Evergy Inc
For the period ended Mar 31, 2025. Filed May 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
EVRG$87.54+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001711269-24-000032
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001711269-25-000010
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 254 previous paragraphs and 137 current paragraphs.
73 unchanged; 31 reworded; 31 added; 147 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 14 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
Missouri Legislation
Current report
In April 2025, Missouri S.B. 4 was signed into law by the Governor of Missouri. Most notably, S.B. 4 establishes new mechanisms for Missouri electric utilities to recover the costs associated with the construction of new natural gas-fired generating units. The utilities will be able to include certain costs of CWIP in rate base. The inclusion of CWIP will be in lieu of AFUDC applicable to the construction of the new natural gas-fired generating units. The MPSC will determine the amount of CWIP that may be included in rate base. Additionally, amounts collected arising from the inclusion of CWIP in rate base are subject to refund under certain circumstances. These provisions are scheduled to expire at the end of 2035.
Current report
Additionally, the law extends Missouri's existing PISA provisions to include certain natural gas-fired generating units as qualifying electric plant and extends the sunset date of these provisions through the end of 2035. These provisions allow electric utilities to defer to a regulatory asset for recovery in a subsequent general rate case 85% of depreciation expense and the associated return on investment for qualifying electric plant rate base additions for assets placed in-service between general rate cases.
Current report
In April 2025, Kansas H.B. 2107 was signed into law by the Governor of Kansas. Most notably, H.B. 2107 establishes a two-year statute of limitations for wildfire-related claims against a Kansas electric public utility and a $5.0 million limit for punitive damages awarded under a fire claim. The law also requires the plaintiff to establish the burden of proof for fire claims by a preponderance of evidence.
Current report
The Evergy Companies use a triennial IRP, a detailed analysis that estimates factors that influence the future supply and demand for electricity, to inform the manner in which they supply electricity. The most recent IRPs incorporate the latest SPP resource adequacy requirements and anticipated load growth. Based on these and other factors, the IRP indicated the addition of new supply side resources, including combined and simple cycle natural gas plants, would be needed.
Current report
Additionally, Evergy Missouri West plans to construct a 440 MW simple-cycle natural gas plant located in Missouri. The plant is expected to begin operations in 2030.
Current report
In 2024, Evergy Kansas Central and Evergy Missouri West requested predetermination from the KCC and a CCN from the MPSC, respectively, for their planned natural gas investments. In April 2025, Evergy Kansas Central and intervenors in the case reached a non-unanimous partial settlement agreement regarding its investments in its planned natural gas plants. See "Applications for Predetermination" and "Requests for Certificate of Convenience and Necessity" in Note 4 to the consolidated financial statements for information regarding Evergy Kansas Central's and Evergy Missouri West's applications for predetermination and CCN for their investments in these natural gas plants.
Current report
Net income attributable to Evergy, Inc. increased for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to new Evergy Missouri West retail rates effective in January 2025, higher transmission revenues and retail sales driven by favorable weather; partially offset by higher interest and depreciation expense and lower investment earnings.
Current report
•a $23.5 million increase from new Evergy Missouri West retail rates effective in January 2025;
Current report
•an $18.6 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2025; and
Current report
•a $3.7 million increase primarily due to higher retail sales driven by favorable weather (heating degree days increased by 18%), partially offset by lower demand and retail pricing; partially offset by
Current report
•a $12.0 million increase in depreciation and amortization as further described below;
Current report
•a $6.8 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $4.3 million decrease in operating and maintenance expense at generating facilities and a $2.5 million decrease in transmission and distribution operating and maintenance expenses; and
Current report
•a $3.0 million decrease in taxes other than income tax.
Current report
Evergy's depreciation and amortization expense increased $12.0 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to capital additions.
Current report
Other Income (Expense), Net
Current report
Evergy's other income, net for the three months ended March 31, 2024 became other expense, net for the three months ended March 31, 2025 as a result of a $7.3 million increase in net other expense items, primarily driven by:
Current report
•a $3.2 million decrease in investment earnings primarily driven by a $3.9 million decrease due to unrealized losses from various equity investments.
Current report
Evergy's interest expense increased $19.3 millionfor the three months ended March 31, 2025, compared tothe same period in 2024, primarily driven by:
Current report
•a $20.4 million increase due to issuances of long-term debt; and
Current report
•a $3.9 million increase due to lower debt AFUDC primarily due to lower short-term debt balances in 2025; partially offset by
Current report
•a $4.9 million decrease due to the repayment of long-term debt.
Current report
•a $3.0 million increase in depreciation and amortization;
Current report
•a $9.0 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily due to a $5.3 million decrease in transmission and distribution operating and maintenance expense as described further below; and
Current report
•a $2.4 million decrease in taxes other than income tax.
Current report
Evergy Kansas Central's operating and maintenance expense decreased $6.8 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily driven by a $5.3 million decrease in transmission and distribution operating and maintenance expenses primarily due to a $4.9 million decrease in non-labor expense driven by net affiliate billings related to common use assets and lower contractor and storm costs.
Current report
Evergy Kansas Central's interest expense increased $3.5 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily driven by a $2.6 million increase in interest expense on short-term borrowings, including borrowings under the money pool, primarily due to higher short-term debt balances.
Current report
•a $5.6 million increase primarily due to higher retail sales driven by favorable weather (heating degree days increased by 16%), partially offset by lower weather-normalized demand.
Current report
•a $3.3 million increase in depreciation and amortization;
Current report
•a $1.0 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $1.8 million decrease in operating and maintenance expense at generating facilities; and
Current report
•a $0.6 million decrease in taxes other than income tax.
Removed paragraphs (147)
Previous report
In October 2024, Evergy Missouri West, MPSC staff and other intervenors in the case reached a unanimous partial stipulation and agreement to settle certain issues in the case. The partial stipulation and agreement provided for an increase to Evergy Missouri West's retail revenues of approximately $55 million after lowering base rates for fuel and purchased power expense of approximately $49 million and rebasing property tax expense. The partial stipulation and agreement excludes one prospective issue related to the proportion of fuel and purchased power costs that are shared with shareholders in Evergy Missouri West's fuel adjustment clause which will be resolved by the MPSC in its final order. The unanimous partial stipulation and agreement is subject to the approval of the MPSC expected in December 2024. If approved, new rates are expected to be effective in January 2025.
Previous report
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 report
Additionally, the law establishes new mechanisms for the recovery of costs associated with new gas-fired generating units. If the KCC decides investment in a new gas-fired generating unit is reasonable, the utility would be able to recover the return on 100% of the associated construction costs at its weighted average cost of capital. The cost recovery from customers could begin a year after construction begins. Rates could be adjusted every six months until new base rates reflecting the plant's costs are established.
Previous report
In April 2024, Kansas S.B. 410 was signed into law by the Governor of Kansas. Most notably, S.B. 410 includes an exemption from all property and ad valorem taxes on certain electric generation facilities for which construction or installation begins on or after January 1, 2025.
Previous report
The second site is expected to be jointly-owned by Evergy Kansas Central and another Evergy utility still to be determined. The Evergy Companies expect the second site to also have an initial generating capacity of approximately 705 MW. The plant is expected to begin operations by summer of 2030. In November 2024, Evergy Kansas Central requested predetermination from the KCC with a request to potentially reassign a portion to another Evergy utility. A request for a CCN with the MPSC is expected in the fourth quarter of 2024.
Previous report
In April 2024, Evergy Missouri West purchased a 22% ownership interest representing approximately 145 MW in Dogwood, an operational combined-cycle natural gas 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 report
In May 2024, President Biden signed into law the Prohibiting Russian Uranium Imports Act, which limits the importation of uranium from the Russian Federation. The Evergy Companies have a Russian-sourced contract beginning in 2025 to obtain nuclear fuel and have taken mitigating measures to minimize the impact of the Prohibiting Russian Uranium Imports Act to their supply chain. The Evergy Companies do not expect a material impact to their supply chain or financial results.
Previous report
Net income attributable to Evergy, Inc. increased year to date September 30, 2024, compared to the same period in 2023, primarily due to new Evergy Kansas Central retail rates effective in December 2023, the recognition of a $96.5 million regulatory liability in the third quarter of 2023 for future refund of amounts of revenues previously collected from customers related to COLI rate credits, higher transmission revenues and lower pension non-service costs; partially offset by higher taxes other than income tax, depreciation, interest, operating and maintenance expense and lower investment earnings in 2024.
Previous report
ii. the costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event;
Previous report
iii. the second quarter 2023 recognition of a regulatory liability for the refund to customers of revenues previously collected since October 2019 for costs related to an electric subdivision rebate program to be refunded to customers in accordance with a June 2020 KCC order; and
Previous report
iv. the recognition of a regulatory liability for future refund of amounts of revenues previously collected from customers related to COLI rate credits in accordance with a September 2023 KCC rate case unanimous settlement agreement.
Previous report
(b)Reflects non-regulated energy marketing incentive compensation costs related to the February 2021 winter weather event that are included in operating and maintenance expense on the consolidated statements of comprehensive income.
Previous report
(c)Reflects the second quarter 2023 recognition of a regulatory liability for the refund to customers of revenues previously collected since October 2019 for costs related to an electric subdivision rebate program to be refunded to customers in accordance with a June 2020 KCC order that are included in operating revenues on the consolidated statements of comprehensive income.
Previous report
(d)Reflects the recognition of a regulatory liability for the refund to customers for amounts of revenues previously collected related to COLI rate credits in accordance with a September 2023 KCC rate case unanimous settlement agreement reached between Evergy, the KCC staff and other intervenors that are included in operating revenues on the consolidated statements of comprehensive income.
Previous report
•a $96.5 million increase due to the third quarter 2023 recognition of a regulatory liability at Evergy Kansas Central for the refund to customers of revenues previously collected from customers related to COLI rate credits;
Previous report
•a $43.1 million net increase from new retail rates in Kansas effective in December 2023 consisting of $51.1 million from higher Evergy Kansas Central retail rates, partially offset by $8.0 million from lower Evergy Metro retail rates;
Previous report
•a $21.2 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2024;
Previous report
•a $9.5 million increase due to Evergy Missouri West's recovery of extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather event through a securitized utility tariff charge effective in February 2024; and
Previous report
•a $6.8 million increase due to lower mark-to-market losses in 2024 related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's 8% ownership share of JEC; partially offset by
Previous report
•a $10.6 million decrease related to non-regulated sales in the third quarter of 2023 related to Evergy Kansas Central's 8% ownership share of JEC, which is included in rate base in 2024 as a result of Evergy Kansas Central's 2023 rate case; and
Previous report
•a $13.5 million increase in taxes other than income tax as further described below; and
Previous report
•a $9.0 million increase in depreciation and amortization as further described below; partially offset by
Previous report
•a $4.6 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $4.8 million decrease in transmission and distribution operating and maintenance expense.
Previous report
Evergy's gross margin (GAAP) increased $138.5 million year to date September 30, 2024, compared to the same period in 2023 and Evergy's utility gross margin (non-GAAP) increased $237.5 million year to date September 30, 2024, compared to the same period in 2023, both measures were driven by:
Previous report
•a $99.9 million net increase from new retail rates in Kansas effective in December 2023 consisting of $117.9 million from higher Evergy Kansas Central retail rates, partially offset by $18.0 million from lower Evergy Metro retail rates;
Previous report
•a $96.5 million increase due to the third quarter 2023 recognition of a regulatory liability at Evergy Kansas Central for the refund to customers of revenues previously collected from customers related to COLI rate credits;
Previous report
•a $52.7 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2024;
Previous report
•a $14.7 million increase due to Evergy Missouri West's recovery of extraordinary fuel and purchased power costs incurred as part of the February 2021 winter weather event through a securitized utility tariff charge effective in February 2024;
Previous report
•an $8.3 million increase primarily due to higher retail sales driven by higher weather-normalized residential and commercial demand, partially offset by unfavorable weather (cooling degree days decreased by 6% and heating degree days decreased by 4%); and
Previous report
•a $2.2 million increase due to lower mark-to-market losses in 2024 related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's 8% ownership share of JEC; partially offset by
Previous report
•a $25.7 million decrease related to non-regulated sales in 2023 related to Evergy Kansas Central's 8% ownership share of JEC, which is included in rate base in 2024 as a result of Evergy Kansas Central's 2023 rate case; and
Previous report
•an $11.1 million decrease as a result of recording a reduction in the second quarter of 2023 to Evergy Metro's Earnings Review and Sharing Plan (ERSP) refund obligation to customers.
Previous report
•a $37.4 million increase in taxes other than income tax as further described below;
Previous report
•a $32.4 million increase in depreciation and amortization as further described below; and
Previous report
•a $29.2 million increase in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $16.5 million increase in transmission and distribution operating and maintenance expense and a $12.7 million increase in operating and maintenance expense at generating facilities as further described below.
Previous report
Operating and Maintenance
Previous report
Evergy's operating and maintenance expense increased $23.7 million year to date September 30, 2024, compared to the same period in 2023, primarily driven by:
Previous report
•a $16.5 million increase in transmission and distribution operating and maintenance expenses driven by a $9.5 million increase in labor expense primarily due to a decrease in labor capitalization in 2024 driven by lower capitalization activity related to the installation of transformers and meters in 2024 and higher employee headcount and a $7.0 million increase in non-labor expense including a $2.8 million increase in vegetation management costs; and
Previous report
•a $12.7 million increase in operating and maintenance expense at generating facilities primarily due to a $16.0 million increase at Evergy Kansas Central driven by a major maintenance outage at JEC in 2024; partially offset by a $5.0 million decrease at Evergy Metro driven by a major maintenance outage at Hawthorn Station in 2023.
Previous report
Evergy's depreciation and amortization increased $9.0 million for the three months ended September 30, 2024, compared to the same period in 2023, driven by:
Showing the first 40 of 147 passages. Open the source sections for the rest.
Reworded paragraphs (31)
Previous wording
Evergy Missouri West 2024 Rate Case Proceeding
Current wording
Evergy Kansas Central's 2025 Rate Case Proceeding
Previous wording
In February 2024, Evergy Missouri West filed an application with the MPSC to request an increase to its retail revenues of approximately $104 million. Evergy Missouri West's request reflected a return on equity of 10.5% (with a capital structure composed of 52% equity) and increases related to the recovery of infrastructure investments made to improve reliability and enhance customer service and the inclusion of certain costs related to Dogwood and Crossroads, two natural gas plants.
Current wording
In January 2025, Evergy Kansas Central filed an application with the KCC to request an increase to its retail revenues of approximately $196 million. Evergy Kansas Central's request reflected a return on equity of 10.5% (with a capital structure composed of 52% equity) and increases related to the recovery of infrastructure investments made to improve reliability and enhance customer service and the update of expenses to current levels of spend. An evidentiary hearing in the case is scheduled to occur in July 2025 and new rates are expected to be effective in September 2025.
Previous wording
In October 2024, Evergy announced its plan to construct two combined-cycle natural gas plants located in Kansas. Evergy Kansas Central and Evergy Missouri West will jointly-own the first site and expect it to have an initial generating capacity of approximately 705 MW. The plant is expected to begin operations by summer of 2029. In November 2024, Evergy Kansas Central requested predetermination from the KCC. In the fourth quarter of 2024, Evergy Missouri West plans to request a CCN from the MPSC.
Current wording
In October 2024, Evergy announced its plan to construct two combined-cycle natural gas plants located in Kansas. Evergy Kansas Central and Evergy Missouri West will jointly-own each plant and expect each plant to have an initial generating capacity of approximately 705 MW. The first plant is expected to begin operations by summer of 2029 and the second plant is expected to begin operations by summer of 2030.
Previous wording
Evergy Kansas Central intends to construct and own an approximately 159 MW solar generation facility to be located in Kansas and called Kansas Sky. The solar generation facility is expected to begin operations by summer of 2027. The construction of Kansas Sky is subject to the granting by the KCC of predetermination with reasonably acceptable terms and other closing conditions. In November 2024, Evergy Kansas Central requested predetermination from the KCC.
Current wording
Evergy Kansas Central intends to construct and own an approximately 159 MW solar generation facility to be located in Kansas and called Kansas Sky. The solar generation facility is expected to begin operations by summer of 2027. The construction of Kansas Sky is subject to the granting by the KCC of predetermination with reasonably acceptable terms and other closing conditions. In April 2025, Evergy Kansas Central and intervenors in the case reached a unanimous partial settlement agreement regarding the Kansas Sky solar investment. See "Applications for Predetermination" in Note 4 to the consolidated financial statements for additional information regarding Evergy Kansas Central's application for predetermination for its investment in this renewable generating plant.
Previous wording
In the third quarter of 2024, Evergy Missouri West entered into agreements to own two solar generation facilities currently under development. The first facility, to be called Sunflower Sky, is a solar generation facility to be located in Kansas with an expected generating capacity of approximately 65 MW. The second facility, to be called Foxtrot, is a solar generation facility to be located in Missouri with an expected generating capacity of approximately 100 MW. The solar generation facilities are expected to begin operations by summer of 2027. The agreements are subject to regulatory approvals and closing conditions, including the granting by the MPSC of a CCN with reasonably acceptable terms. In October 2024, Evergy Missouri West filed an application for a CCN. Evergy Missouri West requested a response from the MPSC by May 2025.
Current wording
In 2024, Evergy Missouri West entered into agreements to own two solar generation facilities currently under development. The first facility, to be called Sunflower Sky, is a solar generation facility to be located in Kansas with an expected generating capacity of approximately 65 MW. The second facility, to be called Foxtrot, is a solar generation facility to be located in Missouri with an expected generating capacity of approximately 100 MW. The solar generation facilities are expected to begin operations by summer of 2027. The agreements are subject to regulatory approvals and closing conditions, including the granting by the MPSC of a CCN with reasonably acceptable terms. See "Requests for Certificate of Convenience and Necessity" in Note 4 to the consolidated financial statements for information regarding Evergy Missouri West's application for a CCN for its investment in this renewable generating plant.
Previous wording
Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended and year to date September 30, 2024 were $465.6 million or $2.02 per share and $797.3 million or $3.46 per share, respectively. For the three months ended and year to date September 30, 2023, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $432.3 million or $1.88 per share and $754.5 million or $3.27 per share, respectively.
Current wording
Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended March 31, 2025 were $125.0 million or $0.54 per share. For the three months ended March 31, 2024, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $124.7 million or $0.54 per share.
Previous wording
In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without:
Current wording
In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the mark-to-market impacts of economic hedges related to Evergy Kansas Central's 8% ownership share of JEC.
Previous 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.
Current 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.
Previous wording
(e)Reflects an income tax effect calculated at a statutory rate of approximately 22%.
Current wording
(b)Reflects an income tax effect calculated at a statutory rate of approximately 22%.
Previous 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).
Current wording
The following table summarizes 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) increased $144.6 million for the three months ended September 30, 2024, compared to the same period in 2023 and Evergy's utility gross margin (non-GAAP) increased $162.5 million for the three months ended September 30, 2024, compared to the same period in 2023, both measures were driven by:
Current wording
Evergy's gross margin (GAAP) increased $38.7 million for the three months ended March 31, 2025, compared to the same period in 2024 and Evergy's utility gross margin (non-GAAP) increased $40.9 million for the three months ended March 31, 2025, compared to the same period in 2024, both measures were driven by:
Previous wording
•an $11.3 million decrease related to Evergy Kansas Central's TDC rider in 2024.
Current wording
•a $4.9 million decrease related to Evergy Kansas Central's TDC rider.
Previous wording
Net income attributable to Evergy, Inc. increased for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to the recognition of a $96.5 million regulatory liability in the third quarter of 2023 for future refund of amounts of revenues previously collected from customers related to COLI rate credits, new Evergy Kansas Central retail rates effective in December 2023, higher transmission revenues and lower mark-to-market losses related to forward contracts for natural gas and electricity in the third quarter of 2023; partially offset by higher taxes other than income tax, income tax and depreciation expense and recording lower Evergy Kansas Central corporate-owned life insurance (COLI) benefits in the third quarter of 2024.
Current wording
•a $5.2 million decrease due to recording lower Evergy Kansas Central corporate-owned life insurance (COLI) benefits in 2025; and
Previous wording
Evergy relies primarily upon cash from operations, short-term borrowings, long-term debt and equity issuances and its existing cash and cash equivalents to fund its capital requirements. Evergy's capital requirements primarily consist of capital expenditures, payment of contractual obligations and other commitments, and the payment of dividends to shareholders. See the Evergy Companies' combined 2023 Form 10-K for more information on Evergy's sources and uses of cash.
Current wording
Evergy relies primarily upon cash from operations, short-term borrowings, long-term debt and equity and equity-like issuances and its existing cash and cash equivalents to fund its capital requirements. Evergy's capital requirements primarily consist of capital expenditures, payment of contractual obligations and other commitments, and the payment of dividends to shareholders. In addition, tax legislation and regulation could result in significant impacts to cash flow. Evergy expects cash flows to be sufficient to meet existing short-term capital requirements. See the Evergy Companies' combined 2024 Form 10-K for more information on Evergy's sources and uses of cash.
Previous wording
As of September 30, 2024, Evergy had $1,074.5 million of available borrowing capacity under its master credit facility. The available borrowing capacity under the master credit facility consisted of $216.1 million for Evergy, Inc., $257.3 million for Evergy Kansas Central, $377.1 million for Evergy Metro and $224.0 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility also supports their issuance of commercial paper. See Note 8 to the consolidated financial statements for more information regarding the master credit facility.
Current wording
As of March 31, 2025, Evergy had $1,502.7 million of available borrowing capacity under its master credit facility. The available borrowing capacity under the master credit facility consisted of $112.0 million for Evergy, Inc., $755.5 million for Evergy Kansas Central, $346.2 million for Evergy Metro and $289.0 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.
Previous wording
Along with cash flows from operations and receivable sales facilities, Evergy generally uses borrowings under its master credit facility and the issuance of commercial paper to meet its day-to-day cash flow requirements. Evergy may also utilize these short-term borrowings to repay maturing long-term debt until the long-term debt is able to be refinanced. Evergy believes that its existing cash on hand and available borrowing capacity under its master credit facility provide sufficient liquidity for its existing capital requirements.
Current wording
Along with cash flows from operations and receivable sales facilities, Evergy generally uses borrowings under its master credit facility and the issuance of commercial paper to meet its day-to-day cash flow requirements. Evergy may also utilize these short-term borrowings to repay maturing long-term debt until the long-term debt is able to be refinanced.
Previous wording
In May 2024, Moody's Investors Service changed Evergy Missouri West's outlook from Stable to Negative, and affirmed credit ratings as detailed in the following table.
Current wording
In April 2025, Moody's Investor Service changed Evergy Missouri West's outlook from Negative to Stable and lowered credit ratings as detailed in the following table.
Previous wording
Year to date September 30, 2024, Evergy made no cash pension contributions. Evergy expects to make cash pension contributions of$36.8 million in 2024. Year to date September 30, 2024, Evergy made post-retirement benefit contributions of $0.8 million. Evergy expects to make no additional post-retirement benefit contributions in 2024. See Note 7 to the consolidated financial statements for additional information on Evergy's pension and post-retirement plans.
Current wording
See Note 5 to the consolidated financial statements for information regarding Evergy's pension and post-retirement plan contributions.
Previous wording
Evergy's cash flows from operating activities increased $36.4 million year to date September 30, 2024, compared to the same period in 2023, primarily driven by an increase in cash receipts for retail electric sales in 2024 primarily due to higher retail rates at Evergy Kansas Central, partially offset by the lower collection of receivables in January in 2024 compared to the same period in 2023.
Current wording
Evergy's cash flows from operating activities increased $132.3 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily driven by an increase in cash receipts for retail electric sales in 2025 including higher retail rates at Evergy Missouri West and an increase in fuel recovery mechanism net collections, primarily at Evergy Kansas Central.
Previous wording
Evergy's cash flows used in investing activities decreased $1.6 million year to date September 30, 2024, compared to the same period in 2023, primarily driven by:
Current wording
Evergy's cash flows used in investing activities increased $15.7 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily driven by:
Previous wording
•a $64.2 million decrease in proceeds from COLI investments, primarily from Evergy Kansas Central due to a higher number of policy settlements in 2023.
Current wording
•a $40.8 million decrease in proceeds from COLI investments, primarily from Evergy Kansas Central due to a lower number of policy settlements in 2025; partially offset by
Previous wording
•a $65.8 million decrease in additions to property, plant and equipment, and other investing items primarily due to the acquisition of Persimmon Creek for $217.9 million, net of cash acquired, in 2023; partially offset by $92.1 million of increased spending in 2024 for a variety of capital projects including transmission projects related to grid resiliency and other investing activities and Evergy Missouri West's purchase of a joint ownership interest in Dogwood for approximately $60 million in April 2024; partially offset by
Current wording
•a $25.8 million decrease in additions to property, plant and equipment, primarily due to higher spending in 2024 for a variety of capital projects including transmission and distribution projects related to grid resiliency and other infrastructure improvements.
Previous wording
Evergy's cash flows from financing activities decreased $24.8 million year to date September 30, 2024, compared to the same period in 2023, primarily driven by:
Current wording
Evergy's cash flows from financing activities decreased $132.0 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily driven by:
Previous wording
•a $126.3 million increase in short-term debt borrowings primarily driven by Evergy's repayment of $800.0 million of 2.45% Senior Notes in September 2024 primarily with commercial paper borrowings; partially offset by the repayment of commercial paper borrowings in 2024 with proceeds from long-term debt issuances;
Current wording
•a $403.7 million decrease in short-term borrowings primarily due to the repayment of commercial paper borrowings with proceeds from long-term debt issuances; partially offset by
Previous wording
•a $229.3 million increase in proceeds from long-term debt, net due to the issuance of $919.6 million of long-term debt year to date September 30, 2024, compared to the issuance of $690.3 million of long-term debt in the same period in 2023;
Current wording
•a $268.1 million increase in proceeds from long-term debt, net, due to the issuance of $594.2 million of long-term debt for the three months ended March 31, 2025, compared to the issuance of $326.1 million of long-term debt in the same period in 2024.
Previous wording
Evergy Kansas Central's gross margin (GAAP) increased $151.0 million year to date September 30, 2024, compared to the same period in 2023, and Evergy Kansas Central's utility gross margin (non-GAAP) increased $230.9 million year to date September 30, 2024, compared to the same period in 2023, both measures were driven by:
Current wording
Evergy Kansas Central's gross margin (GAAP) increased $12.7 million for the three months ended March 31, 2025, compared to the same period in 2024, and Evergy Kansas Central's utility gross margin (non-GAAP) increased $4.3 million for the three months ended March 31, 2025, compared to the same period in 2024, both measures were driven by:
Previous wording
•a $14.3 million decrease primarily due to higher wind and other income tax credits in 2024 driven by the acquisition of Persimmon Creek in the second quarter of 2023; and
Current wording
•a $14.3 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2025; partially offset by
Previous wording
•a $4.0 million decrease primarily due to lower retail sales driven by unfavorable weather (cooling degree days decreased by 12%), partially offset by higher weather-normalized residential, commercial and industrial demand.
Current wording
•a $5.8 million decrease primarily due to lower retail sales driven by lower weather-normalized residential and industrial demand and retail pricing, partially offset by favorable weather (heating degree days increased 21%); and
Previous wording
Evergy Kansas Central's depreciation and amortization expense increased $36.3 million year to date September 30, 2024, compared to the same period in 2023, driven by:
Current wording
Evergy Kansas Central's depreciation and amortization expense increased $3.0 million for the three months ended March 31, 2025 compared to the same period in 2024, primarily due to capital additions.
Previous wording
Evergy Kansas Central's other income, net increased $12.7 million year to date September 30, 2024, compared to the same period in 2023, primarily driven by:
Current wording
Evergy Kansas Central's other income, net decreased $4.8 million for the three months ended March 31, 2024 compared to the same period in 2025, primarily driven by a $5.2 million decrease due to recording lower Evergy Kansas Central COLI benefits in 2025.
Previous wording
Evergy Metro's gross margin (GAAP) decreased $16.7 million year to date September 30, 2024, compared to the same period in 2023, and Evergy Metro's utility gross margin (non-GAAP) decreased $10.1 million year to date September 30, 2024, compared to the same period in 2023, both measures were driven by:
Current wording
Evergy Metro's gross margin (GAAP) increased $3.9 million for the three months ended March 31, 2025, compared to the same period in 2024, and Evergy Metro's utility gross margin (non-GAAP) increased $5.6 million for the three months ended March 31, 2025, compared to the same period in 2024, both measures were driven by:
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
•a $4.2 million decrease related to Evergy Kansas Central's TDC rider.
Current report — wording carried from elsewhere
Additionally, the increase in Evergy Metro's gross margin (GAAP) was also impacted by:
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Diluted EPS increased year to date September 30, 2024, compared to the same period in 2023, primarily due to the increase in net income attributable to Evergy, Inc. discussed above.
Previous report — wording carried elsewhere
i. the mark-to-market impacts of economic hedges related to Evergy Kansas Central's 8% ownership share of JEC;
Previous report — wording carried elsewhere
Additionally, the increase in Evergy's gross margin (GAAP) was also impacted by: