Evergy Kansas Central 8-K Westar Energy Announces 2010 Results

Exhibit 99.2

Westar Energy, Inc

2010 Fourth Quarter and Year-end Earnings

Released February 24, 2011

Contents
	Page
Consolidated statements of income		1
Consolidated balance sheets		3
Consolidated statements of cash flows		4
Earnings variances		5
Supplemental data		7
Capitalization & Long-term Debt Table		9
GAAP to Non-GAAP reconciliation		10
Capital expenditures 2011-2013		11

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 Annual Report on Form 10-K for the period ended December 31, 2010 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,
	2010			2009			Change			% Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	130,957		$	128,927		$	2,030			1.6
Commercial		128,170			119,817			8,353			7.0
Industrial		75,637			68,332			7,305			10.7
Other retail		(2,240	)		(196	)		(2,044	)		(a	)
Total Retail Revenues		332,524			316,880			15,644			4.9
Wholesale		78,804			86,490			(7,686	)		(8.9	)
Transmission		36,016			31,548			4,468			14.2
Other		9,379			5,200			4,179			80.4
Total Revenues		456,723			440,118			16,605			3.8
OPERATING EXPENSES:
Fuel and purchased power		124,568			132,242			(7,674	)		(5.8	)
Operating and maintenance		150,825			124,658			26,167			21.0
Depreciation and amortization		69,982			64,990			4,992			7.7
Selling, general and administrative		63,108			56,421			6,687			11.9
Total Operating Expenses		408,483			378,311			30,172			8.0
INCOME FROM OPERATIONS		48,240			61,807			(13,567	)		(22.0	)
OTHER INCOME (EXPENSE):
Investment income		2,676			4,143			(1,467	)		(35.4	)
Other income		1,577			1,501			76			5.1
Other expense		(4,611	)		(5,747	)		1,136			19.8
Total Other Expense		(358	)		(103	)		(255	)		(247.6	)
Interest expense		43,080			40,591			2,489			6.1
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		4,802			21,113			(16,311	)		(77.3	)
Income tax (benefit) expense		(1,748	)		10,496			(12,244	)		(116.7	)
INCOME FROM CONTINUING OPERATIONS		6,550			10,617			(4,067	)		(38.3	)
Results of discontinued operations, net of tax		—			767			(767	)		(100.0	)
NET INCOME		6,550			11,384			(4,834	)		(42.5	)
Less: Net income attributable to nonontrolling interests		1,389			—			1,389			(a	)
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY		5,161			11,384			(6,223	)		(54.7	)
Preferred dividends		242			242			—			—
NET INCOME ATTRIBUTABLE TO COMMON STOCK	$	4,919		$	11,142		$	(6,223	)		(55.9	)
BASIC EARNINGS PER COMMON SHARE:
Earnings available from continuing operations	$	0.04		$	0.09		$	(0.05	)		(55.6	)
Discontinued operations, net of tax		—			0.01			(0.01	)		(100.0	)
Earnings per common share	$	0.04		$	0.10		$	(0.06	)		(60.0	)
Average equivalent common shares outstanding (in thousands)		112,348			109,960			2,388			2.2
DIVIDENDS DECLARED PER COMMON SHARE	$	0.31		$	0.30		$	0.01			3.3

(a) Change greater than 1000%

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

for the period ended December 31, 2010 should be read in conjunction with this financial information.

Westar Energy, Inc.

Consolidated Statements of Income

(Unaudited)

	Twelve Months Ended December 31,
	2010			2009			Change			% Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	661,177		$	576,896		$	84,281			14.6
Commercial		572,062			529,847			42,215			8.0
Industrial		318,249			291,754			26,495			9.1
Other retail		(12,703	)		(18,516	)		5,813			31.4
Total Retail Revenues		1,538,785			1,379,981			158,804			11.5
Wholesale		334,669			308,269			26,400			8.6
Transmission		144,513			132,450			12,063			9.1
Other		38,204			37,531			673			1.8
Total Revenues		2,056,171			1,858,231			197,940			10.7
OPERATING EXPENSES:
Fuel and purchased power		583,361			534,864			48,497			9.1
Operating and maintenance		520,409			516,930			3,479			0.7
Depreciation and amortization		271,937			251,534			20,403			8.1
Selling, general and administrative		207,607			199,961			7,646			3.8
Total Operating Expenses		1,583,314			1,503,289			80,025			5.3
INCOME FROM OPERATIONS		472,857			354,942			117,915			33.2
OTHER INCOME (EXPENSE):
Investment income		7,026			12,658			(5,632	)		(44.5	)
Other income		5,369			7,128			(1,759	)		(24.7	)
Other expense		(16,655	)		(17,188	)		533			3.1
Total Other (Expense) Income		(4,260	)		2,598			(6,858	)		(264.0	)
Interest expense		174,941			157,360			17,581			11.2
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		293,656			200,180			93,476			46.7
Income tax expense		85,032			58,850			26,182			44.5
INCOME FROM CONTINUING OPERATIONS		208,624			141,330			67,294			47.6
Results of discontinued operations, net of tax		—			33,745			(33,745	)		(100.0	)
NET INCOME		208,624			175,075			33,549			19.2
Less: Net income attributable to nonontrolling interests		4,728			—			4,728			(a	)
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY		203,896			175,075			28,821			16.5
Preferred dividends		970			970			—			—
NET INCOME ATTRIBUTABLE TO COMMON STOCK	$	202,926		$	174,105		$	28,821			16.6
BASIC EARNINGS PER COMMON SHARE:
Earnings available from continuing operations	$	1.81		$	1.28		$	0.53			41.4
Discontinued operations, net of tax		—			0.30			(0.30	)		(100.0	)
Earnings per common share	$	1.81		$	1.58		$	0.23			14.6
Average equivalent common shares outstanding (in thousands)		111,629			109,648			1,981			1.8
DIVIDENDS DECLARED PER COMMON SHARE	$	1.24		$	1.20		$	0.04			3.3

(a) Change greater than 1000%

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

for the period ended December 31, 2010 should be read in conjunction with this financial information.

Westar Energy, Inc.

Consolidated Balance Sheets

(Dollars in Thousands, except par values)

(Unaudited)

	December 31, 2010		December 31, 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	928	$	3,860
Accounts receivable, net		227,700		216,186
Inventories and supplies, net		206,867		193,831
Energy marketing contracts		13,005		33,159
Taxes receivable		16,679		45,200
Deferred tax assets		30,248		7,927
Prepaid expenses		12,413		11,830
Regulatory assets		73,480		97,220
Other		20,289		20,269
Total Current Assets		601,609		629,482
PROPERTY, PLANT AND EQUIPMENT, NET		5,964,439		5,771,740
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		345,037		—
OTHER ASSETS:
Regulatory assets		787,585		758,538
Nuclear decommissioning trust		126,990		112,268
Energy marketing contracts		9,472		10,653
Other		244,506		242,802
Total Other Assets		1,168,553		1,124,261
TOTAL ASSETS	$	8,079,638	$	7,525,483
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt	$	61	$	1,345
Current maturities of long-term debt of variable interest entities		30,155		—
Short-term debt		226,700		242,760
Accounts payable		187,954		112,211
Accrued taxes		45,534		46,931
Energy marketing contracts		9,670		39,161
Accrued interest		77,771		76,955
Regulatory liabilities		28,284		39,745
Other		176,717		123,370
Total Current Liabilities		782,846		682,478
LONG-TERM LIABILITIES:
Long-term debt, net		2,490,871		2,490,734
Long-term debt of variable interest entities, net		278,162		—
Obligation under capital leases		7,514		109,300
Deferred income taxes		1,102,625		964,461
Unamortized investment tax credits		101,345		127,777
Regulatory liabilities		135,754		100,963
Deferred regulatory gain from sale-leaseback		97,541		108,532
Accrued employee benefits		483,769		433,561
Asset retirement obligations		125,999		119,519
Energy marketing contracts		10		210
Other		59,364		117,720
Total Long-Term Liabilities		4,882,954		4,572,777
COMMITMENTS AND CONTINGENCIES (See Notes 13 & 15 in Form 10-K)
TEMPORARY EQUITY		3,465		3,443
EQUITY:
Westar Energy Shareholders’ Equity:
Cumulative preferred stock, par value $100 per share; authorized 600,000 shares; issued and outstanding 214,363 shares		21,436		21,436
Common stock, par value $5 per share; authorized 150,000,000 shares; issued and outstanding 112,128,068 and 109,072,000 shares, respectively		560,640		545,360
Paid-in capital		1,398,580		1,339,790
Retained earnings		423,647		360,199
Total Westar Energy Shareholders’ Equity		2,404,303		2,266,785
Noncontrolling Interests		6,070		—
Total Equity		2,410,373		2,266,785
TOTAL LIABILITIES AND EQUITY	$	8,079,638	$	7,525,483

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

for the period ended December 31, 2010 should be read in conjunction with this financial information.

Westar Energy, Inc.

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	Twelve Months Ended December 31,
	2010			2009
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income	$	208,624		$	175,075
Discontinued operations, net of tax		—			(33,745	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		271,937			251,534
Amortization of nuclear fuel		25,089			16,161
Amortization of deferred regulatory gain from sale-leaseback		(5,495	)		(5,495	)
Amortization of corporate-owned life insurance		20,650			22,116
Non-cash compensation		11,373			5,133
Net changes in energy marketing assets and liabilities		(1,284	)		8,972
Accrued liability to certain former officers		2,675			2,296
Net deferred income taxes and credits		120,169			46,447
Stock based compensation excess tax benefits		(641	)		(448	)
Allowance for equity funds used during construction		(3,104	)		(5,031	)
Changes in working capital items, net of acquisitions and dispositions:
Accounts receivable		(11,434	)		(17,159	)
Inventories and supplies		(12,266	)		10,466
Prepaid expenses and other		8,475			(10,635	)
Accounts payable		30,330			(15,115	)
Accrued taxes		27,565			30,493
Other current liabilities		(80,660	)		13,572
Changes in other assets		(42,544	)		73,784
Changes in other liabilities		38,243			(89,516	)
Cash flows from operating activities		607,702			478,905
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment		(540,076	)		(555,637	)
Investment in corporate-owned life insurance		(19,162	)		(17,724	)
Purchase of securities within trust funds		(192,350	)		(64,016	)
Sale of securities within trust funds		191,603			61,096
Proceeds from investment in corporate-owned life insurance		2,204			1,748
Proceeds from federal grants		3,180			—
Investment in affiliated company		(280	)		(818	)
Other investing activities		(1,164	)		2,920
Cash flows used in investing activities		(556,045	)		(572,431	)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net		(16,060	)		67,860
Proceeds from long-term debt		—			347,507
Retirements of long-term debt		(1,695	)		(196,821	)
Retirements of long-term debt of variable interest entities		(28,610	)		—
Repayment of capital leases		(2,981	)		(10,190	)
Borrowings against cash surrender value of corporate-owned life insurance		74,134			10,299
Repayment of borrowings against cash surrender value of corporate-owned life insurance		(3,430	)		(3,531	)
Stock based compensation excess tax benefits		641			448
Issuance of common stock, net		54,651			4,587
Distributions to shareholders of noncontrolling interests		(2,093	)		—
Cash dividends paid		(129,146	)		(122,937	)
Cash flows (used in) from financing activities		(54,589	)		97,222
CASH FLOWS USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS:
Payment of settlement to former subsidiary		—			(22,750	)
Cash flow used in investing activities of discontinued operations		—			(22,750	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(2,932	)		(19,054	)
CASH AND CASH EQUIVALENTS:
Beginning of period		3,860			22,914
End of period	$	928		$	3,860

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

for the period ended December 31, 2010 should be read in conjunction with this financial information.

Westar Energy, Inc.

4th Quarter 2010 vs. 2009

Earnings Variances

			Change
	($ per share)		(Dollars in thousands)
2009 earnings attributable to common stock	$	0.10	$	11,142
			Favorable / (Unfavorable)
Retail				15,644		A
Wholesale				(7,686	)	B
Transmission				4,468
Other revenues				4,179
Fuel and purchased power				7,674		C
SPP network transmission costs				(3,614	)
Gross Margin				20,665		D
Operating and maintenance w/o SPP NITS				(22,553	)	E	VIE
Depreciation and amortization				(4,992	)	F	VIE
Selling, general and administrative				(6,687	)	G
Other (expense) income				(255	)
Interest expense				(2,489	)	H	VIE
Income tax expense				12,244			VIE
Discontinued operations, net of tax				(767	)
Net income attributable to noncontrolling interests				(1,389	)		VIE
Change in shares outstanding		0.00
2010 earnings attributable to common stock	$	0.04	$	4,919

	Major factors influencing the period to period change in EPS — Favorable/(Unfavorable)
A	Due principally to price increases; MWh sales increased 0.6 percent (see page 7 for changes is sales by class)
B	Due primarily to decreased demand; MWh sales decreased 14 percent and average market prices increased 6 percent
C	Lower level of electricity generated and lower average unit cost of fuel and purchased power
D	Due primarily to increased retail revenues driven by increases in prices
E	Increase in maintenance and repair outages at power plants - ($9.1M); increased maintenance of electrical distribution system, primarily tree trimming - ($4.9M); increased ad valorem tax expense, which is largely offset in revenues via a property tax surcharge - ($4.7M); all of which were partially offset with reduction in lease expense as a result of consolidation of variable interest entities (VIEs) - $5.1M
F	Higher plant balances; and consolidation of VIEs - ($1.5M)
G	Increase due primarily to: higher non-executive short term incentive compensation related to performance against operational and financial targets - ($4.6M); increased expense due to adjustment to long-term incentive and share award plan - ($1.9M); increase in employee benefit costs - (2.4M); partially offset by 2009 expense related to settlement of EPA litigation - $4M
H	Primarily additional interest expense as a result of consolidation of VIEs - ($2.8M)
I	Lower taxable income; utilization of capital loss and effect of non-deductible EPA settlement expense

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

for the period ended December 31, 2010 should be read in conjunction with this financial information.

Westar Energy, Inc.

YTD December 2010 vs. 2009

Earnings Variances

				Change
	($ per share)			(Dollars in thousands)
2009 earnings attributable to common stock	$	1.58		$	174,105
				Favorable / (Unfavorable)
Retail					158,804		A
Wholesale					26,400		B
Transmission					12,063
Other revenues					673
Fuel and purchased power					(48,497	)	C
SPP network transmission costs					(11,048	)
Gross Margin					138,395
Operating and maintenance w/o SPP NITS					7,569		D	VIE
Depreciation and amortization					(20,403	)	E	VIE
Selling, general and administrative					(7,646	)	F
Other (expense) income					(6,858	)	G
Interest expense					(17,581	)	H	VIE
Income tax expense					(26,182	)	I	VIE
Discontinued operations, net of tax					(33,745	)	J
Net income attributable to noncontrolling interests					(4,728	)		VIE
Change in shares outstanding		(0.03	)
2010 earnings attributable to common stock	$	1.81		$	202,926

	Major factors influencing the period to period change in EPS — Favorable/(Unfavorable)
A	Reflects 6 percent increase in retail MWh sales, which benefited from favorable weather and economic improvement in industrial sales; reflects higher prices (see page 8 for changes in sales by class)
B	Higher average market prices; MWh sales decreased 1 percent
C	Increased electricity generated and purchased and a higher average unit cost for fuel and purchased power
D	Due primarily to: higher power plant maintenance primarily at Wolf Creek and wind generation facilities - - ($7.6M); higher maintenance of electrical distribution system, primarily tree trimming and line clearance - ($5.6M); decrease of lease expense as a result of consolidation of variable interest entities (VIEs) - $20.4M; and recognition of reduction to maximum liability for environmental remediation cost associated with assets divested many years ago - $5.0M
E	Higher plant balances due to addition of wind generation facilities, new generating plant, air quality controls at power plants in addition to other plant additions; consolidation of VIEs - ($6.1M)
F	Higher non-executive short term incentive compensation related to performance against operational and financial targets and adjustment to long-term incentive plan - ($12.9M); partially offset with 2009 expense related to settlement of EPA litigation - $4M
G	Due principally to recording lower gains on investments held in a trust to fund retirement benefits - ($3.6M); decrease in equity AFUDC - ($1.9M)
H	Increased interest expense as a result of consolidation of VIEs - ($12.2M) and increased interest expense on additional debt issued in 2009
I	Due principally to increased pretax income and increase in production tax credits and VIE accounting
J	Reflects tax settlement for past years related to sale of non-regulated investments

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

for the period ended December 31, 2010 should be read in conjunction with this financial information.

	Westar Energy, Inc
Supplemental Data	Revenue, Sales and Energy Supply

	Three Months Ended December 31,
	2010			2009			Change			% Change
	(Dollars In Thousands)
Revenues
Residential	$	130,957		$	128,927		$	2,030			1.6
Commercial		128,170			119,817			8,353			7.0
Industrial		75,637			68,332			7,305			10.7
Other retail		2,985			2,907			78			2.7
Provision for rate refunds		(5,225	)		(3,103	)		(2,122	)		(68.4	)
Total Retail Revenues		332,524			316,880			15,644			4.9
Tariff-based wholesale		62,260			63,845			(1,585	)		(2.5	)
Market-based wholesale		16,544			22,645			(6,101	)		(26.9	)
Transmission		36,016			31,548			4,468			14.2
Other		9,379			5,200			4,179			80.4
Total Revenues	$	456,723		$	440,118		$	16,605			3.8
	(Thousands of MWh)
Electricity Sales
Residential		1,394			1,460			(66	)		(4.5	)
Commercial		1,726			1,713			13			0.8
Industrial		1,303			1,224			79			6.5
Other retail		22			22			—			—
Total Retail		4,445			4,419			26			0.6
Tariff-based wholesale		1,346			1,511			(165	)		(10.9	)
Market-based wholesale		563			699			(136	)		(19.5	)
Total wholesale		1,909			2,210			(301	)		(13.6	)
Total Electricity Sales		6,354			6,629			(275	)		(4.1	)
	(Dollars per MWh)
Total retail	$	74.81		$	71.71		$	3.10			4.3
Tariff-based wholesale	$	46.26		$	42.25		$	4.01			9.5
Market-based wholesale	$	29.39		$	32.40		$	(3.01	)		(9.3	)
	(Dollars In Thousands)
Fuel and Purchased Power
Fuel used for generation	$	103,614		$	116,186		$	(12,572	)		(10.8	)
Purchased power		19,694			19,029			665			3.5
Subtotal		123,308			135,215			(11,907	)		(8.8	)
Emissions allowances, VIE and miscellaneous		297			(701	)		998			142.4
Fuel expense recovery (RECA)		963			(2,272	)		3,235			142.4
Total fuel and purchased power expense	$	124,568		$	132,242		$	(7,674	)		(5.8	)
	(Thousands of MWh)
Electricity Supply
Generated - Gas/oil		240			301			(61	)		(20.3	)
Coal		4,800			5,509			(709	)		(12.9	)
Nuclear		966			632			334			52.8
Wind		117			105			12			11.4
Subtotal electricity generated		6,123			6,547			(424	)		(6.5	)
Purchased		616			491			125			25.5
Total Electricity Supply		6,739			7,038			(299	)		(4.2	)
	(Dollars per MWh)
Average cost of fuel used for generation	$	16.92		$	17.75		$	(0.83	)		(4.7	)
Average cost of purchased power	$	31.97		$	38.76		$	(6.79	)		(17.5	)
Average cost of fuel and purchased power	$	18.30		$	19.21		$	(0.91	)		(4.7	)
Degree Days
	2010			2009 / 20 yr Avg			Change			% Change
Cooling
Actual compared to last year		27			3			24			800.0
Actual compared to 20 year average		27			34			(7	)		(20.6	)
Heating
Actual compared to last year		1,714			2,026			(312	)		(15.4	)
Actual compared to 20 year average		1,714			1,889			(175	)		(9.3	)

	Westar Energy, Inc
Supplemental Data	Revenue, Sales and Energy Supply

	Twelve Months Ended December 31,
	2010			2009			Change			% Change
	(Dollars In Thousands)
Revenues
Residential	$	661,177		$	576,896		$	84,281			14.6
Commercial		572,062			529,847			42,215			8.0
Industrial		318,249			291,754			26,495			9.1
Other retail		11,961			11,521			440			3.8
Provision for rate refunds		(24,664	)		(30,037	)		5,373			17.9
Total Retail Revenues		1,538,785			1,379,981			158,804			11.5
Tariff-based wholesale		246,195			232,003			14,192			6.1
Market-based wholesale		88,474			76,266			12,208			16.0
Transmission		144,513			132,450			12,063			9.1
Other		38,204			37,531			673			1.8
Total Revenues	$	2,056,171		$	1,858,231		$	197,940			10.7
	(Thousands of MWh)
Electricity Sales
Residential		6,957			6,404			553			8.6
Commercial		7,519			7,235			284			3.9
Industrial		5,468			5,145			323			6.3
Other retail		89			88			1			1.1
Total Retail		20,033			18,872			1,161			6.2
Tariff-based wholesale		6,074			6,131			(57	)		(0.9	)
Market-based wholesale		2,638			2,657			(19	)		(0.7	)
Total wholesale		8,712			8,788			(76	)		(0.9	)
Total Electricity Sales		28,745			27,660			1,085			3.9
	(Dollars per MWh)
Total retail	$	76.81		$	73.12		$	3.69			5.0
Tariff-based wholesale	$	40.53		$	37.84		$	2.69			7.1
Market-based wholesale	$	33.54		$	28.70		$	4.84			16.9
	(Dollars In Thousands)
Fuel and Purchased Power
Fuel used for generation	$	513,710		$	470,885		$	42,825			9.1
Purchased power		79,492			60,874			18,618			30.6
Subtotal		593,202			531,759			61,443			11.6
Emissions allowances, VIE and miscellaneous		712			(6,281	)		6,993			111.3
Fuel expense recovery (RECA)		(10,553	)		9,386			(19,939	)		(212.4	)
Total fuel and purchased power expense	$	583,361		$	534,864		$	48,497			9.1
	(Thousands of MWh)
Electricity Supply
Generated - Gas/oil		1,922			1,878			44			2.3
Coal		21,440			21,210			230			1.1
Nuclear		4,491			4,121			370			9.0
Wind		453			288			165			57.3
Subtotal electricity generated		28,306			27,497			809			2.9
Purchased		2,194			1,709			485			28.4
Total Electricity Supply		30,500			29,206			1,294			4.4
	(Dollars per MWh)
Average cost of fuel used for generation	$	18.15		$	17.12		$	1.03			6.0
Average cost of purchased power	$	36.23		$	35.62		$	0.61			1.7
Average cost of fuel and purchased power	$	19.45		$	18.21		$	1.24			6.8
Degree Days
	2010			2009 / 20 yr Avg			Change			% Change
Cooling
Actual compared to last year		1,974			1,344			630			46.9
Actual compared to 20 year average		1,974			1,579			395			25.0
Heating
Actual compared to last year		4,713			4,776			(63	)		(1.3	)
Actual compared to 20 year average		4,713			4,825			(112	)		(2.3	)

Westar Energy, Inc.

Capitalization

	December 31, 2010				December 31, 2009
	(Dollars in Thousands)
Current maturities of long-term debt	$	61			$	1,345
Current maturities of long-term debt of VIEs		30,155				—
Long-term debt, net		2,490,871				2,490,734
Long-term debt of variable interest entities, net		278,162				—
Total debt		2,799,249	53.7	%		2,492,079	52.4	%
Preferred		21,436	0.4	%		21,436	0.4	%
Common equity		2,382,867	45.8	%		2,245,349	47.2	%
Noncontrolling interests		6,070	0.1	%		—	0.0	%
Total capitalization	$	5,209,622	100.0	%	$	4,758,864	100.0	%
GAAP Book value per share	$	21.25			$	20.59
Period end shares outstanding (in thousands)		112,128				109,072

Outstanding long-term debt table

	CUSIP		December 31, 2010			December 31, 2009
			(Dollars in Thousands)
Westar Energy:
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
5.95% Series due January 2035		95709TAC4		125,000			125,000
5.10% Series due July 2020		95709TAD2		250,000			250,000
5.875% Series due July 2036		95709TAE0		150,000			150,000
6.10% Series due May 2047		95709T704		150,000			150,000
8.625% Series due December 2018		95709TAG5		300,000			300,000
				1,350,000			1,350,000
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
5.0% Series due February 2033 (Wamego)		933623BQ2		57,530			57,760
				133,030			133,260
Other long-term debt:
4.36% Equipment financing loan due 2011				61			1,406
				61			1,406
Total Westar Energy				1,483,091			1,484,666
KGE
First mortgage bond series:
6.53% Series due December 2037		485260BJ1		175,000			175,000
6.15% Series due May 2023		485260B@1		50,000			50,000
6.64%Series due May 2038		485260B#9		100,000			100,000
6.70%Series due June 2019		U24448AB5		300,000			300,000
				625,000			625,000
Pollution control bond series:
5.3% Series due June 2031		121825BW2		108,600			108,600
5.3% Series due June 2031		933623BR0		18,900			18,900
4.85% Series due June 2031		121825CB7		50,000			50,000
5.10% Series due March 2023		502828AH9		13,343			13,463
Variable rate series due April 2027 (LaCygne)		502828AJ5		21,940			21,940
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
5.6% Series due June 2031		121825CD3		50,000			50,000
6.0% Series due June 2031		121825CE1		50,000			50,000
5.0% Series due June 2031		121825CF8		50,000			50,000
				387,283			387,403
Total KGE				1,012,283			1,012,403
Total long-term debt				2,495,374			2,497,069
Unamortized debt discount				(4,442	)		(4,990	)
Long-term debt due within one year				(61	)		(1,345	)
Total long-term debt, net			$	2,490,871		$	2,490,734

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 fuel and purchased power costs, and accordingly changes to these costs have a minimal impact on net income. For this reason, Westar management believes that gross margin is a useful measure for understanding changes in operating performance from one period to the next. Gross margin is calculated as total revenues less the sum of fuel and purchased power costs and SPP network transmission costs. SPP network transmission costs are included as a component of gross margin because these costs reflect the costs of providing network transmission service, and a significant component of transmission revenue is recognized when providing this service.

Operating and maintenance expense includes SPP network transmission costs (SPP NITS). The SPP network transmission costs are included in gross margin for the reasons shown above, and are therefore excluded from operating and maintenance expense w/o SPP NITS used to reconcile earnings from the comparable prior year period to the earnings for the current period. Westar management believes this measurement is useful for understanding changes in operating performance from one period to the next. Operating and maintenance expense w/o SPP NITS is calculated by subtracting the SPP network transmission costs from operating and maintenance expense.

The calculations of gross margin and operating and maintenance expense w/o SPP NITS for the three and twelve months ended December 31, 2010 and 2009 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. Operating and maintenance expense is the GAAP financial measure most directly comparable to operating and maintenance expense w/o SPP NITS.

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2010			2009			Change			2010			2009			Change
	(Dollars In Thousands)									(Dollars In Thousands)
Revenues
Residential	$	130,957		$	128,927		$	2,030		$	661,177		$	576,896		$	84,281
Commercial		128,170			119,817			8,353			572,062			529,847			42,215
Industrial		75,637			68,332			7,305			318,249			291,754			26,495
Other retail		(2,240	)		(196	)		(2,044	)		(12,703	)		(18,516	)		5,813
Total Retail Revenues		332,524			316,880			15,644			1,538,785			1,379,981			158,804
Wholesale		78,804			86,490			(7,686	)		334,669			308,269			26,400
Transmission		36,016			31,548			4,468			144,513			132,450			12,063
Other		9,379			5,200			4,179			38,204			37,531			673
Total Revenues		456,723			440,118			16,605			2,056,171			1,858,231			197,940
Less: Fuel and purchased power expense		124,568			132,242			(7,674	)		583,361			534,864			48,497
SPP network transmission costs		29,703			26,089			3,614			116,449			105,401			11,048
Gross Margin	$	302,452		$	281,787		$	20,665		$	1,356,361		$	1,217,966		$	138,395
Gross margin	$	302,452		$	281,787		$	20,665		$	1,356,361		$	1,217,966		$	138,395
Add: SPP network transmission costs		29,703			26,089			3,614			116,449			105,401			11,048
Less: Operating and maintenance expense		150,825			124,658			26,167			520,409			516,930			3,479
Depreciation and amortization expense		69,982			64,990			4,992			271,937			251,534			20,403
Selling, general and administrative expense		63,108			56,421			6,687			207,607			199,961			7,646
Income from operations	$	48,240		$	61,807		$	(13,567	)	$	472,857		$	354,942		$	117,915
Operating and maintenance expense	$	150,825		$	124,658		$	26,167		$	520,409		$	516,930		$	3,479
Less: SPP Network transmission costs		29,703			26,089			3,614			116,449			105,401			11,048
Operating and maintenance expense w/o SPP NITS	$	121,122		$	98,569		$	22,553		$	403,960		$	411,529		$	(7,569	)

Westar Energy, Inc.

Capital Expenditure Forecast

2011 – 2013

	Actual		Forecast
	2010		2011		2012		2013		2011 - 2013
Generation replacements and other	$	83,409	$	130,400	$	146,400	$	150,600	$	427,399
Westar Environmental		107,726		181,100		200,100		154,300		535,500
La Cygne Environmental		3,945		63,000		171,000		195,100		429,100
Nuclear Fuel		35,267		25,100		30,100		41,700		96,900
Transmission (a)		197,316		192,700		161,300		164,100		518,100
Distribution										—
New customer, replacements and other		78,658		95,900		102,200		106,400		304,500
Smart grid (b)		10,295		13,600						13,600
Other		23,460		19,800		15,000		11,000		45,800
Total	$	540,076	$	721,600	$	826,100	$	823,200	$	2,370,900
(a)    In 2011, 2012 and 2013, Westar plans to incur additional expenditures related to the Prairie Wind Transmission joint venture
			$	2,700	$	22,500	$	13,800	$	39,000
(b)    net of DOE matching grant