107.5 million, respectively, of tax benefits related to federal NOL carryforwards. Approximately $78.1$51.1 million at December 31, 20182019are tax benefits related to NOLs that were acquired in the GMOEvergy Missouri West acquisition. Due to federal limitations on the utilization of income tax attributes acquired in the GMOEvergy Missouri West acquisition, Evergy expects a portion of these credits to expire unutilized and has provided a valuation allowance against $7.1 million of the federal income tax benefit. The federal NOL carryforwards expire in years 20222023 to 2037.  

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The year of origin of Evergy's, Westar Energy'sEvergy Kansas Central's and KCP&L'sEvergy Metro's related tax benefit amounts for federal NOL carryforwards as of December 31, 20182019 are detailed in the following table.
  Amount of Benefit 
Year of Origin Evergy Evergy Kansas Central Evergy Metro 
  (millions) 
2005 $19.1
 $—
 $—
 
2006 32.0
 —
 —
 
2014 2.8
 0.2
 0.9
 
2015 58.8
 —
 55.3
 
2016 4.6
 —
 —
 
2017 15.1
 12.1
 —
 
  $132.4
 $12.3
 $56.2
 

  Amount of Benefit 
Year of Origin Evergy Westar Energy KCP&L 
  (millions) 
2004 $1.6
 $—
 $—
 
2005 44.4
 —
 —
 
2006 32.0
 —
 —
 
2009 21.9
 —
 —
 
2010 2.5
 —
 —
 
2011 65.3
 —
 38.4
 
2012 0.2
 0.2
 —
 
2013 1.5
 0.8
 0.3
 
2014 77.2
 25.0
 12.3
 
2015 59.3
 0.2
 55.6
 
2016 0.8
 0.4
 0.3
 
2017 16.2
 12.3
 0.6
 
2018 1.3
 1.2
 —
 
  $324.2
 $40.1
 $107.5
 
In addition, Evergy also had deferred tax benefits of $59.1$31.0 millionand $26.0$59.1 million related to state NOLs as of December 31, 20182019 and 20172018, respectively.  Westar EnergyEvergy Kansas Central had deferred tax benefits of $20.6$10.8 million and $26.0$20.6 million related to state NOLs as of December 31, 2019 and 2018, and 2017, respectively. KCP&LEvergy Metro had deferred tax benefits of $11.7$5.7 million and $23.9$11.7 million related to state NOLs as of December 31, 20182019 and 2017,2018, respectively. The state NOL carryforwards expire in years 20192020 to 2037.2038. Evergy does not expect to utilize $11.9$10.1 million of NOLs before the expiration date of the carryforwards of NOLs in certain states. Therefore, a valuation allowance has been provided against $11.9$10.1 million of state tax benefits.
Alternative Minimum Tax Carryforwards
At December 31, 2019 and 2018, Evergy had $37.9 million and $73.4 million, respectively, of federal alternative minimum tax (AMT) credit carryforwards. At December 31, 2019 and 2018, Evergy Kansas Central had $13.4 million and $26.7 million, respectively, of federal AMT carryforwards.  These credits do not expire and can be used to reduce taxes paid in the future or become refundable starting in 2018.
Valuation Allowances
Evergy is required to assess the ultimate realization of deferred tax assets using a "more likely than not" assessment threshold.  This assessment takes into consideration tax planning strategies within Evergy's control.  As a result of this assessment, Evergy has established a partial valuation allowance for federal and state tax NOL carryforwards and tax credit carryforwards. During 2018, $0.52019, $9.8 million of tax expensebenefit was recorded in continuing operations primarily related to AMT credits offset by the tax benefit recorded for and the expiration of certain state NOL carryforwards. The remaining valuation allowances against federal and state NOL carryforwards and tax credit carryforwards were acquired as part of the merger and were recorded as part of the purchase accounting entries.
Federal Tax Reform
In December 2017, the U.S. Congress passed and President Donald Trump signed Public Law No. 115-97, commonly referred to as the TCJA. The TCJA represents the first major reform in U.S. income tax law since 1986. Most notably, the TCJA reduces the current top corporate income tax rate from 35% to 21% beginning in 2018, repeals the corporate AMT, makes existing AMT tax credit carryforwards refundable, and changes the deductibility
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and taxability of certain items, among other things. Prior to the change in tax rates that has been reflected in their 2018 rate cases, Westar Energy, KCP&LEvergy Kansas Central, Evergy Metro and GMOEvergy Missouri West recovered the cost of income taxes in rates from their customers based on the 35% federal corporate income tax rate.
In January 2018, the KCC issued an order requiring certain regulated public utilities, including Westar EnergyEvergy Kansas Central and KCP&L,Evergy Metro, to begin recording a regulatory liability for the difference between the new federal corporate tax rate and amounts currently collected in rates. In the second quarter of 2018, Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro entered into settlement agreements with KCC staff and other intervenors in which they further agreed to begin deferring any impacts of the TCJA on their excess accumulated deferred income taxes to a regulatory liability. The KCC approved these settlement agreements in June 2018. KCP&LEvergy Metro and GMOEvergy

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Missouri West had also recorded regulatory liabilities in 2018 due to the probability that they would also be required to make similar refunds to their Missouri customers.
The final regulatory treatment of these regulatory liabilities for the refund of tax reform benefits was determined in each of Westar Energy's, KCP&L'sEvergy Kansas Central's, Evergy Metro's and GMO'sEvergy Missouri West's rate cases with the KCC and MPSC. See Note 5 for more information and the amounts of the regulatory liabilities recorded by the Evergy Companies.


Missouri Tax Reform
On June 1, 2018, the Missouri governor signed Senate Bill (S.B.) 884 into law. Most notably, S.B. 884 reduces the corporate income tax rate from 6.25% to 4.0% beginning in 2020, provides for the mandatory use of the single sales factor formula and eliminates intercompany transactions between corporations that file a consolidated Missouri income tax return.
As a result of the change in the Missouri corporate income tax rate, KCP&LEvergy Metro revalued and restated its deferred income tax assets and liabilities as of June 1, 2018. KCP&LEvergy Metro decreased its net deferred income tax liabilities by $46.6 million, primarily consisting of a $28.8 million adjustment for the revaluation and restatement of deferred income tax assets and liabilities included in Missouri jurisdictional rate base and a $9.9 million tax gross-up adjustment for ratemaking purposes. The decrease to KCP&L'sEvergy Metro's net deferred income tax liabilities included in Missouri jurisdictional rate base were offset by a corresponding increase in regulatory liabilities. The net regulatory liabilities will be amortized to customers over a period to be determined in a future rate case.
KCP&LEvergy Metro recognized $15.5 million of income tax benefit primarily related to the difference between KCP&L'sEvergy Metro's revaluation of its deferred income tax assets and liabilities for financial reporting purposes and the amount of the revaluation pertaining to KCP&L'sEvergy Metro's Missouri jurisdictional rate base.
21. LEASES
The Evergy Companies lease office buildings, computer equipment, vehicles, rail cars, generating plant and other property and equipment, including rail cars to serve jointly-owned generating units where Evergy Kansas Central or Evergy Metro is the managing partner and is reimbursed by other joint-owners for the other owners' proportionate share of the costs. Under GAAP, a contract is or contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Evergy Companies assess a contract as being or containing a lease if the contract identifies property, plant and equipment, provides the lessee the right to obtain substantially all of the economic benefits from use of the property, plant and equipment and provides the lessee the right to direct the use of the property, plant and equipment.
The Evergy Companies have entered into several agreements to purchase energy through renewable purchase power agreements that are accounted for as leases that commenced prior to the application of Topic 842.Due to the intermittent nature of renewable generation, these leases have significant variable lease payments not included in the initial and subsequent measurement of the lease liability. Variable lease payments are expensed as incurred. In addition, certain other contracts contain payment for activity that transfers a separate good or service such as utilities or common area maintenance. The Evergy Companies have elected a practical expedient permitted by GAAP to not separate such components of the lease from other lease components for all leases.
The Evergy, Evergy Kansas Central and Evergy Metro leases have remaining terms ranging from 1 to 19 years, 1 to 19 years and 1 to 26 years, respectively. Leases that have original lease terms of twelve months or less are not recognized on the Evergy Companies’ balance sheets. Some leases have options to renew the lease or terminate early at the election of the Evergy Companies. Judgment is applied at lease commencement to determine the reasonably certain lease term based on then-current assumptions about use of the leased asset, market conditions and terms in the contract. The judgment applied to determine the lease term can significantly impact the measurement of the lease liability and right-of-use asset and lease classification.
The Evergy Companies typically discount lease payments over the term of the lease using their incremental borrowing rates at lease commencement to measure its initial and subsequent lease liability. For leases that existed

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20.at the initial application of Topic 842, the Evergy Companies used the incremental borrowing rates that corresponded to the remaining lease term as of January 1, 2019.
Leases may be classified as either operating leases or finance leases. The lease classification is based on assumptions of the lease term and discount rate, as discussed above, and the fair market value and economic life of the leased asset. Operating leases recognize a consistent expense each period over the lease term, while finance leases will result in the separate presentation of interest expense on the lease liability and amortization of the right-of-use asset. Finance leases are treated as operating leases for rate-making purposes and as such, the Evergy Companies defer to a regulatory asset or liability any material differences between expense recognition and the timing of payments in order to match what is being recovered in customer rates.
The Evergy Companies’ lease expense is detailed in the following table.
Year Ended December 31, 2019 Evergy Evergy Kansas Central Evergy Metro
Finance lease costs (millions)
Amortization of right-of-use assets $5.2
 $5.0
 $0.1
Interest on lease liabilities 2.9
 2.7
 0.1
Operating lease costs 23.8
 13.2
 9.2
Short-term lease costs 4.0
 1.2
 2.6
Variable lease costs for renewable purchase power agreements 313.0
 130.8
 129.2
Total lease costs $348.9
 $152.9
 $141.2
Supplemental cash flow information related to the Evergy Companies' leases is detailed in the following table.
Year Ended December 31, 2019Evergy Evergy Kansas Central Evergy Metro
Cash paid for amounts included in the measurement of lease liabilities:(millions)
Operating cash flows from operating leases$21.7
 $13.7
 $9.9
Operating cash flows from finance leases2.8
 2.6
 0.1
Financing cash flows from finance leases5.0
 4.8
 0.1
Right-of-use assets obtained in exchange for new operating lease liabilities10.4
 6.1
 2.4
Right-of-use assets obtained in exchange for new finance lease liabilities8.3
 8.3
 —


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


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

22. QUARTERLY OPERATING RESULTS (UNAUDITED)
 Quarter Quarter
Evergy 1st 2nd 3rd 4th 1st 2nd 3rd 4th
2019 (millions, except per share amounts)
Operating revenue $1,216.9
 $1,221.7
 $1,577.6
 $1,131.6
Operating income 209.6
 271.7
 538.7
 165.8
Net income 103.4
 144.6
 370.9
 66.7
Net income attributable to Evergy, Inc. 99.5
 139.7
 366.8
 63.9
Basic and diluted earnings per common share 0.39
 0.57
 1.56
 0.28
2018 (millions, except per share amounts)        
Operating revenue $600.2
 $893.4
 $1,582.5
 $1,199.8
 $600.2
 $893.4
 $1,582.5
 $1,199.8
Operating income 123.5
 126.9
 533.1
 150.1
 123.5
 126.9
 533.1
 150.1
Net income 62.9
 104.4
 357.6
 21.1
 62.9
 104.4
 357.6
 21.1
Net income attributable to Evergy, Inc. 60.5
 101.8
 355.0
 18.5
 60.5
 101.8
 355.0
 18.5
Basic and diluted earnings per common share 0.42
 0.56
 1.32
 0.07
 0.42
 0.56
 1.32
 0.07
2017        
Operating revenue $572.6
 $609.3
 $794.3
 $594.8
Operating income 131.4
 160.2
 264.9
 122.3
Net income 63.5
 76.0
 160.7
 36.3
Net income attributable to Evergy, Inc. 59.7
 72.1
 158.3
 33.8
Basic and diluted earnings per common share 0.42
 0.50
 1.11
 0.24

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 Quarter Quarter
Westar Energy 1st 2nd 3rd 4th
Evergy Kansas Central 1st 2nd 3rd 4th
2019 (millions)
Operating revenue $596.8
 $585.5
 $749.0
 $576.1
Operating income 124.3
 127.6
 242.4
 102.2
Net income 68.3
 67.2
 168.2
 55.4
Net income attributable to Evergy Kansas Central, Inc. 64.4
 62.3
 164.1
 52.6
2018 (millions)        
Operating revenue $600.2
 $650.9
 $764.8
 $599.0
 $600.2
 $650.9
 $764.8
 $599.0
Operating income 123.5
 76.1
 256.9
 94.0
 123.5
 76.1
 256.9
 94.0
Net income 62.9
 77.6
 178.0
 30.6
 62.9
 77.6
 178.0
 30.6
Net income attributable to Westar Energy, Inc. 60.5
 75.0
 175.4
 28.0
2017        
Operating revenue $572.6
 $609.3
 $794.3
 $594.8
Operating income 131.4
 160.2
 264.9
 122.3
Net income 63.5
 76.0
 160.7
 36.3
Net income attributable to Westar Energy, Inc. 59.7
 72.1
 158.3
 33.8
Net income attributable to Evergy Kansas Central, Inc. 60.5
 75.0
 175.4
 28.0
  Quarter
Evergy Metro 1st 2nd 3rd 4th
2019 (millions)
Operating revenue $425.4
 $437.0
 $568.8
 $375.3
Operating income 56.9
 101.9
 215.5
 52.2
Net income 16.0
 59.4
 151.9
 27.9
2018        
Operating revenue $397.1
 $452.2
 $559.6
 $414.2
Operating income 61.0
 114.7
 189.4
 44.7
Net income (loss) 20.2
 24.6
 120.3
 (2.2)
  Quarter
KCP&L 1st 2nd 3rd 4th
2018 (millions)
Operating revenue $397.1
 $452.2
 $559.6
 $414.2
Operating income 61.0
 114.7
 189.4
 44.7
Net income (loss) 20.2
 24.6
 120.3
 (2.2)
2017        
Operating revenue $395.9
 $482.7
 $595.7
 $416.4
Operating income 65.0
 126.2
 219.8
 75.4
Net income 14.2
 49.6
 114.1
 1.9

Quarterly data is subject to seasonal fluctuations with peak periods occurring in the summer months. Evergy's results reflect the results of operations of Westar EnergyEvergy Kansas Central for all periods in 2017.2018 and Evergy had separate operationsMetro and includes the results of operation of KCP&L and GMOEvergy Missouri West beginning with the quarter ended June 30, 2018. See Note 1 for more information.
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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
EVERGY
Disclosure Controls and Procedures
Evergy carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act).  This evaluation was conducted under the supervision, and with the participation, of Evergy's management, including the chief executive officer and chief financial officer, and Evergy's disclosure committee.  Based upon this evaluation, the chief executive officer and chief financial officer of Evergy have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy were effective at a reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There has been no change in Evergy’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2018,2019, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

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Management's Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for Evergy.  Under the supervision and with the participation of Evergy’s chief executive officer and chief financial officer, management evaluated the effectiveness of Evergy’s internal control over financial reporting as of December 31, 2018.2019.  Management used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission.
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.  Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management has concluded that, as of December 31, 2018,2019, Evergy’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.  Deloitte & Touche LLP, the independent registered public accounting firm that audited the financial statements included in this annual report on Form 10-K, has issued its attestation report on Evergy’s internal control over financial reporting, which is included below.



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of Evergy, Inc.
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Evergy, Inc. and subsidiaries (the "Company") as of December 31, 2018,2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018,2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedules as of and for the year ended December 31, 2018,2019, of the Company and our report dated February 21, 2019,March 2, 2020, expressed an unqualified opinion on those financial statements and financial statement schedules.
Basis for Opinion
The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/DELOITTE & TOUCHE LLP
Kansas City, Missouri  
February 21, 2019March 2, 2020

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WESTAR ENERGYEVERGY KANSAS CENTRAL
Disclosure Controls and Procedures
Westar EnergyEvergy 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 Westar Energy'sEvergy Kansas Central's management, including the chief executive officer and chief financial officer, and Westar Energy'sEvergy Kansas Central's disclosure committee.  Based upon this evaluation, the chief executive officer and chief financial officer of Westar EnergyEvergy Kansas Central have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Westar EnergyEvergy Kansas Central were effective at a reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There has been no change in Westar Energy'sEvergy 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 December 31, 2018,2019, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.
Management's Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for Westar Energy.Evergy Kansas Central.  Under the supervision and with the participation of Westar Energy’sEvergy Kansas Central’s chief executive officer and chief financial officer, management evaluated the effectiveness of Westar Energy’sEvergy Kansas Central’s internal control over financial reporting as of December 31, 2018.2019. Management used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the COSO of the Treadway Commission.
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.  Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management has concluded that, as of December 31, 2018, Westar Energy’s2019, Evergy Kansas Central’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.  
KCP&LEVERGY METRO
Disclosure Controls and Procedures
KCP&LEvergy 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 KCP&L'sEvergy Metro's management, including the chief executive officer and chief financial officer, and KCP&L'sEvergy Metro's disclosure committee.  Based upon this evaluation, the chief executive officer and chief financial officer of KCP&LEvergy Metro have concluded as of the end of the period covered by this report that the disclosure controls and procedures of KCP&LEvergy Metro were effective at a reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There has been no change in KCP&L'sEvergy 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 December 31, 2018,2019, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

Management's Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for KCP&L.Evergy Metro.  Under the supervision and with the participation of KCP&L’sEvergy Metro’s chief executive officer and chief financial officer, management evaluated the effectiveness of KCP&L’sEvergy Metro’s internal control over financial reporting as of December 31, 2018.2019.  Management used for

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used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the COSO of the Treadway Commission.
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.  Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management has concluded that, as of December 31, 2018, KCP&L’s2019, Evergy Metro’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.  
ITEM 9B.  OTHER INFORMATION
None.Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations tab on their website, www.evergy.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on Evergy's website is not part of this document.
PART III
Information required by Items 10-14 of Part III of this Form 10-K with respect to Evergy will be included in an amendment to this Form 10-K, or incorporated by reference to Evergy's definitive proxy statement with respect to its 20192020 Annual Meeting of Shareholders (Proxy Statement), which will be filed with the SEC on or before April 30, 2019.29, 2020.
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Evergy
The information required by this item iswill be included in an amendment to this Form 10-K or will be incorporated by reference from the following sections of the Proxy Statement for the 2019 Annual Meeting of Shareholders:Statement:
Information regarding the directors of Evergy iswill be contained in the Proxy Statement section titled "Election of Directors."
InformationIf applicable, information regarding compliance with Section 16(a) of the Exchange Act iswill be contained in the Proxy Statement section titled "Security Ownership of CertainDirectors, Management and Beneficial Owners, Directors and Officers - Section 16(a) Beneficial Ownership Reporting Compliance.Owners."
Information regarding the Audit Committee of Evergy iswill be contained in the Proxy Statement section titled "Corporate Governance"Board Structure - Committees of the Board."
Information regarding Evergy's Code of Ethical Business Conduct isEthics will be contained in the Proxy Statement section titled "Corporate Governance - Code of Ethical Business Conduct.Ethics."
Information required by this item regarding Evergy's executive officers is contained in this report in Part I, Item 1 in "Executive"Information About Evergy's Executive Officers."
Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro
Other information required by this item regarding Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K.

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ITEM 11. EXECUTIVE COMPENSATION
Evergy
The information required by this item containedwill be included in an amendment to this Form 10-K or will be incorporated by reference to the following sections titledof the Proxy Statement: "Executive Compensation," "Director Compensation," "Compensation Discussion and Analysis",Analysis," "Compensation Committee Report" and "Director
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Independence - Compensation Committee Interlocks and Insider Participation" of the Proxy Statement is incorporated by reference.Participation."
Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro
Other information required by this item regarding Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Evergy
The information required by this item regarding security ownership of the directors and executive officers of Evergy containedwill be included in an amendment to this Form 10-K or will be incorporated by reference to the section titled "Security Ownership of CertainDirectors, Management and Beneficial Owners, Directors and Officers"Owners" section of the Proxy Statement is incorporated by reference.Statement.
Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro
The information required by this item regarding Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K.
Equity Compensation Plans
Upon the consummation of the merger, Evergy assumed both Westar Energy'sEvergy Kansas Central's LTISA and Great Plains Energy's Amended Long-Term Incentive Plan, which was renamed the Evergy, Inc. Long-Term Incentive Plan. The renamed Evergy Long-Term Incentive Plan permits the grant of restricted stock, restricted stock units, bonus shares, stock options, stock appreciation rights, director shares, director deferred share units, performance shares and other stock-based awards to directors, officers and other employees of Evergy.
The following table provides information, as of December 31, 2018,2019, regarding the number of common shares to be issued upon exercise of outstanding options, warrants and rights, their weighted average exercise price, and the number of shares of common stock remaining available for future issuance. The table excludes shares issued or issuable under any defined contribution savings plans.
     Number of securities     Number of securities
Number of   remaining availableNumber of   remaining available
securities   for future issuancesecurities   for future issuance
to be issued upon Weighted-average under equityto be issued upon Weighted-average under equity
exercise of exercise price of compensation plansexercise of exercise price of compensation plans
outstanding options, outstanding options, (excluding securitiesoutstanding options, outstanding options, (excluding securities
warrants and rights warrants and rights reflected in column (a))warrants and rights warrants and rights reflected in column (a))
Plan Category(a) (b) (c)(a) (b) (c)
Equity compensation plans approved by security holders (1)
              
Evergy Long-Term Incentive Plan 530,359
(2) 
 $—
(3) 
 2,168,693
  673,320
(2) 
 $—
(3) 
 1,937,404
 
Equity compensation plans not approved by security holders —
 —
 —
  —
 —
 —
 
Total 530,359
(2) 
 $—
(3) 
 2,168,693
  673,320
(2) 
 $—
(3) 
 1,937,404
 
(1)The Westar Energy,Evergy Kansas Central, Inc. Long-Term Incentive and Share Award Plan will not be used for future awards. As of December 31, 2018,2019, there were approximately 134,538 time-based restricted stock units87,126 RSUs with only service requirements outstanding under the plan, and approximately 362,324360,368 units outstanding that were deferred pursuant to the Westar Energy,Evergy Kansas Central, Inc. non-employee deferred compensation program. Deferred units will continue to receive deferred dividend equivalents in the form of additional deferred units until payouts pursuant to elections begin.

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(2)Includes 348,496228,256 performance shares at target performance levels, 82,331 time-based restricted share units146,224 RSUs with only service requirements, 197,250 RSUs with performance measures and director deferred share units for 99,532101,590 shares of Evergy common stock outstanding at December 31, 2018.2019.
(3)The performance shares, time-based restricted share unitsRSUs and director deferred share units have no exercise price and therefore are not reflected in the weighted averageweighted-average exercise price.
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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
Evergy
The information required by this item containedwill be included in an amendment to this Form 10-K or will be incorporated by reference to the sections titled "Director Independence" and "Related Party Transactions" sections of the Proxy Statement is incorporated by reference.Statement.
Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro
The information required by this item regarding Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Evergy
The information required by this item regarding the independent auditors of Evergy and its subsidiaries containedwill be included in an amendment to this Form 10-K or will be incorporated by reference to the section titled "Ratification of Appointment of Independent Auditors" section of the Proxy Statement is incorporated by reference.Statement.
Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro
The Audit Committee of the Evergy Board functions as the Audit Committee of Westar EnergyEvergy Kansas Central and KCP&L.Evergy Metro. The following tables set forth the aggregate fees billed by Deloitte & Touche LLP for audit services rendered in connection with the consolidated financial statements and reports for 20182019 and 20172018 and for other services rendered during 20182019 and 20172018 on behalf of Westar EnergyEvergy Kansas Central and KCP&L,Evergy Metro, as well as all out-of-pocket costs incurred in connection with these services:
Westar Energy20182017
Evergy Kansas Central20192018
Fee Category  
Audit Fees$2,168,000
$2,691,000
$2,044,100
$2,168,000
Audit-Related Fees40,000
54,000
24,000
40,000
Tax Fees—
—
—
—
All Other Fees—
—
—
—
Total Fees$2,208,000
$2,745,000
$2,068,100
$2,208,000
KCP&L20182017
Evergy Metro20192018
Fee Category  
Audit Fees$1,801,396
$1,304,550
$1,503,000
$1,801,396
Audit-Related Fees23,000
22,000
24,000
23,000
Tax Fees34,765
24,905
—
34,765
All Other Fees—
—
—
—
Total Fees$1,859,161
$1,351,455
$1,527,000
$1,859,161
Audit Fees: Consists of fees billed for professional services rendered for the audits of the annual consolidated financial statements of Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro and reviews of the interim condensed consolidated financial statements included in quarterly reports. Audit fees also include: services provided by Deloitte & Touche LLP in connection with statutory and regulatory filings or engagements; audit reports on audits of the effectiveness of internal control over financial reporting and other attest services, except those not required by statute or

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regulation; services related to filings with the SEC, including comfort letters, consents and assistance with and review of documents filed with the SEC; and accounting research in support of the audit.
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Audit-Related Fees: Consists of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of consolidated financial statements of Westar EnergyEvergy Kansas Central and KCP&LEvergy Metro and are not reported under "Audit Fees." These services include consultation concerning financial accounting and reporting standards.
Tax Fees: Consists of fees billed for tax compliance and related support of tax returns and other tax services, including assistance with tax audits, and tax research and planning.
All Other Fees: Consists of fees for all other services other than those described above.
Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services
The Audit Committee has adopted policies and procedures for the pre-approval of all audit services, audit-related services, tax services and other services to be provided by the independent registered public accounting firm for Westar EnergyEvergy Kansas Central and KCP&L.Evergy Metro. Under these policies and procedures, the Audit Committee may pre-approve certain types of services, up to the aggregate fee levels it sets. Any proposed service within a pre-approved type of service that would cause the applicable fee level to be exceeded cannot be provided unless the Audit Committee either amends the applicable fee level or specifically approves the proposed service. The Audit Committee, as well, may specifically approve audit, audit-related, tax or other services on a case-by-case basis. Pre-approval is generally provided for up to one year, unless the Audit Committee specifically provides for a different period. Management provides quarterly updates to the Audit Committee regarding actual fees spent with respect to pre-approved services.  The Chair of the Audit Committee may pre-approve audit, audit-related, tax and other services provided by the independent registered public accounting firm as required between meetings and report such pre-approval at the next Audit Committee meeting.
PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
Financial Statements
Evergy, Inc.Page No.
   
a.
Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 2018 2017 and 20162017
6062
   
b.
Consolidated Balance Sheets - December 31, 20182019 and 2017
61
c.
Consolidated Statements of Cash Flows for the years ended December 31, 2018 2017 and 2016
63
   
c.
Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017
65
d.
Consolidated Statements of Changes in Equity for the years ended December 31, 2019, 2018 2017 and 20162017
6466
   
e.
Notes to Consolidated Financial Statements
7577
   
f.
Report of Independent Registered Public Accounting Firm
57
   
Westar Energy,Evergy Kansas Central, Inc. 
   
g.
Consolidated Statements of Income for the years ended December 31, 2019, 2018 2017 and 20162017
65
h.
Consolidated Balance Sheets - December 31, 2018 and 2017
66
i.
Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016
6867

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h.
Consolidated Balance Sheets - December 31, 2019 and 2018
68
i.
Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017
70
j.
Consolidated Statements of Changes in Equity for the years ended December 31, 2019, 2018 2017 and 20162017
6971
   
k.
Notes to Consolidated Financial Statements
77
l.
Report of Independent Registered Public Accounting Firm
60
Evergy Metro, Inc.
m.
Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 2018 and 2017
72
n.
Consolidated Balance Sheets - December 31, 2019 and 2018
73
o.
Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017
75
   
l.
Report of Independent Registered Public Accounting Firm
58
KCP&L
m.
Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017 and 2016
70
n.
Consolidated Balance Sheets - December 31, 2018 and 2017
71
o.
Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016
73
p.
Consolidated Statements of Changes in Equity for the years ended December 31, 2019, 2018 2017 and 20162017
7476
   
q.
Notes to Consolidated Financial Statements

7577
   
r.
Report of Independent Registered Public Accounting Firm

5961
   
Financial Statement Schedules
 Evergy, Inc. 
   
a.
Schedule I - Parent Company Financial Statements
168169
   
b.
Schedule II - Valuation and Qualifying Accounts and Reserves
172173
   
 Westar Energy,Evergy Kansas Central, Inc. 
c.
Schedule II - Valuation and Qualifying Accounts and Reserves
172173
   
 KCP&LEvergy Metro, Inc. 
   
d.
Schedule II - Valuation and Qualifying Accounts and Reserves
173174
   

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Exhibits
Exhibit
Number
 
 
Description of Document
 
 
Registrant
     
2.1*∆
Agreement and Plan of Merger, dated May 29, 2016, by and among Evergy Kansas Central, Inc. (formerly Westar Energy Inc.), Great Plains Energy Incorporated and, from and after its accession thereto, Merger Sub (as defined therein) (Exhibit 2.1 to Great Plains Energy's Form 8-K filed on May 31, 2016).
 Evergy
Westar Energy
Evergy Kansas Central
     
2.2*∆
Amended and Restated Merger Agreement, dated July 9, 2017, by and among Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.), Great Plains Energy Incorporated, Westar Energy, Inc., Monarch Energy Holding, Inc., King Energy, Inc. and, solely for the purposes set forth therein, GP Star, Inc. (Exhibit 2.1 to Great Plains Energy's Form 8-K filed on July 10, 2017).
 Evergy
Westar Energy
Evergy Kansas Central
     
3.1*
Amended and Restated Articles of Incorporation of Evergy, Inc., effective June 4, 2018 (Exhibit 3.1 to Form 8-K filed on June 4, 2018).
 Evergy
     
3.2*
Amended and Restated By-laws of Evergy, Inc., effective June 4, 2018November 27, 2019 (Exhibit 3.23.1 to Form 8-K filed on June 4, 2018)December 2, 2019).
 Evergy
     
3.3*
Amended and Restated Articles of Consolidation of Kansas City Power & Light Company, restatedEvergy Metro, Inc., as of May 6, 2014amended September 16, 2019 (Exhibit 3.23.1 to KCP&L'sEvergy Metro's Form 10-Q for the quarter ended March 31, 2014)September 30, 2019).
 KCP&LEvergy Metro
     
3.4*
Amended and Restated By-laws of Kansas City Power & Light Company,Evergy Metro, Inc., as amended December 10, 2013September 16, 2019 (Exhibit 3.33.2 to KCP&L'sEvergy Metro's Form 8-K filed on December 16, 2013)10-Q for the quarter ended September 30, 2019).
 KCP&LEvergy Metro
     
3.5*
Amended and Restated Articles of Incorporation of Westar Energy,Evergy Kansas Central, Inc., as amended June 4, 2018September 16, 2019 (Exhibit 3.3 to Westar Energy'sEvergy Kansas Central's Form 10-Q for the quarter ended JuneSeptember 30, 2018)2019).
 Westar Energy
Evergy Kansas Central

     
3.6*
Amended and Restated By-laws of Westar Energy,Evergy Kansas Central, Inc., as amended June 4, 2018September 16, 2019 (Exhibit 3.4 to Westar Energy'sEvergy Kansas Central's Form 10-Q for the quarter ended JuneSeptember 30, 2018)2019).
 Westar Energy
Evergy Kansas Central

     
4.1*
Indenture, dated June 1, 2004, between Evergy. Inc. (successor to Great Plains Energy IncorporatedIncorporated) and BNY Midwest Trust Company, as trustee (Exhibit 4.4 to Great Plains Energy's Form 8-A/A filed on June 14, 2004).
 Evergy
     
4.2*
First Supplemental Indenture, dated June 14, 2004, between Evergy. Inc. (successor to Great Plains Energy IncorporatedIncorporated) and BNY Midwest Trust Company, as trustee (Exhibit 4.5 to Great Plains Energy's Form 8-A/A filed on June 14, 2004).
 Evergy
     

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4.3*
Second Supplemental Indenture, dated September 25, 2007, between Evergy. Inc. (successor to Great Plains Energy IncorporatedIncorporated) and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on September 26, 2007).
 Evergy
     
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4.4*
Third Supplemental Indenture, dated August 13, 2010, between Evergy. Inc. (successor to Great Plains Energy IncorporatedIncorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on August 13, 2010).
 Evergy
     
4.5*
Fourth Supplemental Indenture, dated May 19, 2011, between Evergy. Inc. (successor to Great Plains Energy IncorporatedIncorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on May 19, 2011).
 Evergy
     
4.6*
Fifth Supplemental Indenture, dated March 9, 2017, between Evergy. Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Trust Company, N.A. as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on March 9, 2017).
 Evergy
     
4.7*
Sixth Supplemental Indenture, dated June 4, 2018, by and among Great Plains Energy Incorporated, Evergy, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy's Form 8-K filed on June 4, 2018).
 Evergy
     
4.8*
Seventh Supplemental Indenture dated as of September 9, 2019 between Evergy, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Form 8-K filed on September 9, 2019).
Evergy
4.9*
Subordinated Indenture, dated May 18, 2009, between Evergy. Inc. (successor to Great Plains Energy IncorporatedIncorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on May 19, 2009).
 Evergy
     
4.94.10*
Supplemental Indenture No. 1, dated May 18, 2009, between Evergy. Inc. (successor to Great Plains Energy IncorporatedIncorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.2 to Great Plains Energy's Form 8-K filed on May 19, 2009).
 Evergy
     
4.104.11*
Supplemental Indenture No. 2, dated March 22, 2012, between Evergy. Inc. (successor to Great Plains Energy IncorporatedIncorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on March 23, 2012).
 Evergy
     
4.114.12*
Supplemental Indenture No. 3, dated June 4, 2018, by and among Great Plains Energy Incorporated, Evergy, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.2 to Evergy's Form 8-K filed on June 4, 2018).
 Evergy

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4.124.13*
Indenture, dated August 24, 2001, between Evergy Missouri West (formerly Aquila, Inc.) and BankOne Trust Company, N.A., as trustee (Exhibit 4(d) to Registration Statement on Form S-3 (File No. 333-68400) filed by Aquila, Inc. on August 27, 2001).
 Evergy
     
4.134.14*
Second Supplemental Indenture, dated July 3, 2002, between Missouri West, Inc. (formerly Aquila, Inc.) and BankOne Trust Company, N.A., as trustee (Exhibit 4(c) to Form S-4 (File No. 333-100204) filed by Aquila, Inc. on September 30, 2002).
 Evergy
     
4.144.15*
General Mortgage and Deed of Trust, dated December 1, 1986, between Evergy Metro, Inc. (formerly Kansas City Power & Light CompanyCompany) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.12 to KCP&L'sEvergy Metro's Form 10-K for the year ended December 31, 2017).
 Evergy
KCP&L
Evergy Metro
4.16*
Fifth Supplemental Indenture, dated September 1, 1992, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.13 to Evergy Metro's Form 10-K for the year ended December 31, 2017).
Evergy
Evergy Metro
4.17*
Seventh Supplemental Indenture, dated October 1, 1993, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.14 to Evergy Metro's Form 10-K for the year ended December 31, 2017).
Evergy
Evergy Metro
4.18*
Eighth Supplemental Indenture, dated December 1, 1993, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.15 to Evergy Metro's Form 10-K for the year ended December 31, 2017).
Evergy
Evergy Metro
4.19*
Eleventh Supplemental Indenture, dated August 15, 2005, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.2 to Evergy Metro's Form 10-Q for the quarter ended September 30, 2005).
Evergy
Evergy Metro
4.20*
Thirteenth Supplemental Indenture, dated March 1, 2009, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.3 to Evergy Metro's Form 8-K filed on March 24, 2009).
Evergy
Evergy Metro
4.21*
Fourteenth Supplemental Indenture, dated March 1, 2009, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.4 to Evergy Metro's Form 8-K filed on March 24, 2009).
Evergy
Evergy Metro

158
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4.22*
Fifteenth Supplemental Indenture, dated June 30, 2011, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.1 to Evergy Metro's Form 10-Q for the quarter ended June 30, 2011).
Evergy
Evergy Metro
4.23*
Sixteenth Supplemental Indenture, March 1, 2019, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) UMB Bank N.A., as trustee (Exhibit 4.3 to Evergy's Form 8-K filed on March 14, 2019).
Evergy
Evergy Metro
4.24*
Seventeenth Supplemental Indenture, dated March 27, 2019, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.1 to Evergy's Form 8-K filed on March 27, 2019).
Evergy
Evergy Metro
4.25*
Indenture, dated December 1, 2000, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York, as trustee (Exhibit 4(a) to Evergy Metro's Form 8-K filed on December 18, 2000).
Evergy
Evergy Metro
4.26*
Indenture, dated March 1, 2002, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York, as trustee (Exhibit 4.1.b. to Evergy Metro's Form 10-Q for the quarter ended March 31, 2002).
Evergy
Evergy Metro
4.27*
Supplemental Indenture No. 1, dated November 15, 2005, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York, as trustee (Exhibit 4.2.j to Evergy Metro's Form 10-K for the year ended December 31, 2005).
Evergy
Evergy Metro
4.28*
Supplemental Indenture No. 2, dated March 1, 2019, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon, as trustee (Exhibit 4.2 to Evergy's Form 8-K filed on March 14, 2019).
Evergy
Evergy Metro
4.29*
Indenture, dated May 1, 2007, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on June 4, 2007).
Evergy
Evergy Metro
4.30*
Supplemental Indenture No. 1, dated June 4, 2007, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.2 to Evergy Metro's Form 8-K filed on June 4, 2007).
Evergy
Evergy Metro
4.31*
Supplemental Indenture No. 2, dated March 11, 2008, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.2 to Evergy Metro's Form 8-K filed on March 11, 2008).
Evergy
Evergy Metro

159
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4.32*
Supplemental Indenture No. 3, dated September 20, 2011, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on September 20, 2011).
Evergy
Evergy Metro
4.33*
Supplemental Indenture No. 4, dated March 14, 2013, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on March 14, 2013).
Evergy
Evergy Metro
4.34*
Supplemental Indenture No. 5, dated August 18, 2015, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to Everg Metro's Form 8-K filed on August 18, 2015).
Evergy
Evergy Metro
4.35*
Supplemental Indenture No. 6, dated June 15, 2017, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on June 15, 2017).
Evergy
Evergy Metro
4.36*
Supplemental Indenture No. 7, dated March 1, 2018, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on March 1, 2018).
Evergy
Evergy Metro
4.37*
Supplemental Indenture No. 8, dated March 1, 2019, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on March 14, 2019).
Evergy
Evergy Metro
4.38*
Note Purchase Agreement, dated August 16, 2013, among Evergy Missouri West, Inc. (formerly KCP&L Greater Missouri Operations Company) and the purchasers party thereto (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on August 19, 2013).
Evergy
4.39*
Note Purchase Agreement dated February 12, 2019, among Evergy Missouri West, Inc. (formerly KCP&L Greater Missouri Operations Company) and the purchasers party thereto (Exhibit 4.5 to Evergy's Form 10-Q for the quarter ended March 31, 2019).
Evergy
4.40*
Mortgage and Deed of Trust, dated July 1, 1939, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.35 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).
Evergy
Evergy Kansas Central

160
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4.41
*

First Supplemental Indenture, dated July 1, 1939, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.36 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).
Evergy
Evergy Kansas Central
4.42*
Second Supplemental Indenture, dated April 1, 1949, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.37 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).
Evergy
Evergy Kansas Central
4.43*
Sixth Supplemental Indenture, dated October 4, 1951, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.38 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).
Evergy
Evergy Kansas Central
4.44*
Fourteenth Supplemental Indenture, dated May 1, 1976, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.39 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).
Evergy
Evergy Kansas Central
4.45*
Twenty-Eighth Supplemental Indenture, dated July 1, 1992, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee (Exhibit 4.40 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).
Evergy
Evergy Kansas Central
4.46*
Thirty-Second Supplemental Indenture, dated April 15, 1994, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee (Exhibit 4(s) to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 1994).
Evergy
Evergy Kansas Central
4.47*
Thirty-Fourth Supplemental Indenture, dated June 28, 2000, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee (Exhibit 4(v) to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2000).
Evergy
Evergy Kansas Central
4.48*
Thirty-Sixth Supplemental Indenture, dated June 1, 2004, between Evergy Kansas Central, Inc. (formerly Westar Energy Inc.) and BNY Midwest Trust Company, as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on January 18, 2005).
Evergy
Evergy Kansas Central
4.49*
Thirty-Eighth Supplemental Indenture, dated January 18, 2005, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and BNY Midwest Trust Company, as trustee (Exhibit 4.3 to Evergy Kansas Central's Form 8-K filed on January 18, 2005).
Evergy
Evergy Kansas Central
4.50*
Thirty-Ninth Supplemental Indenture, dated June 30, 2005, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and BNY Midwest Trust Company, as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on July 1, 2005).
Evergy
Evergy Kansas Central

161
Table of Contents




     
4.154.51*
Fifth Supplemental Indenture, dated September 1, 1992, between Kansas City Power & Light Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.13 to KCP&L's Form 10-K for the year ended December 31, 2017).
Evergy
KCP&L
4.16*
Seventh Supplemental Indenture, dated October 1, 1993, between Kansas City Power & Light Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.14 to KCP&L's Form 10-K for the year ended December 31, 2017).
Evergy
KCP&L
4.17*
Eighth Supplemental Indenture, dated December 1, 1993, between Kansas City Power & Light Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.15 to KCP&L's Form 10-K for the year ended December 31, 2017).
Evergy
KCP&L
4.18*
Eleventh Supplemental Indenture, dated August 15, 2005, between Kansas City Power & Light Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.2 to KCP&L's Form 10-Q for the quarter ended September 30, 2005).
Evergy
KCP&L
4.19*
TwelfthForty-Second Supplemental Indenture, dated March 1, 2009,2012, between Evergy Kansas City Power & Light Company and UMB Bank, N.A.Central, Inc. (formerly United Missouri Bank of Kansas City, N.A.Westar Energy, Inc.), as trustee (Exhibit 4.2 to KCP&L's Form 8-K filed on March 24, 2009).
Evergy
KCP&L
4.20*
Thirteenth Supplemental Indenture, dated March 1, 2009, between Kansas City Power & Light Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.3 to KCP&L's Form 8-K filed on March 24, 2009).
Evergy
KCP&L
4.21*
Fourteenth Supplemental Indenture, dated March 1, 2009, between Kansas City Power & Light Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.4 to KCP&L's Form 8-K filed on March 24, 2009).
Evergy
KCP&L
4.22*
Fifteenth Supplemental Indenture, dated June 30, 2011, between Kansas City Power & Light Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.1 to KCP&L's Form 10-Q for the quarter ended June 30, 2011).
Evergy
KCP&L
4.23*
Indenture, dated December 1, 2000, between Kansas City Power & Light Company and The Bank of New York, as trustee (Exhibit 4(a) to KCP&L's Form 8-K filed on December 18, 2000).
Evergy
KCP&L
4.24*
Indenture, dated March 1, 2002, between Kansas City Power & Light Company and The Bank of New York, as trustee (Exhibit 4.1.b. to KCP&L's Form 10-Q for the quarter ended March 31, 2002).
Evergy
KCP&L
Table of Contents


4.25*
Supplemental Indenture No. 1, dated November 15, 2005, between Kansas City Power & Light Company and The Bank of New York, as trustee (Exhibit 4.2.j to KCP&L's Form 10-K for the year ended December 31, 2005).
Evergy
KCP&L
4.26*
Indenture, dated May 1, 2007, between Kansas City Power & Light Company and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.1 to KCP&L's Form 8-K filed on June 4, 2007).
Evergy
KCP&L
4.27*
Supplemental Indenture No. 1, dated June 4, 2007, between Kansas City Power & Light Company and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.2 to KCP&L's Form 8-K filed on June 4, 2007).
Evergy
KCP&L
4.28*
Supplemental Indenture No. 2, dated March 11, 2008, between Kansas City Power & Light Company and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.2 to KCP&L's Form 8-K filed on March 11, 2008).
Evergy
KCP&L
4.29*
Supplemental Indenture No. 3, dated September 20, 2011, between Kansas City Power & Light Company and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to KCP&L's Form 8-K filed on September 20, 2011).
Evergy
KCP&L
4.30*
Supplemental Indenture No. 4, dated March 14, 2013, between Kansas City Power & Light Company and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to KCP&L's Form 8-K filed on March 14, 2013).
Evergy
KCP&L
4.31*
Supplemental Indenture No. 5, dated August 18, 2015, between Kansas City Power & Light Company and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to KCP&L's Form 8-K filed on August 18, 2015).
Evergy
KCP&L
4.32*
Supplemental Indenture No. 6, dated June 15, 2017, between KCP&L and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to KCP&L'sEvergy Kansas Central's Form 8-K filed on June 15, 2017)February 29, 2012).
 Evergy
KCP&L
Evergy Kansas Central
     
4.334.52*
Forty-Second Supplemental (Reopening) Indenture, No. 7, dated March 1, 2018,May 17, 2012, between Evergy Kansas City Power & Light CompanyCentral, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to KCP&L'sEvergy Kansas Central's Form 8-K filed on March 1, 2018)May 16, 2012).
 Evergy
KCP&L
Evergy Kansas Central
     
4.344.53*
Note Purchase Agreement, dated August 16, 2013, among KCP&L Greater Missouri Operations Company and the purchasers party thereto (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on August 19, 2013).
Evergy
4.35
Mortgage and Deed of Trust, dated July 1, 1939, between Westar Energy, Inc. (formerly The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee.
Evergy
Westar Energy
Table of Contents


4.36
First Supplemental Indenture, dated July 1, 1939, between Westar Energy, Inc. (formerly The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee.
Evergy
Westar Energy
4.37
Second Supplemental Indenture, dated April 1, 1949, between Westar Energy, Inc. (formerly The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee.
Evergy
Westar Energy
4.38
Sixth Supplemental Indenture, dated October 4, 1951, between Westar Energy, Inc. (formerly The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee.
Evergy
Westar Energy
4.39
Fourteenth Supplemental Indenture, dated May 1, 1976, between Westar Energy, Inc. (formerly The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee.
Evergy
Westar Energy
4.40
Twenty-Eighth Supplemental Indenture, dated July 1, 1992, between Westar Energy, Inc. (formerly Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee.
Evergy
Westar Energy
4.41*
Thirty-Second Supplemental Indenture, dated April 15, 1994, between Westar Energy, Inc. (formerly Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee (Exhibit 4(s) to Westar Energy's Form 10-K for the fiscal year ended December 31, 1994).
Evergy
Westar Energy
4.42*
Thirty-Fourth Supplemental Indenture, dated June 28, 2000, between Westar Energy, Inc. (formerly Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee (Exhibit 4(v) to Westar Energy's Form 10-K for the fiscal year ended December 31, 2000).
Evergy
Westar Energy
4.43*
Thirty-Sixth Supplemental Indenture, dated June 1, 2004, between Westar Energy, Inc. and BNY Midwest Trust Company, as trustee (Exhibit 4.1 to Westar Energy's Form 8-K filed on January 18, 2005).
Evergy
Westar Energy
4.44*
Thirty-Eighth Supplemental Indenture, dated January 18, 2005, between Westar Energy, Inc. and BNY Midwest Trust Company, as trustee (Exhibit 4.3 to Westar Energy's Form 8-K filed on January 18, 2005).
Evergy
Westar Energy
4.45*
Thirty-Ninth Supplemental Indenture, dated June 30, 2005, between Westar Energy, Inc. and BNY Midwest Trust Company, as trustee (Exhibit 4.1 to Westar Energy's Form 8-K filed on July 1, 2005).
Evergy
Westar Energy
4.46*
Forty-SecondForty-Third Supplemental Indenture, dated March 1, 2012,28, 2013, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Westar Energy'sEvergy Kansas Central's Form 8-K filed on February 29, 2012)March 22, 2013).
 Evergy
Westar Energy
Evergy Kansas Central
     
Table of Contents


4.474.54*
Forty-SecondForty-Fourth Supplemental (Reopening) Indenture, dated May 17, 2012,August 19, 2013, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Westar Energy'sEvergy Kansas Central's Form 8-K filed on May 16, 2012)August 14, 2013).
 Evergy
Westar Energy
Evergy Kansas Central
     
4.484.55*
Forty-ThirdForty-Fifth Supplemental Indenture, dated March 28, 2013,November 13, 2015, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Westar Energy'sEvergy Kansas Central's Form 8-K filed on March 22, 2013)November 6, 2015).
 Evergy
Westar Energy
Evergy Kansas Central
     
4.494.56*
Forty-FourthForty-Sixth Supplemental Indenture, dated August 19, 2013,June 20, 2016, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Westar Energy'sEvergy Kansas Central's Form 8-K filed on August 14, 2013)June 17, 2016).
 Evergy
Westar Energy
Evergy Kansas Central
     
4.504.57*
Forty-FifthForty-Seventh Supplemental Indenture, dated November 13, 2015,March 6, 2017, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Westar Energy'sEvergy Kansas Central's Form 8-K filed on November 6, 2015)March 3, 2017).
 Evergy
Westar Energy
Evergy Kansas Central
     
4.514.58*
Forty-SixthForty-Eighth Supplemental Indenture, dated June 20, 2016,4, 2018, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Westar Energy'sEvergy Kansas Central's Form 8-K filed on June 17, 2016)4, 2018).
 Evergy
Westar Energy
Evergy Kansas Central
     
4.524.59*
Forty-SeventhForty-Ninth Supplemental Indenture, dated March 6, 2017,August 19, 2019, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Westar Energy'sEvergy Kansas Central's Form 8-K filed on March 3, 2017)August 19, 2019).
 Evergy
Westar Energy
Evergy Kansas Central
     

162
Table of Contents




4.53
4.60*
Forty-Eighth Supplemental Indenture, dated June 4, 2018, between Westar Energy, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Westar Energy's Form 8-K filed on June 4, 2018).
Evergy
Westar Energy
4.54*
Senior Indenture, dated August 1, 1998, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and Deutsche Bank Trust Company Americas, as trustee, including Form of Senior Note (Exhibit 4.1 to Westar Energy'sEvergy Kansas Central's Form 10-Q for the quarter ended June 30, 1998).
 Evergy
Westar Energy
Evergy Kansas Central
     
4.554.61*
Form of Subordinated Indenture between Evergy Kansas Central, Inc. (formerly Westar Energy Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, including Form of Subordinated Note (Exhibit 4.3 to Westar Energy'sEvergy Kansas Central's Form S-3 filed on March 18, 2016 (No. 333-210266)).
 Evergy
Westar Energy
Evergy Kansas Central
4.62
Description of Securities.
Evergy
Evergy Kansas Central
Evergy Metro
     
10.1*+
Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) Amended Long-Term Incentive Plan, as amended effective on May 3, 2016 (Exhibit 10.4 to Great Plains Energy's Form 10-Q for the quarter ended June 30, 2016).
 Evergy
KCP&L
Evergy Metro
     
10.2*+
Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) Long-Term Incentive Plan Awards Standards and Performance Criteria Effective as of January 1, 2016 (Exhibit 10.3 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2016).
 Evergy
KCP&L
Evergy Metro
     
Table of Contents


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

163
Table of Contents




     
10.9*+
Form of Amendment to Appendix A to Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) 2017 three-year Performance Share Agreement.Agreement (Exhibit 10.9 to Evergy's Form 10-K for the fiscal year ended December 31, 2018).
 Evergy
KCP&L
Evergy Metro
     
10.10*+
Form of Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) 2017 Restricted Stock Agreement (Exhibit 10.2 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2017).
 Evergy
KCP&L
Evergy Metro
     
10.11*+
Form of Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) 2018 three-year Performance Share Agreement (Exhibit 10.1 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2018).
 Evergy
KCP&L
Evergy Metro
     
10.12*+
Form of Amendment to Appendix A to Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) 2018 three-year Performance Share Agreement.Agreement (Exhibit 10.12 to Evergy's Form 10-K for the fiscal year ended December 31, 2018).
 Evergy
KCP&L
Evergy Metro
     
10.13*+
Form of Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) 2018 Restricted Stock Agreement (Exhibit 10.2 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2018).
 Evergy
KCP&L
Evergy Metro
     
10.14*+
Form of Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) 2018 Restricted Stock Unit Agreement (Exhibit 10.1 to Great Plains Energy's Form 8-K filed on June 4, 2018).
 Evergy
KCP&L
Evergy Metro
     
10.15*+
Form of Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) 2018 Cash Retention Payment Agreement (Exhibit 10.2 to Great Plains Energy's Form 8-K filed on June 4, 2018).
 Evergy
KCP&L
Evergy Metro
     
Table of Contents


10.16*+
Evergy, Inc. Long-Term Incentive Plan (formerly the Great Plains Energy Incorporated Long-Term Incentive Plan, as amended), effective as of June 4, 2018 (Exhibit 99.1 to Evergy's Registration Statement on Form S-8 filed on June 15, 2018 (File No. 333-225673)).
 
Evergy
KCP&L
Westar Energy
Evergy Metro
Evergy Kansas Central
     
10.17*+
Form of Evergy, Inc. 2019 Performance-Based Restricted Stock Unit Agreement (Exhibit 10.1 to Evergy's Form 8-K filed on February 15, 2019).
Evergy
Evergy Metro
Evergy Kansas Central
10.18*+
Form of Evergy, Inc. 2019 Time-Based Restricted Stock Unit Agreement (Exhibit 10.2 to Evergy's Form 8-K filed on February 15, 2019).
Evergy
Evergy Metro
Evergy Kansas Central
10.19+
Form of Evergy, Inc. 2020 Performance-Based Restricted Stock Unit Agreement.
Evergy
Evergy Metro
Evergy Kansas Central

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10.20+
Form of Evergy, Inc. 2020 Time-Based Restricted Stock Unit Agreement.
Evergy
Evergy Metro
Evergy Kansas Central
10.21*+
Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Amended and Restated Long-Term Incentive and Share Award Plan, effective January 1, 2016 (Appendix B to Westar Energy'sEvergy Kansas Central's Proxy Statement filed on April 1, 2016).
 Evergy
Westar Energy
10.18*+
Form of Westar Energy, Inc. 2018 Restricted Share Unit Agreement (Exhibit 10.1 to Westar Energy's Form 8-K filed on June 4, 2018).
Evergy
Westar Energy
10.19*+
Great Plains Energy Incorporated Annual Incentive Plan, effective January 1, 2018 - June 30, 2018 (Exhibit 10.4 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2018).
Evergy
KCP&L
10.20*+

Evergy Inc. Annual Incentive Plan, effective July 1, 2018 - December 31, 2018 (Exhibit 10.3 to Evergy's Form 10-Q for the quarter ended September 30, 2018).
Evergy
KCP&L
Westar Energy
10.21*+
Form of Indemnification Agreement with each Great Plains Energy Incorporated officer and director (Exhibit 10-f to Great Plains Energy's Form 10-K for year ended December 31, 1995).
Evergy
KCP&LKansas Central
     
10.22*+
Form of Conforming AmendmentEvergy Kansas Central, Inc. (formerly Westar Energy, Inc.) 2018 Restricted Share Unit Agreement (Exhibit 10.1 to Indemnification Agreement with each Great Plains Energy Incorporated officer and director (Exhibit 10.1.a to Great Plains Energy'sEvergy Kansas Central's Form 10-Q for the quarter ended March 31, 2003)8-K filed on June 4, 2018).
 Evergy
KCP&L
Evergy Kansas Central
     
10.23*+
Evergy, Inc. 2019 Annual Incentive Plan (Exhibit 10.5 to Evergy's Form of Indemnification Agreement with each Great Plains Energy Incorporated director and officer (Exhibit 10.1 to Great Plains Energy's Form 8-K filed on December 8, 2008)10-Q for the quarter ended March 31, 2019).
 
Evergy
KCP&L
Evergy Metro
Evergy Kansas Central
     
10.24*+
Form of Indemnification Agreement with Great Plains Energy Incorporated officers and directors (Exhibit 10.1.p to Great Plains Energy's Form 10-K for the year ended December 31, 2005).Evergy, Inc. 2020 Annual Incentive Plan.
 
Evergy
KCP&L
Evergy Metro
Evergy Kansas Central
     
10.25*+
Form of Indemnification Agreement with Great Plains Energy Incorporated officers and directors (Exhibit 10.1 to Great Plains Energy's Form 8-K filed on December 16, 2013).
Evergy
KCP&L
10.26*+
Form of Indemnification Agreement with Evergy, Inc. officers and directors (Exhibit 10.2 to Evergy's Form 10-Q for the quarter ended September 30, 2018).
 
Evergy
KCP&L
Westar Energy
Evergy Metro
Evergy Kansas Central
     
10.2710.26*+
Form of Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) Change in Control Severance Agreement (Exhibit 10.1.e to Great Plains Energy's Form 10-Q for the quarter ended September 30, 2006).
 Evergy
KCP&L
Evergy Metro
     
Table of Contents


10.2810.27*+
Form of Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Amended and Restated Change in Control Agreement (Exhibit 10(g) to Westar Energy'sEvergy Kansas Central's Form 10-K for the period ended December 31, 2015).
 Evergy
Westar Energy
Evergy Kansas Central
10.28*+
Form of Evergy, Inc. Amended and Restated Change-in-Control Severance Agreement (Exhibit 10.4 to Evergy's Form 10-Q for the quarter ended March 31, 2019).
Evergy
Evergy Metro
Evergy Kansas Central
     
10.29*+
Great Plains Energy Incorporated SupplementalEvergy, Inc. Executive RetirementSeverance Plan, (As Amended and Restated for I.R.C. §409A)dated November 6, 2019 (Exhibit 10.1.1010.1 to Great Plains Energy'sEvergy's Form 10-Q for the quarter ended September 30, 2007)2019).
 Evergy
KCP&L
     
10.30*+
Great Plains Energy Incorporated Supplemental Executive Retirement Plan (As Amended and Restated for I.R.C. §409A), as amended February 10, 2009 (Exhibit 10.1.29 to Great Plains Energy's Form 10-K for the year ended December 31, 2008).
Evergy
KCP&L
10.31*+
Great Plains Energy Incorporated Supplemental Executive Retirement Plan (As Amended and Restated for I.R.C. §409A), as amended December 8, 2009 (Exhibit 10.1.27 to Great Plains Energy's Form 10-K for the year ended December 31, 2009).
Evergy
KCP&L
10.32*+
Amendment dated October 28, 2014, to the Great Plains Energy Incorporated Supplemental Executive Retirement Plan as amended and restated on December 8, 2009 (Exhibit 10.1 to Great Plains Energy's Form 10-Q for the quarter ended September 30, 2014).
Evergy
KCP&L
10.33*+
Evergy, Inc. Supplemental Executive Retirement Plan, effective June 4, 2018 (Exhibit 10.6 to Evergy's Form 10-Q for the quarter ended June 30, 2018).
Evergy
KCP&L
Westar Energy
10.34*+
Westar Energy, Inc. Retirement Benefit Restoration Plan (Exhibit 10.1 to Westar Energy's Form 8-K filed on April 2, 2010).
Evergy
Westar Energy
10.35+
Amendment to Westar Energy, Inc. Retirement Benefit Restoration Plan.
 
Evergy
Evergy Metro
Westar EnergyEvergy Kansas Central
     
10.3610.31*+
Great PlainsEvergy Kansas Central, Inc. (formerly Westar Energy, Incorporated Nonqualified Deferred CompensationInc.) Retirement Benefit Restoration Plan (As Amended and Restated for I.R.C. §409A) (Exhibit 10.1.1110.1 to Great Plains Energy'sEvergy Kansas Central's Form 10-Q for the quarter ended September 30, 2007)8-K filed on April 2, 2010).
 Evergy
KCP&L
Evergy Kansas Central

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10.32*+
Amendment dated December 12, 2018 to Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Retirement Benefit Restoration Plan (Exhibit 10.35 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).
Evergy
Evergy Kansas Central
     
10.3710.33*+
Great Plains Energy Incorporated Nonqualified Deferred Compensation Plan (As Amended and Restated for I.R.C. §409A), amended effective January 1, 2010 (Exhibit 10.1.5 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2010).
Evergy
KCP&L
10.38*+
Kansas Central, Inc. (formerly Westar Energy, Inc.) Non-Employee Director Nonqualified Deferred Compensation Plan, as amended and restated May 17, 2018 (Exhibit 10.8 to Westar Energy'sEvergy Kansas Central's Form 10-Q for the quarter ended June 30, 2018).
 Evergy
Westar Energy
Evergy Kansas Central
     
10.3910.34*+
Evergy, Inc. Nonqualified Deferred Compensation Plan, effective June 4, 2018.2018 (Exhibit 10.39 to Evergy's Form 10-K for the fiscal year ended December 31, 2018).
 
Evergy
KCP&L
Westar Energy
Evergy Metro
Evergy Kansas Central
     
Table of Contents


10.4010.35*+
Summary of Evergy, Inc. Non-Employee Director Compensation (Exhibit 10.9 to Evergy's Form 10-Q for the quarter ended June 30, 2018).
 Evergy
     
10.4110.36*
Credit Agreement, dated September 18, 2018, among Evergy, Inc., Evergy Metro, inc. (formerly Kansas City Power & Light Company,Company), Evergy Missouri West, Inc. (formerly KCP&L Greater Missouri Operations Company,Company), Evergy Kansas Central, Inc. (formerrly Westar Energy, Inc.) , the several lenders from time to time parties thereto, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender and the other issuing lenders and agents party thereto (Exhibit 10.1 to Evergy's Form 8-K filed September 18, 2018).
 
Evergy
KCP&L
Westar Energy
Evergy Metro
Evergy Kansas Central
     
10.4210.37*
First Amendment, dated November 30, 2018, to Credit Agreement, dated September 18, 2018, among Evergy, Inc., Evergy Metro, Inc. (formerly Kansas City Power & Light Company,Company), Evergy Missouri West (formerly KCP&L Greater Missouri Operations Company,Company), Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.), the several lenders from time to time parties thereto, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender and the other issuing lenders and agents party thereto.thereto (Exhibit 10.42 to Evergy's Form 10-K for the fiscal year ended December 31, 2018).
 
Evergy
KCP&L
Westar Energy
Evergy Metro
Evergy Kansas Central
     
10.4310.38*
Term Loan Agreement, dated March 15, 2019, by and among Evergy, Inc., Wells Fargo Bank, National Association, as Administrative Agent, and the lenders referred to therein (Exhibit 10.1 to Evergy's Form 8-K on March 15, 2019).
Evergy
10.39*
Guaranty, dated as of July 15, 2008, issued by Evergy, Inc. (successor to Great Plains Energy IncorporatedIncorporated) in favor of Union Bank of California, N.A., as successor trustee, and the holders of the Evergy Missouri West, Inc. (formerly Aquila, Inc.), 8.27% Senior Notes due November 15, 2021 (Exhibit 10.6 to Great Plains Energy's Form 8-K filed on July 18, 2008).
 Evergy
     
21.1 
List of Subsidiaries of Evergy, Inc.Subsidiaries.
 
Evergy
21.2
List of Subsidiaries of Westar Energy, Inc.Evergy Kansas Central
Westar Energy
     
23.1 
Consent of Independent Registered Public Accounting Firm.
 Evergy
23.2
Consent of Independent Registered Public Accounting Firm.
KCP&L
23.3
Consent of Independent Registered Public Accounting Firm.
Westar Energy
24.1
Powers of Attorney.
Evergy
24.2
Powers of Attorney.
Westar Energy
24.3
Powers of Attorney.
KCP&L
31.1
Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham.
Evergy
31.2
Rule 13a-14(a)/15d-14(a) Certification of Anthony D. Somma.
Evergy
31.3
Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham.
KCP&L
31.4
Rule 13a-14(a)/15d-14(a) Certification of Anthony D. Somma.
KCP&L

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31.523.2 
Consent of Independent Registered Public Accounting Firm.
Evergy Metro
23.3
Consent of Independent Registered Public Accounting Firm.
Evergy Kansas Central
24.1
Powers of Attorney.
Evergy
24.2
Powers of Attorney.
Evergy Kansas Central
24.3
Powers of Attorney.
Evergy Metro
31.1
Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham.
 Westar EnergyEvergy
31.2
Rule 13a-14(a)/15d-14(a) Certification of Anthony D. Somma.
Evergy
31.3
Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham.
Evergy Metro
31.4
Rule 13a-14(a)/15d-14(a) Certification of Anthony D. Somma.
Evergy Metro
31.5
Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham.
Evergy Kansas Central
     
31.6 
Rule 13a-14(a)/15d-14(a) Certification of Anthony D. Somma.
 Westar EnergyEvergy Kansas Central
     
32.1**
Section 1350 Certifications.
 Evergy
     
32.2**
Section 1350 Certifications.
 KCP&LEvergy Metro
     
32.3**
Section 1350 Certifications.
 Westar EnergyEvergy Kansas Central
     
101.INS***XBRL Instance Document. Evergy
KCP&L
Westar Energyn/a
     
101.SCH Inline XBRL Taxonomy Extension Schema Document. 
Evergy
KCP&L
Westar Energy
Evergy Metro
Evergy Kansas Central
     
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document. 
Evergy
KCP&L
Westar Energy
Evergy Metro
Evergy Kansas Central
     
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document. 
Evergy
KCP&L
Westar Energy
Evergy Metro
Evergy Kansas Central
     
101.LAB Inline XBRL Taxonomy Extension Labels Linkbase Document. 
Evergy
KCP&L
Westar Energy
Evergy Metro
Evergy Kansas Central

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101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.
Evergy
Evergy Metro
Evergy Kansas Central
     
101.PRE104 Cover Page Interactive Data File (embedded within the Inline XBRL Taxonomy Extension Presentation Linkbase Document.document). 
Evergy
KCP&L
Westar Energy
Evergy Metro
Evergy Kansas Central
* Filed with the SEC as exhibits to prior SEC filings and are incorporated herein by reference and made a part hereof.  The SEC filings and the exhibit number of the documents so filed, and incorporated herein by reference, are stated in parenthesis in the description of such exhibit.
** Furnished and shall not be deemed filed for the purpose of Section 18 of the Exchange Act.  Such document shall not be incorporated by reference into any registration statement or other document pursuant to the Exchange Act or the Securities Act of 1933, as amended, unless otherwise indicated in such registration statement or other document.
*** The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
+ Indicates management contract or compensatory plan or arrangement.
∆ Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K, and Evergy will furnish the omitted schedules to the SEC upon request.


Copies of any of the exhibits filed with the SEC in connection with this report may be obtained from the applicable registrant upon written request. The registrants agree to furnish to the SEC upon request any instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of total assets of such registrant and its subsidiaries on a consolidated basis.

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Schedule I - Parent Company Financial Statements
EVERGY, INC.
Statement of Income of Parent Company
Statements of Income of Parent CompanyStatements of Income of Parent Company
    
Period from June 4, 2018 through
December 31, 2018
2019 Period from June 4, 2018 through
December 31, 2018
OPERATING EXPENSES: (millions) (millions)
Operating and maintenance$54.6
$19.4
 $54.6
Total Operating Expenses54.6
19.4
 54.6
INCOME FROM OPERATIONS(54.6)(19.4) (54.6)
OTHER INCOME (EXPENSE)    
Equity in earnings from subsidiaries364.7
698.2
 364.7
Investment earnings26.3
32.7
 26.3
Other expense(2.6)(0.1) (2.6)
Total Other Income (Expense), Net388.4
Total Other Income, Net730.8
 388.4
Interest expense19.6
60.7
 19.6
INCOME BEFORE INCOME TAXES314.2
650.7
 314.2
Income tax benefit(10.7)(13.7) (10.7)
NET INCOME$324.9
$664.4
 $324.9
COMPREHENSIVE INCOME    
NET INCOME$324.9
$664.4
 $324.9
OTHER COMPREHENSIVE INCOME 
 
Derivative hedging activity 

 

Loss on derivative hedging instruments(5.4)(64.4) (5.4)
Income tax benefit1.4
16.5
 1.4
Net loss on derivative hedging instruments(4.0)(47.9) (4.0)
Reclassification to expenses, net of taxes1.5
 —
Derivative hedging activity, net of tax(4.0)(46.4) (4.0)
Other comprehensive income from subsidiaries, net1.0
(0.6) 1.0
Total other comprehensive loss(3.0)(47.0) (3.0)
COMPREHENSIVE INCOME$321.9
$617.4
 $321.9
The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

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EVERGY, INC.
Balance Sheet of Parent Company
Balance Sheets of Parent CompanyBalance Sheets of Parent Company
December 31December 31
201820192018
ASSETS (millions, except share amounts)
CURRENT ASSETS:    
Cash and cash equivalents$107.1
$11.6
 $107.1
Accounts receivable from subsidiaries35.2
24.5
 35.2
Notes receivable from subsidiaries2.0
2.0
 2.0
Income taxes receivable8.0
 0.2
Prepaid expenses and other assets2.2
2.4
 2.0
Total Current Assets146.5
48.5
 146.5
OTHER ASSETS: 
 
  
Investment in subsidiaries9,785.6
10,023.1
 9,785.6
Note receivable from subsidiaries634.9
634.9
 634.9
Deferred income taxes36.3
34.2
 36.3
Other1.1
0.9
 1.1
Total Other Assets10,457.9
10,693.1
 10,457.9
TOTAL ASSETS$10,604.4
$10,741.6
 $10,604.4
LIABILITIES AND EQUITY    
CURRENT LIABILITIES:    
Notes payable$20.0
 $—
Accounts payable to subsidiaries28.1
13.1
 28.1
Accrued interest2.1
14.6
 2.1
Derivative instruments5.4
—
 5.4
Other6.3
8.1
 6.3
Total Current Liabilities41.9
55.8
 41.9
LONG-TERM LIABILITIES:    
Long-term debt, net638.1
2,223.7
 638.1
Other17.6
16.9
 17.6
Total Long-Term Liabilities655.7
2,240.6
 655.7
Commitments and Contingencies (Note 14) 
Commitments and Contingencies (Note 15)


 


EQUITY: 
 
  
Evergy, Inc. Shareholders' Equity: 
 
  
Common stock - 600,000,000 shares authorized, without par value, 255,326,252 shares issued8,668.3
Common stock - 600,000,000 shares authorized, without par value, 226,641,443 shares issued7,053.7
 8,668.3
Retained earnings1,241.5
1,441.5
 1,241.5
Accumulated other comprehensive loss(3.0)(50.0) (3.0)
Total shareholders' equity9,906.8
8,445.2
 9,906.8
TOTAL LIABILITIES AND EQUITY10,604.4
$10,741.6
 10,604.4
The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

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EVERGY, INC.
Statement of Cash Flow of Parent Company
Statements of Cash Flows of Parent CompanyStatements of Cash Flows of Parent Company
    
Period from June 4, 2018 through
December 31, 2018
2019 Period from June 4, 2018 through
December 31, 2018
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:(millions)(millions)
Net income$324.9
$664.4
 $324.9
Adjustments to reconcile income to net cash from operating activities:    
Non-cash compensation10.0
16.3
 10.0
Net deferred income taxes and credits(6.3)21.4
 (6.3)
Equity in earnings from subsidiaries(364.7)(698.2) (364.7)
Other2.1
 —
Changes in working capital items:    
Accounts receivable from subsidiaries(8.5)8.9
 (8.5)
Income taxes receivable(7.8) (0.2)
Prepaid expenses and other current assets(1.2)(0.1) (1.0)
Accounts payable to subsidiaries4.7
(15.0) 4.7
Accrued taxes(35.2)—
 (35.2)
Accrued interest12.5
 (13.6)
Other current liabilities(11.2)1.7
 2.4
Cash dividends from subsidiaries236.0
460.0
 236.0
Changes in other assets0.1
0.2
 0.1
Changes in other liabilities20.0
(3.5) 20.0
Cash Flows from Operating Activities168.6
462.9
 168.6
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:    
Cash acquired from the merger with Great Plains Energy1,142.2
—
 1,142.2
Proceeds from interest rate swap140.6
—
 140.6
Cash Flows from Investing Activities1,282.8
—
 1,282.8
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:    
Short term debt, net(56.1)20.0
 (56.1)
Proceeds from long-term debt1,585.0
 —
Payment for settlement of interest rate swap accounted for as a cash flow hedge(69.8) —
Cash dividends paid(245.9)(462.5) (245.9)
Repurchase of common stock(1,042.3)(1,628.7) (1,042.3)
Other financing activities(2.4) —
Cash Flows used in Financing Activities(1,344.3)(558.4) (1,344.3)
NET CHANGE IN CASH AND CASH EQUIVALENTS107.1
(95.5) 107.1
CASH AND CASH EQUIVALENTS:    
Beginning of period—
107.1
 —
End of period$107.1
$11.6
 $107.1
The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

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EVERGY, INC.
NOTES TO FINANCIAL STATEMENTS OF PARENT COMPANY
The Evergy, Inc. Notes to Consolidated Financial Statements in Part II, Item 8 should be read in conjunction with the Evergy, Inc. Parent Company Financial Statements.
1. ORGANIZATION AND BASIS OF PRESENTATION
The Evergy, Inc. Parent Company Financial Statements have been prepared to comply with Rule 12-04 of Regulation S-X.
Evergy, Inc. was incorporated in 2017 as Monarch Energy, a wholly-owned subsidiary of Great Plains Energy. Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy, Inc. and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended Merger Agreement. On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, Inc., with Evergy, Inc. surviving the merger and King Energy merged into Westar Energy,Evergy Kansas Central, with Westar EnergyEvergy Kansas Central surviving the merger. These merger transactions resulted in Evergy, Inc. becoming the parent entity of Westar EnergyEvergy Kansas Central and the direct subsidiaries of Great Plains Energy, including KCP&LEvergy Metro and GMO.Evergy Missouri West.
See Note 2 ofto the consolidated financial statements for additional information regarding the merger.
Evergy, Inc. operates primarily through its wholly-owned direct subsidiaries. Evergy, Inc.'s investments in subsidiaries are accounted for using the equity method. Fair value adjustments and goodwill related to the acquired assets and liabilities of Great Plains Energy and its direct subsidiaries are only reflected on Evergy's consolidated financial statements and as such, are not included in Evergy, Inc.'s Parent Company Financial Statements. See Note 1 to the consolidated financial statement for additional information.
2. LONG-TERM DEBT
See Note 1213 to the consolidated financial statements for additional information on Evergy, Inc.'s long-term debt.
3. GUARANTEES
See Note 1516 to the consolidated financial statements for additional information regarding Evergy, Inc.'s guarantees.
4. DIVIDENDS
Cash dividends paid to Evergy, Inc. by its subsidiaries were $460.0 million for the year ended December 31, 2019 and $236.0 million for the period from June 4, 2018 through December 31, 2018. See Note 1718 to the consolidated financial statements for information regarding the dividend restrictions of Evergy, Inc. and its subsidiaries.

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Schedule II - Valuation and Qualifying Accounts and Reserves
Evergy, Inc.Valuation and Qualifying Accounts
Years Ended December 31, 2018, 2017 and 2016
Years Ended December 31, 2019, 2018 and 2017Years Ended December 31, 2019, 2018 and 2017
                      
   Additions        Additions     
 Charged  Charged 
Balance AtTo CostsCharged BalanceBalance AtTo CostsCharged Balance
BeginningAndTo Other At EndBeginningAndTo Other At End
DescriptionOf PeriodExpensesAccountsDeductionsOf PeriodOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2019(millions)
Allowance for uncollectible accounts $9.2
 $27.2
 $12.4
(a) 
 $38.3
(b) 
 $10.5
 
Tax valuation allowance 27.3
 0.6
 —
 10.4
(c) 
 17.5
 
Year Ended December 31, 2018(millions)           
Allowance for uncollectible accounts $6.7
 $20.7
 $16.9
(e) 
 $35.1
(b) 
 $9.2
  $6.7
 $20.7
 $16.9
(e) 
 $35.1
(b) 
 $9.2
 
Tax valuation allowance —
 2.2
 26.8
(d) 
 1.7
(c) 
 27.3
  —
 2.2
 26.8
(d) 
 1.7
(c) 
 27.3
 
Year Ended December 31, 2017                      
Allowance for uncollectible accounts $6.7
 $10.5
 $7.0
(a) 
 $17.5
(b) 
 $6.7
  $6.7
 $10.5
 $7.0
(a) 
 $17.5
(b) 
 $6.7
 
Year Ended December 31, 2016           
Allowance for uncollectible accounts $5.3
 $12.2
 $6.2
(a) 
 $17.0
(b) 
 $6.7
 
(a) Recoveries.
(b) Uncollectible accounts charged off.
(c) Reversal of tax valuation allowance.
(d) Primarily represents the addition of Great Plains Energy's allowance as of the date of the merger.
(e) Recoveries and the addition of Great Plains Energy's allowance as of the date of the merger.
Westar Energy, Inc.
Evergy Kansas Central, Inc.Evergy Kansas Central, Inc.
Valuation and Qualifying Accounts
Years Ended December 31, 2018, 2017 and 2016
Years Ended December 31, 2019, 2018 and 2017Years Ended December 31, 2019, 2018 and 2017
                      
   Additions        Additions     
 Charged  Charged 
Balance AtTo CostsCharged BalanceBalance AtTo CostsCharged Balance
BeginningAndTo Other At EndBeginningAndTo Other At End
DescriptionOf PeriodExpensesAccountsDeductionsOf PeriodOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2019(millions)
Allowance for uncollectible accounts $3.9
 $7.2
 $3.4
(a) 
 $10.7
(b) 
 $3.8
 
Tax valuation allowance 1.7
 —
 —
 1.7
(c) 
 —
 
Year Ended December 31, 2018(millions)           
Allowance for uncollectible accounts $6.7
 $9.0
 $7.4
(a) 
 $19.2
(b) 
 $3.9
  $6.7
 $9.0
 $7.4
(a) 
 $19.2
(b)��
 $3.9
 
Tax valuation allowance —
 1.7
 —
 —
 1.7
  —
 1.7
 —
 —
 1.7
 
Year Ended December 31, 2017                      
Allowance for uncollectible accounts $6.7
 $10.5
 $7.0
(a) 
 $17.5
(b) 
 $6.7
  $6.7
 $10.5
 $7.0
(a) 
 $17.5
(b) 
 $6.7
 
Year Ended December 31, 2016           
Allowance for uncollectible accounts $5.3
 $12.2
 $6.2
(a) 
 $17.0
(b) 
 $6.7
 
(a) Recoveries.
(b) Uncollectible accounts charged off.

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Kansas City Power & Light Company
Valuation and Qualifying Accounts
Years Ended December 31, 2018, 2017 and 2016
                
    Additions      
  Charged   
 Balance AtTo CostsCharged Balance
 BeginningAndTo Other At End
DescriptionOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2018(millions)
Allowance for uncollectible accounts $2.2
  $13.1
  $4.4
(a) 
 $15.9
(b) 
 $3.8
 
Year Ended December 31, 2017               
Allowance for uncollectible accounts $1.8
  $7.5
  $5.6
(a) 
 $12.7
(b) 
 $2.2
 
Tax valuation allowance —
  1.2
  —
  1.2
(c) 
 —
 
Year Ended December 31, 2016               
Allowance for uncollectible accounts $1.8
  $6.4
  $5.5
(a) 
 $11.9
(b)��
 $1.8
 
Tax valuation allowance 0.7
  —
  —
  0.7
(c) 
 —
 
(a) Recoveries.
(b) Uncollectible accounts charged off.
(c) Reversal of tax valuation allowance.

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Evergy Metro, Inc.
Valuation and Qualifying Accounts
Years Ended December 31, 2019, 2018 and 2017
                
    Additions      
  Charged   
 Balance AtTo CostsCharged Balance
 BeginningAndTo Other At End
DescriptionOf PeriodExpensesAccountsDeductionsOf Period
Year Ended December 31, 2019(millions)
Allowance for uncollectible accounts $3.8
  $13.7
  $6.3
(a) 
 $19.2
(b) 
 $4.6
 
Year Ended December 31, 2018             
 
Allowance for uncollectible accounts $2.2
  $13.1
  $4.4
(a) 
 $15.9
(b) 
 $3.8
 
Year Ended December 31, 2017               
Allowance for uncollectible accounts $1.8
  $7.5
  $5.6
(a) 
 $12.7
(b) 
 $2.2
 
Tax valuation allowance —
  1.2
  —
  1.2
(c) 
 —
 
(a) Recoveries.
(b) Uncollectible accounts charged off.
(c) Reversal of tax valuation allowance.

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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 EVERGY, INC. 
   
Date: February 21, 2019March 2, 2020
By: /s/ Terry Bassham
 
 Terry Bassham
 
 President and Chief Executive Officer 


Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
SignatureTitle Date
/s/ Terry BasshamDirector, President and Chief Executive Officer)February 21, 2019March 2, 2020
Terry Bassham(Principal Executive Officer))
  )
/s/ Anthony D. SommaExecutive Vice President and Chief Financial Officer)
Anthony D. Somma(Principal Financial Officer))
  )
/s/ Steven P. BusserVice President - Risk Management and Controller)
Steven P. Busser(Principal Accounting Officer))
  )
Mark A. Ruelle*Chairman of the Board of Directors)
  )
Mollie Hale Carter*Director)
  )
Charles Q. Chandler IV*Director)
  )
Gary D. Forsee*Director)
  )
Scott D. Grimes*Director)
  )
Richard L. Hawley*Director)
  )
Thomas D. Hyde*Director)
  )
B. Anthony Isaac*Director)
  )
Sandra A.J. Lawrence*Director)
  )
Ann D. Murtlow*Director)
  )
Sandra J. Price*Director)
  )
John J. Sherman*Director)
  )
S. Carl Soderstrom Jr.*Director)
)
John Arthur Stall*Director)
*By    /s/ Terry Bassham
Terry Bassham
Attorney-in-Fact*



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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.                
 WESTAR ENERGY,EVERGY KANSAS CENTRAL, INC. 
   
Date: February 21, 2019March 2, 2020
By: /s/ Terry Bassham
 
 Terry Bassham 
 President and Chief Executive Officer 
Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
SignatureTitle Date
/s/ Terry BasshamDirector, President and Chief Executive Officer)February 21, 2019March 2, 2020
Terry Bassham(Principal Executive Officer))
  )
/s/ Anthony D. SommaExecutive Vice President and Chief Financial Officer)
Anthony D. Somma(Principal Financial Officer))
  )
/s/ Steven P. BusserVice President - Risk Management and Controller)
Steven P. Busser(Principal Accounting Officer))
  )
Mark A. Ruelle*Chairman of the Board of Directors)
  )
Mollie Hale Carter*Director)
  )
Charles Q. Chandler IV*Director)
  )
Gary D. Forsee*Director)
  )
Scott D. Grimes*Director)
  )
Richard L. Hawley*Director)
  )
Thomas D. Hyde*Director)
  )
B. Anthony Isaac*Director)
  )
Sandra A.J. Lawrence*Director)
  )
Ann D. Murtlow*Director)
  )
Sandra J. Price*Director)
  )
John J. Sherman*Director)
  )
S. Carl Soderstrom Jr.*Director)
)
John Arthur Stall*Director)
*By    /s/ Terry Bassham
Terry Bassham
Attorney-in-Fact*

176
Table of Contents






SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.                
 KANSAS CITY POWER & LIGHT COMPANYEVERGY METRO, INC. 
   
Date: February 21, 2019March 2, 2020
By: /s/ Terry Bassham
 
 Terry Bassham 
 President and Chief Executive Officer 
Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
SignatureTitle Date
/s/ Terry BasshamDirector, President and Chief Executive Officer)February 21, 2019March 2, 2020
Terry Bassham(Principal Executive Officer))
  )
/s/ Anthony D. SommaExecutive Vice President and Chief Financial Officer)
Anthony D. Somma(Principal Financial Officer))
  )
/s/ Steven P. BusserVice President - Risk Management and Controller)
Steven P. Busser(Principal Accounting Officer))
  )
Mark A. Ruelle*Chairman of the Board of Directors)
  )
Mollie Hale Carter*Director)
  )
Charles Q. Chandler IV*Director)
  )
Gary D. Forsee*Director)
  )
Scott D. Grimes*Director)
  )
Richard L. Hawley*Director)
  )
Thomas D. Hyde*Director)
  )
B. Anthony Isaac*Director)
  )
Sandra A.J. Lawrence*Director)
  )
Ann D. Murtlow*Director)
  )
Sandra J. Price*Director)
  )
John J. Sherman*Director)
  )
S. Carl Soderstrom Jr.*Director)
)
John Arthur Stall*Director)
*By    /s/ Terry Bassham
Terry Bassham
Attorney-in-Fact*




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