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

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

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

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

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

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


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


^(b)	~~Variable rate~~


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

Table of Contents


		September 30		December 31

Evergy Kansas Central		2023		2022
Non-hedging derivatives	Balance sheet location
Commodity contracts		(millions)
Power	Other assets - current	$	21.7	$	36.7
	Other assets - long-term	37.2		65.6
Natural gas	Other assets - current	11.1		221.0
	Other assets - long-term	1.6		1.6
Total derivative assets		$	71.6	$	324.9
Commodity contracts
Power	Other liabilities - current	$	16.1	$	35.6
	Other liabilities - long-term	34.2		61.5
Natural gas	Other liabilities - current	10.7		215.1
	Other liabilities - long-term	1.6		1.6
Total derivative liabilities		$	62.6	$	313.8

~~Great Plains Energy Senior Notes~~


		September 30		December 31

Evergy Metro		2023		2022
Non-hedging derivatives	Balance sheet location
Commodity contracts		(millions)
Power	Other assets - current	$	3.0	$	3.5



Total derivative assets		$	3.0	$	3.5
Commodity contracts
Power	Other liabilities - current	$	4.9	$	4.1



Total derivative liabilities		$	4.9	$	4.1

~~In March 2017, Great Plains Energy issued, at a discount,~~ The following tables presentthe ~~following series of unsecured senior notes in order to fund~~line items on the ~~majority of the cash portion of the acquisition of Westar under the Original Merger Agreement:~~

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

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

~~$1,400.0 million of 3.90% Notes, maturing in 2027;~~Evergy Companies' consolidated balance sheets where derivative assets and

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

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

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

~~KCP&L Senior Notes~~

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

~~KCP&L General Mortgage Bonds~~

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

~~12. PREFERRED STOCK~~

~~Series A Mandatory Convertible Preferred Stock~~

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

In July 2017, as a result of the Amended Merger Agreement, Great Plains Energy and OMERS terminated their stock purchase agreement for the Series A Preferred Stock. As a result of this termination, Great Plains Energy recorded $15 million of previously deferred offering fees to non-operating expensesgross amounts offset in the ~~third quarter~~tables below show the effect of ~~2017.~~master netting arrangements and include collateral posted to offset the net position.

~~Series B Mandatory Convertible Preferred Stock~~

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

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

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

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

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

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


September 30, 2023	Evergy		Evergy Kansas Central		Evergy Metro
Derivative Assets	(millions)
Current
Gross amounts recognized	$	40.4	$	32.8	$	3.0
Gross amounts offset	(21.4)		(17.6)		(3.0)
Net amounts presented in other assets - current	$	19.0	$	15.2	$	—
Long-Term
Gross amounts recognized	$	38.8	$	38.8	$	—
Gross amounts offset	(9.3)		(9.3)		—
Net amounts presented in other assets - long-term	$	29.5	$	29.5	$	—
Derivative Liabilities
Current
Gross amounts recognized	$	32.9	$	26.8	$	4.9
Gross amounts offset	(20.3)		(16.4)		(3.0)
Net amounts presented in other liabilities - current	$	12.6	$	10.4	$	1.9
Long-Term
Gross amounts recognized	$	35.8	$	35.8	$	—
Gross amounts offset	(4.2)		(4.2)		—
Net amounts presented in other liabilities - long-term	$	31.6	$	31.6	$	—

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As a result of the Amended Merger Agreement, Great Plains Energy determined in its reasonable judgment that the acquisition of Westar would not close and exercised its acquisition termination redemption option and redeemed the Series B Preferred Stock in August 2017. The Series B Preferred Stock was redeemed at a redemption price that was equal to a make-whole formula set forth in the terms of the Series B Preferred Stock. The total cost of the redemption was $963.4 million. Great Plains Energy made the entire redemption payment in cash.

The dividend make-whole provisions within both the acquisition termination redemption and fundamental change conversion options discussed above represented embedded derivatives that in accordance with GAAP, were accounted for on a combined basis separately from the Series B Preferred Stock and reported at fair value. The fair value of the Series B Preferred Stock dividend make-whole provisions at inception and December 31, 2016 was insignificant. As part of the $963.4 million redemption of the Series B Preferred Stock, the Series B Preferred Stock dividend make-whole provisions liability was settled in August 2017. For the three months ended and year to date September 30, 2017, Great Plains Energy recognized a loss of $67.7 million and $124.8 million, respectively, for the settlement of these provisions, which is recorded within loss on Series B Preferred Stock dividend make-whole provisions on the consolidated statements of comprehensive income (loss).

Great Plains Energy also recognized a redemption premium of $2.4 million in connection with the redemption of the Series B Preferred Stock for the three months ended and year to date September 30, 2017. This premium is represented as the difference between the redemption cost of $963.4 million and the $836.2 million carrying value of the Series B Preferred Stock, less the $124.8 million paid to settle the Series B Preferred Stock dividend make-whole provisions. The redemption premium is recorded as a reduction to earnings (loss) available for common shareholders and is recorded within preferred stock dividend requirements and redemption premium on the consolidated statements of comprehensive income (loss).

~~13. COMMITMENTS AND CONTINGENCIES~~

~~Environmental Matters~~

Great Plains Energy and KCP&L are subject to extensive federal, state and local environmental laws, regulations and permit requirements relating to air and water quality, waste management and disposal, natural resources and health and safety. In addition to imposing continuing compliance obligations and remediation costs, these laws, regulations and permits authorize the imposition of substantial penalties for noncompliance, including fines, injunctive relief and other sanctions. The cost of complying with current and future environmental requirements is expected to be material to Great Plains Energy and KCP&L. Failure to comply with environmental requirements or to timely recover environmental costs through rates could have a material effect on Great Plains Energy's and KCP&L's results of operations, financial position and cash flows.

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

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

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

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

~~Table of Contents~~

~~Clean Air Act and Climate Change Overview~~

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

~~Climate Change~~

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

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

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

~~Clean Water Act~~

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

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

~~Table of Contents~~

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

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

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

~~Solid Waste~~

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

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

~~Remediation~~

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

~~Table of Contents~~

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

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

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

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

~~14. LEGAL PROCEEDINGS~~

~~GMO Western Energy Crisis~~

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

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

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

~~15. RELATED PARTY TRANSACTIONS AND RELATIONSHIPS~~

KCP&L employees manage GMO's business and operate its facilities at cost, including GMO's 18% ownership interest in KCP&L's Iatan Nos. 1 and 2. The operating expenses and capital costs billed from KCP&L to GMO were $49.2 million and $145.0 million, respectively, for the three months ended and year to date September 30, 2017. These costs totaled $48.9 million and $143.8 million, respectively, for the three months ended and year to date September 30, 2016.

~~Table of Contents~~

KCP&L and GMO are also authorized to participate in the Great Plains Energy money pool, an internal financing arrangement in which funds may be lent on a short-term basis to KCP&L and GMO from Great Plains Energy and between KCP&L and GMO. At September 30, 2017, and December 31, 2016, KCP&L had no outstanding receivables or payables under the money pool.


December 31, 2022	Evergy		Evergy Kansas Central		Evergy Metro

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

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


		Three Months Ended September 30				Year to Date September 30

Location of gain (loss)	Contract type	2023		2022		2023		2022
Evergy		(millions)
Operating revenues	Commodity	$	2.7	$	38.4	$	20.3	$	65.6
Total		$	2.7	$	38.4	$	20.3	$	65.6
Evergy Kansas Central
Operating revenues	Commodity	$	2.7	$	38.4	$	20.3	$	65.6
Total		$	2.7	$	38.4	$	20.3	$	65.6

Credit risk of the Evergy Companies' derivative instruments relates to the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. The Evergy Companies maintain credit policies and employ credit risk mitigation, such as collateral requirements or letters of credit, when necessary to minimize their overall credit risk and monitor exposure. Substantially all of the Evergy Companies' counterparty credit risk associated with derivative instruments relates to Evergy Kansas Central's non-regulated energy marketing activities. As of September 30, 2023, if counterparty groups completely failed to perform on contracts, Evergy's and Evergy Kansas Central's maximum exposure related ~~party net receivables.~~to derivative assets was $39.7 million. As of September 30, 2023, the potential loss after the consideration of applicable master netting arrangements and collateral received for Evergy and Evergy Kansas Central was $32.6 million.

Certain of the Evergy Companies' derivative instruments contain collateral provisions that are tied to the Evergy Companies' credit ratings and may require the posting of collateral for various reasons, including if the Evergy Companies' credit ratings were to fall below investment grade. Substantially all of these derivative instruments relate to Evergy Kansas Central's non-regulated energy marketing activities. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position as of September 30, 2023, was $36.0 million for which Evergy and Evergy Kansas Central have posted collateral of $0.6 million in the normal course of business. If the credit-risk-related contingent features underlying these

Table of Contents

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

Net receivable from Great Plains Energy 27.0
2.6

agreements were triggered as of September 30, 2023, Evergy and Evergy Kansas Central could be required to post an additional $35.2 million of collateral to their counterparties.

~~16.~~10. FAIR VALUE MEASUREMENTS

~~GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.~~ 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 ~~which prioritizes~~levels. In addition, the ~~inputs to valuation techniques used to~~Evergy Companies measure certain investments that do not have a readily determinable fair value ~~into three broad categories, giving~~at net asset value (NAV), which are not included in the ~~highest priority to quoted~~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 ~~and lowest priority to unobservable inputs. A definition of the various levels, as well as discussion of the various measurements within the levels, is as follows:~~

included in Level 1 ~~– Unadjusted~~are highly liquid and actively traded instruments with quoted prices, ~~for identical assets~~such as equities listed on public exchanges or ~~liabilities in active markets that Great Plains Energy and KCP&L have access to at the measurement date.~~ exchange-traded derivative instruments.

Level 2 – ~~Market-based~~Pricing inputs ~~for assets or liabilities that~~ are ~~observable (either~~not quoted prices in active markets but are either directly or ~~indirectly) or inputs that~~indirectly observable. The types of assets and liabilities included in Level 2 are ~~not~~certain marketable debt securities, financial instruments traded in less than active markets, non-exchange traded derivative instruments with observable ~~but are corroborated by market data.~~ forward curves and options contracts.

Level 3 – ~~Unobservable~~Significant inputs ~~reflecting Great Plains Energy's~~to pricing have little or no transparency. The types of assets and ~~KCP&L's own assumptions about~~liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation. The types of assets and liabilities included in Level 3 are non-exchange traded derivative instruments for which observable market data is not available to corroborate the ~~assumptions market participants would use~~valuation inputs and transmission congestion rights (TCRs) in ~~pricing~~ the ~~asset or liability.~~ SPP Integrated Marketplace.

~~Great Plains Energy~~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, ~~KCP&L~~therefore, they are not included within the fair value hierarchy. The Evergy Companies include in this category investments in private equity, real estate and alternative investment funds that do not have a readily determinable fair value. The underlying alternative investments include collateralized debt obligations, mezzanine debt and a variety of other investments.

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

~~Interest Rate Derivatives~~

In June 2016, Great Plains Energy entered into four interest rate swaps, with a total notional amount of $4.4 billion, to hedge against interest rate fluctuations on future issuances of long-term debt expected to be issued to finance a portion of the cash consideration for the acquisition of Westar under the Original Merger Agreement. The interest rate swaps were designated as economic hedges (non-hedging derivatives). Settlement of the interest rate swaps was contingent on the consummation of the acquisition of Westar. In July 2017, the interest rate swap agreements were amended to make them contingent on the consummation of the anticipated merger with Westar under the Amended Merger Agreement by November 30, 2018.

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

~~Table of Contents~~

~~September 30, 2016, Great Plains Energy recognized losses of $1.8 million and $78.8 million, respectively, in interest charges for the change in fair value.~~

Fair Value of Long-Term Debt

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



	September 30, 2023				December 31, 2022
	Book Value		Fair Value		Book Value		Fair Value
Long-term debt(a)	(millions)
Evergy(b)	$	10,187.0	$	8,695.6	$	10,344.8	$	9,160.0
Evergy Kansas Central	4,282.4		3,551.1		3,936.9		3,389.4
Evergy Metro	2,925.2		2,567.4		2,926.6		2,661.7

(a) Includes current ~~maturities, were $3.7 billion and $3.9 billion, respectively. At December 31, 2016, the book~~maturities.

(b) Book value ~~and fair value~~as of ~~Great Plains Energy's long-term debt, including current maturities, were $3.8 billion and $4.0 billion, respectively. At~~ September 30, 2017, the book value and fair value of KCP&L's long-term debt, including current maturities, were $2.6 billion and $2.8 billion, respectively. At December 31, 2016, the book value and fair value of KCP&L's long-term debt, including current maturities, were $2.6 billion and $2.7 billion, respectively.

~~Supplemental Executive Retirement Plan~~

~~At September 30, 2017,~~2023 and December 31, ~~2016, GMO's Supplemental Executive Retirement Plan rabbi trusts included $15.0~~2022, includes $88.4 million and ~~$16.0~~$92.1 million, respectively, of ~~fixed income funds valued at net asset~~fair value ~~per share (or its equivalent) that~~adjustments recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger, which are not ~~categorized in~~part of future principal payments and will amortize over the ~~fair value hierarchy. The fixed income fund invests primarily in intermediate and long-term~~remaining life of the associated debt ~~securities, can be redeemed immediately and is not subject to any restrictions on redemptions.~~instrument.

Table of Contents

Recurring Fair Value Measurements

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


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

Description	September 30 2017			Level 1		Level 2			Level 3
KCP&L		(millions)

Nuclear decommissioning trust(a)												Nuclear decommissioning trust(a)
Domestic equity funds												Domestic equity funds		$	128.3	$	—	$	117.8		$	—		$	—		$	10.5
International equity funds												International equity funds		68.1		—		68.1			—			—			—
Core bond fund												Core bond fund		53.2		—		53.2			—			—			—
High-yield bond fund												High-yield bond fund		27.9		—		27.9			—			—			—
Emerging markets bond fund												Emerging markets bond fund		17.2		—		17.2			—			—			—

Alternative investments fund												Alternative investments fund		35.1		—		—			—			—			35.1
Real estate securities fund												Real estate securities fund		17.3		—		—			—			—			17.3
Cash equivalents												Cash equivalents		0.5		—		0.5			—			—			—

Total nuclear decommissioning trust												Total nuclear decommissioning trust		347.6		—		284.7			—			—			62.9
Rabbi trust												Rabbi trust
Fixed income funds												Fixed income funds		14.3		—		14.3			—			—			—
Equity funds												Equity funds		6.9		—		6.9			—			—			—
Combination debt/equity/other fund												Combination debt/equity/other fund		1.7		—		1.7			—			—			—
Cash equivalents												Cash equivalents		0.2		—		0.2			—			—			—
Total rabbi trust												Total rabbi trust		23.1		—		23.1			—			—			—
Derivative instruments - commodity contracts(b)												Derivative instruments - commodity contracts(b)
Power												Power		42.7		(16.2)		17.8			33.2			7.9			—
Natural gas												Natural gas		2.0		(10.7)		12.5			0.2			—			—
Total derivative assets												Total derivative assets		44.7		(26.9)		30.3			33.4			7.9			—
Total assets												Total assets		415.4		(26.9)		338.1			33.4			7.9			62.9
Liabilities												Liabilities
Derivative instruments - commodity contracts(b)												Derivative instruments - commodity contracts(b)
Power												Power		40.4		(9.9)		9.4			36.6			4.3			—
Natural gas												Natural gas		1.6		(10.7)		12.3			—			—			—
Total derivative liabilities												Total derivative liabilities		42.0		(20.6)		21.7			36.6			4.3			—
Total liabilities												Total liabilities		$	42.0	$	(20.6)	$	21.7		$	36.6		$	4.3		$	—
Evergy Metro												Evergy Metro
Assets												Assets
Nuclear decommissioning trust ^(a)												Nuclear decommissioning trust(a)
Equity securities		$	174.2	$	174.2		$	—		$	—	Equity securities		$	271.8	$	—	$	271.8		$	—		$	—		$	—
Debt securities												Debt securities
U.S. Treasury		33.6		33.6			—			—		U.S. Treasury		44.8		—		44.8			—			—			—
U.S. Agency		0.4		—			0.4			—

State and local obligations		2.5		—			2.5			—		State and local obligations		3.6		—		—			3.6			—			—
Corporate bonds		33.2		—			33.2			—		Corporate bonds		40.6		—		—			40.6			—			—
Foreign governments		0.1		—			0.1			—		Foreign governments		0.1		—		—			0.1			—			—
Cash equivalents		2.9		2.9			—			—		Cash equivalents		2.7		—		2.7			—			—			—
Other		0.6		0.6			—			—

Total nuclear decommissioning trust		247.5		211.3			36.2			—		Total nuclear decommissioning trust		363.6		—		319.3			44.3			—			—
Self-insured health plan trust ^(b)
Self-insured health plan trust(c)												Self-insured health plan trust(c)
Equity securities		0.4		0.4			—			—		Equity securities		1.7		—		1.7			—			—			—
Debt securities		2.8		0.4			2.4			—		Debt securities		8.3		—		2.1			6.2			—			—
Cash and cash equivalents		8.1		8.1			—			—		Cash and cash equivalents		3.9		—		3.9			—			—			—
Total self-insured health plan trust		11.3		8.9			2.4			—		Total self-insured health plan trust		13.9		—		7.7			6.2			—			—
Total		$	258.8	$	220.2		$	38.6		$	—
Other Great Plains Energy
Assets
Interest rate derivative instruments ^(c)		$	77.4	$	—		$	—		$	77.4
Total		$	77.4	$	—		$	—		$	77.4
Great Plains Energy
Assets
Nuclear decommissioning trust ^(a)		$	247.5	$	211.3		$	36.2		$	—
Self-insured health plan trust ^(b)		11.3		8.9			2.4			—
Interest rate derivative instruments ^(c)		77.4		—			—			77.4
Total		$	336.2	$	220.2		$	38.6		$	77.4
Derivative instruments - commodity contracts(b)												Derivative instruments - commodity contracts(b)
Power												Power		—		(3.0)		—			—			3.0			—

Total derivative assets												Total derivative assets		—		(3.0)		—			—			3.0			—
Total assets												Total assets		377.5		(3.0)		327.0			50.5			3.0			—
Liabilities												Liabilities
Derivative instruments - commodity contracts(b)												Derivative instruments - commodity contracts(b)
Power												Power		1.9		(3.0)		—			—			4.9			—

Total derivative liabilities												Total derivative liabilities		1.9		(3.0)		—			—			4.9			—
Total liabilities												Total liabilities		$	1.9	$	(3.0)	$	—		$	—		$	4.9		$	—

Description December 31
2016 Level 1 Level 2 Level 3
KCP&L (millions)
Assets
Nuclear decommissioning trust ^(a)

Equity securities $ 153.9
$ 153.9
$ —
$ —

Debt securities

U.S. Treasury 27.8
27.8
—
—

U.S. Agency 1.7
—
1.7
—

State and local obligations 3.2
—
3.2
—

Corporate bonds 32.4
—
32.4
—

Foreign governments 0.1
—
0.1
—

Cash equivalents 3.8
3.8
—
—

Total nuclear decommissioning trust 222.9
185.5
37.4
—

Self-insured health plan trust ^(b)

Equity securities 0.9
0.9
—
—

Debt securities 4.8
0.1
4.7
—

Cash and cash equivalents 5.6
5.6
—
—

Total self-insured health plan trust 11.3
6.6
4.7
—

Total $ 234.2
$ 192.1
$ 42.1
$ —

Other Great Plains Energy

Assets

Interest rate derivative instruments ^(c)
$ 79.3
$ —
$ —
$ 79.3

Total $ 79.3
$ —
$ —

$ 79.3

Great Plains Energy

Assets

Nuclear decommissioning trust ^(a)
$ 222.9
$ 185.5
$ 37.4
$ —

Self-insured health plan trust ^(b)
11.3
6.6
4.7
—

Interest rate derivative instruments ^(c)
79.3
—
—
79.3

Total $ 313.5
$ 192.1
$ 42.1
$ 79.3


^(a)	~~Fair value is based on quoted market prices of the investments held by the fund 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)

At September 30, 2017, the fair value of interest rate derivative instruments is based on the settlement value of $140.6 million discounted by a contingency factor of 0.45 that management believes is representative of what a market participant would use in valuing these instruments in order to account for the contingent nature of the cash settlement of these instruments. At December 31, 2016, the fair value of interest rate derivative instruments is determined by calculating the net present value of expected payments and receipts under the interest rate swaps using observable market inputs including interest rates and London Interbank Offered Rate (LIBOR) swap rates discounted by a contingency factor of 0.35. A decrease in the contingency factor would result in a higher fair value measurement. The contingency factor will increase in response to facts and circumstances that in the view of a market participant, would increase the likelihood that the merger with Westar is not consummated. Because of the unobservable nature of the contingency factor, the interest rate derivatives have been classified as Level 3.

Table of Contents

~~The following tables reconcile the beginning and ending balances for all Level 3 assets and liabilities measured at fair value on a recurring basis.~~


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

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

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

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

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

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

Great Plains Energy
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Derivative Instruments
2017 2016
(millions)
Net asset at January 1 $ 79.3
$ —
Total realized/unrealized losses:

included in interest charges (1.9 ) (78.8 )
included in loss on Series B Preferred Stock dividend make-whole provisions (124.8 ) —
Settlements 124.8
—
Net asset (liability) at September 30 $ 77.4
$ (78.8 )
Total unrealized losses relating to assets and liabilities still on the consolidated balance sheet at September 30:
included in interest charges $ (1.9 ) $ (78.8 )

Table of Contents


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



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

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

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

~~17. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)~~(a)With the exception of investments measured at NAV, fair value is based on quoted market prices of the investments held by the trust and/or valuation models.

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

(c)Fair value is based on quoted market prices of ~~each component~~the investments held by the trust. Debt securities classified as Level 1 are comprised of ~~accumulated~~U.S. Treasury securities. Debt securities classified as Level 2 are comprised of corporate bonds, U.S. Agency, state and local obligations, and other ~~comprehensive loss for Great Plains Energy and KCP&L.~~asset-backed securities.

Great Plains Energy

Gains and Losses on Cash Flow Hedges^(a)

Defined Benefit Pension Items^(a)

Total^(a)

(millions)
Year to Date September 30, 2017
Beginning balance January 1 $ (4.5 ) $ (2.1 ) $ (6.6 )
Amounts reclassified from accumulated other comprehensive loss 4.1
0.3
4.4

Net current period other comprehensive income 4.1
0.3
4.4

Ending balance September 30 $ (0.4 ) $ (1.8 ) $ (2.2 )
Year to Date September 30, 2016
Beginning balance January 1 $ (10.1 ) $ (1.9 ) $ (12.0 )
Amounts reclassified from accumulated other comprehensive loss 4.1
0.4
4.5

Net current period other comprehensive income 4.1
0.4
4.5

Ending balance September 30 $ (6.0 ) $ (1.5 ) $ (7.5 )

^(a) ~~Net of tax~~

KCP&L

Gains and Losses on Cash Flow Hedges^(a)
(millions)
Year to Date September 30, 2017
Beginning balance January 1 $ (4.2 )
Amounts reclassified from accumulated other comprehensive loss 3.8

Net current period other comprehensive income 3.8

Ending balance September 30 $ (0.4 )
Year to Date September 30, 2016
Beginning balance January 1 $ (9.6 )
Amounts reclassified from accumulated other comprehensive loss 4.0

Net current period other comprehensive income 4.0

Ending balance September 30 $ (5.6 )

^(a) ~~Net of tax~~

Table of Contents

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


	September 30, 2023				December 31, 2022				September 30, 2023
	Fair		Unfunded		Fair		Unfunded		Redemption	Length of
	Value		Commitments		Value		Commitments		Frequency	Settlement
Evergy Kansas Central	(millions)
Nuclear decommissioning trust:
Domestic equity funds	$	10.5	$	1.5	$	12.1	$	1.5	(a)	(a)
Alternative investments fund(b)	35.1		—		31.8		—		Quarterly	65 days
Real estate securities fund(b)	17.3		—		18.9		—		Quarterly	65 days








Total Evergy investments at NAV	$	62.9	$	1.5	$	62.8	$	1.5

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

(b)There is a holdback on final redemptions.

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

The following ~~tables reflect~~table summarizes the ~~effect on certain line items of~~ net ~~income from amounts reclassified out of each component of accumulated other comprehensive loss~~unrealized gains (losses) for ~~Great Plains Energy~~the Evergy Companies' nuclear decommissioning trusts and ~~KCP&L.~~rabbi trusts.


	Three Months Ended September 30				Year to Date September 30
	2023		2022		2023		2022
Evergy	(millions)
Nuclear decommissioning trust - equity securities	$	(8.3)	$	(74.3)	$	46.4	$	(145.9)
Nuclear decommissioning trust - debt securities	(3.4)		(5.9)		(2.6)		(16.0)
Rabbi trusts - equity securities	(1.1)		(2.1)		0.6		(7.8)
Total	$	(12.8)	$	(82.3)	$	44.4	$	(169.7)
Evergy Kansas Central
Nuclear decommissioning trust - equity securities	$	1.4	$	(37.1)	$	23.4	$	(67.2)
Rabbi trust - equity securities	(0.7)		(1.4)		0.8		(5.6)
Total	$	0.7	$	(38.5)	$	24.2	$	(72.8)
Evergy Metro
Nuclear decommissioning trust - equity securities	$	(9.7)	$	(37.2)	$	23.0	$	(78.7)
Nuclear decommissioning trust - debt securities	(3.4)		(5.9)		(2.6)		(16.0)
Total	$	(13.1)	$	(43.1)	$	20.4	$	(94.7)

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

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

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

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

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

There are a variety of final and proposed laws and regulations that could have a material adverse effect on the Evergy Companies' 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.

Clean Air Act - Startup, Shutdown and Malfunction (SSM) Regulation

In 2015, the Environmental Protection Agency (EPA) issued a final rule addressing how state implementation plans (SIPs) can treat excess emissions during SSM events. This rule was referred to as the 2015 SIP Call Rule. The rule required 36 states to submit SIP revisions by November 2016 to remove certain exemptions and other discretionary enforcement provisions that apply to excess emissions during SSM events. Legal challenges ensued and the case was eventually placed in abeyance. In December 2021, the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit) restarted the litigation and oral arguments were held in March 2022. An additional case was also taking place in the U.S. District Court for the Northern District of California (District Court of Northern California) and in June 2022, the District Court of Northern California entered a final consent decree establishing deadlines for the EPA to take final action on SIP revisions that were submitted in response to the 2015 SIP Call Rule. Deadlines for 26 states and air districts, including Kansas, Missouri and Oklahoma, are listed in the final consent decree. Final action from the EPA could result in required SIP revisions in Oklahoma, Kansas and Missouri which could have a material impact on the Evergy Companies. If the D.C. Circuit overturns the EPA's 2015 SIP Call Rule, the final consent decree's deadlines will no longer be valid.

Mercury and Air Toxics Standards (MATS)

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

Ozone Interstate Transport State Implementation Plans (ITSIP)

In 2015, the EPA lowered the Ozone National Ambient Air Quality Standards (NAAQS) from 75 ppb to 70 ppb. Impacted states were required to submit ITSIPs in 2018 to comply with the "Good Neighbor Provision" of the Clean Air Act (CAA). The EPA did not act on these ITSIP submissions by the deadline established in the CAA and entered consent decrees establishing deadlines to take final action on various ITSIPs. In February 2022, the EPA published a proposed rule to disapprove the ITSIPs submitted by nineteen states including Missouri and Oklahoma. In April 2022, the EPA published a final approval of the Kansas ITSIP in the Federal Register. The Missouri Department of Natural Resources (MDNR) submitted a supplemental ITSIP to the EPA on November 1, 2022, but the EPA has not taken action or proposed action on that supplemental ITSIP. In February 2023, the EPA published a final rule disapproving the ITSIPs submitted by 19 states, including the final disapproval of the Missouri and Oklahoma ITSIPs. In April 2023, the Attorneys General of Missouri and Oklahoma filed Petitions for Review in the U.S. Courts of Appeals for the Eighth and Tenth Circuits, respectively, challenging the EPA's disapproval. In

KCP&L
Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Income Statement
Three Months Ended September 30 2017 2016
(millions)
Gains and (losses) on cash flow hedges (effective portion)
Interest rate contracts $ (1.9 ) $ (2.2 ) Interest charges
(1.9 ) (2.2 ) Income before income tax expense
0.7
1.0
Income tax benefit
Total reclassifications, net of tax $ (1.2 ) $ (1.2 ) Net income

KCP&L
Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Income Statement
Year to Date September 30 2017 2016
(millions)
Gains and (losses) on cash flow hedges (effective portion)
Interest rate contracts $ (6.3 ) $ (6.6 ) Interest charges
(6.3 ) (6.6 ) Income before income tax expense
2.5
2.6
Income tax benefit
Total reclassifications, net of tax $ (3.8 ) $ (4.0 ) Net income

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May 2023, the Eighth Circuit granted a stay of the EPA's disapproval of the Missouri ITSIP. Similarly, in July 2023, the Tenth Circuit granted a stay of the EPA's disapproval of the Oklahoma ITSIP.

~~18.~~Ozone Interstate Transport Federal Implementation Plans (ITFIP)

In April 2022, the EPA published in the Federal Register the proposed ITFIP to resolve outstanding "Good Neighbor" obligations with respect to the 2015 Ozone NAAQS for 26 states including Missouri and Oklahoma. This ITFIP would establish a revised Cross-State Air Pollution Rule (CSAPR) ozone season nitrogen oxide (NOx) emissions trading program for electric generating units (EGUs) beginning in 2023 and would limit ozone season NOx emissions from certain industrial stationary sources beginning in 2026. The proposed rule would also establish a new daily backstop NOx emissions rate limit for applicable coal-fired units larger than 100 MW, as well as unit-specific NOx emission rate limits for certain industrial emission units and would feature "dynamic" adjustments of emission budgets for EGUs beginning with ozone season 2025. The proposed ITFIP includes reductions to the state ozone season NOx budgets for Missouri and Oklahoma beginning in 2023 with additional reductions in future years. The Evergy Companies provided formal comments as part of the rulemaking process. In March 2023, the EPA issued the final ITFIPs for twenty-three states, including Missouri and Oklahoma. As a result of the judicial stays of the EPA's disapproval of the Missouri and Oklahoma ITSIPs, the EPA issued interim final rules staying the effectiveness of the ITFIP in both Missouri and Oklahoma while the stays issued by the Eighth and Tenth Circuits in the ITSIP disapproval cases remain in place. During this time, both states will continue to operate under the existing CSAPR program. While Kansas was not included in the ITFIP, the EPA notes within the preamble to the ITFIP its updated 2023 modeling analysis suggesting that Kansas may be significantly contributing to one or more nonattainment or maintenance receptors. The EPA further notes that it intends to address this in a subsequent action. Due to these uncertainties, the impact on the Evergy Companies' operations and the cost to comply could be material.

Particulate Matter and Ozone National Ambient Air Quality Standards

In January 2023, the EPA proposed strengthening the primary annual PM2.5 (particulate matter less than 2.5 microns in diameter) NAAQS. The EPA is proposing to lower the primary annual PM2.5 NAAQS from 12.0 µg/m3 (micrograms per cubic meter) to a level that would be between 9.0 and 10.0 µg/m3. The EPA is also in the process of reconsidering its decision to retain each of the other Ozone NAAQS at the level set in 2015. Due to uncertainty regarding the potential lowering of the ozone and PM2.5 NAAQS, the Evergy Companies are unable to accurately assess the impacts of these potential EPA actions on their operations or consolidated financial results, but the cost to comply with lower future ozone or PM2.5 NAAQS could be material.

Regional Haze Rule

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

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the state to help determine if further emission reductions are necessary. The EPA also stated it would be difficult to approve the Kansas SIP revision if at least two four-factor analyses are not conducted on Kansas emission sources. KDHE submitted the Kansas SIP revision in July 2021. If a Kansas generating unit of the Evergy Companies is selected for analysis, the possibility exists that the state or the EPA, through a revised SIP or a FIP, could determine that additional operational or physical modifications are required on the generating unit to further reduce emissions. The overall cost of those modifications could be material to the Evergy Companies. In June 2023, certain parties filed suit against the EPA for failing to take final action to approve or disapprove the Regional Haze SIP Revisions submitted by Kansas and seven other states for the second planning period.

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 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 May 2023, the EPA proposed GHG regulations that would apply to fossil fuel fired EGUs. The proposal would set CO2 limitations for new gas-fired combustion turbines, existing coal, oil and gas-fired steam generating units, and certain existing gas-fired combustion turbines. The proposed CO2 limitations assume technologies such as carbon capture and sequestration/storage (CCS), hydrogen co-firing, and natural gas co-firing will be utilized.

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

Water

The Evergy Companies discharge some of the water used in generation and other operations containing substances deemed to be pollutants. A November 2015 EPA rule applicable to steam-electric power generating plants establishes effluent limitations guidelines (ELG) and standards for wastewater discharges, including limits on the amount of toxic metals and other pollutants that can be discharged. Implementation timelines for this 2015 rule vary from 2018 to 2023. In April 2019, the U.S. Court of Appeals for the Fifth Circuit issued a ruling that vacated and remanded portions of the original ELG rule. Due to this ruling, the EPA announced a plan in July 2021 to issue a proposed rule in the fall of 2022 to address the vacated limitations for legacy wastewater and landfill leachate. In March 2023, the EPA published a proposed update to the ELG to address the vacated limitations and prior reviews of the existing rule by the current administration. Flue Gas Desulfurization (FGD) wastewater, bottom ash transport wastewater, coal residual leachate, and legacy wastewater are addressed in the proposal. The Evergy Companies have reviewed the proposed modifications to limitations on FGD wastewater and bottom ash transport water and if the regulation is finalized as proposed, the Evergy Companies do not believe the impact to be material. Modifications for best available technology economically available for the discharge of coal residual leachate could be material if the rulemaking is finalized as proposed.

In August 2021, based on an order issued by the U.S. District Court for the District of Arizona, which vacated and remanded the EPA's 2020 Navigable Waters Protection Rule (NWPR), the EPA and the U.S. Army Corps of Engineers (Corps) announced that they had halted implementation of the NWPR nationwide, and were interpreting "Waters of the United States" consistent with the regulatory regime that was in place prior to 2015. In December 2021, the EPA and the Department of the Army published a proposed rule that would formally repeal the NWPR and revise the definition of "Waters of the United States." In December 2022, the EPA and the Department of the Army issued a final rule establishing a definition for "Waters of the United States." The final rule was published in the Federal Register in January 2023 and took effect in March 2023. In May 2023, the United States Supreme Court (Supreme Court) issued a decision that interpreted the meaning of "Waters of the United States" under the Clean Water Act. The Supreme Court's decision impacted the January 2023 rulemaking and required the EPA and the Corps to issue a new direct final rule to conform aspects of the regulatory text to the Supreme Court ruling. This direct final rule was published and took effect in September 2023. The Evergy Companies are reviewing the Supreme Court's decision and the EPA's and the Corps' final rule. The impact on the Evergy Companies' operations or consolidated financial results are not expected to be material.

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Regulation of Coal Combustion Residuals

In the course of operating their coal generation plants, the Evergy Companies produce coal combustion residuals (CCRs), including fly ash, gypsum and bottom ash. The EPA published a rule to regulate CCRs in April 2015 that requires additional CCR handling, processing and storage equipment and closure of certain ash disposal units. In January 2022, the EPA published proposed determinations for facilities that filed closure extensions for unlined or clay-lined CCR units. These proposed determinations include various interpretations of the CCR regulations and compliance expectations that may impact all owners of CCR units. These interpretations could require modified compliance plans such as different methods of CCR unit closure. Additionally, more stringent remediation requirements for units that are in corrective action or forced to go into corrective action are possible. In April 2022, the Utility Solid Waste Activities Group (USWAG) and other interested parties filed similar petitions in the D.C. Circuit challenging the EPA's legal positions regarding the CCR rule determinations proposed in January 2022. The cost to comply with these proposed determinations by the EPA could be material.

In May 2023, the EPA published a proposed expansion to the CCR regulation focused on legacy surface impoundments. This regulation expands applicability of the 2015 CCR regulation to two newly defined types of CCR disposal units. If finalized, the Evergy Companies anticipate having additional CCR units requiring evaluation and potential remediation. The cost to comply with these proposed regulations by the EPA could be material.

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

12. RELATED PARTY TRANSACTIONS AND RELATIONSHIPS

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

Jointly-Owned Plants and Shared Services

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

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


	Three Months Ended September 30				Year to Date September 30
	2023		2022		2023		2022
	(millions)
Evergy Kansas Central billings to Evergy Missouri West	$	8.0	$	8.4	$	24.1	$	23.0
Evergy Metro billings to Evergy Missouri West	29.7		35.7		86.9		100.7
Evergy Kansas Central billings to Evergy Metro	10.8		10.6		33.7		24.1
Evergy Metro billings to Evergy Kansas Central	32.6		39.2		93.2		103.9

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Money Pool

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

As of September 30, 2023, Evergy Metro had no outstanding receivables or payables under the money pool. As of December 31, 2022, Evergy Metro had a $31.0 million outstanding receivable from Evergy Missouri West under the money pool. As of September 30, 2023 and December 31, 2022, Evergy Kansas Central had no outstanding receivables or payables under the money pool.

Related Party Net Receivables and Payables

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



	September 30		December 31
	2023		2022
Evergy Kansas Central	(millions)
Net payable to Evergy	$	(12.9)	$	(12.7)
Net payable to Evergy Metro	(15.9)		(15.7)
Net receivable from Evergy Missouri West	9.3		7.4

Evergy Metro
Net receivable from Evergy	$	17.4	$	16.3
Net receivable from Evergy Kansas Central	15.9		15.7
Net receivable from Evergy Missouri West	89.4		137.5

Tax Allocation Agreement

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



	September 30		December 31
	2023		2022
Evergy Kansas Central	(millions)
Income taxes receivable from (payable to) Evergy	$	20.2	$	(10.3)

Evergy Metro
Income taxes receivable from (payable to) Evergy	$	(7.3)	$	0.2

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13. TAXES

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

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

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


Evergy													Evergy
														Three Months Ended September 30				Year to Date September 30
														2023		2022		2023		2022
	Three Months Ended September 30						Year to Date September 30
KCP&L	2017			2016			2017			2016
Current income taxes	(millions)												Current income taxes	(millions)
Federal	$	41.8		$	35.4		$	56.2		$	36.6		Federal	$	(17.3)	$	(4.2)	$	(6.7)	$	20.8
State	7.6			6.4			10.2			6.7			State	8.2		6.0		20.1		7.7
Total	49.4			41.8			66.4			43.3			Total	(9.1)		1.8		13.4		28.5
Deferred income taxes													Deferred income taxes
Federal	10.3			22.5			27.2			61.5			Federal	25.7		50.9		38.9		55.4
State	2.8			4.5			6.2			12.5			State	(5.9)		(1.6)		(14.8)		1.4
Total	13.1			27.0			33.4			74.0			Total	19.8		49.3		24.1		56.8
Investment tax credit amortization	(0.3		)	(0.3		)	(0.8		)	(0.8		)

Investment tax credit													Investment tax credit
Deferral													Deferral	2.8		—		2.8		2.7
Amortization													Amortization	(4.7)		(1.6)		(8.3)		(4.9)
Total													Total	(1.9)		(1.6)		(5.5)		(2.2)
Income tax expense	$	62.2		$	68.5		$	99.0		$	116.5		Income tax expense	$	8.8	$	49.5	$	32.0	$	83.1


Evergy Kansas Central
	Three Months Ended September 30				Year to Date September 30
	2023		2022		2023		2022
Current income taxes	(millions)
Federal	$	(7.0)	$	22.3	$	14.5	$	59.1
State	3.0		3.2		7.9		2.3
Total	(4.0)		25.5		22.4		61.4
Deferred income taxes
Federal	(1.1)		(8.3)		(11.8)		(38.7)
State	(1.8)		(0.6)		(4.1)		1.2
Total	(2.9)		(8.9)		(15.9)		(37.5)




Investment tax credit
Deferral	2.9		—		2.9		2.7
Amortization	(3.9)		(1.1)		(5.8)		(3.1)
Total	(1.0)		(1.1)		(2.9)		(0.4)
Income tax expense (benefit)	$	(7.9)	$	15.5	$	3.6	$	23.5

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Evergy Metro
	Three Months Ended September 30				Year to Date September 30
	2023		2022		2023		2022
Current income taxes	(millions)
Federal	$	0.1	$	(22.5)	$	(1.7)	$	(20.0)
State	3.7		2.1		8.9		3.2
Total	3.8		(20.4)		7.2		(16.8)
Deferred income taxes
Federal	23.0		54.3		43.5		73.9
State	(2.2)		(0.1)		(5.8)		(0.1)
Total	20.8		54.2		37.7		73.8






Investment tax credit amortization	(0.9)		(0.6)		(2.6)		(1.8)

Income tax expense	$	23.7	$	33.2	$	42.3	$	55.2

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.

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


Evergy
	Three Months Ended September 30				Year to Date September 30
	2023		2022		2023		2022
Federal statutory income tax	21.0	%	21.0	%	21.0	%	21.0	%
COLI policies	(1.8)		(1.3)		(1.6)		(1.0)
State income taxes	(0.5)		0.7		(0.2)		0.7
Flow through depreciation for plant-related differences	(9.9)		(5.6)		(8.7)		(5.8)
Federal tax credits	(6.7)		(3.7)		(5.9)		(3.8)
Non-controlling interest	(0.4)		(0.3)		(0.3)		(0.3)
AFUDC equity	0.2		(0.5)		(0.2)		(0.5)
Amortization of federal investment tax credits	(0.8)		(0.2)		(0.7)		(0.2)


Valuation allowance	1.0		—		0.6		—
Stock compensation	—		—		—		(0.2)
Officer compensation limitation	0.3		0.2		0.3		0.2
Other	—		—		0.2		(0.2)
Effective income tax rate	2.4	%	10.3	%	4.5	%	9.9	%

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

The increase in Great Plains Energy's effective income tax rate for the three months ended and year to date September 30, 2017, compared to the same periods in 2016, is primarily driven by significant transaction-related costs incurred in connection with the anticipated merger with Westar and the previous plan to acquire Westar that are not deductible for tax purposes.

~~19. SEGMENTS AND RELATED INFORMATION~~

Great Plains Energy has one reportable segment based on its method of internal reporting, which segregates reportable segments based on products and services, management responsibility and regulation. The one reportable business segment is electric utility, consisting of KCP&L, GMO's regulated utility operations and GMO Receivables Company. Other includes GMO activity other than its regulated utility operations, GPETHC and unallocated corporate charges including certain costs to achieve the anticipated merger with Westar. The summary of significant accounting policies applies to the reportable segment. Segment performance is evaluated based on net income (loss).

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Evergy Kansas Central
	Three Months Ended September 30				Year to Date September 30
	2023		2022		2023		2022
Federal statutory income tax	21.0	%	21.0	%	21.0	%	21.0	%
COLI policies	(4.3)		(2.7)		(3.1)		(2.0)
State income taxes	(2.3)		0.7		(0.5)		0.4
Flow through depreciation for plant-related differences	(6.2)		(3.6)		(4.5)		(3.9)
Federal tax credits	(16.3)		(7.7)		(11.7)		(8.0)
Non-controlling interest	(0.9)		(0.6)		(0.7)		(0.6)
AFUDC equity	0.3		(0.7)		(0.2)		(0.7)
Amortization of federal investment tax credits	(0.8)		0.1		(0.6)		0.1


Valuation allowance	2.8		—		1.1		—
Stock compensation	—		—		—		(0.2)

Other	0.4		0.1		0.3		(0.3)
Effective income tax rate	(6.3)	%	6.6	%	1.1	%	5.8	%

~~The following tables reflect summarized financial information concerning Great Plains Energy's reportable segment.~~


Evergy Metro
	Three Months Ended September 30				Year to Date September 30
	2023		2022		2023		2022
Federal statutory income tax	21.0	%	21.0	%	21.0	%	21.0	%
COLI policies	(0.1)		(0.1)		(0.1)		(0.1)
State income taxes	0.6		0.7		0.7		0.6
Flow through depreciation for plant-related differences	(8.7)		(6.3)		(8.5)		(6.5)
Federal tax credits	(0.3)		(0.1)		(0.2)		(0.1)
AFUDC equity	0.2		(0.4)		(0.3)		(0.4)
Amortization of federal investment tax credits	(0.9)		(0.5)		(0.9)		(0.6)



Stock compensation	—		—		0.2		(0.2)
Officer compensation limitation	0.5		0.4		0.5		0.5
Other	(0.1)		—		(0.1)		(0.1)
Effective income tax rate	12.2	%	14.7	%	12.3	%	14.1	%

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

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

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

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

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

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

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

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

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

Capital expenditures ^(a)
392.5
—
—
392.5

December 31, 2016

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

Capital expenditures ^(a)
609.4
—
—
609.4

^(a)~~Capital expenditures reflect year to date amounts for the periods presented.~~

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

When Great Plains Energy and KCP&L retire utility plant, the original cost, net of salvage, 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

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recognized as a separate asset as 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 in regulatory assets on the consolidated balance sheets.

Great Plains Energy and KCP&L must also assess the probability of full recovery of the remaining net book value of the abandonment. The net book value that may be retained as an asset on the balance sheet for the abandonment is dependent upon amounts that may be recovered through regulated rates, including any return. An impairment charge, if any, would equal the difference between the remaining net book value of the asset and the present value of the future revenues expected from the asset.

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

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

The following combined Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the consolidated financial statements and accompanying notes in this combined Quarterly Report on Form 10-Q and the Evergy Companies' combined 2022 Form 10-K. None of the registrants make any representation as to information related solely to Evergy, Evergy Kansas Central or Evergy Metro other than itself.

~~GREAT PLAINS ENERGY INCORPORATED~~

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EVERGY, INC.

EXECUTIVE SUMMARY

~~Description of Business~~

~~Great Plains Energy~~Evergy is a public utility holding company incorporated in 2017 and ~~does not own or operate any~~headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below.

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

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

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

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

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

Evergy Kansas Central, Evergy Kansas South, Evergy Metro and ~~cash equivalents.~~

~~Great Plains Energy's sole reportable~~Evergy Missouri West conduct business ~~segment is electric utility. Electric utility consists of KCP&L, a regulated utility, GMO's regulated utility operations and GMO Receivables Company. Electric utility has~~ in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately ~~6,500~~15,600 MWs of owned generating capacity and ~~engages~~renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately ~~864,400~~1.7 million customers in the states of ~~Missouri~~Kansas and ~~Kansas. Electric utility's~~Missouri. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).

Evergy Kansas Central and Evergy Metro 2023 Rate Case Proceeding

In April 2023, Evergy Kansas Central and Evergy Metro filed an application with the KCC to request an increase to their retail ~~electricity rates are comparable to~~revenues. In September 2023, Evergy Kansas Central, Evergy Metro, the ~~national average of investor-owned utilities.~~

~~Great Plains Energy's corporate~~KCC staff and other ~~activities not included~~intervenors reached a unanimous settlement agreement to settle all outstanding issues in the ~~sole reportable business segment includes GMO activity other than its regulated utility operations, GPETHC and unallocated corporate charges including certain costs to achieve~~case. The unanimous settlement agreement must still be approved by the ~~anticipated merger with Westar.~~

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

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

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

In the third quarter of 2017, as a result of the Amended Merger Agreement, Great Plains Energy redeemed its $4.3 billion of unsecured senior notes issued in March 2017 and its Series B Preferred Stock issued in October 2016.

KCC. See Note 24 to the consolidated financial statements for ~~more information regarding the anticipated merger and redemption of acquisition financing.~~additional information.

~~Expected Plant Retirements~~Renewable Generation Investment

In ~~June 2017, Great Plains Energy and KCP&L announced plans~~May 2023, Evergy Kansas Central closed on the purchase of Persimmon Creek, owner of an operational wind farm located in the state of Oklahoma with a generating capacity of approximately 199 MW, for $220.9 million, including costs incidental to ~~retire KCP&L's Montrose Station and GMO's Sibley Station by December 31, 2018 and GMO's Lake Road Unit 4/6 by December 31, 2019. The decision to retire these generating units was primarily driven by~~ the ~~age~~purchase of the ~~plants, expected environmental compliance costs and expected future generation capacity needs.~~plant. Evergy Kansas Central included the purchase of Persimmon Creek in its rate case application to the KCC which was filed in April 2023. The addition of Persimmon Creek is consistent with the preferred plan identified through Evergy Kansas Central’s integrated resource plan filed with the KCC in June 2023, which identified it as part of the lowest-cost resource plan to serve customers. In September 2023, Evergy Kansas Central reached a unanimous settlement agreement that included the purchase of Persimmon Creek in its rates through a levelized revenue requirement approach at a fixed annual rate of $18.6 million for the first 20 years, after which the levelized revenue requirement will be reevaluated. See Note 201 and Note 4 to the consolidated financial statements for ~~more~~additional information ~~regarding the retirement~~on Evergy Kansas Central's purchase of ~~Sibley No. 3 Unit.~~

~~Earnings Overview~~

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

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Natural Gas Plant Investment

~~Stock;~~In November 2023, Evergy Missouri West entered into an agreement to buy a ~~loss on~~joint ownership interest representing approximately 143 MW in an operational natural gas combined cycle facility located in Missouri for approximately $60 million. The purchase is subject to regulatory approvals and closing conditions, including the ~~settlement~~granting by the MPSC of a CCN with reasonably acceptable terms. Evergy Missouri West is expected to request a CCN from the MPSC in November 2023 with a decision expected in the second quarter of 2024. Closing of the ~~Series B Preferred Stock dividend make-whole provisions; a loss on extinguishment~~transaction is also expected in the second quarter of debt related to the redemption of Great Plains Energy's $4.3 billion senior notes; higher income tax expense and increased preferred stock dividend requirements and redemption premium; partially offset by a decrease in utility operating and maintenance expense; a decrease in costs to achieve the anticipated merger with Westar; an increase in interest income and a decrease in interest charges.2024.

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

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

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

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

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

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

~~Table of Contents~~

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

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

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

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

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

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

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

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

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

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

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

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

~~Table of Contents~~

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

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

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

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

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

Regulatory Proceedings

See Note 64 to the consolidated financial statements for information regarding other regulatory proceedings.

~~Impact of Recently Issued Accounting Standards~~

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

~~Table of Contents~~

Wolf Creek Refueling Outage

Wolf Creek's ~~latest~~most recent refueling outage began ~~on September 10, 2016~~in October 2022 and ~~ended on~~the unit returned to service in November ~~21, 2016.~~2022. Wolf Creek's next refueling outage is planned to begin in the first quarter of ~~2018.~~2024.

~~ENVIRONMENTAL MATTERS~~

~~See Note 13 to the consolidated financial statements for information regarding environmental matters.~~

~~RELATED PARTY TRANSACTIONS~~

~~See Note 15 to the consolidated financial statements for information regarding related party transactions.~~

~~GREAT PLAINS ENERGY RESULTS OF OPERATIONS~~Earnings Overview

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

Three Months Ended
September 30

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


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

~~Electric Utility Segment~~

~~Electric utility's~~Evergy's net income ~~increased $1.8 million~~and diluted EPS.


	Three Months Ended September 30						Year to Date September 30
	2023		Change		2022		2023		Change		2022
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	351.6	$	(76.6)	$	428.2	$	673.3	$	(71.9)	$	745.2
Earnings per common share, diluted	1.53		(0.33)		1.86		2.92		(0.31)		3.23

Net income attributable to Evergy, Inc. decreased for the three months ended September 30, ~~2017,~~2023, compared to the same period in ~~2016~~2022, primarily due ~~to:~~

to recording a ~~$0.8~~$96.5 million ~~decrease~~deferral of revenues in ~~gross margin~~2023 for future refund of amounts previously collected from customers related to COLI rate credits, the refund obligation of amounts collected from customers for the return on investment of Sibley Station recorded in 2022, lower retail sales in the third quarter of 2023 driven by ~~cooler weather;~~unfavorable weather, higher depreciation expense and higher interest expense; partially offset by ~~an increase in weather-normalized retail demand, new retail rates, an increase in Missouri Energy Efficiency Investment Act (MEEIA) throughput disincentive and an increase in other margin items;~~

~~a $7.3 million decrease in other operating expenses primarily driven by a decrease in plant~~lower income tax expense, lower operating and maintenance ~~expenses;~~expenses, higher COLI benefits and

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

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

~~a $6.9 million decrease in gross margin driven by milder weather and a decrease in MEEIA throughput disincentive; partially offset by an increase in weather-normalized retail demand, new~~Evergy Missouri West retail rates ~~an increase~~effective in ~~the recovery of program costs for energy efficiency programs under MEEIA and an increase in other margin items;~~January 2023.

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

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

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

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

~~Corporate and Other Activities~~

~~Great Plains Energy's corporate and other activities loss increased $131.1 million~~ for the three months ended September 30, ~~2017,~~2023, compared to the same period in ~~2016~~2022, primarily ~~due to:~~

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

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


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


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

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

~~a $15.0 million increase in non-operating expenses~~ due to the ~~write-off of previously deferred offering fees as a result of the termination of the stock purchase agreement for $750 million of Series A Preferred Stock between Great Plains Energy and OMERS;~~decrease in net income attributable to Evergy, Inc. discussed above.

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

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

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

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

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~~Great Plains Energy's corporate and other activities loss increased $202.7 million~~Evergy, Inc. decreased year to date September 30, ~~2017,~~2023, compared to the same period in ~~2016~~2022, primarily due ~~to:~~

to higher depreciation expense, recording a ~~$10.5~~$96.5 million ~~decrease~~deferral of revenues in ~~operating expenses~~2023 for ~~costs to achieve the anticipated merger with Westar;~~

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


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


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

~~a $20.1 million increase in non-operating income due to interest income earned on increased cash and cash equivalents at Great Plains Energy in 2017~~future refund of amounts previously collected from customers related to COLI rate credits, the ~~proceeds~~refund obligation of amounts collected from ~~Great Plains Energy's October 2016 common stock~~customers for the return on investment of Sibley Station recorded in 2022, higher interest expense and ~~Series B Preferred Stock offerings~~lower retail sales in 2023 driven by unfavorable weather; partially offset by lower operating and ~~March 2017 issuance of senior notes;~~maintenance expenses, lower income tax expense, new Evergy Metro and Evergy Missouri West retail rates effective in January 2023 and higher COLI benefits.

~~a $15.0 million increase~~Diluted EPS decreased year to date September 30, 2023, compared to the same period in ~~non-operating expenses~~2022, primarily due to the ~~write-off of previously deferred offering fees as a result of the termination of the stock purchase agreement for $750 million of Series A Preferred Stock between Great Plains Energy and OMERS;~~

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

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

~~a $10.1 million~~ decrease in net income ~~tax expense related~~attributable to ~~these items; and~~Evergy, Inc. discussed above.

~~a $36.7 million increase~~For additional information regarding the change in ~~reductions~~net income, refer to ~~earnings available for common shareholders primarily due to preferred stock dividend requirements and~~ the ~~redemption premium for Great Plains Energy's Series B Preferred Stock issued in October 2016 and redeemed in August 2017.~~Evergy Results of Operations section within this MD&A.

Non-GAAP Measures

Evergy Utility Gross Margin (non-GAAP)

~~Gross~~Utility gross margin (non-GAAP) is a financial measure that is not calculated in accordance with GAAP. ~~Gross~~Utility gross margin (non-GAAP), as used by ~~Great Plains Energy and KCP&L,~~the Evergy Companies, is defined as operating revenues less fuel and

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purchased power costs and ~~transmission.~~amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power ~~and certain transmission~~ costs, offset by wholesale sales margin, are subject to recovery through cost adjustment mechanisms. As a result, changes in fuel and purchased power costs are offset in operating revenues ~~increase or decrease~~with minimal impact on net income. In addition, SPP network transmission costs fluctuate primarily due to investments by SPP members for upgrades to the transmission grid within the SPP RTO. As with fuel and purchased power costs, changes in ~~relation~~SPP network transmission costs are mostly reflected in the prices charged to ~~a significant portion~~customers with minimal impact on net income. The Evergy Companies' definition of ~~these expenses.~~utility gross margin (non-GAAP) may differ from similar terms used by other companies.

Utility gross margin (non-GAAP) is intended to aid an investor's overall understanding of results. Management believes that utility gross margin (non-GAAP) provides a meaningful basis for evaluating ~~electric utility's~~the Evergy Companies' operations across periods because utility gross margin (non-GAAP) excludes the revenue effect of fluctuations in ~~these expenses. Gross~~fuel and purchased power costs and SPP network transmission costs. Utility gross margin (non-GAAP) is used internally to measure performance against budget and in reports for management and the ~~Great Plains Energy~~Evergy Board. ~~The Companies'~~Utility gross margin (non-GAAP) should be viewed as a supplement to, and not a substitute for, gross margin, which is the most directly comparable financial measure prepared in accordance with GAAP. Gross margin under GAAP is defined as the excess of sales over cost of goods sold.

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

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~~ELECTRIC UTILITY RESULTS OF OPERATIONS~~

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

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


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

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~~Electric Utility Gross Margin and MWh Sales~~

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

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

Gross margin ^(b)
$ 648.1
$ 648.9
—

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

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

Transmission (80.4 ) (64.5 ) 25

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

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

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

~~an estimated $35 million decrease due to cooler weather driven by a 15% decrease in cooling degree days;~~

~~Table~~exclusion of ~~Contents~~

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

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

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

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

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

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

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

~~an estimated $31 million increase due to weather-normalized retail demand;~~

~~an estimated $13 million increase due to new retail rates for KCP&L in Missouri effective June 8, 2017 and GMO effective February 22, 2017;~~

~~a $6.6 million increase for recovery of program costs for energy efficiency programs under MEEIA, which have a direct offset in utility operating and maintenance expense; and~~

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

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

~~Electric utility's other operating expenses decreased $7.3 million for the three months ended September 30, 2017, compared~~determined to ~~the same period in 2016 primarily due~~be directly attributable to ~~a $5.8 million decrease in plant operating and maintenance expenses.~~

Electric utility's other operating expenses decreased $0.8 million for year to date September 30, 2017, compared to the same period in 2016 primarily due to a $10.4 million decrease in plant operating and maintenance expenses; partially offset by a $6.6 million increase in program costs for energy efficiency programs under MEEIA, which have a direct offset in revenue.

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

Electric utility's costs to achieve the anticipated merger with Westar of $15.4 million for year to date September 30, 2017 reflects consulting fees, certain severance expenses and other transition costs related to the anticipated merger with Westar.

~~Electric Utility Depreciation and Amortization~~

~~Electric utility's~~revenue-producing activities, depreciation and amortization ~~increased $6.3 million~~ and ~~$20.8 million, respectively,~~taxes other than income tax. See the Evergy Companies' Results of Operations for a reconciliation of utility gross margin (non-GAAP) to gross margin, the most comparable GAAP measure.

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

Management believes that adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are representative measures of Evergy's recurring earnings, assists in the comparability of results and is consistent with how management reviews performance. Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended and year to date September 30, ~~2017,~~2022 have been recast, as applicable, to conform to the current year presentation.

Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended and year to date September 30, 2023 were $432.3 million or $1.88 per share and $754.5 million or $3.27 per share, respectively. For the three months ended and year to date September 30, 2022, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $460.8 million or $2.00 per share and $785.2 million or $3.41 per share, respectively.

In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without i.) the costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event; ii.) gains or losses related to equity investments subject to a restriction on sale; iii.) the revenues collected from customers for the return on investment of the retired Sibley Station in 2022 for future refunds to customers; iv.) the mark-to-market impacts of economic hedges related to Evergy Kansas Central's non-regulated 8% ownership share of JEC; v.) costs resulting from executive transition and advisor expenses; vi.) the transmission revenues collected from customers in 2022 through Evergy Kansas Central's FERC TFR to be refunded to customers in accordance with a December 2022 FERC order; vii.) the impairment loss on Sibley Unit 3; viii.) the second quarter 2023 deferral of the cumulative amount of prior year revenues collected since October 2019 for costs related to an electric subdivision rebate program to be refunded to customers in accordance with a June 2020 KCC order; and ix.) the deferral of revenues for future refund of amounts previously collected from customers related to COLI rate credits in accordance with a September 2023 KCC rate case unanimous settlement agreement.

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

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

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


	Earnings (Loss)		Earnings (Loss) per Diluted Share		Earnings (Loss)		Earnings (Loss) per Diluted Share
Three Months Ended September 30	2023				2022
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	351.6	$	1.53	$	428.2	$	1.86
Non-GAAP reconciling items:
Non-regulated energy marketing margin related to February 2021 winter weather event, pre-tax(a)	—		—		2.1		0.01
Sibley Station return on investment, pre-tax(b)	—		—		44.4		0.19
Mark-to-market impact of JEC economic hedges, pre-tax(c)	6.8		0.03		(10.3)		(0.04)
Non-regulated energy marketing costs related to February 2021 winter weather event, pre-tax(d)	—		—		0.3		—
Executive transition costs, pre-tax(e)	—		—		0.7		—

Advisor expenses, pre-tax(f)	—		—		0.6		—

Sibley Unit 3 impairment loss, pre-tax(g)	—		—		6.0		0.03

TFR refund, pre-tax(i)	—		—		(2.0)		(0.01)

Customer refund related to COLI rate credits, pre-tax(k)	96.5		0.42		—		—
Income tax benefit(l)	(22.6)		(0.10)		(9.2)		(0.04)

Adjusted earnings (non-GAAP)	$	432.3	$	1.88	$	460.8	$	2.00

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	Earnings (Loss)		Earnings (Loss) per Diluted Share		Earnings (Loss)		Earnings (Loss) per Diluted Share
Year to Date September 30	2023				2022
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	673.3	$	2.92	$	745.2	$	3.23
Non-GAAP reconciling items:
Non-regulated energy marketing margin related to February 2021 winter weather event, pre-tax(a)	—		—		2.1		0.01
Sibley Station return on investment, pre-tax(b)	—		—		38.2		0.17
Mark-to-market impact of JEC economic hedges, pre-tax(c)	4.8		0.02		(10.3)		(0.04)
Non-regulated energy marketing costs related to February 2021 winter weather event, pre-tax(d)	0.2		—		0.9		—
Executive transition costs, pre-tax(e)	—		—		0.7		—

Advisor expenses, pre-tax(f)	—		—		3.1		0.01

Sibley Unit 3 impairment loss, pre-tax(g)	—		—		6.0		0.03
Restricted equity investment losses, pre-tax(h)	—		—		16.3		0.07
TFR refund, pre-tax(i)	—		—		(5.8)		(0.03)
Electric subdivision rebate program costs refund, pre-tax(j)	2.6		0.01		—		—
Customer refunds related to COLI rate credits, pre-tax(k)	96.5		0.42		—		—
Income tax benefit(l)	(22.9)		(0.10)		(11.2)		(0.04)

Adjusted earnings (non-GAAP)	$	754.5	$	3.27	$	785.2	$	3.41

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

(b)Reflects revenues collected from customers for the return on investment of the retired Sibley Station and the 2022 deferral of the cumulative amount of revenues collected since December 2018 that are included in operating revenues on the consolidated statements of comprehensive income.

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

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

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

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

(g)Reflects the impairment loss on Sibley Unit 3 and is included in Sibley Unit 3 impairment loss on the consolidated statements of comprehensive income.

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

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

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

(k)Reflects the deferral of revenues for future refund of amounts previously collected from customers related to COLI rate credits in accordance with a September 2023 KCC rate case unanimous settlement agreement reached between Evergy, the KCC staff and other intervenors that are included in operating revenues on the consolidated statements of comprehensive income.

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

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ENVIRONMENTAL MATTERS

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

RELATED PARTY TRANSACTIONS

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

EVERGY RESULTS OF OPERATIONS

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


	Three Months Ended September 30						Year to Date September 30
	2023		Change		2022		2023		Change		2022
	(millions)
Operating revenues	$	1,669.3	$	(239.8)	$	1,909.1	$	4,320.3	$	(259.2)	$	4,579.5
Fuel and purchased power	478.4		(164.6)		643.0		1,177.4		(188.9)		1,366.3
SPP network transmission costs	75.4		(6.2)		81.6		232.0		(9.8)		241.8
Operating and maintenance	253.2		(13.0)		266.2		697.1		(104.1)		801.2
Depreciation and amortization	273.3		40.1		233.2		806.1		111.8		694.3
Taxes other than income tax	103.1		2.4		100.7		305.9		3.0		302.9
Sibley Unit 3 impairment loss	—		(6.0)		6.0		—		(6.0)		6.0
Income from operations	485.9		(92.5)		578.4		1,101.8		(65.2)		1,167.0
Other income (expense), net	12.7		10.1		2.6		1.0		42.6		(41.6)
Interest expense	136.8		34.5		102.3		393.6		100.2		293.4
Income tax expense	8.8		(40.7)		49.5		32.0		(51.1)		83.1
Equity in earnings of equity method investees, net of income taxes	1.6		(0.4)		2.0		5.3		(0.2)		5.5
Net income	354.6		(76.6)		431.2		682.5		(71.9)		754.4
Less: Net income attributable to noncontrolling interests	3.0		—		3.0		9.2		—		9.2
Net income attributable to Evergy, Inc.	$	351.6	$	(76.6)	$	428.2	$	673.3	$	(71.9)	$	745.2

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

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


	Revenues and Expenses						MWhs Sold
Three Months Ended September 30	2023		Change		2022		2023	Change	2022
Retail revenues	(millions)						(thousands)
Residential	$	675.1	$	(71.5)	$	746.6	5,134	(111)	5,245
Commercial	528.6		(55.1)		583.7		5,212	(65)	5,277
Industrial	158.9		(38.3)		197.2		2,229	(128)	2,357
Other retail revenues	11.6		50.6		(39.0)		30	(3)	33
Total electric retail	1,374.2		(114.3)		1,488.5		12,605	(307)	12,912
Wholesale revenues	148.3		(102.3)		250.6		4,636	(955)	5,591
Transmission revenues	101.9		0.6		101.3		N/A	N/A	N/A
Other revenues	44.9		(23.8)		68.7		N/A	N/A	N/A
Operating revenues	1,669.3		(239.8)		1,909.1		17,241	(1,262)	18,503
Fuel and purchased power	(478.4)		164.6		(643.0)
SPP network transmission costs	(75.4)		6.2		(81.6)
Operating and maintenance(a)	(131.3)		7.5		(138.8)
Depreciation and amortization	(273.3)		(40.1)		(233.2)
Taxes other than income tax	(103.1)		(2.4)		(100.7)
Gross margin (GAAP)	607.8		(104.0)		711.8
Operating and maintenance(a)	131.3		(7.5)		138.8
Depreciation and amortization	273.3		40.1		233.2
Taxes other than income tax	103.1		2.4		100.7
Utility gross margin (non-GAAP)	$	1,115.5	$	(69.0)	$	1,184.5
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $121.9 million and $127.4 million for the three months ended September 30, 2023 and 2022, respectively.

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	Revenues and Expenses						MWhs Sold
Year to Date September 30	2023		Change		2022		2023	Change	2022
Retail revenues	(millions)						(thousands)
Residential	$	1,626.4	$	(85.4)	$	1,711.8	12,491	(443)	12,934
Commercial	1,419.3		(33.0)		1,452.3		13,961	40	13,921
Industrial	475.3		(42.3)		517.6		6,411	(266)	6,677
Other retail revenues	31.8		52.0		(20.2)		92	(6)	98
Total electric retail	3,552.8		(108.7)		3,661.5		32,955	(675)	33,630
Wholesale revenues	301.8		(80.2)		382.0		11,682	(2,181)	13,863
Transmission revenues	308.2		7.9		300.3		N/A	N/A	N/A
Other revenues	157.5		(78.2)		235.7		N/A	N/A	N/A
Operating revenues	4,320.3		(259.2)		4,579.5		44,637	(2,856)	47,493
Fuel and purchased power	(1,177.4)		188.9		(1,366.3)
SPP network transmission costs	(232.0)		9.8		(241.8)
Operating and maintenance(a)	(370.6)		40.6		(411.2)
Depreciation and amortization	(806.1)		(111.8)		(694.3)
Taxes other than income tax	(305.9)		(3.0)		(302.9)
Gross margin (GAAP)	1,428.3		(134.7)		1,563.0
Operating and maintenance(a)	370.6		(40.6)		411.2
Depreciation and amortization	806.1		111.8		694.3
Taxes other than income tax	305.9		3.0		302.9
Utility gross margin (non-GAAP)	$	2,910.9	$	(60.5)	$	2,971.4
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $326.5 million and $390.0 million year to date September 30, 2023 and 2022, respectively.

Evergy's gross margin (GAAP) decreased $104.0 million for the three months ended September 30, 2023, compared to the same ~~periods~~period in ~~2016~~2022 and Evergy's utility gross margin (non-GAAP) decreased $69.0 million for the three months ended September 30, 2023, compared to the same period in 2022, both measures were driven by:

•a $96.5 million decrease due to the deferral of revenues at Evergy Kansas Central in the third quarter of 2023 for future refund to customers of amounts previously collected from customers related to COLI rate credits;

•an $18.0 million decrease primarily due to ~~capital additions.~~lower retail sales driven by unfavorable weather (cooling degree days decreased by 5%) and lower weather-normalized commercial and industrial demand;

~~Electric Utility Income Tax Expense~~•a $17.1 million decrease due to mark-to-market losses related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's non-regulated 8% ownership share of JEC; and

~~Electric utility's income tax~~•a $3.8 million decrease in operating revenue related to non-regulated energy marketing activity at Evergy Kansas Central; partially offset by

•a $44.4 million increase due to the deferral of revenues in the third quarter of 2022 for the refund of amounts collected from customers since December 2018 for the return on investment of the retired Sibley Station; and

•a $22.0 million increase from new Evergy Metro and Evergy Missouri West retail rates effective in January 2023.

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

•a $40.1 million increase in depreciation and amortization as further described below; partially offset by

•a $7.5 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $3.4 million decrease in plant operating and maintenance expense at Wolf Creek and a $1.8 million decrease in plant operating and maintenance expense at fossil-fuel generating units as further described below.

Evergy's gross margin (GAAP) decreased ~~$17.6~~$134.7 million year to date September 30, ~~2017,~~2023, compared to the same period in ~~2016~~2022 and Evergy's utility gross margin (non-GAAP) decreased $60.5 million year to date September 30, 2023, compared to the same period in 2022, both measures were driven by:

•a $48.1 million decrease primarily due to lower retail sales driven by unfavorable weather (cooling degree days decreased ~~pre-tax income.~~by 7% and heating degree days decreased by 13%), partially offset by higher weather-normalized residential and commercial demand;

•a $15.1 million decrease due to mark-to-market losses related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's non-regulated 8% ownership share of JEC; and

~~GREAT PLAINS ENERGY SIGNIFICANT BALANCE SHEET CHANGES~~•a $2.5 million decrease in operating revenue related to non-regulated energy marketing activity at Evergy Kansas Central; partially offset by

(•a $55.6 million increase from new Evergy Metro and Evergy Missouri West retail rates effective in January 2023;

•a $38.2 million increase due to the deferral of revenues in the third quarter of 2022 for the refund of amounts collected from customers since December 2018 for the return on investment of the retired Sibley Station; and

•a $7.9 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2023 and revised in March 2023.

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

•a $111.8 million increase in depreciation and amortization as further described below; partially offset by

•a $40.6 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $15.5 million decrease in plant and operating and maintenance expense at fossil-fuel generating units, an $11.5 million decrease in transmission and distribution operating and maintenance expenses and a $10.3 million decrease in plant operating and maintenance expense at Wolf Creek as further described below.

Operating and Maintenance

Evergy's operating and maintenance expense decreased $13.0 million for the three months ended September 30, ~~2017~~2023, compared to the same period in 2022, primarily driven by:

•a $7.5 million decrease in various administrative and general operating and maintenance expenses primarily due to lower regulatory amortizations at Evergy Metro and Evergy Missouri West as a result of their 2022 rate cases; and

•a $3.4 million decrease in plant operating and maintenance expense at Wolf Creek at Evergy Kansas Central and Evergy Metro primarily due to lower refueling outage amortization in 2023 and lower labor expense in 2023 driven by an increase in labor capitalization and lower employee headcount.

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Evergy's operating and maintenance expense decreased $104.1 million year to date September 30, 2023, compared to the same period in 2022, primarily driven by:

•a $25.7 million decrease in administrative labor and employee benefits expenses primarily due to lower employee headcount in 2023;

•a $17.6 million decrease in various administrative and general operating and maintenance expenses primarily due to lower regulatory amortizations at Evergy Metro and Evergy Missouri West as a result of their 2022 rate cases;

•a $15.5 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily due to an $11.5 million decrease at Evergy Kansas Central driven by major maintenance outages at JEC in 2022 and a $2.0 million decrease at Evergy Metro driven by major maintenance outages at Iatan Station Unit 1 and La Cygne Unit 2 in 2022; partially offset by a major maintenance outage at Hawthorn Station in 2023;

•an $11.6 million decrease in transmission and distribution operating and maintenance expenses driven by a $15.8 million decrease in labor expense primarily due to an increase in labor capitalization and lower employee headcount; partially offset by $5.4 million of costs primarily at Evergy Metro incurred from storms that occurred in July 2023;

•a $10.3 million decrease in plant operating and maintenance expense at Wolf Creek at Evergy Kansas Central and Evergy Metro primarily due to lower refueling outage amortization in 2023 and lower labor expense in 2023 driven by an increase in labor capitalization and lower employee headcount; and

•$3.1 million of advisor expenses incurred in 2022 associated with strategic planning; partially offset by

•a $3.7 million increase due to a lower annual refund of nuclear insurance premiums received by Evergy Kansas Central and Evergy Metro in 2023 related to their ownership interest in Wolf Creek.

Depreciation and Amortization

Evergy's depreciation and amortization increased $40.1 million for the three months ended September 30, 2023, compared to the same period in 2022, primarily driven by:

•a $17.0 million increase primarily due to a change in depreciation rates and the rebasing of plant-in-service-accounting (PISA) depreciation deferrals as a result of Evergy Metro's and Evergy Missouri West's 2022 rate cases effective in January 2023; and

•a $23.1 million increase primarily due to capital additions.

Evergy's depreciation and amortization increased $111.8 million year to date September 30, 2023, compared to the same period in 2022, primarily driven by:

•a $54.7 million increase primarily due to a change in depreciation rates and the rebasing of PISA depreciation deferrals as a result of Evergy Metro's and Evergy Missouri West's 2022 rate cases effective in January 2023; and

•a $57.1 million increase primarily due to capital additions.

Other Income (Expense), Net

Evergy's other income, net increased $10.1 million for the three months ended September 30, 2023, compared to the same period in 2022, primarily driven by:

•a $17.0 million increase due to recording higher Evergy Kansas Central COLI benefits in 2023; and

•a $3.7 million decrease in pension non-service costs; partially offset by

•$15.0 million of carrying charges recorded by Evergy Missouri West in the third quarter of 2022 associated with its regulatory asset for fuel and purchased power costs related to the February 2021 winter weather event, driven by an MPSC order allowing for their recovery as part of Evergy Missouri West's securitization financing request.

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Evergy's other expense, net year to date September 30, 2022 became other income, net year to date September 30, 2023 as a result of a $42.6 million increase in net other income items, primarily driven by:

•a $24.8 million increase due to recording higher Evergy Kansas Central COLI benefits in 2023; and

•a $19.4 million increase due to higher investment earnings primarily driven by a $16.3 million loss related to Evergy's equity investment in an early-stage energy solutions company that was sold in March 2022 through a share forward agreement which was completed in June 2022 and a $6.4 million increase due to net unrealized losses becoming net unrealized gains in Evergy Kansas Central's rabbi trust; partially offset by

•$11.7 million of lower equity allowance for funds used during construction (AFUDC) primarily at Evergy Kansas Central and Evergy Metro primarily driven by higher short-term debt balances in 2023.

Interest Expense

Evergy's interest expense increased $34.5 million for the three months ended September 30, 2023, compared to the same period in 2022, primarily driven by:

•a $22.6 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates in 2023;

•a $5.7 million increase due to the issuance of Evergy Kansas Central's $400.0 million of 5.70% FMBs in March 2023; and

•a $3.9 million increase due to the issuance of Evergy Missouri West's $300.0 million of 5.15% FMBs in December ~~31, 2016)~~2022.

~~Great Plains Energy's~~Evergy's interest expense increased $100.2 million year to date September 30, 2023, compared to the same period in 2022, primarily driven by:

•a $76.9 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates in 2023;

•a $12.5 million increase due to the issuance of Evergy Kansas Central's $400.0 million of 5.70% FMBs in March 2023; and

•an $11.6 million increase due to the issuance of Evergy Missouri West's $300.0 million of 5.15% FMBs in December 2022.

Income Tax Expense

Evergy's income tax expense decreased $40.7 million for the three months ended September 30, 2023, compared to the same period in 2022, primarily driven by:

•a $25.8 million decrease primarily due to Evergy Metro and Evergy Kansas Central lower pre-tax income in the third quarter of 2023;

•a $9.3 million decrease primarily due to higher amortization of excess deferred income taxes authorized by Evergy Metro's and Evergy Missouri West's 2022 rate case; and

•an $8.6 million decrease due to higher wind and other income tax credits in the third quarter of 2023 driven by the acquisition of the Persimmon Creek wind farm.

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Evergy's income tax expense decreased $51.1 million year to date September 30, 2023, compared to the same period in 2022, primarily driven by:

•a $27.1 million decrease primarily due to lower Evergy Metro and Evergy Kansas Central pre-tax income in 2023;

•a $13.5 million decrease primarily due to higher amortization of excess deferred income taxes authorized by Evergy Metro's and Evergy Missouri West's 2022 rate case; and

•a $13.5 million decrease primarily due to higher wind and other income tax credits in 2023 driven by the acquisition of the Persimmon Creek wind farm.

LIQUIDITY AND CAPITAL RESOURCES

Evergy relies primarily upon cash from operations, short-term borrowings, long-term debt and equity issuances and its existing cash and cash equivalents ~~decreased $195.2 million~~to fund its capital requirements. Evergy's capital requirements primarily ~~due to the redemption~~consist of ~~Great Plains Energy's $4.3 billion senior notes for $4,400.1 million in July 2017, the redemption~~capital expenditures, payment of ~~Great Plains Energy's Series B Preferred Stock in August 2017 for $963.4 million~~contractual obligations and other commitments, and the ~~maturity of Great Plains Energy's $100.0 million of 6.875% Senior Notes in September 2017; partially~~

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~~offset by the issuance of Great Plains Energy's $4.3 billion senior notes and the maturity of a $1.0 billion time deposit in March 2017.~~

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

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

~~Great Plains Energy's commercial paper decreased $86.9 million due to the repayment of commercial paper of $60.9 million at KCP&L and $26.0 million at GMO primarily with funds from operations.~~

~~Great Plains Energy's accounts payable decreased $126.9 million primarily due to the timing of cash payments.~~

~~Great Plains Energy's accrued taxes increased $93.7 million primarily due to the timing of property tax payments.~~

~~Great Plains Energy's preference stock without par value decreased $836.2 million due to the redemption of Great Plains Energy's Series B Preferred Stock in August 2017.~~

~~CAPITAL REQUIREMENTS AND LIQUIDITY~~

Great Plains Energy operates through its subsidiaries and has no material assets other than the stock of its subsidiaries and cash and cash equivalents. Great Plains Energy's ability to make payments on its debt securities and its ability to pay dividends is dependent on its receiptpayment of dividends ~~or other distributions from its subsidiaries, proceeds from~~to shareholders. See the ~~issuance~~Evergy Companies' combined 2022 Form 10-K for more information on Evergy's sources and uses of ~~its securities and borrowing under its revolving credit facility.~~cash.

~~Great Plains Energy's capital requirements are principally comprised~~Short-Term Borrowings

As of debt maturities and electric utility's construction and other capital expenditures. These items as well as additional cash and capital requirements, including requirements related to the anticipated merger with Westar, are discussed below.

~~Great Plains Energy's liquid resources at~~ September 30, ~~2017, consisted of $1.1 billion of cash and cash equivalents on hand and $996.4~~2023, Evergy had $819.9 million of available borrowing capacity ~~from unused bank lines of~~under its master credit ~~and receivable sale agreements.~~facility. The available borrowing capacity under the master credit facility consisted of ~~$199.0~~$186.4 million ~~from Great Plains Energy's revolving~~for Evergy, Inc., $188.8 million for Evergy Kansas Central, $318.2 million for Evergy Metro and $126.5 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility ~~$525.3 million from KCP&L's credit facilities and $272.1 million from GMO's credit facilities.~~also supports their issuance of commercial paper. See ~~Notes 4 and 10~~Note 7 to the consolidated financial statements for more information regarding the master credit facility.

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

Along with cash flows from operations and receivable ~~sale agreements~~sales facilities, Evergy generally uses borrowings under its master credit facility and ~~revolving credit facilities, respectively. Generally, Great Plains Energy uses these liquid resources~~the issuance of commercial paper to meet its day-to-day cash flow ~~requirements, and from time~~requirements. Evergy may also utilize these short-term borrowings to ~~time issues equity and/or~~repay maturing long-term debt until the long-term debt is able to ~~repay short-term debt or increase~~be refinanced. Evergy believes that its existing cash ~~balances.~~

~~The $1.1 billion of cash and cash equivalents~~ on hand atand available borrowing capacity under its master credit facility provide sufficient liquidity for its existing capital requirements.

Significant Debt Issuances

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

Pensions

Year to date September 30, ~~2017 is primarily~~2023, Evergy made pension contributions of $27.0 million. Evergy, Evergy Kansas Central and Evergy Metro do not expect to make additional pension contributions in 2023. Also in 2023, Evergy expects to make additional post-retirement benefit contributions of $1.1 million. See Note 6 to the ~~result~~consolidated financial statements for additional information on Evergy's pension and post-retirement plans.

Debt Covenants

As of ~~Great Plains Energy's common stock offering~~September 30, 2023, Evergy was in ~~October 2016, the proceeds of which were to be used to fund a portion of the cash consideration for the acquisition of Westar~~compliance with all debt covenants under the ~~Original Merger Agreement. Great Plains Energy also expects~~master credit facility, the Term Loan Facility and certain debt instruments that contain restrictions that require the maintenance of certain capitalization and leverage ratios. See Note 7 to ~~receive $140.6 million in proceeds from its deal contingent interest rate swaps upon~~ the closing of the anticipated merger with Westar. Under the Amended Merger Agreement, Great Plains Energy is required to have not less than $1.25 billion in cash and cash equivalents on its balance sheet at the closing of the anticipated merger with Westar. It is expected that this excess cash will be returned to shareholders of the combined company through the repurchase of common stock in a series of transactions over time after the closing of the anticipated merger.

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

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Cash Flows

~~environmental regulations~~The following table presents Evergy's cash flows from operating, investing and ~~the availability of generating units. In addition, Great Plains Energy may issue equity, equity-linked securities and/or debt to finance growth.~~ financing activities.



Year to Date September 30	2023		2022
	(millions)
Cash Flows from Operating Activities	$	1,551.7	$	1,477.7
Cash Flows used in Investing Activities	(1,791.9)		(1,625.1)
Cash Flows from Financing Activities	256.0		145.9

Cash Flows from Operating Activities

~~Great Plains Energy generated positive~~Evergy's cash flows from operating activities ~~for the periods presented. The $35.1~~increased $74.0 million ~~decrease in cash flows from operating activities for Great Plains Energy~~ year to date September 30, ~~2017,~~2023, compared to the same period in ~~2016 was~~2022, primarily driven by an $85.3 million increase in ~~payments for costs to achieve the anticipated merger with Westar in 2017 of $13.1 million, an increase in ARO settlement payments~~fuel recovery mechanism net collections, primarily at KCP&L and GMO in 2017 of $6.8 million, an increase in Great Plains Energy's pension funding contributions in 2017 of $4.4 million and $7.5 million of other changes in working capital that are detailed in Note 3 to the consolidated financial statements. The individual components of working capital vary with normal business cycles and operations.Evergy Missouri West.

Cash Flows ~~from~~used in Investing Activities

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

~~Great Plains Energy's~~Evergy's cash flows ~~from~~used in investing activities increased ~~$1.1 billion~~$166.8 million year to date September 30, ~~2017,~~2023, compared to the same period in ~~2016~~2022, primarily driven by:

•the acquisition of Persimmon Creek Wind Farm for $217.9 million, net of cash acquired, in 2023; partially offset by

•a $114.8 million increase in proceeds from COLI investments, primarily from Evergy Kansas Central due to ~~$1.0 billion for proceeds from the maturity~~a higher number of ~~a time deposit~~policy settlements in ~~March 2017. Great Plains Energy had purchased the $1.0 billion time deposit in 2016 with a portion of the proceeds from its October 2016 common stock and depositary share offerings.~~2023.

Cash Flows from Financing Activities

~~Great Plains Energy's~~Evergy's cash flows from financing activities ~~decreased $1.2 billion~~increased $110.1 million year to date September 30, ~~2017,~~2023, compared to the same period in ~~2016~~2022, primarily driven by:

•a $443.4 million increase in proceeds from long-term debt due to Evergy Kansas Central's issuance of $400.0 million of 5.70% FMBs in March 2023 and Evergy Metro’s issuance of $300.0 million of 4.95% Mortgage Bonds in April 2023; partially offset by Evergy Missouri West's issuance of $250.0 million of 3.75% FMBs in March 2022; partially offset by

•a $218.2 million decrease in short-term debt borrowings primarily due to Evergy Kansas Central's repayment of commercial paper borrowings with the ~~$963.4 million redemption~~proceeds from its issuance of ~~Series B Preferred Stock in August 2017, the maturity of Great Plains Energy's $100.0~~$400.0 million of ~~6.875% unsecured Senior Notes~~5.70% FMBs in ~~September 2017, a $90.2~~March 2023; partially offset by Evergy Kansas South's repayment of $50.0 million of 6.15% FMBs in May 2023 with commercial paper borrowings; and

•an $88.6 million increase in ~~dividends paid in 2017~~the repayment of borrowings against the cash surrender value of COLI primarily due to ~~Great Plains Energy's October 2016 common stock and depositary share offerings, and~~ a ~~$43.0 million redemption premium paid on the redemption~~higher number of ~~Great Plains Energy's $4.3 billion senior notes~~policy settlements in ~~July 2017.~~

~~Financing Authorization~~

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

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

KCP&L and GMO are also authorized by FERC to participate in the Great Plains Energy money pool, an internal financing arrangement in which funds may be lent on a short-term basis to KCP&L and GMO. At September 30, 2017, there were no outstanding payables under the money pool.2023.

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~~Significant Financing Activities~~

~~Great Plains Energy~~

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

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

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

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

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

In July 2017, as a result of the Amended Merger Agreement, Great Plains Energy redeemed each series of the senior notes issued in March 2017. See Note 11 to the consolidated financial statements for more information on the redemption of the senior notes.

In August 2017, as a result of the Amended Merger Agreement, Great Plains Energy redeemed its Series B Preferred Stock. See Note 12 to the consolidated financial statements for more information on the redemption of the Series B Preferred Stock.

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

~~KCP&L~~

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

~~Debt Agreements~~

~~See Note 10 to the consolidated financial statements for information regarding revolving credit facilities.~~

~~Pensions~~

The Company incurs significant costs in providing defined benefit plans for substantially all active and inactive employees of KCP&L and GMO and its 47% ownership share of WCNOC's defined benefit plans. Funding of the plans follows legal and regulatory requirements with funding equaling or exceeding the minimum requirements of ERISA.

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

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

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

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

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

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

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


Year to Date September 30	2023		Change		2022
	(millions)
Operating revenues	$	2,091.5	$	(267.8)	$	2,359.3
Fuel and purchased power	470.5		(158.7)		629.2
SPP network transmission costs	232.0		(9.8)		241.8
Operating and maintenance	347.1		(55.2)		402.3
Depreciation and amortization	386.0		24.1		361.9
Taxes other than income tax	165.1		1.8		163.3
Income from operations	490.8		(70.0)		560.8
Other income (expense), net	1.1		28.0		(26.9)
Interest expense	163.3		31.6		131.7
Income tax expense	3.6		(19.9)		23.5
Equity in earnings of equity method investees, net of income taxes	2.6		(0.5)		3.1
Net income	327.6		(54.2)		381.8
Less: Net income attributable to noncontrolling interests	9.2		—		9.2
Net income attributable to Evergy Kansas Central, Inc.	$	318.4	$	(54.2)	$	372.6

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Year to Date
September 30

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

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

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

Non-operating income and expenses 0.5
1.9

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

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

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


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

~~KCP&L~~Evergy Kansas Central Gross Margin (GAAP) and ~~MWh Sales~~Utility Gross Margin (non-GAAP)

The following table summarizes ~~KCP&L's~~Evergy Kansas Central's gross margin (GAAP) and MWhs ~~sold.~~

Revenues and Costs % MWhs Sold %
Year to Date September 30 2017 2016 Change 2017 2016 Change
Retail revenues (millions) (thousands)
Residential $ 566.6
$ 573.2
(1 ) 4,034
4,200
(4 )
Commercial 637.3
615.4
4
5,730
5,755
—
Industrial 116.5
113.0
3
1,330
1,399
(5 )
Other retail revenues 8.3
10.0
(17 ) 53
63
(16 )
Provision for rate refund 0.7
0.5
36
N/A
N/A
N/A
Energy efficiency (MEEIA)^(a)
22.6
29.6
(24)
N/A
N/A
N/A
Total retail 1,352.0
1,341.7
1
11,147
11,417
(2 )
Wholesale revenues 102.4
115.3
(11 ) 5,198
5,971
(13 )
Other revenues 19.9
17.1
17
N/A
N/A
N/A
Operating revenues 1,474.3
1,474.1
—
16,345
17,388
(6 )
Fuel and purchased power (314.4 ) (298.7 ) 5

Transmission (52.9 ) (44.8 ) 18

Gross margin ^(b)
$ 1,107.0
$ 1,130.6
(2 )


^(a)	Consists of recovery of program costs of $18.0 million and $20.6 million year to date September 30, 2017, and 2016, respectively, that have a direct offset in operating and maintenance expenses and recovery of throughput disincentive of $4.6 million and $9.0 million year to date September 30, 2017, and 2016, respectively.


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

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~~KCP&L's~~sold and reconciles Evergy Kansas Central's gross margin (GAAP) to Evergy Kansas Central's utility gross margin (non-GAAP). See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).


	Revenues and Expenses						MWhs Sold
Year to Date September 30	2023		Change		2022		2023	Change	2022
Retail revenues	(millions)						(thousands)
Residential	$	647.3	$	(114.7)	$	762.0	5,276	(211)	5,487
Commercial	555.3		(70.6)		625.9		5,683	68	5,615
Industrial	300.1		(46.6)		346.7		4,070	(229)	4,299
Other retail revenues	12.5		(0.7)		13.2		30	—	30
Total electric retail	1,515.2		(232.6)		1,747.8		15,059	(372)	15,431
Wholesale revenues	232.7		(55.7)		288.4		7,567	(1,088)	8,655
Transmission revenues	294.8		25.0		269.8		N/A	N/A	N/A
Other revenues	48.8		(4.5)		53.3		N/A	N/A	N/A
Operating revenues	2,091.5		(267.8)		2,359.3		22,626	(1,460)	24,086
Fuel and purchased power	(470.5)		158.7		(629.2)
SPP network transmission costs	(232.0)		9.8		(241.8)
Operating and maintenance (a)	(171.6)		28.9		(200.5)
Depreciation and amortization	(386.0)		(24.1)		(361.9)
Taxes other than income tax	(165.1)		(1.8)		(163.3)
Gross margin (GAAP)	666.3		(96.3)		762.6
Operating and maintenance (a)	171.6		(28.9)		200.5
Depreciation and amortization	386.0		24.1		361.9
Taxes other than income tax	165.1		1.8		163.3
Utility gross margin (non-GAAP)	$	1,389.0	$	(99.3)	$	1,488.3
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $175.5 million and $201.8 million year to date September 30, 2023 and 2022, respectively.

Evergy Kansas Central's gross margin (GAAP) decreased ~~$23.6~~$96.3 million year to date September 30, ~~2017,~~2023, compared to the same period in ~~2016 primarily driven by:~~

~~an estimated $45 million decrease due to weather driven by a 16% decrease in cooling degree days in the second~~2022, and ~~third quarters of 2017 and a 7% decrease in heating degree days in the first quarter of 2017;~~

~~a $4.4 million decrease in MEEIA throughput disincentive;~~

~~a $2.6 million decrease for recovery of program costs for energy efficiency programs under MEEIA, which have a direct offset in~~Evergy Kansas Central's utility ~~operating and maintenance expense;~~

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

~~an estimated $12 million increase due to new retail rates for KCP&L in Missouri effective June 8, 2017.~~

~~KCP&L Costs to Achieve the Anticipated Merger with Westar~~

~~KCP&L's costs to achieve the anticipated merger with Westar of $10.3~~gross margin (non-GAAP) decreased $99.3 million year to date September 30, ~~2017, reflects consulting fees, certain severance~~2023, compared to the same period in 2022, both measures were driven by:

•a $96.5 million decrease due to the deferral of revenues in the third quarter of 2023 for future refund to customers of amounts previously collected from customers related to COLI rate credits;

•a $12.7 million decrease primarily due to lower retail sales driven by unfavorable weather (cooling degree days decreased by 4% and heating degree days decreased by 13%); partially offset by higher weather-normalized demand; partially offset by

•a $25.0 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2023 and revised in March 2023.

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

•a $28.9 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by an $11.5 million decrease in operating and maintenance expense at fossil-fuel generating units, a $7.3 million decrease in transmission and distribution operating and maintenance expenses and ~~other transition costs related to the anticipated merger with Westar.~~a $4.9 million decrease in operating and maintenance expense at Wolf Creek as described further below; partially offset by

~~KCP&L Depreciation and Amortization~~

~~KCP&L's~~•a $24.1 million increase in depreciation and amortization expense ~~increased $15.8~~as described further below.

Evergy Kansas Central Operating and Maintenance

Evergy Kansas Central's operating and maintenance expense decreased $55.2 million year to date September 30, ~~2017,~~2023, compared to the same period in ~~2016~~2022, primarily driven by:

•an $11.5 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily driven by a major maintenance outage at JEC in 2022;

•an $11.0 million decrease in administrative labor and employee benefits expenses primarily due to ~~capital additions.~~lower employee headcount in 2023;

~~KCP&L Income Tax Expense~~•a $7.6 million decrease in various transmission and distribution operating and maintenance expenses primarily due to lower labor costs driven by an increase in labor capitalization and lower employee headcount, partially offset by a $3.4 million increase in vegetation management costs;

~~KCP&L's income tax~~•a $4.9 million decrease in plant operating and maintenance expense ~~decreased $17.5~~at Wolf Creek primarily due to lower refueling outage amortization in 2023 and lower labor costs in 2023 driven by an increase in labor capitalization and lower employee headcount; and

•a $4.9 million decrease in injuries and damages expense primarily due to settled litigation in 2023; partially offset by

•a $1.9 million increase in operating and maintenance expense due to a lower annual refund of nuclear insurance premiums received in 2023 related to Evergy Kansas Central's ownership interest in Wolf Creek.

Evergy Kansas Central Depreciation and Amortization

Evergy Kansas Central's depreciation and amortization expense increased $24.1 million year to date September 30, ~~2017,~~2023, compared to the same period in ~~2016~~2022, primarily driven by capital additions.

Evergy Kansas Central Other Expense, Net

Evergy Kansas Central's other expense, net year to date September 30, 2022 became other income, net year to date September 30, 2023 as a result of a $28.0 million increase in net other income items, primarily driven by:

•a $24.8 million increase due to recording higher COLI benefits in 2023; and

•a $6.4 million increase due to net unrealized losses becoming net unrealized gains in Evergy Kansas Central's rabbi trust; partially offset by

•$4.4 million of lower equity AFUDC driven by higher short-term debt balances in 2023.

Evergy Kansas Central Interest Expense

Evergy Kansas Central's interest expense increased $31.6 million year to date September 30, 2023, compared to the same period in 2022, primarily driven by

• a $25.8 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates in 2023; and

•a $12.5 million increase due to the issuance of $400.0 million of 5.70% FMBs in March 2023; partially offset by

•an $8.8 million decrease due to higher debt AFUDC.

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Evergy Kansas Central Income Tax Expense

Evergy Kansas Central's income tax expense decreased $19.9 million year to date September 30, 2023, compared to the same period in 2022, primarily driven by lower pre-tax ~~income.~~income in 2023.

EVERGY METRO, INC.

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

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

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


Year to Date September 30	2023		Change		2022
	(millions)
Operating revenues	$	1,499.9	$	(64.5)	$	1,564.4
Fuel and purchased power	417.8		(69.4)		487.2
Operating and maintenance	213.6		(27.2)		240.8
Depreciation and amortization	311.9		59.7		252.2
Taxes other than income tax	100.4		0.4		100.0

Income from operations	456.2		(28.0)		484.2
Other expense, net	(11.6)		(0.3)		(11.3)
Interest expense	100.6		19.1		81.5
Income tax expense	42.3		(12.9)		55.2
Net income	$	301.7	$	(34.5)	$	336.2

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

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


	Revenues and Expenses						MWhs Sold
Year to Date September 30	2023		Change		2022		2023	Change	2022
Retail revenues	(millions)						(thousands)
Residential	$	603.9	3.2		$	600.7	4,374	(128)	4,502
Commercial	606.1		16.4		589.7		5,648	(52)	5,700
Industrial	100.6		1.8		98.8		1,269	(26)	1,295
Other retail revenues	9.5		0.9		8.6		46	(7)	53
Total electric retail	1,320.1		22.3		1,297.8		11,337	(213)	11,550
Wholesale revenues	80.7		(5.9)		86.6		4,036	(838)	4,874
Transmission revenues	10.8		(3.6)		14.4		N/A	N/A	N/A
Other revenues	88.3		(77.3)		165.6		N/A	N/A	N/A
Operating revenues	1,499.9		(64.5)		1,564.4		15,373	(1,051)	16,424
Fuel and purchased power	(417.8)		69.4		(487.2)
Operating and maintenance (a)	(146.9)		7.3		(154.2)
Depreciation and amortization	(311.9)		(59.7)		(252.2)
Taxes other than income tax	(100.4)		(0.4)		(100.0)
Gross margin (GAAP)	522.9		(47.9)		570.8
Operating and maintenance (a)	146.9		(7.3)		154.2
Depreciation and amortization	311.9		59.7		252.2
Taxes other than income tax	100.4		0.4		100.0
Utility gross margin (non-GAAP)	$	1,082.1	$	4.9	$	1,077.2
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $66.7 million and $86.6 million year to date September 30, 2023 and 2022, respectively.

Evergy Metro's gross margin (GAAP) decreased $47.9 million year to date September 30, 2023, compared to the same period in 2022 and Evergy Metro's utility gross margin (non-GAAP) increased $4.9 million year to date September 30, 2023, compared to the same period in 2022, both measures were driven by:

•a $17.8 million increase from new Evergy Metro retail rates effective in January 2023; partially offset by

•a $12.9 million decrease primarily due to lower retail sales driven by unfavorable weather (cooling degree days decreased by 10% and heating degree days decreased by 13%), partially offset by higher weather-normalized residential and commercial demand.

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

•a $59.7 million increase in depreciation and amortization expense as described further below; partially offset by

•a $7.3 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $5.4 million decrease in plant operating and maintenance expense at Wolf Creek and a $2.0 million decrease in operating and maintenance expense at fossil-fuel generating units as further described below.

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Evergy Metro Operating and Maintenance

Evergy Metro's operating and maintenance expense decreased $27.2 million year to date September 30, 2023, compared to the same period in 2022, primarily driven by:

•an $11.4 million decrease in various administrative and general operating and maintenance expenses primarily driven by lower regulatory amortizations as a result of Evergy Metro's 2022 rate case;

•an $8.9 million decrease in administrative labor and employee benefits expenses primarily due to lower employee headcount in 2023;

•a $5.4 million decrease in plant operating and maintenance expense at Wolf Creek primarily due to lower refueling outage amortizations in 2023 and lower labor costs driven by an increase in labor capitalization and lower employee headcount;

•a $3.5 million decrease in transmission and distribution labor expense primarily due to an increase in labor capitalization and lower employee headcount; and

•a $2.0 million decrease in plant and operating maintenance expense at fossil-fuel generating units primarily driven by major maintenance outages at Iatan Station Unit 1 and La Cygne Unit 2 in 2022; partially offset by a major maintenance outage at Hawthorn Station in 2023; partially offset by

•$5.8 million of costs incurred from storms that occurred in July 2023; and

•a $1.8 million increase to operating and maintenance expense due to a lower annual refund of nuclear insurance premiums received in 2023 related to Evergy Metro's ownership interest in Wolf Creek.

Evergy Metro Depreciation Expense

Evergy Metro's depreciation and amortization expense increased $59.7 million year to date September 30, 2023, compared to the same period in 2022, primarily driven by:

•a $36.2 million increase primarily due to a change in depreciation rates and the rebasing of PISA depreciation deferrals as a result of Evergy Metro's 2022 rate case effective in January 2023; and

•a $23.5 million increase primarily due to capital additions.

Evergy Metro Interest Expense

Evergy Metro's interest expense increased $19.1 million year to date September 30, 2023, compared to the same period in 2022, primarily driven by:

•a $13.7 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates in 2023; and

•a $7.2 million increase due to the issuance of Evergy Metro's $300.0 million of 4.95% Mortgage Bonds in April 2023.

Evergy Metro Income Tax Expense

Evergy Metro's income tax expense decreased $12.9 million year to date September 30, 2023, compared to the same period in 2022, primarily driven by lower pre-tax income in 2023.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Great Plains Energy and KCP&L are exposed to market risks associated with commodity price and supply, interest rates and equity prices. Market risks are handled in accordance with established policies, which may include entering into various derivative transactions. In the ~~normal~~ordinary course of business, ~~Great Plains Energy and KCP&L also face~~Evergy faces risks that are either non-financial or non-quantifiable. Such risks principally include business, legal, ~~compliance,~~ operational and credit risks and are discussed elsewhere in this ~~document~~report as well as in the ~~2016~~Evergy Companies' combined 2022 Form 10-K and therefore are not represented here.

~~Great Plains Energy's and KCP&L's~~Evergy's interim period disclosures about market risk included in quarterly reports on Form 10-Q address material changes, if any, from the most recently filed annual report on Form 10-K. Therefore, these interim period disclosures should be read in ~~connection~~conjunction with Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk included in the ~~2016~~Evergy Companies' combined 2022 Form ~~10-K~~10-K. Evergy's exposure to market risk has not changed materially since December 31, 2022.

Table of ~~each of Great Plains Energy and KCP&L, incorporated herein by reference.~~Contents

ITEM 4. CONTROLS AND PROCEDURES

~~GREAT PLAINS ENERGY~~EVERGY

Disclosure Controls and Procedures

~~Great Plains Energy~~Evergy carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) orand 15d-15(e) under the ~~Securities Exchange Act of 1934, as amended (the~~ Exchange Act)). This evaluation was conducted under the supervision, and with the participation, of ~~Great Plains Energy's~~Evergy's management, including the chief executive officer and chief financial officer, and ~~Great Plains Energy's~~Evergy's disclosure committee. Based upon this evaluation, the chief executive officer and chief financial officer of ~~Great Plains Energy~~Evergy have concluded as of the end of the period covered by this report that the disclosure controls and procedures of ~~Great Plains Energy~~Evergy were effective at a reasonable assurance level.

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Changes in Internal Control Over Financial Reporting

There has been no change in ~~Great Plains Energy's~~Evergy's internal control over financial reporting (as defined in ~~Rule~~Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended September 30, ~~2017~~,2023, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

~~KCP&L~~

EVERGY KANSAS CENTRAL

Disclosure Controls and Procedures

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

Changes in Internal Control Over Financial Reporting

There has been no change in ~~KCP&L's~~Evergy Kansas Central's internal control over financial reporting (as defined in ~~Rule~~Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended September 30, ~~2017~~,2023, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

~~Table~~

EVERGY METRO

Disclosure Controls and Procedures

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

Changes in Internal Control Over Financial Reporting

There has been no change in Evergy Metro'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 September 30, 2023, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Other Proceedings

The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses. For information regarding material lawsuits and proceedings, see Notes ~~2, 6, 13~~4 and 1410 to the consolidated financial statements. Such information is incorporated herein by reference.

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ITEM 1A. RISK FACTORS

Actual results in future periods for ~~Great Plains Energy and KCP&L~~the Evergy Companies could differ materially from historical results and the forward-looking statements contained in this report. The ~~Companies'~~ business of the Evergy Companies is influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond their control. Additional risks and uncertainties not presently known or that ~~the Companies'~~ management currently believes to be immaterial may also adversely affect the Evergy Companies. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in Part I, Item 1A, Risk Factors included in the ~~2016~~2022 Form 10-K for each of ~~Great Plains Energy~~Evergy, Evergy Kansas Central and ~~KCP&L.~~Evergy Metro, as well as Quarterly Reports on Form 10-Q and from time to time in Current Reports on Form 8-K filed by Evergy, Evergy Kansas Central and Evergy Metro. There have been no material changes with regards to those risk factors ~~except~~since the filing of the 2022 Form 10-K for ~~the risk factors below.~~each of Evergy, Evergy Kansas Central and Evergy Metro. This information, as well as the other information included in this report and in the other documents filed with the SEC, should be carefully considered before making an investment in the securities of ~~Great Plains Energy or KCP&L.~~the Evergy Companies. Risk factors of ~~KCP&L~~Evergy Kansas Central and Evergy Metro are also risk factors of ~~Great Plains Energy.~~Evergy.

~~Risks Relating to the Anticipated Merger with Westar:~~

The value of the shares of Holdco common stock that Great Plains Energy's shareholders receive upon the consummation of the anticipated merger may be less than the value of the shares of Great Plains Energy common stock as of the date of the Amended Merger Agreement, the date of this report or the date of the shareholders' meeting.

The exchange ratio for Great Plains Energy in the Amended Merger Agreement is fixed and will not be adjusted in the event of any change in the stock price of Great Plains Energy prior to the anticipated merger. There may be a significant amount of time between the dates when the shareholders of each of Great Plains Energy and Westar vote on the Amended Merger Agreement at the shareholders’ meeting of each company and the date when the anticipated merger is completed. The absolute and relative price of shares of Great Plains Energy common stock may vary significantly between the date of this report, the date of the meetings and the date of the completion of the anticipated merger. These variations may be caused by, among other things, changes in the businesses, operations, results or prospects of Great Plains Energy and Westar, market expectations of the likelihood that the anticipated merger will be completed and the timing of completion, the prospects of post-merger operations, general market and economic conditions and other factors. In addition, it is impossible to predict accurately the market price of the Holdco common stock to be received by Great Plains Energy and Westar shareholders after the completion of the anticipated merger. Accordingly, the price of Great Plains Energy common stock on the date of this report and on the date of the meetings may not be indicative of the price immediately prior to completion of the anticipated merger and the price of Holdco common stock after the anticipated merger is completed.

The ability of Great Plains Energy and Westar to complete the anticipated merger is subject to various closing conditions, including the receipt of approval of Great Plains Energy and Westar shareholders of certain proposals related to the anticipated merger and the receipt of consents and approvals from governmental authorities, which may impose conditions that could adversely affect Great Plains Energy or cause the anticipated merger to be abandoned.

To complete the anticipated merger, Great Plains Energy and Westar shareholders must vote to adopt the Amended Merger Agreement. In addition, (1) each of Great Plains Energy and Westar must also make certain filings with and obtain certain consents and approvals from various governmental and regulatory authorities, (2) the listing on the New York Stock Exchange of the shares of Holdco common stock to be issued to Great Plains Energy and Westar shareholders in the anticipated merger must be approved, (3) there cannot be any material adverse effect with respect to Great Plains Energy, Westar and their respective subsidiaries, (4) there cannot be any laws or judgments,

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whether preliminary, temporary or permanent, which may prevent, make illegal or prohibit the completion of the anticipated merger, (5) subject to certain materiality exceptions, the representations and warranties made by Great Plains Energy and Westar, respectively, must be accurate and the parties must comply with their respective obligations under the Amended Merger Agreement, (6) Great Plains Energy and Westar must receive certain tax opinions, (7) there cannot be any shares of Great Plains Energy preference stock outstanding and (8) Great Plains Energy must have not less than $1.25 billion in cash or cash equivalents on its balance sheet. If the foregoing conditions are not satisfied or waived, one or both of Great Plains Energy and Westar would not be required to complete the merger.

Great Plains Energy and Westar have not yet obtained the regulatory consents and approvals required to complete the anticipated merger. Governmental or regulatory agencies could seek to block or challenge the anticipated merger or could impose restrictions they deem necessary or desirable in the public interest as a condition to approving the anticipated merger. Great Plains Energy and Westar will be unable to complete the anticipated merger until the waiting period under the HSR Act has expired or been terminated and consents and approvals have been received from FERC, the NRC, the MPSC, KCC and FCC (collectively referred to as the “required governmental approvals”). Regulatory authorities may impose certain requirements or obligations as conditions for their approval. The Amended Merger Agreement may require Great Plains Energy and/or Westar to accept conditions from these regulators that could adversely impact the combined company. If the required governmental approvals are not received, or they are not received on terms that satisfy the conditions set forth in the Amended Merger Agreement, then neither Great Plains Energy nor Westar will be obligated to complete the anticipated merger.

Great Plains Energy and Westar believe that the anticipated merger will receive the necessary antitrust clearance. However, there can be no assurance that a challenge to the anticipated merger on antitrust grounds will not be made or, if such a challenge is made, of the result of such challenge.

Additionally, even after the statutory waiting period under the antitrust laws and even after completion of the anticipated merger, governmental authorities could seek to block or challenge the anticipated merger as they deem necessary or desirable in the public interest. In addition, in some jurisdictions, a private party could initiate an action under the antitrust laws challenging or seeking to enjoin the anticipated merger, before or after it is completed. Great Plains Energy or Westar may not prevail and may incur significant costs in defending or settling any action under the antitrust laws.

The shareholders’ meetings at which the Great Plains Energy shareholders and the Westar shareholders will vote on the transactions contemplated by the Amended Merger Agreement may take place before all such approvals have been obtained and, in cases where they have not been obtained, before the terms of any conditions to obtain such approvals that may be imposed are known. As a result, if shareholder approval of the transactions contemplated by the Amended Merger Agreement is obtained at such meetings, Great Plains Energy and Westar may make decisions after the meetings to waive a condition or approve certain actions required to obtain necessary approvals without seeking further shareholder approval. Such actions could have an adverse effect on the combined company.

~~In addition, the Amended Merger Agreement contains other customary closing conditions, which may not be satisfied or waived.~~

~~If Great Plains Energy and Westar are unable to complete the anticipated merger, Great Plains Energy would be subject to a number of risks, including the following:~~

~~Great Plains Energy would not realize the anticipated benefits of the anticipated merger, including, among other things, increased operating efficiencies and future cost savings;~~

the attention of management of Great Plains Energy may have been diverted to the anticipated merger rather than to its own operations and the pursuit of other opportunities that could have been beneficial;

~~the potential loss of key personnel during the pendency of the anticipated merger as employees may experience uncertainty about their future roles with the combined company;~~

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Great Plains Energy will have been subject to certain restrictions on the conduct of their businesses, which may prevent Great Plains Energy from making certain acquisitions or dispositions or pursuing certain business opportunities while the anticipated merger is pending; and

~~the trading price of Great Plains Energy common stock may decline to the extent that the current market price reflects a market assumption that the anticipated merger will be completed.~~

Great Plains Energy can provide no assurance that the various closing conditions will be satisfied and that the required governmental approvals and other approvals will be obtained, or that any required conditions will not materially adversely affect the combined company following the anticipated merger. In addition, we can provide no assurance that these conditions will not result in the abandonment or delay of the anticipated merger. The occurrence of any of these events individually or in combination could have a material adverse effect on the companies’ results of operations and the trading price of Great Plains Energy common stock.

The Amended Merger Agreement contains provisions that limit Great Plains Energy’s ability to pursue alternatives to the anticipated merger, could discourage a potential acquirer of Great Plains Energy from making a favorable alternative transaction proposal and, in certain circumstances, could require Great Plains Energy to pay a termination fee to the other party.

Under the Amended Merger Agreement, Great Plains Energy and Westar each are restricted from entering into alternative transactions. Unless and until the Amended Merger Agreement is terminated, subject to specified exceptions, each party is restricted from soliciting, initiating or knowingly encouraging, inducing or facilitating, or participating in any discussions or negotiations with any person regarding, or cooperating in any way with any person with respect to, any alternative proposal or any inquiry or proposal that would reasonably be expected to lead to an alternative proposal. While either company’s board of directors is permitted to change its recommendation to shareholders prior to the applicable shareholders’ meeting under certain circumstances, namely if such company is in receipt of a superior proposal or an intervening event has occurred, before either company’s board of directors changes its recommendation to shareholders in such circumstances, such company must, if requested by the other company, negotiate with the other company regarding potential amendments to the Amended Merger Agreement. Great Plains Energy and Westar each may terminate the Amended Merger Agreement and enter into an agreement with respect to a superior proposal only if specified conditions have been satisfied, including compliance with the provisions of the Amended Merger Agreement restricting solicitation of alternative proposals and requiring payment of a termination fee in certain circumstances. These provisions could discourage a third party that may have an interest in acquiring all or a significant part of Great Plains Energy from considering or proposing that acquisition, even if such third party were prepared to pay consideration with a higher market value than the market value proposed to be received or realized in the anticipated merger, or might result in a potential acquirer proposing to pay a lower price than it would otherwise have proposed to pay because of the added expense of the termination fee that may become payable in certain circumstances. As a result of these restrictions, Great Plains Energy may not be able to enter into an agreement with respect to a more favorable alternative transaction without incurring potentially significant liability to Westar.

The Amended Merger Agreement provides that in connection with the termination of the Amended Merger Agreement under specified circumstances relating to a failure to obtain regulatory approvals, a final and nonappealable order enjoining the consummation of the anticipated merger in connection with regulatory approvals or failure by Great Plains Energy to comply with its obligations under the Amended Merger Agreement to consummate the closing of the anticipated merger once all of the conditions have been satisfied, Great Plains Energy may be required to pay Westar a termination fee of $190 million. In addition, in the event that the Amended Merger Agreement is terminated by Westar under certain circumstances to enter into a definitive acquisition agreement with respect to a superior proposal or by Great Plains Energy as a result of the Westar Board changing its recommendation of the anticipated merger prior to the Westar shareholder approval having been obtained, Westar may be required to pay Great Plains Energy a termination fee of $190 million. Similarly, in the event that the Amended Merger Agreement is terminated by Great Plains Energy under certain circumstances to enter into a definitive acquisition agreement with respect to a superior proposal or by Westar as a result of Great Plains Energy’s board of directors changing its recommendation of the anticipated merger prior to the Great Plains Energy shareholder approval having been obtained, Great Plains Energy may be required to pay Westar a termination fee of

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$190 million. Additionally, if the Amended Merger Agreement is terminated by either Great Plains Energy or Westar as a result of the Great Plains Energy shareholders not approving the Amended Merger Agreement, Great Plains Energy may be required to pay Westar a termination fee of $80 million.

Great Plains Energy will be subject to various uncertainties while the anticipated merger is pending that may cause disruption and may make it more difficult to maintain relationships with employees, suppliers, or customers.

Uncertainty about the effect of the anticipated merger on employees, suppliers and customers may have an adverse effect on Great Plains Energy. These uncertainties may impair the ability of Great Plains Energy to attract, retain and motivate key personnel until the anticipated merger is completed and for a period of time thereafter, and could cause customers, suppliers and others that deal with Great Plains Energy to seek to change or terminate existing business relationships with Great Plains Energy or not enter into new relationships or transactions.

Employee retention and recruitment may be particularly challenging prior to the completion of the anticipated merger, as employees and prospective employees may experience uncertainty about their future roles with the combined company. If, despite Great Plains Energy’s retention and recruiting efforts, key employees depart or fail to continue employment because of issues relating to the uncertainty and difficulty of integration or a desire not to remain with the combined company, Great Plains Energy’s financial results could be adversely affected. Furthermore, the combined company’s operational and financial performance following the anticipated merger could be adversely affected if it is unable to retain key employees and skilled workers of Great Plains Energy. The loss of the services of key employees and skilled workers and their experience and knowledge regarding Great Plains Energy’s businesses could adversely affect the combined company’s future operating results and the successful ongoing operation of its businesses.

~~Great Plains Energy is subject to contractual restrictions in the Amended Merger Agreement that may hinder its operations pending the anticipated merger.~~

The Amended Merger Agreement restricts Great Plains Energy, without Westar’s consent, from making certain acquisitions and taking other specified actions until the anticipated merger occurs or the Amended Merger Agreement terminates. These restrictions may prevent Great Plains Energy from pursuing otherwise attractive business opportunities and making other changes to its business prior to completion of the anticipated merger or termination of the Amended Merger Agreement.

Failure to complete the anticipated merger, or significant delays in completing the anticipated merger, could negatively affect the trading price of Great Plains Energy common stock and the future business and financial results of Great Plains Energy.

Completion of the anticipated merger is not assured and is subject to risks, including the risks that approval of the anticipated merger by the respective shareholders of Great Plains Energy and Westar or by governmental agencies is not obtained or that other closing conditions are not satisfied. If the anticipated merger is not completed, or if there are significant delays in completing the anticipated merger, it could negatively affect the trading price of Great Plains Energy common stock and its future business and financial results, and Great Plains Energy will be subject to several risks, including the following:

~~Great Plains Energy may be liable for damages to Westar under the terms and conditions of the Amended Merger Agreement;~~

negative reactions from the financial markets, including declines in the price of Great Plains Energy common stock due to the fact that current prices may reflect a market assumption that the anticipated merger will be completed; and

~~having to pay certain significant costs relating to the anticipated merger, including, in certain circumstances, a termination fee.~~

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Failure to successfully combine the businesses of Great Plains Energy and Westar in the expected time frame may adversely affect the future results of the combined company, and, consequently, the value of the Holdco common stock that Great Plains Energy and Westar shareholders receive as the merger consideration.

The success of the anticipated merger will depend, in part, on the ability of the combined company to realize the anticipated benefits and efficiencies from combining the businesses of Great Plains Energy and Westar. To realize these anticipated benefits, the businesses must be successfully combined. If the combined company is not able to achieve these objectives, or is not able to achieve these objectives on a timely basis, the anticipated benefits of the transactions may not be realized fully or at all. In addition, the actual integration may result in additional and unforeseen expenses, which could reduce the anticipated benefits of the anticipated merger. These integration difficulties could result in a decline in the market value of Holdco common stock and, consequently, result in a decline in the market value of the Holdco common stock that Great Plains Energy and Westar shareholders receive as part of the merger consideration and continue to hold following consummation of the anticipated merger.

~~Great Plains Energy will incur significant transaction and other merger-related costs in connection with the anticipated merger.~~

Great Plains Energy has incurred and expects to incur additional costs associated with combining the operations of the two companies, as well as transaction fees and other costs related to the anticipated merger. Additional unanticipated costs may also be incurred in the integration of the businesses of Great Plains Energy and Westar. Any net benefit from the anticipated elimination of duplicative costs, as well as the realization of other efficiencies related to the integration of the businesses, may not be achieved in the near term or at all. Transaction costs could have a material adverse impact on the results of Great Plains Energy, and the failure to achieve the anticipated benefits and efficiencies from the merger, or the incurrence of additional expenses, could have a material adverse impact on the results of operations of the combined company and its ability to pay dividends after closing. In turn, the current market value of Great Plains Energy common stock, or the future market value of Holdco common stock that Great Plains Energy shareholders receive as merger consideration, could be adversely impacted.

~~The market price of Holdco’s common stock after the anticipated merger may be affected by factors different from those affecting the shares of Great Plains Energy or Westar currently.~~

Upon completion of the anticipated merger, the businesses of the combined company will differ from those of Great Plains Energy and Westar prior to the anticipated merger in important respects and, accordingly, the results of operations of the combined company and the market price of Holdco’s shares of common stock following the anticipated merger may be affected by factors different from those currently affecting the independent results of operations of Great Plains Energy and Westar.

Each of Westar and Great Plains Energy and their respective subsidiaries has substantial amounts of indebtedness. Consequently, the combined company will have substantial indebtedness following the anticipated merger. As a result, it may be difficult for the combined company to pay or refinance its debts or take other actions, and the combined company may need to divert its cash flow from operations to debt service payments.

~~The combined company’s debt service obligations with respect to this indebtedness could have an adverse impact on its earnings and cash flows for as long as the indebtedness is outstanding.~~

~~The combined company’s indebtedness could also have important consequences to holders of Holdco common stock. For example, it could:~~

make it more difficult for the combined company to pay or refinance its debts as they become due during adverse economic and industry conditions because any decrease in revenues could cause the combined company to not have sufficient cash flows from operations to make its scheduled debt payments;

require a substantial portion of the combined company’s cash flows from operations to be used for debt service payments, thereby reducing the availability of its cash flow to fund working capital, capital expenditures, acquisitions, dividend payments and other general corporate purposes;

~~result in a downgrade in the rating of the combined company’s indebtedness, which could limit its ability to borrow additional funds or increase the interest rates applicable to its indebtedness; or~~

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~~require that additional terms, conditions or covenants be placed on Holdco.~~

Based upon current levels of operations, Holdco expects to be able to generate sufficient cash on a consolidated basis to make all of the principal and interest payments when such payments are due under the combined company’s existing credit facilities, indentures and other instruments governing its outstanding indebtedness, but there can be no assurance that the combined company will be able to repay or refinance such borrowings and obligations.

~~The anticipated benefits of combining the companies may not be realized.~~

Great Plains Energy entered into the Amended Merger Agreement with the expectation that the anticipated merger would result in various benefits, including, among other things, increased operating efficiencies and future cost savings that cannot be quantified with certainty at this time. Although Great Plains Energy expects to achieve the anticipated benefits of the anticipated merger, achieving them is subject to a number of uncertainties, including:

whether United States federal and state public utility, antitrust and other regulatory authorities whose approval is required to complete the anticipated merger impose conditions on the merger, which may have an adverse effect on the combined company, including its ability to achieve the anticipated benefits of the merger;

~~the ability of the two companies to combine certain of their operations or take advantage of expected growth opportunities;~~

~~general market and economic conditions;~~

~~general competitive factors in the marketplace; and~~

~~higher than expected costs required to achieve the anticipated benefits of the merger.~~

No assurance can be given that these benefits will be achieved or, if achieved, the timing of their achievement. Failure to achieve these anticipated benefits could result in increased costs and decreases in the amount of expected revenues or net income of the combined company.

The anticipated merger may not be accretive to Great Plains Energy's earnings and may cause dilution to Great Plains Energy's earnings per share, which may negatively affect the market price of Holdco common stock that Great Plains Energy's shareholders receive upon the consummation of the anticipated merger.

Great Plains Energy currently anticipates that the anticipated merger will be accretive to Great Plains Energy's forecasted earnings per share on a standalone basis. This expectation is based on preliminary estimates, including with respect to the anticipated timing and amount of common stock repurchases following the closing of the merger, any of which may materially change. Great Plains Energy may encounter additional transaction and integration-related costs than it currently anticipates, may fail to realize all of the benefits anticipated in the merger or may be subject to other factors that affect preliminary estimates or its ability to realize operational efficiencies. Any of these factors could cause a decrease in the combined company's earnings per share or decrease or delay the expected accretive effect of the anticipated merger and contribute to a decrease in the price of Holdco common stock.

The anticipated merger will combine two companies that are currently affected by developments in the electric utility industry, including changes in regulation and increased competition. A failure to adapt to the changing regulatory environment after the anticipated merger could adversely affect the stability of the combined company’s earnings and could result in the erosion of its market positions, revenues and profits.

Because Great Plains Energy, Westar and their respective subsidiaries are regulated in the U.S. at the federal level and in several states, the two companies have been and will continue to be affected by legislative and regulatory developments. After the anticipated merger, the combined company and/or its subsidiaries will be subject in the U.S. to extensive federal regulation as well as to state regulation in Missouri and Kansas. Each of these jurisdictions has implemented, is in the process of implementing or possibly will implement changes to the regulatory and legislative framework applicable to the electric utility industry. These changes could have a material adverse effect on the combined company.

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The costs and burdens associated with complying with these regulatory jurisdictions may have a material adverse effect on the combined company. Moreover, potential legislative changes, regulatory changes or otherwise may create greater risks to the stability of utility earnings generally. If the combined company is not responsive to these changes, it could suffer erosion in market position, revenues and profits as competitors gain access to the service territories of its utility subsidiaries.

~~The price of Holdco common stock that Great Plains Energy's shareholders receive upon the consummation of the anticipated merger may experience volatility.~~

Following the consummation of the anticipated merger, the price of Holdco common stock may be volatile. Some of the factors that could affect the price of Holdco common stock are quarterly increases or decreases in revenue or earnings, changes in revenue or earnings estimates by the investment community, the ability of Holdco to implement its integration strategy and to realize the expected synergies and other benefits from the anticipated merger and speculation in the press or investment community about Holdco's financial condition or results of operations. General market conditions and U.S. economic factors and political events unrelated to the performance of Holdco may also affect its stock price. For these reasons, shareholders should not rely on recent trends in the price of Great Plains Energy common stock to predict the future price of Holdco’s common stock or its financial results.

Any litigation filed against Westar or Great Plains Energy in connection with the merger could result in an injunction preventing the consummation of the merger or may adversely affect the combined company’s business, financial condition or results of operations following the merger.

After the announcement of the Original Merger Agreement, two putative class action lawsuits were filed in the District Court of Shawnee County, Kansas, which lawsuits have since been consolidated. An amended complaint was recently filed in the consolidated lawsuit against Westar, the Westar Board, Great Plains Energy, Holdco and Merger Sub, challenging the proposed merger and alleging breaches of fiduciary duties against the Westar Board, and that Westar, Great Plains Energy, Holdco and Merger Sub aided and abetted such breaches of fiduciary duties. Two putative class action lawsuits were recently filed in the United States District Court for the District of Kansas against Westar, the Westar Board, Great Plains Energy, Holdco and Merger Sub, challenging the proposed merger and alleging, among other things, violations of section 14(a) of the Exchange Act and section 20(a) of the Exchange Act against certain defendants. In addition, a putative class action lawsuit was similarly filed in the United States District Court for the Western District of Missouri, Western Division, against Great Plains Energy and the Great Plains Energy Board, challenging the proposed merger and alleging violations of section 14(a) of the Exchange Act and section 20(a) of the Exchange Act against certain defendants. Lastly, a putative derivative complaint was recently filed in the Shawnee County, Kansas against the Westar Board, Great Plains Energy, Holdco and Merger Sub, with Westar named as a nominal defendant. The complaint challenges the proposed merger and alleges that the Westar Board determined to forego a $380 million break-up fee allegedly payable to Westar associated with the Original Merger Agreement, breached their fiduciary duties to Westar Energy shareholders in connection with the merger, and that Great Plains Energy, Holdco and Merger Sub aided and abetted such breaches of fiduciary duties. The defense or settlement of any lawsuit or claim that remains unresolved at the time the merger closes may adversely affect the combined company’s business, financial condition or results of operation. See Note 2 to the consolidated financial statements for more information.

~~Operational Risks:~~

~~KCP&L is exposed to risks associated with the ownership and operation of a nuclear generating unit, which could result in an adverse effect on the Companies' business and financial results.~~

On March 29, 2017, Westinghouse Electric Company, LLC (Westinghouse) filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code. Wolf Creek contracts with Westinghouse for nuclear fuel fabrications and reactor services. Westinghouse has stated that it intends to continue normal business operations. However, if Westinghouse did not perform under its contracts with Wolf Creek it could result in an extended outage at Wolf Creek. An extended outage of Wolf Creek could have a material adverse effect on Great Plains Energy's and KCP&L's results of operations, financial position and cash flows in the event KCP&L incurs higher replacement power and other costs that are not recovered through rates.

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

~~None.~~Purchases of Equity Securities

The following table provides information regarding purchases by Evergy of its equity securities that are registered pursuant to Section 12 of the Exchange Act during the three months ended September 30, 2023.


Issuer Purchases of Equity Securities
Month	Total Number of Shares (or Units) Purchased(a)	Average Price Paid per Share (or Unit)			Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
July 1 - 31	193		$	58.42	—	—
August 1 - 31	110		60.15		—	—
September 1 - 30	583		53.62		—	—
Total	886		$	55.47	—	—

(a) Represents shares Evergy purchased for withholding taxes related to the vesting of RSUs.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

~~None.~~Available Information

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

Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, the Evergy Companies also use the

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Investor Relations section of their website, http://investors.evergy.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on the Evergy Companies' website is not part of this document.

Securities Trading Plans of Directors and Executive Officers

For the three months ended September 30, 2023, no director or officer has adopted, terminated or modified a Rule 10b5-1 plan or non-Rule 10b5-1 trading arrangement required to be disclosed under Item 408(a) of Regulation S-K.

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ITEM 6. EXHIBITS

Exhibit

Number

Description of Document

Registrant

31.1

~~10.1~~

Amendment dated as of September 8, 2017, to the Receivables Sales Agreement dated as of July 1, 2005, among Kansas City Power & Light Receivables Company, as the Seller, Kansas City Power & Light Company, as the Initial Collection Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the Agent and Victory Receivables Corporation, as the Purchaser. (Exhibit 10.1 to Form 8-K filed on September 11, 2017).

~~KCP&L~~

~~10.2~~

Fourth Amendment dated as of September 8, 2017, to the Receivables Sales Agreement dated as of May 31, 2012, among GMO Receivables Company, as the Seller, KCP&L Greater Missouri Operations Company, as the Initial Collection Agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the Agent and Victory Receivables Corporation, as the Purchaser. (Exhibit 10.2 to Form 8-K filed on September 11, 2017).

~~Great Plains Energy~~

~~31.1~~

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

~~Great Plains Energy~~Evergy

31.2

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

~~Great Plains Energy~~Evergy

31.3

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

~~KCP&L~~Evergy Metro

31.4

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

~~KCP&L~~Evergy Metro

31.5

~~32.1~~Rule 13a-14(a)/15d-14(a) Certification of David A. Campbell.

Evergy Kansas Central

31.6

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

Evergy Kansas Central

32.1

Section 1350 Certifications.

~~Great Plains Energy~~Evergy

32.2

Section 1350 Certifications.

~~KCP&L~~Evergy Metro

32.3

~~101.INS~~

Section 1350 Certifications.

Evergy Kansas Central

101.INS

***

XBRL Instance Document.

~~Great Plains Energy KCP&L~~n/a

101.SCH

Inline XBRL Taxonomy Extension Schema Document.