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

Exhibit 99.2

Westar Energy, Inc

Second Quarter 2011 Earnings

Released August 4, 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

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, 2011 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 June 30,
	2011			2010			Change			% Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	157,120		$	150,094		$	7,026			4.7
Commercial		153,554			146,538			7,016			4.8
Industrial		91,245			83,110			8,135			9.8
Other retail		(2,440	)		(9,050	)		6,610			73.0
Total Retail Revenues		399,479			370,692			28,787			7.8
Wholesale		77,515			78,999			(1,484	)		(1.9	)
Transmission		39,160			36,314			2,846			7.8
Other		8,738			9,176			(438	)		(4.8	)
Total Revenues		524,892			495,181			29,711			6.0
OPERATING EXPENSES:
Fuel and purchased power		152,973			137,116			15,857			11.6
Operating and maintenance		137,254			121,810			15,444			12.7
Depreciation and amortization		71,089			67,107			3,982			5.9
Selling, general and administrative		55,970			48,154			7,816			16.2
Total Operating Expenses		417,286			374,187			43,099			11.5
INCOME FROM OPERATIONS		107,606			120,994			(13,388	)		(11.1	)
OTHER INCOME (EXPENSE):
Investment income (loss)		1,374			(655	)		2,029			309.8
Other income		2,557			1,041			1,516			145.6
Other expense		(3,113	)		(2,403	)		(710	)		(29.5	)
Total Other Income (Expense)		818			(2,017	)		2,835			140.6
Interest expense		43,300			43,289			11			0.0
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		65,124			75,688			(10,564	)		(14.0	)
Income tax expense		19,599			21,158			(1,559	)		(7.4	)
NET INCOME		45,525			54,530			(9,005	)		(16.5	)
Less: Net income attributable to noncontrolling interests		1,396			1,219			177			14.5
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY		44,129			53,311			(9,182	)		(17.2	)
Preferred dividends		242			242			—			—
NET INCOME ATTRIBUTABLE TO COMMON STOCK	$	43,887		$	53,069		$	(9,182	)		(17.3	)
Earnings per common share, basic	$	0.38		$	0.47		$	(0.09	)		(19.1	)
Average equivalent common shares outstanding (in thousands)		114,908			111,523			3,385			3.0
DIVIDENDS DECLARED PER COMMON SHARE	$	0.32		$	0.31		$	0.01			3.2
Effective income tax rate		30.09	%		27.95	%

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

for the period ended June 30, 2011 should be read in conjunction with this financial information.

Westar Energy, Inc.

Consolidated Statements of Income

(Unaudited)

	Six Months Ended June 30,
	2011			2010			Change			% Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	310,028		$	294,837		$	15,191			5.2
Commercial		282,382			264,008			18,374			7.0
Industrial		170,441			152,150			18,291			12.0
Other retail		(5,455	)		(7,059	)		1,604			22.7
Total Retail Revenues		757,396			703,936			53,460			7.6
Wholesale		156,109			161,747			(5,638	)		(3.5	)
Transmission		76,336			72,943			3,393			4.7
Other		16,770			16,385			385			2.3
Total Revenues		1,006,611			955,011			51,600			5.4
OPERATING EXPENSES:
Fuel and purchased power		287,157			270,916			16,241			6.0
Operating and maintenance		274,606			242,983			31,623			13.0
Depreciation and amortization		141,348			134,037			7,311			5.5
Selling, general and administrative		104,734			94,080			10,654			11.3
Total Operating Expenses		807,845			742,016			65,829			8.9
INCOME FROM OPERATIONS		198,766			212,995			(14,229	)		(6.7	)
OTHER INCOME (EXPENSE):
Investment income		3,342			1,102			2,240			203.3
Other income		4,806			1,895			2,911			153.6
Other expense		(8,482	)		(6,897	)		(1,585	)		(23.0	)
Total Other Expense		(334	)		(3,900	)		3,566			91.4
Interest expense		86,838			87,905			(1,067	)		(1.2	)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		111,594			121,190			(9,596	)		(7.9	)
Income tax expense		33,112			34,979			(1,867	)		(5.3	)
NET INCOME		78,482			86,211			(7,729	)		(9.0	)
Less: Net income attributable to nonontrolling interests		2,770			2,220			550			24.8
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY		75,712			83,991			(8,279	)		(9.9	)
Preferred dividends		485			485			—			—
NET INCOME ATTRIBUTABLE TO COMMON STOCK	$	75,227		$	83,506		$	(8,279	)		(9.9	)
Earnings per common share, basic	$	0.66		$	0.75		$	(0.09	)		(12.0	)
Average equivalent common shares outstanding (in thousands)		114,397			111,225			3,172			2.9
DIVIDENDS DECLARED PER COMMON SHARE	$	0.64		$	0.62		$	0.02			3.2
Effective income tax rate		29.67	%		28.86	%

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

for the period ended June 30, 2011 should be read in conjunction with this financial information.

Westar Energy, Inc.

Consolidated Balance Sheets

(Dollars in Thousands, except par values)

(Unaudited)

	June 30,		December 31,
	2011		2010
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	5,282	$	928
Accounts receivable, net		269,056		227,700
Inventories and supplies, net		223,932		206,867
Energy marketing contracts		11,443		13,005
Taxes receivable		12,050		16,679
Deferred tax assets		8,637		30,248
Prepaid expenses		12,926		12,413
Regulatory assets		99,048		73,480
Other		21,924		20,289
Total Current Assets		664,298		601,609
PROPERTY, PLANT AND EQUIPMENT, NET		6,174,126		5,964,439
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		339,253		345,037
OTHER ASSETS:
Regulatory assets		783,627		787,585
Nuclear decommissioning trust		134,547		126,990
Energy marketing contracts		8,135		9,472
Other		219,162		244,506
Total Other Assets		1,145,471		1,168,553
TOTAL ASSETS	$	8,323,148	$	8,079,638
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt	$	—	$	61
Current maturities of long-term debt of variable interest entities		26,991		30,155
Short-term debt		471,000		226,700
Accounts payable		173,225		187,954
Accrued taxes		50,871		45,534
Energy marketing contracts		8,563		9,670
Accrued interest		51,444		77,771
Regulatory liabilities		35,512		28,284
Other		154,480		176,717
Total Current Liabilities		972,086		782,846
LONG-TERM LIABILITIES:
Long-term debt, net		2,491,015		2,490,871
Long-term debt of variable interest entities, net		270,034		278,162
Deferred income taxes		1,054,666		1,102,625
Unamortized investment tax credits		155,209		101,345
Regulatory liabilities		137,579		135,754
Deferred regulatory gain from sale-leaseback		94,793		97,541
Accrued employee benefits		437,770		483,769
Asset retirement obligations		129,458		125,999
Energy marketing contracts		—		10
Other		89,829		66,878
Total Long-Term Liabilities		4,860,353		4,882,954
COMMITMENTS AND CONTINGENCIES (See Notes 8 & 9 in Form 10-Q)
TEMPORARY EQUITY		—		3,465
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 275,000,000 and 150,000,000 shares, respectively; issued and outstanding 115,717,345 and 112,128,068 shares, respectively		578,586		560,640
Paid-in capital		1,458,490		1,398,580
Retained earnings		425,273		423,647
Total Westar Energy Shareholders’ Equity		2,483,785		2,404,303
Noncontrolling Interests		6,924		6,070
Total Equity		2,490,709		2,410,373
TOTAL LIABILITIES AND EQUITY	$	8,323,148	$	8,079,638

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

for the period ended June 30, 2011 should be read in conjunction with this financial information.

Westar Energy, Inc.

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	Six Months Ended June 30,
	2011			2010
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income	$	78,482		$	86,211
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		141,348			134,037
Amortization of nuclear fuel		5,913			12,832
Amortization of deferred regulatory gain from sale-leaseback		(2,748	)		(2,748	)
Amortization of corporate-owned life insurance		12,041			9,348
Non-cash compensation		4,889			5,262
Net changes in energy marketing assets and liabilities		417			(805	)
Accrued liability to certain former officers		1,180			802
Net deferred income taxes and credits		26,645			56,227
Stock based compensation excess tax benefits		(727	)		(411	)
Allowance for equity funds used during construction		(3,421	)		(1,084	)
Changes in working capital items:
Accounts receivable		(44,249	)		(56,536	)
Inventories and supplies		(16,682	)		(9,259	)
Prepaid expenses and other		(28,608	)		10,403
Accounts payable		17,013			52,422
Accrued taxes		10,173			51,692
Other current liabilities		(85,444	)		(91,108	)
Changes in other assets		(13,673	)		19,340
Changes in other liabilities		(31,102	)		(37,807	)
Cash flows from operating activities		71,447			238,818
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment		(345,550	)		(237,645	)
Purchase of securities within trusts		(34,560	)		(166,916	)
Sale of securities within trusts		33,821			167,209
Investment in corporate-owned life insurance		(18,845	)		(18,884	)
Proceeds from investment in corporate-owned life insurance		744			875
Proceeds from federal grant		3,746			—
Investment in affiliated company		(909	)		—
Other investing activities		2,354			(395	)
Cash flows used in investing activities		(359,199	)		(255,756	)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net		242,091			(2,000	)
Retirements of long-term debt		(191	)		(980	)
Retirements of long-term debt of variable interest entities		(10,903	)		(10,450	)
Repayment of capital leases		(931	)		(1,174	)
Borrowings against cash surrender value of corporate-owned life insurance		64,875			71,309
Repayment of borrowings against cash surrender value of corporate-owned life insurance		(3,020	)		(2,233	)
Stock based compensation excess tax benefits		727			411
Issuance of common stock, net		69,220			27,288
Distributions to shareholders of noncontrolling interests		(1,916	)		(2,094	)
Cash dividends paid		(67,846	)		(63,676	)
Cash flows from financing activities		292,106			16,401
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		4,354			(537	)
CASH AND CASH EQUIVALENTS:
Beginning of period		928			3,860
End of period	$	5,282		$	3,323

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

for the period ended June 30, 2011 should be read in conjunction with this financial information.

Westar Energy, Inc.

2nd Quarter 2011 vs. 2010

Earnings Variances

	($ per share)			Change (Dollars in thousands)
2010 earnings attributable to common stock	$	0.47		$	53,069
	Favorable / (Unfavorable)
Retail					28,787	A
Wholesale					(1,484	)B
Transmission					2,846
Other revenues					(438	)
Fuel and purchased power					(15,857	)C
SPP network transmission costs					(3,775	)
Gross Margin					10,079	D
Operating and maintenance w/o SPP NITS					(11,669	)E	VIE
Depreciation and amortization					(3,982	)F	VIE
Selling, general and administrative					(7,816	)G
Other (expense) income					2,835	H
Interest expense					(11	)	VIE
Income tax expense					1,559		VIE
Net income attributable to noncontrolling interests					(177	)	VIE
Change in shares outstanding		(0.01	)
2011 earnings attributable to common stock	$	0.38		$	43,887

Major factors influencing the period to period change in EPS — Favorable/(Unfavorable)

A Due principally to price increases; MWh sales increased 1 percent ( see page 7 for changes by customer class)

B Due principally to decreased demand and availability; MWh sales decreased 19 percent reflecting less availability of generation for wholesale sales; average wholesale market prices increased 22 percent (see page 7 for changes by customer class)

C Due principally to higher average cost of fuel used for generation, which reflects primarily replacement cost of fuel during the Wolf Creek refuel and maintenance outage

D Due primarily to increased retail revenues largely from price increases

E Increase due primarily to: higher regulatory compliance costs at Wolf Creek- ($2M); increased amortization of Wolf Creek refuel and maintenance outage cost - ($2.1M); increased maintenance for tree trimming on electrical distribution system - ($1.6M); increased ad valorem tax expense (largely offset by increase in revenues for property tax surcharge) - ($1.6M); recording in 2010 a reduction in maximum liability for costs associated with the sale of assets many years ago - ($5M); and decrease in expenses for completed storm amortizations - $2M

F Higher plant balances associated primarily with transmission facilities and air quality control equipment

G Increase due primarily to: higher legal fees - ($4M); amortization of energy efficiency program costs (largely offset in revenues through energy efficiency tariff) - ($0.9M)

H Increase due primarily to: increased investment earnings from trust investments to fund retirement benefits- $3.2M; higher equity AFUDC - $1M

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

for the period ended June 30, 2011 should be read in conjunction with this financial information.

Westar Energy, Inc.

YTD June 2011 vs. 2010

Earnings Variances

	($ per share)			Change (Dollars in thousands)
2010 earnings attributable to common stock	$	0.75		$	83,506
	Favorable / (Unfavorable)
Retail					53,460	A
Wholesale					(5,638	)B
Transmission					3,393
Other revenues					385
Fuel and purchased power					(16,241	)C
SPP network transmission costs					(8,672	)
Gross Margin					26,687	D
Operating and maintenance w/o SPP NITS					(22,951	)E	VIE
Depreciation and amortization					(7,311	)F	VIE
Selling, general and administrative					(10,654	)G
Other (expense) income					3,566	H
Interest expense					1,067		VIE
Income tax expense					1,867		VIE
Net income attributable to noncontrolling interests					(550	)	VIE
Change in shares outstanding		(0.02	)
2011 earnings attributable to common stock	$	0.66		$	75,227

Major factors influencing the period to period change in EPS — Favorable/(Unfavorable)

A Due principally to price increases; MWh sales increased 1 percent ( see page 8 for changes by customer class)

B Due principally to decreased demand and availability; MWh sales decreased 18 percent reflecting less availability of generation for wholesale sales; average wholesale market prices increased 18 percent (see page 8 for changes by customer class)

C Due principally to increased purchased power and higher average cost of fuel used for generation, which reflects replacement cost of fuel and purchased power during the Wolf Creek refuel and maintenance outage

D Due primarily to increased retail revenues largely from price increases

E Increase due primarily to: higher regulatory compliance costs at Wolf Creek- ($5.3M); increased amortization of Wolf Creek refuel and maintenance outage cost - ($2.1M); increased maintenance for tree trimming on electrical distribution system - ($4.4M); increased ad valorem tax expense (largely offset by increase in revenues for property tax surcharge) - ($2.4M); recording in 2010 a reduction in maximum liability for costs associated with the sale of assets many years ago - ($5M); and decrease in expenses for completed storm amortizations - $3.2M

F Higher plant balances associated primarily with transmission facilities and air quality control equipment

G Increase due primarily to: higher legal fees - ($5.7M); amortization of energy efficiency program costs (largely offset in revenues through energy efficiency tariff - ($1.8M)

H Increase due primarily to: increased investment earnings from trust investments to fund retirement benefits- $3.6M; higher equity AFUDC - $2.3M

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

for the period ended June 30, 2011 should be read in conjunction with this financial information.

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

	Three Months Ended June 30,
	2011			2010			Change			% Change
	(Dollars In Thousands)
Revenues
Residential	$	157,120		$	150,094		$	7,026			4.7
Commercial		153,554			146,538			7,016			4.8
Industrial		91,245			83,110			8,135			9.8
Other retail		3,093			3,001			92			3.1
Provision for rate refunds		(5,533	)		(12,051	)		6,518			54.1
Total Retail Revenues		399,479			370,692			28,787			7.8
Tariff-based wholesale		64,709			56,896			7,813			13.7
Market-based wholesale		12,806			22,103			(9,297	)		(42.1	)
Transmission		39,160			36,314			2,846			7.8
Other		8,738			9,176			(438	)		(4.8	)
Total Revenues	$	524,892		$	495,181		$	29,711			6.0
	(Thousands of MWh)
Electricity Sales
Residential		1,549			1,530			19			1.2
Commercial		1,890			1,908			(18	)		(0.9	)
Industrial		1,438			1,405			33			2.3
Other retail		22			23			(1	)		(4.3	)
Total Retail		4,899			4,866			33			0.7
Tariff-based wholesale		1,381			1,471			(90	)		(6.1	)
Market-based wholesale		395			730			(335	)		(45.9	)
Total wholesale		1,776			2,201			(425	)		(19.3	)
Total Electricity Sales		6,675			7,067			(392	)		(5.5	)
	(Dollars per MWh)
Total retail	$	81.54		$	76.18		$	5.36			7.0
Tariff-based wholesale	$	46.86		$	38.68		$	8.18			21.1
Market-based wholesale	$	32.42		$	30.28		$	2.14			7.1
	(Dollars In Thousands)
Fuel and Purchased Power
Fuel used for generation	$	139,765		$	121,899		$	17,866			14.7
Purchased power		27,613			20,528			7,085			34.5
Subtotal		167,378			142,427			24,951			17.5
Emissions allowances, VIE and miscellaneous		285			(146	)		431			294.8
Fuel expense recovery (RECA)		(14,690	)		(5,165	)		(9,525	)		(184.4	)
Total fuel and purchased power expense	$	152,973		$	137,116		$	15,857			11.6
	(Thousands of MWh)
Electricity Supply
Generated - Gas/oil		610			344			266			77.3
Coal		5,523			5,271			252			4.8
Nuclear		(11	)		1,214			(1,225	)		(100.9	)
Wind		130			125			5			4.0
Subtotal electricity generated		6,252			6,954			(702	)		(10.1	)
Purchased		834			553			281			50.8
Total Electricity Supply		7,086			7,507			(421	)		(5.6	)
	(Dollars per MWh)
Average cost of fuel used for generation	$	22.36		$	17.53		$	4.83			27.6
Average cost of purchased power	$	33.11		$	37.12		$	(4.01	)		(10.8	)
Average cost of fuel and purchased power	$	23.62		$	18.97		$	4.65			24.5
Degree Days
				2010 /
	2011			20 yr Avg			Change			% Change
Cooling
Actual compared to last year		623			606			17			2.8
Actual compared to 20 year average		623			430			193			44.9
Heating
Actual compared to last year		364			277			87			31.4
Actual compared to 20 year average		364			415			(51	)		(12.3	)

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

	Six Months Ended June 30,
	2011			2010			Change			% Change
	(Dollars In Thousands)
Revenues
Residential	$	310,028		$	294,837		$	15,191			5.2
Commercial		282,382			264,008			18,374			7.0
Industrial		170,441			152,150			18,291			12.0
Other retail		6,111			5,930			181			3.1
Provision for rate refunds		(11,566	)		(12,989	)		1,423			11.0
Total Retail Revenues		757,396			703,936			53,460			7.6
Tariff-based wholesale		124,847			113,192			11,655			10.3
Market-based wholesale		31,262			48,555			(17,293	)		(35.6	)
Transmission		76,336			72,943			3,393			4.7
Other		16,770			16,385			385			2.3
Total Revenues	$	1,006,611		$	955,011		$	51,600			5.4
	(Thousands of MWh)
Electricity Sales
Residential		3,207			3,212			(5	)		(0.2	)
Commercial		3,594			3,575			19			0.5
Industrial		2,776			2,682			94			3.5
Other retail		43			44			(1	)		(2.3	)
Total Retail		9,620			9,513			107			1.1
Tariff-based wholesale		2,758			3,043			(285	)		(9.4	)
Market-based wholesale		929			1,457			(528	)		(36.2	)
Total wholesale		3,687			4,500			(813	)		(18.1	)
Total Electricity Sales		13,307			14,013			(706	)		(5.0	)
	(Dollars per MWh)
Total retail	$	78.73		$	74.00		$	4.73			6.4
Tariff-based wholesale	$	45.27		$	37.20		$	8.07			21.7
Market-based wholesale	$	33.65		$	33.33		$	0.32			1.0
	(Dollars In Thousands)
Fuel and Purchased Power
Fuel used for generation	$	254,301		$	248,184		$	6,117			2.5
Purchased power		48,449			34,913			13,536			38.8
Subtotal		302,750			283,097			19,653			6.9
Emissions allowances, VIE and miscellaneous		382			118			264			223.7
Fuel expense recovery (RECA)		(15,975	)		(12,299	)		(3,676	)		(29.9	)
Total fuel and purchased power expense	$	287,157		$	270,916		$	16,241			6.0
	(Thousands of MWh)
Electricity Supply
Generated -Gas/oil		942			662			280			42.3
Coal		10,382			10,802			(420	)		(3.9	)
Nuclear		1,013			2,314			(1,301	)		(56.2	)
Wind		246			233			13			5.6
Subtotal electricity generated		12,583			14,011			(1,428	)		(10.2	)
Purchased		1,432			866			566			65.4
Total Electricity Supply		14,015			14,877			(862	)		(5.8	)
	(Dollars per MWh)
Average cost of fuel used for generation	$	20.21		$	17.71		$	2.50			14.1
Average cost of purchased power	$	33.83		$	40.32		$	(6.49	)		(16.1	)
Average cost of fuel and purchased power	$	21.60		$	19.03		$	2.57			13.5
Degree Days
				2010 /
	2011			20 yr Avg			Change			% Change
Cooling
Actual compared to last year		636			612			24			3.9
Actual compared to 20 year average		636			433			203			46.9
Heating
Actual compared to last year		3,056			2,982			74			2.5
Actual compared to 20 year average		3,056			2,875			181			6.3

Westar Energy, Inc.

Capitalization

	June 30, 2011				December 31, 2010
	(Dollars in Thousands)
Current maturities of long-term debt	$	—			$	61
Current maturities of long-term debt of VIEs		26,991				30,155
Long-term debt, net		2,491,015				2,490,871
Long-term debt of variable interest entities, net		270,034				278,162
Total debt		2,788,040	52.8	%		2,799,249	53.7	%
Preferred		21,436	0.4	%		21,436	0.4	%
Common equity		2,462,349	46.7	%		2,382,867	45.8	%
Noncontrolling interests		6,924	0.1	%		6,070	0.1	%
Total capitalization	$	5,278,749	100.0	%	$	5,209,622	100.0	%
GAAP Book value per share	$	21.28			$	21.25
Period end shares outstanding (in thousands)		115,717				112,128

Outstanding long-term debt table

	CUSIP		June 30, 2011			December 31, 2010
			(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		57,425			57,530
				132,925			133,030
Other long-term debt:
4.36% Equipment financing loan due 2011				—			61
				—			61
Total Westar Energy				1,482,925			1,483,091
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		13,318			13,343
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
				387,258			387,283
Total KGE				1,012,258			1,012,283
Total long-term debt				2,495,183			2,495,374
Unamortized debt discount				(4,168	)		(4,442	)
Long-term debt due within one year				—			(61	)
Total long-term debt, net			$	2,491,015		$	2,490,871

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 six months ended June 30, 2011 and 2010 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 June 30,									Six Months Ended June 30,
	2011			2010			Change			2011			2010			Change
	(Dollars In Thousands)									(Dollars In Thousands)
Revenues
Residential	$	157,120		$	150,094		$	7,026		$	310,028		$	294,837		$	15,191
Commercial		153,554			146,538			7,016			282,382			264,008			18,374
Industrial		91,245			83,110			8,135			170,441			152,150			18,291
Other retail		(2,440	)		(9,050	)		6,610			(5,455	)		(7,059	)		1,604
Total Retail Revenues		399,479			370,692			28,787			757,396			703,936			53,460
Wholesale		77,515			78,999			(1,484	)		156,109			161,747			(5,638	)
Transmission		39,160			36,314			2,846			76,336			72,943			3,393
Other		8,738			9,176			(438	)		16,770			16,385			385
Total Revenues		524,892			495,181			29,711			1,006,611			955,011			51,600
Less: Fuel and purchased power expense		152,973			137,116			15,857			287,157			270,916			16,241
SPP network transmission costs		32,685			28,910			3,775			64,736			56,064			8,672
Gross Margin	$	339,234		$	329,155		$	10,079		$	654,718		$	628,031		$	26,687
Gross margin	$	339,234		$	329,155		$	10,079		$	654,718		$	628,031		$	26,687
Add: SPP network transmission costs		32,685			28,910			3,775			64,736			56,064			8,672
Less: Operating and maintenance expense		137,254			121,810			15,444			274,606			242,983			31,623
Depreciation and amortization expense		71,089			67,107			3,982			141,348			134,037			7,311
Selling, general and administrative expense		55,970			48,154			7,816			104,734			94,080			10,654
Income from operations	$	107,606		$	120,994		$	(13,388	)	$	198,766		$	212,995		$	(14,229	)
Operating and maintenance expense	$	137,254		$	121,810		$	15,444		$	274,606		$	242,983		$	31,623
Less: SPP Network transmission costs		32,685			28,910			3,775			64,736			56,064			8,672
Operating and maintenance expense w/o SPP NITS	$	104,569		$	92,900		$	11,669		$	209,870		$	186,919		$	22,951