EVRG - Earnings call 1 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the First Quarter 2021 Evergy, Inc. Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Ms. Lori Wright, Vice President, Corporate Planning, Investor Relations and Treasurer. yours. is floor the Ma'am,

Lori Wright

Thank you, first this welcome Evergy's everyone, Good call. Thank morning, quarter us and you to Lauren. for morning. joining

Today's differ some of and factors that Slide are SEC forward-looking future contain today's information our the discussion measures. results expectations on cause in include releases issued to investors.evergy.com. quarter filings with of disclosure from our non-GAAP X list a for could will along include materially financial the supplemental information. financial at The on page webcast information main and additional morning, slides website the of and available the this our

financial Chief today, Officer; our will cover Financial and we call our latest call. Campbell, David our Chief first management results, the quarter and and Evergy's available profile. regulatory and customers Executive Executive the first will Andrews, priorities the highlights, and legislative and question-and-answer President Kirk and Officer. On quarter Kirk during our Other more latest detail be enhanced the David will portion have President on sales cover ESG with Vice us outlook. of the members in and are of

to call I the will David. -- call now over turn

David Campbell

Adjusted $X.XX I'll compared per Thank remains $X.XX first year. ago. X. quarter objectives share Lori, well our were begin results for year quarter to positioned good you, earnings morning, Evergy and the everyone. for and Slide the on delivered strong a to meet

remarks, by favorable weather, and As income. higher benefits the in driven describe was income Kirk increase will in adjusted his tax earnings other

share. XXXX to adjusted year, the to $X.XX are EPS per of guidance start our affirming $X.XX solid a With we

XXXX. from annual our XX% of are long-term targeted XXXX reaffirming EPS We growth also through

February XX-Q. during natural totaled which intense in sustained The subject our last provide resettlement call, seen of this As number power weather most and weather by Power breakdown Southwest in wholesale of region amount event Pool gas we purchased in approximately significantly extreme note, event SPP. decades. revenues, total and activity review higher experienced a extreme our we've We remains $XXX net resulted by costs the February, Of that the in in discussed this million. quarter's further jurisdiction and to utility

be We to all potential smooth the regulatory through to that able with for to expect these implement work path costs solutions regulators substantially our In of we recover mechanisms. will the multiple forward, customers. impact selecting

issued with these the a an AAO, In order the accounting associated for of allows Kansas, which event. incremental creation costs weather already track to asset the KCC or authority regulatory

the year. We have line expect to to resolution for recovery path this and time later

In seek that AAO filed the West. power a weather costs net incurred event notice extreme and at to intend Missouri have we fuel purchase Missouri, the for treatment through we

under filing AAO impact review beneficial recovery and this make will in Securitization the legislation to these approach smoothing expect customers. is another potentially passed, for Missouri, if We active enable cost midyear. our reducing costs by and both will of that provide

year. to in clear Missouri recovery this the in have As for a path expect later Kansas, sense we

position this the contribution high marketing $X.XX also I historically transmission during activity during ERCOT we described call, quarter. from power that extreme net between the gross I in power million per achieved has to mentioned gross unusually relatively As a margin how last and event small million costs ERCOT. firm group quarter's and this weather have driven annually. event of of $XX February's earned margins in $XX a pretax In purchases share by long is weather during total, extreme small approximately marketing business

the this net we the results, of consistent XXXX margin remain weather our business for periods with nature original contributions have nonrecurring in past our of in plan. removed from amount the practice the from The outside our numbers, this tax adjusted adjusted event Given these will of EPS.

As is completed years our of and its the station, has nuclear employees of plant noted planned midst recent the and such their is refueling very its between in special Creek, Wolf consecutive has breaker-to-breaker diligence refuelings. on run X, in performed thanks service in third to A now Slide reliable well for also Wolf to outage. our Creek The customers. consistency providing

some Slide regulatory X key initiatives. provides an our of legislative update and on

active have start both While I'll on on regulatory the the year XXXX, in had have calendar case rate proceedings we areas. to start general don't first in we the front. an

Friday. After the a months high scenarios benefited last this Resource stakeholder or IRP up Integrated points through of the working leading as Plan IRP stakeholders, Missouri go of process to the evaluated slide. from of next filing. our collaborative on IRP filed some The I'll we with we

Our After both is it Kansas the parallel In with are Sustainability STP. multiple due last conclusion. a to our and in X been or Kansas although and X, their the July to we'll strategic IRP likely our informational IRPs, that nearing filing have conducting the these dockets by our earlier. relating bit plan, underway is file of over Plan dockets Missouri about months Transformation inform educate development workshops stakeholders

feedback We up and allow both commissions setting on new in our appreciate strategic innovative the processes these states for to plan.

to sustainability. year, focus and key we've plan. with deliver described stakeholders and all in the STP the said balanced of intervener since plan affordability an last and feedback ensuring cost advance is We're consistent the infrastructure on announcing significant pleased of interest objectives savings, how strategic overall reliability, invest consistently we've is designed with As goals the the overall our

June. procedural early in schedule in step final expected the is Missouri a workshop The

any changes reports are the In there quarterly file to commission addition, material the if with STP. we'll

be on would X. June filing such first due The

file for STP advance In filed May STP in response is the workshop in step to schedule. the XX schedule Kansas Kansas, our the of main we'll the remaining the docket. workshop, In comments

over which primarily switch have now legislative I'll our securitization. on to priorities, focused

could is assets fully are of as provide we for securitization company transition. the to advance our value handle the retirement customers not and that As a that depreciated, represents generation fleet it tool potential cost-effective option a

necessary we've our in of enable As is execution passage X-year Missouri to the not plan. and the of noted, securitization Kansas

very However, year's we in key the has sessions this states. our legislative regarding pleased greatly have place collaboration taken both from that the with stakeholders. appreciate dialogue constructive We securitization been in

On X side, House and XXXX the April signature. in X, Bill Kansas was bill Kelly's passed has Governor following became generally law The parts.

retired are be first The assets for to for extraordinary being costs values allows remaining asset for undepreciated generation and securitization. considered that any

allows The utility programs customer and proceeds customer to from the to such distribution generation, enhance the securitized experience. as or bonds use transmission second the areas reinvest into part the that

process similar to assets out generation a has in service, process been generating that building provides place of bill Kansas for for assets. the predetermination Kansas taking new the Lastly, in

is phases process. the securitization strong in of ongoing. passed both Draft reconciliation bills of now support In in have Missouri the House the the are with we Missouri, consideration and final and bill Senate,

We are in for grateful of legislators stakeholders and support the and engagement key Missouri.

shift undepreciated coal operating of enabling While cost questions timing tool potentially and there cost-effective from is for savings the reliability, from the the not is to many handling to is generation, and factors are significant the grid which allows least to ability that affordability. obviously, resulting also reduced from for through extraordinary impact due values. costs of coal renewables. most and important Retirement costs Securitization customers fuel the of transition one

mechanism the provides of replacing renewables. regulators rate also a As rate coal base to removing process base collaborate that from structured with with on our and securitization

rates of to While further keeping are work we advance there time, procedural goal to mechanics these tools to our over expect competitive. certainly through, fully utilize

The for first step will the this likely later predetermination XXXX. year, Lawrence planned process the retirement of Kansas take in potential and Energy additions the Center with the place solar of use in

IRP recent highlights of Slide out X filing. lays the our Missouri

balanced talk the about STP. approach heard the us to You've

reflects Our balance. strategic IRP a approach to the similar

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also and ongoing took conditions the to evolving in required plants The to growth a and into IRP resources. consideration of review mission once market solar Due plants. provided our as act that backup generation are wind renewables, increasingly fossil for more capacity baseload

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filing Energy Center, last Between retire in in Lawrence XXXX, now plans a XXX-megawatt coal X triennial and facility, XXXX. our nearly to Evergy next our units late IRP at the

We consistent megawatts to utility-scale solar, all our of add is also with which of expect XXX STP.

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La the we Those retirement wind, units expected plant, as Cygne XXXX, by enable Center X. out, XXX the shown megawatts renewable Slide to in XXXX. and including are add of plan Energy XXXX investments Jeffrey Looking coal of our total renewables and of a further at megawatts both on to X,XXX of

increasingly retiring continue At the future value run reliability by energy dispatchable hours As February is coal them plan to of same challenges market of fossil ground conditions with opposed demonstrated lower-cost plants the on generation renewable displaced as time, as as our plants change. on line. resources. evolve, years, of In of for the caused part to a fuel the keeping the by extreme fewer our time the XXXX rapid mission weather will their will

and planned IRP as approach plans. on with of key IRP, evolve the transition additions based that policy to phased period continue that following X and we The initial change evolving ability and no the doubt inputs impact in technology monitor retirements resource the alternative the Particularly adjust there's the to years the provides market for will the dynamics. plan Evergy

summary, and the In the affordability sustainability from fleet a in IRP perspective. outlined reliability, win-win-win is transition

environmental for reliability, and phased maintain and to far-reaching favorable benefits from of the customers addition of the fossil our renewables the green swapping options the fuels economics, resources. for retirements Given sustainable

fleet X reduction plan Slide long-term the and lays trajectory. emissions related transition out

zero and the net last XXXX, carbon-free to set developments policies XXXX, our year. reduce levels, by their emissions and emissions achieve more Factoring By our in from We're to aligned As energy with of in dependent carbon levels. and on nuclear of our from emissions-reduction retail by support XXXX and X/X is XXXX carbon sustainable resources. XXXX our XX% customers updated to enabling generation, a half -- carbon reminder, COX energy from advance expect as forth affordability. also than These relative our goals our XX% resources announce STP emissions of we regulations. renewable maintaining reduced power generated used by we XXXX, customers the received was technology focus pleased to while delivering our on a for customers our goal which targets reliability energy future and by

side Slide left-hand over profile emissions-free the next on of coal increasing will our our share on of the reflected reducing proportion. in dramatically equal significantly change generation resources X fleet while reliance X, the decades, As

that cost location solar and gains the cost are effectively, supported by will allow geographic with favorable Our do this ongoing us new and expected renewables storage. for building the to of further resources wind efficiency ample

and wrap had turn on for across business on thesis, focused I focused value over We've our our each our utilities. Slide XXXX our strategic on environment. I'll and our X. executing and To investment a plan to driving the up benefits summarize is of strong shareholders in start plan Before Kirk, customers, it balanced remain

X% our to drive this XXXX growth from annual EPS compound expect XXXX. will execution through We continued targeted X%

for growth tandem Over distribution, in deliver the anticipate our that benefits with will requirements enable generation and we term, sustained transmission and transition, ongoing customers. our infrastructure longer investment in fleet

us our gives have ability high-performing and during experienced with forward targets. against team our in confidence September. high plan strategy forward and diverse qualified our look dedicated Day place, we depth our paired The discussing to our deliver execute to in Investor and Board, in in We greater

turn over I will to now the call Kirk.

Kirkland Andrews

in XXXX the on quarter of the I'll $X.XX good David, compared XX. start reported Slide Thanks, for first morning, $X.XX with quarter results share everyone. first We share quarter per of to per adjusted earnings and the XXXX.

after-tax expectations. earnings, unusually pretax earlier, EPS quarter. mentioned excluded consistent with GAAP from impact marketing David items approximately the margins of our winter Remaining and our the by were in the for share of the achieved high adjusted February event our quarter $X.XX business this per As adjusted have power we the during contributed for first weather item

a by tax outages; higher-equity approximately As first driven tax rate. of or favorable left was versus XXXX, from XXXX; with primarily to compared taxes and number by planned increase and shown as million benefits adjusted higher maintain O&M quarter we partially or demand expected from per of annual days by EPS driven in income to weather-normalized X.X% tax items due in including of increase an a XX% increased projected EDIT; the chart as AFUDC; higher deferred to $X.XX amortization excess of recognition effective right, weather share, income our credit slight in heating approximately to the offset the increase timing realized of degree $X

earnings reflects a our expected in tax thereby less the the credits quarter, first from of will annual and intra-year higher we benefit represents that item, recognized balance merely the With latter shift This approximately timing. more share, per over of benefit in of $X.XX recognize which year.

mentioned, I degree higher versus days As XXXX. heating were

despite weather in Thus, little a line here historic with weather, levels in February days largely due from and milder-than-normal impact weather normal. first degree extremely resulting However, heating for quarter mild of of the the shown a impact were cold January compared quarter March, XXXX. was full result in to to the weather the

our fuel power incurred during as Finally, purchase and the various mentioned, David subsidiaries utility higher-than-normal quarter. costs

Pursuant these the these the of order of with effect to Missouri, to AAO customers. our weather-related were in However, our for pending these during Kansas of in smooth incurred all while and both constructive we'll extreme the substantially deferred. Evergy AAO filing costs on costs cash be impact our the costs working periodic quarter, solutions regulators

to customer on an gives Turning trends. and recent Slide XX, sales update which

the we was first compared the be demand the weather-normalized increased a during As we impacted I XXXX. continue quarter service to for X% expect in quarter, the And COVID, increase demand as less through second approximately expect resiliency the progress to sales X.X% our quarter year, as territory. year walk last for the we've increase in meaningful by meaningfully in and relative retail weather-normalized first quarter signaling continued to mentioned more seen prior

As X.X% weather-normalized COVID-related customers which the COVID which planned sales, driven on half mix in driven shown that increase in bottom of were quarter overall slide, residential sales, resulted this the load a X.X% industrial to increase primarily XXXX. a continue by to the effect; first of: X.X% Kansas demand demand of normal few by after returned be large increased in from conditions reduced the experiencing maintenance outage or stay-at-home in

restrictions increase lifted. through to commercial continues were residential the of trend decline continue by of percentage half as and the improvement to sales favorable The of population sales we the of but sales and partially year-over-year COVID-driven year, fully slow will to offset This gradual a in commercial linger first lower industrial vaccinated likely continue the X.X%. expect be

our total April, rates compared right-hand of consecutive customer the see growth first by those X% the rates the slide, and a customers of last in increased the steady experienced quarter of peaked over that decline quarter you'll we as last XXth we've months. National XX XXXX. side unemployment On seen to

claims unemployment trajectory, whole nation less While Kansas a as X.X%. at the City of of the and metro below national landing and fell This as a favorably similar peak XXXX, sharply X.X% versus dropped and and exhibited was in Kansas severe average remains March. further unemployment area compares Missouri around in more

adjusted the target consistent EPS results, XXXX our quarter XXXX year-over-year range a X% affirming outlook guidance with balance represents solid Slide the from we on long-term outlook the are XXXX, Finally, of our Based XX. turning our year, EPS which with X% for to for growth on combined to our to first of XXXX.

has EPS the year excluded realized margins adjusted this impact XXXX is winter we consistent event our reflected power guidance, have the weather full GAAP from impact. during in which marketing upward with Although EPS, the of revised item been the

of quarter in first expense While item is associated the we remainder substantially recognize the reflected successive from impact this year. each small in of a quarter amount financial will all the over results, our

We to reconciliation part to non-GAAP GAAP to to as components in guidance previous materials in of power GAAP our from guidance the EPS of the this to the adjusted appendix our GAAP margins. the impact have XXXX guidance reconciliation, a included quarter addition current walk EPS, the highlighting the of marketing

With you, that, I'll to David. turn it back

David Campbell

questions. for I will open up

Operator

from Your Julien line of [Operator Dumoulin. Instructions] the first comes question

Dariusz Lozny

on Lozny I Julien. wanted just your Missouri Dariusz to is This IRP. ask for about

X-year longer on coal shifting sequentially, obviously that specifically impacts pushback focused a maintaining of keeping for curious If build about been of think the groups historically of you adding at just anticipate time, customer plants same and plan trajectory balancing but, from renewables you the how trajectory. rates, have customer to while renewables those open

David Campbell

question. as we're that the developed know, we that in Missouri a balanced sustainability. as also well -- as you for and Thanks rates reliability focused it's reflects We on, And do approach. think the IRP

we've approach renewables. paced a So got and adding phased

retirement we're first you'll that And plant Lawrence and phase first will -- be over is side to do time. The addition our in we our going well. Kansas, the see it's Kansas solar as in planned to

costs marginal that obviously, is do energy amount as lower energy reductions produced will fleet. see from -- our it's will the We That coal produced ongoing fuel effectively in result renewables of cost. expect in and you X O&M resources,

it do good So balance. we strikes a think

resources We have pull to base got of a from. tremendous

'XX 'XX, in a jurisdiction. to There's place note cost-effective have in wind. that wind planning we're wind to. you'll more to our In So place and add adding we're better no

So strike we do we think balance. that

well that balance events reliability. through as and make sure the that is One thing need to saw we saw we winter constituents that we our weather

costs to in the can phased but energy So further reduce report reliability with approach maintain way coal, that help we to retirements. produced the reduce from

Dariusz Lozny

Great. your not that one proposal if your looks the in just are It the slide question, wind like more, in IRP XXX latest a in And of could. housekeeping presentation. I are megawatts CapEx

Just enough to add that in curious, order confidence you at CapEx 'XX? able do gaining process IRP what in anticipate to be the in point

David Campbell

we'll part that the September, our in but we I'm of sure had. of it's Analyst dialogue as that talk about that part Day

IRP a our plan saw resource hadn't integrated any for and range You most exercise. we that But have. when of in was It's The put X-year period. plan, 'XX, completed a obviously is reflective that included implementation in that we out range we that baseline the transmission/distribution infrastructure. certainty we dialogue first that yet

the had even about years are we don't this I X know that of familiar detail. you much discussion We for IRP with ago, that all filed if example. many

So about is that our Nevertheless, that more Day. it's we our Analyst will know renewables we'll and investments expectation talk dynamic. it continue, the in

But through obviously, to process. the important it's go

filed still IRP. We the haven't haven't filed yet in IRP We the Kansas.

input we information we we that the sure want is make weather dialogue And So to we important the saw with the received. and as respect winter intervening event.

technical about range So call. 'XX Analyst at include in not for as did we'll year-end in say more the we Day. our matter, we show that a that that our But

Operator

question comes the line from next Your of Pourreza. Shar

Shahriar Pourreza

just real kind interest to the transmission. in So seem the quick have Obviously, high a and Biden storm administration's of of a ones. couple February goals

Greenbelt wind do I'm the with Evergy's would you given Just really D.C. the guys even proximity like similar position term? near others? the you and consider And transmission Or seam of partnering in thinking opportunities line. spend obviously for resources, some see additional projects on a great

are you of that? sort thinking about how So

David Campbell

AEP, which one. on I an in side think transmission and important have with place already will participated that going is a for a to. transmission partnership continue years in to and we partnership the the that's dialogue many be We

opportunities incremental think they has process SPP I a that go And the be for through. transmission. there will

our through that. lines, need do we to participate So there's would our rebuilding obviously And partnership. competitive we drive in if opportunity potential in we there when set in the it where which relates our will are -- lines our that to process, current

Invenergy, it's project It's has which kind is a been has on least know, a a at capable longer. it's got so tremendous by Greenbelt different or think merchant a as gosh, you investment. taken And that, a for experience. -- and been very I of organization is around decade project, recently

You'd would perspective. to rates a work that overall have from and make regulators work sure perspective from a it would

of and something it So obviously, and -- a scope review. be Invenergy and continue evaluate. mix that it's that But of would very it But as size, project of could scale part going any forward. is is, we different as capable, to well requires lot the

carbon regulation, to we path as overall. clarify help is to transmission be inform that what think potential I forward federal the going policies will for and

space. we look evaluate continuing to that so in to forward opportunities And

Shahriar Pourreza

Got right the the September Day early In podium to visibility? it. provide additional that Analyst maybe

David Campbell

think date to a Day -- Yes. the time Potentially. we're line. I And specific but September. to see. have set the the don't going Analyst late Labor we we'll but I to haven't Day, in month, we set on haven't Mid

Shahriar Pourreza

the can how Got that it. involvement Bluescape's maybe impacts on sight discuss efficiently you're change? and generation Got relationship, from any incremental relationship, of managing share of sort David, guess? And then, side from to things i.e. you incremental from maybe what's you the And it. can So relationship? that color prior line to any the driving the versus any I assets seeing is this

David Campbell

for So thank Shar, you, question. we -- the

Board we've of with got very a experiences. I balanced set a think capable

And Landrieu Mary bring, think, Senator And both of significant as Senator that network prior now Andrews John I Kirk and John and experience changes I experience experience Wilder our space. in the Finance part personal in of with additional national February. Washington; context. added her the we is implemented vast a and Landrieu So complementary capabilities: and both his in them chairing were obviously, have in John Committee. with and Wilder, with John

with along members taking of approach other us John that high-performance targets Sustainability business. in a and of implement our characterize areas to setting Board each systematic our Plan the helping would I the is to Transformation

for achieving each improvements that us the investments. from cited that generation. achieving efficiency John think that business our for for customers, our that part stakeholders, benefits the to make we benefits and I are and sure reliability performance we're seeking show in gains, we're we're driving is driving to drive of key you all discipline Board So But on our

it's is systematic approach disciplined that complementing. I a So think the Board

but I -- do our start. the partnership effort. a experience members, is it's all I to our Board been great think Board think and that team is And we value John's as think further and off is very we I complementing input a bringing,

Shahriar Pourreza

it. then me. just just Got see reforms all the And FERC lastly provide ROE get do if watching adders for we're Maybe you sensitivity if cut. closely. really Obviously, we those a could ROE FERC

David Campbell

about talking XX basis you're the So points that is under contemplation?

Shahriar Pourreza

Correct.

David Campbell

we that frame. estimate impact $X.XX that the Shar, share per range 'XX-'XX Yes. the the $X.XX of to is of in in time

Shahriar Pourreza

Great. congrats That It's And legislative the on was Terrific. and it. regulatory initiatives. terrific.

David Campbell

you, right. All Shar. Thank Thank you.

Operator

next Your Patterson. line Instructions] of Paul comes the question [Operator from

Paul Patterson

the significance with our bills, X -- the -- any So questions, I securitization Is legislation. that bills, well, just but difference X these House, one some competing there from these of the know different perspective? -- in or don't between quick the any one Missouri is Senate, competing significant about and just in

David Campbell

No. they're Paul, pretty close.

through to make but process think sure all material not there any it's typical I the just differences. match, go words are to the

within as positioned Obviously, process, the that know we'll we've the we the we're But we're similar. to we're optimistic. but way, -- work think And are be. -- but either well could think we we're as next I week, we expect got So in provisions And positioned. very optimistic. we're general, through well

Paul Patterson

proceeds. think I fungible. -- out being discretion of the called Okay. to reinvesting Great. -- with of funds securitization of sort Kansas, guys in utilities And you And the then respect the

just why elaborate a So the about could I'm guess? not I'm there wondering just to that that? should bit is calling benefit. as on you or some that guess completely prudency concern think I mean of are I little sort predetermination? Or clear you I out, more what how we was if guys

David Campbell

think question, I good Paul, So that's a a good point.

really point, you were used. I is that there the there proceeds, restrictions was that the how do saying note, discretionary to think that saying But not your are it's opposed to know just those that broadly, -- the of We're use that as -- I purpose. to all case -- not in funds. plan it's that, securitization we always to aren't that general there's dictate say restrictions will of as funds more are we it's

We read we that But new the for on plants action. that a do We predetermination nothing special is things us. the do before your investments. allows that to seeking predetermination opportunity to for because that its we're than us taking as approach note, just to matter retire, have allowed flexibility for a there's on like get about separate other

Paul Patterson

potential want have to -- of securitization know could with of one what Okay. about us sort of come terms of up potential you the that during out think do the we the just have years that in any of about or size guess, And the might or then share, -- something, share about, the guys I should we're size -- that during are haven't can maybe the of few or with the process but guys securitization thinking you maybe whatever in I the don't mean, what do that if you size next -- you come idea -- be -- how STP you we you maybe this?

David Campbell

Sure.

we and it predetermination for in do would if very But that -- we'll advance. the we retirement -- $XXX go of for a go filing, So anticipate obviously, good we the process. part million about plant have of sense 'XX securitization application to the through a in would is as the the late planned that Lawrence

will it that be amount. So roughly

the rate investment down we to of remarks, XXs my XXXX. general that noted transition will through retirement, base, through rate the do the low in relative given As in by expect base get coal T&D, I our as share a

Paul Patterson

Okay.

thinking securitized, we're plant, we're -- point? sort $XXX So at is else of understand Lawrence of what other not just least at to Lawrence than plant being that thinking there the anything about. this The

David Campbell

Not during implementation the phase. X-year

the see, obviously, would the securitization both the as retirements future But And continue we'll Kansas, we in is option well. in for that assess that overall an Missouri to evolve. are know anticipate, XXs. timing retirements in and be the if as we As would the IRP that we later used in plan market conditions

Paul Patterson

terms the there is, in from little on a refinement a the talked least favorable little is you like my and up, follow I in you commission not of mean bit whatever then I looks proceeding, you, sort or suggestion. not what being I And some a sign-off -- not from got at about a that? eventual it's a of of to STP, from guess, guess, me, bit perspective. standard, process remarks it an it's STP if Okay. -- at the least, staff guys of But what's clear have

So you've expect sort -- this you wrapped have Kansas? to up, thing of in I guess, when STP do

David Campbell

and know, process, you through provided the an formal opportunity and feedback. But us that -- plan are the that as proceedings. commissions from have to There's for go not result sign-up So will they we and the informational. appreciate get a it's receive innovative the

of in us terms calendar, be we're responsive In the Kansas step for procedural going the will to comments. next file

week. I we'll And a think then have May next on it's session XX.

So and it an workshop will be dialogue. interactive

we the overall could appreciate But Missouri the -- obviously, currently the that's in generally Missouri, reflected comments. similar have We that be workshop comments in reflect saw wrap-up that we seen it in we've could step we sort it's and it And a informational, plan. in the expect In the June. both remaining but that next to adjusted. And balanced process, a and we of comments have early think Kansas.

wrapping current has the early in dockets, informational but line frame. us evolve, schedule June because late time could they're May time Again, the or the

Operator

comes Sullivan. question of line Michael the next from Your

Michael Sullivan

in back I decision needed without on was of to you IRP. basically rest the the the And question but guys plants there in a the else Just much -- got we Curious, kind extent good and a a test of the pretty stress situation everything of conclusion little longer? mean we example dispatchable February. then terms that of to Lawrence a into factored around keep pretty resources the do could you

David Campbell

review not system STP think an ongoing and we process, done. that I is say The learn, entire to the that it's I still and Mike, that is fair analysis have a yet think the to right? -- across lot the

with -- we And we Lawrence, within As technical meet. retirement capacity accredited need to we the of a that are matter, buffer. a can our have we requirement

the at way. capacity. So And retire, that replacement more going to have looking to you're right we're at we the look more in it

a winter to peaks and But fair of are towards necessarily I say geared peaks. that lot and event also the not reinforced the think rules towards approaches summer that it's

we as So because to a in is much one you're the how thinking okay, is retirements wind, of about, most measured along renewables, sense IRP you're exercise which a that balanced be going if makes need your the approach -- additions reliability part peaks, equation. the of reliability less is with in dealing affordability to sustainability, also but with is the winter are and considering in effective ensuring of it particularly to solar, you factor factoring

other it's weather that -- dialogue it area. event So our the systems ongoing be think just least it's But overall. able and and did well. into the to I in to We'll as across fair winter to our at be not system an say factored going learn evaluation

to sufficient will event, fair we coal you O&M benefits energy to certainly believe certainly is keeping the fuel the it from way, for benefit ongoing there in do think until But and in say costs. will And production of will ensure a to replacements I continue consider that reliability. customers, system the lower you've decline. reliability as got that But we see be them

the is So plan. some of reflected in that thing

we But reflects for doubt But -- and certain technology IRP period. most X-year the implementation look conditions of at is think continue the as now. evolves, to balance for it. there's this market we'll plan the And no that right we'll course,

Michael Sullivan

-- on... Okay. definitely be think was cadence anything as change can just the as how answered I question like providing soon would potentially? Yes. be Or going I Or was think Day but about triennial of Analyst this to could my further other do soon that next before kind the of it, you how you kind -- just of IRP? the updates

David Campbell

filing, Yes. of on but you Then triennial X a give Kansas the deadline, the calendar, course. before there's sooner The IRP an effectively update a Kansas so file -- there's annual than -- still filings. July

will Then X be formal year's be time. it will years. triennial in So there'll update get IRP next the update a a in

environment. ago, years think lot if year changes dynamic IRPs been years the you back because pretty of a But to look last or a or ago it's there's gosh, I X everybody, for X

predict to the future. So hard

But I for think IRP I next changes se. the frankly, in you're just year, change, right Analyst X there X because to about surprised, be everyone the fundamental Day. to well. changes the per don't are years, years, expect I'd continues landscape the you as know

Operator

are Campbell, presenters. it turn you. questions. phone to There Mr. me, Excuse David no back more

David Campbell

great for and safe, in interest day. you. have everyone, a Stay thanks, Evergy. Thank your Well, Great.

Operator

conference This concludes call. today's

disconnect. You may now

Evergy (EVRG) 6 May 212021 Q1 Earnings call transcript