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

Exhibit 99.2

Westar Energy, Inc.

Fourth Quarter and Year-end 2017 Earnings

Released February 21, 2018

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
2018 - 2022 Capital Forecast	12

Cody VandeVelde

Director Investor Relations

785-575-8227

cody.vandevelde@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, 2017 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,
	2017			2016			Change			% Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	178,773		$	174,598		$	4,175		2.4
Commercial	172,511			168,819			3,692			2.2
Industrial	99,393			98,575			818			0.8
Other retail	(6,258		)	7,989			(14,247		)	(178.3	)
Total Retail Revenues	444,419			449,981			(5,562		)	(1.2	)
Wholesale	70,418			84,351			(13,933		)	(16.5	)
Transmission	70,348			64,717			5,631			8.7
Other	9,596			7,486			2,110			28.2
Total Revenues	594,781			606,535			(11,754		)	(1.9	)
OPERATING EXPENSES:
Fuel and purchased power	126,086			135,135			(9,049		)	(6.7	)
SPP network transmission costs	62,867			58,838			4,029			6.8
Operating and maintenance	85,711			96,178			(10,467		)	(10.9	)
Depreciation and amortization	94,424			85,681			8,743			10.2
Selling, general and administrative	67,202			68,689			(1,487		)	(2.2	)
Taxes other than income	41,209			46,133			(4,924		)	(10.7	)
Total Operating Expenses	477,499			490,654			(13,155		)	(2.7	)
INCOME FROM OPERATIONS	117,282			115,881			1,401			1.2
OTHER INCOME (EXPENSE):
Investment earnings	2,309			2,097			212			10.1
Other income	2,679			8,369			(5,690		)	(68.0	)
Other expense	(4,600		)	(3,672		)	(928		)	(25.3	)
Total Other Income	388			6,794			(6,406		)	(94.3	)
Interest expense	42,768			40,715			2,053			5.0
INCOME BEFORE INCOME TAXES	74,902			81,960			(7,058		)	(8.6	)
Income tax expense	38,596			24,165			14,431			59.7
NET INCOME	36,306			57,795			(21,489		)	(37.2	)
Less: Net income attributable to noncontrolling interests	2,418			3,863			(1,445		)	(37.4	)
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.	$	33,888		$	53,932		$	(20,044	)	(37.2	)
Earnings per common share, basic	$	0.24		$	0.38		$	(0.14	)	(36.8	)
Diluted earnings per common share	$	0.24		$	0.38		$	(0.14	)	(36.8	)
Weighted average equivalent common shares outstanding – basic (in thousands)	142,479			142,152			327			0.2
Weighted average equivalent common shares outstanding – diluted (in thousands)	142,585			142,659			(74		)	(0.1	)
DIVIDENDS DECLARED PER COMMON SHARE	$	0.40		$	0.38		$	0.02		5.3
Effective income tax rate	52		%	29		%

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

for the period ended December 31, 2017 should be read in conjunction with this financial information.

Page 2

Westar Energy, Inc.

Consolidated Statements of Income

(Unaudited)

	Twelve Months Ended December 31,
	2017			2016			Change			% Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	821,222		$	838,998		$	(17,776	)	(2.1	)
Commercial	729,743			741,066			(11,323		)	(1.5	)
Industrial	423,620			413,298			10,322			2.5
Other retail	(28,551		)	(15,013		)	(13,538		)	(90.2	)
Total Retail Revenues	1,946,034			1,978,349			(32,315		)	(1.6	)
Wholesale	312,942			304,871			8,071			2.6
Transmission	279,446			253,713			25,733			10.1
Other	32,581			25,154			7,427			29.5
Total Revenues	2,571,003			2,562,087			8,916			0.3
OPERATING EXPENSES:
Fuel and purchased power	541,535			509,496			32,039			6.3
SPP network transmission costs	247,882			232,763			15,119			6.5
Operating and maintenance	333,923			346,313			(12,390		)	(3.6	)
Depreciation and amortization	371,747			338,519			33,228			9.8
Selling, general and administrative	249,567			261,451			(11,884		)	(4.5	)
Taxes other than income	167,630			191,662			(24,032		)	(12.5	)
Total Operating Expenses	1,912,284			1,880,204			32,080			1.7
INCOME FROM OPERATIONS	658,719			681,883			(23,164		)	(3.4	)
OTHER INCOME (EXPENSE):
Investment earnings	10,693			9,013			1,680			18.6
Other income	8,351			34,582			(26,231		)	(75.9	)
Other expense	(19,055		)	(18,012		)	(1,043		)	(5.8	)
Total Other Income	(11		)	25,583			(25,594		)	(100.0	)
Interest expense	171,001			161,726			9,275			5.7
INCOME BEFORE INCOME TAXES	487,707			545,740			(58,033		)	(10.6	)
Income tax expense	151,155			184,540			(33,385		)	(18.1	)
NET INCOME	336,552			361,200			(24,648		)	(6.8	)
Less: Net income attributable to noncontrolling interests	12,632			14,623			(1,991		)	(13.6	)
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.	$	323,920		$	346,577		$	(22,657	)	(6.5	)
Earnings per common share, basic	$	2.27		$	2.43		$	(0.16	)	(6.6	)
Diluted earnings per common share	$	2.27		$	2.43		$	(0.16	)	(6.6	)
Weighted average equivalent common shares outstanding – basic (in thousands)	142,464			142,068			396			0.3
Weighted average equivalent common shares outstanding – diluted (in thousands)	142,560			142,475			$	85		0.1
DIVIDENDS DECLARED PER COMMON SHARE	$	1.60		$	1.52		$	0.08		5.3
Effective income tax rate	31		%	34		%

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

for the period ended December 31, 2017 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, 2017			December 31, 2016
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	3,432		$	3,066
Accounts receivable, net of allowance for doubtful accounts of $6,716 and $6,667, respectively	290,652			288,579
Fuel inventory and supplies	293,562			300,125
Taxes receivable	—			13,000
Prepaid expenses	16,425			16,528
Regulatory assets	99,544			117,383
Other	23,435			29,701
Total Current Assets	727,050			768,382
PROPERTY, PLANT AND EQUIPMENT, NET	9,553,755			9,248,359
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET	176,279			257,904
OTHER ASSETS:
Regulatory assets	685,355			762,479
Nuclear decommissioning trust	237,102			200,122
Other	244,827			249,828
Total Other Assets	1,167,284			1,212,429
TOTAL ASSETS	$	11,624,368		$	11,487,074
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt	$	—		$	125,000
Current maturities of long-term debt of variable interest entities	28,534			26,842
Short-term debt	275,700			366,700
Accounts payable	204,186			220,522
Accrued dividends	53,830			52,885
Accrued taxes	87,727			85,729
Accrued interest	72,693			72,519
Regulatory liabilities	11,602			15,760
Other	89,445			81,236
Total Current Liabilities	823,717			1,047,193
LONG-TERM LIABILITIES:
Long-term debt, net	3,687,555			3,388,670
Long-term debt of variable interest entities, net	81,433			111,209
Deferred income taxes	815,743			1,752,776
Unamortized investment tax credits	257,093			210,654
Regulatory liabilities	1,093,974			223,693
Accrued employee benefits	541,364			512,412
Asset retirement obligations	379,989			323,951
Other	83,063			83,326
Total Long-Term Liabilities	6,940,214			6,606,691
COMMITMENTS AND CONTINGENCIES (See Notes 14 and 16)
EQUITY:
Westar Energy, Inc. Shareholders’ Equity:
Common stock, par value $5 per share; authorized 275,000,000 shares; issued and outstanding 142,094,275 shares and 141,791,153 shares, respective to each date	710,471			708,956
Paid-in capital	2,024,396			2,018,317
Retained earnings	1,173,255			1,078,602
Total Westar Energy, Inc. Shareholders’ Equity	3,908,122			3,805,875
Noncontrolling Interests	(47,685		)	27,315
Total Equity	3,860,437			3,833,190
TOTAL LIABILITIES AND EQUITY	$	11,624,368		$	11,487,074

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

for the period ended December 31, 2017 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,
	2017			2016
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income	$	336,552		$	361,200
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	371,747			338,519
Amortization of nuclear fuel	32,167			26,714
Amortization of deferred regulatory gain from sale leaseback	(5,495		)	(5,495		)
Gain on lease modification	(3,500		)	—
Amortization of corporate-owned life insurance	20,601			18,042
Non-cash compensation	8,985			9,353
Net deferred income taxes and credits	149,568			185,229
Allowance for equity funds used during construction	(1,996		)	(11,630		)
Payments for asset retirement obligations	(16,026		)	(5,372		)
Changes in working capital items:
Accounts receivable	(2,073		)	(30,294		)
Fuel inventory and supplies	7,182			1,790
Prepaid expenses and other	64,744			(7,431		)
Accounts payable	10,023			(8,149		)
Accrued taxes	9,155			(5,942		)
Other current liabilities	(118,018		)	(86,359		)
Changes in other assets	29,295			18,872
Changes in other liabilities	19,527			23,373
Cash Flows from Operating Activities	912,438			822,420
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(764,645		)	(1,086,970		)
Purchase of securities - trust	(41,033		)	(46,581		)
Sale of securities - trust	41,245			47,026
Investment in corporate-owned life insurance	(13,875		)	(14,648		)
Proceeds from investment in corporate-owned life insurance	1,420			92,677
Investment in affiliated company	—			(655		)
Other investing activities	(3,546		)	(3,609		)
Cash Flows used in Investing Activities	(780,434		)	(1,012,760		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	(91,328		)	116,162
Proceeds from long-term debt	296,215			396,290
Proceeds from long-term debt of variable interest entities	—			162,048
Retirements of long-term debt	(125,000		)	(50,000		)
Retirements of long-term debt of variable interest entities	(26,840		)	(190,357		)
Repayment of capital leases	(3,530		)	(3,104		)
Borrowings against cash surrender value of corporate-owned life insurance	55,094			57,850
Repayment of borrowings against cash surrender value of corporate-owned life insurance	(1,008		)	(89,284		)
Issuance of common stock	659			2,439
Distributions to shareholders of noncontrolling interests	(5,760		)	(2,550		)
Cash dividends paid	(223,117		)	(204,340		)
Other financing activities	(7,023		)	(4,979		)
Cash Flows (used in) from Financing Activities	(131,638		)	190,175
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	366			(165		)
CASH AND CASH EQUIVALENTS:
Beginning of period	3,066			3,231
End of period	$	3,432		$	3,066

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

for the period ended December 31, 2017 should be read in conjunction with this financial information.

Page 5

Westar Energy, Inc.

4th Quarter 2017 vs. 2016

Earnings Variances
			Change
		($ per share)	(Dollars in Thousands)				($ per share)
2016 earnings attributable to common stock			$	53,932			$	0.38
		Favorable/(Unfavorable)
	Gross Margin		(6,734		)	A
	Operating and maintenance		10,467			B
	Depreciation and amortization		(8,743		)	C
	Selling, general and administrative		1,487
	Taxes other than income taxes		4,924			D
	Other income (expense)		(6,406		)	E
	Interest expense		(2,053		)
	Income tax expense		(14,431		)	F
	Net income attributable to noncontrolling interests		1,445
	Change in shares outstanding	—
2017 earnings attributable to common stock			$	33,888			$	0.24
	Major factors influencing the period to period change in EPS -- Favorable/(Unfavorable)
A	Due primarily to decreased property tax surcharge revenue, which is offset by lower property tax amortization expense
B	Due primarily to: lower operating and maintenance costs at our coal fired plants primarily due to planned JEC outage in 2016 -- $6.5M; lower transmission and distribution operating and maintenance costs due in part to higher grid resiliency costs in 2016 and assisting other utilities with mutual aid -- $6.1M; partially offset by higher operating expense due to start of Western Plains Wind Farm -- ($2.6M)
C	Due principally to property additions from completion of Western Plains Wind Farm in March 2017
D	Due primarily to decreased property tax amortization expense that is largely offset by decreased prices --$5.3M
E	Due primarily to: lower COLI benefit -- ($2.8M); a decrease in equity AFUDC -- ($2.8M)
F	Due primarily to write-off of excess non-regulated deferred income tax assets due to the TCJA -- ($12.2M)

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

for the period ended December 31, 2017 should be read in conjunction with this financial information.

Page 6

Westar Energy, Inc.

YTD December 2017 vs. 2016

Earnings Variances
			Change
		($ per share)	(Dollars in Thousands)				($ per share)
2016 earnings attributable to common stock			$	346,577			$	2.43
		Favorable/(Unfavorable)
	Gross Margin		(38,242		)	A
	Operating and maintenance		12,390			B
	Depreciation and amortization		(33,228		)	C
	Selling, general and administrative		11,884			D
	Taxes other than income		24,032			E
	Other income (expense)		(25,594		)	F
	Interest expense		(9,275		)	G
	Income tax expense		33,385			H
	Net income attributable to noncontrolling interests		1,991
	Change in shares outstanding	—
2017 earnings attributable to common stock			$	323,920			$	2.27
	Major factors influencing the period to period change in EPS -- Favorable/(Unfavorable)
A	Due primarily to lower residential and commercial sales primarily attributable to mild weather; partially offset by increased industrial sales, lower property tax surcharge revenue, which is offset by lower property tax amortization expense, and lower tariff-based wholesale revenue
B	Due primarily to: lower transmission and distribution operating and maintenance costs due in part to higher grid resiliency costs in 2016 and assisting other utilities with mutual aid -- $8.6M; a decrease in nuclear operating and maintenance costs primarily due to offset from receipt of legal settlement proceeds at Wolf Creek -- $5.8M; lower operating and maintenance costs at our coal fired plants primarily due to planned JEC outage in 2016 -- $4.9M; partially offset by higher operating expense due to start of Western Plains Wind Farm -- ($8.8M)
C	Due principally to property additions from completion of Western Plains Wind Farm in March 2017
D	Due primarily to recording less variable employee compensation -- $7.1M
E	Due primarily to decreased property tax amortization expense that is largely offset by decreased prices -- $24.2M
F	Due primarily to: lower COLI benefit -- ($19.5M); a decrease in equity AFUDC -- ($9.6M); partially offset by deconsolidation of the trust holding our 8% interest in JEC -- $3.5
G	Due primarily to: an increase in interest expense of long-term debt primarily from the issuances of FMBs in excess of retirements -- ($4.9M); decrease in debt AFUDC -- ($4.4M)
H	Due primarily to; an increase in production tax credits largely from Western Plains Wind Farm - $24.0M; reduction in income tax expense from lower income before income tax -- $22.9M; partially offset by write-off of excess unregulated deferred income tax assets due to the TCJA -- ($12.2M)

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

for the period ended December 31, 2017 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,
	2017			2016			Change			% Change
Revenues	(Dollars In Thousands)
Residential	$	178,773		$	174,598		$	4,175		2.4
Commercial	172,511			168,819			3,692			2.2
Industrial	99,393			98,575			818			0.8
Other retail	4,035			3,923			112			2.9
Provision for rate refunds	(10,293		)	4,066			(14,359		)	(353.1	)
Total Retail Revenues	444,419			449,981			(5,562		)	(1.2	)
Tariff-based wholesale	54,680			63,141			(8,461		)	(13.4	)
Market-based wholesale	15,738			21,210			(5,472		)	(25.8	)
Transmission	70,348			64,717			5,631			8.7
Other	9,596			7,486			2,110			28.2
Total Revenues	$	594,781		$	606,535		$	(11,754	)	(1.9	)
Electricity Sales	(Thousands of MWh)
Residential	1,336			1,337			(1		)	(0.1	)
Commercial	1,780			1,780			—			—
Industrial	1,370			1,361			9			0.7
Other retail	16			19			(3		)	(15.8	)
Total Retail	4,502			4,497			5			0.1
Tariff-based wholesale	952			1,100			(148		)	(13.5	)
Market-based wholesale	1,781			1,239			542			43.7
Total wholesale	2,733			2,339			394			16.8
Total Electricity Sales	7,235			6,836			399			5.8
	(Dollars per MWh)
Total retail	$	98.72		$	100.06		$	(1.34	)	(1.3	)
Tariff-based wholesale	$	57.44		$	57.40		$	0.04		0.1
Market-based wholesale	$	8.84		$	17.12		$	(8.28	)	(48.4	)
Fuel and Purchased Power	(Dollars In Thousands)
Fuel used for generation	$	95,989		$	98,206		$	(2,217	)	(2.3	)
Purchased power	40,093			47,430			(7,337		)	(15.5	)
Subtotal	136,082			145,636			(9,554		)	(6.6	)
RECA recovery and other	(9,996		)	(10,501		)	505			4.8
Total fuel and purchased power expense	$	126,086		$	135,135		$	(9,049	)	(6.7	)
Electricity Supply	(Thousands of MWh)
Generated - Gas	385			397			(12		)	(3.0	)
Coal	3,472			3,988			(516		)	(12.9	)
Nuclear	1,270			542			728			134.3
Wind	422			115			307			267.0
Subtotal electricity generated	5,549			5,042			507			10.1
Purchased	1,878			1,923			(45		)	(2.3	)
Total Electricity Supply	7,427			6,965			462			6.6
	(Dollars per MWh)
Average cost of fuel used for generation	$	17.30		$	19.48		$	(2.18	)	(11.2	)
Average cost of purchased power	$	21.35		$	24.66		$	(3.31	)	(13.4	)
Average cost of fuel and purchased power	$	18.32		$	20.91		$	(2.59	)	(12.4	)
Degree Days				2016/
	2017			20 yr Avg			Change			% Change
Cooling
Actual compared to last year	69			97			(28		)	(28.9	)
Actual compared to 20 year average	69			39			30			76.9
Heating
Actual compared to last year	1,654			1,498			156			10.4
Actual compared to 20 year average	1,654			1,808			(154		)	(8.5	)

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

for the period ended December 31, 2017 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,
	2017			2016			Change			% Change
Revenues	(Dollars In Thousands)
Residential	$	821,222		$	838,998		$	(17,776	)	(2.1	)
Commercial	729,743			741,066			(11,323		)	(1.5	)
Industrial	423,620			413,298			10,322			2.5
Other retail	16,673			15,683			990			6.3
Provision for rate refunds	(45,224		)	(30,696		)	(14,528		)	(47.3	)
Total Retail Revenues	1,946,034			1,978,349			(32,315		)	(1.6	)
Tariff-based wholesale	232,834			249,344			(16,510		)	(6.6	)
Market-based wholesale	80,108			55,527			24,581			44.3
Transmission	279,446			253,713			25,733			10.1
Other	32,581			25,154			7,427			29.5
Total Revenues	$	2,571,003		$	2,562,087		$	8,916		0.3
Electricity Sales	(Thousands of MWh)
Residential	6,163			6,434			(271		)	(4.2	)
Commercial	7,368			7,544			(176		)	(2.3	)
Industrial	5,689			5,499			190			3.5
Other retail	73			77			(4		)	(5.2	)
Total Retail	19,293			19,554			(261		)	(1.3	)
Tariff-based wholesale	4,038			4,391			(353		)	(8.0	)
Market-based wholesale	6,308			3,908			2,400			61.4
Total wholesale	10,346			8,299			2,047			24.7
Total Electricity Sales	29,639			27,853			1,786			6.4
	(Dollars per MWh)
Total retail	$	100.87		$	101.17		$	(0.30	)	(0.3	)
Tariff-based wholesale	$	57.66		$	56.79		$	0.87		1.5
Market-based wholesale	$	12.70		$	14.21		$	(1.51	)	(10.6	)
Fuel and Purchased Power	(Dollars In Thousands)
Fuel used for generation	$	397,066		$	403,214		$	(6,148	)	(1.5	)
Purchased power	175,877			164,007			11,870			7.2
Subtotal	572,943			567,221			5,722			1.0
RECA recovery and other	(31,408		)	(57,725		)	26,317			45.6
Total fuel and purchased power expense	$	541,535		$	509,496		$	32,039		6.3
Electricity Supply	(Thousands of MWh)
Generated - Gas	1,712			1,724			(12		)	(0.7	)
Coal	14,855			15,903			(1,048		)	(6.6	)
Nuclear	5,005			3,876			1,129			29.1
Wind	1,412			422			990			234.6
Subtotal electricity generated	22,984			21,925			1,059			4.8
Purchased	7,643			6,607			1,036			15.7
Total Electricity Supply	30,627			28,532			2,095			7.3
	(Dollars per MWh)
Average cost of fuel used for generation	$	17.28		$	18.39		$	(1.11	)	(6.0	)
Average cost of purchased power	$	23.01		$	24.82		$	(1.81	)	(7.3	)
Average cost of fuel and purchased power	$	18.71		$	19.88		$	(1.17	)	(5.9	)
Degree Days				2016/
	2017			20 yr Avg			Change			% Change
Cooling
Actual compared to last year	1,730			1,978			(248		)	(12.5	)
Actual compared to 20 year average	1,730			1,621			109			6.7
Heating
Actual compared to last year	3,871			3,880			(9		)	(0.2	)
Actual compared to 20 year average	3,871			4,668			(797		)	(17.1	)

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

for the period ended December 31, 2017 should be read in conjunction with this financial information.

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Westar Energy, Inc.

Capitalization
		December 31, 2017					December 31, 2016
		(Dollars in Thousands)
Current maturities of long-term debt		$	—				$	125,000
Current maturities of long-term debt of VIEs		28,534					26,842
Long-term debt, net		3,687,555					3,388,670
Long-term debt of variable interest entities, net		81,433					111,209
Total debt		3,797,522			49.6	%	3,651,721			48.8	%
Common equity		3,908,122			51.0	%	3,805,875			50.8	%
Noncontrolling interests		(47,685		)	(0.6	)%	27,315			0.4	%
Total capitalization		$	7,657,959		100.0	%	$	7,484,911		100.0	%
GAAP Book value per share		$	27.50				$	26.84
Period end shares outstanding (in thousands)		142,094					141,791
Outstanding Long-Term Debt
	CUSIP	December 31, 2017					December 31, 2016
Westar Energy:		(Dollars in Thousands)
First Mortgage Bond series:
5.15% Series due January 2017	95709TAB6	$	—				$	125,000
5.10% Series due July 2020	95709TAD2	250,000					250,000
3.250% Series due December 2025	95709TAL4	250,000					250,000
2.550% Series due June 2026	95709TAN0	350,000					350,000
3.10% Series due April 2027	95709TAP5	300,000					—
4.125% Series due December 2042	95709TAH3	550,000					550,000
4.10% Series due March 2043	95709TAJ9	430,000					430,000
4.625% Series due August 2043	95709TAK6	250,000					250,000
4.250% Series due December 2045	95709TAM2	300,000					300,000
		2,680,000					2,505,000
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		2,755,500					2,580,500
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					250,000
		875,000					875,000
Pollution control bond series:
Variable rate series due April 2027 (LaCygne)	502828AJ5	21,940					21,940
2.50% Series due June 2031		50,000					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					96,440
Total KGE		971,440					971,440
Total long-term debt		3,726,940					3,551,940
Unamortized debt discount		(10,925		)			(10,358		)
Unamortized debt issuance expense		(28,460		)			(27,912		)
Long-term debt due within one year		—					(125,000		)
Total long-term debt, net		$	3,687,555				$	3,388,670

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

for the period ended December 31, 2017 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. 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, a non-GAAP measure, 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 December 31, 2017 and 2016, are shown in the table below. The table also includes a reconciliation of income from operations to gross margin 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,
	2017		2016		Change			2017		2016		Change
	(Dollars in Thousands)
Revenues	$	594,781	$	606,535	$	(11,754	)	$	2,571,003	$	2,562,087	$	8,916
Less: Fuel and purchased power expense	126,086		135,135		(9,049		)	541,535		509,496		32,039
SPP network transmission costs	62,867		58,838		4,029			247,882		232,763		15,119
Gross Margin	$	405,828	$	412,562	$	(6,734	)	$	1,781,586	$	1,819,828	$	(38,242	)
Income from operations	$	117,282	$	115,881	$	1,401		$	658,719	$	681,883	$	(23,164	)
Plus: Operating and maintenance expense	85,711		96,178		(10,467		)	333,923		346,313		(12,390		)
Depreciation and amortization expense	94,424		85,681		8,743			371,747		338,519		33,228
Selling, general and administrative expense	67,202		68,689		(1,487		)	249,567		261,451		(11,884		)
Taxes other than income tax	41,209		46,133		(4,924		)	167,630		191,662		(24,032		)
Gross Margin	$	405,828	$	412,562	$	(6,734	)	$	1,781,586	$	1,819,828	$	(38,242	)

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

for the period ended December 31, 2017 should be read in conjunction with this financial information.

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