Evergy Kansas Central 8-K Results of Operations and Financial Condition

Exhibit 99.2

Westar Energy, Inc.

Second Quarter 2014 Earnings

Released August 6, 2014

Contents	Page
Condensed Consolidated Statements of Income	1
Condensed Consolidated Balance Sheets	3
Condensed Consolidated Statements of Cash Flows	4
Earnings Variances	5
Supplemental Data	7
Capitalization & Long-Term Debt Table	9
GAAP to Non-GAAP Reconciliation	10

Bruce Burns

Director Investor Relations

785-575-8227

bruce.burns@WestarEnergy.com

NOTE:

The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q for the period ended June 30, 2014 should be read in conjunction with this financial information. The enclosed statements have been prepared for the purpose of providing information concerning the Company and not in connection with any sale, offer for sale, or solicitation to buy any securities.

Westar Energy, Inc.

Condensed Consolidated Statements of Income

(Unaudited)

	Three Months Ended June 30,
	2014			2013			Change			% Change
	(Dollars in Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	175,671		$	165,302		$	10,369		6.3
Commercial	178,194			165,172			13,022			7.9
Industrial	106,984			92,820			14,164			15.3
Other retail	(3,033		)	2,228			(5,261		)	(236.1	)
Total Retail Revenues	457,816			425,522			32,294			7.6
Wholesale	82,434			81,783			651			0.8
Transmission	63,700			52,804			10,896			20.6
Other	8,718			9,480			(762		)	(8.0	)
Total Revenues	612,668			569,589			43,079			7.6
OPERATING EXPENSES:
Fuel and purchased power	164,779			152,700			12,079			7.9
SPP network transmission costs	55,533			44,600			10,933			24.5
Operating and maintenance	101,839			87,999			13,840			15.7
Depreciation and amortization	70,882			67,597			3,285			4.9
Selling, general and administrative	62,168			54,477			7,691			14.1
Taxes other than income tax	34,738			30,704			4,034			13.1
Total Operating Expenses	489,939			438,077			51,862			11.8
INCOME FROM OPERATIONS	122,729			131,512			(8,783		)	(6.7	)
OTHER INCOME (EXPENSE):
Investment earnings	3,175			1,690			1,485			87.9
Other income	5,658			13,711			(8,053		)	(58.7	)
Other expense	(2,287		)	(2,354		)	67			2.8
Total Other Income	6,546			13,047			(6,501		)	(49.8	)
Interest expense	47,303			45,798			1,505			3.3
INCOME BEFORE INCOME TAXES	81,972			98,761			(16,789		)	(17.0	)
Income tax expense	26,150			29,310			(3,160		)	(10.8	)
NET INCOME	55,822			69,451			(13,629		)	(19.6	)
Less: Net income attributable to noncontrolling interests	2,349			2,263			86			3.8
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.	$	53,473		$	67,188		$	(13,715	)	(20.4	)
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
Basic earnings per common share	$	0.41		$	0.53		$	(0.12	)	(22.6	)
Diluted earnings per common share	$	0.40		$	0.52		$	(0.12	)	(23.1	)
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
Basic	129,363			127,311			2,052			1.6
Diluted	131,973			127,930			4,043			3.2
DIVIDENDS DECLARED PER COMMON SHARE	$	0.35		$	0.34		$	0.01		2.9
Effective income tax rate	31.90		%	29.68		%

The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q

for the period ended June 30, 2014 should be read in conjunction with this financial information.

Page 1

Westar Energy, Inc.

Condensed Consolidated Statements of Income

(Unaudited)

	Six Months Ended June 30,
	2014			2013			Change			% Change
	(Dollars in Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	367,958		$	330,678		$	37,280		11.3
Commercial	339,294			313,128			26,166			8.4
Industrial	201,480			183,745			17,735			9.7
Other retail	(11,557		)	(944		)	(10,613		)	(a)
Total Retail Revenues	897,175			826,607			70,568			8.5
Wholesale	193,047			168,253			24,794			14.7
Transmission	125,166			104,315			20,851			20.0
Other	25,836			16,626			9,210			55.4
Total Revenues	1,241,224			1,115,801			125,423			11.2
OPERATING EXPENSES:
Fuel and purchased power	338,618			304,452			34,166			11.2
SPP network transmission costs	107,491			88,396			19,095			21.6
Operating and maintenance	193,629			172,154			21,475			12.5
Depreciation and amortization	140,992			134,443			6,549			4.9
Selling, general and administrative	118,653			103,422			15,231			14.7
Taxes other than income tax	69,571			61,482			8,089			13.2
Total Operating Expenses	968,954			864,349			104,605			12.1
INCOME FROM OPERATIONS	272,270			251,452			20,818			8.3
OTHER INCOME (EXPENSE):
Investment earnings	5,553			5,749			(196		)	(3.4	)
Other income	11,575			17,427			(5,852		)	(33.6	)
Other expense	(7,952		)	(7,715		)	(237		)	(3.1	)
Total Other Income	9,176			15,461			(6,285		)	(40.7	)
Interest expense	93,543			90,082			3,461			3.8
INCOME BEFORE INCOME TAXES	187,903			176,831			11,072			6.3
Income tax expense	61,111			54,123			6,988			12.9
NET INCOME	126,792			122,708			4,084			3.3
Less: Net income attributable to noncontrolling interests	4,365			4,375			(10		)	(0.2	)
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.	$	122,427		$	118,333		$	4,094		3.5
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
Basic earnings per common share	$	0.95		$	0.93		$	0.02		2.2
Diluted earnings per common share	$	0.93		$	0.92		$	0.01		1.1
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
Basic	129,185			127,254			1,931			1.5
Diluted	131,779			127,735			4,044			3.2
DIVIDENDS DECLARED PER COMMON SHARE	$	0.70		$	0.68		$	0.02		2.9
Effective income tax rate	32.52		%	30.61		%

(a) Change greater than 1,000%.

The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q

for the period ended June 30, 2014 should be read in conjunction with this financial information.

Page 2

Westar Energy, Inc.

Condensed Consolidated Balance Sheets

(Dollars in Thousands, Except Par Values)

(Unaudited)

	June 30, 2014		December 31, 2013
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	10,751	$	4,487
Accounts receivable, net of allowance for doubtful accounts of $4,503 and $4,596, respectively	259,205		250,036
Fuel inventory and supplies	256,521		239,511
Deferred tax assets	41,878		37,954
Prepaid expenses	18,058		15,821
Regulatory assets	136,809		135,408
Other	24,931		23,608
Total Current Assets	748,153		706,825
PROPERTY, PLANT AND EQUIPMENT, NET	7,816,120		7,551,916
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET	291,253		296,626
OTHER ASSETS:
Regulatory assets	599,721		620,006
Nuclear decommissioning trust	185,896		175,625
Other	230,099		246,140
Total Other Assets	1,015,716		1,041,771
TOTAL ASSETS	$	9,871,242	$	9,597,138
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt	$	—	$	250,000
Current maturities of long-term debt of variable interest entities	28,098		27,479
Short-term debt	343,300		134,600
Accounts payable	171,162		233,351
Accrued dividends	45,182		43,604
Accrued taxes	76,592		69,769
Accrued interest	55,556		80,457
Regulatory liabilities	54,185		35,982
Other	85,579		80,184
Total Current Liabilities	859,654		955,426
LONG-TERM LIABILITIES:
Long-term debt, net	3,215,805		2,968,958
Long-term debt of variable interest entities, net	166,720		194,802
Deferred income taxes	1,423,021		1,363,148
Unamortized investment tax credits	190,702		192,265
Regulatory liabilities	307,053		293,574
Accrued employee benefits	325,449		331,558
Asset retirement obligations	177,755		160,682
Other	74,140		68,194
Total Long-Term Liabilities	5,880,645		5,573,181
COMMITMENTS AND CONTINGENCIES (See 10-Q Notes 10 and 11)
EQUITY:
Westar Energy, Inc. Shareholders’ Equity:
Common stock, par value $5 per share; authorized 275,000,000 shares; issued and outstanding 129,272,835 shares and 128,254,229 shares, respective to each date	646,364		641,271
Paid-in capital	1,718,017		1,696,727
Retained earnings	756,442		724,776
Total Westar Energy, Inc. Shareholders’ Equity	3,120,823		3,062,774
Noncontrolling Interests	10,120		5,757
Total Equity	3,130,943		3,068,531
TOTAL LIABILITIES AND EQUITY	$	9,871,242	$	9,597,138

The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q

for the period ended June 30, 2014 should be read in conjunction with this financial information.

Page 3

Westar Energy, Inc.

Condensed Consolidated Statements of Cash Flows

(In Thousands)

(Unaudited)

	Six Months Ended June 30,
	2014			2013
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income	$	126,792		$	122,708
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	140,992			134,443
Amortization of nuclear fuel	10,304			8,631
Amortization of deferred regulatory gain from sale leaseback	(2,748		)	(2,748		)
Amortization of corporate-owned life insurance	8,712			4,138
Non-cash compensation	3,945			4,146
Net deferred income taxes and credits	58,097			45,409
Stock-based compensation excess tax benefits	544			(399		)
Allowance for equity funds used during construction	(9,718		)	(5,689		)
Changes in working capital items:
Accounts receivable	(10,586		)	(15,271		)
Fuel inventory and supplies	(16,248		)	11,780
Prepaid expenses and other	(4,891		)	2,396
Accounts payable	(16,199		)	(24,838		)
Accrued taxes	8,293			16,196
Other current liabilities	(32,477		)	(58,624		)
Changes in other assets	1,828			(28,048		)
Changes in other liabilities	16,674			17,080
Cash Flows from Operating Activities	283,314			231,310
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(427,124		)	(398,998		)
Purchase of securities - trusts	(4,410		)	(59,986		)
Sale of securities - trusts	5,552			75,475
Investment in corporate-owned life insurance	(15,903		)	(17,408		)
Proceeds from investment in corporate-owned life insurance	1,773			101,085
Proceeds from federal grant	—			876
Investment in affiliated company	1,418			—
Other investing activities	(1,544		)	(2,362		)
Cash Flows used in Investing Activities	(440,238		)	(301,318		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	208,533			70,617
Proceeds from long-term debt	171,785			245,813
Retirements of long-term debt	(177,500		)	(100,000		)
Retirements of long-term debt of variable interest entities	(27,305		)	(25,474		)
Repayment of capital leases	(1,628		)	(1,539		)
Borrowings against cash surrender value of corporate-owned life insurance	56,577			57,948
Repayment of borrowings against cash surrender value of corporate-owned life insurance	(1,123		)	(100,060		)
Stock-based compensation excess tax benefits	(544		)	399
Issuance of common stock	20,699			2,992
Distributions to shareholders of noncontrolling interests	—			(1,658		)
Cash dividends paid	(84,419		)	(80,886		)
Other financing activities	(1,887		)	—
Cash Flows from Financing Activities	163,188			68,152
NET CHANGE IN CASH AND CASH EQUIVALENTS	6,264			(1,856		)
CASH AND CASH EQUIVALENTS:
Beginning of period	4,487			5,829
End of period	$	10,751		$	3,973

The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q

for the period ended June 30, 2014 should be read in conjunction with this financial information.

Page 4

Westar Energy, Inc.

2nd Quarter 2014 vs. 2013

Earnings Variances
				Change
		($ per share)		(Dollars in Thousands)				($ per share)
2013 basic earnings attributable to common stock				$	67,188			$	0.53
		Favorable/(Unfavorable)
	Retail			32,294			A
	Wholesale			651
	Transmission			10,896
	Other revenues			(762		)
	Fuel and purchased power			(12,079		)	B
	SPP network transmission costs			(10,933		)
	Gross Margin			20,067
	Operating and maintenance			(13,840		)	C
	Depreciation and amortization			(3,285		)	D
	Selling, general and administrative			(7,691		)	E
	Taxes other than income tax			(4,034		)	F
	Other income (expense)			(6,501		)	G
	Interest expense			(1,505		)
	Income tax expense			3,160			H
	Net income attributable to noncontrolling interests			(86		)
	Change in shares outstanding	(0.01	)
2014 basic earnings attributable to common stock				$	53,473			$	0.41
	Major factors influencing the period to period change in EPS -- Favorable/(Unfavorable)
A	Due primarily to increased average retail prices (see page 7 for changes by customer class)
B	Due primarily to an increase in purchased power
C	Due primarily to higher planned maintenance costs at coal-fired plants -- ($9.2M); and higher costs at Wolf Creek incurred during a scheduled outage-- ($4.3M)
D	Due principally to property additions and implementing new software systems
E	Due principally to higher benefit costs including the effect of restructuring insurance contracts in 2013 used to fund those benefits -- ($4.5M)
F	Due primarily to higher property tax expense that is largely offset by increased prices -- ($3.5M)
G	Due primarily to no COLI death benefits this year -- ($10.0M); higher equity AFUDC -- $1.8M
H	Due primarily to lower income before income taxes

The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q

for the period ended June 30, 2014 should be read in conjunction with this financial information.

Page 5

Westar Energy, Inc.

YTD June 2014 vs. 2013

Earnings Variances
				Change
		($ per share)		(Dollars in Thousands)				($ per share)
2013 basic earnings attributable to common stock				$	118,333			$	0.93
		Favorable/(Unfavorable)
	Retail			70,568			A
	Wholesale			24,794			B
	Transmission			20,851
	Other revenues			9,210			C
	Fuel and purchased power			(34,166		)	D
	SPP network transmission costs			(19,095		)
	Gross Margin			72,162
	Operating and maintenance			(21,475		)	E
	Depreciation and amortization			(6,549		)	F
	Selling, general and administrative			(15,231		)	G
	Taxes other than income tax			(8,089		)	H
	Other income (expense)			(6,285		)	I
	Interest expense			(3,461		)
	Income tax expense			(6,988		)	J
	Net income attributable to noncontrolling interests			10
	Change in shares outstanding	(0.01	)
2014 basic earnings attributable to common stock				$	122,427			$	0.95
	Major factors influencing the period to period change in EPS -- Favorable/(Unfavorable)
A	Due primarily to increased average retail prices (see page 8 for changes by customer class)
B	Due to a 10% increase in MWh sales at higher average prices (see page 8 for changes by customer class)
C	Due primarily to an increase in energy marketing margins from favorable market conditions primarily in Q1 -- $11.1M
D	Due primarily to higher average cost of purchased power
E	Due primarily to higher costs at Wolf Creek incurred during a planned outage -- ($11.4M); and higher costs for planned maintenance at coal fired plants -- ($7.0M)
F	Due principally to property additions and implementing new software systems
G	Due principally to higher benefit costs including the effect of restructuring insurance contracts in 2013 -- ($7.8M); integration costs associated with implementing new software systems -- ($2.3M)
H	Due primarily to higher property tax expense that is largely offset by increased prices -- ($6.8M)
I	Due primarily to no COLI death benefits this year -- ($10.0M); higher equity AFUDC -- $4.0 M
J	Due primarily to higher income before income taxes

The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q

for the period ended June 30, 2014 should be read in conjunction with this financial information.

Page 6

Westar Energy, Inc.

Revenue, Sales and Energy Supply

Supplemental Data	Three Months Ended June 30,
	2014			2013			Change			% Change
Revenues	(Dollars In Thousands)
Residential	$	175,671		$	165,302		$	10,369		6.3
Commercial	178,194			165,172			13,022			7.9
Industrial	106,984			92,820			14,164			15.3
Other retail	3,521			3,170			351			11.1
Provision for rate refunds	(6,554		)	(942		)	(5,612		)	(595.8	)
Total Retail Revenues	457,816			425,522			32,294			7.6
Tariff-based wholesale	63,976			62,490			1,486			2.4
Market-based wholesale	18,458			19,293			(835		)	(4.3	)
Transmission	63,700			52,804			10,896			20.6
Other	8,718			9,480			(762		)	(8.0	)
Total Revenues	$	612,668		$	569,589		$	43,079		7.6
Electricity Sales	(Thousands of MWh)
Residential	1,416			1,460			(44		)	(3.0	)
Commercial	1,842			1,856			(14		)	(0.8	)
Industrial	1,447			1,312			135			10.3
Other retail	21			21			—			—
Total Retail	4,726			4,649			77			1.7
Tariff-based wholesale	1,191			1,327			(136		)	(10.2	)
Market-based wholesale	813			721			92			12.8
Total wholesale	2,004			2,048			(44		)	(2.1	)
Total Electricity Sales	6,730			6,697			33			0.5
	(Dollars per MWh)
Total retail	$	96.87		$	91.53		$	5.34		5.8
Tariff-based wholesale	$	53.72		$	47.09		$	6.63		14.1
Market-based wholesale	$	22.70		$	26.76		$	(4.06	)	(15.2	)
Fuel and Purchased Power	(Dollars In Thousands)
Fuel used for generation	$	115,813		$	130,158		$	(14,345	)	(11.0	)
Purchased power	59,071			30,518			28,553			93.6
Subtotal	174,884			160,676			14,208			8.8
RECA recovery and other	(10,105		)	(7,976		)	(2,129		)	(26.7	)
Total fuel and purchased power expense	$	164,779		$	152,700		$	12,079		7.9
Electricity Supply	(Thousands of MWh)
Generated - Gas	321			514			(193		)	(37.5	)
Coal	4,459			4,748			(289		)	(6.1	)
Nuclear	633			837			(204		)	(24.4	)
Wind	116			110			6			5.5
Subtotal electricity generated	5,529			6,209			(680		)	(11.0	)
Purchased	1,501			910			591			64.9
Total Electricity Supply	7,030			7,119			(89		)	(1.3	)
	(Dollars per MWh)
Average cost of fuel used for generation	$	20.95		$	20.96		$	(0.01	)	—
Average cost of purchased power	$	39.35		$	33.54		$	5.81		17.3
Average cost of fuel and purchased power	$	24.88		$	22.57		$	2.31		10.2
Degree Days				2013/
	2014			20 yr Avg			Change			% Change
Cooling
Actual compared to last year	553			496			57			11.5
Actual compared to 20 year average	553			457			96			21.0
Heating
Actual compared to last year	393			581			(188		)	(32.4	)
Actual compared to 20 year average	393			385			8			2.1

The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q

for the period ended June 30, 2014 should be read in conjunction with this financial information.

Page 7

Westar Energy, Inc.

Revenue, Sales and Energy Supply

Supplemental Data	Six Months Ended June 30,
	2014			2013			Change			% Change
Revenues	(Dollars In Thousands)
Residential	$	367,958		$	330,678		$	37,280		11.3
Commercial	339,294			313,128			26,166			8.4
Industrial	201,480			183,745			17,735			9.7
Other retail	6,982			6,367			615			9.7
Provision for rate refunds	(18,539		)	(7,311		)	(11,228		)	(153.6	)
Total Retail Revenues	897,175			826,607			70,568			8.5
Tariff-based wholesale	131,870			134,239			(2,369		)	(1.8	)
Market-based wholesale	61,177			34,014			27,163			79.9
Transmission	125,166			104,315			20,851			20.0
Other	25,836			16,626			9,210			55.4
Total Revenues	$	1,241,224		$	1,115,801		$	125,423		11.2
Electricity Sales	(Thousands of MWh)
Residential	3,125			3,003			122			4.1
Commercial	3,602			3,558			44			1.2
Industrial	2,786			2,624			162			6.2
Other retail	42			43			(1		)	(2.3	)
Total Retail	9,555			9,228			327			3.5
Tariff-based wholesale	2,563			2,807			(244		)	(8.7	)
Market-based wholesale	1,918			1,286			632			49.1
Total wholesale	4,481			4,093			388			9.5
Total Electricity Sales	14,036			13,321			715			5.4
	(Dollars per MWh)
Total retail	$	93.90		$	89.58		$	4.32		4.8
Tariff-based wholesale	$	51.45		$	47.82		$	3.63		7.6
Market-based wholesale	$	31.90		$	26.45		$	5.45		20.6
Fuel and Purchased Power	(Dollars In Thousands)
Fuel used for generation	$	254,463		$	257,812		$	(3,349	)	(1.3	)
Purchased power	98,522			59,534			38,988			65.5
Subtotal	352,985			317,346			35,639			11.2
RECA recovery and other	(14,367		)	(12,894		)	(1,473		)	(11.4	)
Total fuel and purchased power expense	$	338,618		$	304,452		$	34,166		11.2
Electricity Supply	(Thousands of MWh)
Generated - Gas	625			864			(239		)	(27.7	)
Coal	9,640			9,934			(294		)	(3.0	)
Nuclear	1,527			1,292			235			18.2
Wind	229			214			15			7.0
Subtotal electricity generated	12,021			12,304			(283		)	(2.3	)
Purchased	2,546			1,767			779			44.1
Total Electricity Supply	14,567			14,071			496			3.5
	(Dollars per MWh)
Average cost of fuel used for generation	$	21.17		$	20.95		$	0.22		1.1
Average cost of purchased power	$	38.70		$	33.69		$	5.01		14.9
Average cost of fuel and purchased power	$	24.23		$	22.55		$	1.68		7.5
Degree Days				2013/
	2014			20 yr Avg			Change			% Change
Cooling
Actual compared to last year	553			496			57			11.5
Actual compared to 20 year average	553			459			94			20.5
Heating
Actual compared to last year	3,196			3,092			104			3.4
Actual compared to 20 year average	3,196			2,814			382			13.6

The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q

for the period ended June 30, 2014 should be read in conjunction with this financial information.

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Westar Energy, Inc.

Capitalization
		June 30, 2014					December 31, 2013
		(Dollars in Thousands)
Current maturities of long-term debt		$	—				$	250,000
Current maturities of long-term debt of VIEs		28,098					27,479
Long-term debt, net		3,215,805					2,968,958
Long-term debt of variable interest entities, net		166,720					194,802
Total long-term debt		3,410,623			52.1	%	3,441,239			52.9	%
Common equity		3,120,823			47.7	%	3,062,774			47.0	%
Noncontrolling interests		10,120			0.2	%	5,757			0.1	%
Total capitalization		$	6,541,566		100.0	%	$	6,509,770		100.0	%
GAAP Book value per share		$	24.14				$	23.88
Period end shares outstanding (in thousands)		129,273					128,254
Outstanding Long-Term Debt
	CUSIP	June 30, 2014					December 31, 2013
Westar Energy:		(Dollars in Thousands)
First Mortgage Bond series:
6.00% Series due July 2014	95709TAA8	$	250,000				$	250,000
5.15% Series due January 2017	95709TAB6	125,000					125,000
8.625% Series due December 2018	95709TAG5	300,000					300,000
5.10% Series due July 2020	95709TAD2	250,000					250,000
5.95% Series due January 2035	95709TAC4	125,000					125,000
5.875% Series due July 2036	95709TAE0	150,000					150,000
4.125% Series due March 2042	95709TAH3	550,000					550,000
4.10% Series due April 2043	95709TAJ9	430,000					250,000
4.625% Series due September 2043	95709TAK6	250,000					250,000
		2,430,000					2,250,000
Pollution control bond series:
Variable series due April 2032 (Wamego)	933623BN9	30,500					30,500
Variable series due April 2032 (St Marys)	792609AF6	45,000					45,000
		75,500					75,500
Total Westar Energy		2,505,500					2,325,500
KGE
First mortgage bond series:
6.70%Series due June 2019	485260BL6	300,000					300,000
6.15% Series due May 2023	485260B@1	50,000					50,000
6.53% Series due December 2037	485260BJ1	175,000					175,000
6.64%Series due May 2038	485260B#9	100,000					100,000
		625,000					625,000
Pollution control bond series:
Variable rate series due April 2027 (LaCygne)	502828AJ5	21,940					21,940
5.3% Series due June 2031	121825BW2	—					108,600
5.3% Series due June 2031	933623BR0	—					18,900
4.85% Series due June 2031	121825CB7	50,000					50,000
5.0% Series due June 2031	121825CF8	—					50,000
Variable rate series due April 2032 (St Marys)	792609AE9	14,500					14,500
Variable rate series due April 2032 (Wamego)	933623BM1	10,000					10,000
		96,440					273,940
Total KGE		721,440					898,940
Total long-term debt		3,226,940					3,224,440
Unamortized debt discount		(11,135		)			(5,482		)
Long-term debt due within one year		—					(250,000		)
Total long-term debt, net		$	3,215,805				$	2,968,958

The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q

for the period ended June 30, 2014 should be read in conjunction with this financial information.

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Westar Energy, Inc.

GAAP to Non-GAAP Reconciliation

Fuel and purchased power costs fluctuate with electricity sales and unit costs. As permitted by regulators, prices are adjusted to reflect changes in the costs of fuel and purchased power. Fuel and purchased power costs for wholesale customers are recovered at prevailing market prices or based on a predetermined formula with a price adjustment approved by FERC. As a result, changes in fuel and purchased power costs are offset in revenues with minimal impact on net income. For this reason, Westar management believes that gross margin is useful for understanding and analyzing changes in operating performance from one period to the next. Gross margin is calculated as total revenues, including transmission revenues, less the sum of fuel and purchased power costs and amounts billed by the SPP for network transmission costs (SPP NITS). Accordingly, gross margin reflects transmission revenues and costs on a net basis.

The calculations of gross margin for the three and six months ended June 30, 2014 and 2013 are shown in the table below. The table also includes a reconciliation of gross margin to income from operations for both periods. Income from operations is the GAAP financial measure most directly comparable to gross margin.

	Three Months Ended June 30,							Six Months Ended June 30,
	2014		2013		Change			2014		2013		Change
	(Dollars in Thousands)
Revenues	$	612,668	$	569,589	$	43,079		$	1,241,224	$	1,115,801	$	125,423
Less: Fuel and purchased power expense	164,779		152,700		12,079			338,618		304,452		34,166
SPP network transmission costs	55,533		44,600		10,933			107,491		88,396		19,095
Gross Margin	$	392,356	$	372,289	$	20,067		$	795,115	$	722,953	$	72,162
Gross margin	$	392,356	$	372,289	$	20,067		$	795,115	$	722,953	$	72,162
Less: Operating and maintenance expense	101,839		87,999		13,840			193,629		172,154		21,475
Depreciation and amortization expense	70,882		67,597		3,285			140,992		134,443		6,549
Selling, general and administrative expense	62,168		54,477		7,691			118,653		103,422		15,231
Taxes other than income tax	34,738		30,704		4,034			69,571		61,482		8,089
Income from operations	$	122,729	$	131,512	$	(8,783	)	$	272,270	$	251,452	$	20,818

The Notes to the Condensed Consolidated Financial Statements in the company's Quarterly Report on Form 10-Q

for the period ended June 30, 2014 should be read in conjunction with this financial information.

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