UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

EXCHANGE ACT OF 1934

For the quarterly period ended ~~June 30, 2022~~March 31, 2023

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

EXCHANGE ACT OF 1934

For the transition period from _______to_______

Exact name of registrant as specified in its charter,

Commission

state of incorporation, address of principal

I.R.S. Employer

File Number

executive offices and telephone number

Identification Number

001-38515

EVERGY, INC.

82-2733395

(a Missouri corporation)

1200 Main Street

Kansas City, Missouri 64105

(816) 556-2200

001-03523

EVERGY KANSAS CENTRAL, INC.

48-0290150

(a Kansas corporation)

818 South Kansas Avenue

Topeka, Kansas 66612

(785) 575-6300

000-51873

EVERGY METRO, INC.

44-0308720

(a Missouri corporation)

1200 Main Street

Kansas City, Missouri 64105

(816) 556-2200

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Evergy, Inc. common stock

EVRG

~~New York~~The Nasdaq Stock ~~Exchange~~Market LLC

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

Evergy, Inc.

Yes

☐

Evergy Kansas Central, Inc.

Yes

☐

Evergy Metro, Inc.

Yes

☐

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

Evergy, Inc.

Yes

☐

Evergy Kansas Central, Inc.

Yes

☐

Evergy Metro, Inc.

Yes

☐

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

Evergy, Inc.

Large Accelerated Filer

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

Evergy Kansas Central, Inc.

Large Accelerated Filer

☐

Accelerated Filer

☐

Non-accelerated Filer

Smaller Reporting Company

☐

Emerging Growth Company

☐

Evergy Metro, Inc.

Large Accelerated Filer

☐

Accelerated Filer

☐

Non-accelerated Filer

Smaller Reporting Company

☐

Emerging Growth Company

☐

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

Evergy, Inc.

☐

Evergy Kansas Central, Inc.

☐

Evergy Metro, Inc.

☐

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

Evergy, Inc.

Yes

☐

Evergy Kansas Central, Inc.

Yes

☐

Evergy Metro, Inc.

Yes

☐

On ~~July 29, 2022,~~April 28, 2023, Evergy, Inc. had ~~229,521,999~~229,680,947 shares of common stock outstanding. On ~~July 29, 2022,~~April 28, 2023, Evergy Metro, Inc. and Evergy Kansas Central, Inc. each had 1one share of common stock outstanding and held by Evergy, Inc.

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

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

This report should be read in its entirety. No one section of the report deals with all aspects of the subject matter. It should be read in conjunction with the consolidated financial statements and related notes and with the management's discussion and analysis of financial condition and results of operations included in the annual report on Form 10-K for the fiscal year ended December 31, ~~2021~~2022 for each of Evergy, Evergy Kansas Central and Evergy Metro ~~(2021~~(2022 Form 10-K).

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

Part I - Financial Information

Item 1.	Financial Statements
	Evergy, Inc.
	Unaudited Consolidated Balance Sheets		8
	Unaudited Consolidated Statements of Comprehensive Income		10
	Unaudited Consolidated Statements of Cash Flows		11
	Unaudited Consolidated Statements of Changes in Equity		12
	Evergy Kansas Central, Inc.
	Unaudited Consolidated Balance Sheets		1413
	Unaudited Consolidated Statements of Income		1615
	Unaudited Consolidated Statements of Cash Flows		1716
	Unaudited Consolidated Statements of Changes in Equity		1817
	Evergy Metro, Inc.
	Unaudited Consolidated Balance Sheets		1918
	Unaudited Consolidated Statements of Comprehensive Income		2120
	Unaudited Consolidated Statements of Cash Flows		2221
	Unaudited Consolidated Statements of Changes in Equity		2322

	Combined Notes to Unaudited Consolidated Financial Statements for Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc.		2423
	Note 1:	Organization and Basis of Presentation	2423
	Note 2:	Revenue	2928
	Note 3:	Receivables	3129
	Note 4:	Rate Matters and Regulation	32
	~~Note 5:~~	~~Goodwill~~	3631


	Note 6:5:	Pension Plans and Post-Retirement Benefits	3733
	Note 7:6:	Short-Term Borrowings and Short-Term Bank Lines of Credit	3934
	Note 7:	Long-Term Debt	36
	Note 8:	~~Long-Term Debt~~Derivative Instruments	4036
	Note 9:	Fair Value Measurements	40
	Note 10:	Commitments and Contingencies	45
	Note 11:	Related Party Transactions and Relationships	4849

	Note 12:	Taxes	4950
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		52
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		6766
Item 4.	Controls and Procedures		6766

Part II - Other Information

Item 1.	Legal Proceedings		6867
Item 1A.	Risk Factors		6867
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		68
Item 3.	Defaults Upon Senior Securities		68
Item 4.	Mine Safety Disclosures		6968
Item 5.	Other Information		69
Item 6.	Exhibits		7071

Signatures			7273

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CAUTIONARY STATEMENTS REGARDING CERTAIN FORWARD-LOOKING INFORMATION

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

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

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

~~Table of Contents~~

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

AVAILABLE INFORMATION

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

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

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GLOSSARY OF TERMS

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


Abbreviation or Acronym						Definition

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


BSER						Best system of emission reduction
CAA						Clean Air Act ~~Amendments~~
CCN						Certificate of ~~1990~~Convenience and Necessity
CCRs						Coal combustion residuals
CO2						Carbon dioxide
COLI						Corporate-owned life insurance
~~COVID-19~~						~~Coronavirus~~
CPP						Clean Power Plan
CSAPR						Cross-State Air Pollution


ELG						Effluent limitations guidelines
EPA						Environmental Protection Agency
EPS						Earnings per common share

ERISA						Employee Retirement Income Security Act of 1974, as amended
ERSP						Earnings Review and Sharing Plan
Evergy						Evergy, Inc. and its consolidated subsidiaries
Evergy Board						Evergy Board of Directors
Evergy Companies						Evergy, Evergy Kansas Central, and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group
Evergy Kansas Central						Evergy Kansas Central, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Kansas South						Evergy Kansas South, Inc., a wholly-owned subsidiary of Evergy Kansas Central
Evergy Metro						Evergy Metro, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries

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

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

kV						Kilovolt

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Abbreviation or Acronym						Definition
MDNR						Missouri Department of Natural Resources
~~MECG~~						~~Midwest Energy Consumers Group~~

MPSC						Public Service Commission of the State of Missouri
MW						Megawatt
MWh						Megawatt hour
NAAQS						National Ambient Air Quality Standards
NAV						Net asset value


OCI						Other comprehensive income
OPC						Office of the Public Counsel

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


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

VIE						Variable interest entity
Wolf Creek						Wolf Creek Generating Station

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


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

					March 31				December 31
		June 30 2022				December 31 2021					2023			2022
ASSETS	ASSETS	(millions, except share amounts)								ASSETS	(millions, except share amounts)
CURRENT ASSETS:	CURRENT ASSETS:									CURRENT ASSETS:
Cash and cash equivalents	Cash and cash equivalents		$	22.4			$	26.2		Cash and cash equivalents		$	28.4		$	25.2

Receivables, net of allowance for credit losses of $27.1 and $32.9, respectively			384.4				221.6
Receivables, net of allowance for credit losses of $22.9 and $31.4, respectively										Receivables, net of allowance for credit losses of $22.9 and $31.4, respectively		207.3			315.3
Accounts receivable pledged as collateral	Accounts receivable pledged as collateral		347.0				319.0			Accounts receivable pledged as collateral		365.0			359.0
Fuel inventory and supplies	Fuel inventory and supplies		636.5				566.7			Fuel inventory and supplies		724.1			672.9
Income taxes receivable	Income taxes receivable		2.1				28.0			Income taxes receivable		—			9.3
Regulatory assets	Regulatory assets		411.5				424.1			Regulatory assets		385.5			368.0
Prepaid expenses	Prepaid expenses		52.3				49.3			Prepaid expenses		41.0			47.8
Other assets	Other assets		65.9				75.4			Other assets		47.0			44.5
Total Current Assets	Total Current Assets		1,922.1				1,710.3			Total Current Assets		1,798.3			1,842.0
PROPERTY, PLANT AND EQUIPMENT, NET	PROPERTY, PLANT AND EQUIPMENT, NET		21,468.6				21,002.6			PROPERTY, PLANT AND EQUIPMENT, NET		22,329.0			22,136.5
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET	PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		144.3				147.8			PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		138.9			140.7
OTHER ASSETS:	OTHER ASSETS:									OTHER ASSETS:
Regulatory assets	Regulatory assets		2,056.8				1,991.1			Regulatory assets		1,840.0			1,846.3
Nuclear decommissioning trust fund	Nuclear decommissioning trust fund		687.6				768.7			Nuclear decommissioning trust fund		689.5			653.3
Goodwill	Goodwill		2,336.6				2,336.6			Goodwill		2,336.6			2,336.6
Other	Other		572.8				563.4			Other		553.6			534.5
Total Other Assets	Total Other Assets		5,653.8				5,659.8			Total Other Assets		5,419.7			5,370.7
TOTAL ASSETS	TOTAL ASSETS		$	29,188.8			$	28,520.5		TOTAL ASSETS		$	29,685.9		$	29,489.9

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

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

					March 31				December 31
		June 30 2022				December 31 2021					2023			2022
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY	(millions, except share amounts)								LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:	CURRENT LIABILITIES:									CURRENT LIABILITIES:
Current maturities of long-term debt	Current maturities of long-term debt		$	349.5			$	389.3		Current maturities of long-term debt		$	139.4		$	439.1

Notes payable and commercial paper	Notes payable and commercial paper		2,028.5				1,159.3			Notes payable and commercial paper		1,748.8			1,332.3
Collateralized note payable	Collateralized note payable		347.0				319.0			Collateralized note payable		365.0			359.0
Accounts payable	Accounts payable		474.3				639.7			Accounts payable		366.4			600.8

Accrued taxes	Accrued taxes		212.2				150.4			Accrued taxes		261.5			163.0
Accrued interest	Accrued interest		92.2				118.8			Accrued interest		122.1			124.3
Regulatory liabilities	Regulatory liabilities		73.8				70.7			Regulatory liabilities		193.9			155.4
Asset retirement obligations	Asset retirement obligations		18.5				19.5			Asset retirement obligations		39.7			40.4
Accrued compensation and benefits	Accrued compensation and benefits		73.9				51.6			Accrued compensation and benefits		52.7			81.1
Other	Other		189.8				184.6			Other		176.9			198.4
Total Current Liabilities	Total Current Liabilities		3,859.7				3,102.9			Total Current Liabilities		3,466.4			3,493.8
LONG-TERM LIABILITIES:	LONG-TERM LIABILITIES:									LONG-TERM LIABILITIES:
Long-term debt, net	Long-term debt, net		9,196.7				9,297.9			Long-term debt, net		10,097.2			9,905.7
Deferred income taxes	Deferred income taxes		1,913.5				1,861.9			Deferred income taxes		2,027.6			1,996.6
Unamortized investment tax credits	Unamortized investment tax credits		180.5				181.4			Unamortized investment tax credits		172.8			174.6
Regulatory liabilities	Regulatory liabilities		2,578.0				2,705.0			Regulatory liabilities		2,523.7			2,566.8
Pension and post-retirement liability	Pension and post-retirement liability		886.3				879.1			Pension and post-retirement liability		481.1			458.4
Asset retirement obligations	Asset retirement obligations		959.8				940.6			Asset retirement obligations		1,124.1			1,112.8
Other	Other		303.5				310.0			Other		291.3			287.9
Total Long-Term Liabilities	Total Long-Term Liabilities		16,018.3				16,175.9			Total Long-Term Liabilities		16,717.8			16,502.8
Commitments and Contingencies (Note 10)	Commitments and Contingencies (Note 10)		0				0			Commitments and Contingencies (Note 10)
EQUITY:	EQUITY:									EQUITY:
Evergy, Inc. Shareholders' Equity:	Evergy, Inc. Shareholders' Equity:									Evergy, Inc. Shareholders' Equity:
Common stock - 600,000,000 shares authorized, without par value 229,515,301 and 229,299,900 shares issued, stated value			7,212.5				7,205.5
Common stock - 600,000,000 shares authorized, without par value 229,676,699 and 229,546,105 shares issued, stated value										Common stock - 600,000,000 shares authorized, without par value 229,676,699 and 229,546,105 shares issued, stated value		7,222.2			7,219.7
Retained earnings	Retained earnings		2,136.0				2,082.9			Retained earnings		2,300.0			2,298.5
Accumulated other comprehensive loss	Accumulated other comprehensive loss		(41.2)				(44.0)			Accumulated other comprehensive loss		(33.2)			(34.5)
Total Evergy, Inc. Shareholders' Equity	Total Evergy, Inc. Shareholders' Equity		9,307.3				9,244.4			Total Evergy, Inc. Shareholders' Equity		9,489.0			9,483.7
Noncontrolling Interests	Noncontrolling Interests		3.5				(2.7)			Noncontrolling Interests		12.7			9.6
Total Equity	Total Equity		9,310.8				9,241.7			Total Equity		9,501.7			9,493.3
TOTAL LIABILITIES AND EQUITY	TOTAL LIABILITIES AND EQUITY		$	29,188.8			$	28,520.5		TOTAL LIABILITIES AND EQUITY		$	29,685.9		$	29,489.9

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

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EVERGY, INC.	EVERGY, INC.									EVERGY, INC.
Consolidated Statements of Comprehensive Income	Consolidated Statements of Comprehensive Income									Consolidated Statements of Comprehensive Income
(Unaudited)	(Unaudited)									(Unaudited)
		Three Months Ended June 30				Year to Date June 30

		2022		2021		2022		2021
Three Months Ended March 31											Three Months Ended March 31		2023		2022
		(millions, except per share amounts)										(millions, except per share amounts)
OPERATING REVENUES	OPERATING REVENUES	$	1,446.5	$	1,236.2	$	2,670.4	$	2,848.1		OPERATING REVENUES		$	1,296.8	$	1,223.9
OPERATING EXPENSES:	OPERATING EXPENSES:										OPERATING EXPENSES:
Fuel and purchased power	Fuel and purchased power	414.3		284.1		723.3		919.2			Fuel and purchased power		354.2		309.0
SPP network transmission costs	SPP network transmission costs	81.5		73.8		160.2		143.2			SPP network transmission costs		81.2		78.7
Operating and maintenance	Operating and maintenance	282.8		259.9		535.0		535.4			Operating and maintenance		216.3		252.2
Depreciation and amortization	Depreciation and amortization	232.1		225.2		461.1		444.5			Depreciation and amortization		263.4		229.0
Taxes other than income tax	Taxes other than income tax	100.3		97.9		202.2		192.8			Taxes other than income tax		102.4		101.9

Total Operating Expenses	Total Operating Expenses	1,111.0		940.9		2,081.8		2,235.1			Total Operating Expenses		1,017.5		970.8
INCOME FROM OPERATIONS	INCOME FROM OPERATIONS	335.5		295.3		588.6		613.0			INCOME FROM OPERATIONS		279.3		253.1
OTHER INCOME (EXPENSE):	OTHER INCOME (EXPENSE):										OTHER INCOME (EXPENSE):
Investment earnings (loss)	Investment earnings (loss)	(0.9)		8.4		(10.5)		10.0			Investment earnings (loss)		9.1		(9.6)
Other income	Other income	5.9		14.7		14.1		25.9			Other income		12.2		8.2
Other expense	Other expense	(22.9)		(18.8)		(47.8)		(39.7)			Other expense		(21.3)		(24.9)
Total Other Income (Expense), Net		(17.9)		4.3		(44.2)		(3.8)
Total Other Expense, Net											Total Other Expense, Net		—		(26.3)
Interest expense	Interest expense	99.3		93.8		191.1		187.8			Interest expense		123.1		91.8
INCOME BEFORE INCOME TAXES	INCOME BEFORE INCOME TAXES	218.3		205.8		353.3		421.4			INCOME BEFORE INCOME TAXES		156.2		135.0
Income tax expense	Income tax expense	22.1		19.6		33.6		42.6			Income tax expense		12.4		11.5
Equity in earnings of equity method investees, net of income taxes	Equity in earnings of equity method investees, net of income taxes	1.4		2.1		3.5		4.1			Equity in earnings of equity method investees, net of income taxes		1.9		2.1
NET INCOME	NET INCOME	197.6		188.3		323.2		382.9			NET INCOME		145.7		125.6
Less: Net income attributable to noncontrolling interests	Less: Net income attributable to noncontrolling interests	3.1		3.0		6.2		6.0			Less: Net income attributable to noncontrolling interests		3.1		3.1
NET INCOME ATTRIBUTABLE TO EVERGY, INC.	NET INCOME ATTRIBUTABLE TO EVERGY, INC.	$	194.5	$	185.3	$	317.0	$	376.9		NET INCOME ATTRIBUTABLE TO EVERGY, INC.		$	142.6	$	122.5
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC. (see Note 1)	BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC. (see Note 1)										BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC. (see Note 1)
Basic earnings per common share	Basic earnings per common share	$	0.85	$	0.81	$	1.38	$	1.65		Basic earnings per common share		$	0.62	$	0.53
Diluted earnings per common share	Diluted earnings per common share	$	0.84	$	0.81	$	1.38	$	1.65		Diluted earnings per common share		$	0.62	$	0.53
AVERAGE COMMON SHARES OUTSTANDING	AVERAGE COMMON SHARES OUTSTANDING										AVERAGE COMMON SHARES OUTSTANDING
Basic	Basic	229.9		229.3		229.8		228.3			Basic		230.0		229.8
Diluted	Diluted	230.4		229.7		230.4		228.7			Diluted		230.3		230.2
COMPREHENSIVE INCOME	COMPREHENSIVE INCOME										COMPREHENSIVE INCOME
NET INCOME	NET INCOME	$	197.6	$	188.3	$	323.2	$	382.9		NET INCOME		$	145.7	$	125.6
Derivative hedging activity	Derivative hedging activity										Derivative hedging activity

Reclassification to expenses, net of tax	Reclassification to expenses, net of tax	1.3		1.4		2.7		2.8			Reclassification to expenses, net of tax		1.3		1.4
Derivative hedging activity, net of tax	Derivative hedging activity, net of tax	1.3		1.4		2.7		2.8			Derivative hedging activity, net of tax		1.3		1.4
Defined benefit pension plans

Amortization of net losses included in net periodic benefit costs, net of tax		0.1		—		0.1		—
Change in unrecognized pension expense, net of tax		0.1		—		0.1		—

Total other comprehensive income	Total other comprehensive income	1.4		1.4		2.8		2.8			Total other comprehensive income		1.3		1.4
COMPREHENSIVE INCOME	COMPREHENSIVE INCOME	199.0		189.7		326.0		385.7			COMPREHENSIVE INCOME		147.0		127.0
Less: Comprehensive income attributable to noncontrolling interest	Less: Comprehensive income attributable to noncontrolling interest	3.1		3.0		6.2		6.0			Less: Comprehensive income attributable to noncontrolling interest		3.1		3.1
COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC.	COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC.	$	195.9	$	186.7	$	319.8	$	379.7		COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC.		$	143.9	$	123.9

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

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

Year to Date June 30		2022		2021
Three Months Ended March 31								Three Months Ended March 31	2023		2022
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)				CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	Net income	$	323.2	$	382.9			Net income	$	145.7	$	125.6
Adjustments to reconcile income to net cash from operating activities:	Adjustments to reconcile income to net cash from operating activities:							Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	Depreciation and amortization	461.1		444.5				Depreciation and amortization	263.4		229.0
Amortization of nuclear fuel	Amortization of nuclear fuel	31.8		19.8				Amortization of nuclear fuel	15.1		15.8
Amortization of deferred refueling outage	Amortization of deferred refueling outage	12.5		12.6				Amortization of deferred refueling outage	4.6		6.3
Amortization of corporate-owned life insurance	Amortization of corporate-owned life insurance	11.7		11.2				Amortization of corporate-owned life insurance	7.0		6.7
Non-cash compensation	Non-cash compensation	11.0		7.3				Non-cash compensation	4.8		4.5
Net deferred income taxes and credits	Net deferred income taxes and credits	6.9		37.1				Net deferred income taxes and credits	2.7		0.4
Allowance for equity funds used during construction	Allowance for equity funds used during construction	(12.8)		(14.3)				Allowance for equity funds used during construction	(2.7)		(7.4)
Payments for asset retirement obligations	Payments for asset retirement obligations	(3.9)		(4.4)				Payments for asset retirement obligations	(2.6)		(1.3)
Equity in earnings of equity method investees, net of income taxes	Equity in earnings of equity method investees, net of income taxes	(3.5)		(4.1)				Equity in earnings of equity method investees, net of income taxes	(1.9)		(2.1)
Income from corporate-owned life insurance	Income from corporate-owned life insurance	(0.9)		(1.2)				Income from corporate-owned life insurance	(8.6)		(0.7)

Other	Other	0.6		0.5				Other	0.3		0.3
Changes in working capital items:	Changes in working capital items:							Changes in working capital items:
Accounts receivable	Accounts receivable	(131.9)		(102.9)				Accounts receivable	93.5		29.8
Accounts receivable pledged as collateral	Accounts receivable pledged as collateral	(28.0)		34.0				Accounts receivable pledged as collateral	(6.0)		(19.0)
Fuel inventory and supplies	Fuel inventory and supplies	(69.5)		(33.3)				Fuel inventory and supplies	(51.0)		(45.8)
Prepaid expenses and other current assets	Prepaid expenses and other current assets	(27.8)		(88.0)				Prepaid expenses and other current assets	0.3		(48.0)
Accounts payable	Accounts payable	(75.9)		(232.3)				Accounts payable	(197.8)		(157.2)
Accrued taxes	Accrued taxes	87.7		62.4				Accrued taxes	107.8		108.7
Other current liabilities	Other current liabilities	(61.6)		(28.2)				Other current liabilities	(3.2)		(13.7)
Changes in other assets	Changes in other assets	35.1		(322.1)				Changes in other assets	0.4		13.9
Changes in other liabilities	Changes in other liabilities	23.1		43.1				Changes in other liabilities	(8.9)		19.3
Cash Flows from Operating Activities	Cash Flows from Operating Activities	588.9		224.6				Cash Flows from Operating Activities	362.9		265.1
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:	CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:							CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	Additions to property, plant and equipment	(1,116.4)		(891.1)				Additions to property, plant and equipment	(527.7)		(524.7)
Purchase of securities - trusts	Purchase of securities - trusts	(19.4)		(53.0)				Purchase of securities - trusts	(11.0)		(12.6)
Sale of securities - trusts	Sale of securities - trusts	19.4		44.9				Sale of securities - trusts	7.6		8.7
Investment in corporate-owned life insurance	Investment in corporate-owned life insurance	(15.5)		(13.5)				Investment in corporate-owned life insurance	(3.8)		(2.9)
Proceeds from investment in corporate-owned life insurance	Proceeds from investment in corporate-owned life insurance	2.9		1.5				Proceeds from investment in corporate-owned life insurance	42.1		1.1

Other investing activities	Other investing activities	0.1		(7.0)				Other investing activities	(4.1)		(0.9)
Cash Flows used in Investing Activities	Cash Flows used in Investing Activities	(1,128.9)		(918.2)				Cash Flows used in Investing Activities	(496.9)		(531.3)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:	CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:							CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	Short-term debt, net	369.1		598.0				Short-term debt, net	214.2		(267.1)
Proceeds from term loan facility		500.0		—
Proceeds from Term Loan Facility								Proceeds from Term Loan Facility	—		500.0

Collateralized short-term borrowings, net	Collateralized short-term borrowings, net	28.0		(34.0)				Collateralized short-term borrowings, net	6.0		19.0
Issuance of common stock		—		112.5

Proceeds from long-term debt	Proceeds from long-term debt	246.9		497.7				Proceeds from long-term debt	393.7		247.4

Retirements of long-term debt	Retirements of long-term debt	(387.5)		(351.1)				Retirements of long-term debt	(300.0)		(100.0)
Retirements of long-term debt of variable interest entities		—		(18.8)

Borrowings against cash surrender value of corporate-owned life insurance	Borrowings against cash surrender value of corporate-owned life insurance	51.1		51.8				Borrowings against cash surrender value of corporate-owned life insurance	0.6		0.6
Repayment of borrowings against cash surrender value of corporate-owned life insurance	Repayment of borrowings against cash surrender value of corporate-owned life insurance	(1.2)		(0.1)				Repayment of borrowings against cash surrender value of corporate-owned life insurance	(32.5)		—
Cash dividends paid	Cash dividends paid	(262.7)		(244.0)				Cash dividends paid	(140.7)		(131.3)

Other financing activities	Other financing activities	(7.5)		(4.9)				Other financing activities	(4.1)		(6.4)
Cash Flows from Financing Activities	Cash Flows from Financing Activities	536.2		607.1				Cash Flows from Financing Activities	137.2		262.2
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(3.8)		(86.5)				NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	3.2		(4.0)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:	CASH, CASH EQUIVALENTS AND RESTRICTED CASH:							CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	Beginning of period	26.2		144.9				Beginning of period	25.2		26.2
End of period	End of period	$	22.4	$	58.4			End of period	$	28.4	$	22.2

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

Table of Contents

EVERGY, INC.
Consolidated Statements of Changes in Equity
(Unaudited)
Evergy, Inc. Shareholders
Common stock shares Common stock Retained earnings AOCI Non-controlling interests Total equity
(millions, except share amounts)
Balance as of December 31, 2020 226,836,670 $ 7,080.0 $ 1,702.8 $ (49.4) $ (14.9) $ 8,718.5
Net income — — 191.6 — 3.0 194.6
Issuance of stock compensation and reinvested dividends, net of tax withholding 104,896 (1.1) — — — (1.1)
Issuance of restricted common stock 54,054 2.9 — — — 2.9
Dividends declared on common stock ($0.535 per share) — — (121.4) — — (121.4)
Dividend equivalents declared — — (0.2) — — (0.2)
Stock compensation expense — 2.6 — — — 2.6
Unearned compensation
Issuance of restricted common stock — (2.9) — — — (2.9)
Compensation expense recognized — 0.4 — — — 0.4
Derivative hedging activity, net of tax — — — 1.4 — 1.4
Other — (0.4) — — — (0.4)
Balance as of March 31, 2021 226,995,620 7,081.5 1,772.8 (48.0) (11.9) 8,794.4
Net income — — 185.3 — 3.0 188.3
Issuance of stock, net of issuance costs 2,269,447 112.5 — — — 112.5
Issuance of stock compensation and reinvested dividends, net of tax withholding 31,147 (0.6) — — — (0.6)
Dividends declared on common stock ($0.535 per share) — — (122.6) — — (122.6)
Dividend equivalents declared — — (0.5) — — (0.5)
Stock compensation expense — 3.8 — — — 3.8
Unearned compensation
Compensation expense recognized — 0.5 — — — 0.5
Derivative hedging activity, net of tax — — — 1.4 — 1.4
Other — (0.1) — — — (0.1)
Balance as of June 30, 2021 229,296,214 $ 7,197.6 $ 1,835.0 $ (46.6) $ (8.9) $ 8,977.1

~~Table of Contents~~

EVERGY, INC.
Consolidated Statements of Changes in Equity
(Unaudited)
Evergy, Inc. Shareholders
Common stock shares Common stock Retained earnings AOCI Non-controlling interests Total equity
(millions, except share amounts)
Balance as of December 31, 2021 229,299,900 $ 7,205.5 $ 2,082.9 $ (44.0) $ (2.7) $ 9,241.7
Net income — — 122.5 — 3.1 125.6
Issuance of stock compensation and reinvested dividends, net of tax withholding 176,658 (4.0) — — — (4.0)
Dividends declared on common stock ($0.5725 per share) — — (131.3) — — (131.3)
Dividend equivalents declared — — (0.8) — — (0.8)
Stock compensation expense — 4.3 — — — 4.3
Unearned compensation
Compensation expense recognized — 0.2 — — — 0.2
Derivative hedging activity, net of tax — — — 1.4 — 1.4
Other — 0.4 — — — 0.4
Balance as of March 31, 2022 229,476,558 7,206.4 2,073.3 (42.6) 0.4 9,237.5
Net income — — 194.5 — 3.1 197.6
Issuance of stock compensation and reinvested dividends, net of tax withholding 38,743 (0.3) — — — (0.3)
Dividends declared on common stock ($0.5725 per share) — — (131.4) — — (131.4)
Dividend equivalents declared — — (0.4) — — (0.4)
Stock compensation expense — 6.3 — — — 6.3
Unearned compensation
Compensation expense recognized — 0.2 — — — 0.2
Derivative hedging activity, net of tax — — — 1.3 — 1.3
Change in unrecognized pension expense, net of tax — — — 0.1 — 0.1
Other — (0.1) — — — (0.1)
Balance as of June 30, 2022 229,515,301 $ 7,212.5 $ 2,136.0 $ (41.2) $ 3.5 $ 9,310.8


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

	Evergy, Inc. Shareholders
	Common stock shares	Common stock		Retained earnings		AOCI		Non-controlling interests		Total equity
	(millions, except share amounts)
Balance as of December 31, 2021	229,299,900	$	7,205.5	$	2,082.9	$	(44.0)	$	(2.7)	$	9,241.7
Net income	—	—		122.5		—		3.1		125.6

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

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

Compensation expense recognized	—	0.2		—		—		—		0.2



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










Balance as of December 31, 2022	229,546,105	$	7,219.7	$	2,298.5	$	(34.5)	$	9.6	$	9,493.3
Net income	—	—		142.6		—		3.1		145.7

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

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

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

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

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

					March 31				December 31
		June 30 2022				December 31 2021					2023			2022
ASSETS	ASSETS	(millions, except share amounts)								ASSETS	(millions, except share amounts)
CURRENT ASSETS:	CURRENT ASSETS:									CURRENT ASSETS:
Cash and cash equivalents	Cash and cash equivalents		$	9.1			$	3.1		Cash and cash equivalents		$	9.4		$	8.7
Receivables, net of allowance for credit losses of $10.7 and $13.0, respectively			290.8				201.6
Receivables, net of allowance for credit losses of $12.1 and $16.9, respectively										Receivables, net of allowance for credit losses of $12.1 and $16.9, respectively		153.3			249.4
Related party receivables	Related party receivables		8.5				21.2			Related party receivables		6.5			7.9
Accounts receivable pledged as collateral	Accounts receivable pledged as collateral		168.0				153.0			Accounts receivable pledged as collateral		185.0			185.0
Fuel inventory and supplies	Fuel inventory and supplies		333.7				283.2			Fuel inventory and supplies		369.8			349.5
Income taxes receivable			—				9.6

Regulatory assets	Regulatory assets		212.0				257.3			Regulatory assets		135.3			121.9
Prepaid expenses	Prepaid expenses		24.0				19.4			Prepaid expenses		17.9			18.7
Other assets	Other assets		39.8				21.6			Other assets		31.5			28.8
Total Current Assets	Total Current Assets		1,085.9				970.0			Total Current Assets		908.7			969.9
PROPERTY, PLANT AND EQUIPMENT, NET	PROPERTY, PLANT AND EQUIPMENT, NET		10,726.8				10,548.9			PROPERTY, PLANT AND EQUIPMENT, NET		11,181.3			11,080.8
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET	PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		144.3				147.8			PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		138.9			140.7
OTHER ASSETS:	OTHER ASSETS:									OTHER ASSETS:
Regulatory assets	Regulatory assets		765.2				753.6			Regulatory assets		589.3			590.0
Nuclear decommissioning trust fund	Nuclear decommissioning trust fund		334.5				368.4			Nuclear decommissioning trust fund		335.1			318.8
Other	Other		282.5				286.9			Other		281.0			268.1
Total Other Assets	Total Other Assets		1,382.2				1,408.9			Total Other Assets		1,205.4			1,176.9
TOTAL ASSETS	TOTAL ASSETS		$	13,339.2			$	13,075.6		TOTAL ASSETS		$	13,434.3		$	13,368.3

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

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

					March 31				December 31
		June 30 2022				December 31 2021					2023			2022
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY	(millions, except share amounts)								LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:	CURRENT LIABILITIES:									CURRENT LIABILITIES:
Current maturities of long-term debt	Current maturities of long-term debt		$	50.0			$	—		Current maturities of long-term debt		$	50.0		$	50.0

Notes payable and commercial paper	Notes payable and commercial paper		728.5				406.0			Notes payable and commercial paper		323.0			772.1
Collateralized note payable	Collateralized note payable		168.0				153.0			Collateralized note payable		185.0			185.0
Accounts payable	Accounts payable		234.7				232.2			Accounts payable		177.9			247.3
Related party payables	Related party payables		28.4				27.5			Related party payables		35.3			28.9

Accrued taxes	Accrued taxes		130.8				106.1			Accrued taxes		196.6			125.5
Accrued interest	Accrued interest		44.9				71.5			Accrued interest		79.0			72.6
Regulatory liabilities	Regulatory liabilities		13.9				12.8			Regulatory liabilities		99.7			72.1
Asset retirement obligations	Asset retirement obligations		7.3				7.3			Asset retirement obligations		20.7			21.3
Accrued compensation and benefits	Accrued compensation and benefits		40.1				13.8			Accrued compensation and benefits		27.9			39.4
Other	Other		130.9				126.3			Other		102.6			135.0
Total Current Liabilities	Total Current Liabilities		1,577.5				1,156.5			Total Current Liabilities		1,297.7			1,749.2
LONG-TERM LIABILITIES:	LONG-TERM LIABILITIES:									LONG-TERM LIABILITIES:
Long-term debt, net	Long-term debt, net		3,885.6				3,934.2			Long-term debt, net		4,281.4			3,886.9
Deferred income taxes	Deferred income taxes		855.0				867.9			Deferred income taxes		841.6			844.5
Unamortized investment tax credits	Unamortized investment tax credits		62.1				61.7			Unamortized investment tax credits		56.3			57.3
Regulatory liabilities	Regulatory liabilities		1,417.1				1,469.4			Regulatory liabilities		1,376.0			1,368.9
Pension and post-retirement liability	Pension and post-retirement liability		431.1				435.6			Pension and post-retirement liability		246.5			244.7
Asset retirement obligations	Asset retirement obligations		447.3				436.6			Asset retirement obligations		550.0			543.8
Other	Other		181.3				172.2			Other		171.0			165.6
Total Long-Term Liabilities	Total Long-Term Liabilities		7,279.5				7,377.6			Total Long-Term Liabilities		7,522.8			7,111.7
Commitments and Contingencies (Note 10)	Commitments and Contingencies (Note 10)		0				0			Commitments and Contingencies (Note 10)
EQUITY:	EQUITY:									EQUITY:
Evergy Kansas Central, Inc. Shareholder's Equity:	Evergy Kansas Central, Inc. Shareholder's Equity:									Evergy Kansas Central, Inc. Shareholder's Equity:
Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued	Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued		2,737.6				2,737.6			Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued		2,737.6			2,737.6
Retained earnings	Retained earnings		1,741.1				1,806.6			Retained earnings		1,863.5			1,760.2
Total Evergy Kansas Central, Inc. Shareholder's Equity	Total Evergy Kansas Central, Inc. Shareholder's Equity		4,478.7				4,544.2			Total Evergy Kansas Central, Inc. Shareholder's Equity		4,601.1			4,497.8
Noncontrolling Interests	Noncontrolling Interests		3.5				(2.7)			Noncontrolling Interests		12.7			9.6
Total Equity	Total Equity		4,482.2				4,541.5			Total Equity		4,613.8			4,507.4
TOTAL LIABILITIES AND EQUITY	TOTAL LIABILITIES AND EQUITY		$	13,339.2			$	13,075.6		TOTAL LIABILITIES AND EQUITY		$	13,434.3		$	13,368.3

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

Table of Contents


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


Three Months Ended March 31	2023		2022
	(millions)
OPERATING REVENUES	$	678.6	$	613.9
OPERATING EXPENSES:
Fuel and purchased power	144.4		108.1
SPP network transmission costs	81.2		78.7
Operating and maintenance	107.6		125.7
Depreciation and amortization	124.1		119.7
Taxes other than income tax	55.7		54.5
Total Operating Expenses	513.0		486.7
INCOME FROM OPERATIONS	165.6		127.2
OTHER INCOME (EXPENSE):
Investment earnings (loss)	1.3		(1.5)
Other income	9.2		3.1
Other expense	(9.9)		(10.2)
Total Other Income (Expense), Net	0.6		(8.6)
Interest expense	52.4		40.9
INCOME BEFORE INCOME TAXES	113.8		77.7
Income tax expense	8.4		3.6
Equity in earnings of equity method investees, net of income taxes	1.0		1.0
NET INCOME	106.4		75.1
Less: Net income attributable to noncontrolling interests	3.1		3.1
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC.	$	103.3	$	72.0

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

Table of Contents

EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Income
(Unaudited)
Three Months Ended
June 30 Year to Date
June 30
2022 2021 2022 2021
(millions)
OPERATING REVENUES $ 724.0 $ 598.5 $ 1,337.9 $ 1,499.6
OPERATING EXPENSES:
Fuel and purchased power 179.0 105.7 287.1 400.5
SPP network transmission costs 81.5 73.8 160.2 143.2
Operating and maintenance 141.5 130.2 267.2 261.0
Depreciation and amortization 120.6 116.3 240.3 231.8
Taxes other than income tax 53.9 52.0 108.4 102.3
Total Operating Expenses 576.5 478.0 1,063.2 1,138.8
INCOME FROM OPERATIONS 147.5 120.5 274.7 360.8
OTHER INCOME (EXPENSE):
Investment earnings (loss) (2.4) 1.0 (3.9) 0.5
Other income 2.7 11.1 5.8 17.6
Other expense (9.1) (7.7) (19.3) (16.9)
Total Other Income (Expense), Net (8.8) 4.4 (17.4) 1.2
Interest expense 44.7 39.8 85.6 80.1
INCOME BEFORE INCOME TAXES 94.0 85.1 171.7 281.9
Income tax expense 4.4 6.5 8.0 23.1
Equity in earnings of equity method investees, net of income taxes 1.0 1.0 2.0 1.9
NET INCOME 90.6 79.6 165.7 260.7
Less: Net income attributable to noncontrolling interests 3.1 3.0 6.2 6.0
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC. $ 87.5 $ 76.6 $ 159.5 $ 254.7

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

~~Table of Contents~~


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

Year to Date June 30		2022		2021
Three Months Ended March 31								Three Months Ended March 31	2023		2022
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)				CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	Net income	$	165.7	$	260.7			Net income	$	106.4	$	75.1
Adjustments to reconcile income to net cash from operating activities:	Adjustments to reconcile income to net cash from operating activities:							Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	Depreciation and amortization	240.3		231.8				Depreciation and amortization	124.1		119.7
Amortization of nuclear fuel	Amortization of nuclear fuel	15.9		9.8				Amortization of nuclear fuel	7.5		7.9
Amortization of deferred refueling outage	Amortization of deferred refueling outage	6.3		6.3				Amortization of deferred refueling outage	2.3		3.1
Amortization of corporate-owned life insurance	Amortization of corporate-owned life insurance	11.7		11.2				Amortization of corporate-owned life insurance	7.0		6.7

Net deferred income taxes and credits	Net deferred income taxes and credits	(27.9)		2.1				Net deferred income taxes and credits	(11.6)		(4.5)
Allowance for equity funds used during construction	Allowance for equity funds used during construction	(5.0)		(8.7)				Allowance for equity funds used during construction	(0.5)		(2.7)
Payments for asset retirement obligations	Payments for asset retirement obligations	(1.8)		—				Payments for asset retirement obligations	(2.0)		(0.6)
Equity in earnings of equity method investees, net of income taxes	Equity in earnings of equity method investees, net of income taxes	(2.0)		(1.9)				Equity in earnings of equity method investees, net of income taxes	(1.0)		(1.0)
Income from corporate-owned life insurance	Income from corporate-owned life insurance	(0.9)		(1.2)				Income from corporate-owned life insurance	(8.6)		(0.7)
Other	Other	(2.7)		(2.7)				Other	(1.4)		(1.4)
Changes in working capital items:	Changes in working capital items:							Changes in working capital items:
Accounts receivable	Accounts receivable	(56.1)		(58.6)				Accounts receivable	83.0		28.5
Accounts receivable pledged as collateral	Accounts receivable pledged as collateral	(15.0)		24.0				Accounts receivable pledged as collateral	—		(12.0)
Fuel inventory and supplies	Fuel inventory and supplies	(50.2)		(4.4)				Fuel inventory and supplies	(20.1)		(30.1)
Prepaid expenses and other current assets	Prepaid expenses and other current assets	(10.2)		(63.3)				Prepaid expenses and other current assets	(2.1)		(44.8)
Accounts payable	Accounts payable	30.5		(90.6)				Accounts payable	(42.1)		(25.9)
Accrued taxes	Accrued taxes	34.3		(12.0)				Accrued taxes	71.1		59.9
Other current liabilities	Other current liabilities	(44.1)		(40.6)				Other current liabilities	0.2		0.1
Changes in other assets	Changes in other assets	10.4		(83.8)				Changes in other assets	0.3		(4.4)
Changes in other liabilities	Changes in other liabilities	15.5		(18.2)				Changes in other liabilities	5.0		10.0
Cash Flows from Operating Activities	Cash Flows from Operating Activities	314.7		159.9				Cash Flows from Operating Activities	317.5		182.9
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:	CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:							CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	Additions to property, plant and equipment	(456.3)		(394.7)				Additions to property, plant and equipment	(267.2)		(223.7)
Purchase of securities - trusts	Purchase of securities - trusts	(5.7)		(39.5)				Purchase of securities - trusts	(2.9)		(3.1)
Sale of securities - trusts	Sale of securities - trusts	9.5		36.4				Sale of securities - trusts	1.9		1.6
Investment in corporate-owned life insurance	Investment in corporate-owned life insurance	(15.5)		(13.5)				Investment in corporate-owned life insurance	(3.8)		(2.9)
Proceeds from investment in corporate-owned life insurance	Proceeds from investment in corporate-owned life insurance	2.9		1.5				Proceeds from investment in corporate-owned life insurance	42.1		1.1
Other investing activities	Other investing activities	(2.2)		1.0				Other investing activities	1.0		4.2
Cash Flows used in Investing Activities	Cash Flows used in Investing Activities	(467.3)		(408.8)				Cash Flows used in Investing Activities	(228.9)		(222.8)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:	CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:							CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	Short-term debt, net	322.5		244.0				Short-term debt, net	(449.1)		55.3
Collateralized short-term debt, net	Collateralized short-term debt, net	15.0		(24.0)				Collateralized short-term debt, net	—		12.0
Proceeds from long-term debt								Proceeds from long-term debt	393.7		—

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

Borrowings against cash surrender value of corporate-owned life insurance	Borrowings against cash surrender value of corporate-owned life insurance	49.2		48.9				Borrowings against cash surrender value of corporate-owned life insurance	0.6		0.6
Repayment of borrowings against cash surrender value of corporate-owned life insurance	Repayment of borrowings against cash surrender value of corporate-owned life insurance	(1.2)		(0.1)				Repayment of borrowings against cash surrender value of corporate-owned life insurance	(32.5)		—
Cash dividends paid	Cash dividends paid	(225.0)		—				Cash dividends paid	—		(25.0)

Other financing activities	Other financing activities	(1.9)		(2.0)				Other financing activities	(0.6)		(1.2)
Cash Flows from Financing Activities		158.6		248.0
Cash Flows from (used in) Financing Activities								Cash Flows from (used in) Financing Activities	(87.9)		41.7
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	6.0		(0.9)				NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	0.7		1.8
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:	CASH, CASH EQUIVALENTS AND RESTRICTED CASH:							CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	Beginning of period	3.1		28.7				Beginning of period	8.7		3.1
End of period	End of period	$	9.1	$	27.8			End of period	$	9.4	$	4.9

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

1716

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

		Evergy Kansas Central, Inc. Shareholder										Evergy Kansas Central, Inc. Shareholder
		Common stock shares	Common stock		Retained earnings		Non-controlling interests		Total equity			Common stock shares	Common stock		Retained earnings		Non-controlling interests		Total equity
		(millions, except share amounts)										(millions, except share amounts)
Balance as of December 31, 2020		1	$	2,737.6	$	1,558.1	$	(14.9)	$	4,280.8
Balance as of December 31, 2021											Balance as of December 31, 2021	1	$	2,737.6	$	1,806.6	$	(2.7)	$	4,541.5
Net income	Net income	—	—		178.1		3.0		181.1		Net income	—	—		72.0		3.1		75.1
Dividends declared on common stock											Dividends declared on common stock	—	—		(25.0)		—		(25.0)

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

Balance as of June 30, 2021		1	$	2,737.6	$	1,812.8	$	(8.9)	$	4,541.5
Balance as of March 31, 2022											Balance as of March 31, 2022	1	$	2,737.6	$	1,853.6	$	0.4	$	4,591.6

Balance as of December 31, 2021		1	$	2,737.6	$	1,806.6	$	(2.7)	$	4,541.5
Net income		—	—		72.0		3.1		75.1
Dividends declared on common stock		—	—		(25.0)		—		(25.0)
Balance as of March 31, 2022		1	2,737.6		1,853.6		0.4		4,591.6
Net income		—	—		87.5		3.1		90.6
Dividends declared on common stock		—	—		(200.0)		—		(200.0)
Balance as of June 30, 2022		1	$	2,737.6	$	1,741.1	$	3.5	$	4,482.2

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

Balance as of March 31, 2023											Balance as of March 31, 2023	1	$	2,737.6	$	1,863.5	$	12.7	$	4,613.8

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

1817

Table of Contents


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

					March 31				December 31
		June 30 2022				December 31 2021					2023			2022
ASSETS	ASSETS	(millions, except share amounts)								ASSETS	(millions, except share amounts)
CURRENT ASSETS:	CURRENT ASSETS:									CURRENT ASSETS:
Cash and cash equivalents	Cash and cash equivalents		$	4.1			$	2.1		Cash and cash equivalents		$	3.8		$	3.1
Receivables, net of allowance for credit losses of $11.1 and $13.3, respectively			90.9				31.0
Receivables, net of allowance for credit losses of $7.0 and $9.3, respectively										Receivables, net of allowance for credit losses of $7.0 and $9.3, respectively		30.2			37.8
Related party receivables	Related party receivables		122.2				277.8			Related party receivables		124.4			170.4
Accounts receivable pledged as collateral	Accounts receivable pledged as collateral		114.0				116.0			Accounts receivable pledged as collateral		130.0			124.0
Fuel inventory and supplies	Fuel inventory and supplies		223.0				211.0			Fuel inventory and supplies		258.1			240.6
Income taxes receivable	Income taxes receivable		9.0				—			Income taxes receivable		3.7			0.2
Regulatory assets	Regulatory assets		77.2				86.3			Regulatory assets		70.8			42.3
Prepaid expenses	Prepaid expenses		21.5				22.6			Prepaid expenses		17.5			22.4
Other assets	Other assets		21.5				19.7			Other assets		11.7			11.0
Total Current Assets	Total Current Assets		683.4				766.5			Total Current Assets		650.2			651.8
PROPERTY, PLANT AND EQUIPMENT, NET	PROPERTY, PLANT AND EQUIPMENT, NET		7,606.9				7,474.9			PROPERTY, PLANT AND EQUIPMENT, NET		7,897.8			7,844.2
OTHER ASSETS:	OTHER ASSETS:									OTHER ASSETS:
Regulatory assets	Regulatory assets		437.2				410.7			Regulatory assets		337.6			331.5
Nuclear decommissioning trust fund	Nuclear decommissioning trust fund		353.1				400.3			Nuclear decommissioning trust fund		354.4			334.5
Other	Other		104.2				104.4			Other		84.4			87.2
Total Other Assets	Total Other Assets		894.5				915.4			Total Other Assets		776.4			753.2
TOTAL ASSETS	TOTAL ASSETS		$	9,184.8			$	9,156.8		TOTAL ASSETS		$	9,324.4		$	9,249.2

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

Table of Contents


EVERGY METRO, INC.
Consolidated Balance Sheets
(Unaudited)

	March 31			December 31
	2023			2022
LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:
Current maturities of long-term debt		$	79.5		$	379.5
Notes payable and commercial paper		173.3			111.0
Collateralized note payable		130.0			124.0
Accounts payable		159.0			252.3
Related party payables		0.5			0.9
Accrued taxes		74.1			40.5
Accrued interest		27.5			27.9
Regulatory liabilities		64.6			55.3
Asset retirement obligations		16.9			17.1
Accrued compensation and benefits		24.9			41.7
Other		60.3			49.2
Total Current Liabilities		810.6			1,099.4
LONG-TERM LIABILITIES:
Long-term debt, net		2,845.4			2,547.1
Deferred income taxes		743.9			720.9
Unamortized investment tax credits		114.0			114.7
Regulatory liabilities		845.9			872.8
Pension and post-retirement liability		217.2			196.6
Asset retirement obligations		431.7			427.1
Other		82.7			84.3
Total Long-Term Liabilities		5,280.8			4,963.5
Commitments and Contingencies (Note 10)
EQUITY:
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value		1,563.1			1,563.1
Retained earnings		1,666.0			1,619.2
Accumulated other comprehensive income		3.9			4.0
Total Equity		3,233.0			3,186.3
TOTAL LIABILITIES AND EQUITY		$	9,324.4		$	9,249.2

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

Table of Contents

EVERGY METRO, INC.
Consolidated Balance Sheets
(Unaudited)
June 30
2022 December 31
2021
LIABILITIES AND EQUITY (millions, except share amounts)
CURRENT LIABILITIES:
Current maturities of long-term debt $ 300.0 $ —
Collateralized note payable 114.0 116.0
Accounts payable 206.2 305.2
Related party payables 0.2 0.1
Accrued taxes 69.1 38.6
Accrued interest 24.9 26.4
Regulatory liabilities 54.0 54.6
Asset retirement obligations 10.3 11.0
Accrued compensation and benefits 33.8 37.8
Other 43.3 48.8
Total Current Liabilities 855.8 638.5
LONG-TERM LIABILITIES:
Long-term debt, net 2,625.8 2,925.0
Deferred income taxes 646.8 606.1
Unamortized investment tax credits 115.9 117.2
Regulatory liabilities 877.8 954.2
Pension and post-retirement liability 430.5 420.9
Asset retirement obligations 377.9 370.0
Other 90.2 103.7
Total Long-Term Liabilities 5,164.9 5,497.1
Commitments and Contingencies (Note 10) 0 0
EQUITY:
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value 1,563.1 1,563.1
Retained earnings 1,596.8 1,453.8
Accumulated other comprehensive income 4.2 4.3
Total Equity 3,164.1 3,021.2
TOTAL LIABILITIES AND EQUITY $ 9,184.8 $ 9,156.8


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


Three Months Ended March 31	2023		2022
	(millions)
OPERATING REVENUES	$	406.4	$	422.5
OPERATING EXPENSES:
Fuel and purchased power	115.4		132.5
Operating and maintenance	65.3		78.1
Depreciation and amortization	102.4		82.9
Taxes other than income tax	33.5		33.4

Total Operating Expenses	316.6		326.9
INCOME FROM OPERATIONS	89.8		95.6
OTHER INCOME (EXPENSE):
Investment earnings	0.7		0.1
Other income	2.8		4.1
Other expense	(9.0)		(10.5)
Total Other Expense, Net	(5.5)		(6.3)
Interest expense	30.6		27.0
INCOME BEFORE INCOME TAXES	53.7		62.3
Income tax expense	6.9		7.7
NET INCOME	$	46.8	$	54.6
COMPREHENSIVE INCOME
NET INCOME	$	46.8	$	54.6
OTHER COMPREHENSIVE INCOME:
Derivative hedging activity
Reclassification to expenses, net of tax	(0.1)		—
Derivative hedging activity, net of tax	(0.1)		—
Total other comprehensive loss	(0.1)		—
COMPREHENSIVE INCOME	$	46.7	$	54.6

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

Table of Contents

EVERGY METRO, INC.
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended
June 30 Year to Date
June 30
2022 2021 2022 2021
(millions)
OPERATING REVENUES $ 500.1 $ 438.7 $ 922.6 $ 954.9
OPERATING EXPENSES:
Fuel and purchased power 158.9 114.9 291.4 356.1
Operating and maintenance 86.7 81.7 164.8 175.1
Depreciation and amortization 84.5 78.4 167.4 156.8
Taxes other than income tax 33.7 32.6 67.1 64.6
Total Operating Expenses 363.8 307.6 690.7 752.6
INCOME FROM OPERATIONS 136.3 131.1 231.9 202.3
OTHER INCOME (EXPENSE):
Investment earnings 0.1 — 0.2 0.1
Other income 3.2 3.3 7.3 7.3
Other expense (10.1) (7.1) (20.6) (15.5)
Total Other Expense, Net (6.8) (3.8) (13.1) (8.1)
Interest expense 26.8 27.1 53.8 55.4
INCOME BEFORE INCOME TAXES 102.7 100.2 165.0 138.8
Income tax expense 14.3 12.1 22.0 17.2
NET INCOME $ 88.4 $ 88.1 $ 143.0 $ 121.6
COMPREHENSIVE INCOME
NET INCOME $ 88.4 $ 88.1 $ 143.0 $ 121.6
OTHER COMPREHENSIVE INCOME:
Derivative hedging activity
Reclassification to expenses, net of tax (0.1) — (0.1) —
Derivative hedging activity, net of tax (0.1) — (0.1) —
Total other comprehensive loss (0.1) — (0.1) —
COMPREHENSIVE INCOME $ 88.3 $ 88.1 $ 142.9 $ 121.6


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

Three Months Ended March 31	2023		2022
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	$	46.8	$	54.6
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	102.4		82.9
Amortization of nuclear fuel	7.6		7.9
Amortization of deferred refueling outage	2.3		3.1
Net deferred income taxes and credits	10.4		(1.8)
Allowance for equity funds used during construction	(2.3)		(3.9)
Payments for asset retirement obligations	(0.5)		(0.4)

Other	(0.1)		(0.1)
Changes in working capital items:
Accounts receivable	22.8		13.0
Accounts receivable pledged as collateral	(6.0)		(7.0)
Fuel inventory and supplies	(17.5)		(9.7)
Prepaid expenses and other current assets	(25.4)		(1.2)
Accounts payable	(78.3)		(80.9)
Accrued taxes	30.1		41.6
Other current liabilities	0.7		(9.0)
Changes in other assets	7.8		16.3
Changes in other liabilities	(7.1)		5.4
Cash Flows from Operating Activities	93.7		110.8
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(189.0)		(172.4)
Purchase of securities - trusts	(8.2)		(9.6)
Sale of securities - trusts	5.7		7.1
Net money pool lending	31.0		57.0
Other investing activities	1.6		1.7
Cash Flows used in Investing Activities	(158.9)		(116.2)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	360.0		—
Collateralized short-term debt, net	6.0		7.0

Retirements of long-term debt	(300.0)		—


Other financing activities	(0.1)		(0.1)
Cash Flows from Financing Activities	65.9		6.9
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	0.7		1.5
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	3.1		2.1
End of period	$	3.8	$	3.6

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

Table of Contents

EVERGY METRO, INC.
Consolidated Statements of Cash Flows
(Unaudited)
Year to Date June 30 2022 2021
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: (millions)
Net income $ 143.0 $ 121.6
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization 167.4 156.8
Amortization of nuclear fuel 16.0 10.0
Amortization of deferred refueling outage 6.3 6.3
Net deferred income taxes and credits 18.4 (32.1)
Allowance for equity funds used during construction (7.0) (5.4)
Payments for asset retirement obligations (1.4) (2.7)
Other (0.2) (0.2)
Changes in working capital items:
Accounts receivable (33.6) (38.5)
Accounts receivable pledged as collateral 2.0 12.0
Fuel inventory and supplies (12.0) (21.9)
Prepaid expenses and other current assets 5.2 (16.6)
Accounts payable (66.4) (84.7)
Accrued taxes 21.5 34.5
Other current liabilities (20.5) 14.6
Changes in other assets 25.5 34.6
Changes in other liabilities 2.6 57.8
Cash Flows from Operating Activities 266.8 246.1
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment (403.5) (295.2)
Purchase of securities - trusts (13.7) (13.6)
Sale of securities - trusts 10.0 8.4
Net money pool lending 141.0 5.0
Other investing activities 1.9 3.5
Cash Flows used in Investing Activities (264.3) (291.9)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Collateralized short-term debt, net (2.0) (12.0)
Other financing activities 1.5 2.9
Cash Flows from Financing Activities (0.5) (9.1)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 2.0 (54.9)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period 2.1 71.6
End of period $ 4.1 $ 16.7


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

	Common stock shares	Common Stock		Retained earnings		AOCI - Net gains (losses) on cash flow hedges		Total equity
	(millions, except share amounts)
Balance as of December 31, 2021	1	$	1,563.1	$	1,453.8	$	4.3	$	3,021.2
Net income	—	—		54.6		—		54.6


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









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

Derivative hedging activity, net of tax	—	—		—		(0.1)		(0.1)
Balance as of March 31, 2023	1	$	1,563.1	$	1,666.0	$	3.9	$	3,233.0

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

Table of Contents

EVERGY METRO, INC
Consolidated Statements of Changes in Equity
(Unaudited)
Common stock shares Common Stock Retained earnings AOCI - Net gains (losses) on cash flow hedges Total equity
(millions, except share amounts)
Balance as of December 31, 2020 1 $ 1,563.1 $ 1,191.5 $ 4.6 $ 2,759.2
Net income — — 33.5 — 33.5
Balance as of March 31, 2021 1 1,563.1 1,225.0 4.6 2,792.7
Net income — — 88.1 — 88.1
Balance as of June 30, 2021 1 $ 1,563.1 $ 1,313.1 $ 4.6 $ 2,880.8
Balance as of December 31, 2021 1 $ 1,563.1 $ 1,453.8 $ 4.3 $ 3,021.2
Net income — — 54.6 — 54.6
Balance as of March 31, 2022 1 1,563.1 1,508.4 4.3 3,075.8
Net income — — 88.4 — 88.4
Derivative hedging activity, net of tax — — — (0.1) (0.1)
Balance as of June 30, 2022 1 $ 1,563.1 $ 1,596.8 $ 4.2 $ 3,164.1

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

~~Table of Contents~~

EVERGY, INC.

EVERGY KANSAS CENTRAL, INC.

EVERGY METRO, INC.

Combined Notes to Unaudited Consolidated Financial Statements

The notes to unaudited consolidated financial statements that follow are a combined presentation for Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc., all registrants under this filing. The terms "Evergy," "Evergy Kansas Central," "Evergy Metro" and "Evergy Companies" are used throughout this report. "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Kansas Central" refers to Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Evergy Kansas Central and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization

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

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

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

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

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

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

Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West conduct business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 15,400 MWs of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately ~~1.6~~1.7 million customers in the states of Kansas and Missouri.

Basis of Presentation

These unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements in the Evergy Companies' combined ~~2021~~2022 Form 10-K.

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These unaudited consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments necessary to fairly present the unaudited consolidated financial statements for each of the Evergy Companies for these interim periods. In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

Principles of Consolidation

Each of Evergy's, Evergy Kansas Central's and Evergy Metro's unaudited consolidated financial statements includes the accounts of their subsidiaries and variable interest entities (VIEs) of which they are the primary beneficiary. Undivided interests in jointly-owned generation facilities are included on a proportionate basis. Intercompany transactions have been eliminated. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in 1one segment).

Fuel Inventory and Supplies

The Evergy Companies record fuel inventory and supplies at average cost. The following table separately states the balances for fuel inventory and supplies.


		June 30 2022		December 31 2021			March 31 2023		December 31 2022
Evergy	Evergy	(millions)				Evergy	(millions)
Fuel inventory	Fuel inventory	$	194.3	$	160.9	Fuel inventory	$	224.3	$	180.7
Supplies	Supplies	442.2		405.8		Supplies	499.8		492.2
Fuel inventory and supplies	Fuel inventory and supplies	$	636.5	$	566.7	Fuel inventory and supplies	$	724.1	$	672.9
Evergy Kansas Central	Evergy Kansas Central					Evergy Kansas Central
Fuel inventory	Fuel inventory	$	103.7	$	74.3	Fuel inventory	$	111.1	$	97.2
Supplies	Supplies	230.0		208.9		Supplies	258.7		252.3
Fuel inventory and supplies	Fuel inventory and supplies	$	333.7	$	283.2	Fuel inventory and supplies	$	369.8	$	349.5
Evergy Metro	Evergy Metro					Evergy Metro
Fuel inventory	Fuel inventory	$	62.9	$	62.0	Fuel inventory	$	78.9	$	59.0
Supplies	Supplies	160.1		149.0		Supplies	179.2		181.6
Fuel inventory and supplies	Fuel inventory and supplies	$	223.0	$	211.0	Fuel inventory and supplies	$	258.1	$	240.6

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Property, Plant and Equipment

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


June 30, 2022		Evergy			Evergy Kansas Central			Evergy Metro
March 31, 2023											March 31, 2023	Evergy			Evergy Kansas Central			Evergy Metro
			(millions)										(millions)
Electric plant in service	Electric plant in service		$	31,394.1		$	14,994.0		$	12,114.8	Electric plant in service		$	32,372.1		$	15,472.7		$	12,456.5
Electric plant acquisition adjustment	Electric plant acquisition adjustment		724.3			724.3			—		Electric plant acquisition adjustment		724.3			724.3			—
Accumulated depreciation	Accumulated depreciation		(11,887.2)			(5,743.3)			(4,914.3)		Accumulated depreciation		(12,389.3)			(5,901.6)			(5,157.6)
Plant in service, net	Plant in service, net		20,231.2			9,975.0			7,200.5		Plant in service, net		20,707.1			10,295.4			7,298.9
Construction work in progress	Construction work in progress		1,056.1			661.2			315.7		Construction work in progress		1,458.3			804.3			516.9
Nuclear fuel, net	Nuclear fuel, net		180.5			89.8			90.7		Nuclear fuel, net		162.8			80.8			82.0
Plant to be retired, net(a)	Plant to be retired, net(a)		0.8			0.8			—		Plant to be retired, net(a)		0.8			0.8			—
Property, plant and equipment, net	Property, plant and equipment, net		$	21,468.6		$	10,726.8		$	7,606.9	Property, plant and equipment, net		$	22,329.0		$	11,181.3		$	7,897.8

December 31, 2021		Evergy			Evergy Kansas Central			Evergy Metro
December 31, 2022											December 31, 2022	Evergy			Evergy Kansas Central			Evergy Metro
			(millions)										(millions)
Electric plant in service	Electric plant in service		$	30,289.9		$	14,686.3		$	11,656.9	Electric plant in service		$	32,129.3		$	15,376.9		$	12,343.3
Electric plant acquisition adjustment	Electric plant acquisition adjustment		724.3			724.3			—		Electric plant acquisition adjustment		724.3			724.3			—
Accumulated depreciation	Accumulated depreciation		(11,515.5)			(5,590.8)			(4,733.7)		Accumulated depreciation		(12,304.9)			(5,922.9)			(5,065.3)
Plant in service, net	Plant in service, net		19,498.7			9,819.8			6,923.2		Plant in service, net		20,548.7			10,178.3			7,278.0
Construction work in progress	Construction work in progress		1,350.6			652.2			475.3		Construction work in progress		1,421.2			819.5			482.6
Nuclear fuel, net	Nuclear fuel, net		152.5			76.1			76.4		Nuclear fuel, net		165.8			82.2			83.6
Plant to be retired, net(a)	Plant to be retired, net(a)		0.8			0.8			—		Plant to be retired, net(a)		0.8			0.8			—
Property, plant and equipment, net	Property, plant and equipment, net		$	21,002.6		$	10,548.9		$	7,474.9	Property, plant and equipment, net		$	22,136.5		$	11,080.8		$	7,844.2

(a) As of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, represents the planned retirement of Evergy Kansas Central analog meters prior to the end of their remaining useful lives.

Other Income (Expense), Net

For the three months ended ~~and year to date June 30,~~March 31, 2022, Evergy's investment earnings (loss) included a pre-tax loss of ~~$2.1~~$14.2 million ~~and $16.3 million, respectively,~~ related to Evergy's equity investment in an early-stage energy solutions company. ~~See "Evergy Equity Investment" in this Note 1 for further information.~~

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


		Three Months Ended June 30				Year to Date June 30
		2022		2021		2022		2021
Three Months Ended March 31										Three Months Ended March 31		2023		2022
Evergy	Evergy	(millions)								Evergy	(millions)
Non-service cost component of net benefit cost	Non-service cost component of net benefit cost	$	(17.9)	$	(13.8)	$	(36.3)	$	(28.6)	Non-service cost component of net benefit cost		$	(14.8)	$	(18.4)
Other	Other	(5.0)		(5.0)		(11.5)		(11.1)		Other		(6.5)		(6.5)
Other expense	Other expense	$	(22.9)	$	(18.8)	$	(47.8)	$	(39.7)	Other expense		$	(21.3)	$	(24.9)
Evergy Kansas Central	Evergy Kansas Central									Evergy Kansas Central
Non-service cost component of net benefit cost	Non-service cost component of net benefit cost	$	(4.8)	$	(4.1)	$	(9.4)	$	(7.7)	Non-service cost component of net benefit cost		$	(4.0)	$	(4.6)
Other	Other	(4.3)		(3.6)		(9.9)		(9.2)		Other		(5.9)		(5.6)
Other expense	Other expense	$	(9.1)	$	(7.7)	$	(19.3)	$	(16.9)	Other expense		$	(9.9)	$	(10.2)
Evergy Metro	Evergy Metro									Evergy Metro
Non-service cost component of net benefit cost	Non-service cost component of net benefit cost	$	(9.6)	$	(6.1)	$	(19.6)	$	(14.0)	Non-service cost component of net benefit cost		$	(8.7)	$	(10.0)
Other	Other	(0.5)		(1.0)		(1.0)		(1.5)		Other		(0.3)		(0.5)
Other expense	Other expense	$	(10.1)	$	(7.1)	$	(20.6)	$	(15.5)	Other expense		$	(9.0)	$	(10.5)

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Earnings Per Share

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

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


		Three Months Ended June 30				Year to Date June 30
		2022		2021		2022		2021
Three Months Ended March 31										Three Months Ended March 31		2023		2022
Income	Income	(millions, except per share amounts)								Income	(millions, except per share amounts)
Net income	Net income	$	197.6	$	188.3	$	323.2	$	382.9	Net income		$	145.7	$	125.6
Less: net income attributable to noncontrolling interests	Less: net income attributable to noncontrolling interests	3.1		3.0		6.2		6.0		Less: net income attributable to noncontrolling interests		3.1		3.1
Net income attributable to Evergy, Inc.	Net income attributable to Evergy, Inc.	$	194.5	$	185.3	$	317.0	$	376.9	Net income attributable to Evergy, Inc.		$	142.6	$	122.5
Common Shares Outstanding	Common Shares Outstanding									Common Shares Outstanding
Weighted average number of common shares outstanding - basic	Weighted average number of common shares outstanding - basic	229.9		229.3		229.8		228.3		Weighted average number of common shares outstanding - basic		230.0		229.8
Add: effect of dilutive securities	Add: effect of dilutive securities	0.5		0.4		0.6		0.4		Add: effect of dilutive securities		0.3		0.4
Diluted average number of common shares outstanding	Diluted average number of common shares outstanding	230.4		229.7		230.4		228.7		Diluted average number of common shares outstanding		230.3		230.2
Basic EPS		$	0.85	$	0.81	$	1.38	$	1.65
Diluted EPS		$	0.84	$	0.81	$	1.38	$	1.65
Basic and Diluted EPS										Basic and Diluted EPS		$	0.62	$	0.53

~~There were no anti-dilutive shares~~Anti-dilutive securities excluded from the computation of diluted EPS for the three months ended March 31, 2023 and ~~year to date June 30, 2022. Anti-dilutive shares excluded from the computation of diluted EPS for the three months ended and year to date June 30, 2021,~~2022 were 3,950,000 common shares issuable pursuant to a warrant.

Dividends Declared

In ~~August 2022,~~May 2023, Evergy's Board of Directors (Evergy Board) declared a quarterly dividend of ~~$0.5725~~$0.6125 per share on Evergy's common stock. The common dividend is payable on ~~September~~June 20, ~~2022,~~2023, to shareholders of record as of ~~August~~May 19, ~~2022.~~2023.

In ~~August 2022,~~May 2023, Evergy ~~Kansas Central's~~Metro's Board of Directors declared a cash dividend to Evergy of up to ~~$160.0~~$150.0 million, payable on ~~September 19, 2022.~~June 16, 2023, or such other date as determined necessary, proper, or advisable.

~~In August 2022, Evergy Metro's Board of Directors declared a dividend to Evergy of up to $140.0 million, payable on September 19, 2022.~~

Supplemental Cash Flow Information


Evergy	Evergy					Evergy
Year to Date June 30		2022		2021
Three Months Ended March 31						Three Months Ended March 31	2023		2022
Cash paid for (received from):	Cash paid for (received from):	(millions)				Cash paid for (received from):	(millions)
Interest, net of amount capitalized	Interest, net of amount capitalized	$	178.9	$	179.9	Interest, net of amount capitalized	$	133.0	$	76.7
Interest of VIEs		—		0.2

Income taxes, net of refunds	Income taxes, net of refunds	0.8		0.4		Income taxes, net of refunds	(0.5)		(0.1)
Right-of-use assets obtained in exchange for new operating lease liabilities	Right-of-use assets obtained in exchange for new operating lease liabilities	6.2		2.4		Right-of-use assets obtained in exchange for new operating lease liabilities	6.2		1.6
Right-of-use assets obtained in exchange for new finance lease liabilities	Right-of-use assets obtained in exchange for new finance lease liabilities	2.4		0.6		Right-of-use assets obtained in exchange for new finance lease liabilities	—		2.4
Non-cash investing transactions:	Non-cash investing transactions:					Non-cash investing transactions:
Property, plant and equipment additions	Property, plant and equipment additions	127.0		149.1		Property, plant and equipment additions	112.1		122.6

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

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Evergy Kansas Central	Evergy Kansas Central					Evergy Kansas Central
Year to Date June 30		2022		2021
Three Months Ended March 31						Three Months Ended March 31	2023		2022
Cash paid for (received from):	Cash paid for (received from):	(millions)				Cash paid for (received from):	(millions)
Interest, net of amount capitalized	Interest, net of amount capitalized	$	80.0	$	74.4	Interest, net of amount capitalized	$	56.3	$	32.1
Interest of VIEs		—		0.2

Income taxes, net of refunds	Income taxes, net of refunds	5.2		37.0		Income taxes, net of refunds	(0.2)		—
Right-of-use assets obtained in exchange for new operating lease liabilities	Right-of-use assets obtained in exchange for new operating lease liabilities	6.0		1.7		Right-of-use assets obtained in exchange for new operating lease liabilities	2.7		1.6
Right-of-use assets obtained in exchange for new finance lease liabilities	Right-of-use assets obtained in exchange for new finance lease liabilities	2.4		0.6		Right-of-use assets obtained in exchange for new finance lease liabilities	—		2.4
Non-cash investing transactions:	Non-cash investing transactions:					Non-cash investing transactions:
Property, plant and equipment additions	Property, plant and equipment additions	49.4		61.1		Property, plant and equipment additions	54.8		42.0


Evergy Metro	Evergy Metro					Evergy Metro
Year to Date June 30		2022		2021
Three Months Ended March 31						Three Months Ended March 31	2023		2022
Cash paid for (received from):	Cash paid for (received from):	(millions)				Cash paid for (received from):	(millions)
Interest, net of amount capitalized	Interest, net of amount capitalized	$	52.3	$	56.8	Interest, net of amount capitalized	$	31.1	$	15.6
Income taxes, net of refunds		15.0		43.9

Right-of-use assets obtained in exchange for new operating lease liabilities	Right-of-use assets obtained in exchange for new operating lease liabilities	0.2		0.7		Right-of-use assets obtained in exchange for new operating lease liabilities	3.5		—

Non-cash investing transactions:	Non-cash investing transactions:					Non-cash investing transactions:
Property, plant and equipment additions	Property, plant and equipment additions	45.0		53.1		Property, plant and equipment additions	41.0		38.5

~~February 2021 Winter Weather Event~~Renewable Generation Investment

In February 2021, much of the central and southern United States, including the service territories of the Evergy Companies, experienced a significant winter weather event that resulted in extremely cold temperatures over a multi-day period (February 2021 winter weather event). These circumstances resulted in higher than normal market prices within the SPP Integrated Marketplace for both natural gas and power for the duration of the February 2021 winter weather event. As part of the February 2021 winter weather event and inclusive of the aforementioned items, Evergy incurred natural gas and purchased power costs, net of wholesale revenues, of $349.5 million for year to date June 30, 2021. This $349.5 million of net fuel and purchased power costs incurred was primarily driven by $292.7 million of costs atAugust 2022, Evergy Missouri West entered into an agreement with a renewable energy development company to purchase for approximately $250 million an operational wind farm located in the state of Oklahoma with a generating capacity of approximately 199 MW. Pursuant to the agreement, Evergy Missouri West is permitted to assign its right to purchase the wind farm to another entity, including to other Evergy affiliated companies.

Evergy Missouri West's purchase is subject to regulatory approvals and ~~$128.2 million~~closing conditions, including the granting of a Certificate of Convenience and Necessity (CCN) by the Public Service Commission of the State of Missouri (MPSC). In April 2023, the MPSC issued a final order granting the CCN pursuant to certain conditions related to the sharing of operational costs atbetween ratepayers and shareholders.

Evergy Missouri West is currently evaluating the assignment of its right to purchase the wind farm to Evergy Kansas Central, ~~partially offset by $71.4 million~~which has included the purchase of ~~net wholesale revenues at Evergy Metro.~~

~~The amount of purchased power costs incurred and wholesale revenues recorded by~~ the ~~Evergy Companies~~wind farm in ~~the first quarter of 2021 during the February 2021 winter weather event have been subject to subsequent resettlement activity by the SPP that has resulted in net increases~~its rate case application to the ~~total cost~~State Corporation Commission of the ~~February 2021 winter weather event from the amounts initially recorded. As~~State of June 30, 2022, Evergy has incurred total natural gas and purchased power costs, net of wholesale revenues, of $367.9 million related to the February 2021 winter weather event and inclusive of these subsequent SPP resettlements. This $367.9 million of net fuel and purchased power costsKansas (KCC) which was ~~primarily driven by $296.6 million of costs at Evergy Missouri West and $134.3 million of costs at Evergy Kansas Central, partially offset by $63.0 million of net wholesale revenues at Evergy Metro.~~

As of June 30, 2022 and December 31, 2021, the Evergy Companies had deferred substantially all of the fuel and purchased power costs, net of wholesale revenues, related to the February 2021 winter weather event to a regulatory asset or liability for recovery or refund through the respective fuel recovery mechanisms of Evergy Kansas Central and Evergy Metro and through a pending securitization request at Evergy Missouri West.filed in April 2023. See Note 4 for additional information ~~regarding these regulatory proceedings.~~

on Evergy Kansas Central's rate case proceeding. The Evergy Companies also engage in limited non-regulated energy marketing activities in various regional power markets that have historically not had a significant impact on the Evergy Companies' results of operations. These energy marketing margins are recorded net in operating revenues on the Evergy Companies' statements of income and comprehensive income. As a resultpurchase of the ~~elevated market prices experienced~~wind farm is expected to close in ~~regional power markets across~~ the ~~central and southern United States driven by the February 2021 winter weather event discussed above, Evergy~~second quarter of 2023.

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and Evergy Kansas Central recorded $95.0 million of energy marketing margins as of June 30, 2021 related to the February 2021 winter weather event, primarily driven by activities in the Electric Reliability Council of Texas (ERCOT).

~~Evergy Equity Investment~~

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

In March 2022, Evergy sold its shares in the equity investment to a financial institution through a share forward agreement following the expiration of the restriction on sale. As part of the share forward agreement, Evergy delivered its shares to the financial institution in exchange for a series of cash settlements totaling $15.1 million based primarily on the volume-weighted average price (VWAP) of the shares over the term of the agreement, which was completed in June 2022. As a result of the completion of the share forward agreement, Evergy no longer has an equity investment in the company.

2. REVENUE

Evergy's, Evergy Kansas Central's and Evergy Metro's revenues disaggregated by customer class are summarized in the following tables.


Evergy	Evergy									Evergy
		Three Months Ended June 30				Year to Date June 30
		2022		2021		2022		2021
Three Months Ended March 31												Three Months Ended March 31		2023		2022
Revenues	Revenues	(millions)									Revenues		(millions)
Residential	Residential	$	513.4	$	459.8	$	965.2	$	856.5			Residential		$	458.6	$	451.8
Commercial	Commercial	465.5		422.5		868.6		768.5				Commercial		430.0		403.1
Industrial	Industrial	170.1		150.0		320.4		283.6				Industrial		159.1		150.3
Other retail	Other retail	9.8		9.5		18.8		16.9				Other retail		11.3		9.0
Total electric retail	Total electric retail	$	1,158.8	$	1,041.8	$	2,173.0	$	1,925.5			Total electric retail		$	1,059.0	$	1,014.2
Wholesale	Wholesale	79.5		70.0		131.4		557.5				Wholesale		70.4		51.9
Transmission	Transmission	101.0		90.4		199.0		176.4				Transmission		105.8		98.0
Industrial steam and other	Industrial steam and other	7.4		5.9		10.7		11.1				Industrial steam and other		11.7		3.3
Total revenue from contracts with customers	Total revenue from contracts with customers	$	1,346.7	1,208.1		2,514.1		2,670.5				Total revenue from contracts with customers		1,246.9		1,167.4
Other	Other	99.8		28.1		156.3		177.6				Other		49.9		56.5
Operating revenues	Operating revenues	$	1,446.5	$	1,236.2	$	2,670.4	$	2,848.1			Operating revenues		$	1,296.8	$	1,223.9


Evergy Kansas Central

Three Months Ended March 31	2023		2022
Revenues	(millions)
Residential	$	192.1	$	196.1
Commercial	178.1		165.2
Industrial	108.5		100.8
Other retail	4.3		4.1
Total electric retail	$	483.0	$	466.2
Wholesale	67.6		50.1
Transmission	100.6		87.5
Other	1.7		0.6
Total revenue from contracts with customers	$	652.9	$	604.4
Other	25.7		9.5
Operating revenues	$	678.6	$	613.9

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Evergy Kansas Central
Evergy Metro											Evergy Metro
		Three Months Ended June 30				Year to Date June 30
		2022		2021		2022		2021
Three Months Ended March 31											Three Months Ended March 31		2023		2022
Revenues	Revenues	(millions)								Revenues		(millions)
Residential	Residential	$	222.8	$	191.6	$	418.9	$	375.0		Residential		$	158.0	$	159.9
Commercial	Commercial	193.7		165.1		358.9		318.8			Commercial		175.9		173.6
Industrial	Industrial	111.9		95.0		212.7		188.0			Industrial		28.4		28.8
Other retail	Other retail	4.5		5.2		8.6		8.4			Other retail		2.7		2.6
Total electric retail	Total electric retail	$	532.9	$	456.9	$	999.1	$	890.2		Total electric retail		$	365.0	$	364.9
Wholesale	Wholesale	81.4		53.5		131.5		325.9			Wholesale		11.4		7.7
Transmission	Transmission	91.1		81.7		178.6		159.6			Transmission		3.8		5.4
Other	Other	0.6		0.6		1.2		1.1			Other		2.4		(1.8)
Total revenue from contracts with customers	Total revenue from contracts with customers	$	706.0	$	592.7	$	1,310.4	$	1,376.8		Total revenue from contracts with customers		$	382.6	$	376.2
Other	Other	18.0		5.8		27.5		122.8			Other		23.8		46.3
Operating revenues	Operating revenues	$	724.0	$	598.5	$	1,337.9	$	1,499.6		Operating revenues		$	406.4	$	422.5

Evergy Metro
Three Months Ended
June 30 Year to Date
June 30
2022 2021 2022 2021
Revenues (millions)
Residential $ 184.9 $ 173.9 $ 344.8 $ 296.1
Commercial 194.1 188.1 367.7 320.6
Industrial 33.4 33.7 62.2 56.0
Other retail 3.0 2.8 5.6 4.9
Total electric retail $ 415.4 $ 398.5 $ 780.3 $ 677.6
Wholesale (2.5) 12.8 5.2 213.3
Transmission 4.4 4.5 9.8 8.5
Other 1.2 1.1 (0.6) 1.4
Total revenue from contracts with customers $ 418.5 $ 416.9 $ 794.7 $ 900.8
Other 81.6 21.8 127.9 54.1
Operating revenues $ 500.1 $ 438.7 $ 922.6 $ 954.9

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3. RECEIVABLES

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


							March 31		December 31
		June 30		December 31
		2022		2021			2023		2022
Evergy	Evergy	(millions)				Evergy	(millions)
Customer accounts receivable - billed	Customer accounts receivable - billed	$	—	$	13.7	Customer accounts receivable - billed	$	4.7	$	8.9
Customer accounts receivable - unbilled	Customer accounts receivable - unbilled	199.5		80.1		Customer accounts receivable - unbilled	82.1		136.9
Other receivables	Other receivables	212.0		160.7		Other receivables	143.4		200.9
Allowance for credit losses	Allowance for credit losses	(27.1)		(32.9)		Allowance for credit losses	(22.9)		(31.4)
Total	Total	$	384.4	$	221.6	Total	$	207.3	$	315.3
Evergy Kansas Central	Evergy Kansas Central					Evergy Kansas Central
Customer accounts receivable - billed	Customer accounts receivable - billed	$	—	$	9.7	Customer accounts receivable - billed	$	—	$	—
Customer accounts receivable - unbilled	Customer accounts receivable - unbilled	81.5		26.4		Customer accounts receivable - unbilled	40.1		71.4
Other receivables	Other receivables	220.0		178.5		Other receivables	125.3		194.9
Allowance for credit losses	Allowance for credit losses	(10.7)		(13.0)		Allowance for credit losses	(12.1)		(16.9)
Total	Total	$	290.8	$	201.6	Total	$	153.3	$	249.4
Evergy Metro	Evergy Metro					Evergy Metro
Customer accounts receivable - billed	Customer accounts receivable - billed	$	—	$	2.7	Customer accounts receivable - billed	$	—	$	—
Customer accounts receivable - unbilled	Customer accounts receivable - unbilled	72.1		25.9		Customer accounts receivable - unbilled	6.8		25.5
Other receivables	Other receivables	29.9		15.7		Other receivables	30.4		21.6
Allowance for credit losses	Allowance for credit losses	(11.1)		(13.3)		Allowance for credit losses	(7.0)		(9.3)
Total	Total	$	90.9	$	31.0	Total	$	30.2	$	37.8

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The Evergy Companies' other receivables at ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, consisted primarily of receivables from partners in jointly-owned electric utility plants, wholesale sales receivables and receivables related to alternative revenue programs. The Evergy Companies' other receivables also included receivables from contracts with customers as summarized in the following table.

June 30 December 31
2022 2021
(millions)
Evergy $ 126.2 $ 63.7
Evergy Kansas Central 112.2 62.6
Evergy Metro 13.2 0.5

~~Table of Contents~~


	March 31		December 31

	2023		2022
	(millions)
Evergy	$	48.3	$	113.0
Evergy Kansas Central	44.3		110.8
Evergy Metro	2.7		1.3

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


		2022		2021			2023		2022
Evergy	Evergy	(millions)				Evergy	(millions)
Beginning balance January 1	Beginning balance January 1	$	32.9	$	19.3	Beginning balance January 1	$	31.4	$	32.9
Credit loss expense		1.7		2.4
Credit loss expense (income)						Credit loss expense (income)	(3.3)		(4.1)
Write-offs	Write-offs	(13.5)		(8.2)		Write-offs	(8.3)		(7.9)
Recoveries of prior write-offs	Recoveries of prior write-offs	6.0		6.5		Recoveries of prior write-offs	3.1		3.5
Ending balance June 30		$	27.1	$	20.0
Ending balance March 31						Ending balance March 31	$	22.9	$	24.4
Evergy Kansas Central	Evergy Kansas Central					Evergy Kansas Central
Beginning balance January 1	Beginning balance January 1	$	13.0	$	7.5	Beginning balance January 1	$	16.9	$	13.0
Credit loss expense		1.5		0.4
Credit loss expense (income)						Credit loss expense (income)	(1.8)		(0.6)
Write-offs	Write-offs	(6.1)		(2.7)		Write-offs	(4.3)		(3.6)
Recoveries of prior write-offs	Recoveries of prior write-offs	2.3		2.4		Recoveries of prior write-offs	1.3		1.3
Ending balance June 30		$	10.7	$	7.6
Ending balance March 31						Ending balance March 31	$	12.1	$	10.1
Evergy Metro	Evergy Metro					Evergy Metro
Beginning balance January 1	Beginning balance January 1	$	13.3	$	8.1	Beginning balance January 1	$	9.3	$	13.3
Credit loss expense		0.3		1.3
Credit loss expense (income)						Credit loss expense (income)	(0.8)		(2.4)
Write-offs	Write-offs	(5.0)		(3.7)		Write-offs	(2.7)		(2.9)
Recoveries of prior write-offs	Recoveries of prior write-offs	2.5		3.0		Recoveries of prior write-offs	1.2		1.5
Ending balance June 30		$	11.1	$	8.7
Ending balance March 31						Ending balance March 31	$	7.0	$	9.5

Sale of Accounts Receivable

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


								March 31		December 31
		June 30		December 31
		2022		2021		2023		2022
		(millions)						(millions)
Evergy	Evergy	$	347.0	$	319.0		Evergy	$	365.0	$	359.0
Evergy Kansas Central	Evergy Kansas Central	168.0		153.0			Evergy Kansas Central	185.0		185.0
Evergy Metro	Evergy Metro	114.0		116.0			Evergy Metro	130.0		124.0

Each receivable sale facility expires in 2024. Evergy Kansas Central's facility allows for $185.0 million in aggregate outstanding principal amount of borrowings from mid-October through mid-June and then $200.0 million

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from mid-June through mid-October. Evergy Metro's facility allows for $130.0 million in aggregate outstanding principal amount of borrowings at any time. Evergy Missouri West's facility allows for $50.0 million in aggregate outstanding principal amount of borrowings from mid-November through mid-June and then $65.0 million from mid-June through mid-November.

4. RATE MATTERS AND REGULATION

KCC Proceedings

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

In April 2023, Evergy Kansas Central ~~2022~~and Evergy Metro filed applications with the Kansas Corporation Commission (KCC) to request increases to their retail revenues of approximately $204 million and $14 million, respectively. Evergy Kansas Central's request reflects a return on equity of 10.25% (with a capital structure composed of 52% equity) and increases related to the recovery of infrastructure investments made to improve reliability and enhance customer service, the inclusion of Evergy Kansas Central's non-regulated 8% of Jeffrey Energy Center (JEC) in rate base and the management of the previously established end to a corporate-owned life insurance program. Evergy Kansas Central is also requesting, upon the closing of the transaction, the inclusion of the cost of an approximately $250 million operational wind farm located in the state of Oklahoma with a generating capacity of approximately 199 MW. The cost of this wind farm is not included in Evergy Kansas Central's approximately $204 million increase to retail revenue requested in the case but if approved by the KCC, the cost of this wind farm would result in an additional $24.4 million increase to Evergy Kansas Central's retail revenues. Evergy Metro's request reflects a return on equity of 10.25% (with a capital structure composed of 52% equity) and increases related to recovery of infrastructure investments made to improve reliability and enhance customer service. Requests for increases in retail revenues in both proceedings are partially offset by significant customer savings and cost reductions. New rates are expected to be effective in December 2023.

Evergy Kansas Central 2023 Transmission Delivery Charge (TDC)

In ~~March 2022,~~April 2023, the KCC issued an order adjusting Evergy Kansas Central's retail prices to include updated transmission costs as reflected in the Federal Energy Regulatory Commission (FERC) transmission formula rate (TFR). The new prices ~~were~~are effective in ~~April 2022~~May 2023 and include the adjustments to the 2023 TFR described under "Evergy Kansas Central TFR Formal Challenge" within this Note 4. The new prices are expected to ~~increase~~decrease Evergy Kansas Central's annual retail revenues by ~~$20.4~~$22.3 million when compared to ~~2021.~~

~~Table of Contents~~

2022.

Evergy Metro ~~2022~~2023 TDC

In April ~~2022,~~2023, the KCC issued an order adjusting Evergy Metro's retail prices to include updated transmission costs as reflected in the FERC TFR. The new prices ~~were~~are effective in May ~~2022~~2023 and are expected to increase Evergy Metro's annual retail revenues by ~~$7.9~~$4.0 million when compared to ~~2021.~~2022.

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

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

Evergy Kansas ~~Central's and Evergy Metro's 2021 calculations of~~Central estimates its 2022 annual earnings did not result in a refund obligation. ~~These calculations were filed with the KCC in March 2022.~~ As of ~~June 30,~~December 31, 2022, Evergy Metro estimated that its 2022 annual earnings resulted in a $16.7 million refund obligation, which was recorded in the fourth quarter of 2022. Evergy Kansas Central and Evergy Metro ~~estimate~~filed their 2022 ~~annual earnings will not~~ERSP calculations with the KCC in March 2023. As part of these filings, Evergy Metro filed for a lower refund obligation for 2022 of approximately $6 million (compared with its $16.7 million refund obligation estimate) as a result ~~in a significant refund obligation.~~of certain intercompany billings to Evergy Kansas Central. The final refund obligations for ~~2021 and~~ 2022 will be decided by the KCC and could vary from the current estimates.

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

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

Evergy Kansas Central recognized a regulatory asset pursuant to the AAO of approximately $120 million related to its costs incurred during the February 2021 winter weather event, primarily consisting of increased fuel, purchased power, and associated carrying costs. Evergy Metro's Kansas jurisdiction recognized a regulatory liability of approximately $40 million related to its increased wholesale revenues during the February 2021 winter weather event and associated carrying costs.

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

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

~~In June 2022, the KCC issued an order approving the non-unanimous stipulation and agreement.~~

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~~Missouri Public Service Commission (MPSC)~~MPSC Proceedings

~~Evergy Metro 2022 Rate Case Proceeding~~

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

Testimony from MPSC staff and other parties regarding the case was filed in June 2022. The MPSC staff’s testimony recommended a return on equity range from 9.37% to 9.87% and an increase to retail revenues of $28.1 million. The outcome of the Evergy Metro Missouri rate case will likely be different from either of the positions of Evergy Metro or MPSC staff, though the decision of the MPSC cannot be predicted.

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

~~Evergy Missouri West 2022 Rate Case Proceeding~~

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

Testimony from MPSC staff and other parties regarding the case was filed in June 2022. The MPSC staff’s testimony recommended a return on equity range from 9.37% to 9.87% and an increase to retail revenues of $6.2 million. The outcome of the Evergy Missouri West rate case will likely be different from either of the positions of Evergy Missouri West or MPSC staff, though the decision of the MPSC cannot be predicted.

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

~~Evergy Missouri West Other Proceedings~~

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

In October 2019, the MPSC granted OPC's and MECG's request for an AAO and required Evergy Missouri West to record a regulatory liability for the revenues discussed above for consideration in Evergy Missouri West's current rate case. Depending on the MPSC's decision in the current rate case, Evergy Missouri West could be required to refund to customers all or a portion of amounts collected in revenue for Sibley Station since December 2018 or, alternatively, could be required to make no refunds. As part of its current rate case, Evergy Missouri West is proposing to refund to customers the revenues collected from customers for non-fuel operations and maintenance costs and other costs associated with Sibley Station following the station's retirement but not the related return on investment.

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As a result of the MPSC order, Evergy has recorded a regulatory liability of $34.7 million and $29.3 million as of June 30, 2022 and December 31, 2021, respectively, for the estimated amount of revenues that Evergy Missouri West has collected from customers for Sibley Station since December 2018 that Evergy has determined is probable of refund. Evergy expects that it will continue to defer such amounts as collected from customers until new rates become effective in Evergy Missouri West's current rate case.

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

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

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

Evergy Metro and Evergy Missouri West have currently deferred substantially all of their fuel and purchased power costs, net of wholesale revenues, related to the February 2021 winter weather event to a regulatory asset or liability pursuant to their ability to recover or refund these amounts through their fuel recovery mechanisms, which allow for the recovery or refund of 95% of increases in fuel and purchased power costs, net of wholesale revenues, above the amount included in base rates to customers. This AAO request is intended to address the recovery or refund of the February 2021 winter weather event amounts separate from the normal fuel recovery mechanism process given the extraordinary nature of the February 2021 winter weather event and to help moderate customer bill impacts. Evergy Metro's Missouri jurisdiction recognized a regulatory liability of approximately $25 million related to its increased wholesale revenues during the February 2021 winter weather event. Evergy Missouri West recognized a regulatory asset of approximately $280 million related to its costs incurred during the February 2021 winter weather event, primarily consisting of increased fuel and purchased power costs.

In the AAO filing, Evergy Metro requested to refund its deferred February 2021 winter weather event amounts to customers through its fuel recovery mechanism over one year, beginning in April 2022. In the same AAO filing, Evergy Missouri West requested to exclude its deferred February 2021 winter weather event amounts from recovery through its fuel recovery mechanism and indicated its intent to recover them through issuing securitized bonds pursuant to the securitization legislation signed into law in Missouri in July 2021. As part of the filing, Evergy Metro also requested an approximately $5 million decrease to its February 2021 winter weather refund to Missouri customers, which is not currently reflected in its regulatory liability for the February 2021 winter weather event, for jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms and for the portion of net wholesale revenues not traditionally refundable because of the 5% sharing provision of its fuel recovery mechanism. Evergy Missouri West requested an approximately $15 million increase to its February 2021 winter weather event recovery from Missouri customers, which is not currently reflected in its regulatory asset for the February 2021 winter weather event, for the portion of net fuel and purchased power costs not traditionally recoverable because of the 5% sharing provision of its fuel recovery mechanism.

In March 2022, the MPSC ordered Evergy Metro in a separate regulatory proceeding to file an adjustment to its fuel recovery mechanism in order to allow its wholesale revenues from the February 2021 winter weather event to be refunded to customers beginning in April 2022. The approximately $5 million decrease to the refund of February 2021 winter weather amounts requested by Evergy Metro due to jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms was not included in the adjustment and will be addressed in Evergy Metro's current rate case.

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In April 2022, the MPSC staff filed a motion to suspend the February 2021 winter weather event AAO procedural schedule for Evergy Metro and Evergy Missouri West pending the resolution of Evergy Missouri West's petition for a securitization financing order discussed below. The MPSC granted the motion to suspend the AAO procedural schedule in April 2022. Evergy Metro began refunding the Missouri portion of its wholesale revenues from the February 2021 winter weather event to customers through its fuel recovery mechanism in April 2022.

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

In ~~March~~November 2022, the MPSC issued a revised financing order authorizing Evergy Missouri West ~~filed a petition for financing order with the MPSC requesting authorization~~ to ~~finance~~issue securitized bonds to recover its extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather ~~event, including~~event. As part of the order, the MPSC found that Evergy Missouri West's costs were prudently incurred, that it should only be allowed to recover 95% of its extraordinary fuel and purchased power costs consistent with the 5% sharing provision of its fuel recovery mechanism, that it should be allowed to recover carrying costs ~~through~~incurred since February 2021 at Evergy Missouri West's long-term debt rate of 5.06% and approved a 15 year repayment period for the bonds with a 17 year legal maturity. As of March 31, 2023 and December 31, 2022, the value of Evergy Missouri West's February 2021 winter weather event regulatory asset was $313.0 million and $309.0 million, respectively. Evergy Missouri West will continue to record carrying charges on its February 2021 winter weather event regulatory asset until it issues the securitized bonds.

In January 2023, the Office of the Public Counsel (OPC) filed an appeal with the Missouri Court of Appeals, Western District, challenging the financing order regarding the treatment of income tax deductions, carrying costs and discount rates related to the financing of the extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather event. A final nonappealable financing order is required prior to the issuance of securitized bonds. ~~Evergy~~A decision by the Missouri ~~West has requested to repay the securitized bonds and collect the related amounts from customers over a period~~Court of ~~approximately 15 years from the date of issuance of the securitized bonds.~~

~~On August 1, 2022, Evergy Missouri West, MPSC staff and other intervenors filed a non-unanimous stipulation and agreement with the MPSC resolving certain issues~~Appeals, Western District, is currently expected in the ~~case. As part~~second half of 2023, though the stipulation and agreement, the parties agreed that the amount that Evergy Missouri West would be allowed to recover through securitization would be $306.1 million. This amount is inclusive of Evergy Missouri West’s fuel and purchased power expenses incurred during the February 2021 winter weather event, expected upfront financing costs associated with the securitization and carrying costs expected to be accrued until the estimated securitization bond issuance in early 2023. The $306.1 million is subject to change pending the resolution of certain intervenor issues in the case andtimeline for the ~~accrual of additional carrying charges in the event that the timing of the securitization bond issuance occurs beyond early 2023. The non-unanimous stipulation and agreement~~decision is ~~subject to the approval of the MPSC.~~uncertain.

~~An order from the MPSC regarding Evergy Missouri West's petition and the non-unanimous stipulation and agreement is expected no later than October 2022.~~

FERC Proceedings

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

Evergy Kansas Central TFR Annual Update

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

•$21.7 million decrease effective in March 2023; and

•$33.2 million increase effective in January ~~2022; and~~2022.

See "Evergy Kansas Central TFR Formal Challenge" within this Note 4 for more information regarding the March 2023 adjustment.

Evergy Kansas Central TFR Formal Challenge

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

In December 2022, FERC issued an order upholding in part, and denying in part, the formal challenge of Evergy Kansas Central's TFR by certain customers. As a result of this order, Evergy and Evergy Kansas Central recorded a $32.8 million regulatory liability on their consolidated balance sheets as of December 31, 2022 for the estimated refund of TFR revenue over-collections related to the calculation of Evergy Kansas Central's capital structure for rate years 2018 - 2022. In March 2023, Evergy Kansas Central refiled its annual update to include the refund of the

•Table of Contents~~$32.4 million increase~~

2020, 2021 and 2022 over-collections as part of its 2023 TFR effective in ~~January 2021.~~March 2023. In February 2023, certain Evergy Kansas Central TFR customers submitted a formal challenge requesting the refund of over-collections related to the 2018 and 2019 over-collections. A decision from FERC regarding this challenge is expected later in 2023.

Evergy Metro TFR Annual Update

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

•$8.6 million increase effective in January 2023; and

•$18.1 million increase effective in January ~~2022; and~~

•~~$3.9 million decrease effective in January 2021.~~2022.

5. ~~GOODWILL~~

GAAP requires goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. Evergy's impairment test for the $2,336.6 million of goodwill that was recorded as a result of the Great Plains Energy and Evergy Kansas Central merger was conducted as of May 1, 2022. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. Evergy's consolidated operations are considered 1 reporting unit for assessment of impairment,

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as management assesses financial performance and allocates resources on a consolidated basis. The determination of fair value of the reporting unit consisted of two valuation techniques: an income approach consisting of a discounted cash flow analysis and a market approach consisting of a determination of reporting unit invested capital using a market multiple derived from the historical earnings before interest, income taxes, depreciation and amortization and market prices of the stock of peer companies. The results of the two techniques were evaluated and weighted to determine a point within the range that management considered representative of fair value for the reporting unit. The fair value of the reporting unit exceeded the carrying amount, including goodwill. As a result, there was no impairment of goodwill.

6. PENSION PLANS AND POST-RETIREMENT BENEFITS

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

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

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

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

For the three months ended March 31, 2023, Evergy, Evergy Kansas Central and Evergy Metro recorded pension settlement benefits (costs) of ($15.9) million, $0.4 million and ($16.3) million, respectively. These settlement charges were the result of accelerated distributions as a result of employee retirements for certain plan participants. Evergy, Evergy Kansas Central and Evergy Metro deferred substantially all of the charges to regulatory assets or regulatory liabilities and expect to recover these amounts over future periods pursuant to regulatory agreements. For the three months ended March 31, 2022, Evergy, Evergy Kansas Central and Evergy Metro recorded no pension settlement charges.

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

Pension Benefits Post-Retirement Benefits
Three Months Ended June 30, 2022 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Components of net periodic benefit costs (millions)
Service cost $ 20.0 $ 7.7 $ 12.3 $ 0.7 $ 0.4 $ 0.3
Interest cost 19.8 9.7 10.0 2.0 1.0 0.9
Expected return on plan assets (26.0) (12.8) (14.1) (2.6) (1.6) (1.0)
Prior service cost 0.4 0.5 — 0.1 0.1 (0.3)
Recognized net actuarial loss 8.8 6.4 9.6 — — —
Net periodic benefit costs before regulatory adjustment and intercompany allocations 23.0 11.5 17.8 0.2 (0.1) (0.1)
Regulatory adjustment 15.0 2.8 5.7 (0.6) (0.7) 0.7
Intercompany allocations — (0.1) (3.9) — — (0.2)
Net periodic benefit costs (income) $ 38.0 $ 14.2 $ 19.6 $ (0.4) $ (0.8) $ 0.4

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		Pension Benefits						Post-Retirement Benefits							Pension Benefits						Post-Retirement Benefits
Year to Date June 30, 2022		Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Three Months Ended March 31, 2023														Three Months Ended March 31, 2023	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	Components of net periodic benefit costs	(millions)												Components of net periodic benefit costs	(millions)
Service cost	Service cost	$	39.9	$	15.4	$	24.5	$	1.5	$	0.8	$	0.7	Service cost	$	11.2	$	4.6	$	6.6	$	0.4	$	0.2	$	0.2
Interest cost	Interest cost	39.6		19.4		19.9		4.0		2.0		1.9		Interest cost	22.4		11.4		10.8		2.8		1.4		1.3
Expected return on plan assets	Expected return on plan assets	(52.0)		(25.6)		(28.2)		(5.1)		(3.2)		(1.9)		Expected return on plan assets	(21.8)		(11.0)		(10.8)		(3.0)		(1.5)		(1.4)
Prior service cost	Prior service cost	0.9		1.0		—		0.2		0.2		(0.7)		Prior service cost	0.5		0.5		—		—		—		(0.1)
Recognized net actuarial (gain)/loss		17.5		12.8		19.3		(0.1)		(0.1)		(0.2)

Recognized net actuarial gain														Recognized net actuarial gain	(5.6)		(0.8)		(4.6)		(1.0)		(0.5)		(0.5)
Settlement benefits (costs)														Settlement benefits (costs)	(15.9)		0.4		(16.3)		—		—		—
Net periodic benefit costs before regulatory adjustment and intercompany allocations	Net periodic benefit costs before regulatory adjustment and intercompany allocations	45.9		23.0		35.5		0.5		(0.3)		(0.2)		Net periodic benefit costs before regulatory adjustment and intercompany allocations	(9.2)		5.1		(14.3)		(0.8)		(0.4)		(0.5)
Regulatory adjustment	Regulatory adjustment	30.9		5.7		12.2		(1.2)		(1.4)		1.3		Regulatory adjustment	33.5		7.4		25.9		(0.1)		(0.6)		0.6
Intercompany allocations	Intercompany allocations	—		0.4		(8.4)		—		0.1		(0.3)		Intercompany allocations	—		(0.5)		(0.2)		—		0.1		—
Net periodic benefit costs (income)	Net periodic benefit costs (income)	$	76.8	$	29.1	$	39.3	$	(0.7)	$	(1.6)	$	0.8	Net periodic benefit costs (income)	$	24.3	$	12.0	$	11.4	$	(0.9)	$	(0.9)	$	0.1

Pension Benefits Post-Retirement Benefits
Three Months Ended June 30, 2021 Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Components of net periodic benefit costs (millions)
Service cost $ 21.2 $ 7.5 $ 13.7 $ 0.9 $ 0.4 $ 0.5
Interest cost 21.3 10.4 10.8 1.9 1.0 0.9
Expected return on plan assets (26.8) (13.5) (14.4) (2.2) (1.5) (0.6)
Prior service cost 0.5 0.5 — 0.2 0.1 (0.2)
Recognized net actuarial (gain)/loss 14.7 9.5 11.1 0.3 0.1 (0.1)
Net periodic benefit costs before regulatory adjustment and intercompany allocations 30.9 14.4 21.2 1.1 0.1 0.5
Regulatory adjustment 6.6 0.1 1.6 (1.3) (0.8) —
Intercompany allocations — 0.8 (6.3) — — (0.1)
Net periodic benefit costs (income) $ 37.5 $ 15.3 $ 16.5 $ (0.2) $ (0.7) $ 0.4


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

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

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

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~~Year to date June 30, 2022,~~For the three months ended March 31, 2023, Evergy, Evergy Kansas Central and Evergy Metro made pension contributions of ~~$19.9~~$16.4 million, $11.8 million and ~~$8.1~~$4.6 million, respectively. Evergy expects to make additional pension contributions of ~~$78.8~~$22.0 million in ~~2022~~2023 to satisfy the Employee Retirement Income Security Act of 1974, as amended (ERISA) funding requirements and KCC and MPSC rate orders, of which $14.4 million is expected to be paid by Evergy Kansas Central and ~~$64.4~~$7.6 million is expected to be paid by Evergy Metro.

~~Year to date June 30, 2022,~~For the three months ended March 31, 2023, Evergy, Evergy Kansas Central and Evergy Metro made post-retirement benefit contributions of $0.2 million, $0.1 million and $0.1 million, respectively. Evergy, Evergy Kansas Central and Evergy Metro expect to make additional contributions in ~~2022~~2023 of ~~$2.0~~$1.6 million, ~~$0.4~~$0.5 million and ~~$1.6~~$1.1 million, respectively, to the post-retirement benefit plans.

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

Evergy's $2.5 billion master credit facility expires in 2026. Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West have borrowing capacity under the master credit facility with specific sublimits for each

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borrower. These sublimits can be unilaterally adjusted by Evergy for each borrower provided the sublimits remain within minimum and maximum sublimits as specified in the facility. The applicable interest rates and commitment fees of the facility are subject to upward or downward adjustments, within certain limitations, if Evergy achieves, or fails to achieve, certain sustainability-linked targets based on two key performance indicator metrics: (i) Non-Emitting Generation Capacity and (ii) Diverse Supplier Spend (as defined in the facility).

A default by any borrower under the facility or one of its significant subsidiaries on other indebtedness totaling more than $100.0 million constitutes a default by that borrower under the facility. Under the terms of this facility, each of Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West is required to maintain a total indebtedness to total capitalization ratio, as defined in the facility, of not greater than 0.65 to 1.00 at all times. As of ~~June 30, 2022,~~March 31, 2023, Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West were in compliance with this covenant.

The following table summarizes the committed credit facilities (excluding receivable sale facilities discussed in Note 3) available to the Evergy Companies as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022.


				Amounts Drawn												Amounts Drawn
		Master Credit Facility		Commercial Paper		Letters of Credit		Cash Borrowings		Available Borrowings		Weighted Average Interest Rate on Short-Term Borrowings		Master Credit Facility		Commercial Paper		Letters of Credit		Cash Borrowings		Available Borrowings		Weighted Average Interest Rate on Short-Term Borrowings
June 30, 2022		(millions)
March 31, 2023													March 31, 2023	(millions)
Evergy, Inc.	Evergy, Inc.	$	450.0	$	109.5	$	0.7	$	—	$	339.8	1.87%	Evergy, Inc.	$	300.0	$	147.0	$	0.7	$	—	$	152.3	5.41%
Evergy Kansas Central	Evergy Kansas Central	1,000.0		728.5		0.1		—		271.4		1.91%	Evergy Kansas Central	800.0		323.0		—		—		477.0		5.46%
Evergy Metro(a)	Evergy Metro(a)	350.0		—		—		—		350.0		—%	Evergy Metro(a)	700.0		471.0		—		—		229.0		5.51%
Evergy Missouri West	Evergy Missouri West	700.0		690.5		—		—		9.5		1.92%	Evergy Missouri West	700.0		605.5		—		—		94.5		5.42%
Evergy(a)	Evergy(a)	$	2,500.0	$	1,528.5	$	0.8	$	—	$	970.7		Evergy(a)	$	2,500.0	$	1,546.5	$	0.7	$	—	$	952.8

December 31, 2021
December 31, 2022													December 31, 2022
Evergy, Inc.	Evergy, Inc.	$	700.0	$	358.0	$	0.7	$	—	$	341.3	0.34%	Evergy, Inc.	$	450.0	$	—	$	0.7	$	—	$	449.3	—%
Evergy Kansas Central	Evergy Kansas Central	750.0		406.0		0.1		—		343.9		0.41%	Evergy Kansas Central	1,000.0		772.1		—		—		227.9		4.91%
Evergy Metro	Evergy Metro	350.0		—		—		—		350.0		—%	Evergy Metro	350.0		111.0		—		—		239.0		5.02%
Evergy Missouri West	Evergy Missouri West	700.0		395.3		—		—		304.7		0.40%	Evergy Missouri West	700.0		449.2		—		—		250.8		4.84%
Evergy	Evergy	$	2,500.0	$	1,159.3	$	0.8	$	—	$	1,339.9		Evergy	$	2,500.0	$	1,332.3	$	0.7	$	—	$	1,167.0

(a) As of March 31, 2023, $297.7 million of Evergy Metro's commercial paper balances were classified as long-term debt on Evergy's and Evergy Metro's consolidated balance sheets. See Note 7 for additional information.

In February ~~2022,~~2023, Evergy, Inc. ~~entered into~~amended a $500.0 million unsecured Term Loan Credit Agreement (Term Loan Facility) that ~~expires~~originally expired in February ~~2023.~~2023 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 ~~June 30, 2022,~~March 31, 2023, Evergy had borrowed $500.0 million under the Term Loan ~~Facility. The weighted average interest rate for borrowings under the Term Loan~~ Facility ~~as of June 30, 2022,~~

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~~was 2.33%.~~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.

The weighted average interest rate for borrowings under the Term Loan Facility as of March 31, 2023, was 5.93%. The Term Loan Facility contains customary covenants, including one that sets the ratio of maximum allowed total indebtedness to total capitalization of not greater than 0.65 to 1.00, for Evergy and its subsidiaries on a consolidated basis. As of ~~June 30, 2022,~~March 31, 2023, Evergy was in compliance with this covenant.

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7. LONG-TERM DEBT

Mortgage Bonds

In March ~~2022,~~2023, Evergy ~~Missouri West entered into~~Kansas Central issued, at a discount, $400.0 million of 5.70% First Mortgage ~~Indenture and Deed of Trust, dated as of March 1, 2022 (Evergy Missouri West Mortgage Indenture)~~Bonds (FMBs), ~~establishing a first mortgage lien on substantially all of its present properties and certain after-acquired properties, subject to certain exceptions. In connection with the establishment~~maturing in 2053. The proceeds of the issuance were used to repay commercial paper borrowings and for general corporate purposes.

In April 2023, Evergy ~~Missouri West Mortgage Indenture, Evergy Missouri West~~Metro issued, ~~collateral mortgage bonds secured by the Evergy Missouri West Mortgage Indenture to serve as collateral for Evergy Missouri West's obligations under the following outstanding unsecured senior notes:~~

•~~$36.0~~at a discount, $300.0 million of ~~3.49% Series A,~~4.95% Mortgage Bonds, maturing ~~in 2025;~~

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

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

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

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

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

April 2033. The ~~collateral mortgage bonds were issued to the holders~~proceeds of the ~~unsecured senior notes, are only payable if~~issuance were used to repay Evergy ~~Missouri West defaults on~~Metro's commercial paper borrowings which were incurred to repay the ~~underlying unsecured senior notes and do not increase the~~$300.0 million principal amount of ~~outstanding debt for~~ Evergy ~~Missouri West.~~

Metro's 3.15% Senior Notes that matured in March 2023. As a result of this issuance, Evergy and Evergy Metro demonstrated their intent and ability to refinance the ~~above transactions,~~commercial paper and reflected the net proceeds of $297.7 million for this borrowing within long-term debt, net, on Evergy's and Evergy ~~Missouri West's outstanding senior notes have effectively become secured by the mortgage lien~~Metro's consolidated balance sheets as of the Evergy Missouri West Mortgage Indenture and rank equally and ratably with all of Evergy Missouri West's mortgage bonds, regardless of series, from time to time issued and outstanding under the Evergy Missouri West Mortgage Indenture.

~~Also in~~ March ~~2022, Evergy Missouri West issued, at a discount, $250.0 million of 3.75% First Mortgage Bonds, maturing in 2032.~~31, 2023.

Senior Notes

In March ~~2022,~~2023, Evergy ~~Missouri West~~Metro repaid its ~~$100.0~~$300.0 million of ~~3.74%~~3.15% Senior Notes at maturity.

~~In June 2022,~~

8. DERIVATIVE INSTRUMENTS

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

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

The Evergy Companies also engage in non-regulated energy marketing activity for trading purposes, primarily at Evergy Kansas Central, which focuses on seizing market opportunities to create value driven by expected changes in the market prices of commodities, primarily electricity and natural gas.

The Evergy Companies consider various qualitative factors, such as contract and marketplace attributes, in designating derivative instruments at inception. The Evergy Companies may elect the normal purchases and normal sales (NPNS) exception, which requires the effects of the derivative to be recorded when the underlying contract settles under accrual accounting. The Evergy Companies account for derivative instruments that are not designated as NPNS primarily as either economic hedges or trading contracts (non-hedging derivatives) which are recorded as assets or liabilities on the consolidated balance sheets at fair value. See Note 9 for additional information on the Evergy Companies' methods for assessing the fair value of derivative instruments. Changes in the fair value of non-hedging derivatives that are related to the Evergy Companies' regulated operations are deferred to a regulatory asset or regulatory liability when determined to be probable of future recovery or refund from customers. Recovery of the actual costs incurred by regulated activities will not impact earnings but will impact cash flows due to the timing of the recovery mechanism. Cash flows for all derivative instruments are classified as operating activities on the Evergy Companies' statements of cash flows, with the exception of cash flows for interest rate swap agreements accounted for as cash flows hedges of forecasted debt transactions, which are recorded as financing activities. Changes in the fair value of non-hedging derivatives that are not related to the Evergy Companies' regulated operations are recorded in operating revenues on the Evergy Companies' statements of income and comprehensive income.

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

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

March 31

December 31

Non-hedging derivatives

Notional volume unit of measure

2023

2022

Evergy

(millions)

Commodity contracts

Power

MWhs

26.0

67.2

Natural gas

MMBtu

367.6

772.7

Evergy Kansas Central

Commodity contracts

Power

MWhs

15.7

41.6

Natural gas

MMBtu

361.2

769.6

Evergy Metro

Commodity contracts

Power

MWhs

7.3

18.2

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


		March 31		December 31

Evergy		2023		2022
Non-hedging derivatives	Balance sheet location
Commodity contracts		(millions)
Power	Other assets - current	$	31.3	$	41.6
	Other assets - long-term	45.4		65.6
Natural gas	Other assets - current	112.0		221.0
	Other assets - long-term	1.1		1.6
Total derivative assets		$	189.8	$	329.8
Commodity contracts
Power	Other liabilities - current	$	25.9	$	41.0
	Other liabilities - long-term	42.1		61.5
Natural gas	Other liabilities - current	107.1		218.8
	Other liabilities - long-term	1.1		1.6
Total derivative liabilities		$	176.2	$	322.9

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		March 31		December 31

Evergy Kansas Central		2023		2022
Non-hedging derivatives	Balance sheet location
Commodity contracts		(millions)
Power	Other assets - current	$	27.7	$	36.7
	Other assets - long-term	45.4		65.6
Natural gas	Other assets - current	112.0		221.0
	Other assets - long-term	1.1		1.6
Total derivative assets		$	186.2	$	324.9
Commodity contracts
Power	Other liabilities - current	$	16.9	$	35.6
	Other liabilities - long-term	42.1		61.5
Natural gas	Other liabilities - current	104.4		215.1
	Other liabilities - long-term	1.1		1.6
Total derivative liabilities		$	164.5	$	313.8


		March 31		December 31

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



Total derivative assets		$	2.2	$	3.5
Commodity contracts
Power	Other liabilities - current	$	5.8	$	4.1



Total derivative liabilities		$	5.8	$	4.1

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


March 31, 2023	Evergy		Evergy Kansas Central		Evergy Metro
Derivative Assets	(millions)
Current
Gross amounts recognized	$	143.3	$	139.7	$	2.2
Gross amounts offset	(112.9)		(109.3)		(2.2)
Net amounts presented in other assets - current	$	30.4	$	30.4	$	—
Long-Term
Gross amounts recognized	$	46.5	$	46.5	$	—
Gross amounts offset	(17.9)		(17.9)		—
Net amounts presented in other assets - long-term	$	28.6	$	28.6	$	—
Derivative Liabilities
Current
Gross amounts recognized	$	133.0	$	121.3	$	5.8
Gross amounts offset	(111.3)		(107.7)		(2.2)
Net amounts presented in other liabilities - current	$	21.7	$	13.6	$	3.6
Long-Term
Gross amounts recognized	$	43.2	$	43.2	$	—
Gross amounts offset	(11.2)		(11.2)		—
Net amounts presented in other liabilities - long-term	$	32.0	$	32.0	$	—

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December 31, 2022	Evergy		Evergy Kansas Central		Evergy Metro

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

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



Three Months Ended March 31		2023		2022
Location of gain (loss)	Contract type
Evergy		(millions)
Operating revenues	Commodity	$	14.9	$	7.9
Total		$	14.9	$	7.9
Evergy Kansas Central
Operating revenues	Commodity	$	14.9	$	7.9
Total		$	14.9	$	7.9

Credit risk of the Evergy Companies' derivative instruments relates to the potential adverse financial impact resulting from non-performance by a counterparty of its ~~$287.5~~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 March 31, 2023, if counterparty groups completely failed to perform on contracts, Evergy's and Evergy Kansas Central's maximum exposure related to derivative assets was $50.3 million. As of March 31, 2023, the potential loss after the consideration of applicable master netting arrangements and collateral received for Evergy and Evergy Kansas Central was $37.5 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 March 31, 2023, was $39.9 million for which Evergy and Evergy Kansas Central have posted collateral of $3.9 million in the normal course of business. If the credit-risk-related contingent features underlying these agreements were triggered

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as of March 31, 2023, Evergy and Evergy Kansas Central could be required to post an additional $33.4 million of ~~5.292% Senior Notes at maturity.~~

~~Pollution Control Bonds~~

In July 2022, Evergy Metro remarketed its unsecured Series 2008 Environmental Improvement Revenue Refunding (EIRR) bonds maturing in 2038 totaling $23.4 million at a fixed rate of 3.50% through June 30, 2025.

collateral to their counterparties.

9. FAIR VALUE MEASUREMENTS

Values of Financial Instruments

GAAP establishes a hierarchical framework for disclosing the transparency of the inputs utilized in measuring assets and liabilities at fair value. Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy levels. In addition, the Evergy Companies measure certain investments that do not have a readily determinable fair value at net asset value (NAV), which are not included in the fair value hierarchy. Further explanation of these levels and NAV is summarized below.

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Level 1 – Quoted prices are available in active markets for identical assets or liabilities. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on public ~~exchanges.~~exchanges or exchange-traded derivative instruments.

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

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

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

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

Fair Value of Long-Term Debt

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


		June 30, 2022				December 31, 2021					March 31, 2023				December 31, 2022
		Book Value		Fair Value		Book Value		Fair Value			Book Value		Fair Value		Book Value		Fair Value
Long-term debt(a)	Long-term debt(a)	(millions)								Long-term debt(a)	(millions)
Evergy(b)	Evergy(b)	$	9,546.2	$	8,624.1	$	9,687.2	$	10,758.5	Evergy(b)	$	10,236.6	$	9,361.5	$	10,344.8	$	9,160.0
Evergy Kansas Central	Evergy Kansas Central	3,935.6		3,632.8		3,934.2		4,522.5		Evergy Kansas Central	4,331.4		3,939.3		3,936.9		3,389.4
Evergy Metro	Evergy Metro	2,925.8		2,843.2		2,925.0		3,400.8		Evergy Metro	2,924.9		2,739.9		2,926.6		2,661.7

(a) Includes current maturities.

(b) Book value as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, includes ~~$94.3~~$91.0 million and ~~$97.9~~$92.1 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger, which are not part of future principal payments and will amortize over the remaining life of the associated debt instrument.

4140

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Recurring Fair Value Measurements

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


Description	Description	June 30, 2022			Level 1		Level 2			Level 3			NAV			Description	March 31, 2023			Netting		Level 1		Level 2			Level 3			NAV
Evergy Kansas Central	Evergy Kansas Central		(millions)													Evergy Kansas Central		(millions)
Assets	Assets															Assets

Nuclear decommissioning trust(a)	Nuclear decommissioning trust(a)															Nuclear decommissioning trust(a)
Domestic equity funds	Domestic equity funds		$	120.4	$	106.1		$	—		$	—		$	14.3	Domestic equity funds		$	120.0	$	—	$	108.1		$	—		$	—		$	11.9
International equity funds	International equity funds		65.8		65.8			—			—			—		International equity funds		67.3		—		67.3			—			—			—
Core bond fund	Core bond fund		53.9		53.9			—			—			—		Core bond fund		52.9		—		52.9			—			—			—
High-yield bond fund	High-yield bond fund		26.5		26.5			—			—			—		High-yield bond fund		26.1		—		26.1			—			—			—
Emerging markets bond fund	Emerging markets bond fund		16.3		16.3			—			—			—		Emerging markets bond fund		16.6		—		16.6			—			—			—

Alternative investments fund	Alternative investments fund		33.4		—			—			—			33.4		Alternative investments fund		33.5		—		—			—			—			33.5
Real estate securities fund	Real estate securities fund		17.7		—			—			—			17.7		Real estate securities fund		18.3		—		—			—			—			18.3
Cash equivalents	Cash equivalents		0.5		0.5			—			—			—		Cash equivalents		0.4		—		0.4			—			—			—

Total nuclear decommissioning trust	Total nuclear decommissioning trust		334.5		269.1			—			—			65.4		Total nuclear decommissioning trust		335.1		—		271.4			—			—			63.7
Rabbi trust	Rabbi trust															Rabbi trust
Fixed income funds	Fixed income funds		16.6		16.6			—			—			—		Fixed income funds		15.1		—		15.1			—			—			—
Equity funds	Equity funds		7.2		7.2			—			—			—		Equity funds		7.4		—		7.4			—			—			—
Combination debt/equity/other fund	Combination debt/equity/other fund		2.0		2.0			—			—			—		Combination debt/equity/other fund		1.8		—		1.8			—			—			—
Cash equivalents	Cash equivalents		0.2		0.2			—			—			—		Cash equivalents		0.1		—		0.1			—			—			—
Total rabbi trust	Total rabbi trust		26.0		26.0			—			—			—		Total rabbi trust		24.4		—		24.4			—			—			—
Total			$	360.5	$	295.1		$	—		$	—		$	65.4
Derivative instruments - commodity contracts(b)																Derivative instruments - commodity contracts(b)
Power																Power		48.1		(25.0)		21.0			36.5			15.6			—
Natural gas																Natural gas		10.9		(102.2)		111.9			1.2			—			—
Total derivative assets																Total derivative assets		59.0		(127.2)		132.9			37.7			15.6			—
Total assets																Total assets		418.5		(127.2)		428.7			37.7			15.6			63.7
Liabilities																Liabilities
Derivative instruments - commodity contracts(b)																Derivative instruments - commodity contracts(b)
Power																Power		42.3		(16.7)		12.4			41.4			5.2			—
Natural gas																Natural gas		3.3		(102.2)		104.4			1.1			—			—
Total derivative liabilities																Total derivative liabilities		45.6		(118.9)		116.8			42.5			5.2			—
Total liabilities																Total liabilities		$	45.6	$	(118.9)	$	116.8		$	42.5		$	5.2		$	—
Evergy Metro	Evergy Metro															Evergy Metro
Assets	Assets															Assets
Nuclear decommissioning trust(a)	Nuclear decommissioning trust(a)															Nuclear decommissioning trust(a)
Equity securities	Equity securities		$	260.4	$	260.4		$	—		$	—		$	—	Equity securities		$	260.6	$	—	$	260.6		$	—		$	—		$	—
Debt securities	Debt securities															Debt securities
U.S. Treasury	U.S. Treasury		43.8		43.8			—			—			—		U.S. Treasury		44.5		—		44.5			—			—			—
U.S. Agency			0.4		—			0.4			—			—

State and local obligations	State and local obligations		5.2		—			5.2			—			—		State and local obligations		4.3		—		—			4.3			—			—
Corporate bonds	Corporate bonds		40.2		—			40.2			—			—		Corporate bonds		40.4		—		—			40.4			—			—
Foreign governments	Foreign governments		0.1		—			0.1			—			—		Foreign governments		0.1		—		—			0.1			—			—
Cash equivalents	Cash equivalents		3.0		3.0			—			—			—		Cash equivalents		4.5		—		4.5			—			—			—

Total nuclear decommissioning trust	Total nuclear decommissioning trust		353.1		307.2			45.9			—			—		Total nuclear decommissioning trust		354.4		—		309.6			44.8			—			—
Self-insured health plan trust(b)
Self-insured health plan trust(c)																Self-insured health plan trust(c)
Equity securities	Equity securities		1.6		1.6			—			—			—		Equity securities		1.7		—		1.7			—			—			—
Debt securities	Debt securities		7.7		2.3			5.4			—			—		Debt securities		6.6		—		1.8			4.8			—			—
Cash and cash equivalents	Cash and cash equivalents		2.9		2.9			—			—			—		Cash and cash equivalents		3.7		—		3.7			—			—			—
Total self-insured health plan trust	Total self-insured health plan trust		12.2		6.8			5.4			—			—		Total self-insured health plan trust		12.0		—		7.2			4.8			—			—
Total			$	365.3	$	314.0		$	51.3		$	—		$	—
Other Evergy
Assets
Other Evergy investments
Rabbi trusts
Core bond fund			$	11.1	$	11.1		$	—		$	—		$	—
Cash and cash equivalents			0.1		0.1			—			—			—
Total rabbi trusts			$	11.2	$	11.2		$	—		$	—		$	—
Derivative instruments - commodity contracts(b)																Derivative instruments - commodity contracts(b)
Power																Power		—		(2.2)		—			—			2.2			—

Total derivative assets																Total derivative assets		—		(2.2)		—			—			2.2			—
Total assets																Total assets		366.4		(2.2)		316.8			49.6			2.2			—
Liabilities																Liabilities
Derivative instruments - commodity contracts(b)																Derivative instruments - commodity contracts(b)
Power																Power		3.6		(2.2)		—			—			5.8			—

Total derivative liabilities																Total derivative liabilities		3.6		(2.2)		—			—			5.8			—
Total liabilities																Total liabilities		$	3.6	$	(2.2)	$	—		$	—		$	5.8		$	—

Evergy
Assets
Nuclear decommissioning trust(a)			$	687.6	$	576.3		$	45.9		$	—		$	65.4
Rabbi trusts			37.2		37.2			—			—			—
Self-insured health plan trust(b)			12.2		6.8			5.4			—			—

Total			$	737.0	$	620.3		$	51.3		$	—		$	65.4

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Description	March 31, 2023			Netting		Level 1		Level 2			Level 3			NAV
Other Evergy
Assets

Rabbi trusts
Core bond fund		$	9.3	$	—	$	9.3		$	—		$	—		$	—

Total rabbi trusts		9.3		—		9.3			—			—			—
Derivative instruments - commodity contracts(b)
Power		—		(1.4)		—			—			1.4			—

Total derivative assets		—		(1.4)		—			—			1.4			—
Total assets		9.3		(1.4)		9.3			—			1.4			—
Liabilities
Derivative instruments
Power		1.8		(1.4)		1.3			—			1.9			—
Natural gas		2.7		—		—			2.7			—			—
Total derivative liabilities		4.5		(1.4)		1.3			2.7			1.9			—
Total liabilities		$	4.5	(1.4)		$	1.3		$	2.7		$	1.9		$	—
Evergy
Assets
Nuclear decommissioning trust(a)		$	689.5	$	—	$	581.0		$	44.8		$	—		$	63.7
Rabbi trusts		33.7		—		33.7			—			—			—
Self-insured health plan trust(c)		12.0		—		7.2			4.8			—			—

Derivative instruments - commodity contracts(b)
Power		48.1		(28.6)		21.0			36.5			19.2			—
Natural gas		10.9		(102.2)		111.9			1.2			—			—
Total derivative assets		59.0		(130.8)		132.9			37.7			19.2			—
Total assets		794.2		(130.8)		754.8			87.3			19.2			63.7
Liabilities
Derivative instruments - commodity contracts(b)
Power		47.7		(20.3)		13.7			41.4			12.9			—
Natural gas		6.0		(102.2)		104.4			3.8			—			—
Total derivative liabilities		53.7		(122.5)		118.1			45.2			12.9			—
Total liabilities		$	53.7	$	(122.5)	$	118.1		$	45.2		$	12.9		$	—

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Description	Description	December 31, 2021			Level 1			Level 2			Level 3			NAV			Description	December 31, 2022			Netting		Level 1			Level 2			Level 3			NAV
Evergy Kansas Central	Evergy Kansas Central		(millions)														Evergy Kansas Central		(millions)
Assets	Assets																Assets
Nuclear decommissioning trust(a)	Nuclear decommissioning trust(a)																Nuclear decommissioning trust(a)
Domestic equity funds	Domestic equity funds		$	140.4		$	126.5		$	—		$	—		$	13.9	Domestic equity funds		$	112.5	$	—		$	100.4		$	—		$	—		$	12.1
International equity funds	International equity funds		74.0			74.0			—			—			—		International equity funds		62.9		—			62.9			—			—			—
Core bond fund	Core bond fund		58.1			58.1			—			—			—		Core bond fund		51.0		—			51.0			—			—			—
High-yield bond fund	High-yield bond fund		29.6			29.6			—			—			—		High-yield bond fund		25.3		—			25.3			—			—			—
Emerging markets bond fund	Emerging markets bond fund		18.0			18.0			—			—			—		Emerging markets bond fund		16.0		—			16.0			—			—			—

Alternative investments fund	Alternative investments fund		32.7			—			—			—			32.7		Alternative investments fund		31.8		—			—			—			—			31.8
Real estate securities fund	Real estate securities fund		15.2			—			—			—			15.2		Real estate securities fund		18.9		—			—			—			—			18.9
Cash equivalents	Cash equivalents		0.4			0.4			—			—			—		Cash equivalents		0.4		—			0.4			—			—			—
Total nuclear decommissioning trust	Total nuclear decommissioning trust		368.4			306.6			—			—			61.8		Total nuclear decommissioning trust		318.8		—			256.0			—			—			62.8
Rabbi trust	Rabbi trust																Rabbi trust
Fixed income funds	Fixed income funds		19.6			19.6			—			—			—		Fixed income funds		15.6		—			15.6			—			—			—
Equity funds	Equity funds		9.5			9.5			—			—			—		Equity funds		7.3		—			7.3			—			—			—
Combination debt/equity/other fund	Combination debt/equity/other fund		2.4			2.4			—			—			—		Combination debt/equity/other fund		1.9		—			1.9			—			—			—
Cash equivalents	Cash equivalents		0.2			0.2			—			—			—		Cash equivalents		0.1		—			0.1			—			—			—
Total rabbi trust	Total rabbi trust		31.7			31.7			—			—			—		Total rabbi trust		24.9		—			24.9			—			—			—
Total			$	400.1		$	338.3		$	—		$	—		$	61.8
Derivative instruments - commodity contracts(b)																	Derivative instruments - commodity contracts(b)
Power																	Power		42.6		(59.7)			45.5			46.5			10.3			—
Natural gas																	Natural gas		7.3		(215.3)			222.5			0.1			—			—
Total derivative assets																	Total derivative assets		49.9		(275.0)			268.0			46.6			10.3			—
Total assets																	Total assets		393.6		(275.0)			548.9			46.6			10.3			62.8
Liabilities																	Liabilities
Derivative instruments - commodity contracts(b)																	Derivative instruments - commodity contracts(b)
Power																	Power		46.6		(50.5)			34.0			55.9			7.2			—
Natural gas																	Natural gas		1.4		(215.3)			216.6			0.1			—			—
Total derivative liabilities																	Total derivative liabilities		48.0		(265.8)			250.6			56.0			7.2			—
Total liabilities																	Total liabilities		$	48.0	$	(265.8)		$	250.6		$	56.0		$	7.2		$	—
Evergy Metro	Evergy Metro																Evergy Metro
Assets	Assets																Assets
Nuclear decommissioning trust(a)	Nuclear decommissioning trust(a)																Nuclear decommissioning trust(a)
Equity securities	Equity securities		$	299.2		$	299.2		$	—		$	—		$	—	Equity securities		$	243.4	$	—		$	243.4		$	—		$	—		$	—
Debt securities	Debt securities																Debt securities
U.S. Treasury	U.S. Treasury		46.1			46.1			—			—			—		U.S. Treasury		40.7		—			40.7			—			—			—
U.S. Agency	U.S. Agency		0.4			—			0.4			—			—		U.S. Agency		0.4		—			0.4			—			—			—
State and local obligations	State and local obligations		4.0			—			4.0			—			—		State and local obligations		4.2		—			—			4.2			—			—
Corporate bonds	Corporate bonds		43.7			—			43.7			—			—		Corporate bonds		39.1		—			—			39.1			—			—
Foreign governments	Foreign governments		0.1			—			0.1			—			—		Foreign governments		0.1		—			—			0.1			—			—
Cash equivalents	Cash equivalents		6.8			6.8			—			—			—		Cash equivalents		6.6		—			6.6			—			—			—

Total nuclear decommissioning trust	Total nuclear decommissioning trust		400.3			352.1			48.2			—			—		Total nuclear decommissioning trust		334.5		—			291.1			43.4			—			—
Self-insured health plan trust(b)
Self-insured health plan trust(c)																	Self-insured health plan trust(c)
Equity securities	Equity securities		2.0			2.0			—			—			—		Equity securities		1.6		—			1.6			—			—			—
Debt securities	Debt securities		8.7			2.7			6.0			—			—		Debt securities		8.0		—			2.5			5.5			—			—
Cash and cash equivalents	Cash and cash equivalents		1.8			1.8			—			—			—		Cash and cash equivalents		1.6		—			1.6			—			—			—
Total self-insured health plan trust	Total self-insured health plan trust		12.5			6.5			6.0			—			—		Total self-insured health plan trust		11.2		—			5.7			5.5			—			—
Total			$	412.8		$	358.6		$	54.2		$	—		$	—
Other Evergy
Assets
Other Evergy investments
Equity securities(c)			$	31.4		$	—		$	31.4		$	—		$	—
Total other Evergy investments			31.4			—			31.4			—			—
Rabbi trusts
Core bond fund			12.5			12.5			—			—			—
Total rabbi trusts			12.5			12.5			—			—			—
Total			$	43.9		$	12.5		$	31.4		$	—		$	—
Derivative instruments - commodity contracts(b)																	Derivative instruments - commodity contracts(b)
Power																	Power		—		(3.5)			—			—			3.5			—

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

Evergy
Assets
Nuclear decommissioning trust(a)			$	768.7		$	658.7		$	48.2		$	—		$	61.8
Rabbi trusts			44.2			44.2			—			—			—
Self-insured health plan trust(b)			12.5			6.5			6.0			—			—
Other Evergy investments(c)			31.4			—			31.4			—			—
Total			$	856.8		$	709.4		$	85.6		$	—		$	61.8

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

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



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

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

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

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

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

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

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

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

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


		June 30, 2022				December 31, 2021				June 30, 2022			March 31, 2023				December 31, 2022				March 31, 2023
		Fair		Unfunded		Fair		Unfunded		Redemption	Length of		Fair		Unfunded		Fair		Unfunded		Redemption	Length of
		Value		Commitments		Value		Commitments		Frequency	Settlement		Value		Commitments		Value		Commitments		Frequency	Settlement
Evergy Kansas Central	Evergy Kansas Central	(millions)										Evergy Kansas Central	(millions)
Nuclear decommissioning trust:	Nuclear decommissioning trust:											Nuclear decommissioning trust:
Domestic equity funds	Domestic equity funds	$	14.3	$	1.7	$	13.9	$	1.7	(a)	(a)	Domestic equity funds	$	11.9	$	1.5	$	12.1	$	1.5	(a)	(a)
Alternative investments fund(b)	Alternative investments fund(b)	33.4		—		32.7		—		Quarterly	65 days	Alternative investments fund(b)	33.5		—		31.8		—		Quarterly	65 days
Real estate securities fund(b)	Real estate securities fund(b)	17.7		—		15.2		—		Quarterly	65 days	Real estate securities fund(b)	18.3		—		18.9		—		Quarterly	65 days

Total Evergy investments at NAV	Total Evergy investments at NAV	$	65.4	$	1.7	$	61.8	$	1.7			Total Evergy investments at NAV	$	63.7	$	1.5	$	62.8	$	1.5

(a)This investment is in 5five long-term private equity funds that do not permit early withdrawal. Investments in these funds cannot be distributed until the underlying investments have been liquidated, which may take years from the date of initial liquidation. ~~NaN~~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 3three 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 table summarizes the net unrealized gains (losses) for the Evergy Companies' nuclear decommissioning trusts and rabbi trusts.


		Three Months Ended June 30				Year to Date June 30
		2022		2021		2022		2021
Three Months Ended March 31										Three Months Ended March 31		2023		2022
Evergy	Evergy	(millions)						Evergy			(millions)
Nuclear decommissioning trust - equity securities	Nuclear decommissioning trust - equity securities	$	(36.8)	$	34.7	$	(71.6)	$	67.8	Nuclear decommissioning trust - equity securities		$	29.5	$	(34.8)
Nuclear decommissioning trust - debt securities	Nuclear decommissioning trust - debt securities	(3.6)		1.7		(10.1)		(3.4)		Nuclear decommissioning trust - debt securities		2.1		(6.5)
Rabbi trusts - equity securities	Rabbi trusts - equity securities	(3.3)		1.0		(5.7)		(0.3)		Rabbi trusts - equity securities		1.6		(2.4)
Total	Total	$	(43.7)	$	37.4	$	(87.4)	$	64.1	Total		$	33.2	$	(43.7)
Evergy Kansas Central	Evergy Kansas Central									Evergy Kansas Central
Nuclear decommissioning trust - equity securities	Nuclear decommissioning trust - equity securities	$	(13.4)	$	17.3	$	(30.1)	$	31.6	Nuclear decommissioning trust - equity securities		$	14.1	$	(16.7)
Rabbi trust - equity securities	Rabbi trust - equity securities	(2.6)		0.8		(4.2)		—		Rabbi trust - equity securities		1.3		(1.6)
Total	Total	$	(16.0)	$	18.1	$	(34.3)	$	31.6	Total		$	15.4	$	(18.3)
Evergy Metro	Evergy Metro									Evergy Metro
Nuclear decommissioning trust - equity securities	Nuclear decommissioning trust - equity securities	$	(23.4)	$	17.4	$	(41.5)	$	36.2	Nuclear decommissioning trust - equity securities		$	15.4	$	(18.1)
Nuclear decommissioning trust - debt securities	Nuclear decommissioning trust - debt securities	(3.6)		1.7		(10.1)		(3.4)		Nuclear decommissioning trust - debt securities		2.1		(6.5)
Total	Total	$	(27.0)	$	19.1	$	(51.6)	$	32.8	Total		$	17.5	$	(24.6)

~~Table of Contents~~

10. COMMITMENTS AND CONTINGENCIES

Environmental Matters

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

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evolved over time. These laws, regulations, interpretations and actions can also change, restrict or otherwise impact the Evergy Companies' operations or financial results. The failure to comply with these laws, regulations, interpretations and actions could result in the assessment of administrative, civil and criminal penalties and the imposition of remedial requirements. The Evergy Companies believe that all 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 ~~Interstate Transport State Implementation Plans (ITSIPs)~~ITSIPs in 2018 to comply with the "Good Neighbor ~~Provisions"~~Provision" of the Clean Air Act (CAA). The EPA did not act on these ITSIP submissions by the deadline established in the CAA and ~~was challenged in a court filing in May 2021~~entered consent decrees establishing deadlines to ~~address them.~~take final action on various ITSIPs. In February 2022, the EPA published a proposed ~~disapprovals~~rule to disapprove of ITSIPs ~~for~~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. ~~In June 2022, the Missouri Department of Natural Resources (MDNR) announced they intended to submit~~MDNR submitted a supplemental ~~SIP~~ITSIP to the EPA on November 1, 2022. In February 2023, the EPA published a final rule disapproving the ITSIPs submitted by 19 states, including the final disapproval of the Missouri and ~~placed~~Oklahoma ITSIPs. In April 2023, the ~~document on public notice until August 18, 2022.~~Attorneys General of Missouri and Oklahoma have filed Petitions for Review in the U.S. 8th and 10th Circuit Courts of Appeals, respectively, challenging the EPA disapproval.

Ozone Interstate Transport Federal Implementation Plans (ITFIP)

In April 2022, the EPA published in the Federal Register the proposed ~~federal implementation plan (FIP)~~ITFIP to resolve outstanding "Good Neighbor" obligations with respect to the 2015 Ozone NAAQS for 26 states including Missouri and Oklahoma. This ~~FIP~~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.~~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 ~~100MW,~~100 MW, as well

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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 ~~FIP~~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 ~~are in the process of reviewing the proposed FIP and~~ 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. While the Evergy Companies are continuing to evaluate the impacts of the ITFIP, there are uncertainties beginning in 2030 regarding the implementation of dynamic budgeting and reduced banking that could have an impact on their operations and the cost to comply could be material.

Particulate Matter and Ozone National Ambient Air Quality Standards

In January 2023, the EPA proposed strengthening the primary annual PM2.5 (particulate matter less than 2.5 microns in diameter) NAAQS. The EPA is proposing to lower the primary annual PM2.5 NAAQS from 12.0 µg/m3 (micrograms per cubic meter) to a level that would be between 9.0 and 10.0 µg/m3. The EPA is proposing to retain the other PM NAAQS at their current levels. The EPA is also in the process of reconsidering its December 2020 ~~decisions~~decision to retain each of the Ozone NAAQS at the level set in ~~2015 and the annual and 24-hour PM2.5 NAAQS at the levels set in 2012.~~2015. Due to uncertainty regarding

~~Table of Contents~~

the ~~proposed FIP and~~ potential lowering of the ozone and ~~PM2.5~~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 ~~the FIP and/or a~~ lower future ozone or ~~PM2.5~~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 Environmental (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 ~~intended to submit~~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. ~~However, in July~~As a result, on August 30, 2022, the EPA published "finding of failure" with respect to Missouri ~~Air Conservation Commission (MACC) denied adoption~~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 ~~SIP revision. At this time, it is unknown when or if~~EPA to issue a Regional Haze federal implementation plan (FIP) for each state unless the ~~MACC will adopt the proposed SIP revision~~state submits and the ~~submittal timeline to~~EPA approves a revised SIP that meets all applicable requirements before the EPA ~~is unclear.~~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 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~~Kansas Department Health and Environment (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 March 2023, several environmental organizations notified the EPA of their intent to sue for failure of the EPA to timely approve or disapprove of the SIP revisions submitted by Kansas and seven other states.

Greenhouse Gases

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

In July 2019, the EPA published the final Affordable Clean Energy (ACE) rule in the Federal Register. This rule contained emission guidelines for GHG emissions from existing electric utility generating units (EGUs) and revisions to emission guideline implementing regulations. The rule defined the "best system of emission reduction" (BSER) for GHG emissions from existing coal-fired EGUs as on-site, heat-rate efficiency improvements. In conjunction with the finalization of the ACE rule, the EPA repealed its previously adopted Clean Power Plan (CPP) on the basis that the EPA had exceeded its statutory authority under CAA section 111(d) by defining BSER through generation shifting. A number of states and industry parties filed petitions for review in the D.C. Circuit, challenging the EPA's repeal of the CPP and its enactment of the ACE rule, and in January 2021, the D.C. Circuit issued a decision holding that CAA section 111(d) could be read in a manner that allows the EPA to define BSER as including generation shifting. The D.C. Circuit therefore vacated both the EPA's repeal of the CPP and its replacement of that rule with the ACE rule, and remanded them to the EPA for further consideration. In October 2021, the Supreme Court granted petitions for certiorari to review the D.C. Circuit decision. The Supreme Court issued its decision in June 2022, reversing the D.C. Circuit's decisions and holding that, absent specific authorization from Congress, the EPA lacks authority to define BSER through generation shifting. Given that the Supreme Court found the CPP to be unlawful and that the deadlines established in the ACE rule have passed, neither rule is in effect following the Supreme Court's ruling. In June 2022,2023, the EPA announced its intent to propose GHG regulations that would apply to new and existing EGUs by ~~March~~the end of the second quarter 2023.

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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 5th Circuit (5th 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 ~~release~~issue a proposed ~~rulemaking~~rule in ~~September~~the fall of 2022 to address the vacated limitations for legacy wastewater and landfill leachate. ~~Future ELG modifications~~This proposed rule was issued in pre-publication format published in the Federal Register in March 2023. This proposed rulemaking establishes the requirement for ~~the best available technology economically achievable for the~~zero liquid discharge of ~~legacy wastewater and landfill leachate are likely and could be material to the Evergy Companies.~~

~~In October 2020, the EPA published the final ELG reconsideration rule. This rule adjusts numeric limits for~~ flue gas desulfurization (FGD) wastewater and ~~adds a 10% volumetric purge limit for~~ bottom ash transport ~~water. The timeline for final FGD~~water as well as additional restrictions on coal combustion residual landfill leachate. Legacy wastewater ~~compliance~~ is ~~as soon as possible on or after one year following publication of the final rule~~addressed in the ~~Federal Register~~proposal but ~~no later than December 31, 2025. In August 2021,~~referred to state regulators to enforce limitations according to the EPA published notice in the Federal Register that it is initiating a supplemental rulemaking to revise the ELG regulations after completing review of the reconsideration rule as a result of an executive order from President Biden. As part of the rulemaking process, the EPA will determine if more stringent limitations and standards are appropriate. The 2020 ELG reconsideration rule will remain in effect while the EPA undertakes this new rulemaking.

permit writers' best professional judgement. The Evergy Companies have reviewed the ~~2020 ELG reconsideration~~proposed modifications to limitations on FGD wastewater and bottom ash transport water and if the regulation ~~and~~is finalized as proposed, the ~~costs to comply with these changes are~~Evergy Companies do not ~~expected~~believe the impact to be material. ~~However,~~Modifications for best available technology economically available for the ~~Evergy Companies cannot predict what revisions the EPA may make under its supplemental rulemaking to revise the ELG regulations, and compliance costs associated with any revisions~~discharge of landfill leachate could be ~~material.~~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), ~~which was promulgated in 2020,~~ the EPA and the U.S. Army Corps of Engineers announced that they had halted implementation of the NWPR nationwide, and were interpreting "Waters of the United States" consistent with the regulatory regime that was in place prior to 2015. In December 2021, the EPA and the Department of the Army published a proposed rule that would formally repeal the NWPR and revise the definition of ~~“Waters~~"Waters of the United ~~States” to restore~~States." In December 2022, the ~~definitions~~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. A case is also pending in the Supreme Court regarding the proper scope of "Waters of the United States" that ~~were in place prior to 2015. A~~could affect the final ~~rule is expected in August 2022.~~rule. The Evergy Companies ~~have reviewed~~are reviewing the ~~proposed rule~~final rulemaking and awaiting the Supreme Court's decision. The impact on ~~their~~the Evergy Companies' operations or consolidated financial results are not expected to be material. A second rulemaking is expected in the future which will replace the Navigable Waters Protection Rule. The cost to comply with any future rulemaking that replaces the Navigable Waters Protection Rule could be material to the Evergy Companies.

Regulation of Coal Combustion Residuals

In the course of operating their coal generation plants, the Evergy Companies produce coal combustion residuals (CCRs), including fly ash, gypsum and bottom ash. The EPA published a rule to regulate CCRs in April 2015 that requires additional CCR handling, processing and storage equipment and closure of certain ash disposal units. In 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. Some CCR units at Lawrence Energy Center and Sibley ~~Generating~~ Station have moved into corrective action. In January 2022, the EPA issued a "Notice of Potential Violation" to the Tecumseh Energy Center (TEC) suggesting a closed CCR impoundment should enter corrective action. In November 2022, Evergy agreed to a Consent Agreement and Final Order (CAFO) with the EPA Region 7 addressing the alleged potential violation. In the CAFO, Evergy agreed to re-open the TEC CCR impoundment for further assessment of groundwater. As a result of the further assessments, the TEC impoundment entered groundwater corrective actions in March 2023. It is possible that the other CCR units at other generation stations could move into corrective action based on the EPA CCR rule interpretations, enforcement actions, or execution of the Evergy Companies' CCR strategy. The cost to comply with these proposed determinations by the EPA could be material.

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The Evergy Companies have recorded ~~Asset Retirement Obligations (AROs)~~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.

11. RELATED PARTY TRANSACTIONS AND RELATIONSHIPS

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

Jointly-Owned Plants and Shared Services

Employees of Evergy Kansas Central and Evergy Metro manage Evergy Missouri West's business and operate its facilities at cost, including Evergy Missouri West's 18% ownership interest in Evergy Metro's Iatan Nos. 1 and 2. Employees of Evergy Kansas Central manage ~~Jeffrey Energy Center (JEC)~~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 June 30				Year to Date June 30
		2022		2021		2022		2021
Three Months Ended March 31										Three Months Ended March 31		2023		2022
		(millions)									(millions)
Evergy Kansas Central billings to Evergy Missouri West	Evergy Kansas Central billings to Evergy Missouri West	$	7.2	$	7.3	$	14.6	$	16.8	Evergy Kansas Central billings to Evergy Missouri West		$	6.2	$	7.4
Evergy Metro billings to Evergy Missouri West	Evergy Metro billings to Evergy Missouri West	32.3		33.1		65.0		67.8		Evergy Metro billings to Evergy Missouri West		26.8		32.7
Evergy Kansas Central billings to Evergy Metro	Evergy Kansas Central billings to Evergy Metro	6.9		7.1		13.5		17.0		Evergy Kansas Central billings to Evergy Metro		10.9		6.6
Evergy Metro billings to Evergy Kansas Central	Evergy Metro billings to Evergy Kansas Central	31.3		28.2		64.7		53.9		Evergy Metro billings to Evergy Kansas Central		28.9		33.4

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.

~~At June 30,~~As of March 31, 2023, Evergy Metro had no outstanding receivables or payables under the money pool. As of December 31, 2022, Evergy Metro had a ~~$14.0~~$31.0 million outstanding receivable from Evergy Missouri West under the money pool. AtAs of March 31, 2023 and December 31, ~~2021,~~2022, Evergy ~~Metro~~Kansas Central had ~~a $155.0 million~~no outstanding ~~receivable from Evergy Missouri West~~receivables or payables under the money pool.

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Related Party Net Receivables and Payables

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


		June 30		December 31			March 31		December 31
		2022		2021			2023		2022
Evergy Kansas Central	Evergy Kansas Central	(millions)				Evergy Kansas Central	(millions)
Net payable to Evergy	Net payable to Evergy	$	(13.5)	$	(2.2)	Net payable to Evergy	$	(12.6)	$	(12.7)
Net payable to Evergy Metro	Net payable to Evergy Metro	(14.9)		(14.5)		Net payable to Evergy Metro	(22.1)		(15.7)
Net receivable from Evergy Missouri West	Net receivable from Evergy Missouri West	8.5		10.4		Net receivable from Evergy Missouri West	5.9		7.4

Evergy Metro	Evergy Metro					Evergy Metro
Net receivable from Evergy	Net receivable from Evergy	$	16.6	$	8.7	Net receivable from Evergy	$	17.2	$	16.3
Net receivable from Evergy Kansas Central	Net receivable from Evergy Kansas Central	14.9		14.5		Net receivable from Evergy Kansas Central	22.2		15.7
Net receivable from Evergy Missouri West	Net receivable from Evergy Missouri West	90.5		254.5		Net receivable from Evergy Missouri West	84.5		137.5

Tax Allocation Agreement

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


		June 30		December 31			March 31		December 31
		2022		2021			2023		2022
Evergy Kansas Central	Evergy Kansas Central	(millions)				Evergy Kansas Central	(millions)
Income taxes receivable from (payable to) Evergy		$	(21.2)	$	9.6
Income taxes payable to Evergy						Income taxes payable to Evergy	$	(30.7)	$	(10.3)

Evergy Metro	Evergy Metro					Evergy Metro
Income taxes receivable from (payable to) Evergy		$	9.0	$	(2.5)
Income taxes receivable from Evergy						Income taxes receivable from Evergy	$	3.7	$	0.2

12. TAXES

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

Evergy
Three Months Ended
June 30 Year to Date
June 30
2022 2021 2022 2021
Current income taxes (millions)
Federal $ 13.5 $ 4.9 $ 25.0 $ 6.0
State 2.1 (2.4) 1.7 (0.5)
Total 15.6 2.5 26.7 5.5
Deferred income taxes
Federal 8.4 15.0 4.5 32.7
State (0.2) 3.2 3.0 7.0
Total 8.2 18.2 7.5 39.7
Investment tax credit
Deferral — 0.4 2.7 0.4
Amortization (1.7) (1.5) (3.3) (3.0)
Total (1.7) (1.1) (0.6) (2.6)
Income tax expense $ 22.1 $ 19.6 $ 33.6 $ 42.6

~~Table of Contents~~

Evergy Kansas Central
Three Months Ended
June 30 Year to Date
June 30
2022 2021 2022 2021
Current income taxes (millions)
Federal $ 28.9 $ 12.0 $ 36.8 $ 19.5
State (1.1) 0.3 (0.9) 1.5
Total 27.8 12.3 35.9 21.0
Deferred income taxes
Federal (21.9) (5.7) (30.4) 1.0
State (0.5) 0.6 1.8 2.9
Total (22.4) (5.1) (28.6) 3.9
Investment tax credit
Deferral — 0.4 2.7 0.4
Amortization (1.0) (1.1) (2.0) (2.2)
Total (1.0) (0.7) 0.7 (1.8)
Income tax expense $ 4.4 $ 6.5 $ 8.0 $ 23.1


Evergy Metro
Evergy										Evergy
		Three Months Ended June 30				Year to Date June 30
		2022		2021		2022		2021
Three Months Ended March 31										Three Months Ended March 31	2023		2022
Current income taxes	Current income taxes	(millions)								Current income taxes	(millions)
Federal	Federal	$	(6.9)	$	21.0	$	2.5	$	48.1	Federal	$	5.0	$	11.5
State	State	1.0		—		1.1		1.2		State	4.7		(0.4)
Total	Total	(5.9)		21.0		3.6		49.3		Total	9.7		11.1
Deferred income taxes	Deferred income taxes									Deferred income taxes
Federal	Federal	21.2		(9.0)		19.6		(31.0)		Federal	7.7		(3.9)
State	State	(0.4)		0.4		—		(0.4)		State	(3.3)		3.2
Total	Total	20.8		(8.6)		19.6		(31.4)		Total	4.4		(0.7)

Investment tax credit amortization		(0.6)		(0.3)		(1.2)		(0.7)

Investment tax credit										Investment tax credit
Deferral										Deferral	—		2.7
Amortization										Amortization	(1.7)		(1.6)
Total										Total	(1.7)		1.1
Income tax expense	Income tax expense	$	14.3	$	12.1	$	22.0	$	17.2	Income tax expense	$	12.4	$	11.5

Table of Contents


Evergy Kansas Central

Three Months Ended March 31	2023		2022
Current income taxes	(millions)
Federal	$	18.1	$	7.9
State	2.0		0.2
Total	20.1		8.1
Deferred income taxes
Federal	(10.0)		(8.5)
State	(0.7)		2.3
Total	(10.7)		(6.2)




Investment tax credit
Deferral	—		2.7
Amortization	(1.0)		(1.0)
Total	(1.0)		1.7
Income tax expense	$	8.4	$	3.6


Evergy Metro

Three Months Ended March 31		2023		2022
Current income taxes	(millions)
Federal		$	(5.1)	$	9.4
State		1.6		0.1
Total		(3.5)		9.5
Deferred income taxes
Federal		12.4		(1.6)
State		(1.2)		0.4
Total		11.2		(1.2)




Investment tax credit

Amortization		(0.8)		(0.6)
Total		(0.8)		(0.6)
Income tax expense		$	6.9	$	7.7

Effective Income Tax Rates

Effective income tax rates reflected in the financial statements and the reasons for their differences from the statutory federal rates are detailed in the following tables.

Evergy
Three Months Ended
June 30 Year to Date
June 30
2022 2021 2022 2021
Federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 %
Effect of:
COLI policies (0.5) (1.1) (0.5) (1.0)
State income taxes 0.5 0.1 0.8 1.0
Flow through depreciation for plant-related differences (6.0) (6.4) (6.1) (6.1)
Federal tax credits (4.0) (3.1) (3.9) (3.1)
Non-controlling interest (0.3) (0.3) (0.3) (0.3)
AFUDC equity (0.5) (0.6) (0.5) (0.7)
Amortization of federal investment tax credits (0.2) (0.5) (0.2) (0.4)
Stock compensation (0.1) (0.1) (0.4) —
Officer compensation limitation 0.3 0.5 0.3 0.4
Other (0.1) (0.1) (0.8) (0.8)
Effective income tax rate 10.1 % 9.4 % 9.4 % 10.0 %


Evergy Kansas Central
Evergy										Evergy
		Three Months Ended June 30				Year to Date June 30
		2022		2021		2022		2021
Federal statutory income tax rate		21.0	%	21.0	%	21.0	%	21.0	%
Effect of:
Three Months Ended March 31										Three Months Ended March 31	2023		2022
Federal statutory income tax										Federal statutory income tax	21.0	%	21.0	%
COLI policies	COLI policies	(1.0)		(1.6)		(1.0)		(1.7)		COLI policies	(1.4)		(0.5)
State income taxes	State income taxes	(1.5)		0.4		0.1		1.0		State income taxes	0.6		1.4
Flow through depreciation for plant-related differences	Flow through depreciation for plant-related differences	(3.5)		(5.2)		(4.2)		(3.8)		Flow through depreciation for plant-related differences	(7.7)		(6.3)
Federal tax credits	Federal tax credits	(8.8)		(5.1)		(8.3)		(5.3)		Federal tax credits	(3.5)		(3.7)
Non-controlling interest	Non-controlling interest	(0.6)		(0.5)		(0.6)		(0.5)		Non-controlling interest	(0.3)		(0.3)
AFUDC equity	AFUDC equity	(0.7)		(0.6)		(0.7)		(0.7)		AFUDC equity	(0.6)		(0.5)
Amortization of federal investment tax credits	Amortization of federal investment tax credits	0.1		(0.5)		0.1		(0.5)		Amortization of federal investment tax credits	(0.6)		(0.2)

Stock compensation	Stock compensation	(0.2)		(0.3)		(0.4)		(0.1)		Stock compensation	0.1		(0.9)
Officer compensation limitation	Officer compensation limitation	0.1		0.2		—		0.2		Officer compensation limitation	0.2		0.3
Other	Other	(0.2)		(0.4)		(1.4)		(1.5)		Other	0.1		(1.9)
Effective income tax rate	Effective income tax rate	4.7	%	7.4	%	4.6	%	8.1	%	Effective income tax rate	7.9	%	8.4	%

Table of Contents


Evergy Metro
Evergy Kansas Central										Evergy Kansas Central
		Three Months Ended June 30				Year to Date June 30
		2022		2021		2022		2021
Federal statutory income tax rate		21.0	%	21.0	%	21.0	%	21.0	%
Effect of:
Three Months Ended March 31										Three Months Ended March 31	2023		2022
Federal statutory income tax										Federal statutory income tax	21.0	%	21.0	%
COLI policies	COLI policies	(0.1)		(0.3)		(0.1)		(0.3)		COLI policies	(2.4)		(1.0)
State income taxes	State income taxes	0.5		0.4		0.5		0.4		State income taxes	0.7		2.0
Flow through depreciation for plant-related differences	Flow through depreciation for plant-related differences	(6.8)		(8.3)		(6.9)		(8.2)		Flow through depreciation for plant-related differences	(4.0)		(5.0)
Federal tax credits	Federal tax credits	(0.2)		(0.7)		(0.2)		(0.6)		Federal tax credits	(6.3)		(7.7)
Non-controlling interest										Non-controlling interest	(0.5)		(0.6)
AFUDC equity	AFUDC equity	(0.4)		(0.6)		(0.4)		(0.6)		AFUDC equity	(0.5)		(0.7)
Amortization of federal investment tax credits	Amortization of federal investment tax credits	(0.6)		(0.4)		(0.6)		(0.4)		Amortization of federal investment tax credits	(0.4)		0.1

Stock compensation	Stock compensation	—		—		(0.5)		0.1		Stock compensation	(0.2)		(0.6)
Officer compensation limitation		0.5		1.0		0.5		0.9

Other	Other	(0.1)		(0.1)		—		0.1		Other	—		(2.9)
Effective income tax rate	Effective income tax rate	13.8	%	12.0	%	13.3	%	12.4	%	Effective income tax rate	7.4	%	4.6	%


Evergy Metro

Three Months Ended March 31	2023		2022
Federal statutory income tax	21.0	%	21.0	%
COLI policies	(0.1)		(0.2)
State income taxes	0.6		0.6
Flow through depreciation for plant-related differences	(8.1)		(7.0)
Federal tax credits	(0.2)		(0.2)
AFUDC equity	(0.9)		(0.4)
Amortization of federal investment tax credits	(0.9)		(0.6)



Stock compensation	1.0		(1.3)
Officer compensation limitation	0.6		0.5
Other	(0.1)		—
Effective income tax rate	12.9	%	12.4	%

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 ~~2021~~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.

EVERGY, INC.

EXECUTIVE SUMMARY

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

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

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

Table of Contents

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

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

~~Table of Contents~~

Evergy ~~Equity~~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 revenues. See Note 4 to the consolidated financial statements for additional information.

Renewable Generation Investment

~~From time~~In August 2022, Evergy Missouri West entered into an agreement with a renewable energy development company to time, Evergy makes limited equity investments in early-stage energy solution companies. These investments have historically not had a significant impact on Evergy's results of operations. In October 2021,purchase for approximately $250 million an equity investment in which Evergy held a minority stake through an initial investment of $3.7 million was acquired through a transaction involving a special purpose acquisition company (SPAC). As a result of its equity investmentoperational wind farm located in the ~~company that was acquired in~~state of Oklahoma with a generating capacity of approximately 199 MW. Pursuant to the ~~SPAC transaction,~~agreement, Evergy ~~received shares of~~Missouri West is permitted to assign its right to purchase the ~~resulting public company upon the closing of the transaction, which were~~wind farm to another entity, including to other Evergy affiliated companies.

Evergy Missouri West's purchase is subject to regulatory approvals and closing conditions, including the granting of a ~~restriction on sale for 150 days. The equity investment had~~CCN by the MPSC. In April 2023, the MPSC issued a ~~fair value of $31.4 million as of December 31, 2021.~~

~~In March 2022, Evergy sold its shares in~~final order granting the ~~equity investment~~CCN pursuant to a financial institution through a share forward agreement following the expiration of the restriction on sale. As part of the share forward agreement, Evergy delivered its shares to the financial institution in exchange for a series of cash settlements totaling $15.1 million based primarily on the volume-weighted average price (VWAP) of the shares over the term of the agreement, which was completed in June 2022. As a result of the completion of the share forward agreement, Evergy no longer has an equity investment in the company.

For the three months ended and year to date June 30, 2022, Evergy recorded pre-tax losses of $2.1 million and $16.3 million, respectively, in investment earnings (loss) on its consolidated statements of comprehensive incomecertain conditions related to the ~~decrease in market value~~sharing of ~~its equity investment prior to sale~~operational costs between ratepayers and the settlement of the share forward agreement. Evergy uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the gains or losses related to equity investments subject to a restriction on sale that can create period to period volatility, among other items. See "Non-GAAP Measures" within this Executive Summary for additional information.shareholders.

~~Missouri Property Tax Tracker~~

On June 29, 2022, Missouri Senate Bill (S.B.) 745 was signed into law by the Governor of Missouri. Among other items, S.B. 745 includes a provision requiring Missouri electric utilities to defer to a regulatory asset or regulatory liability, as appropriate, any difference between state or local property tax expenses incurred and the amounts included in rates. Any amounts deferred to a regulatory asset or liability under this provision would be included in the electric utility's revenue requirement in subsequent rate cases and recovered over a reasonable period of time to be determined by the MPSC. Evergy Metro and Evergy Missouri West ~~will begin deferring amounts associated with S.B. 745~~is currently evaluating the assignment of its right to purchase the wind farm to Evergy Kansas Central, which has included the purchase of the wind farm in its rate case application to the KCC which was filed in April 2023. See Note 4 to the consolidated financial statements for additional information on Evergy Kansas Central's rate case proceeding. The purchase of the wind farm is expected to close in the ~~third~~second quarter of ~~2022.~~2023.

Regulatory Proceedings

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

~~Earnings Overview~~

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

Three Months Ended
June 30 Year to Date
June 30
2022 Change 2021 2022 Change 2021
(millions, except per share amounts)
Net income attributable to Evergy, Inc. $ 194.5 $ 9.2 $ 185.3 $ 317.0 $ (59.9) $ 376.9
Earnings per common share, diluted 0.84 0.03 0.81 1.38 (0.27) 1.65

~~Table of Contents~~

Net income attributable to Evergy, Inc. increased for the three months ended June 30, 2022, compared to the same period in 2021, primarily due to higher retail sales in 2022 driven by higher weather-normalized demand and favorable weather, higher transmission revenue and increases from TDC riders; partially offset by higher operating and maintenance expenses, higher depreciation expense, lower investment earnings and lower ~~corporate-owned life insurance (COLI)~~ ~~proceeds.~~

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

Net income attributable to Evergy, Inc. decreased year to date June 30, 2022, compared to the same period in 2021, primarily due to non-regulated energy marketing margins recognized in 2021 related to the February 2021 winter weather event, higher depreciation expense, higher property taxes, lower investment earnings and lower ~~COLI~~ proceeds; partially offset by higher retail sales in 2022 driven by higher weather-normalized demand and favorable weather, higher transmission revenue, increases from TDC riders and lower income tax expense.

~~Diluted EPS decreased year to date June 30, 2022, compared to the same period in 2021, primarily due to the decrease in net income attributable to Evergy discussed above.~~

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

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

Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended and year to date June 30, 2022, were $198.4 million or $0.86 per share and $332.2 million or $1.44 per share, respectively. For the three months ended and year to date June 30, 2021, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $195.1 million or $0.85 per share and $320.5 million or $1.40 per share, respectively. In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the income or costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event and gains or losses related to equity investments subject to a restriction on sale that can create period to period volatility, as well as costs resulting from executive transition, severance and advisor expenses.

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

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.

~~Table of Contents~~

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 June 30 2022 2021
(millions, except per share amounts)
Net income attributable to Evergy, Inc. $ 194.5 $ 0.84 $ 185.3 $ 0.81
Non-GAAP reconciling items:
Non-regulated energy marketing margin related to February 2021
winter weather event, pre-tax(a)
— — 1.5 0.01
Non-regulated energy marketing costs related to February 2021
winter weather event, pre-tax(b)
0.3 — 2.0 0.01
Executive transition costs, pre-tax(c)
— — 1.8 0.01
Severance costs, pre-tax(d)
— — 1.2 —
Advisor expenses, pre-tax(e)
2.5 0.01 5.7 0.02
Restricted equity investment losses, pre-tax(f)
2.1 0.01 — —
Income tax benefit(g)
(1.0) — (2.4) (0.01)
Adjusted earnings (non-GAAP) $ 198.4 $ 0.86 $ 195.1 $ 0.85

Earnings (Loss) Earnings (Loss) per Diluted Share Earnings (Loss) Earnings (Loss) per Diluted Share
Year to Date June 30 2022 2021
(millions, except per share amounts)
Net income attributable to Evergy, Inc. $ 317.0 $ 1.38 $ 376.9 $ 1.65
Non-GAAP reconciling items:
Non-regulated energy marketing margin related to February 2021
winter weather event, pre-tax(a)
— — (95.0) (0.42)
Non-regulated energy marketing costs related to February 2021
winter weather event, pre-tax(b)
0.6 — 4.0 0.02
Executive transition costs, pre-tax(c)
— — 7.3 0.03
Severance costs, pre-tax(d)
— — 2.8 0.01
Advisor expenses, pre-tax(e)
2.5 0.01 7.2 0.03
Restricted equity investment losses, pre-tax(f)
16.3 0.07 — —
Income tax expense (benefit)(g)
(4.2) (0.02) 17.3 0.08
Adjusted earnings (non-GAAP) $ 332.2 $ 1.44 $ 320.5 $ 1.40

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

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

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

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

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

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

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

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Wolf Creek Refueling Outage

Wolf Creek's most recent refueling outage began in ~~March 2021~~October 2022 and the unit returned to service in ~~May 2021.~~November 2022. Wolf Creek's next refueling outage is planned to begin in the ~~fourth~~first quarter of ~~2022.~~2024.

~~ENVIRONMENTAL MATTERS~~

~~See Note 10 to the consolidated financial statements for information regarding environmental matters.~~

~~RELATED PARTY TRANSACTIONS~~

~~See Note 11 to the consolidated financial statements for information regarding related party transactions.~~

~~EVERGY RESULTS OF OPERATIONS~~Earnings Overview

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



Three Months Ended March 31		2023		Change		2022
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.		$	142.6	$	20.1	$	122.5
Earnings per common share, diluted		0.62		0.09		0.53

Net income attributable to Evergy, Inc. increased for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to lower operating and maintenance expenses, new Evergy Metro and Evergy

Table of ~~operations.~~Contents

Three Months Ended
June 30 Year to Date
June 30
2022 Change 2021 2022 Change 2021
(millions)
Operating revenues $ 1,446.5 $ 210.3 $ 1,236.2 $ 2,670.4 $ (177.7) $ 2,848.1
Fuel and purchased power 414.3 130.2 284.1 723.3 (195.9) 919.2
SPP network transmission costs 81.5 7.7 73.8 160.2 17.0 143.2
Operating and maintenance 282.8 22.9 259.9 535.0 (0.4) 535.4
Depreciation and amortization 232.1 6.9 225.2 461.1 16.6 444.5
Taxes other than income tax 100.3 2.4 97.9 202.2 9.4 192.8
Income from operations 335.5 40.2 295.3 588.6 (24.4) 613.0
Other income (expense), net (17.9) (22.2) 4.3 (44.2) (40.4) (3.8)
Interest expense 99.3 5.5 93.8 191.1 3.3 187.8
Income tax expense 22.1 2.5 19.6 33.6 (9.0) 42.6
Equity in earnings of equity method investees, net of income taxes 1.4 (0.7) 2.1 3.5 (0.6) 4.1
Net income 197.6 9.3 188.3 323.2 (59.7) 382.9
Less: Net income attributable to noncontrolling interests 3.1 0.1 3.0 6.2 0.2 6.0
Net income attributable to Evergy, Inc. $ 194.5 $ 9.2 $ 185.3 $ 317.0 $ (59.9) $ 376.9
Missouri West retail rates effective in January 2023 and a realized loss in 2022 from an equity investment; partially offset by higher depreciation expense, higher interest expense and lower retail sales in the first quarter of 2023 driven by warmer winter weather.

Diluted EPS increased for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to the increase in net income attributable to Evergy, Inc. discussed above.

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

Non-GAAP Measures

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

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

Utility gross margin (non-GAAP) is intended to aid an investor's overall understanding of results. Management believes that utility gross margin (non-GAAP) provides a meaningful basis for evaluating the Evergy Companies' operations across periods because utility gross margin (non-GAAP) excludes the revenue effect of fluctuations in ~~these expenses.~~fuel and purchased power costs and SPP network transmission costs. Utility gross margin (non-GAAP) is used internally to measure performance against budget and in reports for management and the Evergy Board. Utility gross margin (non-GAAP) should be viewed as a supplement to, and not a substitute for, ~~income from operations,~~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 due to the exclusion of operating and maintenance expenses determined to be directly attributable to revenue-producing activities, depreciation and amortization and 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 March 31, 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 March 31, 2023 were $136.1 million or $0.59 per share. For the three months ended March 31, 2022, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $129.9 million or $0.56 per share.

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; and v.) the

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~~GAAP. The~~transmission revenues collected from customers in 2022 through Evergy ~~Companies' definition~~Kansas Central's FERC TFR to be refunded to customers in accordance with a December 2022 FERC order.

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

Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are used internally to measure performance against budget and in 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 ~~differ from similar terms used by~~not be comparable to other ~~companies.~~

~~The following tables summarize Evergy's utility gross margin and MWhs sold and provide a reconciliation of utility gross margin to income from operations.~~companies' presentations or more useful than the GAAP information provided elsewhere in this report.

Revenues and Expenses MWhs Sold
Three Months Ended June 30 2022 Change 2021 2022 Change 2021
Retail revenues (millions) (thousands)
Residential $ 513.4 $ 53.6 $ 459.8 3,754 295 3,459
Commercial 465.5 43.0 422.5 4,388 218 4,170
Industrial 170.1 20.1 150.0 2,207 134 2,073
Other retail revenues 9.8 0.3 9.5 33 (2) 35
Total electric retail 1,158.8 117.0 1,041.8 10,382 645 9,737
Wholesale revenues 79.5 9.5 70.0 4,372 886 3,486
Transmission revenues 101.0 10.6 90.4 N/A N/A N/A
Other revenues 107.2 73.2 34.0 N/A N/A N/A
Operating revenues 1,446.5 210.3 1,236.2 14,754 1,531 13,223
Fuel and purchased power (414.3) (130.2) (284.1)
SPP network transmission costs (81.5) (7.7) (73.8)
Utility gross margin (a)
950.7 72.4 878.3
Operating and maintenance (282.8) (22.9) (259.9)
Depreciation and amortization (232.1) (6.9) (225.2)
Taxes other than income tax (100.3) (2.4) (97.9)
Income from operations $ 335.5 $ 40.2 $ 295.3
(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.


	Earnings (Loss)		Earnings (Loss) per Diluted Share		Earnings (Loss)		Earnings (Loss) per Diluted Share
Three Months Ended March 31	2023				2022
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	142.6	$	0.62	$	122.5	$	0.53
Non-GAAP reconciling items:

Sibley Station return on investment, pre-tax(a)	—		—		(3.1)		(0.01)
Mark-to-market impact of JEC economic hedges, pre-tax(b)	(8.4)		(0.04)		—		—
Non-regulated energy marketing costs related to February 2021 winter weather event, pre-tax(c)	0.1		—		0.3		—





Restricted equity investment losses, pre-tax(d)	—		—		14.2		0.06
TFR refund, pre-tax(e)	—		—		(1.9)		(0.01)
Income tax (benefit) expense (f)	1.8		0.01		(2.1)		(0.01)

Adjusted earnings (non-GAAP)	$	136.1	$	0.59	$	129.9	$	0.56

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

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

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

(d)Reflects 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.

(e)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.

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

Revenues and Expenses MWhs Sold
Year to Date June 30 2022 Change 2021 2022 Change 2021
Retail revenues (millions) (thousands)
Residential $ 965.2 $ 108.7 $ 856.5 7,689 268 7,421
Commercial 868.6 100.1 768.5 8,644 252 8,392
Industrial 320.4 36.8 283.6 4,320 189 4,131
Other retail revenues 18.8 1.9 16.9 65 (1) 66
Total electric retail 2,173.0 247.5 1,925.5 20,718 708 20,010
Wholesale revenues 131.4 (426.1) 557.5 8,272 473 7,799
Transmission revenues 199.0 22.6 176.4 N/A N/A N/A
Other revenues 167.0 (21.7) 188.7 N/A N/A N/A
Operating revenues 2,670.4 (177.7) 2,848.1 28,990 1,181 27,809
Fuel and purchased power (723.3) 195.9 (919.2)
SPP network transmission costs (160.2) (17.0) (143.2)
Utility gross margin (a)
1,786.9 1.2 1,785.7
Operating and maintenance (535.0) 0.4 (535.4)
Depreciation and amortization (461.1) (16.6) (444.5)
Taxes other than income tax (202.2) (9.4) (192.8)
Income from operations $ 588.6 $ (24.4) $ 613.0
(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.
ENVIRONMENTAL MATTERS

See Note 10 to the consolidated financial statements for information regarding environmental matters.

RELATED PARTY TRANSACTIONS

See Note 11 to the consolidated financial statements for information regarding related party transactions.

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EVERGY RESULTS OF OPERATIONS

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



Three Months Ended March 31	2023		Change		2022
	(millions)
Operating revenues	$	1,296.8	$	72.9	$	1,223.9
Fuel and purchased power	354.2		45.2		309.0
SPP network transmission costs	81.2		2.5		78.7
Operating and maintenance	216.3		(35.9)		252.2
Depreciation and amortization	263.4		34.4		229.0
Taxes other than income tax	102.4		0.5		101.9

Income from operations	279.3		26.2		253.1
Other expense, net	—		26.3		(26.3)
Interest expense	123.1		31.3		91.8
Income tax expense	12.4		0.9		11.5
Equity in earnings of equity method investees, net of income taxes	1.9		(0.2)		2.1
Net income	145.7		20.1		125.6
Less: Net income attributable to noncontrolling interests	3.1		—		3.1
Net income attributable to Evergy, Inc.	$	142.6	$	20.1	$	122.5

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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 March 31	2023		Change		2022		2023	Change	2022
Retail revenues	(millions)						(thousands)
Residential	$	458.6	$	6.8	$	451.8	3,741	(194)	3,935
Commercial	430.0		26.9		403.1		4,311	55	4,256
Industrial	159.1		8.8		150.3		2,064	(49)	2,113
Other retail revenues	11.3		2.3		9.0		31	(1)	32
Total electric retail	1,059.0		44.8		1,014.2		10,147	(189)	10,336
Wholesale revenues	70.4		18.5		51.9		3,548	(352)	3,900
Transmission revenues	105.8		7.8		98.0		N/A	N/A	N/A
Other revenues	61.6		1.8		59.8		N/A	N/A	N/A
Operating revenues	1,296.8		72.9		1,223.9		13,695	(541)	14,236
Fuel and purchased power	(354.2)		(45.2)		(309.0)
SPP network transmission costs	(81.2)		(2.5)		(78.7)
Operating and maintenance(a)	(118.2)		13.2		(131.4)
Depreciation and amortization	(263.4)		(34.4)		(229.0)
Taxes other than income tax	(102.4)		(0.5)		(101.9)
Gross margin (GAAP)	377.4		3.5		373.9
Operating and maintenance(a)	118.2		(13.2)		131.4
Depreciation and amortization	263.4		34.4		229.0
Taxes other than income tax	102.4		0.5		101.9
Utility gross margin (non-GAAP)	$	861.4	$	25.2	$	836.2
(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 $98.1 million and $120.8 million for the three months ended March 31, 2023 and 2022, respectively.

Evergy's gross margin (GAAP) increased ~~$72.4~~$3.5 million for the three months ended ~~June 30, 2022,~~March 31, 2023, compared to the same period in ~~2021,~~2022 and Evergy's utility gross margin (non-GAAP) increased $25.2 million for the three months ended March 31, 2023, compared to the same period in 2022, both measures were driven by:

•a ~~$53.2~~$11.8 million increase from new Evergy Metro and Evergy Missouri West retail rates effective in January 2023;

•an $8.4 million increase due to ~~higher retail sales driven by higher weather-normalized demand~~mark-to-market gains related to forward contracts for natural gas and ~~favorable weather (cooling degree days increased by 16%);~~electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's non-regulated 8% ownership share of JEC;

•a ~~$10.6~~$7.8 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January ~~2022;~~2023 and revised in March 2023; and

•~~an $8.6~~a $6.4 million increase in operating revenue related to ~~TDC riders~~non-regulated energy marketing activity at Evergy Kansas Central and Evergy Metro in 2022, which included higher revenues driven by updated transmission costs as reflected in Evergy Kansas Central's and Evergy Metro's TFRs with the new prices effective in April 2022 and May 2022, respectively.

~~Evergy's utility gross margin increased $1.2 million year to date June 30, 2022, compared to the same period in~~ ~~2021, driven by:~~

•~~a $64.0 million increase due to higher retail sales driven by higher weather-normalized demand and favorable weather (cooling degree days increased by 16% and heating degree days increased by 2%);~~

•~~a $22.6 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2022; and~~

•an $11.2 million increase related to Evergy Kansas Central's and Evergy Metro's TDC riders in 2022, which included higher revenues driven by updated transmission costs as reflected in Evergy Kansas Central's and Evergy Metro's TFRs with the new prices effective in April 2022 and May 2022, respectively;Central; partially offset by

•~~$95.0~~a $9.2 million ~~of non-regulated energy marketing margins recognized at Evergy Kansas Central in 2021 related~~decrease primarily due to ~~the February 2021~~lower retail sales driven by warmer winter weather ~~event;~~in 2023 (heating degree days decreased by 11%) partially offset by higher weather-normalized residential and commercial demand.

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

•a $13.2 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $5.2 million decrease in plant operating and maintenance expense at fossil-fuel generating units, a $5.0 million decrease in plant operating and maintenance expense at Wolf Creek and a $2.5 million decrease in transmission and distribution operating and maintenance expenses as further described below; partially offset by

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

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

◦~~a $20.9~~$34.4 million increase ~~at Evergy Missouri West driven by $14.6 million of increased fuel~~in depreciation and purchased power costs in February 2021 that are not currently recoverable from customers through its fuel recovery mechanism and $6.2 million related to a special requirements contract with an industrial customer; andamortization as further described below.

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

Operating and Maintenance

Evergy's operating and maintenance expense ~~increased $22.9~~decreased $35.9 million for the three months ended ~~June 30, 2022,~~March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven by:

•a ~~$9.4~~$13.3 million ~~increase~~decrease in administrative labor and employee benefits expenses primarily due to lower employee headcount compared to the first quarter of 2022;

•a $5.9 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 $5.2 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily due to a ~~$4.0~~$3.6 million ~~increase at Evergy Metro driven by major maintenance outages at Iatan Station Unit 1 and LaCygne Unit 2 in 2022 and a $3.8 million increase~~decrease at Evergy Kansas Central driven by a major maintenance outage at JEC in 2022;

•a ~~$9.4~~$5.0 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;

•a $2.5 million decrease in transmission and distribution operating and maintenance expenses primarily at Evergy Kansas Central ~~Evergy Metro and Evergy Missouri West~~ driven by ~~higher contractor costs~~lower labor expense primarily due to an increase in labor capitalization and lower employee headcount, partially offset by a ~~$1.6~~$3.6 million increase in vegetation management ~~costs~~costs; partially offset by

•a $3.7 million increase in ~~2022;~~property insurance expense 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 expense increased $34.4 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by:

•a $23.5 million increase primarily due to capital additions; and

•a $10.9 million increase primarily due to a change in depreciation rates as a result of Evergy Metro's and Evergy Missouri West's 2022 rate cases effective in January 2023.

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•an $8.0 million increase in credit loss expense at Evergy Kansas Central, Evergy Metro and Evergy Missouri West primarily due to a higher level of assumed uncollectible accounts used in establishing the allowance for credit losses in the second quarter of 2022 and higher actual write-offs incurred; partially offset byOther Expense, Net

•Evergy's other expense, net decreased $26.3 million ~~a $3.2 million decrease in advisor expenses incurred in~~for the ~~second quarter of 2022 associated with strategic planning;~~

•three months ended~~$1.8 million of costs recorded in the second quarter of 2021 associated with executive transition, including inducement bonuses, severance agreements and other transition expenses; and~~

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

~~Evergy's operating and maintenance expense decreased $0.4 million year to date June 30, 2022,~~ March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven by:

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

•~~a $4.7 million decrease in advisor expenses incurred in 2022 associated with strategic planning;~~

•~~a $3.4 million decrease in costs at Evergy Kansas Central related to non-regulated energy marketing margins recognized during the February 2021 winter weather event; and~~

•~~a $2.2 million decrease in certain labor and employee benefits expenses; partially offset by~~

•an ~~$11.2~~$18.7 million increase in plant operating and maintenance expense at fossil-fuel generating units primarily due to a $5.4 million increase at Evergy Metro driven by major maintenance outages at Iatan Station Unit 1 and LaCygne Unit 2 in 2022 and a $4.3 million increase at Evergy Kansas Central driven by a major maintenance outage at JEC in 2022; and

•a $5.8 million increase in transmission and distribution operating and maintenance expenses primarily at Evergy Metro and Evergy Missouri West driven by higher contractor costs and a $1.0 million increase in vegetation management costs in 2022.

~~Depreciation and Amortization~~

Evergy's depreciation and amortization increased $6.9 million for the three months ended June 30, 2022 and $16.6 million year to date June 30, 2022, compared to the same periods in 2021, primarily driven by higher capital additions at Evergy Kansas Central and Evergy Metro in 2022.

~~Taxes Other Than Income Tax~~

Evergy's taxes other than income tax increased $2.4 million for the three months ended June 30, 2022 and $9.4 million year to date June 30, 2022, compared to the same periods in 2021, primarily driven by an increase in property taxes in Missouri and Kansas ~~primarily due to higher assessed property tax values~~.

~~Other Income (Expense), Net~~

Evergy's other income, net in the second quarter of 2021 became other expense, net in the second quarter of 2022 as a result of a $22.2 million increase in net other expense items, primarily driven by:

•~~a $9.3 million increase due to lower~~ investment earnings primarily driven by a ~~$4.1~~$14.2 million loss from the sale of Evergy's equity investment in an early-stage energy solutions company in 2022 and a $5.8 million increase in interest and dividend income primarily due to an increase in carrying charges related to Evergy Missouri West's costs associated with the February 2021 winter weather event to be recovered through securitization financing; partially offset by a $4.7 million decrease in unrealized gains due to the change in fair value related to ~~various~~other equity ~~investments~~investments;

•an $8.1 million decrease due to recording higher Evergy Kansas Central corporate-owned life insurance (COLI) benefits in 2023; and a $2.1 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 (see Evergy Equity Investment in Note 1 of the consolidated financial statements for additional information);

•a ~~$6.2~~$3.6 million ~~increase due to recording lower Evergy Kansas Central COLI benefits~~decrease in ~~the second quarter of 2022; and~~

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•~~a $4.1 million increase due to higher~~ pension non-service ~~costs at Evergy Kansas Central and Evergy Metro in~~costs.

Interest Expense

Evergy's interest expense increased $31.3 million for the ~~second quarter of 2022.~~three months ended

~~Evergy's other expense, net increased $40.4 million year to date June 30, 2022,~~March 31, 2023, compared to the same period in ~~2021, primarily driven by:~~

•~~a $20.5 million increase due to lower investment earnings~~2022, 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 (see Evergy Equity Investment in Note 1 of the consolidated financial statements for additional information);

•~~a $7.7 million increase due to higher pension non-service costs at Evergy Kansas Central and Evergy Metro in 2022;~~

•~~a $6.1 million increase due to recording lower Evergy Kansas Central COLI benefits in 2022; and~~

•~~$3.1 million of other income recorded in 2021 related to contract termination fees~~.

~~Interest Expense~~

~~Evergy's interest expense increased $5.5 million for the three months ended June 30, 2022, compared to the same period in 2021, primarily driven by:~~

•~~a $4.6~~$27.5 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates for Evergy ~~Inc.,~~Kansas Central, Evergy ~~Kansas Central~~Metro and Evergy Missouri West in ~~2022; partially offset by~~2023.

•~~a $1.6 million decrease due to the repayment of Evergy Missouri West's $80.9 million of 8.27% Senior Notes at maturity in November 2021.~~

~~Evergy's interest expense increased $3.3 million year to date June 30, 2022, compared to the same period in 2021, primarily driven by:~~

•a $5.7 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates for Evergy, Inc., Evergy Kansas Central and Evergy Missouri West in 2022; partially offset by

•~~a $3.3 million decrease due to the repayment of Evergy Missouri West's $80.9 million of 8.27% Senior Notes at maturity in November 2021.~~

~~Income Tax Expense~~

~~Evergy's income tax expense increased $2.5 million for the three months ended June 30, 2022, compared to the same period in 2021, primarily driven by:~~

•~~a $2.0 million increase primarily due to higher pre-tax income in the second quarter of 2022; and~~

•~~a $1.1 million increase due to lower expected COLI proceeds in the second quarter of 2022.~~

~~Evergy's income tax expense decreased $9.0 million year to date June 30, 2022, compared to the same period in 2021, primarily driven by:~~

•~~a $15.1 million decrease due to lower pre-tax income in 2022; partially offset by~~

•~~a $4.3 million increase due to lower amortization of flow-through items driven by a decrease in pre-tax income in 2022 at Evergy Kansas Central; and~~

•~~a $1.3 million increase due to lower wind and other income tax credits driven by a decrease in pre-tax income in 2022.~~

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LIQUIDITY AND CAPITAL RESOURCES

Evergy relies primarily upon cash from operations, short-term borrowings, long-term debt and equity issuances and its existing cash and cash equivalents to fund its capital requirements. Evergy's capital requirements primarily consist of capital expenditures, payment of contractual obligations and other commitments, and the payment of dividends to shareholders. See the Evergy Companies' combined ~~2021~~2022 Form 10-K for more information on Evergy's sources and uses of cash.

Short-Term Borrowings

As of ~~June 30, 2022,~~March 31, 2023, Evergy had ~~$1.0 billion~~$952.8 million of available borrowing capacity under its master credit facility. The available borrowing capacity under the master credit facility consisted of ~~$339.8~~$152.3 million for Evergy, Inc., ~~$271.4~~$477.0 million for Evergy Kansas Central, ~~$350.0~~$229.0 million for Evergy Metro and ~~$9.5~~$94.5 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility also supports their issuance of commercial paper. See Note 76 to the consolidated financial statements for more information regarding the master credit facility.

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 March 31, 2023, Evergy had borrowed $500.0 million under the Term Loan Facility that is reflected within notes payable and commercial paper on Evergy's consolidated balance sheet. Evergy's borrowings under the Term Loan Facility were used for, among other things, working capital, capital expenditures and general corporate purposes.

Along with cash flows from operations and receivable sales facilities, Evergy generally uses borrowings under its master credit facility and the issuance of commercial paper to meet its day-to-day cash flow requirements. Evergy may also utilize these short-term borrowings to repay maturing long-term debt until the long-term debt is able to be refinanced. Evergy believes that its existing cash on hand and available borrowing capacity under its master credit facility provide sufficient liquidity for its existing capital requirements.

In February 2022, Evergy, Inc. entered into a $500.0 million unsecured Term Loan Facility that expires in February 2023. As of June 30, 2022, Evergy had borrowed $500.0 million under the Term Loan Facility. Evergy's borrowings under the Term Loan Facility were used for, among other things, working capital, capital expenditures and general corporate purposes.

Significant Debt Issuances

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

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Pensions

~~Year to date June 30, 2022,~~For the three months ended March 31, 2023, Evergy made pension contributions of ~~$19.9~~$16.4 million. Evergy expects to make additional pension contributions of ~~$78.8~~$22.0 million in ~~2022~~2023 to satisfy ERISA funding requirements and KCC and MPSC rate orders, of which $14.4 million is expected to be paid by Evergy Kansas Central and ~~$64.4~~$7.6 million is expected to be paid by Evergy Metro. Also in ~~2022,~~2023, Evergy expects to make additional post-retirement benefit contributions of ~~$2.0~~$1.6 million.

Debt Covenants

As of ~~June 30, 2022,~~March 31, 2023, Evergy was in compliance with all debt covenants under the master credit facility, the Term Loan Facility and certain debt instruments that contain restrictions that require the maintenance of certain capitalization and leverage ratios. See Note 76 to the consolidated financial statements for more information.

Cash Flows

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


Year to Date June 30		2022		2021
Three Months Ended March 31						Three Months Ended March 31	2023		2022
		(millions)					(millions)
Cash Flows from Operating Activities	Cash Flows from Operating Activities	$	588.9	$	224.6	Cash Flows from Operating Activities	$	362.9	$	265.1
Cash Flows used in Investing Activities	Cash Flows used in Investing Activities	(1,128.9)		(918.2)		Cash Flows used in Investing Activities	(496.9)		(531.3)
Cash Flows from Financing Activities	Cash Flows from Financing Activities	536.2		607.1		Cash Flows from Financing Activities	137.2		262.2

Cash Flows from Operating Activities

Evergy's cash flows from operating activities increased ~~$364.3~~$97.8 million ~~year to date June 30, 2022,~~for the three months ended March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven ~~by:~~

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

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•~~a $95.8 million~~by an increase in cash receipts for retail electric sales in ~~2022~~2023 primarily due to collection of higher ~~weather-normalized demand~~December receivables in January 2023 and ~~favorable weather; partially offset by~~

•~~$89.1 million of cash receipts related to non-regulated energy marketing margins earned during the February 2021 winter weather event.~~increases from new Evergy Metro and Evergy Missouri West retail rates effective in January 2023.

Cash Flows used in Investing Activities

Evergy's cash flows used in investing activities ~~increased $210.7~~decreased $34.4 million ~~year to date June 30, 2022,~~for the three months ended March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven by ~~a $225.3 million~~an increase in ~~additions to property, plant and equipment due to increases~~proceeds from COLI investments at Evergy Kansas Central ~~Evergy Metro and Evergy Missouri West of $61.6 million, $108.3 million and $59.6 million, respectively, primarily~~ due to ~~increased spending for~~ a ~~variety~~higher number of ~~capital projects including transmission and distribution projects related to grid resiliency and other infrastructure improvements.~~policy settlements in 2023.

Cash Flows from Financing Activities

Evergy's cash flows from financing activities decreased ~~$70.9~~$125.0 million ~~year to date June 30, 2022,~~for the three months ended March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven by:

•a ~~$250.8~~$200.0 million decrease due to higher retirements of long-term debt, net due to Evergy Metro's repayment of $300.0 million of 3.15% Senior Notes in March 2023, partially offset by Evergy Missouri West's repayment of $100.0 million of 3.74% Senior Notes in March 2022;

•a $32.5 million repayment of borrowings against cash surrender value of corporate-owned life insurance in 2023 due to settlements; and

•a $18.7 million decrease in short-term debt borrowings driven by higher borrowings in 2022 for general corporate purposes; partially offset by

•a $146.3 million increase in proceeds from long-term debt, net due to Evergy ~~Missouri West's~~Kansas Central's issuance of ~~$500.0~~$400.0 million of ~~Series A, B and C Senior Notes~~5.70% FMBs in ~~April 2021,~~March 2023; partially offset by Evergy Missouri West's issuance of $250.0 million of 3.75% ~~First Mortgage Bonds~~FMBs in March ~~2022; and~~2022.

•Table of Contents~~$112.5 million of Evergy common stock issued in April 2021 pursuant to a securities purchase agreement with an affiliate of Bluescape Energy Partners, LLC (Bluescape); partially offset by~~

•a $271.1 million increase in short-term debt borrowings driven by higher borrowings of $112.2 million at Evergy Missouri West, $78.5 million at Evergy Kansas Central and $80.4 million at Evergy, Inc., primarily due to higher capital expenditures in 2022 and for general corporate purposes.

EVERGY KANSAS CENTRAL, INC.

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

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

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


Year to Date June 30		2022		Change		2021
Three Months Ended March 31								Three Months Ended March 31	2023		Change		2022
		(millions)							(millions)
Operating revenues	Operating revenues	$	1,337.9	$	(161.7)	$	1,499.6	Operating revenues	$	678.6	$	64.7	$	613.9
Fuel and purchased power	Fuel and purchased power	287.1		(113.4)		400.5		Fuel and purchased power	144.4		36.3		108.1
SPP network transmission costs	SPP network transmission costs	160.2		17.0		143.2		SPP network transmission costs	81.2		2.5		78.7
Operating and maintenance	Operating and maintenance	267.2		6.2		261.0		Operating and maintenance	107.6		(18.1)		125.7
Depreciation and amortization	Depreciation and amortization	240.3		8.5		231.8		Depreciation and amortization	124.1		4.4		119.7
Taxes other than income tax	Taxes other than income tax	108.4		6.1		102.3		Taxes other than income tax	55.7		1.2		54.5
Income from operations	Income from operations	274.7		(86.1)		360.8		Income from operations	165.6		38.4		127.2
Other income (expense), net	Other income (expense), net	(17.4)		(18.6)		1.2		Other income (expense), net	0.6		9.2		(8.6)
Interest expense	Interest expense	85.6		5.5		80.1		Interest expense	52.4		11.5		40.9
Income tax expense	Income tax expense	8.0		(15.1)		23.1		Income tax expense	8.4		4.8		3.6
Equity in earnings of equity method investees, net of income taxes	Equity in earnings of equity method investees, net of income taxes	2.0		0.1		1.9		Equity in earnings of equity method investees, net of income taxes	1.0		—		1.0
Net income	Net income	165.7		(95.0)		260.7		Net income	106.4		31.3		75.1
Less: Net income attributable to noncontrolling interests	Less: Net income attributable to noncontrolling interests	6.2		0.2		6.0		Less: Net income attributable to noncontrolling interests	3.1		—		3.1
Net income attributable to Evergy Kansas Central, Inc.	Net income attributable to Evergy Kansas Central, Inc.	$	159.5	$	(95.2)	$	254.7	Net income attributable to Evergy Kansas Central, Inc.	$	103.3	$	31.3	$	72.0

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

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

Revenues and Expenses MWhs Sold
Year to Date June 30 2022 Change 2021 2022 Change 2021
Retail revenues (millions) (thousands)
Residential $ 418.9 $ 43.9 $ 375.0 3,147 147 3,000
Commercial 358.9 40.1 318.8 3,400 109 3,291
Industrial 212.7 24.7 188.0 2,788 150 2,638
Other retail revenues 8.6 0.2 8.4 20 — 20
Total electric retail 999.1 108.9 890.2 9,355 406 8,949
Wholesale revenues 131.5 (194.4) 325.9 5,064 (273) 5,337
Transmission revenues 178.6 19.0 159.6 N/A N/A N/A
Other revenues 28.7 (95.2) 123.9 N/A N/A N/A
Operating revenues 1,337.9 (161.7) 1,499.6 14,419 133 14,286
Fuel and purchased power (287.1) 113.4 (400.5)
SPP network transmission costs (160.2) (17.0) (143.2)
Utility gross margin (a)
890.6 (65.3) 955.9
Operating and maintenance (267.2) (6.2) (261.0)
Depreciation and amortization (240.3) (8.5) (231.8)
Taxes other than income tax (108.4) (6.1) (102.3)
Income from operations $ 274.7 $ (86.1) $ 360.8

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

Evergy Kansas Central's utility gross margin ~~decreased $65.3~~(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
Three Months Ended March 31	2023		Change		2022		2023	Change	2022
Retail revenues	(millions)						(thousands)
Residential	$	192.1	$	(4.0)	$	196.1	1,452	(97)	1,549
Commercial	178.1		12.9		165.2		1,672	35	1,637
Industrial	108.5		7.7		100.8		1,319	(51)	1,370
Other retail revenues	4.3		0.2		4.1		10	—	10
Total electric retail	483.0		16.8		466.2		4,453	(113)	4,566
Wholesale revenues	67.6		17.5		50.1		2,644	283	2,361
Transmission revenues	100.6		13.1		87.5		N/A	N/A	N/A
Other revenues	27.4		17.3		10.1		N/A	N/A	N/A
Operating revenues	678.6		64.7		613.9		7,097	170	6,927
Fuel and purchased power	(144.4)		(36.3)		(108.1)
SPP network transmission costs	(81.2)		(2.5)		(78.7)
Operating and maintenance (a)	(53.9)		11.1		(65.0)
Depreciation and amortization	(124.1)		(4.4)		(119.7)
Taxes other than income tax	(55.7)		(1.2)		(54.5)
Gross margin (GAAP)	219.3		31.4		187.9
Operating and maintenance (a)	53.9		(11.1)		65.0
Depreciation and amortization	124.1		4.4		119.7
Taxes other than income tax	55.7		1.2		54.5
Utility gross margin (non-GAAP)	$	453.0	$	25.9	$	427.1
(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 $53.7 million and $60.7 million for the three months ended March 31, 2023 and 2022, respectively.

Evergy Kansas Central's gross margin (GAAP) increased $31.4 million ~~year to date June 30, 2022,~~for the three months ended March 31, 2023, compared to the same period in ~~2021,~~2022, and Evergy Kansas Central's utility gross margin (non-GAAP) increased $25.9 million for the three months ended March 31, 2023, compared to the same period in 2022, both measures were driven by:

•~~$95.0 million of non-regulated energy marketing margins recognized in 2021 related to the February 2021 winter weather event; and~~

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

•~~a $37.4 million increase due to higher retail sales driven by higher weather-normalized demand and favorable weather (cooling degree days increased by 32%);~~

•~~a $19.0~~$13.1 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January ~~2022;~~2023 and revised in March 2023;

•~~a $7.2~~an $8.4 million increase due to mark-to-market gains related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's ~~TDC rider~~non-regulated 8% ownership share of JEC;

•a $6.4 million increase in ~~2022, which included higher revenues~~operating revenue related to non-regulated energy marketing activity at Evergy Kansas Central; partially offset by

•a $2.0 million decrease primarily due to lower retail sales driven by ~~updated transmission costs as reflected~~warmer winter weather (heating degree days decreased by 11%); partially offset by higher weather-normalized residential and commercial demand.

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Additionally, the increase in Evergy Kansas Central's ~~TFR with the new prices effective~~gross margin (GAAP) was also driven by:

•an $11.1 million decrease in ~~April 2022.~~operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $3.7 million decrease in operating and maintenance expense at fossil-fuel generating units, a $2.4 million decrease in operating and maintenance expense at Wolf Creek and a $3.8 million decrease in transmission and distribution operating and maintenance expenses as described further below; partially offset by

•a $4.4 million increase in depreciation and amortization expense as described further below.

Evergy Kansas Central Operating and Maintenance

Evergy Kansas Central's operating and maintenance expense ~~increased $6.2~~decreased $18.1 million ~~year to date June 30, 2022,~~for the three months ended March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven by:

•a ~~$6.7~~$6.8 million ~~increase~~decrease in ~~costs billed for common use assets in 2022 from Evergy Metro related~~administrative labor and employee benefits expenses primarily due to ~~facilities and software assets;~~lower employee headcount compared to the first quarter of 2022;

•a ~~$4.3~~$3.8 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 $2.5 million increase in vegetation management costs;

•a $3.7 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily driven by a major maintenance outage at JEC in 2022; and

•a ~~$3.3~~$2.4 million ~~increase~~decrease in ~~various administrative and general~~plant operating and maintenance ~~expenses;~~expense at Wolf Creek primarily due to lower refueling outage amortization in 2023 and lower labor costs in 2023 driven by an increase in labor capitalization and lower employee headcount; partially offset by

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•~~$3.6 million of costs recorded in 2021 associated with executive transition, including inducement bonuses, severance agreements and other transition expenses;~~

•a ~~$3.5~~$1.9 million ~~decrease~~increase in ~~advisor expenses incurred~~property insurance expense due to a lower annual refund of nuclear insurance premiums received in ~~2022 associated with strategic planning;~~2023 related to Evergy Kansas Central's ownership interest in Wolf Creek; and

•a ~~$3.4~~$1.8 million ~~decrease~~increase in costs billed for common use assets in 2023 from Evergy Metro related to ~~non-regulated energy marketing margins recognized during the February 2021 winter weather event.~~facilities and software assets.

Evergy Kansas Central Depreciation and Amortization

Evergy Kansas Central's depreciation and amortization expense increased ~~$8.5~~$4.4 million ~~year to date June 30, 2022,~~for the three months ended March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven by higher capital additions in ~~2022.~~

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

~~Evergy Kansas Central's taxes other than income tax increased $6.1 million year to date June 30, 2022, compared to the same period in 2021, driven by an increase in property taxes in Kansas~~ ~~primarily due to higher assessed property tax values.~~2023.

Evergy Kansas Central Other ~~Income (Expense),~~Expense, Net

Evergy Kansas Central's other expense, net in the first quarter of 2022 became other income, net ~~year to date June 30, 2021 became other expense, net year to date June 30, 2022~~in the first quarter of 2023 as a result of ~~an $18.6~~a $9.2 million increase in net other ~~expense~~income items primarily driven by:

•a ~~$6.1~~$8.1 million increase due to recording ~~lower~~higher COLI benefits in ~~2022;~~2023;

•a ~~$4.4~~$2.9 million ~~decrease~~increase in ~~investment earnings primarily due to $4.2 million of~~ net unrealized ~~losses~~gains in Evergy Kansas Central's rabbi ~~trust in 2022;~~

•~~a $3.7 million increase due to lower equity AFUDC primarily driven by higher short-term debt balances in 2022; and~~

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

Evergy Kansas Central Interest Expense

Evergy Kansas Central's interest expense increased ~~$5.5~~$11.5 million ~~year to date June 30, 2022,~~for the three months ended March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven ~~by:~~

•by a ~~$1.9~~$10.1 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates in ~~2022; and~~

•~~a $1.2 million increase due to lower debt AFUDC primarily driven by higher short-term debt balances in 2022.~~2023.

Evergy Kansas Central Income Tax Expense

Evergy Kansas Central's income tax expense ~~decreased $15.1~~increased $4.8 million ~~year to date June 30, 2022,~~for the three months ended March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven by:

•~~a $24.2~~an $8.0 million ~~decrease~~increase due to ~~lower~~higher pre-tax income in ~~2022;~~2023; partially offset by

•a ~~$3.7~~$2.1 million ~~increase~~decrease primarily due to ~~lower amortization of flow-through items primarily driven by a decrease~~higher expected COLI proceeds in ~~pre-tax income in 2022;~~2023; and

•a ~~$3.0~~$1.6 million ~~increase~~decrease due to ~~lower~~higher wind and other income tax credits in ~~2022; and~~

•~~a $3.3 million increase due to lower expected COLI proceeds in 2022.~~2023.

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EVERGY METRO, INC.

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

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

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


Year to Date June 30		2022		Change		2021
Three Months Ended March 31								Three Months Ended March 31	2023		Change		2022
		(millions)							(millions)
Operating revenues	Operating revenues	$	922.6	$	(32.3)	$	954.9	Operating revenues	$	406.4	$	(16.1)	$	422.5
Fuel and purchased power	Fuel and purchased power	291.4		(64.7)		356.1		Fuel and purchased power	115.4		(17.1)		132.5
Operating and maintenance	Operating and maintenance	164.8		(10.3)		175.1		Operating and maintenance	65.3		(12.8)		78.1
Depreciation and amortization	Depreciation and amortization	167.4		10.6		156.8		Depreciation and amortization	102.4		19.5		82.9
Taxes other than income tax	Taxes other than income tax	67.1		2.5		64.6		Taxes other than income tax	33.5		0.1		33.4

Income from operations	Income from operations	231.9		29.6		202.3		Income from operations	89.8		(5.8)		95.6
Other expense, net	Other expense, net	(13.1)		(5.0)		(8.1)		Other expense, net	(5.5)		0.8		(6.3)
Interest expense	Interest expense	53.8		(1.6)		55.4		Interest expense	30.6		3.6		27.0
Income tax expense	Income tax expense	22.0		4.8		17.2		Income tax expense	6.9		(0.8)		7.7
Net income	Net income	$	143.0	$	21.4	$	121.6	Net income	$	46.8	$	(7.8)	$	54.6

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

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

Revenues and Expenses MWhs Sold
Year to Date June 30 2022 Change 2021 2022 Change 2021
Retail revenues (millions) (thousands)
Residential $ 344.8 48.7 $ 296.1 2,704 66 2,638
Commercial 367.7 47.1 320.6 3,609 86 3,523
Industrial 62.2 6.2 56.0 824 15 809
Other retail revenues 5.6 0.7 4.9 35 (1) 36
Total electric retail 780.3 102.7 677.6 7,172 166 7,006
Wholesale revenues 5.2 (208.1) 213.3 3,046 1,303 1,743
Transmission revenues 9.8 1.3 8.5 N/A N/A N/A
Other revenues 127.3 71.8 55.5 N/A N/A N/A
Operating revenues 922.6 (32.3) 954.9 10,218 1,469 8,749
Fuel and purchased power (291.4) 64.7 (356.1)
Utility gross margin (a)
631.2 32.4 598.8
Operating and maintenance (164.8) 10.3 (175.1)
Depreciation and amortization (167.4) (10.6) (156.8)
Taxes other than income tax (67.1) (2.5) (64.6)
Income from operations $ 231.9 $ 29.6 $ 202.3

~~(a)~~ ~~Utility~~(non-GAAP). See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin ~~is a non-GAAP financial measure. See explanation of~~(GAAP) and utility gross margin ~~under Evergy's Results of Operations.~~(non-GAAP).


	Revenues and Expenses						MWhs Sold
Three Months Ended March 31	2023		Change		2022		2023	Change	2022
Retail revenues	(millions)						(thousands)
Residential	$	158.0	(1.9)		$	159.9	1,329	(54)	1,383
Commercial	175.9		2.3		173.6		1,806	(3)	1,809
Industrial	28.4		(0.4)		28.8		399	—	399
Other retail revenues	2.7		0.1		2.6		17	—	17
Total electric retail	365.0		0.1		364.9		3,551	(57)	3,608
Wholesale revenues	11.4		3.7		7.7		826	(622)	1,448
Transmission revenues	3.8		(1.6)		5.4		N/A	N/A	N/A
Other revenues	26.2		(18.3)		44.5		N/A	N/A	N/A
Operating revenues	406.4		(16.1)		422.5		4,377	(679)	5,056
Fuel and purchased power	(115.4)		17.1		(132.5)
Operating and maintenance (a)	(47.6)		2.7		(50.3)
Depreciation and amortization	(102.4)		(19.5)		(82.9)
Taxes other than income tax	(33.5)		(0.1)		(33.4)
Gross margin (GAAP)	107.5		(15.9)		123.4
Operating and maintenance (a)	47.6		(2.7)		50.3
Depreciation and amortization	102.4		19.5		82.9
Taxes other than income tax	33.5		0.1		33.4
Utility gross margin (non-GAAP)	$	291.0	$	1.0	$	290.0
(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 $17.7 million and $27.8 million for the three months ended March 31, 2023 and 2022, respectively.

Evergy Metro's gross margin (GAAP) decreased $15.9 million for the three months ended March 31, 2023, compared to the same period in 2022 and Evergy Metro's utility gross margin (non-GAAP) increased $1.0 million for the three months ended March 31, 2023, compared to the same period in 2022, both measures were driven by:

•a $3.7 million decrease primarily due to lower retail sales driven by warmer winter weather (heating degree days decreased by 11%) partially offset by higher weather-normalized residential and commercial demand; partially offset by

•a $4.7 million increase from new Evergy Metro retail rates effective in January 2023.

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

•a $19.5 million increase in depreciation and amortization expense as described further below; partially offset by

•a $2.7 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $2.6 million decrease in plant operating and maintenance expense at Wolf Creek as further described below.

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~~Evergy Metro's utility gross margin increased $32.4 million year to date June 30, 2022, compared to the same period in 2021, primarily driven by:~~

•~~a $17.0 million increase due to higher retail sales driven by higher weather-normalized demand and favorable weather (cooling degree days increased by 5% and heating degree days increased by 3%);~~

•an $11.4 million increase due to impacts from the February 2021 winter weather event driven by jurisdictional allocation differences currently present between Evergy Metro's fuel recovery mechanisms in Missouri and Kansas regarding its refund to customers for the net increase in wholesale revenues in February 2021; and

•a $4.0 million increase related to Evergy Metro's TDC rider in 2022, which included higher revenues driven by updated transmission costs as reflected in Evergy Metro's TFR with the new prices effective in May 2022.

Evergy Metro Operating and Maintenance

Evergy Metro's operating and maintenance expense decreased ~~$10.3~~$12.8 million ~~year to date June 30, 2022,~~for the three months ended March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven by:

•a ~~$6.5~~$4.2 million decrease in administrative labor and employee benefits expenses primarily due to lower employee headcount compared to the first quarter of 2022;

•a $3.7 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;

•a $2.6 million decrease in plant operating and maintenance expense at Wolf Creek primarily due to lower refueling outage amortizations in 2023 and lower labor costs driven by an increase in labor capitalization and lower employee headcount; and

•a $1.4 million decrease due to higher costs billed for common use assets in 2022, primarily to Evergy Kansas Central related to facilities and software assets;

•~~a $6.5 million decrease in certain labor and employee benefits expenses;~~

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

•~~a $2.4 million decrease in various administrative and general operating and maintenance expenses, including outside services expense and injuries and damages;~~ partially offset by

•a ~~$5.4~~$1.8 million increase in ~~plant operating and maintenance~~property insurance expense ~~at fossil-fuel generating units driven by major maintenance outages at Iatan Station Unit 1 and LaCygne Unit 2 in 2022; and~~

•~~a $4.1 million increase in various transmission and distribution operating and maintenance expenses primarily~~ due to ~~higher contractor costs and~~ a ~~$1.6 million increase~~lower annual refund of nuclear insurance premiums received in ~~vegetation management costs~~2023 related to Evergy Metro's ownership interest in ~~2022.~~Wolf Creek.

Evergy Metro Depreciation Expense

Evergy Metro's depreciation and amortization expense increased ~~$10.6~~$19.5 million ~~year to date June 30, 2022,~~for the three months ended March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven ~~by higher~~by:

•a $12.4 million increase primarily due to capital ~~additions~~additions; and

•a $7.1 million increase due to a change in ~~2022.~~depreciation rates as a result of Evergy Metro's 2022 rate case effective in January 2023.

Evergy Metro ~~Taxes Other Than Income Tax~~Interest Expense

Evergy Metro's ~~taxes other than income tax~~interest expense increased ~~$2.5~~$3.6 million ~~year to date June 30, 2022,~~for the three months ended March 31, 2023, compared to the same period in ~~2021,~~2022, primarily driven by ana $4.3 million increase in ~~property taxes in Missouri and Kansas~~interest expense on short-term borrowings primarily due to higher ~~assessed property tax values.~~

~~Evergy Metro Other Expense, Net~~

~~Evergy Metro's other expense, net increased $5.0 million year to date June 30, 2022, compared to the same period in 2021, primarily driven by:~~

•~~a $5.6 million increase due to higher pension non-service costs; and~~

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

•~~a $1.5 million decrease due to higher equity AFUDC primarily driven by lower~~ short-term debt balances and ~~higher construction work~~weighted-average interest rates in ~~progress balances in 2022.~~2023.

~~Evergy Metro Income Tax Expense~~

~~Evergy Metro's income tax expense increased $4.8 million year to date June 30, 2022, compared to the same period in 2021, primarily driven by higher pre-tax income in 2022.~~

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In the ordinary course of business, Evergy faces risks that are either non-financial or non-quantifiable. Such risks principally include business, legal, operational and credit risks and are discussed elsewhere in this report as well as in the Evergy Companies' combined ~~2021~~2022 Form 10-K and therefore are not represented here.

Evergy's interim period disclosures about market risk included in quarterly reports on Form 10-Q address material changes, if any, from the most recently filed annual report on Form 10-K. Therefore, these interim period disclosures should be read in conjunction with Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk included in the Evergy Companies' combined ~~2021~~2022 Form 10-K. Evergy's exposure to market risk has not changed materially since December 31, ~~2021.~~2022.

ITEM 4. CONTROLS AND PROCEDURES

EVERGY

Disclosure Controls and Procedures

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

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Changes in Internal Control Over Financial Reporting

There has been no change in Evergy’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended ~~June 30, 2022,~~March 31, 2023, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

EVERGY KANSAS CENTRAL

Disclosure Controls and Procedures

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

Changes in Internal Control Over Financial Reporting

There has been no change in Evergy Kansas Central’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended ~~June 30, 2022,~~March 31, 2023, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

EVERGY METRO

Disclosure Controls and Procedures

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

~~Table of Contents~~

Changes in Internal Control Over Financial Reporting

There has been no change in Evergy Metro’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended ~~June 30, 2022,~~March 31, 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 4 and 10 to the consolidated financial statements. Such information is incorporated herein by reference.

ITEM 1A. RISK FACTORS

Actual results in future periods for the Evergy Companies could differ materially from historical results and the forward-looking statements contained in this report. The business of the Evergy Companies is influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond their control. Additional risks and uncertainties not presently known or that management currently believes to be immaterial may also adversely affect the Evergy Companies. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in Part I, Item 1A, Risk Factors included in the ~~2021~~2022 Form 10-K for each of Evergy, Evergy Kansas Central and Evergy Metro, as well as Quarterly Reports on Form 10-Q and from time to time in Current Reports on Form 8-K filed by Evergy, Evergy Kansas Central and

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Evergy Metro. There have been no material changes with regards to those risk factors since the filing of the ~~2021~~2022 Form 10-K for each of Evergy, Evergy Kansas Central and Evergy Metro. This information, as well as the other information included in this report and in the other documents filed with the SEC, should be carefully considered before making an investment in the securities of the Evergy Companies. Risk factors of Evergy Kansas Central and Evergy Metro are also risk factors of Evergy.

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

Purchases of Equity Securities

The following table provides information regarding purchases by Evergy of its equity securities that are registered pursuant to Section 12 of the Exchange Act during the three months ended ~~June 30, 2022.~~

Issuer Purchases of Equity Securities
Month
Total Number of
Shares (or Units)
Purchased(a)
Average Price
Paid per Share
(or Unit) Total Number of
Shares (or Units)
Purchased as
Part of Publicly
Announced Plans
or Programs Maximum
Number of
Shares (or Units)
that May Yet Be
Purchased Under the Plans or Programs
April 1 - 30 51 $69.06 — —
May 1 - 31 135 68.10 — —
June 1 - 30 1,149 70.01 — —
Total 1,335 $69.78 — —
March 31, 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
January 1 - 31	—	$	—	—	—
February 1 - 28	6,488	60.93		—	—
March 1 - 31	32,604	60.04		—	—
Total	39,092	$	60.19	—	—

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

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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ITEM ~~4. MINE SAFETY DISCLOSURES~~

~~Not applicable.~~

~~ITEM~~ 5. OTHER INFORMATION

Annual Shareholder Meeting Results

Evergy's annual meeting of shareholders was held on May 2, 2023. In accordance with the recommendations of the Board, the shareholders (i) elected eleven directors; (ii) approved, on an advisory and non-binding basis, the 2022 compensation of Evergy's named executive officers; and (iii) ratified the appointment of Deloitte & Touche LLP as independent registered public accountants for 2023. The proposals voted upon at the annual meeting, as well as the voting results for each proposal are set forth below.

Item 1 on the Proxy Card. The eleven persons named below were elected, as proposed in the proxy statement, to serve as directors until Evergy's annual meeting in 2024, and until their successors are elected and qualified. The voting regarding the election was as follows:


	Number of Votes
		For	Against	Abstain	Broker Non-Votes
David A. Campbell		179,091,739	1,800,824	376,750	21,666,048
Thomas D. Hyde		175,784,094	5,057,304	427,915	21,666,048
B. Anthony Isaac		177,218,794	3,615,419	435,100	21,666,048
Paul M. Keglevic		178,897,459	1,931,123	440,731	21,666,048
Mary L. Landrieu		178,896,460	1,877,669	495,184	21,666,048
Sandra A.J. Lawrence		161,654,213	19,201,711	413,389	21,666,048
Ann D. Murtlow		178,725,830	2,117,555	425,928	21,666,048
Sandra J. Price		177,184,197	3,662,610	422,506	21,666,048
Mark A. Ruelle		174,153,974	6,732,808	382,531	21,666,048
James Scarola		180,013,693	824,820	430,800	21,666,048
C. John Wilder		176,037,399	4,794,935	436,979	21,666,048

Item 2 on the Proxy Card. In an advisory and non-binding "say on pay" vote, shareholders approved the 2022 compensation of Evergy's named executive officers, with the following vote:


Number of Votes
For	Against	Abstain	Broker Non-Votes
173,989,500	6,479,331	800,482	21,666,048

Item 3 on the Proxy Card. Shareholders voted for the ratification and confirmation of the appointment of Deloitte & Touche LLP as Evergy's independent registered public accounting firm for 2023, with the following vote:


Number of Votes
For	Against	Abstain	Broker Non-Votes
197,521,839	4,927,348	486,174	0

Available Information

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6970

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ITEM 6. EXHIBITS

Exhibit

Number

Description of Document

Registrant

4.1

Nineteenth Supplemental Indenture, dated as of April 4, 2023, between Evergy Metro and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.1 to Evergy's and E vergy Metro 's Form 8-K filed on April 6, 2023).

Evergy
Evergy Metro

4.2

Fifty-First Supplemental Indenture, dated as of March 14, 2023, between Evergy Kansas Central, Inc. and The Bank of New York Mellon Trust company, N.A., as trustee (Exhibit 4.1 to Evergy's and Evergy Kansas Central's Form 8-K filed on March 14, 2023

Evergy
Evergy Kansas Central

10.1

F irst Amendment to Term Loan Credit Agreement, dated as of February 23, 2023, by and among Evergy, Inc., Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto (Exhibit 10.1 to Evergy's Form 8-K filed February 27, 2023).

Evergy

10.2

Form of Evergy, Inc. 2023 Performance-Based Restricted Stock Unit Agreement (Exhibit 10.9 to Evergy's Form 10-K for the period ended December 31, 2022).

Evergy
Evergy Kansas Central
Evergy Metro

10.3

F orm of Evergy, Inc. 2023 Time-Based Restricted Stock Unit Agreement (Exhibit 10.10 to Evergy's Form 10-K for the period ended December 31, 2022 ).

Evergy
Evergy Kansas Central
Evergy Metro

10.4

Evergy, Inc. 2023 Annual Incentive Plan (Exhibit 10.13 to Evergy's Form 10-K for the period ended December 31, 2022).

Evergy
Evergy Kansas Central
Evergy Metro

10.5

Evergy, Inc. Amended and Restated Nonqualified Deferred Compensation Plan, effective January 1, 2023 (Exhibit 10.26 to Evergy's Form 10-K for the period ended December 31, 2022).

Evergy
Evergy Kansas Central
Evergy Metro

10.6

Summary of Evergy, Inc. Non-Employee Director Compensation.

Evergy

31.1

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

Evergy

31.2

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

Evergy

31.3

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

Evergy Metro

31.4

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

Evergy Metro

31.5

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

Evergy Kansas Central

31.6

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

Evergy Kansas Central

32.1

Section 1350 Certifications.

Evergy

32.2

Section 1350 Certifications.

Evergy Metro

32.3

Section 1350 Certifications.

Evergy Kansas Central

101.INS

***

XBRL Instance Document.

n/a

101.SCH

Inline XBRL Taxonomy Extension Schema Document.

Evergy
Evergy Kansas Central
Evergy Metro

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

Evergy
Evergy Kansas Central
Evergy Metro

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101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.

Evergy
Evergy Kansas Central
Evergy Metro

101.LAB

Inline XBRL Taxonomy Extension Labels Linkbase Document.

Evergy
Evergy Kansas Central
Evergy Metro

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

Evergy
Evergy Kansas Central
Evergy Metro

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

Evergy
Evergy Kansas Central
Evergy Metro

* Filed with the SEC as exhibits to prior SEC filings and are incorporated herein by reference and made a part hereof. The SEC filings and the exhibit number of the documents so filed, and incorporated herein by reference, are stated in parenthesis in the description of such exhibit.

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

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

+ Indicates management contract or compensatory plan or arrangement.

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Copies of any of the exhibits filed with the SEC in connection with this document may be obtained from Evergy, Evergy Kansas Central or Evergy Metro, as applicable, upon written request.

The registrants agree to furnish to the SEC upon request any instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of total assets of such registrant and its subsidiaries on a consolidated basis.

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SIGNATURES

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


		EVERGY, INC.

Dated:	~~August 3, 2022~~May 4, 2023	By: /s/ Kirkland B. Andrews
		(Kirkland B. Andrews)
		(Executive Vice President and Chief Financial Officer)


		EVERGY KANSAS CENTRAL, INC.

Dated:	~~August 3, 2022~~May 4, 2023	By: /s/ Kirkland B. Andrews
		(Kirkland B. Andrews)
		(Executive Vice President and Chief Financial Officer)


		EVERGY METRO, INC.

Dated:	~~August 3, 2022~~May 4, 2023	By: /s/ Kirkland B. Andrews
		(Kirkland B. Andrews)
		(Executive Vice President and Chief Financial Officer)

7273


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

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


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

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


	Revenues and Expenses						MWhs Sold
Three Months Ended June 30	2022		Change		2021		2022	Change	2021
Retail revenues	(millions)						(thousands)
Residential	$	513.4	$	53.6	$	459.8	3,754	295	3,459
Commercial	465.5		43.0		422.5		4,388	218	4,170
Industrial	170.1		20.1		150.0		2,207	134	2,073
Other retail revenues	9.8		0.3		9.5		33	(2)	35
Total electric retail	1,158.8		117.0		1,041.8		10,382	645	9,737
Wholesale revenues	79.5		9.5		70.0		4,372	886	3,486
Transmission revenues	101.0		10.6		90.4		N/A	N/A	N/A
Other revenues	107.2		73.2		34.0		N/A	N/A	N/A
Operating revenues	1,446.5		210.3		1,236.2		14,754	1,531	13,223
Fuel and purchased power	(414.3)		(130.2)		(284.1)
SPP network transmission costs	(81.5)		(7.7)		(73.8)
Utility gross margin (a)	950.7		72.4		878.3
Operating and maintenance	(282.8)		(22.9)		(259.9)
Depreciation and amortization	(232.1)		(6.9)		(225.2)
Taxes other than income tax	(100.3)		(2.4)		(97.9)
Income from operations	$	335.5	$	40.2	$	295.3
(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.