Evergy Inc

Previous wording

Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West conduct business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 15,800 MWs of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.7 million customers in the states of

Current wording

15,800 MWs of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.7 million customers in the states of Kansas and Missouri. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).

Previous wording

In February 2024, Evergy Missouri West Storm Funding issued, at a discount, $331.1 million of 5.10% Securitized Bonds in order to recover the extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather event. See Notes 4 and 7 to the consolidated financial statements for additional information regarding the securitized bonds.

Current wording

In February 2024, Evergy Missouri West Storm Funding issued, at a discount, $331.1 million of 5.10% Securitized Bonds in order to recover the extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather event. See Notes 4 and 9 to the consolidated financial statements for additional information regarding the securitized bonds.

Previous wording

In April 2024, Evergy Missouri West purchased a joint ownership interest representing approximately 145 MW in Dogwood, an operational natural gas combined cycle facility located in Missouri, for approximately $60 million. The purchase was subject to terms and conditions listed in a stipulation and agreement approved by the MPSC allowing Evergy Missouri West to recover in rates a return of and return on the original cost, net of accumulated deprecation, of Dogwood. Evergy Missouri West shall also be allowed to recover in rates over two years a return of, but not a return on, the amount of the purchase price paid in excess of the original cost, net of accumulated depreciation, of Dogwood. In addition, net revenues generated from Evergy Missouri West's ownership of Dogwood from the date of closing to the date new rates become effective in Evergy Missouri West's current rate case shall not impact rates and shall be retained by Evergy Missouri West and reduce the amount of the purchase price paid in excess of the original cost, net of accumulated depreciation, of Dogwood to be recovered from customers.

Current wording

In April 2024, Evergy Missouri West purchased a 22% ownership interest representing approximately 145 MW in Dogwood, an operational natural gas combined cycle facility located in Missouri, for approximately $60 million. The purchase was recorded as an asset acquisition to property, plant and equipment, net on Evergy's consolidated balance sheet. The purchase was subject to terms and conditions listed in a stipulation and agreement approved by the MPSC allowing Evergy Missouri West to recover in rates a return of and return on the original cost, net of accumulated depreciation, of Dogwood. Evergy Missouri West shall also be allowed to recover in rates over two years a return of, but not a return on, the amount of the purchase price paid in excess of the original cost, net of accumulated depreciation, of Dogwood. In addition, net revenues generated from Evergy Missouri West's ownership of Dogwood from the date of closing to the date new rates become effective in Evergy Missouri West's current rate case shall not impact rates and shall be retained by Evergy Missouri West and reduce the amount of the purchase price paid in excess of the original cost, net of accumulated depreciation, of Dogwood to be recovered from customers.

Previous wording

In April 2024, Kansas H.B. 2527 was signed into law by the Governor of Kansas. Most notably, H.B. 2527 includes a plant-in service accounting (PISA) provision that can be elected by Kansas electric public utilities to defer and recover as regulatory assets 90% of depreciation expense and associated return on investment linked to qualifying electric plants in service. Qualifying electric plant includes all rate base additions by an electric public utility, but not including transmission facilities or new electric generating units. The deferred depreciation and return on the associated regulatory asset are required to be included in determining the utility's rate base during subsequent general rate proceedings. The return on the deferred regulatory asset balances will be calculated using the weighted average cost of capital. Utilities that elect the PISA provision can make qualifying deferrals of depreciation and return from July 2024 through December 2030. Evergy Kansas Central and Evergy Metro expect to elect the PISA provision in their Kansas jurisdictions.

Current wording

In April 2024, Kansas H.B. 2527 was signed into law by the Governor of Kansas. Most notably, H.B. 2527 includes a plant-in service accounting (PISA) provision that can be elected by Kansas electric public utilities to defer and recover as regulatory assets 90% of depreciation expense and associated return on investment linked to qualifying electric plants in service. Qualifying electric plant includes all rate base additions by an electric public utility, but does not include transmission facilities or new electric generating units. The deferred depreciation and return on the associated regulatory asset are required to be included in determining the utility's rate base during subsequent general rate proceedings. The return on the deferred regulatory asset balances will be calculated using the weighted average cost of capital. Utilities that elect the PISA provision can make qualifying deferrals of depreciation and return from July 2024 through December 2030. Evergy Kansas Central and Evergy Metro elected the PISA provision in their Kansas jurisdictions effective in July 2024.

Previous wording

Wolf Creek Refueling Outage

Current wording

Wolf Creek Refueling Outage and Fuel Supply

Previous wording

Wolf Creek's most recent refueling outage began in March 2024 and the unit is expected to return to service in May 2024.

Current wording

Wolf Creek's most recent refueling outage began in March 2024 and the unit returned to service in May 2024. Wolf Creek's next refueling outage is planned to begin in the fourth quarter of 2025.

Previous wording

Diluted EPS decreased for the three months ended March 31, 2024, compared to the same period in 2023, primarily due to the decrease in net income attributable to Evergy, Inc. discussed above.

Current wording

Diluted EPS increased for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to the increase in net income attributable to Evergy, Inc. discussed above.

Previous wording

Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended March 31, 2024 were $124.7 million or $0.54 per share. For the three months ended March 31, 2023, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $136.1 million or $0.59 per share.

Current wording

Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended and year to date June 30, 2024 were $207.0 million or $0.90 per share and $331.7 million or $1.44 per share, respectively. For the three months ended and year to date June 30, 2023, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $186.1 million or $0.81 per share and $322.2 million or $1.40 per share, respectively.

Previous wording

i. the mark-to-market impacts of economic hedges related to Evergy Kansas Central's 8% ownership share of JEC; and

Current wording

i. the mark-to-market impacts of economic hedges related to Evergy Kansas Central's 8% ownership share of JEC;

Previous wording

ii. the costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event.

Current wording

ii. the costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event; and

Previous wording

The following table provides a reconciliation between net income attributable to Evergy, Inc. and diluted EPS as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP), respectively.

Current wording

The following tables provide a reconciliation between net income attributable to Evergy, Inc. and diluted EPS as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP), respectively.

Previous wording

(c)Reflects an income tax effect calculated at a statutory rate of approximately 22%.

Current wording

(d)Reflects an income tax effect calculated at a statutory rate of approximately 22%.

Previous wording

The following table summarizes Evergy's gross margin (GAAP) and MWhs sold and reconciles Evergy's gross margin (GAAP) to Evergy's utility gross margin (non-GAAP). See "Executive Summary - Non-GAAP Measures", above for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).

Current wording

The following tables summarize Evergy's gross margin (GAAP) and MWhs sold and reconcile Evergy's gross margin (GAAP) to Evergy's utility gross margin (non-GAAP). See "Executive Summary - Non-GAAP Measures", above for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).

Previous wording

Evergy's gross margin (GAAP) decreased $21.6 million for the three months ended March 31, 2024, compared to the same period in 2023 and Evergy's utility gross margin (non-GAAP) increased $20.5 million for the three months ended March 31, 2024, compared to the same period in 2023, both measures were driven by:

Current wording

Evergy's gross margin (GAAP) increased $15.5 million for the three months ended June 30, 2024, compared to the same period in 2023 and Evergy's utility gross margin (non-GAAP) increased $54.5 million for the three months ended June 30, 2024, compared to the same period in 2023, both measures were driven by:

Previous wording

•a $31.5 million net increase primarily from new retail rates in Kansas effective in December 2023 consisting of $39.9 million primarily from higher Evergy Kansas Central retail rates, partially offset by $6.7 million primarily from lower Evergy Metro retail rates.

Current wording

•a $29.3 million net increase from new retail rates in Kansas effective in December 2023 consisting of $34.8 million from higher Evergy Kansas Central retail rates, partially offset by $5.5 million from lower Evergy Metro retail rates;

Previous wording

•a $4.3 million increase in plant operating and maintenance expense at Wolf Creek at Evergy Kansas Central and Evergy Metro primarily due to higher material costs.

Current wording

•an $8.5 million decrease in plant operating and maintenance expense at Wolf Creek at Evergy Kansas Central and Evergy Metro primarily driven by lower labor expense due to an increase in labor capitalization as a result of the refueling outage completed in May 2024.

Previous wording

•a $12.7 million increase in depreciation and amortization as further described below; and

Current wording

Evergy's other expense, net for the three months ended June 30, 2023 became other income, net for the three months ended June 30, 2024 as a result of a $12.7 million increase in net other income items, primarily driven by an $11.3 million decrease in pension non-service costs primarily due to the resetting of pension expense in retail rates as a result of Evergy Kansas Central's and Evergy Metro's 2023 rate cases effective in December 2023.

Previous wording

•a $3.8 million decrease in investment earnings primarily driven by a $2.0 million decrease in interest and dividend income primarily due to an decrease in carrying charges related to Evergy Missouri West's costs associated with the February 2021 winter weather event to be recovered through securitized bonds issued in February 2024; and

Current wording

•a $7.9 million decrease in investment earnings primarily driven by a $5.0 million decrease in carrying charges related to deferred Evergy Missouri West's costs associated with the February 2021 winter weather event to be recovered through a securitized utility tariff charge effective in February 2024.

Previous wording

•a $2.7 million increase in equity allowance for funds used during construction (AFUDC) principally driven by lower short-term debt balances in 2024; partially offset by

Current wording

•a $7.8 million decrease due to higher debt allowance for funds used during construction (AFUDC) primarily driven by higher construction work in progress balances in 2024.

Previous wording

As of March 31, 2024, Evergy had $1,406.8 million of available borrowing capacity under its master credit facility. The available borrowing capacity under the master credit facility consisted of $199.3 million for Evergy, Inc., $487.5 million for Evergy Kansas Central, $337.0 million for Evergy Metro and $383.0 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility also supports their issuance of commercial paper. See Note 6 to the consolidated financial statements for more information regarding the master credit facility.

Current wording

As of June 30, 2024, Evergy had $1,527.6 million of available borrowing capacity under its master credit facility. The available borrowing capacity under the master credit facility consisted of $199.3 million for Evergy, Inc., $153.4 million for Evergy Kansas Central, $584.7 million for Evergy Metro and $590.2 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility also supports their issuance of commercial paper. See Note 8 to the consolidated financial statements for more information regarding the master credit facility.

Previous wording

For the three months ended March 31, 2024, Evergy made no cash pension contributions. Evergy expects to make cash pension contributions of$38.6 million in 2024. For the three months ended March 31, 2024, Evergy made post-retirement benefit contributions of $0.4 million. Evergy expects to make additional post-retirement benefit contributions of $0.4 million in 2024. See Note 5 to the consolidated financial statements for additional information on Evergy's pension and post-retirement plans.

Current wording

Year to date June 30, 2024, Evergy made no cash pension contributions. Evergy expects to make cash pension contributions of$36.8 million in 2024. Year to date June 30, 2024, Evergy made post-retirement benefit contributions of $0.4 million. Evergy expects to make additional post-retirement benefit contributions of $0.2 million in 2024. See Note 7 to the consolidated financial statements for additional information on Evergy's pension and post-retirement plans.

Previous wording

Evergy's cash flows from operating activities decreased $45.6 million for the three months ended March 31, 2024, compared to the same period in 2023, primarily driven by a decrease in cash receipts for retail electric sales in 2024 primarily due to the collection of lower December receivables in January 2024 compared to the same period in 2023.

Current wording

Evergy's cash flows from operating activities decreased $80.4 million year to date June 30, 2024, compared to the same period in 2023, primarily driven by a decrease in cash receipts for retail electric sales in 2024 primarily due to lower collection of receivables in January in 2024 compared to the same period in 2023.

Previous wording

Evergy's cash flows used in investing activities increased $86.3 million for the three months ended March 31, 2024, compared to the same period in 2023, primarily driven by:

Current wording

Evergy's cash flows used in investing activities decreased $37.3 million year to date June 30, 2024, compared to the same period in 2023, primarily driven by:

Previous wording

•a $90.9 million increase in additions to property, plant and equipment due to increases at Evergy Kansas Central and Evergy Missouri West of $53.6 million and $39.2 million, respectively, primarily due to increased spending for a variety of capital projects including transmission and distribution projects related to grid resiliency and other infrastructure improvements.

Current wording

•a $191.9 million increase in other additions to property, plant and equipment, due to increases at Evergy Kansas Central and Evergy Missouri West of $77.3 million and $112.0 million, respectively, primarily due to increased spending for a variety of capital projects including transmission and distribution projects related to grid resiliency and other infrastructure improvements, and Evergy Missouri West's purchase of a joint ownership interest in Dogwood for approximately $60 million in April 2024.

Previous wording

Evergy's cash flows from financing activities increased $166.4 million for the three months ended March 31, 2024, compared to the same period in 2023, primarily driven by:

Current wording

Evergy's cash flows from financing activities increased $44.7 million year to date June 30, 2024, compared to the same period in 2023, primarily driven by:

Previous wording

•a $300.0 million increase due to lower retirements of long-term debt, net due to Evergy Metro's repayment of $300.0 million of 3.15% Senior Notes in March 2023; partially offset by

Current wording

•a $350.0 million increase due to lower retirements of long-term debt, net due to Evergy Metro's repayment of $300.0 million of 3.15% Senior Notes in March 2023 and Evergy Kansas South's repayment of $50.0 million of 6.15% FMBs in May 2023; and

Previous wording

Evergy Kansas Central's gross margin (GAAP) decreased $5.4 million for the three months ended March 31, 2024, compared to the same period in 2023, and Evergy Kansas Central's utility gross margin (non-GAAP) increased $28.9 million for the three months ended March 31, 2024, compared to the same period in 2023, both measures were driven by:

Current wording

Evergy Kansas Central's gross margin (GAAP) increased $20.5 million year to date June 30, 2024, compared to the same period in 2023, and Evergy Kansas Central's utility gross margin (non-GAAP) increased $81.8 million year to date June 30, 2024, compared to the same period in 2023, both measures were driven by:

Previous wording

•a $39.9 million increase primarily from new Evergy Kansas Central retail rates effective in December 2023.

Current wording

•a $66.7 million increase primarily from new Evergy Kansas Central retail rates effective in December 2023;

Previous wording

•an $11.8 million increase in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $6.8 million increase in transmission and distribution operating and maintenance expenses and a $2.1 million increase in operating and maintenance expense at Wolf Creek as described further below; and

Current wording

•an $18.7 million increase in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $12.5 million increase in plant operating and maintenance expense at fossil-fuel generating units and a $7.4 million increase in transmission and distribution operating and maintenance expense; partially offset by a $2.2 million decrease in operating and maintenance expense at Wolf Creek as described further below; and

Previous wording

Evergy Kansas Central's operating and maintenance expense increased $8.7 million for the three months ended March 31, 2024, compared to the same period in 2023, primarily driven by:

Current wording

Evergy Kansas Central's operating and maintenance expense increased $10.4 million year to date June 30, 2024, compared to the same period in 2023, primarily driven by:

Previous wording

Evergy Kansas Central's depreciation and amortization expense increased $15.0 million for the three months ended March 31, 2024, compared to the same period in 2023, driven by:

Current wording

Evergy Kansas Central's depreciation and amortization expense increased $26.9 million year to date June 30, 2024, compared to the same period in 2023, driven by:

Previous wording

Evergy Kansas Central's taxes other than income tax increased $7.5 million for the three months ended March 31, 2024, compared to the same period in 2023, primarily driven by the rebasing of property taxes as a result of Evergy Kansas Central's 2023 rate case effective in December 2023.

Current wording

Evergy Kansas Central's taxes other than income tax increased $15.7 million year to date June 30, 2024, compared to the same period in 2023, primarily driven by the rebasing of property taxes as a result of Evergy Kansas Central's 2023 rate case effective in December 2023.

Previous wording

•a $2.3 million decrease in equity AFUDC principally driven by higher short-term debt and lower construction work in progress balances in the first quarter of 2024.

Current wording

•a $5.4 million increase in equity AFUDC principally driven by higher construction work in progress balances in 2024.

Previous wording

Evergy Kansas Central's interest expense increased $3.4 million for the three months ended March 31, 2024, compared to the same period in 2023, primarily driven by:

Current wording

Evergy Kansas Central's interest expense increased $7.2 million year to date June 30, 2024, compared to the same period in 2023, primarily driven by:

Previous wording

Evergy Metro's gross margin (GAAP) decreased $13.3 million for the three months ended March 31, 2024, compared to the same period in 2023, and Evergy Metro's utility gross margin (non-GAAP) decreased $6.7 million for the three months ended March 31, 2024, compared to the same period in 2023, both measures were driven by:

Current wording

Evergy Metro's gross margin (GAAP) decreased $33.5 million year to date June 30, 2024, compared to the same period in 2023, and Evergy Metro's utility gross margin (non-GAAP) decreased $21.5 million year to date June 30, 2024, compared to the same period in 2023, both measures were driven by:

Previous wording

•a $6.7 million decrease primarily from new Evergy Metro retail rates effective in December 2023.

Current wording

•a $9.9 million decrease from new Evergy Metro retail rates effective in December 2023; and

Previous wording

Evergy Metro's operating and maintenance expense increased $2.6 million for the three months ended March 31, 2024, compared to the same period in 2023, primarily driven by:

Current wording

Evergy Metro's operating and maintenance expense increased $3.4 million year to date June 30, 2024, compared to the same period in 2023, primarily driven by:

Previous wording

•a $2.3 million decrease due to higher costs billed primarily to Evergy Missouri West for common use assets related to facilities and software assets.

Current wording

•a $3.3 million decrease due to higher costs billed primarily to Evergy Missouri West for common use assets related to facilities and software assets; and

Previous wording

Evergy Metro's taxes other than income tax increased $3.8 million for the three months ended March 31, 2024, compared to the same period in 2023, primarily driven by an increase in property taxes primarily driven by higher assessed property valuations.

Current wording

Evergy Metro's taxes other than income tax increased $7.8 million year to date June 30, 2024, compared to the same period in 2023, primarily driven by the rebasing of property taxes as a result of Evergy Metro's 2023 rate case effective in December 2023.

Previous wording

Evergy Metro's other expense, net decreased $5.4 million for the three months ended March 31, 2024, compared to the same period in 2023, primarily driven by:

Current wording

Evergy Metro's other expense, net decreased $10.9 million year to date June 30, 2024, compared to the same period in 2023, primarily driven by an $11.9 million decrease in pension non-service costs primarily due to the resetting of pension expense in retail rates as a result of Evergy Metro's 2023 rate case effective in December 2023.