Evergy Kansas Central 8-K Westar Energy Announces 2014 Results

Exhibit 99.2

Westar Energy, Inc.

Fourth Quarter and Year-end 2014 Earnings

Released February 25, 2015

Contents	Page
Consolidated Statements of Income	2
Consolidated Balance Sheets	4
Consolidated Statements of Cash Flows	5
Earnings Variances	6
Supplemental Data	8
Capitalization & Long-Term Debt Table	10
GAAP to Non-GAAP Reconciliation	11
Supplemental Slides
2015 Earnings Guidance	12
2015 - 2019 Capital Forecast	13
Dividend	14

Bruce Burns

Director Investor Relations

785-575-8227

bruce.burns@WestarEnergy.com

NOTE:

The Notes to the Consolidated Financial Statements in the company's Annual Report on Form 10-K for the period ended December 31, 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.

Consolidated Statements of Income

(Unaudited)

	Three Months Ended December 31,
	2014			2013			Change			% Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	164,522		$	160,190		$	4,332		2.7
Commercial	165,082			154,057			11,025			7.2
Industrial	100,478			92,670			7,808			8.4
Other retail	(6,592		)	6,034			(12,626		)	(209.2	)
Total Retail Revenues	423,490			412,951			10,539			2.6
Wholesale	102,003			85,491			16,512			19.3
Transmission	64,527			53,556			10,971			20.5
Other	6,419			7,880			(1,461		)	(18.5	)
Total Revenues	596,439			559,878			36,561			6.5
OPERATING EXPENSES:
Fuel and purchased power	166,077			151,783			14,294			9.4
SPP network transmission costs	55,713			44,894			10,819			24.1
Operating and maintenance	89,347			93,528			(4,181		)	(4.5	)
Depreciation and amortization	73,172			69,289			3,883			5.6
Selling, general and administrative	70,807			66,464			4,343			6.5
Taxes other than income	36,054			30,392			5,662			18.6
Total Operating Expenses	491,170			456,350			34,820			7.6
INCOME FROM OPERATIONS	105,269			103,528			1,741			1.7
OTHER INCOME (EXPENSE):
Investment earnings	3,414			1,444			1,970			136.4
Other income	4,956			5,861			(905		)	(15.4	)
Other expense	(4,196		)	(4,188		)	(8		)	(0.2	)
Total Other Income	4,174			3,117			1,057			33.9
Interest expense	45,043			46,377			(1,334		)	(2.9	)
INCOME BEFORE INCOME TAXES	64,400			60,268			4,132			6.9
Income tax expense	18,627			17,207			1,420			8.3
NET INCOME	45,773			43,061			2,712			6.3
Less: Net income attributable to noncontrolling interests	2,324			1,999			325			16.3
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.	$	43,449		$	41,062		$	2,387		5.8
Earnings per common share, basic	$	0.33		$	0.32		$	0.01		3.1
Diluted earnings per common share	$	0.32		$	0.32		$	—		—
Weighted average equivalent common shares outstanding – basic (in thousands)	131,467			127,892			3,575			2.8
Weighted average equivalent common shares outstanding – diluted (in thousands)	134,522			129,643			4,879			3.8
DIVIDENDS DECLARED PER COMMON SHARE	$	0.35		$	0.34		$	0.01		2.9
Effective income tax rate	28.92		%	28.55		%

The Notes to the Consolidated Financial Statements in the company's Annual Report on Form 10-K

for the period ended December 31, 2014 should be read in conjunction with this financial information.

Page 2

Westar Energy, Inc.

Consolidated Statements of Income

(Unaudited)

	Twelve Months Ended December 31,
	2014			2013			Change			% Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	793,586		$	728,852		$	64,734		8.9
Commercial	727,964			667,106			60,858			9.1
Industrial	414,997			374,825			40,172			10.7
Other retail	(24,180		)	8,939			(33,119		)	(370.5	)
Total Retail Revenues	1,912,367			1,779,722			132,645			7.5
Wholesale	392,730			348,239			44,491			12.8
Transmission	256,838			210,281			46,557			22.1
Other	39,768			32,412			7,356			22.7
Total Revenues	2,601,703			2,370,654			231,049			9.7
OPERATING EXPENSES:
Fuel and purchased power	705,450			634,797			70,653			11.1
SPP network transmission costs	218,924			178,604			40,320			22.6
Operating and maintenance	367,188			359,060			8,128			2.3
Depreciation and amortization	286,442			272,593			13,849			5.1
Selling, general and administrative	250,439			224,133			26,306			11.7
Taxes other than income	140,302			122,282			18,020			14.7
Total Operating Expenses	1,968,745			1,791,469			177,276			9.9
INCOME FROM OPERATIONS	632,958			579,185			53,773			9.3
OTHER INCOME (EXPENSE):
Investment earnings	10,622			10,056			566			5.6
Other income	31,522			35,609			(4,087		)	(11.5	)
Other expense	(18,389		)	(18,099		)	(290		)	(1.6	)
Total Other Income	23,755			27,566			(3,811		)	(13.8	)
Interest expense	183,118			182,167			951			0.5
INCOME BEFORE INCOME TAXES	473,595			424,584			49,011			11.5
Income tax expense	151,270			123,721			27,549			22.3
NET INCOME	322,325			300,863			21,462			7.1
Less: Net income attributable to noncontrolling interests	9,066			8,343			723			8.7
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.	$	313,259		$	292,520		$	20,739		7.1
Earnings per common share, basic	$	2.40		$	2.29		$	0.11		4.8
Diluted earnings per common share	$	2.35		$	2.27		$	0.08		3.5
Weighted average equivalent common shares outstanding – basic (in thousands)	130,015			127,463			2,552			2.0
Weighted average equivalent common shares outstanding – diluted (in thousands)	132,825			128,299			$	4,526		3.5
DIVIDENDS DECLARED PER COMMON SHARE	$	1.40		$	1.36		$	0.04		2.9
Effective income tax rate	31.94		%	29.14		%

The Notes to the Consolidated Financial Statements in the company's Annual Report on Form 10-K

for the period ended December 31, 2014 should be read in conjunction with this financial information.

Page 3

Westar Energy, Inc.

Consolidated Balance Sheets

(Dollars in Thousands, Except Par Values)

(Unaudited)

	December 31, 2014		December 31, 2013
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	4,556	$	4,487
Accounts receivable, net of allowance for doubtful accounts of $5,309 and $4,596, respectively	267,327		250,036
Fuel inventory and supplies	247,406		239,511
Deferred tax assets	29,636		37,954
Prepaid expenses	15,793		15,821
Regulatory assets	105,549		135,408
Other	30,655		23,608
Total Current Assets	700,922		706,825
PROPERTY, PLANT AND EQUIPMENT, NET	8,162,908		7,551,916
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET	278,573		296,626
OTHER ASSETS:
Regulatory assets	754,229		620,006
Nuclear decommissioning trust	185,016		175,625
Other	265,353		246,140
Total Other Assets	1,204,598		1,041,771
TOTAL ASSETS	$	10,347,001	$	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	27,933		27,479
Short-term debt	257,600		134,600
Accounts payable	219,351		233,351
Accrued dividends	44,971		43,604
Accrued taxes	74,356		69,769
Accrued interest	79,707		80,457
Regulatory liabilities	55,142		35,982
Other	90,571		80,184
Total Current Liabilities	849,631		955,426
LONG-TERM LIABILITIES:
Long-term debt, net	3,215,539		2,968,958
Long-term debt of variable interest entities, net	166,565		194,802
Deferred income taxes	1,475,487		1,363,148
Unamortized investment tax credits	211,040		192,265
Regulatory liabilities	288,343		293,574
Accrued employee benefits	532,622		331,558
Asset retirement obligations	230,668		160,682
Other	75,799		68,194
Total Long-Term Liabilities	6,196,063		5,573,181
COMMITMENTS AND CONTINGENCIES (See Notes 13 and 15)
EQUITY:
Westar Energy, Inc. Shareholders’ Equity:
Common stock, par value $5 per share; authorized 275,000,000 shares; issued and outstanding 131,687,454 shares and 128,254,229 shares, respective to each date	658,437		641,271
Paid-in capital	1,781,120		1,696,727
Retained earnings	855,299		724,776
Total Westar Energy, Inc. Shareholders’ Equity	3,294,856		3,062,774
Noncontrolling Interests	6,451		5,757
Total Equity	3,301,307		3,068,531
TOTAL LIABILITIES AND EQUITY	$	10,347,001	$	9,597,138

The Notes to the Consolidated Financial Statements in the company's Annual Report on Form 10-K

for the period ended December 31, 2014 should be read in conjunction with this financial information.

Page 4

Westar Energy, Inc.

Consolidated Statements of Cash Flows

(In Thousands)

(Unaudited)

	Twelve Months Ended December 31,
	2014			2013
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income	$	322,325		$	300,863
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	286,442			272,593
Amortization of nuclear fuel	26,051			22,690
Amortization of deferred regulatory gain from sale leaseback	(5,495		)	(5,495		)
Amortization of corporate-owned life insurance	20,202			15,149
Non-cash compensation	7,280			8,188
Net deferred income taxes and credits	151,451			123,307
Stock-based compensation excess tax benefits	(875		)	(576		)
Allowance for equity funds used during construction	(17,029		)	(14,143		)
Changes in working capital items:
Accounts receivable	(17,291		)	(24,649		)
Fuel inventory and supplies	(8,773		)	10,124
Prepaid expenses and other	36,717			(12,316		)
Accounts payable	6,189			7,856
Accrued taxes	6,596			14,218
Other current liabilities	(31,624		)	(52,829		)
Changes in other assets	6,378			(4,167		)
Changes in other liabilities	35,811			41,990
Cash Flows from Operating Activities	824,355			702,803
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(852,052		)	(780,098		)
Purchase of securities - trust	(9,075		)	(66,668		)
Sale of securities - trust	11,125			81,994
Investment in corporate-owned life insurance	(16,250		)	(17,724		)
Proceeds from investment in corporate-owned life insurance	43,234			147,658
Proceeds from federal grant	—			876
Investment in affiliated company	(8,000		)	(4,947		)
Other investing activities	(7,730		)	(2,992		)
Cash Flows used in Investing Activities	(838,748		)	(641,901		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	122,406			(205,241		)
Proceeds from long-term debt	417,943			492,347
Retirements of long-term debt	(427,500		)	(100,000		)
Retirements of long-term debt of variable interest entities	(27,479		)	(25,942		)
Repayment of capital leases	(3,340		)	(2,995		)
Borrowings against cash surrender value of corporate-owned life insurance	59,766			59,565
Repayment of borrowings against cash surrender value of corporate-owned life insurance	(41,249		)	(145,418		)
Stock-based compensation excess tax benefits	875			576
Issuance of common stock	87,669			32,906
Distributions to shareholders of noncontrolling interests	(1,030		)	(2,419		)
Cash dividends paid	(171,507		)	(162,904		)
Other financing activities	(2,092		)	(2,719		)
Cash Flows from (used in) Financing Activities	14,462			(62,244		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	69			(1,342		)
CASH AND CASH EQUIVALENTS:
Beginning of period	4,487			5,829
End of period	$	4,556		$	4,487

The Notes to the Consolidated Financial Statements in the company's Annual Report on Form 10-K

for the period ended December 31, 2014 should be read in conjunction with this financial information.

Page 5

Westar Energy, Inc.

4th Quarter 2014 vs. 2013

Earnings Variances
				Change
		($ per share)		(Dollars in Thousands)				($ per share)
2013 earnings attributable to common stock				$	41,062			$	0.32
		Favorable/(Unfavorable)
	Retail			10,539			A
	Wholesale			16,512			B
	Transmission			10,971
	Other revenues			(1,461		)
	Fuel and purchased power			(14,294		)	C
	SPP network transmission costs			(10,819		)	D
	Gross Margin			11,448
	Operating and maintenance			4,181			E
	Depreciation and amortization			(3,883		)	F
	Selling, general and administrative			(4,343		)	G
	Taxes other than income taxes			(5,662		)	H
	Other income (expense)			1,057			I
	Interest expense			1,334
	Income tax expense			(1,420		)
	Net income attributable to noncontrolling interests			(325		)
	Change in shares outstanding	(0.01	)
2014 earnings attributable to common stock				$	43,449			$	0.33
	Major factors influencing the period to period change in EPS -- Favorable/(Unfavorable)
A	Due primarily to a 6% increase in average retail prices (see page 8 for changes by customer class)
B	Due primarily to a 22% increase in MWh sales(see page 8 for changes by customer class)
C	Due primarily to an increase in purchased power
D	Due principally to increased investment in the transmission system (offset through increased prices)
E	Due primarily to decrease in maintenance costs at Wolf Creek - $4.8M; reduction in storm deferral -- $1.4M; and timing of tree trimming costs -- $1.2M; offset by an increase in planned maintenance outages -- ($3.9M)
F	Due to additional depreciation expense associated primarily with additions at our power plants
G	Higher fees related to implementing new software systems ($2.4M); and higher allowance for uncollectible accounts -- ($0.6M)
H	Due primarily to increase in property taxes (offset through increased prices) -- ($5.5M)
I	Due primarily to Prairie Wind equity earnings -- $3M; partially offset by a decrease in equity AFUDC -- ($1M)

The Notes to the Consolidated Financial Statements in the company's Annual Report on Form 10-K

for the period ended December 31, 2014 should be read in conjunction with this financial information.

Page 6

Westar Energy, Inc.

YTD December 2014 vs. 2013

Earnings Variances
				Change
		($ per share)		(Dollars in Thousands)				($ per share)
2013 earnings attributable to common stock				$	292,520			$	2.29
		Favorable/(Unfavorable)
	Retail			132,645			A
	Wholesale			44,491			B
	Transmission			46,557
	Other revenues			7,356
	Fuel and purchased power			(70,653		)	C
	SPP network transmission costs			(40,320		)	D
	Gross Margin			120,076
	Operating and maintenance			(8,128		)	E
	Depreciation and amortization			(13,849		)
	Selling, general and administrative			(26,306		)	F
	Taxes other than income			(18,020		)	G
	Other income (expense)			(3,811		)	H
	Interest expense			(951		)
	Income tax expense			(27,549		)
	Net income attributable to noncontrolling interests			(723		)
	Preferred dividends			—
	Change in shares outstanding	(0.05	)
2014 earnings attributable to common stock				$	313,259			$	2.40
	Major factors influencing the period to period change in EPS -- Favorable/(Unfavorable)
A	Due primarily to a 6% increase in average retail prices (see page 9 for changes by customer class)
B	Due to a 11% increase in MWh sales (see page 9 for changes by customer class)
C	Due primarily to an increase in purchased power
D	Due principally to increased investment in the transmission system (offset through increased prices)
E	Due primarily to planned outage at Wolf Creek -- ($9M); higher costs at generating plants primarily for planned outages at coal-fired plants -- ($6.4M); and higher costs for transmission system -- ($4.3); partially offset by lower expense for previously deferred storm costs -- $7.8M; and lower maintenance expenses for Wolf Creek -- $5M
F	Due primarily to: increase in employee benefit costs including the effect of restructuring insurance contracts in 2013 -- ($10.6M); integration costs associated with implementing new software systems -- ($6.1M); and higher allowance for uncollectible accounts -- ($2.7M)
G	Due primarily to an increase in property taxes (offset through increased prices) -- ($16.2M)
H	Due primarily to: increased investment earnings in Prairie Wind Transmission JV -- $4.9M; and higher equity AFUDC -- $2.9M; offset by lower COLI proceeds -- ($7M); and reduced earnings in a trust to fund retirement benefits ($4.1M)

The Notes to the Consolidated Financial Statements in the company's Annual Report on Form 10-K

for the period ended December 31, 2014 should be read in conjunction with this financial information.

Page 7

Westar Energy, Inc.

Revenue, Sales and Energy Supply

Supplemental Data	Three Months Ended December 31,
	2014			2013		Change			% Change
Revenues	(Dollars In Thousands)
Residential	$	164,522		$	160,190	$	4,332		2.7
Commercial	165,082			154,057		11,025			7.2
Industrial	100,478			92,670		7,808			8.4
Other retail	3,561			3,219		342			10.6
Provision for rate refunds	(10,153		)	2,815		(12,968		)	(460.7	)
Total Retail Revenues	423,490			412,951		10,539			2.6
Tariff-based wholesale	66,454			66,088		366			0.6
Market-based wholesale	35,549			19,403		16,146			83.2
Transmission	64,527			53,556		10,971			20.5
Other	6,419			7,880		(1,461		)	(18.5	)
Total Revenues	$	596,439		$	559,878	$	36,561		6.5
Electricity Sales	(Thousands of MWh)
Residential	1,352			1,448		(96		)	(6.6	)
Commercial	1,729			1,758		(29		)	(1.6	)
Industrial	1,349			1,387		(38		)	(2.7	)
Other retail	21			21		—			—
Total Retail	4,451			4,614		(163		)	(3.5	)
Tariff-based wholesale	1,212			1,359		(147		)	(10.8	)
Market-based wholesale	1,386			775		611			78.8
Total wholesale	2,598			2,134		464			21.7
Total Electricity Sales	7,049			6,748		301			4.5
	(Dollars per MWh)
Total retail	$	95.14		$	89.50	$	5.64		6.3
Tariff-based wholesale	$	54.83		$	48.63	$	6.20		12.7
Market-based wholesale	$	25.65		$	25.04	$	0.61		2.4
Fuel and Purchased Power	(Dollars In Thousands)
Fuel used for generation	$	112,497		$	119,215	$	(6,718	)	(5.6	)
Purchased power	44,590			27,823		16,767			60.3
Subtotal	157,087			147,038		10,049			6.8
RECA recovery and other	8,990			4,745		4,245			89.5
Total fuel and purchased power expense	$	166,077		$	151,783	$	14,294		9.4
Electricity Supply	(Thousands of MWh)
Generated - Gas	298			301		(3		)	(1.0	)
Coal	4,326			4,768		(442		)	(9.3	)
Nuclear	1,253			1,110		143			12.9
Wind	111			116		(5		)	(4.3	)
Subtotal electricity generated	5,988			6,295		(307		)	(4.9	)
Purchased	1,324			825		499			60.5
Total Electricity Supply	7,312			7,120		192			2.7
	(Dollars per MWh)
Average cost of fuel used for generation	$	18.79		$	18.94	$	(0.15	)	(0.8	)
Average cost of purchased power	$	33.68		$	33.72	$	(0.04	)	(0.1	)
Average cost of fuel and purchased power	$	21.48		$	20.65	$	0.83		4.0
Degree Days				2013/
	2014			20 yr Avg		Change			% Change
Cooling
Actual compared to last year	52			45		7			15.6
Actual compared to 20 year average	52			39		13			33.3
Heating
Actual compared to last year	1,795			2,052		(257		)	(12.5	)
Actual compared to 20 year average	1,795			1,808		(13		)	(0.7	)

The Notes to the Consolidated Financial Statements in the company's Annual Report on Form 10-K

for the period ended December 31, 2014 should be read in conjunction with this financial information.

Page 8

Westar Energy, Inc.

Revenue, Sales and Energy Supply

Supplemental Data	Twelve Months Ended December 31,
	2014			2013			Change			% Change
Revenues	(Dollars In Thousands)
Residential	$	793,586		$	728,852		$	64,734		8.9
Commercial	727,964			667,106			60,858			9.1
Industrial	414,997			374,825			40,172			10.7
Other retail	14,076			12,739			1,337			10.5
Provision for rate refunds	(38,256		)	(3,800		)	(34,456		)	(906.7	)
Total Retail Revenues	1,912,367			1,779,722			132,645			7.5
Tariff-based wholesale	270,868			276,638			(5,770		)	(2.1	)
Market-based wholesale	121,862			71,801			50,061			69.7
Transmission	256,838			210,281			46,557			22.1
Other	39,768			32,412			7,356			22.7
Total Revenues	$	2,601,703		$	2,370,854		$	230,849		9.7
Electricity Sales	(Thousands of MWh)
Residential	6,580			6,523			57			0.9
Commercial	7,521			7,480			41			0.5
Industrial	5,601			5,407			194			3.6
Other retail	86			86			—			—
Total Retail	19,788			19,496			292			1.5
Tariff-based wholesale	5,204			5,777			(573		)	(9.9	)
Market-based wholesale	4,340			2,816			1,524			54.1
Total wholesale	9,544			8,593			951			11.1
Total Electricity Sales	29,332			28,089			1,243			4.4
	(Dollars per MWh)
Total retail	$	96.64		$	91.29		$	5.35		5.9
Tariff-based wholesale	$	52.05		$	47.89		$	4.16		8.7
Market-based wholesale	$	28.08		$	25.50		$	2.58		10.1
Fuel and Purchased Power	(Dollars In Thousands)
Fuel used for generation	$	510,892		$	532,277		$	(21,385	)	(4.0	)
Purchased power	190,483			114,783			75,700			66.0
Subtotal	701,375			647,060			54,315			8.4
RECA recovery and other	4,075			(12,263		)	16,338			133.2
Total fuel and purchased power expense	$	705,450		$	634,797		$	70,653		11.1
Electricity Supply	(Thousands of MWh)
Generated - Gas	1,380			1,785			(405		)	(22.7	)
Coal	19,495			20,677			(1,182		)	(5.7	)
Nuclear	4,022			3,369			653			19.4
Wind	426			427			(1		)	(0.2	)
Subtotal electricity generated	25,323			26,258			(935		)	(3.6	)
Purchased	5,112			3,413			1,699			49.8
Total Electricity Supply	30,435			29,671			764			2.6
	(Dollars per MWh)
Average cost of fuel used for generation	$	20.18		$	20.27		$	(0.09	)	(0.4	)
Average cost of purchased power	$	37.26		$	33.63		$	3.63		10.8
Average cost of fuel and purchased power	$	23.05		$	21.81		$	1.24		5.7
Degree Days				2013/
	2014			20 yr Avg			Change			% Change
Cooling
Actual compared to last year	1,689			1,642			47			2.9
Actual compared to 20 year average	1,689			1,622			67			4.1
Heating
Actual compared to last year	4,538			5,158			(620		)	(12.0	)
Actual compared to 20 year average	4,538			4,292			246			5.7

The Notes to the Consolidated Financial Statements in the company's Annual Report on Form 10-K

for the period ended December 31, 2014 should be read in conjunction with this financial information.

Page 9

Westar Energy, Inc.

Capitalization
		December 31, 2014					December 31, 2013
		(Dollars in Thousands)
Current maturities of long-term debt		$	—				$	250,000
Current maturities of long-term debt of VIEs		27,933					27,479
Long-term debt, net		3,215,539					2,968,958
Long-term debt of variable interest entities, net		166,565					194,802
Total debt		3,410,037			50.9	%	3,441,239			51.4	%
Common equity		3,294,856			46.9	%	3,062,774			47.0	%
Noncontrolling interests		6,451			0.1	%	5,757			0.1	%
Total capitalization		$	6,711,344		97.9	%	$	6,509,770		98.5	%
GAAP Book value per share		$	25.02				$	23.88
Period end shares outstanding (in thousands)		131,687					128,254
Outstanding Long-Term Debt
	CUSIP	December 31, 2014					December 31, 2013
Westar Energy:		(Dollars in Thousands)
First Mortgage Bond series:
6.00% Series due July 2014	95709TAA8	$	—				$	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 December 2042	95709TAH3	550,000					550,000
4.10% Series due March 2043	95709TAJ9	430,000					250,000
4.625% Series due August 2043	95709TAK6	250,000					250,000
		2,180,000					2,250,000
Pollution control bond series:
Variable series due April 2032 (St Marys)	792609AF6	45,000					45,000
Variable series due April 2032 (Wamego)	933623BN9	30,500					30,500
		75,500					75,500
Total Westar Energy		2,255,500					2,325,500
KGE
First mortgage bond series:
6.70%Series due June 2019	U24448AB5	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
4.30% Series due July 2044	485260BM4	250,000					—
		875,000					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
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
4.85% Series due June 2031	121825CB7	50,000					50,000
5.0% Series due June 2031	121825CF8	—					50,000
		96,440					273,940
Total KGE		971,440					898,940
Total long-term debt		3,226,940					3,224,440
Unamortized debt discount		(11,401		)			(5,482		)
Long-term debt due within one year		—					(250,000		)
Total long-term debt, net		$	3,215,539				$	2,968,958

The Notes to the Consolidated Financial Statements in the company's Annual Report on Form 10-K

for the period ended December 31, 2014 should be read in conjunction with this financial information.

Page 10

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. In addition, SPP network transmission costs fluctuate due primarily to investments by us and other members of the SPP 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 we charge customers 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 twelve months ended 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 December 31,							Twelve Months Ended December 31,
	2014		2013		Change			2014		2013		Change
	(Dollars in Thousands)
Revenues	$	596,439	$	559,878	$	36,561		$	2,601,703	$	2,370,654	$	231,049
Less: Fuel and purchased power expense	166,077		151,783		14,294			705,450		634,797		70,653
SPP network transmission costs	55,713		44,894		10,819			218,924		178,604		40,320
Gross Margin	$	374,649	$	363,201	$	11,448		$	1,677,329	$	1,557,253	$	120,076
Gross margin	$	374,649	$	363,201	$	11,448		$	1,677,329	$	1,557,253	$	120,076
Less: Operating and maintenance expense	89,347		93,528		(4,181		)	367,188		359,060		8,128
Depreciation and amortization expense	73,172		69,289		3,883			286,442		272,593		13,849
Selling, general and administrative expense	70,807		66,464		4,343			250,439		224,133		26,306
Taxes other than income tax	36,054		30,392		5,662			140,302		122,282		18,020
Income from operations	$	105,269	$	103,528	$	1,741		$	632,958	$	579,185	$	53,773

The Notes to the Consolidated Financial Statements in the company's Annual Report on Form 10-K

for the period ended December 31, 2014 should be read in conjunction with this financial information.

Page 11

2015 Earnings Guidance

2015 EPS guidance range                                    $2.25 - $2.45

2015 Drivers:

• Retail MWh sales up 150 bp

• Normal weather and energy marketing activity

• Modest price adjustments

• ≈$19 million transmission margin

• FERC transmission formula rate and companion TDC, net of increase in SPP expenses

• ≈$17 million environmental cost recovery rider

• ≈1% decrease in combined O&M and SG&A expenses

• ≈2% increase top line operating expense excluding fuel and depreciation

• COLI proceeds ≈$15 million

• Equity AFUDC decrease ≈$15 million

• Depreciation increase ≈$24 million

• Includes ≈$5 million of La Cygne depreciation beginning November

• Effective tax rate 33-35%

• Interest expense unchanged

• Financing:

• No sale of additional equity

• Settle ≈9 million forward shares already priced

• Yearend average annual shares outstanding 138 million

• No additional debt issuance planned

• Plan to refinance $250 million of first mortgage bonds

• File a GRC March 2 with a decision by late October

Forward-looking statements: Certain matters discussed in this document are “forward-looking statements.” The Private Securities Litigation Reform Act of 1995 has established that these statements qualify for safe harbors from liability. Forward-looking statements may include words like “driver,” “assumption,” “believe,” “anticipate,” “target,” “expect,” “pro forma,” “estimate,” “intend,” “guidance” or words of similar meaning. Forward-looking statements describe future plans, objectives, expectations or goals. Although Westar Energy believes that its expectations are based on reasonable assumptions, all forward-looking statements involve risk and uncertainty. The factors that could cause actual results to differ materially from these forward-looking statements include those discussed herein as well as (1) those discussed in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2014 (a) under the heading, “Forward-Looking Statements,” (b) in ITEM 1. Business, (c) in ITEM 1A. Risk Factors, (d) in ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (e) in ITEM 8. Financial Statements and Supplementary Data: Notes 13 and 15; and (2) other factors discussed in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date such statement was made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement was made.

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